Interim Report January-June 2025

April - June 2025
- Revenue MSEK 204 (167)
- Order intake and Procurement Awards MSEK 54 (418)
- Operating profit (EBITDA) MSEK 31.4 (24.4)
- Operating profit (EBIT) MSEK 18.0 (13.4)
- Total Comprehensive income MSEK 1.7 (3.5)
- Earnings per share, before and after dilution (SEK) -0.77 (0.83)
- Cash flow from operating activities MSEK 10.0 (-44.1)

January - June 2025
- Revenue MSEK 357 (292)
- Order intake and Procurement Awards MSEK 247 (736)
- Operating profit (EBITDA) MSEK 42.4 (27.4)
- Operating profit (EBIT) MSEK 16.9 (5.8)
- Total Comprehensive income MSEK -42.1 (23.2)
- Earnings per share, before and after dilution (SEK) -2.05 (0.38)
- Cash flow from operating activities MSEK -21.0 (10.9)

Comments from the CEO

CEO Transition
I am honored to assume the Group CEO position effective 16 June 2025 and thank prior CEO Ivo Mönnink for a smooth transition and his excellent stewardship of the company. As demonstrated by our Q2 revenue results and strong order backlog, the company is well positioned for further growth across our global markets.

Over the first 100 days, I am focusing on engagement with our global teams and customers to better understand our market differentiators and key performance drivers. With a Board directive to accelerate profitable growth, I am initially focusing on the following three key priorities: 

• Understanding our people and organizational structure to ensure we are operating efficiently and aligned with our profitable growth objectives
• Assessing our markets and customer value propositions to facilitate good investment decisions backed by strong business cases
• Evaluating our technology and go to market strategies to ensure we are positioned for both shorter-term wins and long-term success

With growing markets, long-term customer relationships, talented teams and strong technology offerings, it is tremendously exciting to join Sensys Gatso.

Strong Revenue Growth, Driven by Higher System Sales and TraaS Revenue
Total revenue for the quarter landed at SEK 204 million, 22% higher than SEK 167 million in Q2 2024.  Systems sales grew 39% (SEK 79 million to SEK 110 million) and recurring revenue, TraaS, grew 7% (SEK 88 million to SEK 94 million) over the same period in 2024.  Implementations in our core Swedish and Dutch markets, as well as fulfillment of final performance obligations on 2023 and 2024 Saudi deliveries, primarily drove higher System Sales. This will result in increased recurring revenue over time as the Swedish and Dutch projects transition to ongoing operations.  Commencement of maintenance and support for in-vehicle systems in Saudi Arabia contributed to increased TraaS revenue, along with recovery in the US managed services business from the prior negative impact of Iowa legislative changes.  This US recovery includes revenue from approved mobile deployment locations in Iowa, new customer contracts, and existing program expansions.

We continue to see strong demand for automated traffic enforcement in our core markets, including new State enabling legislation in the US, with multiple ongoing opportunities globally.  While order intake year-to-date is currently below 2024 levels, this reflects timing effects from renewals and expected sales cycles.

Improved EBITDA Margins
EBITDA margin improved significantly, reaching 15.4% (SEK 31.4 million) in the quarter, up from 7.3% in Q1. This also represents a 29% increase compared to SEK 24.4 million in Q2 2024, and continues our upward trend in rolling 12 month EBITDA. As a result, the H1 EBITDA margin stands at 11.8%.  While Q2 margin includes certain one-time items detailed in the Group Financial Results, we believe the quarter's performance better reflects our underlying operational strength as we move into the second half of the year.

Reaffirming Financial Outlook
Uncertainty surrounding the global political environment, in particular potential continuing negative translation effects from a weakening US Dollar, pose challenges for predicting full year 2025 performance.  At mid-year, we are tracking to the lower end of 2025 revenue guidance (SEK 700-800 million) and the middle range of 2025 EBITDA guidance (12-14%).  We will continue to closely monitor market developments and remain confident in our ability to deliver in line with expectations.

Lewis Miller
CEO, Sensys Gatso Group

Invitation to a presentation
On 21 August at 10 am CET Sensys Gatso Group invites press, analysts, shareholders, and stakeholders to participate in an audiocast. The company's CEO Lewis Miller and CFO Simon Mulder will present the financial results in English. The presentation in connection with this report will be published on the website. 

The presentation/audiocast can be joined online or via telephone and will be available on the company's webpage: https://www.sensysgatso.com

If you wish to participate via webcast please use the link below.
https://sensys-gatso-group.events.inderes.com/q2-report-2025

If you wish to participate via teleconference please register on the link below. After registration you will be provided phone numbers and a conference ID to access the conference. You can ask questions verbally via the teleconference.
https://conference.inderes.com/teleconference/?id=5008027

This information is information that Sensys Gatso Group AB (publ) is obliged 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 above, at 08.30 on 21 August, 2025.

For further information please contact:
Lewis Miller, CEO
e-mail: [email protected]
e-mail IR: [email protected] 
Telephone: +46 36 34 29 80

Sensys Gatso Group AB is a global leader in traffic management solutions for nations, cities and fleet owners. Sensys Gatso Group has subsidiaries in Australia, Costa Rica, Germany, the Netherlands, Saudi Arabia, Sweden and the USA, and a branch office in the United Arab Emirates and has 308 employees. The Sensys Gatso Group's shares are listed on Nasdaq Stockholm. 

For further information, visit www.sensysgatso.com