Bravida Holding Aktie

Good morning, everyone, and welcome to Bravida's presentation of the First Quarter. And as always, together with me, I have...

Petra Vranjes here, CFO, and happy to present the first quarter of '26.

And my name is Mattias Johansson, CEO of Bravida. So with that, we start. And the headline is solid sales and margin development with increased order backlog.

So, we tell you that we are starting the year with a good momentum. Net sales above SEK 7 billion. Cash conversion improves in the quarter, but still on a low level, 77%. Order intake up 5%. EBITA margin well above consensus at 4.6% and higher than last year. Net debt, strong balance sheet at 1.1x EBITDA and the order backlog increases with 7%.

So -- and for the first time in a while, we have positive organic growth and stable EBITA margin on top of that. This is very much because of that we are in many different geographies, working in different segments with different types of customers. So we are in a diverse market.

Sales is up in the quarter with 2%, 3% is acquired growth, and we have 1% organic and FX is actually impacting the growth with minus 2%. So that means in numbers that organic growth is close to SEK 70 million, M&A contributing with SEK 240 million, and then we have some SEK 151 million minus on the currency side.

EBITA is growing with 6% to SEK 325 million compared to SEK 292 million last year, I think. And in this quarter, we have also taken some restructuring costs in Sweden. So adjusted for that, we have a margin that is close to 5% in the quarter and LTM non-adjusted is 5.9% margin. And the EBITA margin in each country is stable or improving.

Yesterday evening, we actually decided -- the Board decided that we should launch a buyback program as part of optimizing our capital structure. We got the decision on the AGM last week to do this. So yesterday, the Board decided to start a buyback program. And the Board intends to evaluate the share buyback programs on an ongoing basis until next AGM in 2027. But we start in this quarter with doing the buyback with SEK 100 million. And then on running basis, the Board will evaluate if we will continue or not depending on what we can use the balance sheet to create as much value to you as possible. So this is a new -- one of the tools we have in the toolbox, and that will be used if we think that is smart. Today, we have 14 -- close to 15,000 shares. You can read this yourself and 2.5 million Class C shares already. But finally, we launched the buyback program as you -- most of you have been waiting for a while.

The acquisition agenda is -- have been very silent in the Q1. I will though say that we have a very active and good pipeline. So I think that the pace will increase going forward. But we didn't do any acquisitions in the first quarter. But as we have said earlier, we have sold one company that is ABEKA, and that is because that is not in line with our core business and the core strategy. So we think that both ABEKA, Bravida and the new owner can do this in a different and maybe a better way in another solution.

You can see in this slide that we have for the last 10, 11 years, done a lot of acquisitions, and that will be an important part of our strategy going forward as well. And it seems like the activity in the whole M&A market has eased up and improved a bit in the last quarter.

Speaking about our business model and the market we are in, the transformation of the society is actually benefiting Bravida's business going forward. Lately, there has been a lot of focus on the energy prices. That will mean that energy savings in buildings will most likely be more interesting going forward. It has been close to noninterest at all in that segment. I think that, that will improve from now on.

We see a continued growth in the hospital area, new buildings, but also make sure that the operation is working in a good way. So we have a redundance in those systems.

Data center is very interesting. As you have heard and seen, we signed a small data center contract with one of the partners that we have been working together with since 2017, and that market is really exciting going forward. And that is a market that we have been in since 2009. We have the knowledge, we have the resources and we have the will to actually be part of that business.

Infrastructure project is another interesting segment going forward, reliable security systems. The defense industry, of course, is driving some of the growth in Bravida for now, and we'll continue to do that going forward as well. And then we have some -- quite many actually exciting industry projects in the Nordics as well.

And I think this is why we can present an increased order intake and strengthened order backlog today. You see that the order intake is up 5% year-on-year, and the order backlog increased 7% year-on-year, mainly small and medium-sized orders. So not any specific big orders in the quarter, which means that some of them will start quite quick and also be produced in the coming quarters. Very positive support going forward, but let's see if that trend can continue.

I still think the organic growth was a bit earlier than expected, but it has now some support of growing order intake and order backlog. So let's see what happens in Q2. But if the world stays in a bit okay, then I think we can have a better momentum going forward than we have had the last 2 years before this.

On the next slide, we have a selection of different customer assignments that we have won during the quarter. I mentioned the data centers in Sweden. We have a partnership with EcoDataCenter, who has been -- we have been working together with since almost 10 years now, a customer that most likely will continue to invest. This contract is about the electricity supply for the data center, but we also have the industrial piping in this contract from before as well.

In Denmark, we have signed a school where we are delivering all the different disciplines needed in the building. So these 4 cases is somewhat different. We have the data centers where we have the knowledge, we have the resources, competencies, et cetera, to deliver that one. In Denmark, we are showing you a case where we offer the customer the full scope of our services.

Then we have Norway. I think if you're interested in sport and football, you have followed Bodo/Glimt, a fantastic football team from North of Norway. They beat Manchester City. They beat Atletico Madrid. They beat also Sporting Lisbon, and they were actually able to reach the quarter final in Champions League. And now we have a big honor to help them building a new arena in Bodo as well. And as a football fan, I really like that type of project.

And then in Finland, we have another type of order that is more focused on service, where we are going to help Pirkanmaan Osuuskauppa covering technical building systems in 115 different retail locations in Pirkanmaan region. And sorry for the pronunciation of the name. But 4 different types of orders that is very significant for Bravida's business and this quarter and many quarters going forward as well.

So with that, I hand over to you, Petra, and you will tell them something about the financials.

Yes. Thank you, Mattias, and good finish there, I think. So just to recap a bit of what Mattias said about the overall. So we have a 2% growth in sales and 1% is organic growth of that. We have an FX impact of 2%, and we have acquisitions of 3% in the totality. And as you can see, the EBITA margin is up 6% and have included SEK 325 million in the quarter.

Going through our countries, we will start with Sweden as we usually do, and Sweden landed on SEK 3.4 billion in turnover, and that's up 5%. In Sweden, we have a stable organic growth, so it's on 0. It's flat to last year, which is a positive trend at the moment.

And then we have a 5% acquisition growth and acquisition comes primarily from Contub, which was a very good fit and has continued to grow under the Bravida's brand. So what we see in Sweden is a solid performance from the North, and we are gradually making a better market in the southern parts of the areas, which you have seen earlier have struggled, but now stabilizing.

If we look at the split on the sales, you have 54% on installation and 46% on services. And then EBITA coming in with SEK 152 million in the quarter. We have included the SEK 20 million in restructuring, which is part of a larger program from Sweden. So we're still expecting approximately SEK 50 million to SEK 70 million in quarter 2 and quarter 3 to come. And as I mentioned, that's part of a larger restructuring.

Order intake looking good in the quarter, up 16% year-over-year and gives us a flat year-over-year backlog.

If we then continue to our market in Denmark. Denmark closed on close to SEK 1.8 billion. And with that, they have included 10% organic growth. Overall, Denmark grew 5% since we have a currency effect impact of negative 5%. And here, we can see 55% installation and 45% services.

On the EBITA margin, and you can see on the graph, Denmark has done a very good recovery and is in the first quarter of '26, landing on 5% EBITA, which is then primarily due to the turnaround and the good business execution and intake.

On the order intake this quarter is a bit down. It's 11% negative year-over-year. But on the backlog side, you can see that Denmark is continuing to build backlog, up with SEK 500 million to SEK 4.6 billion approximately.

And then we look at our Norwegian business. And in Norway, as you know, we have had a softer market in Norway and a struggle. Norway is doing an excellent job with securing that there is efficient delivery and control on the cost. So on the EBITA side, they are reporting a 5.1% EBITA margin also in the first quarter of '26 with SEK 1.3 billion of sales or turnover. And in Norway, you might remember, we have a bit higher services sales with 62% to the 38% on installation.

Order intake is still low in the quarter with negative 11% year-over-year, but also in Norway, the backlog is slightly increasing and landing on SEK 2.2 billion. And you can see the last 12-month EBITA margin being very stable despite the decline in sales over the last year, so landing on 6.1% for the last 12 months.

Our business in Finland landed on SEK 537 million, that is a decline of 2%. In Finland, we have acquisition that is contributing with 11% to the growth and an FX impact of negative 4%. We are seeing a good order intake in Finland with SEK 945 million booked in the quarter.

And as you can see, the backlog is increasing to SEK 1.6 billion. And part of the orders Mattias was talking about, we have both large and many small orders coming in, in Finland. The EBITA margin is landing on 1.3%. And in Finland, we do need the growth to pick up in order to pick up the EBITA margin. As you can see, 33% growth in the quarter isolated.

Looking at our financial positions, we have a good cash flow in the quarter and a low net debt. On the debt side, we are landing on just below SEK 2.5 billion, and that gives us an EBITDA -- net debt-to-EBITDA on 1.1x. That is before we exclude the leasing. If we then exclude the leasing, we are down on 0.6x on net debt-to-EBITDA ratio.

Cash conversion in the quarter was 77%, which was expected. It's a good cash conversion on the running business, and then we have a large project, which had a big cash inflow where we have the advances and now is building, and we are expecting the full year of '26 to still be executing on the buildup on Forbifart Stockholm. So you will see the cash conversion on that specific project being a bit lower. On the other hand, cash conversion varies. So if we get large contracts with large advances, that will give us a high cash conversion. When we execute, it goes down. So it will vary over time.

