Interim report Image Systems AB January - September 2025

Third quarter July–September	Interim period January–September
Order intake amounted to MSEK 34.2 (47.1) Net sales amounted to MSEK 41.4 (56.6) Gross margin amounted to 71 (67) percent EBITDA amounted to MSEK 7.1 (17.3) Earnings per share amounted to SEK 0.01 (0.14)	Order intake amounted to MSEK 91.9 (140.5) Net sales amounted to MSEK 129.9 (139.1) Gross margin amounted to 68 (68) percent EBITDA amounted to MSEK 12.6 (25.8) Earnings per share amounted to SEK -0.06 (0.14)
Financial overview

	Jul–Sept 2025	Jul–Sept 2024	Jan–Sept 2025	Jan–Sept 2024	Full year 2024
Order intake, MSEK	34.2	47.1	91.9	140.5	228.5
Order backlog, MSEK	77.4	73.0	77.4	73.0	117.5
Net sales, MSEK	41.4	56.6	129.9	139.1	184.9
Capitalized development expenditure, MSEK	2.5	3.6	8.1	10.9	14.9
Gross margin, %	71	67	68	68	68
EBITDA, MSEK	7.1	17.3	12.6	25.8	26.8
EBITDA margin, %	16.2	28.7	9.1	17.2	13.4
Operating profit (EBIT), MSEK	0.9	12.8	-5.2	12.4	8.8
Profit after tax, MSEK	0.7	12.8	-5.3	12.4	8.6
Cash flow from operating activities, MSEK	10.8	3.2	17.3	24.7	39.2
Solidity, %	58	60	58	60	55
Average number of employees	74	73	72	70	72
Earnings per share	0.01	0.14	-0.06	0.14	0.10

A WORD FROM THE CEO

Stability in challenging market conditions

The third quarter was characterized for both business units by continued cautious customer willingness to invest, which led to longer sales cycles and decreased order intake, MSEK 34.2 (47.1) compared with the previous year, but an increase from the previous quarter (26.8).

In this market climate, the Group showed stable development. Net sales amounted to MSEK 41.4 (56.6), the gross margin to 71 percent (67), while EBITDA amounted to MSEK 7.1 (17.3). Earnings continued to be impacted by the ongoing transi­tion to a subscription-based business model within Motion Analysis and by lower net sales for RemaSawco.

Thanks to several deliveries during the quarter, cash flow from operating activities improved to MSEK 10.8 (3.2). The order backlog increased to MSEK 77.4 (73.0).

RemaSawco – good results in a weak market

RemaSawco reported a quarter with maintained good profitability. Due to a decline in order intake, net sales amounted to MSEK 32.4 (44.3). The EBITDA margin was 22.2 percent, lower than last year but improved compared to the second quarter.

The wood products market remains in a slump with limited construction activity. However, our assessment remains that sawmills will prioritize investments in streamlining and optimizing their production processes.

The business unit continues to focus on upgrade projects, service agreements, and customer-oriented solutions that contribute to short-term sales and long-term customer relationships. We are intensifying efforts to enhance our service offering in order to strengthen our recurring rev­enue base.

Motion Analysis – growing order backlog

The launch of the new software platform, along with a strengthened local presence in key markets, has been well received and lays the foundation for long-term growth. The defense and automotive industries, our key customer segments, continue to demonstrate increasing demand for advanced analysis solutions. The business unit also sees good opportunities in other application areas where our offering is well suited.

The subscription-based business model continues to contribute to a growing share of recurring revenue. Net sales amounted to
MSEK 9.0 (12.3), but increased compared with the previous quarter (7.1). Order intake amounted to MSEK 15.9 (19.2), which is a sequential improve­ment. The order backlog for subscription and support services increased to MSEK 38.7 (18.6).

The new business model is developing according to plan, and we are beginning to see the effects of a higher proportion of direct sales.

Deliberate moves and with an eye to the future

Our strategic direction remains unchanged: to build sustainable profitable growth with a higher proportion of recurring revenue. In the current state of the market, characterized by low invest­ment appetite, we are making conscious efforts to strengthen our presence and service organiza­tion in priority markets and ensure customer sat­isfaction. The Group’s underlying operations are stable and efficient, and we are well positioned. As soon as the market fuels our well-oiled ma­chinery, we will be ready to take advantage of improved cyclical conditions.

We continue to selectively invest in product de­velopment, focusing particularly on AI and auto­mation to accelerate the development process and enhance customer value.

Finally, I would like to thank the personnel for their solid efforts during the quarter. In addition, I would like to welcome Andreas Ovemyr as the new CEO of the Motion Analysis business unit. I am convinced that he will bring new perspec­tives and take the business to the next level.

THE GROUP’S DEVELOPMENT IN THE THIRD QUARTER

Order intake, net sales and profit

Order intake amounted to MSEK 34.2 (47.1). Order backlog as of September 30, 2025, amounted to MSEK 77.4 (73.0).

Net sales amounted to MSEK 41.4 (56.6). Capitalized development expenditure amounted to MSEK 2.5 (3.6) and relates to both business units.

