Detection Technology Plc company announcement 7 August 2025 at 09:00 (EEST)
DETECTION TECHNOLOGY PLC HALF-YEARLY REPORT JANUARY-JUNE 2025
Detection Technology Q2 2025: Sales declined, yet the company's market position remained solid
April-June 2025 highlights
- Net sales decreased by -6.6% to EUR 24.4 million (26.1)
- Net sales of Americas decreased by -5.2% to EUR 1.5 million (1.6)
- Net sales of APAC (Asia-Pacific) increased by 8.6% to EUR 18.2 million (16.7)
- Net sales of EMEIA (Europe, Middle East, India and Africa) decreased by -39.6% to EUR 4.7 million (7.8)
- Net sales of industrial applications increased by 4.2% to EUR 5.6 million (5.3)
- Net sales of medical applications increased by 13.9% to EUR 10.6 million (9.3)
- Net sales of security applications decreased by -28.2% to EUR 8.2 million (11.5)
- Operating profit (EBITA) was EUR 1.7 million (3.3)
- Operating margin (EBITA-%) was 7.0% of net sales (12.7%)
- Return on investment (ROI, 12-month rolling) was 14.7% (13.9%)
January-June 2025 highlights
- Net sales decreased by -4.5% to EUR 46.6 million (48.8)
- Net sales of Americas decreased by -4.8% to EUR 2.4 million (2.5)
- Net sales of APAC increased by 5.5% to EUR 34.2 million (32.4)
- Net sales of EMEIA decreased by -27.5% to EUR 10.1 million (13.9)
- Net sales of industrial applications increased by 4.2% to EUR 9.3 million (8.9)
- Net sales of medical applications increased by 13.8% to EUR 21.4 million (18.8)
- Net sales of security applications decreased by -24.4% to EUR 15.9 million (21.1)
- Operating profit (EBITA) was EUR 3.1 million (5.6)
- Operating margin (EBITA-%) was 6.7% of net sales (11.4%)
UNAUDITED (Figures in parentheses refer to the corresponding period of the previous year.)
Business outlook
Detection Technology expects a single digit year-on-year net sales decline in Q3 and H2 of 2025.
The geopolitical situation, new U.S. import tariffs, U.S. relations with other countries, China's healthcare reform, and price competition especially in China create uncertainty.
Detection Technology aims to increase its sales by at least 10% per annum and to achieve an operating margin (EBITA) of 15% in the medium term.
President and CEO, Hannu Martola:
"Our Q2 total net sales were a disappointment. Security CT system installations nearly halted in Europe, and EMEIA sales declined sharply. Over half of the sales decline was due to currency fluctuations. However, our position in key markets remained stable. We also maintained strong momentum in flat panel detector sales and strategic execution.
Demand for medical CT applications strengthened, particularly in China, where the backlog from healthcare reforms continued to clear. Sales of our flat panel detector portfolio for industrial applications also developed strongly, growing approximately 40% year-on-year in H1.
In contrast, the dip in demand for security applications was deeper than expected, leading to a sharp decline in EMEIA sales. The halt in security CT system installations in aviation in Europe-partly due to the so-called 100 ml liquid rule-weighed on performance. The strong comparison period also added pressure to the topline. Despite softer-than-expected sales, our market position in security CT remained intact.
Lower-than-expected quarterly sales and a less favorable sales mix eroded our profitability. Our profitability development has been unsatisfactory. To that end, appropriate cost measures are now being taken.
In Q2, we rolled out several notable products. Sales of the X-Panel 43108 flat panel detector, launched for single-scan imaging of large components in the automotive, aerospace, and defense industries, have started off successfully. We also introduced the X-Cargo for high-speed, high-energy cargo and industrial imaging. Supporting scanning speeds up to 70 km/h, the solution is already selling well for border security applications.
The expansion of our operations in India is progressing. The production facility has been completed, and the first products have been tested. We also invested in new technology to support long-term innovations and growth.
We are renewing our strategy for the next five-year period. We will deliver smart X-ray detector solutions that drive customer success through exceptional usability to outgrow the market. We continue to work on the strategy details and execution planning.