On the loan facilities, we have a revolving credit facility of SEK 2.5 billion, which is maturing in February '28. We have commercial papers on SEK 1.75 billion and EUR 250 million and the 3-year term loan on SEK 750 million maturing in August 2028. That's from the cash.

Operating cash inflow was SEK 354 million in the quarter. When it comes to the launched buyback, we are seeing that as one piece in our toolbox, as Mattias was mentioning, where we prioritize M&As, we do dividends, and now we also have the buyback as one part of the toolbox that we will continuously evaluate how to do capital allocation in the best way.

Lastly, I want to mention also that we have a large outstanding receivable in Norway that you know of since before, where we have a court ruling pending, and that one is expected somewhere in June time frame. So we will keep you posted on what is happening if and when we get any ruling coming up in June.

And looking at our ESG, Mattias already mentioned the long-term injury frequency rate, which is 5 to an improvement from 5.6 earlier. Additionally, in the ESG, we are doing the electrification of vehicles, and that one is up from 38% to 46% as well as the carbon dioxide emission, which is up from 18% to 34%.

And with that, I will hand over to Mattias for a recap and taking us on to the outlook.

Thank you, Petra. And as one analyst actually wrote this morning better on all metrics, that actually include the sustainability KPIs as well, which is really, really good, of course.

Just to summarize the quarter. Organic growth again for the first time in 8 quarters, I think. The last 2 years, we have been focusing a lot to defend the margin, taking down sales and taking out costs, which we have done in a very good way. I'm really impressed by the organization's way of working and handling that. That means that we now have a margin that is improving with a growing business. Margin at 4.6%. EPS is at SEK 1.17, and that is an uplift from SEK 1.11 last year.

Cash conversion, Petra described it, why it's a bit lower, but the cash flow itself in the quarter improves compared to last year as well. Very strong balance sheet with a low debt and then the injuries is going down and improving as well. So actually, really, really good to see that all KPIs is improving or are improving.

The outlook, you see a solid net sales organic growth, margin development combined with increased order intake and an order backlog. And that is in a market that we see as a little bit better stabilized, but still very diverse. So let's see what happens. We cannot impact the overall market, but we can decide what to do in a bit tricky market, and we are a bit more positive today than we were last time we met during this kind of presentation.

Good cash flow in the quarter, low net debt gives us a flexibility to act, and the Board has actually done so by starting the buyback program. We have a continued ambition to grow the business, but we will have an eye and focus on margin as well. The transformation of the society is quite positive for a company like Bravida with the knowledge and experience we have in especially the data center area. And we have a very good market position that gives us a very solid platform going forward and create long-term value for all of us as shareholders.

The financial calendar, the next report will be in July, mid-July, and then you have the third quarter in October.

So with that, I think we open up for some questions. And I guess you might have...

[Operator Instructions] The next question comes from Oscar Ronnkvist from SEB.

First question, just on the market outlook. I think you sound at least a little bit more upbeat. I think you talked about organic growth starting in late Q2 as your initial expectations in the Q4 report. But I guess it's fair to assume that we are a little bit ahead of schedule given the solid Q1 results. Or is it anything that makes Q1 a little bit temporarily supported? Any comments?

I think, as you say, it's a bit earlier than we expected, but it's still 1%. It's not 5%. We have seen a quite strong growth in Denmark recently. Now Sweden is picking up a bit, Norway and Finland still struggling. So I think if we will have organic growth in Q2, it depends on if Denmark can keep up the growth at the same time in Sweden is improving. So let's see. I think it's too early to say that the growth will be very big in Q2.

But on the other hand, we have seen that when an oil tanker like Bravida, if that is a word you can use these times, it's -- when we are entering a growth phase or for that sake, a declining phase when it comes to the growth, we normally stay there for a while. So I think this is most likely a start of a trend or a phase where we will see organic growth for a while.

But yes, I'm happy that we have had organic growth in Q1, a bit earlier than expected. And we might think that it can be some small organic growth in Q2 as well. But I think we stay with the guidance that it will mainly come in the end of Q2 and going forward.

Understood. Then just staying on the market dynamics a little bit, but more on the sort of margin side. Can you talk a little bit about the competition on project margins in Sweden? Has that eased up a little bit? Can we expect the order backlog to have decent margins? I think you mentioned also that the order backlog is quite near term to be executed on.

Yes. I think if we start with the orders we have won, we have no reason to believe that the margin isn't healthy in that -- those orders because we have been very selective, strict in our pricing in terms and conditions in the contract, et cetera. So I think the type of contracts we have won is the type where you have a different competition, you can say. It's not everyone who can compete with us around those projects. So that is the first answer of your question.

The next one is, I think there is a bit improved or easing up pricing pressure in the market, but I think that is not fact that I can prove to you. I think that is more based on feelings, discussions and what I hear, but it hasn't absolutely not been worse. So I think there is a small improvement in that perspective as well.

Perfect. My final question, just on the geopolitical turmoil and any cost inflation impacts. Is there anything that you see that will eventually pressure any margins? Or are you -- have you learned from the last time with the cost inflation and are better to sort of mitigate that?

I think there are 2 things when it comes to this topic. I think first, the clients, the customers' willingness, the confidence to actually start the investments. That is one part that we can't really do anything about. Then we have the second part of that is that what can we do internally. We, as one of the few players in this market are big enough and professional enough to have our own procurement team, and they are working intense with secure long-term agreement and terms in the contracts with the suppliers that is protecting us from inflation and cost increases regarding material.

Then we have a structure within Bravida where we're discussing contracts we are signing, how to protect ourselves on our client side. So we have one work to the suppliers and one to the customers where we are signing contracts with index clauses, cost-plus projects, et cetera, but also train our employees so they understand what the challenges will be. We know that, for example, plastic due to the oil price will go up. We know that copper, aluminum, et cetera, in cables will increase because of the high demand because of the electrification, digitalization in the society.

So we have the processes and the structure in place to handle this. And I will also say that last time in 2022, I think it was when we had the high inflation last time, we handled that in a very, very good way. But we have a lot of respect for this topic, and we discuss it a lot internally. And so a good question and an important area to work with. And all the management in Bravida knows this, and I think we will handle this in a quite okay way.

The next question comes from Simon Jonsson from ABG Sundal Collier.

Also congratulations on a good quarter here. First, it's maybe on a similar theme as Oscar's question on the margin profile here on the new orders. But I wonder if you can expand a bit on how the price pressure in the market is developing here. And if that is one of the reasons for the higher order intake now or if we can expect that the order intake would look even better when we actually see better prices in the market.

Yes. If we see better prices, I think that means that we have a better market and that will impact the order intake in a positive way, absolutely. And again, I'm not sure I understood your question about the margin profile. But we think that the overall market, the normal installation and construction market is still a bit pressed. But the market where we are winning contracts now is a bit of a new market, another type of market where it's more defense industry that are investing infrastructure projects, large industry project data centers, et cetera. And the competition looks very different compared to the other markets.

I would say the normal market is quite tough still. But then we, on top of that, have a new type of market where we have a fantastic position, market position to -- and the knowledge to actually benefit from that. And I think that is why we see that order intake goes up at the same time as we think that we have a quite good margin in those projects. So Petra, I don't want to know if you want to add something or?

No, I think you are covering it well. I mean going up the ladder to the larger projects, of course, gives us the possibility to price differently, but we also know that we can execute on those. So we are one of the few companies that know how to and have the muscles to do it.

Yes. When it comes to the large project, if we look at historically, they have been, on average, more profitable than the normal type of projects because there is projects where we have the best project teams, most professional customers and there are some scale -- the synergies in your purchasing that you can have, for example, you can afford to have a professional purchaser in a big project, which you don't have in a small average contract. So this is something we really like.

All right. And just to clarify, I think when we talked last time, you had not really seen any big improvements in the prices and you expected it to potentially improve quite significantly after the summer. So I just wonder if that's still the case and if that could lead to sort of another boost in the order intake.

Yes. I think what we know, what is fact actually is that we see that some of the public numbers from some of the peers, they also have good order intake, good order backlogs and improving margins. So I think that shows us that if you are -- have a size that is above average size in this market, then you have a market that is improving. So I think -- I know when the market comes back, the prices will improve and increase quite rapidly because we already now know that some of the competitors actually have -- even if they have a tough market, have the order books full because they have had a different strategy than we have.

We have more thought about we have an okay order backlog. We are not stressed. Let's bring in the business that we think is healthy and have good margins. So when the market demand comes back, I think we have some pockets to fill, which is good. That is something I learned since I started in this industry in '98. You should never be really, really full in your orders because then you can't take those really good opportunities when someone needs to have something built very quick.

So I think that the market shows -- the numbers from competitors shows that the market has improved, at least the market where we can act. So a bit more positive than last time, I would say.

All right. And then turning to the segments a bit. You talked about recovery in Southern Sweden. So I wonder if you can elaborate a bit on what specifically you are seeing supporting Southern Sweden here in the recovery and if that will continue?

I think it's too early to say that southern part of Sweden has improved a lot. We see some signs that it's improving a bit, but it -- this scale is a bit relative. Sometimes you can be positive just because you can't see it worsening. So I don't know if it have stopped worsening or if it has started to improve. But I think the general macroeconomic says that it is a bit more positive. I saw a headline this morning that the bankruptcies in the industry has improved. So I think there is some quite many different signs of that the market is absolutely stabilizing but also improving a bit, but I can't really give you any hard facts on that. Sorry.

