Sensys Gatso Group AB (OSTO:SGG)

Q2 2025 Sensys Gatso Group AB Earnings Call Transcript

Aug 21, 2025 / 08:00AM GMT

Release Date Price: kr47.75 (+3.80%)

Transcript

Key Points

Positve

Sensys Gatso Group AB (LTS:0H0U) reported a 22% increase in Q2 2025 revenue, reaching SEK204 million, driven by strong performance in Swedish and Dutch projects and Saudi maintenance contracts.
The company achieved a significant improvement in EBITDA, which rose by 29% to SEK31.4 million, representing a 15.4% margin, up from 7.3% in Q1.
The US business is recovering well from previous legislative changes in Iowa, with incremental revenue from new contracts and program expansions.
The company maintains a strong gross profit margin of 43%, positively impacted by Saudi revenue.
Sensys Gatso Group AB (LTS:0H0U) reaffirmed its 2025 financial guidance, expecting to meet the mid-range of its EBITDA guidance of 12 to 14%.

Negative

Despite strong demand, the US segment experienced a lower order intake compared to Q2 2024 due to renewal timing and expected sales cycles.
Revenue from the US operations slightly decreased from SEK48 million to SEK46 million, impacted by currency fluctuations and legislative changes in Iowa.
The company's interest-bearing debt increased to SEK291 million, influenced by lease liabilities, translation effects, and increased credit facility usage.
The cash conversion from inventory and work in progress is expected to be longer-term, with high working capital remaining due to ongoing large projects.
The company is trending towards the lower end of its revenue guidance of SEK700 million to SEK800 million for 2025, indicating potential challenges in meeting higher revenue targets.

Operator

Welcome to the Sensys Gatso Group Q2 2025 report presentation.

(Operator Instructions)

Now I will hand the conference over to Speaker CEO Lewis Miller and CFO Simon Mulder. Please go ahead.

Lewis Miller

Sensys Gatso Group - Chief Executive Officer

Good morning and welcome to the presentation of Sensys Gatso Group's Q2 2025 interim report.

My name is Lewis Miller, Group Chief Executive Officer. I started with the company on June 16 of this year, bringing 20 plus years of industry experience in various senior leadership positions in global markets.

Joining me this morning is Simon Mulder, the Group's Chief Financial Officer.

I'll be speaking briefly on joining the company and then provide an overview of our strong quarterly results. I'll then turn the discussion over to Simon to review the group's financial results in greater detail before addressing our financial outlook for the remainder of the year and opening things up for questions.

First and foremost, I'm thrilled with the opportunity to join the

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