Surgical Science (SUS) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales were SEK 209.2 million, down 2% year-over-year, but up 4% in local currencies, with SEK 24–25 million in negative currency effects and a SEK 30 million backlog increase due to delayed orders.

• Macroeconomic and political headwinds, especially in the U.S. and China, led to delayed orders and increased backlog, with Europe up 22% and Asia down 40%.

• Integration of Intelligent Ultrasound is progressing, contributing SEK 22.1 million in Q2 sales, with cost synergies realized but revenue synergies lagging.

• Strategic initiatives launched include the Partner Path distributor program and RobotiX Express, with positive initial customer response.

• Industry/OEM sales declined 3% in Q2, but market demand from existing and new customers remains favorable.

Financial highlights

• Q2 gross margin declined to 65% from 68% in Q2 2024, mainly due to lower simulator and license sales and inclusion of Intelligent Ultrasound.

• Q2 operating result was SEK -22.4 million, with adjusted EBIT margin at -8% (vs. 15% last year); net result was SEK -20.1 million.

• License revenues fell 12% to SEK 58.9 million, simulator sales dropped 8%, and development revenues surged 172% due to a major defense project.

• Cash and cash equivalents at June 30, 2025, were SEK 610.2 million; cash flow from operating activities was SEK 16.2 million.

• H1 2025 net sales rose 15% to SEK 459.8 million, with a gross margin of 67%.

Outlook and guidance

• Management remains confident in achieving revised 2026 targets: sales of SEK 1,400 million and adjusted EBIT margin of 25–30%, focusing on organic growth and not relying on any single customer.

• Backlog increase expected to positively impact Q3 sales; gradual gross margin improvements anticipated from ongoing initiatives.

• U.S. market outlook remains uncertain due to procurement delays and higher tariffs, which are being passed on to customers.

• License revenue expected to remain lumpy due to batch sales and timing of customer regulatory approvals.

• Strongest future growth expected in Industry/OEM, particularly in robotic surgery.