But I think we should also remember that we have done quite a lot of work in southern part of Sweden. So sizing down where the market has actually disappeared or decreased quite heavily. So with new size and new fit for the market, I think that's also part of it. And then, of course, a small signs of that market is improving, but no big, I would agree with you.

All right. So small signs, but maybe fairer to call it a stabilization.

Yes. But on that topic, you can say that we have improved even more on moving our resources. So we have some resources from southern part of Sweden to who is helping other colleagues within Bravida, both other places in Sweden, but also in Denmark, for example. And that also means that we have kept good resources for the future uptick in the market locally in the south part of Sweden. So -- and that is an advantage of being structured in the way Bravida is today.

All right. Then on Norway, it remains the weaker spot for you. And it sounds like if I heard you correctly that the outlook remains a bit muted in Norway. So what do you think is needed to get that market back to growth? It does continue to lag the rest of the group.

Good and tricky question. I'm not a financial educator. I'm just an engineer, but I'm trying to guess a bit now. No, but I think the Norwegian market is very different. You have high inflation. You have a society that is benefiting a lot from different other kinds of industry like the oil sector, for example. You have a wage increase. Now I think the new agreement -- collective agreement in Norway were 4.5% increased wages and still quite high interest rates in the Norwegian society, which is not really optimal for the construction and installation business in Norway.

So I think the Norwegian construction market will have some challenges going forward as well. With that said, there is also quite many investments on the infrastructure side, which we are doing some part in Norway, but also there is big data center and the other industry investments going forward as well. So tough market, but there are some openings for a company like Bravida. So -- but I think that is probably the market that is most trickiest one going -- if you look forward to 15 months or something.

All right. Just a final one on M&A here. Despite the buybacks, do you still think that you will be at a higher -- or hope that you will be at a higher M&A pace in the second half of this year?

I think that -- yes, I think so. I don't know. But the discussions we're having internally now is more frequent. We have better cases. It seems like the struggle we have had for a couple of years is that we haven't been able to find good enough targets that we want to acquire. There have been targets out in the market. But now we see that the quality is coming back. We can also see that the company who has been handling the downturn in market for 24, 30 months have done it in a good way. So there is more discussions ongoing. And I think that is what we want to use the balance sheet for in the first phase, that is to do M&A.

So you should see maybe the buyback that we launched yesterday as a combination of deliver some value to the shareholders, but we still think that we can continue to do M&A.

The next question comes from Anders Akerblom from Nordea.

Firstly, I wanted to ask a bit on Denmark. Obviously, a quite important component of the earnings uplift. Very solid margin for being sort of a seasonally weaker Q1. How should we think about the rest of the year in that regard?

Yes. If I start and then Petra have all the facts. But I think Denmark has done an impressive journey the last 1.5 years, you can say. Again, back to my knowledge from the industry, you -- in the beginning of the turnaround, you're improving quite rapidly. They have gone from -- I think it was 3.5% Q1 last year to 5% now. I don't think you should expect another 150 basis points to the next Q1 because it will take some more time to improve to the next level now.

On the other hand, we see that Denmark is doing a lot of good things, have a stronger team today than they had 2 years ago. The market is better. We are doing smarter things. And that all in combination will mean that Denmark will deliver a better result '26 compared to '25. I think we have guided that it will be somewhere around 5.5% to 6% in '26. Then I think it's -- after a good Q1, we have no reason to change that. But let's see what they will bring us in Q2, but we are positive about the Denmark organization, of course. Petra?

No, absolutely. Definitely. I fully agree with everything you said. So continued improvement, but of course, not the same steep curve as we have seen because that was coming from very, very low levels. So definitely agree with you.

And maybe the growth side will come down a bit in Denmark because they have been growing a lot with very impressive margins. And I think margins will continue to improve, but maybe the growth will slow down a bit. I think that will be fair to say because they have had double-digit organic growth for a couple of quarters at least, I guess.

So continued strong performance, but just don't expect what you have seen so far this year. The 12 month side. Yes.

Very clear. And I wanted to get back a bit to sort of the margin side on group. Sorry for digging into this. But I wanted to ask a bit on -- I mean, if we remove the prospects of sort of a better general market than perhaps better pricing, if we just look at sort of the mix between the smaller and larger projects and you discussed sort of perhaps competitive dynamics in that as well with some more demanding projects. If we think about that mix going forward, how should we think that, that affects sort of the group profitability? Do you understand my question?

Maybe. Yes. But I think when we are talking about slightly bigger projects, we know there is a different type of risk profile that we are pricing differently. So -- and normally, we think that the large projects have a better margin profile than the normal type of business where the competition is tougher, different. So we would say that, that will have -- I would say that it will have a positive impact of the group margin going forward. But then, of course, if you have a bigger project, they are slightly longer as well, which means that we -- in the beginning of those projects, we are probably a bit more cautious because we don't want to be too positive.

So I think if we were winning a couple of large projects, I think that margin impact will come a bit later. We won't start to take out too much profit in the beginning even if we have confidence to do that because that is how we should work in how I reason it is as well.

No. I agree. And I'm thinking we do have some 60% of our turnover in the year is smaller projects. So we should not disregard those, and we want to continue working with that segment as well. So it's not one or the other. It's a mix, and we want to be broad and work across many pieces and works. So very small projects under SEK 10 million are very frequent in our portfolio and that we will continue working with.

With the larger projects, I agree with Mattias, obviously, there is a bigger risk we have to consider. I think we are good at doing that. It's important that we price the risk. It's important that we take care, mitigate, use the money for mitigation as well, and execute in a good way. But of course, the large projects don't fit everybody in the market. So it is a pocket we want to be big in and we want to take.

What I think that you can help us understand also with the market guidance is that larger projects also can tend to do a bit of volatility, both on top line and on margins and on cash flow, obviously. So it's a good segment. It brings good business. It's profitable, we think, to us. But we also -- we know the ones we have now are. So -- but we definitely need to think about the volatility as well aspect with the larger portion of big projects.

Yes. And I also want to add because if we look at the order intake and order backlog improvement in Q1, now we're talking a lot about large projects, but that is mainly small and medium-sized projects. We have 2, I think that is SEK 150 million plus. Otherwise, it's mainly small contracts, which is, of course, very positive because if we are successful in the other markets going forward, that will come on top.

Okay. Very, very clear answer. And lastly, I just wanted to ask, speaking of larger projects, I came to think a bit more about sort of data centers and sort of what you're seeing in that market. How do you view that potential going forward, just in general?

I think it's big. I think that is -- I think you all understand that, that is maybe the biggest change we have seen in the market, and that is a good place to be. But I think it's also important to understand if your client understands what we are supposed to do because working with a professional client is important. It's also important to understand for all our branches, regions who want to enter this market or competitors as well because there is a reason why we have a central PMO who has handled those projects for many, many years because they know how to work with these global customers. They also know what resources is needed in a normal project that you might need 2 or 3 white collars to run the projects.

In a data center, you most likely need 60, 70, 80 white collars. And there is not many who can handle that, and we are one of those. And it's a good market. We are participating in that market with a lot of respect, but we have the knowledge. We know what to do. We are choosing our customers carefully because we are not entering into any project if we don't think it's a good project customer terms to enter into.

The next question comes from Johan Lonnqvist Sunden from DNB Carnegie.

First one is on the order intake and the kind of dynamic with prepayments. How should we think about -- you mentioned Petra during the call, the dynamics which could be for Stockholm. But if you exclude that one and think about the rest of your operations, is it a reasonable assumption to think that if you are starting to grow again, seeing a better and better order intake that you should -- the prepayment element should come back and be kind of a cash flow tailwind going forward? And is there any big other project that can trigger prepayment that can give strong cash flow during '26?

It's a good question. And of course, there is an element we could, if we win a very large contract and we get -- and that is associated with a prepayment or early -- or some advances. Of course, depending on the size of the advances as well, could give a positive cash flow that is very notable. When we're looking at the current quarter, we do have prepayments all the time. So you're absolutely right there. It's not just the large projects that get them. It's also small projects. And so it's a very, very common facility in our payment structure.

When we just look at how everything has moved in the quarter, it pretty much evens out advances, payments, working, everything kind of with receivables and payables and all of that also equals out. The piece that is actually bringing us from [ 100% to 77% ] or thereabouts is the Bypass Stockholm that we have been talking about. And that one is expected. So with that said, we are expecting that to continue during this year.

But you're absolutely right, let's say that we would land a big contract in the next quarter, which I don't know that we will. So this is not me telling you that we are. But if we would...

You never know.

No, you never know. That could, of course, bring a big prepayment. We would -- if it's big enough, we will tell you that is then an extraordinary piece of reporting. But at the moment, we don't have any of those extraordinary that is skewing the numbers in any way.

Yes, just to be clear, you don't -- and the order intake you have seen last 2, 3 quarters. There's nothing that you are starting up in the coming, say, 2, 3 quarters that would trigger what you know today.

That is bringing a huge prepayment you're thinking. That's what you're asking.

Yes.

Nothing that I know today, no.

Clear. Then on the M&A side...