Gross margin amounted to 71 (67) percent.

EBITDA amounted to MSEK 7.1 (17.3).

Other external charges are in line with the same period last year. Personnel costs increased compared to last year’s period, which is attributed to an exchange of skills and an increase in the number of employees.

Depreciation/amortization amounted to MSEK -6.2 (-4.5). During the year, we have begun depreciation/amortization of several development projects in connection with commercial launch.

Net financial items amounted to MSEK -0.3 (-0.1).

Result after taxes amounted to MSEK 0.7 (12.8).

Financial position, investments and cash flow

The Group’s investments in non-current assets during the quarter amounted to MSEK 3.5 (6.1) of which MSEK 2.5 (3.6) was related to capitalized development projects. Capitalization of development projects takes place in both business units.

The operational cash flow during the quarter amounted to MSEK 7.3 (-2.9). Solidity as of September 30, 2025, amounted to 58 (60) percent. Net indebtedness amounted to 0.0 (0.1) times.

Available cash and cash equivalents including the undrawn part of the overdraft facilities amounted to MSEK 27.9 (21.8) as of September 30, 2025.

THE GROUP’S DEVELOPMENT DURING THE INTERIM PERIOD

Order intake amounted to MSEK 91.9 (140.5). Order backlog as of September 30, 2025, amounted to MSEK 77.4 (73.0).

Net sales amounted to MSEK 129.9 (139.1). Capitalized development expenditure amounted to MSEK 8.1 (10.9) and relates to both business units.

Gross margin amounted to 68 (68) percent.

EBITDA amounted to MSEK 12.6 (25.8).

Other external charges decreased, which mainly is attributable to an increase in capitalized external consultancy costs related to the RemaSawco business unit’s product development. Personnel costs increased as a result of the expansion of our own operations in North America and Japan.

Depreciation/amortization amounted to MSEK -17.8 (-13.4). Capitalized development costs are lower than last year as we have begun depreciation/amortization of several development projects in connection with commercial launches. Net financial items amounted to MSEK -0.5 (-0.4).

Result after taxes amounted to MSEK -5.3 (12.4).

 

ROLLING 12-MONTH ORDER INTAKE, REVENUE AND EBITDA

 

 

The Group’s rolling 12-month EBITDA margin during the third quarter amounted to 7.2 percent. The Group’s long-term EBITDA target of delivering a stable 15 percent EBITDA margin requires growth in net sales. The pace of the ongoing change in the Motion Analysis business unit, to a higher proportion of subscription and support agreements, may also affect how quickly the long-term goal is achieved. The changed business model will eventually translate into growth in both net sales and EBITDA results.

BUSINESS UNIT: REMASAWCO

RemaSawco provides solutions to optimize production in the sawmill industry. The product portfolio includes proprietary software that, with the help of laser, 3D scanning, X-ray, and automation, measures and analyzes timber and boards throughout the sawmill process to maximize value exchange, minimize waste, and thus increase customer profitability.

Performance during the period

Order intake amounted to MSEK 18.3 (27.9), reflecting the weak market situation in the wood products industry. High commodity prices continue to negatively affect the market, although there are some signs of a slight decline in prices. However, this change will not have an immediate impact on sawmills. At the same time, sawmills are facing pressure from lower prices for sawn timber, and construction has not yet picked up, which together contributes to reduced demand.

The business unit’s earnings are beginning to be affected by lower order intake. Net sales amounted to MSEK 32.4 (44.3) and EBITDA to MSEK 7.4 (13.7), a reduced but still high margin of 22.2 percent (29.7). At the same time, customer satisfaction, delivery precision, and quality have been significantly strengthened, giving us a stronger position when market conditions improve. We continue to invest in our product portfolio, drive development forward, and strengthen our service offering with SLAs, upgrade packages and smaller projects.
 

	Jul–Sept 2025	Jul–Sept 2024	Jan–Sept 2025	Jan–Sept 2024	Full year 2024
Order intake, MSEK	18.3	27.9	56.7	97.9	165.9
Net sales, MSEK	32.4	44.3	103.1	109.1	146.8
Capitalized development expenditure, MSEK	1.0	1.8	3.0	5.0	6.9
EBITDA, MSEK	7.4	13.7	18.8	22.7	28.0
EBITDA margin, %	22.2	29.7	17.7	19.9	18.2

 

Product development

During the quarter, we have worked on updating existing products and advancing the development our X-ray scanner. The incremental product development of the new measuring station has been successful, and the working method is being rolled out in more product areas.

Our continued investments in product development aim to increase the scalability of our solutions and further develop key functions for digitizing and optimizing sawmill processes. During the quarter, our efforts in generative AI took shape, and we began introducing AI models into both our working methods and our products. This endeavor is expected to be the most important driving force for accelerating the pace of development and strengthening our position when the market situation improves.

BUSINESS UNIT: MOTION ANALYSIS

Motion Analysis offers its customers software for the analysis of high-speed film, a niche where the Company is the world leader. The software is sold under the product names TEMA and TrackEyeⓇ.

