Record-Strong Year-End Performance
October-December 2025
- Net sales increased during the quarter by 7,5 % to 143,7 MSEK (133,7). The organic and currency adjusted growth amounted to -0,7 %.
- Adjusted EBITDA increased during the quarter by 51,3 % to 40,8 MSEK (27,0) corresponding to an adjusted EBITDA margin of 28,4 % (20,2).
- Operating profit/loss was 22,4 MSEK (16,2), corresponding to an operating margin of 15,6 % (12,2).
- Profit/loss for the quarter was 15,4 MSEK (14,1).
- Result per share basic and diluted was 1,05 SEK (0,96).
- Cash flow from operating activities for the period was 15,8 MSEK (11,0).
January-December 2025
- Net sales increased during the year by 14,9 % to 483,3 MSEK (420,4). The currency adjusted growth amounted to -3,4 %.
- Adjusted EBITDA increased during the year by 63,7 % to 79,0 MSEK (48,3), corresponding to an adjusted EBITDA margin of 16,4 % (11,5).
- Operating profit/loss was 30,7 MSEK (10,3) which corresponds to an operating margin of 6,4 % (2,5).
- Profit/loss for the period was 22,5 MSEK (4,7).
- Result per share, basic and diluted was 1,54 SEK (0,32).
- Cash flow from operating activities for the period was 58,7 MSEK (58,6).
- The board does not propose dividends for 2025.
| Amounts in TSEK | 2025 Oct-Dec | 2024 Oct-Dec | 2025 Full Year | 2024 Full Year |
| Net sales | 143 696 | 133 727 | 483 292 | 420 445 |
| Net sales growth, % | 7,5 | 6,8 | 14,9 | 3,9 |
| Gross margin, % | 72,6 | 70,0 | 69,8 | 68,3 |
| Adjusted gross margin, % | 72,6 | 70,0 | 69,8 | 68,9 |
| Adjusted EBITDA | 40 776 | 26 957 | 79 050 | 48 300 |
| Adjusted EBITDA margin, % | 28,4 | 20,2 | 16,4 | 11,5 |
| EBITDA | 40 776 | 24 351 | 74 890 | 42 930 |
| EBITDA margin, % | 28,4 | 18,2 | 15,5 | 10,2 |
| Equity ratio, % | - | - | 55,3 | 51,4 |
| Cash flow from operating activities, MSEK | 15,8 | 11,0 | 58,7 | 58,6 |
| Net debt/EBITDA, R12M | - | - | 0,9 | 2,4 |
| Number of employees at end of period | - | - | 151 | 168 |
Comments by the CEO
The final quarter of 2025 is the strongest single quarter for the TagMaster Group to date and demonstrates that our strategy of pursuing a combination of organic and acquired growth is successful. With growth of 7.5 percent compared with the strong fourth quarter of 2024, we delivered record revenue of SEK 143.7 million and profitability of 28.4 percent in adjusted EBITDA margin, corresponding to an adjusted EBITDA result of SEK 40.8 million. This is a very strong performance given that the market in which we operate remained cautious during the quarter. For the full year 2025, total revenue amounted to SEK 483.3 million, with an adjusted EBITDA result of SEK 79.1 million.
Demand for our solutions depends on long-term investment decisions and is therefore largely affected by the uncertainty in the global economy, which also characterized the fourth quarter. A contributing factor to our increased revenue and record-strong profitability despite this is that we have significantly strengthened our offering in parking and access digitalization, while also increasing the share of our sales to corporate customers (B2B). This complements the rest of our business, which is predominantly directed toward the public sector (B2G), thereby making us somewhat less sensitive to uncertainties that cause delays in government decision-making. This is largely the result of our recent acquisition of the Spanish company Quercus Technologies, which was completed during the fourth quarter of 2024. This positions us as a stable and profitable growth company.
Other parts of the business are also performing strongly, including our French subsidiary Citilog, which continues to successfully market and sell its upgraded Automatic Incident Detection (AID) system to both new and existing customers. During the quarter, we announced a major order of just under SEK 9 million for the North East Link tunnel project in Melbourne, Australia. Our AID products consist primarily of software deliveries, which has had a positive impact on both gross margin and EBITDA.