May I just add one thing. One of the -- without mentioning the specific projects, I think one of the large projects we have signed is the cost-plus that the risk is very low. And that also means that we get the payment afterwards we have done the work. And I think that is -- you can see, okay, poor cash management, but we have that in the price in some way. But it's also a way to -- that's why the competition is a bit different because we, with a strong balance sheet, can actually participate in those projects as well and do large projects on cost-plus with another type of cash flow.

So I think that is also important to understand. It doesn't have to mean that we haven't been focusing on the cash. We have been entered into contracts that we think have a good earning profile at the same time as we can get paid for getting the cash a bit later, and we can handle it because we have a strong balance sheet.

Perfect. And on M&A, you stated, Mattias, that the kind of M&A market has been more active in Q1. Just give some kind of sneak peek to pipeline. Are you -- it mainly bolt-on transactions that you look into? Or are you also looking into maybe bigger platforms? Or how should we view your pipeline?

Yes. I think we're always looking into both these sectors. The small bolt-ons is more frequent and the platforms acquisition is happening from time to time. It can be many years between those, but we are always looking into both. And -- but it's not like going into shop and buy things. It's -- you need to have a seller as well. But we are working very proactive with those type of acquisitions as well to be -- create relations, be first in the line when it's time -- the timing is right, et cetera.

So yes, the activity has picked up, a lot of discussions. So let's see what we can present in Q2. But again, we are not stressed about be able to present a certain number of acquisitions to you guys. We are doing the things that we think is smart for the coming 10 years is for Bravida, try to develop the company and use the balance sheet in a smart way. So when we're doing acquisitions, then we think it's a good acquisition. If we don't think it's good enough, then we don't do it.

So no kind of skew in the pipeline in certain direction?

No, I think the pipeline is good. Yes.

Yes.

And then going back to the kind of raw material inflation topic a little bit. And just you mentioned that you managed the previous inflation uptick in a good way. But at the same time, it was also during those periods where you ended up in dispute with certain clients because raw material prices and this -- you were -- had to look into details of how the contract was stipulated. How should we view that risk going forward? Have you learned things from the previous period where you ended up in disputes with certain public clients, et cetera? So we don't should see that happening again if we have inflation ticking up a bit.

I'm not sure the correlation is correct there. I don't think we have ended up in any disputes with clients because of the inflation. We had one in south part of Sweden, as you know, where we filed to the police. Otherwise, we don't see that correlated at all actually. So -- but we -- what I can say is that we already then was quite good in signing contracts with inflation clauses and purchase material quite early in the phase and we have improved that even more.

Just to give you an example, this Friday, in a couple of days, we have a big information meeting with all our managers within Bravida where this pricing topic is one of the things we will discuss and inform and train them yet another time. So we are working consequent in a structured way with contract templates, bid meetings. The legal team is involved in the new contract bids we are submitting, et cetera. So we have a structured way of working with this.

And just a final on the disputes. Some update, latest and greatest, what to expect from the kind of mainly the Stavanger Sykehus process?

We know that they have said that decision will come in beginning of June, or if that's mid-June, or not, I don't know, but...

I mean it's a public court. So we have an indication of June. And yes, it was in the beginning of June from the beginning, and I think it still stands that we think it's beginning of June, but it's a public court, and we don't know when ruling will come. But we will keep you updated as soon as we have the ruling. And that's the one we are expecting to get the ruling soon, the Stavanger Sykehus.

Perfect. I think you recovered my other question.

There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Thank you so much. 45 minutes of questions. Good questions, positive kind of questions. So yes, thank you so much for listening in and viewing this presentation, and I hope you will get a fantastic day.

Thank you.

So are we ready to say goodbye?

Absolutely. And let's go back to the Q2.

Exactly. So see you soon. Bye.

Hi, and good morning, everyone, and welcome to this presentation of the fourth quarter, 2025. I'm representing Bravida. My name is Mattias Johansson; and?

Petra Vranjes, here as well.

And we are the one who will take you through this presentation today. So again, a warm welcome, and then I think we kick it off. As you know, Bravida are in 4 different countries. This is old numbers. And I think maybe the most interesting thing is that we now are 13,400 employees instead of 14,000, and that is just a sign of that we have scaled down in geographies where the market has been a bit too challenging to be able to continue to drive -- be profitable in our business.

We have a sales top line at SEK 28 billion plus. And I will now take you through the fourth quarter's highlights. Net sales stabilized and the negative organic growth is, you could say, improving or less negative. We have minus 2% organic growth -- or net sales is minus 2% and organic is minus 3%. Acquisitions contributed 3%, and then we have FX effects around 2%. Service is down 3%, while installation is down 1%.

We see fantastic performance in Denmark. So the turnaround we have been talking about for the last 2 years is something we have delivered on, and I expect Denmark to continue to improve the coming quarters as well. Norway is also adding to the improved margin for the whole group. And all in all, we are actually improving the margin with 60 basis points to 8.1% EBITA margin in the quarter. As I said, Denmark's solid performance is, of course, very happy to see that we have delivered on what we have guided you on, but we are also very confident that this journey can continue another couple of quarters.

So we expect '26 to be a bit better for Denmark compared to '25. Earnings per share is up 17% in the quarter. We see strong order intake in Finland and good order intake in Sweden and Denmark. Cash flow, as we've been talking about the last meetings with you guys, is improving, and we had a really strong cash flow, SEK 1.2 billion almost in quarter compared to SEK 756 million. So now we are -- almost at our target again regarding the cash conversion. It's up to 79%. And I think that this will continue to improve in the coming quarters as well.

Cash conversion is at 1.1. So we have a strong balance sheet, and it's improved sequentially also. If we look at the full year and the highlights for the full year, you all know that we have had a negative growth, minus 5%. The margin is up compared to last year, 5.9%, which I think is a very strong margin in this market condition. Order intake, all in all, up 5% and the order backlog is and have been on very stable levels throughout the whole year and is also improving.

Earnings per share is up 16%, and the Board of Directors proposes a dividend of SEK 3.80 and that is an increase compared to last year. And it's also equal to 63% of earnings per share. This is the slide of how the dividend has developed years since we IPO-ed in 2016. And you can see that we, on average, have increased the dividend with 14% and we are paying out, as I said, 63% of the earnings. And we still have a strong balance sheet at 1.1x EBITDA.

Cash conversion, improving. So we think that we have a solid or strong position going forward to continue to deliver on M&A and invest in Bravida as a company. If we look at the bridge regarding the sales, we started at SEK 8.1 billion. We are deducting SEK 200 million plus from organic growth. M&A is adding another SEK 200 million, and then we have currency effect of around SEK 200 million as well. So that means that we end up in SEK 7.9 billion. So if you adjust for the currency, we are flat year-over-year.

And I think that is also a sign that the market is improving a bit. Our strategy is still focused on restricted project selection. We are focusing on margins. And that has, of course, resulted in a lower margin but also an improved margin. And all in all, this actually -- is meaning or has led to that we are improving our earnings per share with 17% in the quarter and 16% for the full year. So I think we have done a really good job.

I'm very proud of all the fantastic people within Bravida, who has saved cost, worked with efficiency and be very close to our many loyal customers as well. If we look at the earnings, you can see that it is up from SEK 604 million to SEK 641 million. The margin is 8.1% compared to 7.5%. And again, a fantastic job in a very difficult market. The Danish business improved to 6.6% from 4% in the quarter. Norway presented a 7.7% margin compared to 7.5%. Then you see a decrease in Sweden on a very high level, 9.6%. And then we have Finland at 3.4%. And maybe Finland is a bit disappointing in the '25, but me and the whole team is doing everything we can, and we are pretty confident that Finland will improve in the coming years and the coming quarters, even if they will have a quite tough start of the year. But '26 will be a much better year in Finland as well.

If we look at the order intake and the backlog, the order intake is up 11% year-over-year. Fantastic to see that some of the higher activity is actually turning into more business. The order backlog is on stable levels and is improving 3% year-over-year. And the order backlog is now -- in the order backlog, we have more projects that are not that long that we've had before. So we are ready to capture the growth when the market turns. And I think that is a very good position to be in. Organic growth in the order backlog is 5%.

When we're talking about sustainability, I'm very proud that we can present a 59% decrease in the CO2 emissions from all our vehicles. We are also improving our safety work for all our employees, and it's down to 4.9% our target is 5.5% on group level. Last year, we had 5.9%. And I think this is one of the best in the whole industry. And that is a good thing that our people in Bravida is coming home from their daily job every day in a safe way.

We especially see the improved LTIFR in Denmark and Finland, which is very good because they have been a bit worser or a lot worser than Sweden and Norway before. So it's good that they are keeping up the competition and improving this and that is depending on increased focus and good work, of course. Norway and Sweden are better than the group target that is on 5.5%. On acquisitions, which is one way we can use the balance sheet and create value for us as a company and for you as a shareholder.

We will continue to do acquisitions. It's an important part of our strategy. We know we have done maybe too few acquisitions in your perspective, but there is a reason for that because we haven't been able to find good enough targets that we have been willing to invest in. And when we sometimes have found targets that we see has been very stable in the downturn of the market, they haven't really been willing to sell yet. But we have an active pipeline. We are focusing a lot on this, and we hope and think that '26 will be a better year regarding these acquisitions.

