Interim Report January-September 2025

Comments from the CEO

Our Strategic Focus: Driving Growth, Efficiency & Service
In last quarter’s commentary, I highlighted a plan to spend my first 100 days with the company focused on understanding our people and organizational structure, assessing our markets and value propositions, and evaluating our technology and go to market strategies. My goal was to define what we need to accomplish to build on our strong foundation and deliver on the Board’s directive to accelerate profitable growth.   

Having completed this assessment, with the support and candor of numerous colleagues across our global teams, I have developed a clear picture and strategy centered on three key pillars designed to foster growth, enhance operational efficiency, and ensure world class service to our customers:

1. Strategic Market and Customer Engagement:
   We will focus on making informed and objective investment decisions prioritizing growth and margin expansion at the group level by: 
   • Concentrating on our core markets in Asia Pacific, Europe, the Middle East and North America
   • Remaining opportunistic in other markets, particularly with legacy relationships already in place
   • Emphasizing TraaS and increasing our share of recurring revenue
      
2. Advancing Technology and Go-to-Market Strategies:
   We will consistently evolve and improve our technology and market entry strategies to secure wins by:
   • Developing products in alignment with strategic roadmaps
   • Leveraging our global solutions to accelerate time to market, enhance performance, and improve return on investment
   • Highlighting our market-leading technologies, including but not limited to our in-vehicles solutions, multi-functional devices, and turnkey back office platform
   • Expanding managed service capabilities
      
3. Optimizing Our Organization and Talent:
   We will continuously work to strengthen our organizational structure and talent by:
   • Investing in and bolstering our global product, sales and marketing capabilities
   • Improving operational efficiency through automation, staff and facilities optimization, effective leveraging of global resources, and consolidating our technology stack
   • Attracting, developing, and retaining top talent through initiatives like our 2025 Long-Term Incentive Plan (LTIP)
   • Prioritizing group success over individual entity achievements

The Sensys Gatso Story: Our Guiding Principles
In executing on our three strategic pillars, we will remain true to our history and what has made our company a market leader for decades. At Sensys Gatso, our narrative is built upon guiding principles and promises to each other, our investors and our customers, that define who we are and how we operate:

• Quality: Delivering excellence in everything we do
• Focus: Maintaining a clear vision and strategic direction
• Experience: Leveraging our deep industry knowledge and expertise
• Innovation: Developing and delivering cutting-edge safety solutions
• Global: Operating with a worldwide perspective and reach
• Integrity: Upholding ethics, trustworthiness, and compliance

Applying these principles, we are dedicated to delivering on our commitments and exceeding customer expectations.

Strong Q3 Performance
Turning now to performance, I am pleased to share our excellent Q3 results.

Increased Order Intake
Order intake accelerated in Q3 to SEK 331 million, up from SEK 54 million in Q2, highlighted by multiple procurement successes in Australia totaling SEK 196 million as well as renewals, expansions and new contracts in the US totaling SEK 104 million.  Of particular note is the introduction of fixed systems to a new State, South Australia, as well as a new TRaaS contract for trailer-based mobile camera systems for use in the State of Victoria. Consistent with a focus on our core markets, continuing our growth trajectory in Australia and the US are priorities. As noted above, emphasizing and strengthening our product, sales and marketing capabilities to increase order intake and growth are key components of our overall strategy. 

Solid Revenue Achievement
Total revenue for the quarter landed at SEK 165 million, 17% higher than SEK 141 million in Q3 2024. System sales grew 62% (SEK 42 million to SEK 68 million) over the same period in 2024, driven by ongoing implementations in our core Swedish and Dutch markets. Q3 also saw positive results in our US managed services business, with existing program performance exceeding expectations and increasing revenue from new customer contracts and program expansions coming on-line.  At this time, the US managed services business is fully recovered from and growing over the prior negative impact of Iowa legislative changes.

Continued Margin Improvement
In our Q2 report, we noted our belief that the quarter’s 15.4% EBITDA margin better reflected our underlying operational strength moving into the second half of the year.  Q3 results validated this statement, with EBITDA margin growing to 17.7% (SEK 29.2 million), driven primarily by economies of scale in Sweden and performance improvements in US operations.  This represents a 110% increase compared to SEK 13.9 million in Q3 2024, and continues our upward trend in rolling 12 month EBITDA.  Year to date, EBITDA margin stands at 13.8% approaching the upper level of 2025 EBITDA guidance (12-14%).  As also noted above, steadily improving operational efficiency to expand margin will remain a key priority moving forward.

Improved Financial Outlook
Although we continue to face some headwinds and uncertainties in the global political environment, in particular the negative translation effects from a weakened US Dollar and Euro, our overall financial outlook is improved.  At Q3 close, we continue to track to the lower end of 2025 revenue guidance (SEK 700-800 million) and are now tracking to the upper range of 2025 EBITDA guidance (12-14%).  We remain confident in our ability to deliver in line with expectations and, as always, will continue to closely monitor market developments.

Lewis Miller
CEO, Sensys Gatso Group

Invitation to a presentation
On 20 November 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/q3-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=5009781

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 20 November, 2025.

For further information please contact:
Lewis Miller, CEO
e-mail: l.miller@sensysgatso.com
e-mail IR: investors@sensysgatso.com
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

Related documents