I.A.R. Systems Group AB (publ) Interim Report January - June 2025

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.