Tempest Security: Transformative year, time to look ahead - ABG

Organic sales growth of 11% y-o-y in Q4
Security Solutions grows despite loss of major contract
Profitability a focus area for 2025


Q4: Still suffers from additional costs for new contracts

Tempest delivered a strong Q4 in terms of sales, with 11% organic growth y-o-y (adj. for the divestment in the US), while total sales growth was 3% y-o-y. This was 1% ahead of ABGSCe, driven by higher sales in Risk Solutions. Profitability proved more challenging, with Security Solutions still impacted by startup costs tied to the large contracts that replaced the Scania agreement. The expectation is that these costs will gradually subside, allowing Tempest to improve profitability over time through an increasing share of add-on sales. Risk Solutions remained loss-making following the restructuring in Denmark and weak demand in the Swedish operations. Overall, adjusted EBIT was SEK -10.3m (vs. 0.6m last year), compared to our forecast of -4m.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/tempest-security/Equity-research/2025/3/tempest-security---transformative-year-time-to-look-ahead/