The pipeline is strong. And the discussions are many and active, there are slightly longer lead times. We also have divested one part of Bravida. We have been selling ABEKA and that is actually turning into -- the closing of this deal will be somewhere late Q1 or early Q2. They had an annual sale of SEK 472 million and had an earnings of SEK 30 million plus. We own 87.5% of this company. So when you are doing your analysis going forward, you need to deduct this from the total sales and earnings going forward. I think this is a good deal for us. This is a fantastic company and ABEKA will get [indiscernible] owners in the perspective, so they -- in the perspective of scale advantages, knowledge, et cetera, so they can continue their journey and improve as a company.

We still think that the high-voltage market is interesting, but we want to be in another part of that segment where you have more technique and maybe less excavators, et cetera. But we wish ABEKA good luck and the new owners, good luck as well and hope that they can continue the journey they have started within Bravida.

With that, I hand over to you, Petra.

Thank you, Mattias. So let's look into our divisions or segments and we will start with Sweden as usual. And we can see that Sweden closed Q4 on flat numbers to the Q4 in 2024, so closing on SEK 3.9 billion, with an EBITA margin of 9.1%, slightly lower or 0.5 percentage points lower year-over-year. We are seeing a reduction in services sales and an increase in installation sales. The reduction in services sales is mainly attributed to the conscious decision we have taken to close down some branches in other parts of Sweden and to focus on margin over sales during 2025.

Looking at the full year numbers, Sweden is down 8% on organic level. It is helped by the acquisition done, that Mattias was mentioning as well. So we have 2 acquisitions in Sweden that will generate approximately SEK 360 million on a yearly basis, and this comes in during the 2025 with 3% increase on the sales numbers.

On the EBITA margin, strong execution in Sweden and closing the full year margins on 6.7%. Order intake improved during the year somewhat, and we are closing the order intake for the quarter with 12% increase year-over-year. The backlog is slightly down, but on par with earlier year's numbers. Sweden, we are doing an organizational change, and that organization came into force in Q1 this year, so in January 1. And as you know, we have taken SEK 20 million in restructuring charges, so one-off charges in Q4. And we will also see a continuation on some one-offs into 2026 with approximately SEK 70 million to SEK 90 million in the year.

The organizational change is expected to deliver approximately SEK 65 million on a yearly saving, and that will start kicking off in 2026, not with the full effect but continue in subsequent years.

If we then look at Denmark. Denmark had a very good quarter 3 and they continue into quarter 4, closing on approximately SEK 2 billion, which is slightly lower year-over-year when we look at the growth. However, Denmark is delivering a organical growth that is positive so in the quarter, 2% and they are also delivering a strong full year organic growth. Denmark is continuing their turnaround story, and they are doing it very well, executing with pride.

And the EBITA margin is delivered in the quarter with SEK 130 million or 6.6%. And on full year, the expected 5% EBITA margin is delivered and landing on SEK 370 million. Denmark is also increasing the service sales somewhat. So going up in the quarter to 50% of their sales in service sales. On a full year basis, it's 47%. Also on the order intake, Denmark is proceeding well. And in the quarter, they are delivering a 90% increase in the order intake and the backlog is then increasing to SEK 4.5 billion going into 2026.

Norway. Norway has a 9% negative growth year-over-year in the quarter and landing on SEK 1.5 billion. Norway is coming from 2024 with quite good execution on primarily some of the hospitals, but also other projects, so a decline in Q4 in this year and also a decline year-over-year on the full year numbers, closing on SEK 5 -- and now I can't see, 4% -- SEK 5.4 billion, so down a bit.

EBITA margin, Norway is executing very well on. They have been focusing on reducing cost and sizing to the volumes and are delivering an EBITA margin of 7.7% in the quarter and 6.2% in the full year compared to the 5.9% that they delivered in 2024. Primarily, the driver is a lower administrative cost in Norway. Order intake is down 11% in the quarter. But if we look at the order backlog, we will see that Norway is stable on the backlog for the full year, slightly up, but very stable numbers. So going into 2026, they are carrying approximately the same backlog as into 2025. And then finally, looking at the Finland numbers, Finland is somewhat up in the quarter, so 2% growth, of which 1% is attributed to their organic growth and 1% to the acquisition made in Finland during the year.

On the full year numbers, we are seeing a decline in Finland, so SEK 2.3 billion, and this is due to a tough first half in Finland. You have seen -- we have seen on the orders booked that Finland booked quite significant orders, both in Q3 and continuing in Q4 to also increase the order intake and thus increasing their backlog to SEK 1.2 billion starting off 2026 with a strong backlog.

On the margin side, Finland closed on 3.4% in the quarter compared to the 6.4% earlier quarter, so last year. This is attributed mainly to the 2 projects in 1 region that we took some write-downs in Q3, and those projects are continuing to closure will bring some not so good margins with them for the finalization of the projects. So that was on the segments or divisions.

If we then look at the cash flow and net debt as well. So Mattias just mentioned that we had a strong cash balance, cash turnover in -- cash conversion, sorry, in the quarter, and the quarter actually delivered more than SEK 1 billion in cash conversion. This brings us to a net debt-to-EBITDA level of 1.1x EBITDA then. And if we exclude the leases, we are down on 0.7x to EBITDA, which is very, very low numbers. So a very good and strong cash conversion, and it landed on 79% for the full year. We are well funded, and I'm not going to go through all the commercial papers and loans. These are as they have been earlier quarters, but well funded as we stand.

And with that, I hand back to Mattias to take you through the summary and some takeaways.

Thank you, Petra. And Yes, summary of the quarter. It's worth to mention again, I think that we are improving the margin in the quarter to 8.1% and it's driven mainly by Denmark, but also that Norway is contributing. Sweden has a high margin, as you know, are lowering that a bit, but on a very high level. EPS increased 17%, which I think is fantastic. Sales growth is stabilizing on the negative side, but is -- we see some trends in the orders activity in the market, but it's down with 2% throughout the year.

And with that in perspective, you all understand that the margin improvement is fantastic. I think it's well managed and well done from many in the organization. Installation and service are both down a bit. We have growth from acquisitions to 3%, and then we have a negative impact from the currency when the SEK has strengthened against the other currencies. We see increased order intake in Sweden, Denmark and especially in Finland.

Cash flow, as Petra just mentioned, fantastic in the quarter and the net debt is improving. And the Board of Directors has also proposed a dividend of SEK 3.80 per share. You probably have read that we have a new organization in Sweden, starting in the beginning of 2026. You see this gentleman, Lars Täuber on the slide. He will be Head of Sweden. And this is actually 3 Swedish divisions that are merged into the new Swedish organization. And that is because we want to take out or reach some scale advantages, synergies, be more cost efficient, but it's also a way to ensuring uniform range of services in all the different parts of Bravida.

So we think that, that will improve our ability to capture the growth and gain some market share when the market comes back. The history of Lars is that he started some years ago, and he led the turnaround at that time in center around -- at that time, it was called Division Stockholm. He has managed and improved that division together with his team. And then lately, he also led the turnaround in the south part of Sweden. I'm very happy that Lars will accept and tackle this new challenge. I think he is perfect for this role.

The new structure is also meaning that we have a one-off cost in the last year in Q4 at SEK 20 million, and we will see some more one-off costs in to this year, '26, around SEK 70 million to SEK 90 million, and that will create some savings around SEK 65 million annually. So I'm very happy that Lars is in charge of the new Swedish organization, and I'm very confident that this will be important part of the next step of the Bravida's history going forward or creating the new history, you can say.

What about the market? I think you are all very interested. We think that the service activity will continue to be stable. There will be some challenges in the installation in the coming quarters as well, but there are variations between geographies. External prognosis forecast an annual growth in installation around 4% and stable service demand. And I think that hasn't really started yet, but the forecast is a third-party forecast. So we have good hope that this will happen in '26 at least. So the sooner, the better.

We also see a very high activity in the market, even if it hasn't really turned into new orders yet. There are some favorable market conditions. And I have to mention infrastructure, industry, defense, facilities and data centers. And that is segment that is close to tailor-made for a company like Bravida because we have the competencies, we have the resources, and we have the footprint to be able to use this potential. It doesn't really matter where this is going to be built because we are there, and we will be there and competing about this.

We will, though, maintain our project selectivity and also our selectivity regarding what customers we are working with. So continued focus on margin, cost control across all projects will drive the margin up, and that will be our focus, but we are also ready to focus more on the growth when the market is supporting that move.

So with that, I have some upcoming events to talk about. AGM, 28th of April. And then the next quarter report is May 5. So you are very welcome to join those sessions, and then you have one meeting in July and one in October.

With that, we can open up for Q&A.

[Operator Instructions]

The next question comes from Oscar Ronnkvist from SEB.

So my first question was just to be on the balance sheet. So 1.1x leverage now, and you also have a divestment, so you talk a little bit about the M&A pipeline, which appears to be strong. But I just wanted to hear your thoughts on the leverage. You have a target of being below 2.5x. It's pretty far from that at the moment. Where do you feel comfortable that you will end up, so we'll have a sort of a sense of the M&A pace going forward?

But I think there is, of course, a range where we are comfortable within. I think we are comfortable with everything below 2.5. On that -- with that said, you always need to have some headroom to do things. You are not too close to the 2.5x in leverage. We have some tools in our toolbox. We have -- the dividend is one tool. We have the M&A as another one. And then we are, of course, the Board is discussing buybacks also and that is up for discussion every meeting.

