In a statement commenting on these latest financials, Svensson said, "I am pleased to report another quarter of solid profitability, with an adjusted EBITDA margin of 17.6 per-cent and strong cash flow. Particularly encouraging is that we increased our gross margin to just under 72 percent in the third quarter, despite rising component costs. This once again demonstrates that our business model enables us to maintain solid profitability even in a market environment that remains challenging in some areas due to geopolitical uncertainty."

According to Svensson, the quarter’s performance was strong given the volatility in the market, as demand for Tagmaster solutions depends on long-term investment decisions. "The market in which we operate is affected by unpredictable developments in the global economy and disruptions to supply chains. We achieved revenue of SEK 111.1 million, representing a decrease of 1.1 percent in absolute terms compared with the third quarter of 2025, but an increase of 0.6 percent when adjusted for currency effects and acquisitions.

The slightly lower revenue was offset by an improved gross margin, which reached 71.9 (69.6) percent at Group level, with adjusted EBITDA of SEK 19.5 million, corresponding to an adjusted EBITDA margin of 17.6 percent. Cash flow from operating activities amounted to SEK 30.9 million, and the Group’s equity ratio stood at 62.6 percent at the end of the period."

US operations a major contributing factor

A major contributing factor to this solid profitability despite challenging external conditions was the strong performance of the company's US operations during the quarter. In addition, continued efforts to strengthen the offering in parking and access digitalisation, which is primarily aimed at business customers (B2B), have also made a positive contribution.  Svensson believes that this complements the rest of the business, which predominantly serves the public sector (B2G), making the company more resilient in relation to uncertainties that slow down decision-making by public authorities.

Efforts to reduce working capital remain a key priority. On a sequential basis, inventory levels for comparable units increased by approximately 1 percent, while they decreased by just over 14 percent compared with the corresponding quarter of the previous year.

Revenue from Traffic Solutions amounted to SEK 96.9 million in the third quarter, in line with the corresponding quarter of 2025. During the quarter, Traffic Solutions accounted for 87 percent of total sales, while Rail Solutions accounted for 13 percent.

"We continue to see rising input costs, particularly for semiconductors and printed circuit boards, partly driven by increased demand resulting from investments in AI, as well as reduced petrochemical production due to unrest in the Strait of Hormuz. We therefore aim to offset these cost increases through close cooperation with customers and suppli-ers, product substitution and further efficiency measures," adds Svensson.

AI First strategy

During the quarter, Tagmaster continued to invest in product development to further strengthen the competitiveness of its offering, with a particular focus on software, AI and data-driven solutions. "Our clearly defined AI First strategy is fully integrated across the organisation and underpins our development activities, internal processes and marketing. With a strong development team and leading expertise in AI, image analysis and sensor technologies, we are well positioned to develop new applications and meet the growing demand for multi-sensor solutions."

Confident for the future

"Looking ahead, I can confidently say that Tagmaster is well positioned to help address some of the major challenges facing transport systems worldwide, including traffic congestion in densely populated areas, improving road safety and reducing traffic-related emissions. These challenges are driving increased demand for our solutions, and we remain firmly committed to further strengthening Tagmaster’s position, despite the uncertainty surrounding tariffs, geopolitics and the economy, which has contributed to a cautious approach in the market," concludes Jonas Svensson.