Financial statements review January—December 2025

Q4 Financial statements review

January-December 2025

‌DETECTION TECHNOLOGY PLC FINANCIAL STATEMENTS REVIEW JANUARY-DECEMBER 2025

• Net sales decreased by -6.1% to EUR 29.7 million (31.6)

• Net sales of Americas increased by 1.8% to EUR 2.2 million (2.1)

• Net sales of APAC (Asia-Pacific) decreased by -4.4% to EUR 19.6 million (20.5)

• Net sales of EMEIA (Europe, Middle East, India and Africa) decreased by -11.8% to EUR 7.9 million (9.0)

• Net sales of industrial applications decreased by -6.6% to EUR 4.8 million (5.2)

• Net sales of medical applications increased by 19.1% to EUR 14.9 million (12.5)

• Net sales of security applications decreased by -28.5% to EUR 10.0 million (13.9)

• Operating profit (EBITA) was EUR 3.7 million (5.2)

• Operating margin (EBITA-%) was 12.4% of net sales (16.3%)

• Earnings per share were EUR 0.22 (0.28)

• Earnings per share (diluted) were EUR 0.22 (0.28)

• Return on investment (ROI, 12-month rolling) was 9.2% (17.4%)

  ‌January-December 2025 highlights

• Net sales decreased by -6.0% to EUR 101.0 million (107.5)

• Net sales of Americas decreased by -21.8% to EUR 5.2 million (6.6)

• Net sales of APAC decreased by -0.2% to EUR 70.4 million (70.5)

• Net sales of EMEIA decreased by -16.2% to EUR 25.5 million (30.4)

• Net sales of industrial applications decreased by -2.2% to EUR 18.6 million (19.0)

• Net sales of medical applications increased by 10.6% to EUR 46.7 million (42.2)

• Net sales of security applications decreased by -22.8% to EUR 35.7 million (46.3)

• Operating profit (EBITA) excluding NRI was EUR 9.6 million (14.9)

• Operating margin (EBITA-%) excluding NRI was 9.5% of net sales (13.9%)

• Operating profit (EBITA) was EUR 9.3 million (14.9)

• Operating margin (EBITA-%) was 9.2% of net sales (13.9%)

• Earnings per share were EUR 0.44 (0.76)

• Earnings per share (diluted) were EUR 0.44 (0.76)

• Dividend EUR 0.30 per share* (0.50)

(Figures in parentheses refer to the corresponding period of the previous year.) (*The Board of Directors' proposal to the AGM.)

Detection Technology expects double-digit year-on-year net sales growth in Q1 and H1 of 2026.

The geopolitical situation, new U.S. import tariffs, U.S. relations with other countries, material shortages, and price competition especially in China create uncertainty.

Detection Technology aims to increase its sales by at least 10% per annum and to achieve an operating margin (EBITA) of 15% in the medium term.

"Q4 was stable. Sales in medical applications developed well but were not sufficient to drive overall company growth. Sales in security applications declined, but our total net sales, measured at comparable exchange rates, remained flat. Encouragingly, our outlook strengthened, we executed significant product launches, and sales of security applications are increasing. We are well positioned for 2026 and the new strategic period.

Sales in medical applications grew at a double-digit rate, driven by China, while sales in security applications declined across all our main markets due to various one-off events. In the EMEIA region, the decline is explained by a strong comparison period, the after-effects of the aviation 100 ml regulation, our OEM customer's inventory buffer, and a temporary standstill in demand in India despite a recovering market. In contrast, demand in the APAC region remained subdued. Sales for line-scan solutions in industrial applications also remained modest, while sales for TFT flat panel detectors for battery inspection strengthened in the APAC region, where a transition was made to more efficient and more accurate 3D imaging systems. Demand for industrial applications in other regions, in turn, increased, supported by the food industry.

Fiscal 2025 was volatile. Performance was particularly impacted by exchange rate fluctuations, prolonged regulatory approval processes for aviation computed tomography (CT) systems, and the renewal of our customers' product portfolios. On the positive side, the regulatory bottleneck that had slowed aviation CT installations in Europe was resolved, and inventory buffers were unwound. The indirect effects of China's healthcare reform subsided, and demand strengthened. Particularly encouraging and significant for our competitiveness was the 60% annual growth in TFT sales, driven by industrial applications-especially the battery industry-in China. This product portfolio will also drive future growth in medical and defense applications. We have now established a comprehensive product and service portfolio across all digital X-ray detector applications, enabling more stable and predictable growth in the future.

In Q4, our profitability fell short of our target due to weak sales, and a product mix weighted toward medical solutions. In addition, the end of the lifecycle of an analog product family contributed to weaker results.

