Increased net sales despite challenging market conditions
Even though market conditions remain challenging, both of the Group's business units reported increased net sales in the second quarter. However, order intake was negatively affected by a cautious willingness to invest, resulting in longer sales cycles.
The Group's operating profit decreased, which is partly explained by the Motion Analysis business unit's successful transition to a subscription-based business model. Although this transition will result in lower sales temporarily, it will provide a more stable revenue stream with good margins in the long run. The RemaSawco business unit reported stable earnings for the quarter. The gross margin in deliveries from the business unit was slightly lower due to the product mix with a larger share of hardware.
Our continued strategy is to invest in market presence and in the product portfolios within both of our business units in order to strengthen our long-term position in key markets. We are conducting an increasing proportion of our sales through our own sales and service companies, which will lead to improved profitability and growth.
| Second quarter April-June | Interim period January-June | |
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| |
| Apr-June 2025 | Apr-June 2024 | Jan-June 2025 | Jan-June 2024 | Full year2024 | |
| Order intake, MSEK | 26.8 | 37.3 | 57.7 | 93.4 | 228.5 |
| Order backlog, MSEK | 84.6 | 83.4 | 84.6 | 83.4 | 117.5 |
| Net sales, MSEK | 49.5 | 44.3 | 88.5 | 82.5 | 184.9 |
| Capitalized development expenditure, MSEK | 2.3 | 4.1 | 5.6 | 7.3 | 14.9 |
| Gross margin, % | 63 | 67 | 67 | 68 | 68 |
| EBITDA, MSEK | 2.7 | 4.1 | 5.5 | 8.5 | 26.8 |
| EBITDA margin, % | 5.2 | 8.5 | 5.8 | 9.5 | 13.4 |
| Operating profit (EBIT), MSEK | -3.6 | -0.5 | -6.1 | -0.4 | 8.8 |
| Profit after tax, MSEK | -3.5 | -0.3 | -6.0 | -0.4 | 8.6 |
| Cash flow from operating activities, MSEK | -9.6 | 12.9 | 6.5 | 21.5 | 39.2 |
| Solidity, % | 57 | 59 | 57 | 59 | 55 |
| Average number of employees | 73 | 70 | 74 | 69 | 72 |
| Earnings per share | -0.04 | 0.00 | -0.07 | 0.00 | 0.10 |
CEO comments
ontinued stability in both business units
During the second quarter, which was characterized by ongoing market challenges, we continued to deliver effective solutions to our customers while focusing on strengthening our presence in priority markets. Net sales increased to MSEK 49.5 (44.3) As a result of more cautious investment processes, order intake declined to MSEK 26.8 (37.3), while the current market situation with reduced order intake means that we are now supplementing our offering in order to focus on products and customer needs with short sales cycles. We have a healthy order backlog of MSEK 84.6 (83.4).
Gross margin amounted to 63 percent (68), while EBITDA amounted to MSEK 2.7 (4.1). The operating profit continued to be impacted by the ongoing transition to a subscription-based business model for Motion Analysis and by the product mix in RemaSawco's deliveries. In addition, we have lower capitalized development expenses in favor of generic development, including those in AI.
Challenging market for RemaSawco
RemaSawco delivered continued stable earnings in the second quarter with increased net sales of MSEK 42.4 (37.8) and an EBITDA margin of 15.7 percent (18.6). The reduction in margin is explained by the product mix, which during this quarter included a large share of hardware.
We are now intensifying our market presence, with increased focus on service offerings, upgrade projects, and customer-oriented solutions that support both short-term sales and long-term relationships.
The wood products market has continued to show weak growth, with limited construction activity in both Europe and the US. Prices for raw materials have continued to rise and uncertainty surrounding tariffs remains. As a result, the optimism noted earlier this year has diminished, leading to restraint in investment decisions. However, we stand by our assessment that sawmills will continue to prioritize investments in streamlining and optimizing their production processes.
Motion Analysis well equipped
Caution among our customers persisted during the quarter; however, we are seeing clear signs of increased activity as a result of our enhanced marketing efforts. Our key segments, such as the defense and automotive industries, are expected to have a continued growing need for our solutions.
