Q2 2026 Sensys Gatso Group AB (publ) Earnings Call

August 20, 2026

Speaker #2: Your line is muted.

Speaker #3: Call recording is on.

Speaker #4: Welcome to the Sensys Q2 2026 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing the pound key, 5, on their telephone keypad.

Operator: Welcome to the Sensys Q2 2026 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. If you are listening to the presentation via webcast, you can ask written questions using the form below. Now I will hand the conference over to speakers CEO Lewis Miller and CFO Simon Mulder. Please go ahead.

Operator 2: Welcome to the Sensys Q2 2026 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. If you are listening to the presentation via webcast, you can ask written questions using the form below. Now I will hand the conference over to speakers CEO Lewis Miller and CFO Simon Mulder. Please go ahead.

Speaker #4: If you are listening to the presentation via webcast, you can ask written questions using the form below. Now, I will hand the conference over to the speakers, CEO Lewis Miller and CFO Simon Moulder.

Speaker #4: Please go ahead.

Speaker #5: Good morning, and welcome to the presentation of Sensys Gatso Group's Q2 2026 interim report. My name is Lewis Miller, Group Chief Executive Officer, and joining me this morning is our Group CFO, Simon Moulder.

Lewis Miller: Good morning, and welcome to the presentation of Sensys Gatso Group's Q2 2026 interim report. My name is Lewis Miller, Group Chief Executive Officer, and joining me this morning is our Group CFO, Simon Mulder. To start our presentation, I will provide an overview of our Q2 and H1 results, which include an increase in our full-year EBITDA guidance, developments with our North American restructure, and the appointment of our new Chief Technology Officer. I will then turn the presentation over to Simon to review the group's results, segment reporting, and cash position in greater detail before addressing our financial outlook for the remainder of 2026. Q2 saw us build on our momentum of the past four quarters, with disciplined execution driving a material increase in profitability and improved sales performance.

Speaker #5: To start our presentation, I'll provide an overview of our Q2 and first-half results, which include an increase in our full-year EBITDA guidance, developments with our North American restructure, and the appointment of our new Chief Technology Officer.

Speaker #5: I'll then turn the presentation over to Simon to review the group's results, segment reporting, and cash position in greater detail, before addressing our financial outlook for the remainder of 2026.

Speaker #5: Q2 saw us build on our momentum of the past four quarters, with disciplined execution driving a material increase in profitability and improved sales performance.

Speaker #5: As we reach mid-year, revenue is up 2% over 2025, with EBITDA margin expanding from 11.9% to 17%, a 5.1 percentage point increase. Based on this strong first-half margin performance, we are increasing full-year EBITDA guidance to 15% to 17%.

Lewis Miller: As we reach mid-year, revenue is up 2% over 2025, with EBITDA margin expanding from 11.9% to 17%, a 5.1 percentage point increase. Based on this strong H1 margin performance, we are increasing full-year EBITDA guidance to 15% to 17%. We are also beginning to see tangible results from the strategic restructuring of our North American business that commenced in Q1, with multiple new customer signings leading to a significant increase in backlog. Additionally, to accelerate our next phase of innovation and growth, Q2 saw us appoint a new Chief Technology Officer, Johan Norrman. Johan brings over 20 years of leadership experience in global technology organizations and his proven track record of integrating hardware and software platforms, deploying advanced AI-driven video solutions, and leading significant technology transformations, will be instrumental in ensuring that our roadmap directly supports our commercial strategy and market competitiveness.

Speaker #5: We're also beginning to see tangible results from the strategic restructuring of our North American business that commenced in Q1, with multiple new customer signings leading to a significant increase in backlog.

Speaker #5: Additionally, to accelerate our next phase of innovation and growth, Q2 saw us appoint a new Chief Technology Officer, Johan Norman. Johan brings over 20 years of leadership experience in global technology organizations, and has a proven track record of integrating hardware and software platforms, deploying advanced AI-driven video solutions, and leading significant technology transformations, while ensuring that our roadmap directly supports our commercial strategy and market competitiveness.

Speaker #5: Overall, at mid-year, we are pleased with our progress and will continue to focus on the disciplined execution of our strategy to drive performance. Turning now to our specific Q2 results, revenue was in line with Q2 2025 at SEK 204 million, with improved quarter-over-quarter performance in North America and services.