In November, we launched the DT2030 strategy. Our objective is to outgrow the X-ray detector market by providing data-generating hardware-software solutions that deliver greater customer value and exceptional usability. During the review period, we made product launches supporting this strategy, where algorithms enable both cost savings and improved data management.

We are delighted and proud to have been named GE HealthCare's Supplier of the Year 2025 among several thousand companies. This recognition reflects our position as a long-term, strategic, and trusted partner that holistically supports our customers' business and advances people's health. Other significant achievements were receiving the EcoVadis rating and Bronze Medal in our very first assessment, and the commissioning of our new India factory and the first customer deliveries from the facility.

Our outlook is good. We expect sales to grow across all main applications and all geographical regions in Q1, and we estimate total net sales to grow at a double-digit rate both in Q1 and in the first half of 2026."

In Q4 of 2025, Detection Technology's total net sales decreased by -6.1% (0.9%) and were EUR 29.7 (31.6) million. Medical sales developed strongly but were not sufficient to offset the decline in security applications sales.

Medical sales grew at a double-digit rate, supported by the Chinese market, while sales of security applications declined across all key market areas due to various one-off events. In the EMEIA region, demand remained at a good level, and the decline in sales was mainly attributable to a strong comparison period and the inventory position of an OEM customer. In contrast, market demand for security applications in the APAC region was subdued. Within industrial applications, sales for line-scan solutions remained modest, whereas sales for flat panel detectors for battery inspection strengthened in the APAC region. The increasing adoption of artificial intelligence in the region is accelerating the transition toward higher-performance and more accurate 3D solutions. TFT sales increased year-on-year by around 50%. In other geographic markets, demand for industrial applications was supported by the food industry. In the Americas, sales were in line with the comparison period.

The APAC business unit's net sales declined by -4.4% (0.6%) and were EUR 19.6 (20.5) million. The EMEIA business unit's net sales declined by -11.8% (55.6%) and were EUR 7.9 (9.0) million. The Americas business unit's net sales increased by 1.8% (-58.9%) and were EUR 2.2 (2.1) million. APAC accounted for 66.1% (64.9%) of the company's total net sales, EMEIA for 26.7% (28.4%) and the Americas for 7.2% (6.7%).

Net sales from medical applications increased by 19.1% (-4.6%) and were EUR 14.9 (12.5) million. Net sales from security applications decreased by -28.5% (5.3%) and were EUR 10.0 (13.9) million. Net sales from industrial applications declined by -6.6% (4.2%) and were EUR 4.8 (5.2) million. Medical applications accounted

for 50.2% (39.6%) of total net sales, security applications for 33.6% (44.1%) and industrial applications for 16.3% (16.3%).

The share of the five largest customers in total net sales was 51.2% (53.0%).

In January-December 2025, the company's total net sales decreased by -6.0% (3.6%) and were EUR 101.0 (107.5) million. Net sales of APAC decreased by -0.2% (2.8%) and were EUR 70.4 (70.5) million. Net sales of EMEIA decreased by -16.2% (40.8%) and were EUR 25.5 (30.4) million. Net sales of Americas decreased by -21.8% (-51.5%) and were EUR 5.2 (6.6) million. APAC accounted for 69.7% (65.6%) of total net sales, EMEIA for

25.2% (28.3%) and the Americas for 5.1% (6.1%).

Net sales from medical applications increased by 10.6% (-12.8%) and were EUR 46.7 (42.2) million. Net sales from security applications decreased by -22.8% (17.8%) and were EUR 35.7 (46.3) million. Net sales from industrial applications decreased by -2.2% (18.2%) and were EUR 18.6 (19.0) million. Medical applications accounted for 46.2% (39.2%) of total net sales, security applications 35.4% (43.1%), and industrial applications 18.4% (17.7%).

The share of the five largest customers in total net sales was 51.5% (52.0%).

‌NET SALES BY BUSINESS UNITS

‌NET SALES BY MAIN APPLICATIONS

Detection Technology's operating profit (EBITA) in Q4 2025 amounted to EUR 3.7 (5.2) million, or 12.4% (16.3%) of total net sales. Profitability was adversely affected by lower sales and, in particular, a sales mix weighted toward medical solutions. In addition, the end of the lifecycle of an analog product family resulted in higher costs and further weakened profitability.

Q4 fixed costs were EUR 9.7 (10.3) million, out of which personnel expenses totaled EUR 6.2 (6.3), depreciation and amortization EUR 0.7 (0.8) and other operating expenses EUR 2.8 (3.2) million. Financial items amounted to EUR 0.2 (0.2) million, and income taxes were EUR -0.4 (-1.0) million.