The subscription-based business model has been implemented according to plan to achieve a more even revenue stream over time and generate higher margins. Almost all of the quarter's order intake is subscription-based, and the gradually increasing order backlog amounted to MSEK 33.5 at the end of the quarter, despite negative currency effects on existing agreements.
In parallel, we have continued the transition to direct sales in selected markets by phasing out local distributors in favor of establishing our own sales and service companies, such as in the US and Japan. The aim is to drive growth and achieve higher profitability in the long term through an increased local presence.
During the quarter, we carried out the commercial launch of our new software platform, which has been well received by the market.
Constant initiatives strengthen Group's outlook
The development of the Group is proceeding according to our established plans. While the market situation has impacted order intake, especially in RemaSawco, we see continued strength in our underlying business models and we continue to develop and streamline our operations.
The subscription-based business model within Motion Analysis will continue to affect earnings for a period, fully in line with what we have previously communicated. However, we believe that in the long run, this business model will lead to more stable revenues, higher margins and thus greater financial predictability over time.
Within RemaSawco, the focus is on strengthening market presence by, among other things, adapting our product offering to customers' current needs and shorter sales cycles.
We are making a major effort to integrate AI into our operations. Generative AI enables us to increase product capacity and develop new functionality, while also creating good opportunities to streamline both of our operations further.
THE GROUP'S DEVELOPMENT IN THE SECOND QUARTER
Order intake, net sales and profit
Order intake amounted to MSEK 26.8 (37.3). Order backlog as of June 30, 2025, amounted to MSEK 84.6 (83.4).
Net sales amounted to MSEK 49.5 (44.3). Capitalized development expenditure amounted to MSEK 2.3 (4.1) and relates to both business units.
Gross margin amounted to 63 (67) percent.
EBITDA amounted to MSEK 2.7 (4.1).
Other external charges decreased compared with the corresponding period last year, mainly due to a decrease in external consultancy costs. Personnel costs increased compared to last year's period, which is attributed to an exchange of skills and an increase in the number of employees.
Depreciation/amortization amounted to MSEK -6.3 (-4.6). During the year, we have begun depreciation/amortization of several development projects in connection with commercial launch.
Net financial items amounted to MSEK -0.1 (-0.0).
Result after taxes amounted to MSEK -3.5 (-0.3).
Financial position, investments and cash flow
The Group's investments in non-current assets during the quarter amounted to MSEK 4.2 (7.4) of which MSEK 2.3 (4.1) was related to capitalized development projects. Capitalization of development projects takes place in both business units.
The operational cash flow during the quarter amounted to MSEK -13.8 (5.5). The lower order intake means a lower proportion of advances from customers. Solidity as of June 30, 2025, amounted to
57 (59) percent. Net indebtedness amounted to 0.1 (0.1) times.
Available cash and cash equivalents including the undrawn part of the overdraft facilities amounted to MSEK 22.2 (26.0) as of June 30, 2025.
THE GROUP'S DEVELOPMENT DURING THE INTERIM PERIOD
Order intake amounted to MSEK 57.7 (93.4). Order backlog as of June 30, 2025, amounted to MSEK 84.6 (83.4).
Net sales amounted to MSEK 88.5 (82.5). Capitalized development expenditure amounted to MSEK 5.6 (7.3) and relates to both business units.
Gross margin amounted to 67 (68) percent.
EBITDA amounted to MSEK 5.5 (8.5). Other external charges decreased, which mainly is attributable to an increase in capitalized external consultancy costs related to the RemaSawco business unit's product development. Personnel costs increased as a result of the expansion of our own operations in North America.
Depreciation/amortization amounted to MSEK -11.6 (-8.9). During the year, we have begun depreciation/amortization of several development projects in connection with commercial launch. Net financial items amounted to MSEK -0.2 (-0.3).
Result after taxes amounted to MSEK -6.0 (-0.4).
ROLLING 12-MONTH ORDER INTAKE, REVENUE AND EBITDA
The Group's rolling 12-month EBITDA margin during the second quarter amounted to just over
11.7 percent. The Group's long-term EBITDA target of delivering a stable 15 percent EBITDA margin requires growth in net sales. The pace of the ongoing change in the Motion Analysis business unit, to a higher proportion of subscription and support agreements, may also affect how quickly the long-term goal is achieved. The changed business model will eventually translate into growth in both net sales and EBITDA results.
