Interim Report Q1 2025 (January - March)

Comments from the CEO
94% of order intake is recurring revenue
Order intake and procurement awards during the first quarter came in at SEK 192 million compared to SEK 318 million in Q1 2024. Of the total order intake, 62% or SEK 119 million, is from orders received in the U.S. market. SEK 65 million is related to renewing a contract with our longstanding customer East Providence in Rhode Island. The remaining SEK 54 million relates to three new contracts signed during the quarter in three different states; Illinois, Pennsylvania and Colorado. The latter one is our first contract in a new State for Sensys Gatso, with the city of Longmont. Opening up a new state is a milestone that potentially could lead to new cities following suit. Of the SEK 192 million total order intake 94% or SEK 180 million is labeled as recurring revenue. The substantial share of recurring TRaaS revenue within our Q1 order intake demonstrates that we continue to grow our stable, recurring revenue base in line with our strategy.

First recurring revenue order from Saudi Arabia
In January we received a TRaaS order from our customer Tahakom to the value of SEK 27 million, to provide maintenance and support services on the 1,200 in-vehicle systems that have been delivered since 2018. This order is for the first year of service and maintenance under a three year framework agreement. These TRaaS services include ensuring that the systems are always compliant with regulatory requirements, correctly functioning, and up-to-date. It reinforces the strategic partnership between Tahakom and Sensys Gatso and marks a significant step towards improving road safety in Saudi Arabia while emphasizing the importance of supporting local content and sustainability initiatives in the Kingdom.

Negligible impact from tariffs on our US business
After the quarter the US Government has imposed global tariffs on most of the countries that export to the USA. Sensys Gatso has a significant business in the USA, representing roughly 40% of our worldwide revenue and growing. The business model we operate in this strategic market through our wholly owned subsidiary Sensys Gatso USA Inc., is a so-called Managed Services Business model. In this model, we own, install, maintain and operate automated traffic enforcement equipment sourced from the Netherlands and Sweden. When operating the equipment, we evaluate events, send out citations and collect the money on behalf of our customers; 55 cities in 12 states. The value added for Sensys Gatso in this model is generated from the operations part in the value chain. The equipment we use is typically depreciated over 5 years and has a negligible impact in the value chain. The recent turmoil resulting from the tariffs communication has weakened the dollar against the Swedish Krona and the Euro. These currency translation effects naturally affect our profit before tax during the first quarter.

Revenue up 22%; TraaS revenue up 11%
Total Revenue for the quarter arrived at SEK 152 million, 22% higher than Q1 2024 at SEK 125 million. The 44% increase in System Sales - from SEK 41 million to SEK 59 million - was mainly related to an increased roll-out of the Dutch tender in Q1. The recurring TRaaS revenue arrived at SEK 93 million this quarter, 11% higher than Q1 2024 at SEK 84 million. The TRaaS revenue is primarily driven by our TRaaS Managed Services business in the USA. Our TRaaS Managed Services revenue remained relatively stable at SEK 57 million versus SEK 59 million in Q1 of last year. From this, we may conclude that our US team managed to compensate for the shortfall in revenue from the Iowa paused programs with increased revenue from programs in other states. This quarter our recurring TRaaS business accounted for 61% of our total revenue. This is in line with our strategic target of more than 60% of total revenue.

Stable margin, increased EBITDA
Our Gross Margin this quarter was 37%, compared to 38% in Q1 2024. This is lower than our run rate margin of 40% and is driven by the relatively large contribution this quarter of System Sales from the Dutch project. System Sales margins are typically lower and precede the higher margin Service and Maintenance recurring revenue, which is expected to continue for at least 6 years for the Dutch project. The overall gross margin of the contract will gradually recoup during this phase. Our EBITDA for the quarter arrived at SEK 9 million, SEK 5 million higher compared to SEK 4 million last year.

Currency Translation effects on financial performance
Due to volatility in main foreign currencies US Dollar, Australian Dollar and Euro, Sensys Gatso has been impacted through translation of its foreign currency receivables and cash positions to Swedish Krona. This has resulted in a negative impact in the first quarter of approximately SEK 6 million compared to a positive impact in Q1 2024 of SEK 3 million. The interest on the Euro bond of EUR 30 million has resulted in an interest expense of approximately SEK 7 million compared to SEK 3 million in Q1 2024. The total Financial items amounted to approximately SEK 13 million (0) for the quarter.

Financial Outlook
Sensys Gatso has made significant progress in several key areas, including obtaining first contracts in new states in the USA, expansion of the Managed Services business model into other geographical areas such as Australia and Ghana and a strategic partnership in Saudi Arabia with a first order in hand.

Our order book and remaining backlog of more than SEK 1 billion is robust and will provide solid revenue well into the future. We expect our TRaaS business to continue delivering profitable growth, driven by our strengthened U.S. team and our ground-breaking FLUX roadside platform.

Our long-term strategy remains unchanged, and we are taking proactive steps to address the challenges we’ve encountered. We are confident that these actions will position us to deliver on our ambition in the near future.

For 2025 we expect our revenue to arrive between SEK 700 to 800 million. Due to additional sales investments to accelerate growth within the US market, we anticipate to realise an EBITDA margin between 12% and 14% in 2025.

Ivo Mönnink
CEO, Sensys Gatso Group

Invitation to a presentation
On 24 April at 10 am CET Sensys Gatso Group invites press, analysts, shareholders, and stakeholders to participate in an audiocast. The company’s CEO Ivo Mönnink 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-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=5003493

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 24 April, 2025.

For further information please contact:
Ivo Mönnink, CEO
e-mail: i.monnink@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

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