The Q4 result totaled EUR 3.2 (4.1) million. Earnings per share were EUR 0.22 (0.28). Earnings per share (diluted) were EUR 0.22 (0.28).

In the review period January-December 2025, EBITA was EUR 9.3 (14.9) million, or 9.2% (13.9%) of net sales. Non-recurring items (NRI) in the review period were EUR 0.3 (0.0) million. EBITA excluding NRI was EUR 9.6 (14.9) million, or 9.5% (13.9%) of net sales.

In January-December 2025, the company reversed credit loss provisions of EUR 0.2 million. At the end of the review period, the credit loss provisions totaled EUR 1.3 (1.5) million.

In January-December 2025, fixed costs totaled EUR 37.8 (38.7) million, out of which personnel expenses totaled EUR 23.7 (23.9), depreciation and amortization EUR 2.8 (3.2) and other operating expenses EUR 11.2 (11.6) million. Financial items totaled EUR -0.7 (-0.4) million, and income taxes were EUR -0.9 (-2.2) million.

The result for the year 2025 was EUR 6.4 (11.1) million. Earnings per share were EUR 0.44 (0.76). Earnings per share (diluted) were EUR 0.44 (0.76).

Cash flow from operations in Q4 was EUR 1.5 (6.9) million. Cash flow from operations in January-December 2025 amounted to EUR 3.9 (20.1) million. In addition to a lower operating profit compared with the previous year, cash flow was affected by an increase in working capital resulting from a temporary build-up of inventories in connection with a supplier change.

Cash flow from financing activities in Q4 2025 was EUR 4.0 (0.0) million. Cash flow from financing activities in January-December 2025 was EUR -3.3 (-9.3) million.

A dividend of EUR 7.3 (3.4) million, resolved at the Annual General Meeting on 27 March 2025, was paid. Use of bank limit amounted to EUR 4.0 (0.0) million.

Net interest-bearing debt totaled EUR -20.5 (-27.8) million at the end of the year. Gearing was -26.1% (-33.6%). Cash and cash equivalents amounted to EUR 25.0 (28.3) million at the end of the year 2025.

The company has secured its liquidity by agreeing with banks on lines of credit totaling EUR 23.2 (24.8) million at the closing rate of the review period. At the end of the review period, the unused line of credit was EUR 18.7 (24.3) million.

The company's working capital increased by EUR 4.3 million during the financial period. Stocks increased by EUR 7.6 million. Current receivables increased by EUR 1.9 million. Short-term payables increased by EUR 5.1 million.

Investments in Q4 2025 totaled to EUR 0.9 (0.5) million. Investments were mainly made in long-term research and development capabilities and the ramp-up of production in India. Investments in January-December 2025 totaled EUR 3.0 (2.2) million.

Q4 research and development (R&D) costs totaled EUR 2.8 (3.1) million, 9.3% of net sales (9.9%). During the review period January-December 2025, R&D expenses were EUR 11.3 (11.4) million, corresponding to 11.2% of net sales (10.6%). All R&D costs are recognized as expenses.

At the end of December 2025, Detection Technology employed 497 people (487). A total of 385 people worked in China, 95 in Finland, 9 in France, 5 in India and 3 in the US. Personnel expenses in Q4 amounted to EUR 6.2 (6.3) million. In the review period January-December 2025, personnel expenses totaled EUR 23.7 (23.9) million.

‌PERSONNEL BY GEOGRAPHY

After the reporting period ended, Detection Technology appointed Michael Smith as Vice President, Sales Americas, effective 2 February 2026. He will report to Hannu Martola, President and CEO of Detection Technology, with responsibility for business development and accelerating growth in the Americas.

Detection Technology's global sales and business responsibilities are divided so that Michael Smith, Vice President of Sales, Americas, will assume responsibility for the Americas. Arve Lukander, President EMEIA (Europe, Middle East, India and Africa), will lead the EMEIA region, and Chen Wu, President APAC (Asia-Pacific), will lead the APAC region. The change has no impact on the company's financial reporting model, and the composition of Detection Technology's management group remains unchanged.

The composition of the management group is as follows: Hannu Martola, President and CEO; Matti Nylander, CFO; Arve Lukander, President, EMEIA Business Unit; Chen Wu, President, APAC Business Unit; Juha Talasmäki, Vice President, Business Development; Sari Holopainen, Vice President, People and Culture; Jyrki Still, CTO; and Kai Utela, Vice President, Operations.

On 17 November 2025, Detection Technology announced a new strategy for 2026-2030. In line with the DT2030 strategy, the company aims to outgrow the global X-ray detector market by increasing added-value and focusing on the fastest-growing imaging applications.

