#Sweden #Cybersecurity #Sectra #Linköping #Medical IT

Sectra Reports Significant Growth for 2024/2025

In the latest year-end earnings report released on June 5, 2025, Sectra AB, a premier company in the fields of medical imaging IT and cybersecurity, announced remarkable advancements that reflect its continued commitment to customer satisfaction and groundbreaking innovations amidst a changing landscape. The company's performance not only reinforces its market position but also underscores its pivotal role as a long-term partner in healthcare and societal security.

Overall, the fiscal year 2024/2025 revealed substantial growth metrics, with contracted order bookings surging by an impressive 39.9%, reaching a total of SEK 8,706.1 million from SEK 6,223.5 million the previous year. Due to the sequential increase realized in guaranteed order bookings, which reached SEK 7,653.0 million, Sectra is well-positioned for sustained growth going forward.

Net sales estimates also displayed progress, climbing 9.3% to total SEK 3,239.8 million, compared to SEK 2,963.6 million in the previous period. A noteworthy part of this revenue came from recurring sales, which soared to SEK 2,067.4 million—an increase of 19.9%. The cloud recurring revenue (CRR) specifically peaked at SEK 591.1 million, reflecting a 48.9% growth—a signal of increasing relevance in the realm of cloud-based medical IT services.

Operating profit saw an increment to SEK 723.0 million, boosted by a favorable patent settlement. When isolating the outcome strictly based on operational metrics, the profit surged by 18.4% to SEK 613.0 million, translating to an operating margin of 18.9%. Despite fluctuating currency values, the adjusted profit growth maintained momentum at 20.3%.

Net profit closed the year at SEK 563.4 million, a robust increase from SEK 428.4 million in the previous year. Conclusively, cash flow from operations notably improved, reaching SEK 922.4 million compared to SEK 326.3 million last year, showcasing the company’s solid financial health.

Looking towards stakeholder returns, Sectra’s board proposes maintaining its ordinary dividend at SEK 1.10 per share while introducing an additional extraordinary dividend of SEK 1.00 per share, reflecting the company's strong cash flow and overall financial position.

Fourth Quarter Breakthroughs

The fourth quarter (February-April 2025) was particularly remarkable, with contracted order bookings skyrocketing to SEK 2,900.3 million, marking 223.4% growth compared to the same quarter last year. Guaranteed order bookings constituted SEK 2,382.1 million, with expectations that a segment of these will generate revenue within the next year.

Total net sales during this quarter saw a modest 1.8% increase, amounting to SEK 914.1 million. Here too, recurring revenues contributed significantly, totaling SEK 574.6 million, while cloud recurring revenues enjoyed a notable 61.8% increase to SEK 184.1 million.

Operating profit remained steady at SEK 198.9 million, contrasted with SEK 197.4 million from the prior year, despite minor pressures from decreased license sales expected in the upcoming period. This quarter’s profit for the period totaled SEK 131.2 million, reflecting a slight decrease compared to SEK 158.5 million in Q4 last year, yet solid overall profitability indicated operational robustness.

Moving Forward: Challenges and Opportunities

Torbjörn Kronander, President and CEO of Sectra, emphasized the importance of value creation for both healthcare and society as central to the company's strategy, stating, "Our long-term efforts...are continuing to deliver good results in 2024/2025." He acknowledged the challenges posed by transitioning to a new service sales model for medical diagnostic imaging, but remained optimistic about the long-term benefits for customers and the company alike.

The transition is expected to take years but will lead to enhanced accuracy in diagnostics—ultimately improving patient care standards. It's worth noting that despite challenges, customer satisfaction remains exceptionally high, supported by accolades like record wins in the Best in KLAS awards, highlighting Sectra’s commitment to quality and service.

In conclusion, Sectra’s significant year-end report underscores an evolving but resilient company, adeptly navigating the complexities of the healthcare landscape while fostering innovation and growth. As Sectra progresses with its vision towards further integration of cloud solutions and secure communication tools, its growth trajectory remains impressive, amplifying its commitment to improving health outcomes globally.