Performance during the period

The cautiousness we observed in the market at the start of the year has persisted, and transactions continue to take longer to complete. However, towards the end of the quarter, we have observed some improvement, as several orders have been received.

Order intake during the quarter amounted to MSEK 15.9 (19.2), which is lower than the previous year, but the order backlog for subscription and support services continued to build up and amounted to MSEK 38.7 (18.6) at the end of the quarter. The growing share of recurring revenue increases our stability going forward. Net sales amounted to MSEK 9.0 (12.3) and EBITDA to MSEK 0.6 (4.7), with EBITDA affected by lower sales volumes, the transition to a subscription-based business model, and continued investments in product development.

The new software platform is an important part of our growth strategy. The solution was launched commercially during the year, and we believe that, together with an increasing proportion of multi-year subscription agreements, this will be an important driver of future growth.

	Jul–Sept 2025	Jul–Sept 2024	Jan–Sept 2025	Jan–Sept 2024	Full year 2024
Order intake, MSEK	15.9	19.2	35.2	42.6	62.6
Order backlog subscription and support services, MSEK	38.7	18.6	38.7	18.6	31.8
Net sales, MSEK	9.0	12.3	26.8	30.0	38.1
Capitalized development expenditure, MSEK	1.5	1.8	5.1	5.9	8.0
EBITDA, MSEK	0.6	4.7	-1.6	7.0	5.1
EBITDA margin, %	5.7	33.3	-5.0	19.5	11.1

 

Product development

Product development and innovation are core elements in the Company’s continued development. Object-tracking features powered by AI were launched during the quarter. Meanwhile, several development initiatives are underway that we believe will strengthen our competitiveness and growth in the future.

OTHER INFORMATION

Parent Company

The Parent Company’s revenue for the third quarter amounted to MSEK 1.5 (0.7). Operating profit amounted to MSEK -0.9 (-1.1). Result after taxes amounted to MSEK -0.9 (-1.1). Investments in fixed assets amounted to MSEK 0.0 (0.0). The Parent Company’s available liquid funds as of September 30, 2025, amounted to MSEK 0.2 (0.0). The Parent Company’s equity as of September 30, 2025, amounted to MSEK 112.7 (104.7) and the solidity was 98 (98) percent.

Significant events after the period

The Motion Analysis business unit has received an order from a US defense customer worth approximately MSEK 2.4.

The RemaSawco business unit has received an order from Bergkvist Siljan worth MSEK 1.9.

Image Systems AB has appointed a Nomination Committee for the 2026 Annual General Meeting in accordance with previously decided principles. The information was published in a press release on October 20, 2025.

Personnel

The average number of employees was 74 (73). The number of employees at the end of the period was 80.

Number of shares

The number of shares on September 30, 2025, amounted to 89,207,818.

Accounting policies

Image Systems applies the International Financial Reporting Standards (IFRS) as adopted by the EU. The interim report for the Image Systems Group is prepared in accordance with IAS 34, Interim Financial Reporting, and the Swedish Annual Accounts Act. Disclosure in accordance with IAS 34, Interim Financial Reporting, is provided in notes as well as elsewhere in the interim report.

The interim report for the Parent Company, Image Systems AB, is prepared in accordance with the Swedish Annual Accounts Act as well as the Swedish Financial Reporting Board’s recommendations RFR 2 Accounting for Legal Entities.

Image Systems applies the ESMA (European Securities and Markets Authority) Guidelines on Alternative Performance Measures. Definitions of indicators are provided on page 16 and relevant reconciliations on page 15.

One inventory item has been reclassified from other receivables to inventory. Comparative figures have been adjusted.

Risks and uncertainties

The Group’s significant risks and uncertainties include business risks related to agreements with customers and suppliers as well as other external factors such as currency fluctuations. The Group’s significant financial and business-related risks are discussed at depth in the management report and under Note 3 in the 2024 Annual Report. No significant new or changed risks or uncertainties have been identified during the quarter.

This interim report has been reviewed by the Company’s auditors.

Financial calendar

 

Year-end report 2025	February 6, 2026
Interim report January–March 2026	April 24, 2026
Annual General Meeting 2026	May 7, 2026
Interim report April–June 2026	July 17, 2026

 

Long-term financial objectives

Image Systems aims to create long-term value growth for its shareholders. To achieve this, the Board of Directors has set long-term financial objectives:

EBITDA	>15%
Solidity	>50%
Dividend	20% of the profit after taxes

The Board of Directors and the Chief Executive Officer confirm that the interim report provides a true and fair overview of the Parent Company’s and the Group’s operations, financial position, and perfor-mance and describes the material risks and uncertainties facing the Parent Company and the companies included in the Group.

Linköping, October 24, 2025

 

Emilien Saindon

Chief Executive Officer

The information in this report is disclosed pursuant to the EU Market Abuse Regulation. The infor-mation was submitted for publication, through the agency of the contact person set out below, at 08:00 AM on October 24, 2025.

Financial reports are available on the Company’s website http://www.imagesystemsgroup.se

Questions will be answered by:

Emilien Saindon, CEO and President

Telephone: +46 (0)13-200 100, e-mail: emilien.saindon@imagesystems.se