Sweden's Image Systems Q1 sales fall 55% on weak demand

Image Systems AB

24/04/2026 07:12

Overview

Sweden industrial measurement firm's Q1 net sales fell sharply yr/yr amid weak market demand

Company posted negative EBITDA and loss after tax for Q1

Gross margin improved to 90% due to revenue mix

Outlook

Image Systems prioritizes cash flow, cost control and financial preparedness amid challenging market conditions

Company continues to invest in product development and recurring revenue despite subdued demand

Company reiterates long-term targets of EBITDA margin above 15% and solidity above 50%

Result Drivers

WEAK WOOD PRODUCTS MARKET - RemaSawco unit's sales and earnings were hit by low demand and high raw material prices, leading to reduced customer investment and lower order intake

SLOW CUSTOMER DECISION-MAKING - Group order intake and sales were hurt by customers' low willingness to invest and lengthy decision processes

RECURRING REVENUE TRANSITION - Motion Analysis unit increased order intake and subscription backlog, but the shift to recurring revenue has a short-term negative effect on earnings

Company press release: ID:nWkr63tzqS

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
SEK 17.70 mln
Q1 EPS
-SEK 0.15
Q1 Gross Margin
90.00%
Q1 EBIT
-SEK 13.50 mln
Q1 EBITDA
-SEK 6.70 mln
Q1 Orders
SEK 18.60 mln


Analyst Coverage

The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)