Our development of new applications and other technological advances continues within relevant technologies for Intelligent Transport Systems (ITS), positioning us well to meet the growing demand for multi-sensor solutions. With a total of 50 development engineers, approximately 30 of whom are focused on the further development of AI-based video solutions, we are developing solutions that are at the forefront of the industry. During the fourth quarter, investment in product development amounted to approximately 14 percent of the Group's total revenue.
Total sales in the fourth quarter amounted to SEK 143.7 million, representing an increase of 7.5 percent compared with the same period in 2024. This is the highest revenue recorded for a single quarter to date. Organic revenue change for the quarter, adjusted for currency effects and acquisitions, amounted to negative SEK 0.9 million, corresponding to a decrease of 0.7 percent. The Group's total expenses decreased by approximately SEK 7 million compared with the same period last year, explained by a Group-wide efficiency program implemented earlier in the year, resulting in annual cost savings of just over SEK 12 million.
The Group's gross margin for the quarter amounted to 72.6 percent (70.0), with an adjusted EBITDA result of SEK 40.8 million, corresponding to an adjusted EBITDA margin of 28.4 percent. The gross margin was positively impacted by a favourable product mix, with a higher share of high-margin products such as software solutions. Cash flow from operating activities amounted to SEK 15.8 million, and the Group's solvency ratio was 55.3 percent at the end of the period. Efforts to reduce working capital remain a priority. Sequentially, inventory for comparable units decreased by approximately 16 percent, and compared with the corresponding quarter of the previous year, inventory declined by just under 11 percent.
Sales from the Traffic Solutions business in the fourth quarter amounted to SEK 123.3 million, representing an increase of approximately 11 percent compared with the corresponding quarter in 2024. During the quarter, Traffic Solutions accounted for 86 percent of total sales, while Rail Solutions accounted for 14 percent.
For the full year 2025, sales amounted to SEK 483.3 million, with an adjusted EBITDA result of SEK 79.1 million, corresponding to an adjusted EBITDA margin of 16.4 percent. The Group's gross margin for the full year amounted to 69.8 percent, compared with 68.9 percent in 2024.
Overall, we are very satisfied with 2025, particularly given that the market in which we operate has been cautious, with long and slow decision-making processes. I can also conclude that TagMaster is well positioned to contribute solutions to some of the major challenges facing the world's transport systems, such as traffic congestion in densely populated areas, improved safety, and reduced traffic-related emissions. As a result, demand for our solutions is increasing, and we remain firmly committed to further strengthening TagMaster's position, despite the uncertainty surrounding tariffs, geopolitics, and regulatory frameworks, which has contributed to a cautious market environment.
Jonas Svensson, CEO
Auditor's review
This report has not been reviewed by the company auditor.
Financial calendar
March 27, 2026: Annual Report 2025 available on web site
April 24, 2026: Interim report first quarter 2026
April 27, 2026: Annual general meeting, Kista
July 17, 2026: Interim report second quarter 2026
October 28, 2026: Interim report third quarter 2026
February 4, 2027: Earnings release 2026
For further information contact:
Jonas Svensson, CEO, +46 8-6321950, Jonas.svensson@tagmaster.com
About Us
TagMaster is an application oriented technical company developing and selling advanced sensor systems and solutions based on radio, radar, magnetic and camera technologies for demanding environments. TagMaster works in two segments - Segment Europe and Segment USA - with the trademarks TagMaster, Citilog, Quercus and Sensys Networks - with innovative mobility solutions for increased efficiency, security, safety, comfort and to reduce environmental impact in Smart Cities. TagMaster has subsidiaries in England, France, Spain and US and exports mostly to Europe, North America, The Middle East and Asia through a global network of partners and system integrators. TagMaster was founded in 1994 and has its head office in Stockholm. TagMaster is a listed company and the share is traded at Nasdaq First North Premier Growth Market in Stockholm. TagMasters certified adviser (CA) is FNCA. www.tagmaster.com
This information is information that TagMaster 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 2026-02-05 08:00 CET.