Lewis Miller: Overall, at mid-year, we are pleased with our progress and will continue to focus on the disciplined execution of our strategy to drive performance. Turning now to our specific Q2 results. Revenue was in line with Q2 2025 at SEK 204 million, with improved quarter-over-quarter performance in North America and services revenue from our global maintenance contracts contributing to the results. While North American revenue continues to be impacted by lower year-over-year violation volumes in our Albany, New York program, we are pleased with the program's effectiveness in reducing speeding and will maintain focus on improved sales performance to increase backlog and support future growth. In our international segment, our core Dutch and Swedish projects continue to provide a solid revenue foundation. Changes in customer order and delivery schedules impacted the timing of some planned Q2 revenue.

Speaker #5: Revenue from our global maintenance contracts is contributing to the results. While North American revenue continues to be impacted by lower year-over-year violation volumes in our Albany, New York program, we are pleased with the program's effectiveness in reducing speeding and will maintain focus on improved sales performance to increase backlog and support future growth.

Speaker #5: In our international segment, our core Dutch and Swedish projects continue to provide a solid revenue foundation. Changes in customer order and delivery schedules impacted the timing of some planned Q2 revenue.

Speaker #5: However, based on current project plans and customer input, we anticipate achieving the majority of delayed Q2 revenue in the second half of the year, while continuing to closely monitor developments.

Lewis Miller: However, based on current project plans and customer communications, we anticipate achieving the majority of delayed Q2 revenue in the H2 of the year while continuing to closely monitor developments. Turning to margin, EBITDA for the quarter landed at 39.8 million, up from 31.4 million last year, with margin increasing from 15.4% to 19.5%. Economies of scale and project delivery and effective expense management across the organization contributed to this result. This strong EBITDA performance flowed down to EBIT, which increased from 18 million in Q2 2025 to 25.1 million this quarter. Turning next to our North American restructure, Q2 saw significant increases in new business intake and backlog. Specifically, new business intake for the quarter reached 16.5 million in annually recurring revenue, driven by new customer signings in Colorado, New York, and Pennsylvania, with backlog increasing to 35.3 million in annually recurring revenues.

Speaker #5: Turning to margin, EBITDA for the quarter landed at SEK 39.8 million, up from SEK 31.4 million last year, with margin increasing from 15.4% to 19.5%. Economies of scale in project delivery, and effective expense management across the organization, contributed to this result.

Speaker #5: This strong EBITDA performance flowed down to EBIT, which increased from SEK 18 million in Q2 2025 to SEK 25.1 million this quarter. Turning next to our North American restructure, Q2 saw significant increases in new business intake and backlog.

Speaker #5: Specifically, new business intake for the quarter reached $16.5 million in annual recurring revenue, driven by new customer signings in Colorado, New York, and Pennsylvania, with backlog increasing to $35.3 million in annual recurring revenue.

Speaker #5: This momentum continued after the quarter, with entry into Minnesota—a new state for Sensys Gatso—to support the state's innovative work zone safety pilot.

Lewis Miller: This momentum continued after the quarter with entry into Minnesota, a new state for Sensys Gatso, to support the state's innovative work zone safety pilot. Q2 also saw the go live of our new Zillium traffic event service. The realization of this investment in our software platform, which includes additional automation, is expected to increase violation processing efficiency while also enhancing the user experience. These encouraging developments in North America position us well for top-line growth and improved margins moving forward. With that said, I'd now like to turn the presentation back over to Simon.

Speaker #5: Q2 also saw the go-live of our new Zillium Traffic Event Service. The realization of this investment in our software platform, which includes additional automation, is expected to increase violation processing efficiency while also enhancing the user experience.

Speaker #5: These encouraging developments in North America position us well for top-line growth at improved margins moving forward. With that said, I’d now like to turn the presentation back over to Simon.

Speaker #2: Thank you, Lewis. Going to our group results first, our Q2 performance has seen a year-over-year improvement in EBITDA and profits. Our revenue for the quarter came in at SEK 204 million, in line with Q2 of last year.

Simon Mulder: Thank you, Lewis. Going to our group results first. Our Q2 performance has seen a year-over-year improvement on EBITDA and profits. Our revenue for the quarter came in at 204 million, in line with Q2 of last year. The services revenue in our international segment was the big driver, with increased revenue from the Netherlands and Australia while navigating international product sales timing. Quarter-over-quarter, the revenue performance in our North America business has improved, overcoming the one-off weather impact in Q1. Our gross profit arrived at 77 million, with a gross margin of approximately 38%, impacted by the compliance effect in the North American business. Effective expense management in both business segments and increased global maintenance revenue have contributed to an improved EBITDA margin of 19.5%, reaching 39.2 million for the second quarter.