Looking ahead, we expect demand in both medical and security CT applications to start normalizing. In China, the recovery in medical demand continues following anti-corruption measures, but the new block purchasing model is intensifying competition. The regulatory bottleneck in European aviation will move away, as testing specifications for CT systems have been approved, and the equipment from a certain OEM has been recertified. We expect the security CT sales to be back on track by the end of the year. Industrial demand, particularly in defense, is increasing. However, visibility remains limited due to the impact of new tariffs, ongoing macroeconomic uncertainty, and constrained availability of certain electronic components.
In Q3, the APAC region indicates strengthening medical demand, but our sales are constrained mainly by component availability and therefore will remain stable. Demand for security applications is picking up slowly, leading to flat sales in EMEIA, while sales in the Americas are expected to decline by double digits. Following an estimated 5% currency impact, we expect year-on-year total net sales to decline by a single digit in Q3 and H2 of 2025."
Key figures
| (EUR 1,000) | 4-6/2025 | 4-6/2024 | 1-6/2025 | 1-6/2024 | 1-12/2024 |
| Net sales | 24,372 | 26,093 | 46,621 | 48,799 | 107,514 |
| Change in net sales, % | -6.6% | 3.5% | -4.5% | 1.7% | 3.6% |
| EBITA | 1,702 | 3,306 | 3,101 | 5,570 | 14,892 |
| EBITA, % | 7.0% | 12.7% | 6.7% | 11.4% | 13.9% |
| R&D costs | 3,146 | 3,049 | 5,781 | 5,560 | 11,379 |
| R&D costs, % of net sales | 12.9% | 11.7% | 12.4% | 11.4% | 10.6% |
| Cash flow from operating activities | 458 | 3,911 | 1,897 | 6,827 | 20,133 |
| Net interest-bearing debt at end of period | -19,794 | -14,744 | -19,794 | -14,744 | -27,767 |
| Investments | 1,144 | 352 | 1,548 | 1,485 | 2,218 |
| Return on investment (ROI), % | 14.7% | 13.9% | 14.7% | 13.9% | 17.4% |
| Gearing, % | -27.2% | -19.9% | -27.2% | -19.9% | -33.6% |
| Earnings per share, EUR | 0.07 | 0.15 | 0.11 | 0.26 | 0.76 |
| Earnings per share (diluted), EUR | 0.07 | 0.15 | 0.11 | 0.26 | 0.76 |
| Number of shares at the end of the period | 14,655,630 | 14,655,930 | 14,655,630 | 14,655,930 | 14,655,930 |
| Weighted average number of shares outstanding | 14,655,630 | 14,655,930 | 14,655,730 | 14,655,930 | 14,655,930 |
| Weighted average number of shares outstanding, diluted | 14,655,630 | 14,661,754 | 14,657,943 | 14,658,842 | 14,660,744 |
Q2 2025 webcast
Hannu Martola, the President and CEO of Detection Technology, will present the Q2 and January-June 2025 financial performance and events to analysts, investors, and media at a webcast. The live webcast in English will begin on 7 August 2025 at 13:00 (EEST).
A link to the webcast is available on the company's website (investors, webcasts). A recording of the webcast will be available later on the same webcasts page.
Join the webcast >
This release is a summary of Detection Technology's half-yearly report January-June 2025. The complete report can be found attached to the release and on the company's website.
Board of Directors, Detection Technology Plc
Further information
President and CEO Hannu Martola will be available for interviews and further information on the release date at 9:00-11:00 (EEST).
Hannu Martola, President and CEO
+358 500 449 475, hannu.martola@deetee.com
Nordea is the company's Certified Advisor under the Nasdaq First North GM rules, +358 9 5300 6774
Detection Technology is a global provider of X-ray detector solutions and services for medical, security, and industrial applications. The company's solutions range from sensor components to optimized detector subsystems with ASICs, electronics, mechanics, software, and algorithms. It has sites in Finland, China, France, India, and the US. The company's shares are listed on Nasdaq First North Growth Market Finland under the ticker symbol DETEC.
Distribution: Nasdaq Helsinki, key media, www.deetee.com
