#Sweden #Sectra #Medical Imaging #Cloud Services #Linköping

Sectra's Interim Report 2026: Cloud Revenue Growth

In its latest three-month interim report, Sectra AB, a renowned company specializing in medical imaging IT and cybersecurity, has announced a groundbreaking achievement in its cloud services division. The company reported that recurring revenue from cloud services surpassed SEK 1 billion for the first time on a rolling 12-month basis. This milestone stems from robust order bookings over the past few years, alongside Sectra's dedicated long-term investments aimed at delivering and expanding cloud services to a growing customer base.

Financial Highlights

The quarter covering May to July 2026 showed some interesting financial dynamics:

• - Contracted Order Bookings: There was a notable 46.6% drop in contracted order bookings to SEK 699 million compared to SEK 1.31 billion from the previous year. Among this figure, guaranteed order bookings accounted for SEK 598 million, illustrating ongoing demand despite the decline.
• - Sales Performance: Sectra recorded a 25.8% increase in net sales, totalling SEK 963 million, boosted significantly by a 31.7% rise in recurring revenue reaching SEK 723 million.
• - Cloud Revenue Surge: The cloud recurring revenue specifically saw a dramatic increase of 75.3%, amounting to SEK 315 million, underscoring a strong shift toward cloud computing solutions among clients.

Profitability and Challenges

Operating profit rose impressively by 60.9% to SEK 191 million, reflecting an operating margin of 19.8%. This increase can be attributed to the company's expanding customer base and successful scaling of its services. However, the quarter also witnessed a decline in cash flow from operations, which was only SEK 3 million, a sharp fall from SEK 118 million, primarily due to increased capital in current receivables and the settlement of liabilities.

CEO Insights

Torbjörn Kronander, Sectra's President and CEO, commented on the results, stating, "The growing usage of our services positively impacted our earnings and profitability during this quarter. This reflects our strategic focus on securing strong order bookings along with the imperative investments needed to meet the evolving needs of our customers."

Kronander emphasized that while investments in technology and personnel might affect profitability in the short term, they are critical for capitalizing on the opportunities presented by a strong order book and improving market position. The CEO's strategic vision revolves around ensuring that Sectra meets customer demands through innovative service delivery and consistent investment in security and technology.

Future Outlook

With the rise in cloud services usage across various sectors, Sectra is optimistic about its growth trajectory. The demand for advanced imaging solutions continues to surge, and as more institutions integrate Sectra's technology into their operations, the recurring revenue base is expected to strengthen further.

Seminar Announcement

To further discuss the interim report and answer questions, CEO Torbjörn Kronander and CFO Jessica Holmquist will conduct a presentation on September 4, 2026, at 10 AM CEST. Interested parties can join the live session or listen to the recording afterward at Sectra's investor website.

In summary, Sectra's latest financial report reveals the company's robust performance and adaptability in a rapidly changing technology landscape. With a solid foundation in cloud recurring revenue and ongoing investments, Sectra is poised for future growth and expanded market presence.