Core Insights - Serstech faced significant challenges in 2025 due to geopolitical and macroeconomic factors, particularly the impact of tariff uncertainties which led to a halt in incoming orders for over half the year [3] - Despite lower-than-expected sales, the company achieved important strategic milestones, including the full operational status of in-house production, which is expected to improve gross margins significantly in the coming years [4] - The closure of the Romanian subsidiary has resulted in lower costs and increased R&D productivity, while the company has initiated investments in artificial intelligence to enhance product performance [5] Financial Performance - Total sales for 2025 were reported at 38.6 MSEK, a decrease from 52.3 MSEK in the previous year [7] - EBITDA for 2025 was -20.9 MSEK, compared to -1.2 MSEK in 2024, indicating a substantial decline in profitability [7] - The company reported a cash flow from operating activities of -28.0 MSEK in 2025, a significant drop from 0.6 MSEK in 2024 [7] Strategic Focus - The company plans to shift its focus from R&D to sales and marketing starting in 2026, with expectations of strong and profitable growth due to a larger sales organization and improved product performance [8] - Serstech aims for an average annual sales growth exceeding 30% through 2030, with an EBITDA margin target of over 20% by 2027 [6] - The long-term goal of achieving an 80% gross margin remains unchanged, with several steps taken towards this target [4]

Group 1 - The order from Serstech's Saudi partner, Anfas, will now be recognized as revenue in 2026 instead of Q4 2025 due to the customer's failure to adhere to the approved prepayment plan [1] - The order value remains unchanged at 2.3 MSEK [1] Group 2 - Serstech provides solutions for chemical identification, primarily serving customers in the safety and security industry, including customs, police authorities, security organizations, and first responders [4] - The company's head office and production are located in Sweden [4] - Serstech is traded on the Nasdaq First North Growth Market [5]

Core Insights - The company experienced a significant improvement in customer activity starting in August, leading to a notable increase in net sales to 7.8 MSEK in Q3 from 4.6 MSEK in Q2 [3] - The uncertainty surrounding potential tariffs had a detrimental effect on the industry, causing delays in procurement cycles and tender awards during the first half of the year [4] - A positive trend in order intake has been observed since August, indicating stronger performance in the second half of 2025 compared to the first half [5] Financial Performance - For Q3, net sales amounted to 7,765 KSEK, an increase from 3,392 KSEK in the previous year [8] - EBITDA for Q3 was -4,283 KSEK, an improvement from -6,657 KSEK in the same quarter last year [8] - Cash flow from operating activities in Q3 was -7,783 KSEK, compared to -3,623 KSEK in the previous year [8] Operational Developments - The company has completed its recruitment for the year, doubling its sales organization from four to eight members, which is expected to enhance lead generation and partner onboarding [6] - In-house production commenced in Lund, successfully manufacturing the first five instruments, contributing to improved product quality and cost efficiency [7] - The establishment of local assembly capabilities in key markets is anticipated to provide strategic advantages in the future [7] Market Outlook - With a fully staffed organization and operational capabilities in place, the company is positioned for renewed and sustainable growth, entering the final quarter of the year with strong momentum [8] - The normalization of the market since August is expected to lead to increased tender issuance and improved order intake [5]

Company Performance - In Q2 2025, Serstech reported net sales of approximately 4.5 MSEK, a significant decrease from 21.4 MSEK in the same quarter of the previous year, attributed to geopolitical uncertainty and delayed procurement processes, particularly in the US [3][9] - For the first half of 2025, net sales totaled 24.5 MSEK, down from 35.5 MSEK year-over-year, with EBITDA at -8.2 MSEK compared to 6.9 MSEK previously [9] Strategic Developments - The company has expanded its sales team, doubling its size to six dedicated sales professionals, which is expected to enhance growth opportunities and pipeline development [4][7] - Serstech is transitioning to in-house production, with pilot production starting in late summer and volume production anticipated in Q4, aimed at significantly reducing the cost of goods sold (COGS) [5][6] Operational Efficiency - The consolidation of the team in Lund after closing the Romanian office is expected to reduce costs and improve collaboration, efficiency, and innovation, with new patent applications planned [8] - The in-house production site will increase production capacity and resilience, while also enhancing collaboration between R&D and production [6] Market Outlook - Despite short-term challenges, the opportunity pipeline for the second half of the year remains strong, with expectations for accelerated growth due to the newly expanded sales team [7][8]

Company Leadership Change - Serstech's Chief Financial Officer, Simon Persson, will be on parental leave from June 1 to October 31, 2025, during which Michael Sandin will serve as interim CFO [1] - Michael Sandin has over 30 years of experience in finance, including roles as an accountant and CEO of Outbrave Finance, and holds a degree in finance from Lund University in Sweden [1][2] Company Overview - Serstech provides solutions for chemical identification, primarily serving customers in the safety and security industry, including customs, police authorities, security organizations, and first responders [3] - The company's technology is applicable beyond security, potentially addressing any industry that utilizes chemicals [3] - Serstech's head office and production facilities are located in Sweden [3] Market Information - Serstech is traded on the Nasdaq First North Growth Market, with additional company information available on their website [4]