Scandinavian Medical Solutions (SMSMED) H1 25/26 earnings summary

Executive summary

• H1 2025/26 results fell short of expectations due to high geopolitical uncertainty, US trade barriers, Middle East unrest, and rising oil prices, leading to deferred investments and tighter financing access.

• Decisive corrective actions were implemented, including cost reductions, inventory management, and operational efficiency improvements.

• All commercial commitments were honored, and quality positioning was maintained despite a market-wide price war.

• Cash flow improved significantly, with free cash flow before financing at DKK -11.1 million, up from DKK -33.3 million in FY 2024/25.

• The order backlog remains high, supporting confidence in a stronger H2 and full-year outlook.

Financial highlights

• Revenue for H1 2025/26 was DKK 92.3 million, down from DKK 122.7 million year-over-year.

• Gross profit was DKK 16.2 million (gross margin 17.6%), compared to DKK 24.2 million (19.7%) in H1 2024/25.

• EBITDA was DKK -6.9 million, down from DKK 0.6 million in H1 2024/25.

• Net profit was DKK -10.0 million, compared to DKK -2.3 million in H1 2024/25.

• Free cash flow before financing improved to DKK -11.1 million from DKK -20.7 million year-over-year.

Outlook and guidance

• Full-year 2025/26 guidance maintained: revenue DKK 190-220 million, EBITDA DKK 0-5 million.

• H2 2025/26 expected revenue: DKK 99-129 million; EBITDA: DKK 6.5-11.5 million.

• High order backlog and lower capacity costs support expectations for a stronger H2.