Surgical Science (SUS) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 sales of SEK 252 million, up 11% year-over-year, with full-year sales stable at SEK 884.1 million despite a weak Q1.

• Industry/OEM segment grew 21% in Q4, with simulator sales up 124% to SEK 43 million, while Educational Products grew 2% in Q4 but declined 15% for the year.

• Gross margin for Q4 was 68% (down from 71% last year), with EBIT at SEK 39 million (16% margin) and net result at SEK 36.3 million.

• Announced and completed acquisition of Intelligent Ultrasound, positioning as a leader in ultrasound simulation and expected to double ultrasound simulation sales.

• Signed a four-year agreement with Intuitive for simulation software on all new da Vinci 5 robots, shifting to a fully subscription-based revenue model from 2025.

Financial highlights

• Q4 net sales rose 11% to SEK 251.5 million; full-year sales flat at SEK 884.1 million.

• Adjusted EBIT for Q4 was SEK 45.3 million (18% margin); full-year adjusted EBIT SEK 168.7 million (19% margin).

• Q4 net profit was SEK 36.3 million; full-year net profit SEK 131.6 million.

• Gross margin for Q4 was 68%, down from 71% due to lower license revenue share.

• Cash flow from operating activities in Q4 was SEK 56.7 million; net cash at year-end SEK 732.7 million.

Outlook and guidance

• Positive outlook for both Industry/OEM and Educational Products, with Industry/OEM expected to maintain strong momentum and Educational Products showing gradual improvement, especially in China and Europe.

• Expects efficiency gains and annual cost savings of GBP 1.5–2.0 million from the Intelligent Ultrasound acquisition.

• Financial target for 2026: SEK 1,500 million in sales and 40% adjusted EBIT margin.

• Anticipates continued strong growth in 2025, supported by new product launches and expanded partnerships.

• Expect some impact from the Intuitive agreement in 2025, with long-term positive effects as subscription revenues grow.