Speaker #2: The services revenue in our International segment was the big driver, with increased revenue from the Netherlands and Australia, while navigating international product sales timing.

Speaker #2: Quarter over quarter, the revenue performance in our North America business has improved, overcoming the one-off weather impact of Q1. Our gross profit was SEK 77 million, with a gross margin of approximately 38%, impacted by the compliance effect in the North American business.

Speaker #2: Effective expense management in both business segments and increased global maintenance revenue have contributed to an improved EBITDA margin of 19.5%, reaching SEK 39.2 million for the second quarter.

Speaker #2: The strong EBITDA performance, in combination with lower currency impact in the financial items, resulted in a profit for the period of €14.5 million, compared to a loss of €8.9 million in Q2 of 2025.

Simon Mulder: The strong EBITDA performance, in combination with lower currency impact in the financial items, resulted in a profit for the period of SEK 14.5 million, compared to a loss of SEK 8.9 million in Q2 of 2025. Our segment North America has seen improved sales performance with quarter-over-quarter revenue improvements. During the quarter, we have signed several new customers in Colorado, New York, and Pennsylvania, adding SEK 16.5 million of annual recurring revenue to the order backlog. Our order backlog, which reflects signed contracts pending implementation, closed at SEK 35.3 million annual recurring revenue, net of backlog movements. This backlog will support the future growth in the North American market. The revenue for the quarter amounted SEK 43 compared to SEK 46 million in Q2 of 2025 due to lower violation volumes, as mentioned before. However, revenue is up by 15.5% compared to Q1 of 2026.

Speaker #2: Our segment North America has seen improved sales performance, with quarter-over-quarter revenue improvements. During the quarter, we signed several new customers in Colorado, New York, and Pennsylvania, adding $16.5 million of annual recurring revenue to the order backlog.

Speaker #2: Our order backlog, which reflects signed contracts pending implementation, closed at $35.3 million in annual recurring revenue, net of backlog movements. This backlog will support future growth in the North American market.

Speaker #2: The revenue for the quarter amounted to 43 million, compared to 46 million in Q2 of 2025 due to lower violation volumes, as mentioned before. However, revenue is up by 15.5% compared to Q1 of 2026.

Speaker #2: The EBITDA for the quarter came in at 5 million, impacted by the lower violation volumes. The Q2 2025 results were positively impacted by a one-off insurance recovery of 8 million.

Simon Mulder: The EBITDA for the quarter came in at SEK 5 million, impacted by the lower violation volumes. The Q2 2025 results were positively impacted by a one-off insurance recovery of SEK 8 million. After adjusting for this one-time item, the underlying operational profit improved by SEK 1 million. Our international business segment has experienced an increased order intake during the quarter and improved profitability. New order intake of approximately SEK 63 million is mainly from repeat orders from existing customers and the renewal of our Saudi maintenance contract. After the quarter, we have signed a contract to expand our business in Queensland, Australia with SEK 38 million. Revenue has remained stable at SEK 164 million, with continued deliveries on our core Dutch and Swedish projects. The segment has seen strong service performance driven by maintenance projects in the Netherlands, Australia, and the Middle East.

Speaker #2: After adjusting for this one-time item, the underlying operational profit improved by SEK 1 million. Our International business segment has experienced increased order intake during the quarter and improved profitability.

Speaker #2: New order intake of approximately 63 million is mainly from repeat orders from existing customers and the renewal of our Saudi maintenance contract. After the quarter, we have signed the contract to expand our...

Speaker #2: Queensland, Australia, worth $38 million. Revenue has remained stable at $164 million, with continued deliveries on our core Dutch and Swedish projects. The segment has seen strong service performance, driven by maintenance projects in the Netherlands, Australia, and the Middle East.

Speaker #2: The outperformance of these services revenues in the quarter offset delayed product revenue. Our EBITDA rose to approximately 34 million, with a 21% EBITDA margin driven by effective project and expense management.

Simon Mulder: The outperformance of these services revenues in the quarter offset delayed product revenue. Our EBITDA rose to approximately SEK 34 million, or 21% EBITDA margin, driven by effective project and expense management. Now moving to our cash flow and financial position. Our cash flow from operations amounted to SEK 25 million in the second quarter, with net working capital increased by SEK 13 million in the quarter and SEK 37 million mid-year. This is mainly due to project milestones to be invoiced on completion of parts of the Dutch EG39 project. During the quarter, we have invested SEK 25 million in mainly fixed assets and operations and hardware and software development. Mid-year, the investments amounted to SEK 42 million. Fixed assets and operations relate to our Australian project, which were financed through our asset finance agreement. In the quarter, available cash rose to SEK 192 million, up from SEK 137 million in the second quarter of 2025.