The DT2030 strategy builds on the company's core strengths, and its implementation reinforces the company's position as a global leader in X-ray detector solutions. The company seeks new growth through smart, data-generating, and higher value-added solutions to provide its customers with exceptional usability and service experience.

The DT2030 strategic levers are:

• Relentlessly improve current business and operations, and develop capabilities to strengthen profitability and competitiveness

• Drive the TFT X-ray flat panel detector business across different application areas and new geographical markets

• Commercialize more value-added integrated hardware-software solutions to a broader customer base

• Seek new opportunities beyond the current business scope, including photon counting and software solutions

• Being the most trusted partner that drives customer success through exceptional usability

• Elevate performance culture that promotes development and efficiency

Detection Technology hosted the Capital Markets Day on 18 November 2025. At the event, the outcome of the 2021-2025 strategy and the new DT2030 strategy were introduced in detail, along with its business, market developments, growth opportunities, as well as the technological and production capabilities that strengthen the company's competitiveness. A recording of the event and the presentation are available on the company's website.

In Q4, Detection Technology advanced its business in line with its new strategy. The company focused on strengthening its core business while building capabilities to support future growth and more value-added offerings.

To strengthen its legacy business, Detection Technology launched the AVA line scan product family for security and industrial applications. AVA is designed to deliver high imaging quality in a cost-efficient manner. It is offered as complete subsystems, with performance based on simplified architecture, on-chip algorithms, and the DT API (Application Programming Interface).

As an example of expansion into higher value-added hardware-software solutions and new technologies, Detection Technology's AIDA detector system advanced into customer evaluation. This milestone represents a significant step toward the planned commercial rollout in early 2026. AI-enabled AIDA addresses key challenges of photon-counting CT (PCCT) X-ray systems, such as the efficient management and transmission of large data volumes.

To enhance customer experience, support growth opportunities, and mitigate operational risks, Detection Technology inaugurated a new service and production facility in the greater Delhi area, India, in December. The new site strengthens the company's presence in a dynamic market and improves customer proximity while supporting rapidly scalable production operations.

Detection Technology achieved a major ESG milestone in Q4 by earning the EcoVadis Bronze Medal in its first-ever assessment. With a debut score of 63 points, the company demonstrated above-average performance, highlighting its strong commitment to responsible and sustainable business practices. The Bronze Medal places Detection Technology among the top 35% of companies assessed globally in the past 12 months.

The recognition confirms that Detection Technology has established a solid sustainability management framework and is delivering strong results across key environmental, ethical, and social responsibility areas.

The company will continue its journey towards becoming a more sustainable organization, guided by feedback and committed to reinforcing ESG as a core element of its long-term strategy.

Another significant milestone in Q4 was Detection Technology being named GE HealthCare's 2025 Supplier of the Year. The award recognizes excellence across innovation, quality, service, reliability, agility, sustainability, cost competitiveness, and strategic collaboration. Selected from among several thousand suppliers, Detection Technology stood out for its consistent performance, responsible operating practices, and trusted partnership in supporting the advancement of healthcare through reliable, cutting-edge technology.

Detection Technology's Management System's annual external audits were completed successfully. The company's sites in Espoo, Oulu, Beijing, and Wuxi were audited in accordance with the ISO 9001:2015 and ISO 14001:2015 standards. Additionally, the Wuxi site was audited in compliance with the ISO 13485:2016 standard.

The company continued to systematically monitor employee experience. DT Heartbeat continued as a bi-annual process, consisting of a comprehensive survey in H1 and a shorter pulse survey in H2. The response rate was 72% (79%). The average score slightly decreased compared to the previous survey period to 3.3 (3.4) on a scale of 1-4.

Other significant activities during the review period included the continuation and development of the supplier sustainability evaluation program. As a member of the Ahlström Collective Impact (ACI) network, Detection Technology continued to promote children's rights and global education in collaboration with UNICEF Finland. In addition, fire safety and evacuation drills were organized at the company's factories in Beijing and Wuxi.

In H2 2025, Detection Technology did not receive any reports of environmental infringements. The company did not receive either any reports of infringements of EU or national laws or violations of its Code of Conduct through its Whistleblowing channel or other reporting mechanisms. In addition, no lost-time incidents were recorded.

Detection Technology's corporate social responsibility complies with the certified ISO standards. The company acknowledges and complies with the Code of Conduct of the Responsible Business Alliance (RBA). The company has set metrics to evaluate continuous improvement across all aspects of its Code of Conduct, and the outcome is reviewed quarterly.

