What is the outlook for operating margins and how does it compare to the prior quarter?

Operating‑margin outlook for Q2 2025 (April‑June)

What the numbers tell us

1. Operating margin has halved – The Q2 operating margin of roughly 12 % is a steep decline from the ≈ 25 % margin recorded in the prior quarter.
   
2. Profitability compression – Operating profit fell by ≈ 55 % (from SEK 79.3 M to SEK 36.4 M) while net sales slipped only modestly (≈ 4 %). The disproportionate drop in profit versus revenue is the main driver of the lower margin.
   
3. Order‑intake weakness – Order intake dropped from SEK 290.3 M to SEK 241.2 M (≈ 17 % lower), indicating a weaker pipeline that will likely keep sales and cost‑recovery pressure in place for the remainder of the year.
   

Outlook for operating margins

• Short‑term (rest of 2025) – Given the current Q2 results, RaySearch is expected to maintain an operating margin in the low‑teens percent range unless it can reverse the downward trend in order intake or achieve significant cost‑efficiency gains.
  
• Compared with the prior quarter – The margin is substantially below the prior‑quarter level (about 12 % vs 25 %). The company will need to improve top‑line growth or cut operating expenses to bring the margin back toward the prior‑quarter benchmark.
  
• Key drivers that could influence the margin outlook
  
  • Revenue growth – A stronger order intake and higher net‑sales growth would lift the denominator and could offset some cost pressure.
    
  • Cost structure – Fixed‑cost discipline, reductions in SG&A or R&D spend, or better utilization of capacity could improve the numerator.
    
  • Pricing and mix – Higher‑value product mix or price adjustments can also help raise the operating‑profit ratio.
    

Bottom line

• Operating margin for Q2 2025 is projected at roughly 12 %, a sharp contraction from the ~25 % margin recorded in the previous quarter.
  
• The outlook suggests continued margin compression unless the company reverses the order‑intake decline or implements decisive cost‑efficiency measures.
  

All calculations are based on the figures disclosed in the interim report (net sales and operating profit) and are rounded to the nearest tenth of a percent.