BUSINESS AREA: REMASAWCO
RemaSawco provides solutions to optimize production in the sa wmill industry. The product portfolio includes proprietary software that, with the help of laser, 3D scanning, X-ray, and automation, measures and analyzes timber and boards throughout the sawmill process to maximize value exchange, minimize waste, and thus increase customer profitability.
Performance during the period
Order intake remained weak during the second quarter and amounted to MSEK 16.2 (26.8). However, following a period of lower market activity in the past six months, we are seeing signs of increased customer interest, which is reflected in a gradually stronger sales funnel. We are currently intensifying our marketing efforts, with an increased focus on strengthening our presence among both existing and new customers. Particularly, we are investing in our SLA service offering, upgrade packages and smaller projects that can contribute to business in the short term, while also creating opportunities for larger deliveries in the future. Net sales increased to MSEK 42.4 (37.8), while EBITDA decreased slightly to MSEK 6.8 (7.4) and the margin fell to 15.7% (18.6), partly due to a hardware-heavy product mix during the period.
| Apr-June 2025 | Apr-June 2024 | Jan-June 2025 | Jan-June 2024 | Full year 2024 | |
| Order intake, MSEK | 16.2 | 26.8 | 38.4 | 70.0 | 165.9 |
| Net sales, MSEK | 42.4 | 37.8 | 70.7 | 64.8 | 146.8 |
| Capitalized development expenditure, MSEK | 0.8 | 1.9 | 2.0 | 3.2 | 6.9 |
| EBITDA, MSEK | 6.8 | 7.4 | 11.4 | 9.0 | 28.0 |
| EBITDA margin, % | 15.7 | 18.6 | 15.7 | 13.2 | 18.2 |
Product development
During the quarter, we have worked on updating existing products and advancing the development our X-ray scanner. Our new log scanner has been put into operation in several customer installations, and we are now planning to launch the new operator interface. The incremental product development for the new measuring station has been successful, and we are now applying the method to more products. We are making ongoing investments in product development, aiming, among other things, to increase the scalability of our products. Additionally, we are further developing key functions for digitalization and optimization of sawmill processes. During the quarter, a working group was appointed to focus on generative AI.
By integrating AI support into our product development, we create the conditions for adding new functionality and launching new products at a pace that was previously impossible. This initiative is part of our long-term strategy to remain at the forefront of technology and meet our customers' needs with both precision and speed.
BUSINESS AREA: MOTION ANALYSIS
Motion Analysis Systems offers its customers software for the analysis of high-speed film, a niche where the Company is the world leader. The software is sold under the product names TEMA and TrackEye?.
Performance during the period
The caution we saw in the market during the first quarter has persisted, and it is taking longer to execute deals. However, the market eased somewhat during the quarter and we note an order intake in line with the previous year at MSEK 10.6 (10.5). The need for our products is expected to grow in both the defense and automotive segments in the coming years. The order intake mainly consists of subscription licenses, which often initially span 36 months and are then automatically extended by
12 months at a time. The order backlog attributable to subscription and support services is growing steadily and amounted to MSEK 33.5 (14.3) at the end of the quarter, however, still negatively affected by currency effects. Net sales for the first half of the year amounted to MSEK 17.8 (17.7). The business unit is investing in enhancing market presence and product development and, during the quarter, established a sales and service company in Japan with the aim of generating growth through direct sales. This will generate costs that, after an initial establishment phase, are expected to lead to increased sales revenue.