So let's also see how the cash flow continues to develop. You all know that we had a quite weak cash conversion 4, 5 months ago. That is something we have approved. We are not really where we want to be. So I think this is some kind of mix of everything. But we are comfortable where we are, and we will use the balance sheet in a smart way. And if the -- when the cash conversion continues to improve, I think we have more tools to use in that box. But let's see what the board decides. But I think we are confident where we are. And we don't think we are on the high end, maybe a bit on the low end, maybe. Yes. Petra, do you want to add something?

No, I would definitely agree with you, Mattias, I think we are standing very, very strong in this situation and have a good toolbox. We think we are on the low end. So we have a lot of opportunities, but we'll definitely -- we are talking about how to utilize our cash in the best way.

Perfect. So just a follow-up on that. I think you've averaged around acquisition pace for like SEK 400 million a year around 30% of the EBITA. So given your pipeline today, do you think that you have enough targets to accelerate that pace? Or do you feel like that's going to be around SEK 0.5 billion or something in M&A spend? Or do you have room for even an accelerated pace there?

No. We have room for an accelerated pace, as you say it, and we will accelerate it. But I also think there is -- we need to look at the supply in the market as well. We will not do stupid things. We -- my aspiration or wish -- aspiration is to do more M&As in '26 than we did in '25. If you look some more years back, you see that 2025 was the lowest year in terms of M&A. And I think we can get close to what we have done earlier years. So let's hope we are back on normal levels of acquisitions in '26. So we think we can accelerate it or improve it or do more.

All right. So accelerated from 2025, but more to be in line with sort of the average over the last few years.

Yes, I think that is the first step. And let's see what the market looks like and how the balance sheet is used, et cetera, and what opportunities we have.

Perfect. Just one sort of technical one. The group-wide EBITA in the quarter was quite high. Could you just explain the sort of different factors and if any other division took a hit from that?

Group-wide EBITA is upheld by -- well, a very good job in Denmark, and that was as expected, as we said earlier. So Denmark landed on 5%. A very good job in Norway. We want to say that as well because Norway is low on the sales side and declining on sales, but have worked very, very hard and executed well on keeping the EBITA margin on a good level. I would say that Sweden and Finland has also contributed in a good way.

Of course, we are all eager to see Finland increasing in their EBITA and not really happy with where they landed the year, but considering a couple of projects that went a bit south, we are okay with the Finland as well. So I think it's a combination on securing the prices in the contracts executing well. And I want to also lift the execution on the selling and G&A or the administrative costs that everybody has been working on heavily during the year that is contributing well.

All right. Understood. So just wanted to confirm there's no sort of temporary boost in the sort of group eliminations or the sort of positive contribution in the EBITA from the group-wide?

There is no temporary boost of the EBITA. And the only negative and one-off that we have in the quarter is the SEK 20 million in Sweden. So -- and no temporary boost. I know that we have got some questions on the SEK 25 million that sits with the group. That is not a temporary boost that is the money that we actually do have, and it's just reported on the group level for marketing and management fees that we are taking out that landed a bit higher on the group level could as well have been distributed to the divisions.

The next question comes from Carl Ragnerstam from Nordea.

It's Carl from Nordea. A couple of questions. Firstly, great to see you reached your previous guidance on the Danish margin, a great turnaround. Looking into '26, you gave some wordings around the continued positive trajectory there. We see strong orders Q4 backlog. I mean, clearly decent entering '26. You've been up to 5.5% before, right? So how should we look at the possibilities to Denmark to from here?

Yes, we have been very kind to you, Carl. Good morning by the way. Earlier, I have been guiding very specific on the Danish business. But I think now -- I think we're going back and stop guiding in the same clear way as we've done before. But my expectation and the management team in Denmark's expectation, I think I know that Petra supports that as well, is that Denmark will continue to improve because the turnaround we have done is fantastic, remarkable.

And with the turnaround like that, it doesn't mean that you just come up to a certain level. It means that you have been improving all processes around bidding, production, focus on cost, et cetera. So we can now use the great work the Danish team have done. And of course, that will mean that we can continue to improve the Danish business going forward. But I think I stop with that type of guidance. So -- and also, we really don't know, of course, but we are very confident that it will continue to improve, absolutely.

That is very clear. Perfect. In the market guidance, you obviously have some forecasts that is not yours, obviously. But around 4% installation growth, '26, '27, you talked about the better quotation level yourself. We see it in orders as well. So if we take those numbers, external numbers, factoring your ambition to, I guess, maintain or potentially gain market shares, but you're also conscious around pricing. How does this square for your outlook, you think?

No. But I think the forecast is a forecast. If the forecast is actually right, then I think the market will be good. That will -- on the price pressure side, that will mean that in a low-demand market, the prices go down very quick, but also know from the 20 -- yes, close to 30 years I've been in this industry. When the market comes back, the price come back quite quick as well. And what we think is good is that we have a good level in our order backlog, but we are not full in that perspective.

So we are ready to win orders when the market actually let us doing that. We know that some of the competitors, they are quite full already now. And I think our strategy has been that not filling up the order backlog with poor margins in new projects. I think if the forecast regarding the market condition is correct, then the market will be good and then we will grow in line with the market, I guess. But I still think that it's too early to put in your Excel sheet. But let's see, let's hope they're right.

That's clear. And 2 questions around pricing. The first one, what type of lag would you say is between the general market recovery and the price recovery? I guess it's a lag on the pricing side? And secondly, where are prices today versus you'd say a normalized market, i.e., what upside could it be on the pricing if market recovers? Obviously, it's a very difficult question, but if you elaborate on it, it would be good. .

Yes, but it varies from geography -- between different geographies. It's also in different segments. There are some interesting segments that we have been mentioning in the market outlook where the competition is a bit different. For example, some of the big infrastructure project data centers, the competition is different and the prices are better because you need to have a certain competence to be able to first understand what you're bidding on and most importantly, understand how you should produce it and the technique you need to deliver to the customers.

I think the prices in those segments are already today quite good, but they haven't really turned into the orders yet. Then in the normal type of business, then it is differences in geographies. Of course, there is a bigger price pressure in south part of Sweden and still in Finland compared to some other areas in Denmark or Sweden. But your question about the time lag until the prices goes up, it can be everything from 2 months to 6 months, I guess, or maybe 7. That is not an exact number, but it goes quite quick. And also when we have the orders we are producing on, you know that our average project is around 9 months, and that means that then they are finalized, and we can fill up with new good orders again.

Very clear. The final one, if I may, is on cash flow. Clearly impressive, clear improvement in my book, at least, you're flushing out a bit of receivables in the quarter. Is it you taking a firmer grip on cash connection? Or is it anything else in the cash flow we should consider here in the quarter?

So I think it's a combination. First of all, we have been talking about the large projects that do have a fluctuation in cash conversion, and that will continue so that we will see that in the large projects. We will get big advanced payments. We will execute. We will have dips where we are actually executing on advances and things like that.

On the large projects, on the very large projects, now we're talking about SEK 1 billion projects and above, we will see a fluctuation. And that we have to take into consideration. So looking at the cash conversion on a longer term, a year is much better than quarters. But still, when it comes to our cash conversion, we can, of course, become better. And yes, to your point, everybody has been really eager to get their invoicing out and to secure cash in the quarter as well. So we are taking a stronger grip.

We already have good terms and conditions in our contracts or decent at least, I would say. So it's difficult to move those very much further, but we can absolutely be quicker at getting our invoices out as most companies can and to secure a good conversion. I think you probably -- if you look at the full year, the 79% is a good number. If you look at each and every quarter, you will see that we are bumping up above the 100% and below the 70% as well. So you will see a fluctuation. And I think we need to get a bit used to that if we are going to have more of the large projects.

And also to add to that is also a way we can use our strong balance sheet to be able to participate and compete in those projects. And of course, that has some kind of price tag on it because that is something we can price when we are participating in those projects because we can and not many other can.

The next question comes from Simon Jönsson from ABG Sundal Collier.

So I have a follow-up on Oscar's question on the capital allocation. And I wonder when do you think that you could come back with more news about what tools you intend to use? You talked about capital allocation tools recently. Assuming that the cash flow remains good here because it sounds like there is a limit to the M&A pace near term. And without a high M&A pace, you will be approaching a net cash position. So, yes, can you say anything about that, like when we could hear more about that? Or is there other factors involved here?

No. But I think it's an ongoing discussion, and that is not a decision of ours. I think this is a decision from the Board of Directors. And we have been discussing -- they have been discussing this the last couple of meetings, how we will use our balance sheet in the most efficient way. So that will continue. The coming meetings, I guess, we have an annual meeting coming up in -- was it in end of April. I think that is one kind of formal meeting where you can expect some news maybe. But I don't owe that timing in that perspective.

So we can just say that we have a really strong balance sheet. We will use that in a smart way. We prefer to do acquisitions. And as you said, if we can't really speed up the acquisitions, then we need to do something else, of course, with the money. We are now increasing the dividend a bit. But still, if the forecast is correct, we still have a strong net debt level in the end of the year. So -- and I'm pretty sure that the Board understands this and are smart in their discussions and decisions. So I'm sorry, I can't answer that more specific than that.

But we will, for sure, come back definitely. And we are driving the discussion as well with the Board, like Mattias was saying. So it's on top of our agenda. .

All right. But to clarify a bit on the M&A pace, I mean, is it fair to assume that you sort of expect or hope for that things will ease a bit here? Or you can't see it right now, but you hope that during the year will significantly ease or...

