Sectra Shows Impressive Growth with Doubled Orders in North America and Sweden for 2025/2026

Sectra's Remarkable Growth in Q1 of 2025/2026

International medical imaging IT and cybersecurity company Sectra (STO: SECT B) proudly announced its outstanding performance in the first quarter of the fiscal year 2025/2026. The company reported a staggering increase in order bookings, doubling in volume, bolstered by successful expansion efforts in the US and Canada. With solid growth now seen across all areas of operation, Sectra's financial health demonstrates resilience and a strategic shift towards recurring revenue from service-based sales.

Financial Highlights

From May to July 2025, ordered bookings rose by an extraordinary 112.9%, reaching SEK 1,309.5 million, compared to SEK 615.0 million from the previous period. The report highlighted that guaranteed order bookings made up SEK 1,192.3 million, of which 7% had already been recognized as revenue in the quarter. Furthermore, an estimated 13-23% of guaranteed bookings are projected to generate revenue in the coming year, ensuring continued growth.

Net sales also saw a respectable increase of 5.8%, totaling SEK 765.9 million, compared to SEK 723.8 million the prior year. In terms of recurring revenue, which is pivotal for Sectra’s shifting business model, they reported a notable growth of 13.9% to SEK 549.2 million.

The standout performance segment was Cloud Recurring Revenue (CRR), soaring by 46.1% to SEK 179.4 million. This growth illustrates the company's successful transition toward cloud-based services, a clear indication of the evolving demands in healthcare technology.

Operating profit reflected a similar positive trend, experiencing a boost of 19% to SEK 118.8 million, resulting in an operating margin of 15.5%. Even with ongoing investment in employee incentive programs, which accounted for SEK 36.1 million, Sectra’s profit trajectory remains robust.

Strategic Growth Factors

Torbjörn Kronander, President and CEO of Sectra AB, expressed satisfaction with the company’s performance in both the medical and cybersecurity sectors, highlighting North America as a key driver of growth. Kronander emphasized the proactive transition of Sectra’s business model focused on selling medical diagnostic imaging services to healthcare providers.

In particular, the extensive contracts won in the previous fiscal year are set to shift into implementation, providing Sectra with long-term revenue streams as clients begin to deploy their solutions. While he acknowledged the immediate financial impact might be modest during this upcoming fiscal year, the long-term benefits are expected to contribute significantly to recurring revenue growth, thus strengthening customer relations.

In the realm of Secure Communications, Sectra observes continued favorable demand, influenced partly by security developments in the geopolitical landscape. With the increased defense investments spurred by NATO's strategic initiatives, the company is positioned to benefit long-term as it offers solutions enhancing secure communication and information sharing, vital for combating cyberthreats.

Future Prospects

As Sectra forges ahead, the focus remains on maximizing the benefits its customers receive from deployment, alongside enhancing usage rates, both pivotal for driving sustained growth. The company is fully committed to ensuring the healthcare sector can manage and mitigate cyber threats, thus solidifying their role as a cybersecurity frontrunner in the medical imaging domain.

To explore more in-depth details, including insights from the financial report, interested parties may attend the presentation hosted by Torbjörn Kronander and Jessica Holmquist, CFO of Sectra AB, scheduled for September 4, 2025, at 10:00 AM (CEST). The presentation will provide a platform for further discussion and questions regarding Sectra's future trajectory.

In conclusion, Sectra’s extraordinary growth in order bookings and sales demonstrates its strategic adaptability and resolve to thrive in a constantly evolving market, ultimately enhancing service capability and making healthcare processes more efficient.