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 contributed by the Intelligent Ultrasound acquisition and strong performance in Educational Products and Industry/OEM segments.

• License revenue reached an all-time high, growing 33% to SEK 84 million, driven by the expanding robotic surgery market.

• The acquisition of Intelligent Ultrasound was completed, making the company a global leader in ultrasound simulation; integration is progressing with expected synergies in distribution, sales, and product development.

• A strategic review was initiated to address new growth opportunities, with revised financial targets reflecting market changes, regulatory delays, and global trade uncertainties.

• Operating profit was SEK 24 million, impacted by SEK 22.6 million in acquisition costs and SEK 3.9 million in restructuring costs; net profit was SEK 33 million.

Financial highlights

• Net sales increased to SEK 251 million from SEK 188 million, a 33% rise year-over-year; 30% growth in local currencies.

• License revenues grew 33% to SEK 84 million, representing 33% of total revenues and an all-time high.

• Gross margin improved to 69% (up from 66%); adjusted EBIT margin was 23% excluding acquisition and restructuring costs.

• Net result for the quarter was SEK 33 million; cash at quarter-end was SEK 613 million.

• 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, regulatory delays, and increased investments.

• Educational products expected to achieve 10%-15% annual growth up to 2026 despite short-term market inertia.

• Positive long-term outlook for robotics and OEM segments, with continued growth anticipated as simulation becomes more strategic for customers.

• Strategic review to be completed by late 2025, with updated post-2026 targets to follow.

• Focus areas for 2025 include integration of Intelligent Ultrasound, organic growth in Educational Products, and margin improvement.