Second quarter: August-October 2025

• Sectra reported its second-highest contracted order bookings for a single quarter. They amounted to SEK 3,431.6 million (4,223.1), of which SEK 2,246.0 million (4,017.0) pertained to guaranteed order bookings. Of the guaranteed order bookings, 4% were recognized as revenue during the quarter and a further estimated 9-19% will pertain to revenue within 12 months after the end of the quarter.
• Net sales increased 12.9% to SEK 850.6 million (753.5). Based on unadjusted exchange rates compared with the year-earlier quarter, the increase was 19.8%. Recurring revenue accounted for SEK 587.9 million (484.7) of net sales, up 21.3%. Based on unadjusted exchange rates, the increase was 28.9%. Cloud recurring revenue (CRR) increased 74.9% to SEK 212.2 million (121.3).
• Operating profit rose 72.1% to SEK 188.6 million (109.6), corresponding to an operating margin of 22.2% (14.5). Growth, investments in capitalizable development projects and compensation from a customer for delays in a project had a positive impact on the outcome for the quarter. Based on unadjusted exchange rates compared with the year-earlier quarter, operating profit rose 95.0%. The outcome includes SEK 16.2 million (13.8) in costs for share-based incentive programs. These costs were impacted by the share price trend, which had a positive effect on cost items during the quarter.
• Profit for the period amounted to SEK 148.4 million (87.8).
• Cash flow from operations amounted to SEK 41.4 million (176.1). The change was primarily the result of an increase in capital tied up in current receivables.

Six-month period: May-October 2025

• Contracted order bookings decreased 2.0% to SEK 4,741.2 million (4,838.1), of which SEK 3,438.3 million (4,560.1) pertained to guaranteed order bookings.

• Net sales increased 9.4% to SEK 1,616.4 million (1,477.3). Based on unadjusted exchange rates compared with the year-earlier period, the increase was 16.0%. Recurring revenue accounted for SEK 1,137.1 million (967.0) of net sales, up 17.6%. Based on unadjusted exchange rates, the increase was 24.8%. Cloud recurring revenue (CRR) increased 60.5% to SEK 391.7 million (244.1).
• Operating profit rose 46.8% to SEK 307.4 million (209.4), corresponding to an operating margin of 19.0% (14.2). Based on unadjusted exchange rates compared with the year-earlier period, operating profit rose 66.8%. The outcome includes SEK 52.3 million (26.3) in costs for share-based incentive programs. The increase was due to a new program that started during the second half of the previous fiscal year.
• Profit for the period amounted to SEK 251.2 million (168.2).
• Cash flow from operations amounted to SEK 159.6 million (119.4). While the increase was the result of strong underlying earnings, the outcome was hindered by the settlement of current liabilities.

Comments from Torbjörn Kronander, President and CEO of Sectra AB

"We live in dramatically and rapidly changing times, and as a wise Board member once said to me many years ago: `Where there is change, there is margin.' It's simply a question of being faster than the competition. Our strength is based on the trust we have built over time. We have been quick to adopt new technology and seize new business opportunities, we have the highest levels of customer satisfaction in the market and-not least-we have fantastic employees. This has resulted in loyal, returning customers, a growing order book and the market's leading solutions for managing essentially all medical images in the cloud.

"Several customers who signed comprehensive service contracts during the previous fiscal year have now entered the pilot phase. The focus is on optimizing services before major deployments. We expect to gradually increase the volumes from these contracts in the coming years. However, it is important to note that implementing these large projects will entail major increased costs, including costs for cloud computing, until our revenue starts to gain momentum after a quarter or two. This will have a negative impact on the rest of the fiscal year.

"We are also experiencing product delivery delays in Secure Communications that will have a negative impact on the full year. Long development cycles and approval processes for encryption solutions as well as changing threat scenarios may have such effects. In the case of Secure Communications, these effects-which have been quite substantial-will continue for the rest of the fiscal year and are not expected to subside until next year. Otherwise this operating area has a strong positive trend, and we believe that the global security situation will continue to drive demand for products and services that can strengthen information security in society.

"The transition to selling cloud-based services is an investment in the future that requires persistence and a long-term focus. While this investment is putting pressure on our short-term financial performance, we are building a stronger and more resilient Sectra in the long term."

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: December 12, 2025 at 10:00 a.m. (CET)

Follow live or listen to the recording afterward: https://investor.sectra.com/q2report2526

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. (CET) on December 12, 2025.