Q1 2025
- Net sales amounted to MSEK 90.9 (75.7), rendering a net sales growth of 20% (-16%)
- The FX adjusted net sales growth for the quarter was 19% (-17%)
- Software revenue amounted to MSEK 50.2 (42.6). The share of total sales reached 55% (56%)
- Adjusted EBIT amounted to MSEK 9.0 (-16.1)
- Adjusted EBIT margin of 10% (-21%)
- Cash flow from operating activities amounted to MSEK -27.5 (-11.1)
- Net income amounted to MSEK -9.4 (-11.4)
- Earnings per share before dilution amounted to SEK -0.25 (-0.33) and diluted to SEK -0.25 (-0.33)
A word from the CEO:
The first quarter of the year was marked by continued geopolitical and economic uncertainty, affecting the business climate across several of our markets. At the same time, the increased focus on defence readiness and crisis management continues to underscore the long-term need for our solutions. While some deals were delayed due to greater caution among decision-makers, we made clear progress - both commercially and operationally.
Net sales for the quarter amounted to SEK 90.9 million (75.7), representing a 20% increase compared to the same period last year. EBIT was SEK 9.0 million (-16.1), corresponding to an EBIT margin of 10%. Operating expenses (OPEX) totalled SEK 72.8 million.
North America
The quarter started strong in North America with a significant contract for AI-enabled exercise evaluation in the defence segment. Market activity slowed somewhat thereafter, but we secured additional contracts for our standard software (COTS), in line with our strategy. We continue to see strong potential, although some deals may take longer to materialize given current market conditions.
In the Resilience segment, several contracts were signed during the quarter. At the same time, we are seeing increased caution linked to the new U.S. administration-decision-making processes are taking longer as stakeholders await political clarity. Nevertheless, market response remains positive, and the need for robust preparedness in both the public and private sectors is clear.
EMEA
Our defence operations in EMEA continued to develop positively. Collaboration with key UK customers is progressing according to plan, and during the quarter we signed a new multi-year agreement with the Norwegian Armed Forces, where our Exonaut platform will now serve as a comprehensive system for exercise and training management.
We are now seeing that the larger investments in European defence capability-often discussed at political levels and in the media-are increasingly aligning with our core areas: training, exercises, and capability development.
In the Resilience segment, we signed new contracts with Swedish government agencies and private-sector clients and expanded into full-scope solutions with several customers from the end of last year. Interest in business continuity, crisis management and total defence continues to grow, and our combination of software and expert services is well positioned. At the same time, decision-making processes tend to be prolonged, likely due to continued uncertainty in the market.
APAC
Revenue in APAC was low during the quarter, as expected, since several major defence projects are scheduled for delivery later this year. Preparations are progressing according to plan, including for Talisman Sabre 2025 exercise in Australia, which represents a key delivery for us.
During the quarter, we also advanced our presence in the Resilience market through new collaborations and customer dialogues related to crisis management and continuity planning. These initiatives are still in an early phase but are aligned with our long-term strategy. While quarterly results may fluctuate due to long sales cycles and project-based business, the overall trajectory is positive.
Expert Services
Expert Services delivered a strong quarter with improved margins, a growing order backlog, and consistently high delivery capacity. We also strengthened the team with a number of key hires. Demand for our consulting services remains high-particularly in the Nordic region within preparedness and total defence-and we are also seeing growing international interest. Expert Services continues to play an important role in complementing our software business, helping customers realize the value of our solutions and build long-term resilience.
Looking Ahead
We continue to execute on our strategy focused on productization, innovation, and scalability. Our work to package and standardize solutions is ongoing, making it easier for customers to purchase, implement, and generate value quickly.
At the same time, we are accelerating the development of new AI capabilities-central to enhancing training, exercises, and preparedness. The recent contract in North America is a concrete example of how we are integrating advanced AI into our offering. Here, we hold a clear advantage: our established platform and extensive experience in secure, isolated environments (on-premise) position us well where AI is to be deployed in sensitive defence and security domains. We will continue to build on this strength in upcoming product generations.
At the end of the quarter, we completed a directed share issue to create a financial buffer-particularly in view of the timing uncertainties surrounding certain large defence contracts in North America and Europe. This enhances our stability in an uncertain market environment.
Despite a quarter shaped by global uncertainty, we strengthened our position, improved our financial results, and made important operational advances. With a clear strategy and a strong global team, we are well positioned for the remainder of the year. It may take slightly longer than previously estimated to achieve full impact, but our direction is clear and we remain firmly committed to creating long-term value for our customers, employees, and shareholders.
Jonas Jonsson
CEO
Invitation to webinar for the presentation of 4C Strategies' Interim report, January - March 2025:
4C Strategies' Interim report for January - March 2025 will be published on Tuesday, April 29, 2025, at 07:50 CET.
The same day at 09:30 CET, a presentation will be held where analysts, investors, media and other stakeholders are invited to participate. The presentation will be a webinar where 4C Strategies' Jonas Jonsson (CEO) and Anders Nordgren (CFO) will comment on the published report and answer questions. The presentation will be in English.
Afterwards, the presentation material will be available on 4C Strategies' website under 'Reports and Presentations'.
For participation at the presentation:
Sign up here
For further information, contact:
4C Group AB (publ)
Jonas Jonsson, CEO
Anders Nordgren, CFO
investor.relations@4cstrategies.com | + 46 (0) 8 522 27 900
Certified Adviser: FNCA Sweden AB
About 4C Strategies
4C Strategies is a leading global provider of organisational readiness and training management solutions for customers in the defence, public and corporate sectors. 4C Strategies provides an integrated offering of organisational readiness and training management solutions in mission-critical environments, consisting of its software platform Exonaut as well as expert services and software-related services. Exonaut complies with the strictest demands on security and data integrity and is accredited by NATO. From its offices in the Nordics, the UK the US and Austrailia, 4C Strategies serves over 150 customers, including some of the world's most high-profile public institutions, global enterprises and several NATO allied armed forces. 4C Strategies was founded in Sweden in 2000, and is headquartered in Stockholm. 4C Strategies is the operational brand within 4C Group AB (publ), which is listed on Nasdaq First North Premier Growth Market under the ticker "4C".
investors.4cstrategies.com
This information is information that 4C Strategies is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-04-29 07:50 CEST.
