Surgical Science (SUS) Q1 2025 earnings summary

Executive summary

• Q1 2025 net sales rose 33% year-over-year to SEK 251 million, with SEK 18.3 million from the Intelligent Ultrasound (IU) acquisition, and strong performance in Educational Products and Industry/OEM segments.

• Integration of IU progressed well, with synergies in distribution, sales, and product development, though one-off acquisition and restructuring costs impacted profit.

• Strategic review initiated to update growth strategy and financial targets, reflecting expanded opportunities and market changes.

• License revenue hit an all-time high, up 33% to SEK 84 million, as the robotic surgery market expanded.

• Net profit for the quarter was SEK 33.2 million, with EPS at SEK 0.65.

Financial highlights

• Sales reached SEK 251 million, up from SEK 188 million in Q1 2024, with 30% growth in local currencies.

• Adjusted EBIT (excluding acquisition/restructuring costs) was SEK 56.6 million (23% margin), reported EBIT was SEK 24 million (10%) due to SEK 26 million in one-off costs.

• Gross margin improved to 69% from 66% in Q1 2024, despite a slight negative impact from IU consolidation.

• Cash at quarter-end was SEK 613 million, with no outstanding debt after repaying the short-term loan for the IU acquisition.

• Cash flow from operating activities was negative SEK 5 million, mainly due to acquisition and tax payments.

Outlook and guidance

• 2026 sales target revised to SEK 1.4 billion (from SEK 1.5 billion) and adjusted EBIT margin target to 25–30% (from 40%), reflecting slower robotics growth and increased investments.

• Educational products expected to achieve 10–15% annual growth through 2026, despite recent market headwinds.

• Positive long-term outlook for robotics and OEM segments, with regulatory delays pushing some license revenues forward.

• Strategic review to conclude in autumn 2025, with updated post-2026 targets to follow.

• Focus for 2025 includes IU integration, organic growth in Educational Products, and margin improvement.