Avtech Sweden

* ARR = Net sales from the last month of the quarter × 12
** Rule of 40 = Sales growth % Y/Y + Operating margin % for the quarter

• Net sales for the third quarter increased by 42.0% compared to the same period in 2024, primarily driven by the implementation of new customer agreements. This is our highest quarterly revenue to date, despite an unfavorable USD/SEK exchange rate.
• ARR increased to 48.9 MSEK, up 43% compared to Q3 2024, strengthening our recurring revenue base.
• Net earnings increased by 96.6% compared to the same period in 2024 even after a negative impact from recognized customer losses amounting to SEK 0.3 million related to the airline Play’s bankruptcy.
• Cash flow improved by 45.4% compared to the same period in 2024, primarily due to delayed customer payments from previous quarters now largely being settled. The remaining overdue accounts receivable are expected to be cleared after the end of the period.

EVENTS DURING THE PERIOD

Wizz Air expands Aventus and SIGMA service agreements to the entire group
On August 6 it was announced that following a successful evaluation of AVTECH's Aventus and SIGMA services, Wizz Air has now chosen to expand the existing 3-year agreement for Wizz Air UK to the rest of the Wizz Air Group. This means that Wizz Air Hungary Ltd and Wizz Air Malta Ltd are now also covered by the agreement. The expected annual value is in the range of 4.2 to 5.8 MSEK depending on the fleet size and the EUR exchange rate. AVTECHs in-flight services are based on the latest high-resolution aviation weather forecasting from the UK Met Office. Aventus delivers precise and tailored wind and temperature information to the cockpit in-flight, while SIGMA provides automatic notifications about turbulence and other weather hazards along the flight path. This leads to improved flight efficiency, punctuality, and passenger comfort on Wizz Air UK flights.

Diarmuid Ó Conghaile, Chief Operations Officer at Wizz Air, says: “Wizz Air is proud to be the first adopter of these system, well ahead of our main competitors. This functionality operates behind the scenes, but the benefits are noticeable for passengers on board. Our customers will experience quieter, smoother flights with less turbulence, especially during climb and descent. This development fits perfectly with the airline’s Customer First Compass initiative. By combining the latest advances in weather forecasting and flight planning, Wizz Air is giving its 2,700 pilots the latest generation in in-flight tools to serve our more than 75 million annual passengers with a better flying experience.”

David Rytter, CEO at AVTECH, says: “We are pleased to expand our service delivery to Wizz Air following a comprehensive product evaluation process. AVTECHs in-flight services are powered by the latest high-resolution aviation weather forecasts from the UK Met Office. The Aventus and SIGMA service combination delivers accurate and tailored wind and temperature information to the cockpit during flight, along with automatic and precise alerts for turbulence and other weather hazards along the flight path. We look forward to a strong collaboration with Wizz Air, aimed at enhancing flight efficiency, punctuality, and passenger comfort across their operations.”