Speaker #2: Now moving to our cash flow and financial position, our cash flow from operations amounted to SEK 25 million in the second quarter, with net working capital increasing by SEK 13 million in the quarter and by SEK 37 million mid-year.

Speaker #2: This is mainly due to project milestones to be invoiced on completion of parts of the Dutch EG39 project. During the quarter, we've invested SEK 25 million, mainly in fixed assets and operations, as well as hardware and software development.

Simon Mulder: During the quarter, we have invested SEK 25 million in mainly fixed assets and operations and hardware and software development. Mid-year, the investments amounted to SEK 42 million. Fixed assets and operations relate to our Australian project, which were financed through our asset finance agreement. In the quarter, available cash rose to SEK 192 million, up from SEK 137 million in the second quarter of 2025.

Speaker #2: Mid-year, the investments amounted to SEK 42 million. Fixed assets and operations relate to our Australian project, which are financed through our asset finance agreement. In the quarter, available cash rose to SEK 192 million, up from SEK 137 million in the second quarter of 2025.

Speaker #2: Our financing position, expressed as our net interest-bearing debt, has increased to approximately SEK 243 million. Main drivers are translation impacts on our euro-denominated bond of SEK 9 million and an increase in our asset finance of SEK 7 million.

Simon Mulder: Our financing position, expressed as our net interest-bearing debt, has increased to approximately SEK 243 million. Main drivers are translation impacts on our euro-denominated bond of EUR 9 million and an increase in our asset finance of SEK 7 million. We continue to have a healthy leverage ratio of 1.89 at the end of the quarter, with cash at bank closing at SEK 137 million. With that, I would like to hand it back over to Lewis.

Speaker #2: We continue to have a healthy leverage ratio of 1.89 at the end of the quarter, with cash at bank closing at SEK 137 million. With that, I'd like to hand it back over to Lewis.

Speaker #1: Thank you, Simon. To conclude our presentation, I'd like to address our financial outlook for 2026. We are reaffirming our revenue guidance for the year of SEK 750 to 800 million, while continuing to closely monitor project schedules and global political developments, particularly in the Middle East, that may continue to impact order and delivery timelines.

Lewis Miller: Thank you, Simon. To conclude our presentation, I'd like to address our financial outlook for 2026. We are reaffirming our revenue guidance for the year of SEK 750 to 800 million while continuing to closely monitor project schedules and global political developments, particularly in the Middle East, that may continue to impact order and delivery timelines. As noted earlier, we are increasing EBITDA guidance for the year from 14% to 16% to 15% to 17%. Overall, our ongoing focus on disciplined execution positions us well to navigate the remainder of the year. To summarize our interim report today, we are pleased with our progress at mid-year. We've achieved a material increase in profitability, leading to increased full-year EBITDA guidance. Our strategic restructuring of the North American business commenced in Q1 is showing results, with strong new business intake and increased backlog to drive growth.

Speaker #1: As noted earlier, we are increasing EBITDA guidance for the year from 14–16% to 15–17%. Overall, our ongoing focus on disciplined execution positions us well to navigate the remainder of the year.

Speaker #1: To summarize our interim report today, we are pleased with our progress at mid-year. We've achieved a material increase in profitability, leading to increased full-year EBITDA guidance.

Speaker #1: Our strategic restructuring of the North American business, commenced in Q1, is showing results, with strong new business intake and increased backlog to drive growth.

Speaker #1: With that, I'd like to open things up to questions.

Lewis Miller: With that, I'd like to open things up to questions.

Speaker #3: If you wish to ask a question, please dial #Key5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial #Key6 on your telephone keypad.

Operator 2: If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. There are no more questions at this time, so I hand the conference back to the speakers for any written questions or closing comments.

Operator: If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. There are no more questions at this time, so I hand the conference back to the speakers for any written questions or closing comments.

Speaker #3: There are no more questions at this time, so I hand the conference back to the speakers for any written questions or closing comments.

Speaker #1: Oh. Well, thank you. Thank you for your time and we'll close the session at this time. Thank you.

Lewis Miller: Well, thank you. Thank you for your time, and we'll close the session at this time. Thank you.

Operator 2: The host has ended this call. Goodbye.

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Q2 2026 Sensys Gatso Group AB (publ) Earnings Call

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