More detailed information on sustainability measures and the implementation of corporate social responsibility initiatives will be published in the company's 2025 annual review. Additionally, the review will present the achievement of the 2025 sustainability goals as well as the objectives for 2026.

Based on the EU Omnibus legislative proposal concerning the Corporate Sustainability Reporting Directive (CSRD) approved in December 2025, Detection Technology is currently outside the scope of CSRD reporting obligation. The revised thresholds apply only to companies with more than 1,000 employees and annual net turnover exceeding EUR 450 million. The company continues to monitor legislative developments and will reassess reporting requirements in line with future regulatory changes and stakeholder expectations.

Detection Technology has a rolling Performance Share Plan (PSP). This long-term incentive scheme established for the company's management and other key employees consists of separate stock awards, which the company's Board of Directors resolve each year.

The performance period of the PSP 2022-2024 program started at the beginning of August 2022 and ended at the end of 2024, and no share-based payments were made under the program. The performance period of the PSP 2023-2025 program started at the beginning of January 2023 and ended at the end of 2025. The performance period of the PSP 2024-2026 program started in the beginning of January 2024 and will finish at the end of 2026. The performance period of the PSP 2025-2027 program started in the beginning of January 2025 and will finish at the end of 2027.

The average share price of Detection Technology was EUR 10.54 in Q4 and EUR 12.00 in January-December 2025. The highest share price for Q4 was EUR 11.65 and the lowest EUR 9.38. The highest price for 2025 was EUR 16.65 and the lowest EUR 9.38.

The closing price at the end of December was EUR 11.10, and the company had a market capitalization of approximately EUR 163 million. A total of 1.10 million shares, which is 7.5% of the total number of shares, were traded between 2 January and 30 December. The number of shares outstanding in Detection Technology was 14,655,630 at the end of the review period.

The number of shareholders at the end of the review period was 5,697. Approximately 72.0% of the shares were held by the ten largest shareholders. The nominee-registered foreign holding of shares in the company was 12.2%.

The company has one share series, and all shares bear equal voting rights. The company's shares are listed on the Nasdaq First North Growth Market Finland marketplace under the ticker symbol DETEC.

Detection Technology did not receive any flagging notifications in H2 2025. The obligation to notify and disclose major changes in holdings and voting rights is set out in Chapter 9 of the Finnish Securities Markets Act.

The company's most significant short-term direct and indirect risk factors and uncertainties are changes in geopolitics, in particular changes in the U.S. policies and tariffs, changes in the U.S.-China and the EU-China relations, global economic uncertainty, the Russian war in Ukraine and the unrest in the Middle East, along with their ramifications on the global and European security and economy, availability and prices of energy and raw materials and the consequent increase in global political uncertainty. In addition, challenges in the availability of special materials and electronic components may have an adverse impact on the company's business.

Other risks are related to business operations in developing markets, the changes in the competitive landscape, price competition, a significant share of net sales being generated by the five largest customers, APAC countries' large share of sales, customer liquidity, product quality, the startup of production of new products, exchange rate fluctuations, overall cost development particularly in China, the permanence and competence of personnel, recruitment of experts and organizational efficiency.

Other risks related to the company and its business operations will be described in more detail in Detection Technology's financial statements for 2025. Detection Technology takes continuous measures to mitigate the risks.

The distributable funds of the parent company Detection Technology Plc are EUR 44,080,486, of which EUR 3,693,403 represents the net profit for the financial year. The company's funds eligible for dividend distribution total EUR 15,675,401. After the end of the financial year, there have not been significant changes in the company's financial situation, nor does the solvency test referred to in Chapter 13, Section 2 of the Companies Act affect the amount of distributable funds.

The Board of Directors proposes to the Annual General Meeting to be held on 26 March 2026 that, based on the balance sheet adopted for 2025, a dividend of EUR 0.30 per share be paid. The number of shares entitling to dividend is 14,655,630, which means that the total amount of the dividend would be EUR 4,396,689.

Detection Technology Plc will disclose the following financial releases in 2026:

• Business review January-March 2026: 23 April 2026

• Half-yearly report January-June 2026: 6 August 2026

• Business review January-September 2026: 29 October 2026

The financial statements and annual review for 2025 will be published at the latest on 5 March 2026 on the company's website. The Annual General Meeting is planned to be held on 26 March 2026. The Board of Directors of the company will convene the meeting. Detection Technology Plc's financial calendar can be found on the company's website.

‌ACCOUNTING PRINCIPLES

This unaudited financial statements review for the period 1.1.-31.12.2025 has been prepared according to the Finnish Accounting Standards (FAS).

Espoo, Finland 4 February 2026

Board of Directors Detection Technology Plc

https://www.deetee.com