#Sweden #Cybersecurity #Sectra #Medical Imaging #Linköping

Introduction

In recent developments from the international medical imaging IT and cybersecurity company, Sectra (STO: SECT B), remarkable strides have been made in medical imaging and secure communications. The company's 2025/2026 year-end report outlines how their long-term investments are not only enhancing healthcare diagnostics but also reinforcing cyber defense across society.

Financial Performance Overview

The fiscal year turned out to be monumental for Sectra, with sales achieving historical highs alongside substantial profits. The financial performance for the year reveals:

• - Net sales rose 9.3%, reaching SEK 3,541.7 million compared to SEK 3,239.8 million in the previous year. On an unadjusted exchange rate basis, this translates to a remarkable 16.5% increase.
• - Recurring revenue contributed significantly, accounting for SEK 2,451.3 million of total net sales, marking an 18.6% rise year-over-year.
• - Among the highlights was a 49.2% surge in Cloud Recurring Revenue (CRR), which reached SEK 915.8 million.
• - The company's operating profit increased by 15.9% to SEK 710.6 million, reflecting a robust operating margin of 20.1%.

This financial success has provided Sectra the confidence to propose an increased ordinary dividend alongside an extraordinary dividend at this year's Annual General Meeting (AGM), reflecting a commitment to returning value to shareholders.

Looking at Quarter Performance

In the fourth quarter (February-April 2026), Sectra also reported:

• - A 13% increase in net sales, totaling SEK 1,033.2 million compared to SEK 914.1 million from the corresponding quarter of the previous year.
• - Operating profit reached SEK 209.1 million, reflecting a 5.1% increase despite currency fluctuations and product delivery delays in secure communications.
• - Notably, cash flow from operations saw a significant leap to SEK 519.7 million, indicating a solid financial base bolstered by advances from customers.

Strategic Insights

Torbjörn Kronander, President and CEO of Sectra, shared compelling insights into the company's strategy during the report's presentation. He emphasized the importance of adapting to new trends such as digitization and Artificial Intelligence while navigating a landscape riddled with technical and business risks.

"The ongoing transformation in our business model from merely selling software to delivering services has been transformational," Kronander stated. This shift has resulted in a notable increase in the total share of recurring revenue, now nearly 70%, smoothing out production performance across quarters.

The report further underscores Sectra's commitment to innovation and responding to the evolving landscape of medical IT, particularly through the integration of AI technologies. Kronander addressed the uncertainties surrounding AI's future effects, affirming Sectra's proactive approach to harness opportunities.

Conclusion

As Sectra celebrates this year's accomplishments, its focus remains on advancing healthcare and security solutions. The increase in sales, coupled with an upward trajectory in profits and an ambitious investment strategy, positions Sectra at the forefront of medical IT innovation. With a commitment to ongoing improvement and customer satisfaction, Sectra aims to continually enhance its solutions for healthcare providers worldwide, ensuring a healthier and safer future.

Upcoming Presentation

For those interested in further insights from the financial report, Sectra's management will present the year-end results and field questions on June 5, 2026, at 10:00 a.m. (CEST). Interested parties can follow the live stream or catch a recording at Sectra’s investor relations portal.

Closing Thoughts

The impressive financial outcomes and strategic investments lay a strong foundation for Sectra's future growth. Adapting to the changing healthcare landscape while focusing on innovation and security is paramount, and Sectra's leadership is committed to meeting these challenges head-on.