SECTRA (SECT) Q1 26/27 earnings summary

Executive summary

• Net sales rose 26% year-over-year to SEK 963 million, with profit per share up 55% and operating profit up 61%.

• Recurring revenue increased 32%, with cloud recurring revenue up 75% to SEK 315 million and exceeding SEK 1 billion on a rolling 12-month basis.

• The company is transitioning to a SaaS model, investing in cloud services and AI integration to support a growing customer base.

• Imaging IT is the dominant segment, driving most growth, with major contracts in the U.S., Canada, U.K., and Scotland now in rollout mode.

• Profit for the period reached SEK 158 million, up 53.8% year-over-year.

Financial highlights

• Net sales reached SEK 963 million, up 26% year-over-year.

• Operating profit increased 61% to SEK 191 million, with an operating margin of 19.8%.

• Cash flow from operations was SEK 3 million, down from SEK 118 million last year, due to working capital timing and increased receivables.

• Proposed dividend of SEK 443 million, with an additional proposal of SEK 1.30 per share plus SEK 1.00 extraordinary dividend.

• Cash and cash equivalents stood at SEK 1.8 billion.

Outlook and guidance

• Demand remains high across all operating areas, especially for cloud-based and AI-integrated solutions.

• Transition to SaaS and cloud is expected to continue driving recurring revenue growth and stabilize earnings.

• AI adoption is accelerating, impacting both internal efficiency and product offerings.

• Large-scale contract rollouts in North America and Europe will continue over the next 1-2 years.

• Continued investments in personnel, technology, and security are expected to support long-term growth, though may impact short-term profitability.