INVISIO (IVSO) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and full-year 2024 revenue, with Q4 revenue at SEK 594.1 million (up 72% year-over-year) and full-year revenue at SEK 1,807 million (up 46%), supported by strong order intake and a robust order book of SEK 831 million entering 2025.

• Operating margin for Q4 reached 32.8%, and full-year EBIT margin was 22.3%, both exceeding previous years.

• Acquisition of UltraLynx™ product line expands advanced soldier system integration and is expected to drive significant revenue from 2026 onward.

• Collaboration with US Defense Innovation Unit resulted in the INVISIO Link product and an initial USD 3.5 million order.

• Updated addressable market estimate to SEK 25 billion ($25 billion) annually, up nearly 80%, driven by modernization, digitalization, and geopolitical factors.

Financial highlights

• Q4 2024 revenue: SEK 594 million (up 72% from SEK 346 million in Q4 2023); full-year revenue: SEK 1,807 million.

• Q4 gross profit: SEK 359 million (margin 60.4% vs. 57.4%); full-year gross margin: 55.7% (60.3% in 2023), or 60.9% excluding third-party radio deliveries.

• Q4 operating profit: SEK 195 million (margin 32.8%); full-year EBIT: SEK 402 million (margin 22.3%).

• Q4 EPS: SEK 3.46 (vs. 1.12); full-year EPS: SEK 6.72 (vs. 3.91).

• Proposed dividend of SEK 2.30 per share, up from SEK 1.30 last year, representing 42% of profit after tax.

Outlook and guidance

• Strong order book and high market activity support expectations for robust deliveries and continued growth in 2025.

• UltraLynx™ acquisition anticipated to significantly contribute to revenues from 2026 onward.

• Expects increased R&D spending and higher depreciation as major projects reach completion and commercialization.

• Market remains volatile due to defense budget deployment timing and procurement cycles, but historical growth has averaged 28% over five years.