Increased demand for subscription offering in currency headwinds
Second quarter 2025
• Net sales were SEK 109.4m (123.2), with growth of -11.2%, or -4.5% in local currency.
• EBITDA of SEK 17.3m (40.7), corresponding to an EBITDA margin of 15.8% (33.0).
• Adjusted EBITDA of SEK 25.5m (43.2), corresponding to an adjusted EBITDA margin of 23.3% (35.1).
• Operating profit of SEK 4.6m (27.3), corresponding to an operating margin of 4.2% (22.2).
• Adjusted operating profit of SEK 12.7m (29.8), corresponding to an adjusted operating margin of 11.7% (24.2).
• Capitalized work on own account amounted to SEK 9.9m (10.8).
• In a year-on-year comparison, currency translation had a negative impact of SEK 8.3m on net sales and a negative impact of SEK 6.3m on operating profit for the period, based on income and costs in local subsidiaries.
• Cash flow from operating activities amounted to SEK 41.9m (35.7).
January - June 2025
• Net sales were SEK 233.5m (243.0), with growth of -3.9% and -0.8% in local currency.
• EBITDA of SEK 55.9m (87.7), corresponding to an EBITDA margin of 23.9% (36.1).
• Adjusted EBITDA of SEK 67.2m (92.3), corresponding to an adjusted EBITDA margin of 28.8% (38.0).
• Operating profit of SEK 30.1m (59.5), corresponding to an operating margin of 12.9% (24.5).
• Adjusted operating profit of SEK 41.4m (64.1), corresponding to an adjusted operating margin of 17.7% (26.4).
• Capitalized work on own account amounted to SEK 22.7m (21.1).
• In a year-on-year comparison, currency translation had a negative impact of SEK 7.5m on net sales and a negative impact of SEK 6.4m on operating profit for the period, based on income and costs in local subsidiaries.
• Cash flow from operating activities amounted to SEK 65.6m (68.4).
Second quarter in brief
• Full launch of our modernized cloud-based product portfolio
• Cancelation of 600,000 class B treasury shares
Key events after the second quarter
- The Finnish software company Qt made an offer for IAR of SEK 180 per share.
Contacts IR
Hanna Laurentz, Head of Corporate Communications, IAR
Tel: +46 735 12 51 37; E-mail: investorrelations@iar.com?
About IAR
At IAR, we provide world-leading software and services for embedded development, empowering companies globally to bring secure products that shape the future. Since its founding in 1983, our solutions have been instrumental in ensuring quality, security, reliability, and efficiency in the development of over one million embedded applications for a wide range of industries, including Automotive, Industrial Automation, IoT, MedTech, and Safety sectors. With support for 15,000 devices from over 70 semiconductor partners, we are dedicated to fostering innovation and enabling our customers' success.
The company is headquartered in Uppsala, Sweden, with a global presence of sales and support offices strategically located across the world. IAR is an I.A.R. Systems Group AB subsidiary, listed on NASDAQ OMX Stockholm, Mid Cap (ticker symbol: IAR B). To learn more, visit us at www.iar.com.
This information is information that IAR Systems Group is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-08-14 13:00 CEST.
