From Strategy to Success, Sensys Gatso Group presents its report for the first quarter 2026

CEO COMMENTS
A Productive Start to 2026
Q1 2026 marks our fourth consecutive quarter of improved performance with revenues up 5% and EBITDA margin expanding from 7,3% to 13,9%. This confirms the efficacy of the strategic direction communicated last year: Our focus on core markets, combined with disciplined execution and a commitment to profitable growth, is yielding tangible results. Additionally, starting with this quarter’s report, we introduce new segment reporting and also provide additional detail on North American revenue and order intake, as more fully explained below.

Strong Q1 Financial Results
Turning first to Q1 financial results, we realized year over year improvements in revenue, EBITDA and EBIT.  

Increased Revenue
Effective backlog conversion and project execution as well as contributions from our recurring revenue base drove growth for the quarter, led by our International segment. Specifically, revenue reached MSEK 160, a 5% increase over MSEK 152 in Q1 2025. Service revenue in Sweden and Saudi Arabia, as well as robust contributions from both Product sales and Service revenue in our Dutch entity, more than offset negative currency impacts and lower event volumes in the US resulting from severe Winter weather in the US Northeast and increased compliance with speed limits in our Albany, NY contract.

Expanded Margin 
Our focus on operational efficiency delivered meaningful margin expansion for the quarter. EBITDA grew from MSEK 11,1 last year to MSEK 22,2, improving margin from 7,3% to 13,9% this quarter. This improvement is a direct result of economies of scale in project delivery and effective expense management throughout the organization. Furthermore, our commitment to profitable growth is evidenced by the shift to positive EBIT of MSEK 8,2, a significant turnaround from MSEK -1,1 in Q1 2025.

New Segment Reporting for Greater Clarity
Our report introduces a significant change to our financial reporting structure, moving from segments based on type of sale (Managed Services and System Sales) to a geographic basis: North America and International. The change is driven by our commitment to transparency and our desire to provide investors with a clearer view of our underlying business performance.

The new segmentation reflects our strategic priorities and the different business models that apply globally. North American customers primarily seek turnkey Services through multi-year program contracts that require upfront capital investment in hardware, software configuration and ongoing operational support in return for long-term recurring revenue streams. Segmenting North America allows us to highlight the progress of our Service business in this core growth region. The International segment captures the consolidated performance of our other global entities. This segment includes both high-value, one-time Product sales, and recurring Service revenue, often in the form of long-term maintenance contracts that accompany Product sales or turnkey services programs similar to North America. Overall, the new segments will better illustrate the true drivers of our global performance and the distinction between Product and Service revenue.

Additional Detail on North American Revenue and Order Intake
Growing our North American Service business requires retention of the existing customer base, winning new business, and then converting new business to recurring revenue. To increase clarity on this growth process, our new reporting introduces three Key Performance Indicators (KPIs):  Revenue Retention Rate, New Business Intake, and Backlog, all expressed in Annual Recurring Revenue (ARR).  Revenue Retention Rate provides important insight into existing customer performance, including the impact on revenue of renewals, churn, expansions and event volumes. New Business Intake measures the booking of incremental sales. Backlog summarizes incremental sales pending conversion to revenue and, while not a guarantee, is a leading indicator of potential growth. We believe that these KPIs, rather than a single order intake metric, will facilitate a better understanding of our North American business trajectory.

Strategic Reorganisation to Accelerate North American Growth
After a comprehensive review of the business, the first quarter saw us commence a significant reorganization in North America designed to improve our commercial focus and accelerate profitable growth. We are excited to welcome Brett Peze as our Managing Director in North America. Brett brings a wealth of leadership experience in transportation services, and a proven track record in operations, customer success, product, and business development. His appointment is a key pillar in strengthening our presence and delivery capabilities in the vital US market. Complementing this leadership change, we have restructured the North American commercial team as we continue to prioritize sales and marketing investments across the company. The restructure, which includes new sales leadership and enhanced customer success and bid management resources, will facilitate increased and higher level market participation as well as customer focus, while better leveraging our global team and deep subject matter expertise.

Reaffirmed Financial Outlook 2026
Looking ahead, we are reaffirming our full-year financial guidance, anticipating revenue in the range of MSEK 750-800 and an EBITDA margin of 14-16%. While our operational momentum remains strong, the conflict in the Middle East has introduced market volatility that may impact our business. We are confident that our strategic focus and financial discipline position us well to navigate the remainder of the year.

Lewis Miller
CEO

PRESENTATION OF THE INTERIM REPORT
Invitation to a presentation
On 7 May 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/q1-report-2026

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://events.inderes.com/sensys-gatso-group/q1-report-2026/dial-in

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 7 May, 2026.

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 294 employees. The Sensys Gatso Group’s shares are listed on Nasdaq Stockholm. 

For further information, visit www.sensysgatso.com

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