Sectra's year-end report 2025/2026: Long-term investments drive growth and profit

LINKÖPING, Sweden, June 5, 2026 /PRNewswire/ -- International medical imaging IT and cybersecurity company Sectra (STO: SECT B) is continuing to take important steps in medical imaging IT and secure communications. The value of the company's long-term investments in improved healthcare diagnostics and in society's cyber defense is reflected in its financial performance, with historically high sales and net profit for the year. Given the year's cash flow and Sectra's financial position, it is proposed that the Annual General Meeting (AGM) resolve on an increased ordinary dividend plus an extraordinary dividend, and that the Board be authorized to repurchase own shares for a new long-term incentive program.

Fourth quarter: February–April 2026

• Contracted order bookings decreased 46.5% to SEK 1,551.6 million (2,900.3), of which SEK 1,322.9 million (2,382.1) pertained to guaranteed order bookings. Of the guaranteed order bookings, 13% were recognized during the quarter and a further 16–26% will pertain to revenue within 12 months after the end of the quarter.
• Net sales increased 13.0% to SEK 1,033.2 million (914.1). Based on unadjusted exchange rates compared with the year-earlier quarter, the increase would have been 17.8%. Recurring revenue accounted for SEK 682.2 million (574.6) of net sales, up 18.7%. Based on unadjusted exchange rates, the increase would have been 24.1%. Cloud recurring revenue (CRR) increased 49.2% to SEK 274.7 million (184.1).
• Operating profit increased 5.1% to SEK 209.1 million (198.9), corresponding to an operating margin of 20.2% (21.8). Based on unadjusted exchange rates compared with the year-earlier quarter, the increase would have been 18.0%. The outcome includes SEK 26.6 million (26.1) in costs for share-based incentive programs.
• Profit for the period amounted to SEK 157.5 million (131.2).
• Cash flow from operations amounted to SEK 519.7 million (222.3). This change was primarily linked to advances from customers.

2025/2026 fiscal year¹

• Contracted order bookings decreased 12.7% to SEK 7,599.5 million (8,706.1), of which SEK 5,854.5 million (7,653.0) pertained to guaranteed order bookings. The comparative figures include a very large Canadian order with a contracted order value of SEK 3.1 billion.
• Net sales increased 9.3% to SEK 3,541.7 million (3,239.8). Based on unadjusted exchange rates compared with the year-earlier quarter, the increase would have been 16.5%. Recurring revenue accounted for SEK 2,451.3 million (2,067.4) of net sales, up 18.6%. Based on unadjusted exchange rates, the increase would have been 26.7%. Cloud recurring revenue (CRR) increased 54.9% to SEK 915.8 million (591.1).
• Operating profit rose 15.9% to SEK 710.6 million (613.0), corresponding to an operating margin of 20.1% (18.9). Based on unadjusted exchange rates compared with the year-earlier period, operating profit would have increased 34.3%. The outcome includes SEK 80.7 million (63.5) for share-based incentive programs. The increase for incentive programs was due to a new program that started during the second half of the previous fiscal year.
• Profit for the period amounted to SEK 563.8 million (475.6).
• Cash flow from operations amounted to SEK 1,097.3 million (824.9).
• The Board and CEO propose that the 2026 AGM resolve on an ordinary dividend of SEK 1.30 (1.10) per share and an extraordinary dividend of SEK 1.00 (1.00) per share, considering the year's cash flow and Sectra's financial position. In addition, it is proposed that the Board be authorized to decide on the acquisition of own shares (see the year-end report) in order to enable the repurchase of Class B shares to secure the company's commitments under a new share-based incentive program that the Board intends to propose to the AGM.
  
  ^[1] Figures in parentheses pertain to the corresponding period/quarter in the preceding fiscal year. Figures for the comparative year are presented excluding the effects of a patent settlement that had a positive impact of SEK 110 million on operating profit. The business transaction was a non-recurring item and was recognized during the third quarter of 2024/2025 The patent settlement had no effect on order bookings and net sales. For further information, see the attached year-end report.

Comments from Torbjörn Kronander, President and CEO of Sectra AB

"Digitization, AI and increasing security requirements are drivers that are fundamentally changing how both we and our customers work. For us, this is about embracing change and converting new technologies into customer value. With a corporate culture that encourages innovation and ideas, and puts them into practice, we are continuing to strengthen Sectra's position in medical IT and cybersecurity—areas where our solutions make a difference in people's lives, health and safety all over the world.

"The Group's net sales exceeded SEK 1 billion for the first time in a single quarter. This positive performance was made possible as a result of satisfied and loyal customers. All of our operating areas are growing and reporting increased operating profit, despite the negative impact of currency effects and delays in product deliveries in Secure Communications.

"Our ongoing transformation of the business model from software sales to service deliveries helped to increase the total share of recurring revenue by 5 percentage points to close to 70% during the fiscal year. This also led to a more even performance between quarters compared with our past seasonal trends, which is clear from our earnings outcomes for the last three quarters.

"AI is an enormous wave rolling in and no one knows exactly how it will affect the future. We are choosing to ride this wave and course-correct as we go, rather than paddling behind and struggling to catch up.

"At a time when politics, technology and business risks are becoming increasingly interconnected, our ability to combine innovation with high security and long-term trust is growing in importance. We will continue capitalizing on this and other strengths to make the world a healthier and safer place. Our stable financial position gives us the ability to continue investing in innovation and capacity for the future. Together with our customers, we are shaping and driving developments forward, which means that our speed is a crucial strength. The trust we receive from our customers is not something we take for granted. We must continue to earn it and build on it every day."

Read the attached financial report for further CEO comments and information.

Presentation of the financial report
Torbjörn Kronander, President and CEO of Sectra AB, and Jessica Holmquist, CFO of Sectra AB, will present the financial report and answer questions. The presentation will be held in English.

Time: June 5, 2026, at 10:00 a.m. (CEST)

Follow live or listen to the recording afterward: https://investor.sectra.com/q4report2526

This information constitutes information that Sectra AB (publ) is obligated to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 8:15 a.m. CEST on June 5, 2026.

CONTACT:

For further information, please contact:
Dr. Torbjörn Kronander, President and CEO, Sectra AB, +46 (0) 705 23 52 27

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