No, no. This is also, I would say, because of the low demand in the market and the tough market condition, we also see that the targets we are discussing with and are doing due diligence is on, we see that the quality is not what we expected in some cases. And that means that we are pausing those discussions or actually saying, no, thank you. Then there are some that we really, really want to acquire, but they are maybe not ready because they think they have a slightly lower margin that they usually have. So I think this is about using the balance sheet in a smart way, doing the right deals to create as much value as possible for our shareholders.

And we think when the market is up a bit, then it will be easy to do good acquisitions again. And so we are consequent, we are structured in our way of approaching M&As and the way we are doing deals. So we also see the deals we have done, even if they are fewer, they are better. So we have a model, and we are sticking to that. We are not stressed. We know we have a strong balance sheet, and we can use that in different ways. We can make sure that we are creating cash, do smart acquisitions and then the Board can decide how they want to use the rest of it in terms of dividend and maybe share buyback.

All right. But given the lead times with projects going on for almost a year or so and currently price pressure, lower margins, could it take quite some time before better margin projects comes through in the margin for the companies you want to acquire, making them willing to sell? Or could they be willing to sell even before they see more normalized margins in [indiscernible]?

I think you -- interesting question, and I think that is quite tricky to answer, and I think maybe that's why you're asking it. Agree to everything you're saying. But still, when it ease up, it goes quite quick. We also see that some might be forced to sell for some reasons because they can't handle the situation and then we come in and can be the solution of that one. But again, I can only say that we think that we will improve the speed or increase the speed of our acquisitions in '26 compared to '25. Maybe it will be a challenge, as you said, to come back to the normal levels we have seen for 10 years before, but that is definitely an ambition we have.

The next question comes from Johan Sundén from DNB Carnegie.

First, from my side, it's a little bit on the data center exposure. I'm a little bit curious to hear what you see in the market currently. There's been media reports that activity levels in Nordics -- around Nordic has increased lately with a couple of bigger projects coming -- being planned. What are you seeing? And how big proportion of your, say, backlog goes to this specific area?

We see the same. It's not a lot in the existing order backlog. I think we have got new orders around, is it SEK 300 million in the last quarter or something?

In this quarter.

In this quarter and pretty much the same in the previous quarter. So still, regarding to the potential, quite small volume. So in the order backlog, we have today is quite normal order backlog and a data center order will spice the existing order backlog up, you can say.

That's a nice one.

Yes. A bit of Swinglish maybe, I don't know, but...

And if we look at competition in those kind of orders, you mentioned that competition in -- on the infra side is lower. How many players are there in the North that can take on such a project?

I think actually the competition is lower, but it's definitely more different because you need to have other types of capabilities. And I will take the chance to describe what I mean with this because we have been doing data centers since 2011. We know what it takes. And what many companies underestimate is that when you have a data center, you maybe need 40, 50, 60 white collars on site to be managing this project because of the reporting to the client, the safety, the complexity in the -- what material to source, how to install it, et cetera. So I think there are players in the market who think they can do data centers.

And hopefully, they understand it before they price it too low. But it is another type of business. We have done it for 15 years. The competition is different. It's only the big Swedish Nordic players who can do this and some other international players. And it has been very many data centers being built from international players previous years, but that was at a time where there were not a data center market throughout the whole of Europe. So I think that the market as such means that the international competition is a bit lower in the Nordics because the resources are in other places building it. So it is another competition, absolutely. And we have been doing this for many, many years. So we know how to handle it.

Excellent. Thanks for the color. Second question goes back -- goes to the kind of organic growth profile and how we should think about that in a first half '26? I know that your head count numbers where you ended '25 is still lower than you had on average in Q1 last year. Do you -- in my -- it looks tough to grow in Q1 with those kind of conditions in place. How do you think we should think? .

Yes. I think you shouldn't expect an organic growth in Q1. I think maybe in the late end of Q2 maybe, but it's too early. We don't have those numbers supporting that. But I think it's more -- I don't know if you have done the analysis, but you shouldn't think about too much organic growth before the summer at least.

Exactly, I would say the same. You should really think about -- we should all think about the organic growth coming step-wise. Of course, it's different in different markets and with different types of businesses that we are having. But on an overall level, coming in step-wise. We are taking data like you are as well from, for instance, construction companies where they are in their cycle and how they're booking orders. And to Mattias' earlier point, we're also seeing an increased activity for us as well. But between that and until we take the order, start executing, I would expect second half.

Excellent. Very clear. And then going back a little bit to kind of cash flow dynamics. Given the reasoning with the capital allocation that you have highlighted here, how is your visibility for cash flow during the coming, say, 2, 3 quarters? Anything particular that we should be aware of that can make the cash flow swing in certain direction, different compared to kind of historical pattern?

Well, you're already aware of the historical cash flow swinging like when we have the payout of dividends and things like that. So you have the seasonality effect that you would probably already be thinking about. But then other pieces that can swing the cash flow is more -- there are, of course, some pieces that can swing it extremely, and that's, for instance, if we would settle long outstanding claim or something like that could, of course, swing it. I wouldn't expect that.

And if that would be late in the year, there are things that could swing if we would onboard a large project. We could get advances that could swing it dramatically, obviously. I wouldn't expect that in the near term either. If we get that, we will most likely announce or something. So that could swing it. If we have some underlying that could swing in negative direction, we don't really have something severe that could swing the cash flow in negative direction in a major way.

But of course, if we are executing on some of the large projects, right now, we are estimating the cash flow a minimum of half a year. So we're not expecting huge swings at the moment, except for seasonality effects and things like that, you should always assume.

That's encouraging with the kind of -- most kind of optionality on the upside from the cash flow going forward. But -- and how should we read you then? The dividend per share will, for sure, not consume the kind of cash flow that you should deliver. Are you in the ongoing discussion for platform acquisition that you want to do? Or is it still the M&A pipeline full with kind of bolt-ons?

No. But I think, of course, that is hard for us to guide on those topics you're mentioning. If we have a bigger acquisition, of course, we will announce that when we are ready to do that. But for the moment, it's more like we have -- we know we have a strong balance sheet. We have now released our -- the Board's thought about the dividend. There have been discussions around how we should use the rest in speeding up the acquisitions, try to find more deals to do, like you are -- the Board is pretty much asking the same questions as you are regarding the acquisitions, and then we have discussions around the third tool as well regarding buyback.

And so far, they haven't really decided on what to do more than on the dividend. So I think you shouldn't read us more than this is the situation. We have a strong balance sheet. We have announced the dividend. We will continue to do M&A. We will speed up that if possible, and we think it is. And then regarding buyback, that had been discussions for a time, and that will most likely continue. And when they are ready to announce something, I guess they will.

[Operator Instructions] The next question comes from Johan Dahl from Danske Bank.

Just 2 questions. Firstly, on the data center activity, you referred to some SEK 600 million order intake second half in that area. If you compare that activity level, with what's going on in sort of predesign pre-engineering in your program office in your special projects business. How do you compare that activity that is sort of preorder? And what you've actually taken as orders in the second half of the '25?

First, we don't have any preorders, but there is a lot of bidding discussion around data centers. And if you compare to what we are discussing and maybe see what's happening in the market, the SEK 300 million or SEK 600 million, you said lately is not a lot. It is -- yes, the potential is a lot bigger, you can say. .

Yes, I understand that. I was just thinking -- okay. On the further restructuring charges, Sweden that you talked about during '26, is that something that you're aiming to finalize shortly here? Or is it more sort of something that we should see towards the late part of the year?

So as Mattias was saying, we now have Lars Täuber and his team. They are working and executing on what changes they think are reasonable. And of course, they have -- they are in the same situation as the rest of us where -- the market looks maybe a bit tough in the South still. Maybe there are some opportunities. There are definitely opportunities as well in Sweden. So they are both looking at how to deliver uniform services across Sweden and how to do it in the best way and also looking at how can they turn into growth like we are all looking at, right?

And at the same time, they are matching the organization to build the best organization that we can do for Sweden. They will do some more changes. And for that, we will take most probable restructuring charges or one-offs, and we are estimating the SEK 70 million to SEK 90 million. When in time, I cannot tell you right now. We think they -- we know they will come, not all at once, but piecemeal during the year. If we are going to have any in Q1 or Q2, I cannot say at this moment. but approximately SEK 70 million to SEK 90 million for the full year.

There are no more questions at this time. So I hand the conference back to the speakers for any closing comments. .

Yes. Thank you all for all good questions, and thank you all for listening in and joining this call. And we are happy to finally have a report that is a bit more positive in a very tough market. I think this report is actually really good. We have a good order intake, improved cash flow, EPS up 17%, strong balance sheet, as you all have heard. So yes, we are looking forward to the next report, I think, and also going out and continue to improve Bravida as a business. So thank you so much.

Thank you, everybody.

Bye-bye.

Good morning, everyone. Welcome to this Q3 report of Bravida's presentation today. It seems like we have some issues with the sound. But meanwhile, together with me today is…

Petra Vranjes, hello.

Our CFO, yes. And together with Petra, I will take you through and guide you through this presentation. So thank you for that. I think we start immediately. Are we fine with the sound? Yes, thumbs up, then we start.

Bravida, as you know, presence in 190 different locations. We were 14,000 employees in '24. We are unfortunately a bit some fewer people today. But hopefully, we can, when the market get back again, start to grow the company again.

