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

Executive summary

• Revenue for H1 25/26 reached DKK 92.3 million, reflecting resilience despite challenging market conditions and high geopolitical uncertainty, US trade barriers, and Middle East unrest leading to deferred investments and tighter financing access.

• Strategic focus on cash flow improvement, inventory reduction, and operational efficiency, with decisive corrective actions including cost reductions and CapEx optimizations.

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

• Cash flow improved significantly, with operating cash flow at DKK 110 million and 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, with new board perspectives and proactive long-term strategy focus.

Financial highlights

• Revenue for H1 25/26 was DKK 92.3 million, down from DKK 122.7 million year-over-year, index 75 compared to H1 24/25.

• Gross profit was DKK 16.2 million (gross margin 17.6%), compared to DKK 24.2 million (19.7%) in H1 2024/25; some reports show gross margin at 12.1% due to deliberate pricing.

• 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.

• Inventory reduced to DKK 18 million, and operating cash flow improved to DKK 110 million.

Outlook and guidance

• Full-year 2025/26 guidance maintained: revenue DKK 190–220 million, EBITDA DKK 0–5 million, revised down from previous DKK 220–250 million and EBITDA DKK 11–15 million.

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

• Focus areas for H2 include lean cost structure, further inventory reduction, improved free capital, aggressive sales, detailed inventory evaluation, and maintaining product quality.

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