#Sweden #Cybersecurity #Sectra #Medical Imaging #Linköping

Sectra Reports Impressive Growth in Its 2025/2026 Interim Results

Sectra, the international leader in medical imaging IT and cybersecurity, recently unveiled robust financial results for the first six months of its fiscal year 2025/2026. The company's report showcases not only rising sales and profitability but also a significant boost in order bookings, all attributed to heightened customer satisfaction.

Overview of Financial Performance

During the second quarter, spanning August to October 2025, Sectra experienced its second-highest quarterly order bookings, totaling SEK 3.43 billion. This figure includes guaranteed order bookings amounting to SEK 2.25 billion. An estimated 4% of these guaranteed bookings have already been recognized as revenue, with projections suggesting an additional 9-19% will follow within 12 months.

Net sales witnessed a notable increase of 12.9%, reaching SEK 850.6 million, marking a 19.8% jump when adjusted for currency fluctuations. Recurring revenue, a critical component of Sectra’s financial health, soared by 21.3% to SEK 587.9 million, with cloud recurring revenue experiencing a staggering 74.9% growth, now at SEK 212.2 million.

The operating profit also saw a remarkable rise of 72.1%, culminating in SEK 188.6 million, translating to an operating margin of 22.2%. This improvement in profitability is attributed to strategic investments, growth initiatives, and a customer compensation for project delays, alongside share-based incentive costs that were positively affected by the bullish share price trend.

Year-to-Date Performance

In the broader six-month timeline, total contracted order bookings fell slightly by 2% to SEK 4.74 billion. Nevertheless, net sales made significant progress, up 9.4% at SEK 1.62 billion. An increase in recurring revenue to SEK 1.14 billion, reflecting a growth rate of 17.6%, bodes well for the company’s sustained health.

The operating profit for this six-month period rose by 46.8%, amounting to SEK 307.4 million and embodying an operational margin of 19.0%. Despite increased costs surrounding share-based incentive programs, strong underlying earnings contributed to a commendable cash flow from operations of SEK 159.6 million.

Insight from Leadership

Torbjörn Kronander, President and CEO of Sectra, shared key insights in light of these impressive results. He emphasized the importance of adaptability and speed in the rapidly evolving technology landscape, stating, “Where there is change, there is margin.” The company’s commitment to embracing new technologies while ensuring high levels of customer satisfaction has forged strong relationships, resulting in a loyal customer base and a leading market position in managing medical images in the cloud.

Despite the positive performance, Kronander did caution that significant investments in cloud services will exert pressure on short-term financial outcomes as these projects often involve considerable upfront costs. He highlighted ongoing challenges in the Secure Communications sector, where product delivery delays could impact overall performance. Kronander expressed confidence that the demand driven by global security concerns would ultimately favor Sectra’s product offerings.

Looking Ahead

In conclusion, Sectra’s interim results demonstrate a successful first half rooted in customer satisfaction and strategic growth. With the upcoming financial report presentation scheduled for December 12, 2025, stakeholders and interested parties will have the opportunity to delve deeper into these results and ask questions of the leadership team. The outlook remains cautiously optimistic as Sectra navigates the challenges of cloud service transitions while continuing to enhance its market presence through innovation and customer engagement.

This report exemplifies Sectra's commitment to excellence in the healthcare technology sector, positioning them for further achievement in the forthcoming periods.