Q1 2027 Sectra AB Earnings Call Transcript
Key Points
- Net sales increased 26% year-over-year, with operating profit up 61% and profit per share up 55%.
- Cloud recurring revenue grew 75% to SEK315 million, with rolling 12-month cloud recurring revenue exceeding SEK1 billion for the first time.
- Recurring revenue overall increased 32% year-over-year, and customer churn remained very low at 0.5%.
- Imaging IT sales grew 30% and operating profit surged 77%, with margin reaching 23%, driven by increased usage and new deployments.
- Strong financial position with equity/assets ratio of 52% (target 30%) and cash balance of SEK1.8 billion, supporting a proposed dividend of SEK443 million.
- Order intake decreased 47% year-over-year to SEK699 million, with no large orders signed in the quarter.
- Secure Communications sales declined 4% year-over-year due to production problems that halted the factory for part of Q1, though now resolved.
- Gross margin declined year-over-year due to higher cloud costs, increased external migration costs, and a higher share of hardware sales.
- Cash flow from operations dropped to SEK3 million from SEK118 million in the prior-year quarter, impacted by negative working capital changes.
- Currency movements had a small negative impact on sales, and the UK market saw a temporary sales decline.
Good morning, everyone, and welcome to Sectra's Financial Report presentation with CEO Torbjorn Kronander; and CFO, Jessica Hollenkvist. My name is Helena Pettersson, Investor Relations, and I will be the moderator of the Q&A session after management presentation. (Operator Instructions)
And with that, started.
All right, thank you very much. So welcome to our three months, quarter one presentation for this fiscal year. We will begin with interim highlights by me and then Jessica will take over and take the financial development.
I will briefly mention sector way forward. And then we have a Q&A session, which is a little bit different this time as everyone can ask things online.
But we'll come back to that when we come to that session. Our business operation for those who are new to us, most of you are probably not, but just in case. Our biggest business is imaging IT, which
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