Surgical Science (SUS) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales were SEK 235.5–236 million, down 6% reported but up 4% in local currencies due to significant FX headwinds, especially from the USD.

• Adjusted EBIT was SEK 28.3 million (12% margin), with FX-adjusted EBIT margin at 16%, and gross margin at 66%.

• Cash flow from operations was strong at SEK 65–65.3 million, a significant improvement year-over-year.

• Cash and equivalents at quarter end were SEK 667.7–668 million, with no debt financing.

• The business is executing on its growth strategy, with momentum in EMEA and UK, and new product launches in ultrasound and endovascular simulation.

Financial highlights

• Net sales SEK 235.5–236 million, down 6% reported, up 4% in local currencies compared to Q1 2025.

• Adjusted EBIT SEK 28–28.3 million (12% margin); FX-adjusted EBIT SEK 42 million (16% margin).

• Net profit: SEK 18.6–19 million; tax expense: SEK 3 million.

• Gross margin: 66% (down from 69% last year), mainly due to FX and lower license revenue share.

• License revenue SEK 67.6–68 million, 29% of sales, down 19% vs Q1 2025.

Outlook and guidance

• 2027 remains the target year for achieving financial goals; 2026 expected to see profitability and some growth, but not at target levels.

• SEK 60–90 million negative impact on license revenues for 2026 vs. 2025 due to reverting to the old Intuitive contract.

• Price increases implemented in April will gradually impact margins as sales cycles close.

• New production facility in Tel Aviv expected to go live in Q2, aiming to reduce costs and improve resilience.

• Focus remains on strategy execution, especially operational and production structure.