The new software platform is a cornerstone of the Company's growth strategy, with the ambition to become the global standard in high-speed film analysis. The platform, which was launched commercially during the second quarter, will gradually take over all existing functionality from older products and will be an important engine for growth.
| Apr- June 2025 | Apr- June 2024 | Jan-June 2025 | Jan-June 2024 | Full year 2024 | |
| Order intake, MSEK | 10.6 | 10.5 | 19.3 | 23.4 | 62.6 |
| Order backlog subscription and support services, MSEK | 33.5 | 14.3 | 33.5 | 14.3 | 31.8 |
| Net sales, MSEK | 7.1 | 6.5 | 17.8 | 17.7 | 38.1 |
| Capitalized development expenditure, MSEK | 1.5 | 2.2 | 3.6 | 4.1 | 8.0 |
| EBITDA, MSEK | -1.5 | -1.8 | -2.2 | 2.3 | 5.1 |
| EBITDA margin, % | -17.4 | -20.7 | -10.3 | 10.6 | 11.1 |
Product development
The business unit carried out the commercial release of the new software platform during the second quarter. New features in generative object tracking have been implemented using proprietary AI models. The Company has also implemented support for Python programming, which is estimated to provide significant added value to the existing customer base and facilitate sales to new customers.
OTHER INFORMATION
Parent Company
The Parent Company's revenue for the first quarter amounted to MSEK 1.5 (0.8). Operating profit amounted to MSEK -2.6 (-1.5). Result after taxes amounted to MSEK -2.6 (-1.5). Investments in fixed assets amounted to MSEK 0.0 (0.0). The Parent Company's available liquid funds as of June 30, 2025, amounted to MSEK 0.2 (0.2). The Parent Company's equity as of June 30, 2025, amounted to MSEK 113.6 (105.8) and the solidity was 98 (99) percent.
Significant events after the period
Andreas Ovemyr has been appointed new CEO of the Motion Analysis business unit and will assume his position on September 1.
The RemaSawco business unit has received an order from Holmen Kroksjön for approximately MSEK 1.1.
Personnel
The average number of employees was 73 (70). The number of employees at the end of the period was 78.
Number of shares
The number of shares on June 30, 2025, amounted to 89,207,818.
Accounting policies
Image Systems applies the International Financial Reporting Standards (IFRS) as adopted by the EU. The interim report for the Image Systems Group is prepared in accordance with IAS 34, Interim Financial Reporting, and the Swedish Annual Accounts Act. Disclosure in accordance with IAS 34, Interim Financial Reporting, is provided in notes as well as elsewhere in the interim report.
The interim report for the Parent Company, Image Systems AB, is prepared in accordance with the Swedish Annual Accounts Act as well as the Swedish Financial Reporting Board's recommendations RFR 2 Accounting for Legal Entities.
Image Systems applies the ESMA (European Securities and Markets Authority) Guidelines on Alternative Performance Measures. Definitions of indicators are provided on page 15 and relevant reconciliations on page 14.
Risks and uncertainties
The Group's significant risks and uncertainties include business risks related to agreements with customers and suppliers as well as other external factors such as currency fluctuations. The Group's significant financial and business-related risks are discussed at depth in the management report and under Note 3 in the 2024 Annual Report. No significant new or changed risks or uncertainties have been identified during the quarter.
This interim report has not been reviewed by the Company's auditors.
Financial Calendar
Interim report January-September 2025 October 24, 2025
Year-end report 2025 February 6, 2026
Long-term financial objectives
Image Systems aims to create long-term value growth for its shareholders. To achieve this, the Board of Directors has set long-term financial objectives:
EBITDA >15%
Solidity >50%
Dividend 20% of the profit after taxes
The Board of Directors and the Chief Executive Officer confirm that the interim report provides a true and fair overview of the Parent Company's and the Group's operations, financial position, and performance and describes the material risks and uncertainties facing the Parent Company and the companies included in the Group.
Linköping, Sweden, July 17, 2025
Anders Fransson Jörgen Hermansson Catharina Lagerstam
Chairman of the Board Director Director
Jan Molin Matilda Wernhoff Emilien Saindon
Director Director Chief Executive Officer
The information in this report is disclosed pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below,
at 08:00 AM on July 17, 2025.
Financial reports are available on the Company's website http://www.imagesystemsgroup.se
Questions will be answered by:
Emilien Saindon, CEO and President
telephone +46(0)13-200 100, e-mail emilien.saindon@imagesystems.se
Image Systems AB, Snickaregatan 40, 582 26 Linköping, Sweden. Corporate registration number 556319-4041
This disclosure contains information that Image Systems AB is obliged to make public pursuant to the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 17-07-2025 08:00 CET.