We had in '24, close to SEK 30 billion in sales in 4 different countries. So by that, we are going into the highlights for this third quarter of 2025. Very happy to see a very strong performance in Denmark and Denmark is contributing to the margin improvement for the whole group with 80 basis points. We are improving our margin to 5.3% in a very demanding market. I think that is very strong. As the CEO, of course, you work daily with things you can improve. You think that you are -- can have done some things better. But I also have to admit that in this market condition, I think it's very strong to be able to improve the margin like we have done in this quarter.

EPS increased with 24%. Denmark is executing due to the plan we have communicated earlier or slightly better actually. The guidance for the full year is still close to 5%, but we, throughout this year, have been more and more confident that we should -- Christian and his team will deliver on that one. Acquisition contributes with 2.5%. We also see an increased order intake in Finland with healthy margins, which is really good. And we have an operation cash flow that is due to timing issues slightly weaker than we want it to be. On the other hand, at the same time last year, we were around 130% cash conversion. So there is a timing issue depending on some large projects.

The net sales is down 2% roughly. And the main reason, except for the market as such is, of course, that we're very thorough what kind of projects business we bring into our portfolio. So the restricted project selection has contributed to the lower net sales and, of course, also the improved margin. That is going hand-in-hand.

EBITA in the quarter, the margin increased to 5.3%. And as I said, the driver behind this is that the margin is significantly improved in Denmark despite a weak market. So very good from the Danish team at the same time as we have very stable margins in Norway and Sweden in a tough market. Finland, a lower margin, and that is more depending on an isolated issue in one branch or few projects. And I guess Petra will come back to that later.

Order intake and backlog. The order intake is up 5%, might be a positive sign. I think it's still too early to say that the market will turn. We still think that it will take some -- a bit into the 2026 before we see that growth is coming back in our books. Activity has increased a bit, but the order backlog is on stable level, and we are very happy with the quality of the orders we have in our books today. So the market is a bit challenging, but an increased or improved order intake and a stable order backlog is, of course, very good to see. And maybe worth mentioning is that the order book increased in Sweden and Finland in the quarter.

So ESG, the change in CO2 emissions is down 42% if we compare to the net sales in 2020. It is improved with close to 15% the last 12 months. And especially happy we are with the improved work with health and safety. The accident rate is improved, and it's now at 5, which is lower than our target, and it's lower than last year, which was 5.9. A low number is good. Norway, Sweden is better than our group target. Finland has improved a lot. Denmark is working hard to get down in this KPI as well to improve that work. And it's very good to see that we are moving in the right direction regarding the ESG KPIs as well as we are improving the margin at the same time as we're improving the margin, I would say.

Acquisitions, we have done 2 acquisitions until the third quarter, adding SEK 300 million plus in annual sales. In the fourth quarter, we have added another 2 acquisitions, 1 in Sweden and 1 in Norway. Slightly smaller ones, but with good margins. And the pipeline is still strong. We have good quality in the pipeline, a lot of discussion. But as I said, the last couple of quarters, it is a bit more tricky to close the deals depending on -- and the main reason is the market condition because sometimes we want to do the deal, but the sellers might think that they are performing slightly below what they are used to do. When some want to sell, we maybe are a bit too cautious because their performance is going south or have -- is not in the level we want it to be. So a good pipeline, but slightly more trickier to actually close the deals.

With that, I hand over to Petra, who will take you through the different segments.

Thank you, Mattias. So looking at the different segments, we will start with Sweden as usual. And in Sweden, we have seen a growth of negative 7% and mainly explained by the softer market in the southern parts of Sweden, and we have also closed down some branches there in quarter 4. So that brings the sales down. We do have an impact of acquisition in the quarter isolated. It's positively impacted by 4%. And when we look at the year-to-date, the number is 2% of the impact from the acquisition.

Sweden has closed on an EBITA margin of SEK 172 million, which is 6% flat on the quarter, down from 6.3% in -- with a lower sales and top line then. And when we look at the year-to-date, we can see that Sweden is performing on a flat EBITA margin of 5.7%. So very good performance considering the lower top line that we see there.

On the order side, we have had a positive book-to-bill in the quarter and the orders booked came in 33% higher than last year's quarter. For the year-to-date, Sweden is down on the backlog with 9% year-over-year then. So let's -- and I should also mention that in Sweden, we have an ongoing review of the organizational governance and steering, and we are expecting some efficiencies from that to come.

When we then look at Denmark, Denmark has performed very good, and they are executing diligently on their plan. And with that, they have increased the sales with 23% organically, impacted by the currency effect of 3%. We are at 20% positive growth in the quarter. We can see that both services sales and installation sales are increasing. Service is up 15% and installation by 24% year-over-year.

The EBITA margin up to 5.5% from a negative EBITA margin last year. So Denmark is contributing with more than SEK 100 million in the isolated quarter. And if we look at the year-to-date numbers, we have Denmark up 470 basis points year-over-year. On the order intake, Denmark is down 32% in this isolated quarter. However, looking at the year-to-date numbers, we can see that the backlog has increased with 8%. So very strong from the Danish team on the execution on their plan.

Norway, here, we can see that Norway came in on SEK 1.2 billion, and that is a sales decline of 10% in the quarter. Also, Norway is affected by the currency exchange, and they are down 3% on the currency exchange. So organically, 7% decline for Norway in the isolated quarter. Norway is also performing well on their EBITA margin, considering the sales decrease. They are coming in on 5.7% EBITA in the quarter, and we can see that the year-to-date number, they are improving the EBITA margin to 5.6% from 5.4%. So strong execution on securing the cost side from Norway. On the order booking, we have a slight decline, 9% in the quarter and the year-to-date then order backlog is up also in Norway.

And then looking at Finland. Finland has closed on SEK 528 million with a close to 0 EBITA margin, depending on the low top line in Finland and a couple, 2 projects that we have taken write-downs for in Finland in 1 branch. So that brings the EBITA margin to 0.6% in the quarter. The growth or decline of 18% is affected by currency exchange rates in Finland as well, 2% down and also positively from acquisitions where we see a 5% increase in top line. Year-to-date EBITA margin is, of course, also impacted by this quarter's write-downs and is landing on 1.6% to 3.8% in last year's year-to-date numbers.

On the order side, Finland came in very strongly. They are booking small, medium-sized orders, but they also have in this quarter closed a deal for the industrial facility in Finland, and the orders are then 66% for the isolated quarter. Finland actually booked SEK 749 million in order intake in the quarter. Backlog is also up 15% on the year-to-date numbers.

So that was the segment. Let's look at the net debt and cash flow. On the cash conversion, like Mattias was mentioning, we do have a weaker cash conversion in the quarter. So we are at 63% compared to 134% last year. And then we have a negative cash from operating units. And it came in on negative SEK 111 million. And this is due to buildup of contractual assets for some of our larger projects that are executing. So in the larger projects, we have early advance payments, which we have received earlier years. We had a very good cash conversion last year on above 130%. And now we are executing on those contracts. They are invoicing according to the contracts and contractual terms and conditions and executing as they should, but cash varies over the quarter for those large contracts.

When we look at the net debt, we can see that we have a SEK 3.5 billion of net debt and interest-bearing liabilities closed at SEK 4.1 billion, including SEK 1.5 billion of commercial papers and SEK 1.4 billion of lease. And our credit facility of revolving credits is SEK 2.5 billion, of which we had SEK 2.1 billion as unused credit facility end of September. Our net debt-to-EBITDA ratio is at 1.5, and our target is to be below 2.5. So we are well within that target.

And with that, I welcome Mattias back to take us through the highlights.

Thank you so much, Petra. And yes, the highlights of summary for Q3 is I think that it's -- that we have an improved EBITDA and improved margin. The EBITA is SEK 342 million compared to SEK 294 million, and the margin is 5.3% compared to 4.5%. And I think that is very much because of a great job from all the local leaders and the branches and all the personnel in the branches, good cost control and very thorough work with all the businesses we actually are providing to all our customers.

EPS up 24%. And this is at the same time as the top line is actually down with 2.2%. With that, I think also you can see that we had a negative organic growth. I think it was 7% or 8% last quarter. It's slightly better now. So I think that the market has bottomed out. It hasn't improved, and it will take some quarters before that will happen, I guess. If that happens sooner, I think that's better, of course.

We can see that installation sales is flat, and we are losing some percent in the service business. And I think that is because that the normal type of business is impacted by the market demand. But then we have some infrastructure projects, defense facilities, et cetera, that's actually driving the installation portfolio a bit more than it normally does.

Organic growth minus 3% and then we have acquisitions where we're actually adding 2.5% and then we have some headwinds from the currency. We see increased order intake in Finland and Sweden. Operating cash flow, Petra just talked about, which is a timing issue, you can say. As she said, it was above 130% this time last year, and now it's slightly lower. We are, of course, working with that. But also there are some contracts that is deciding when to, yes, let us invoice. So it's not any other reason behind that. And then we have improved LTIFR and very good KPIs regarding our CO2 emissions.

So going to the market outlook. Service activity continues to be stable. There will be challenges in installation business, but there will be some positive opportunities regarding slightly bigger projects in the infrastructure segment. And also, of course, the defense facilities. I earlier have said that the defense investment hasn't really started in Sweden, but we now can see that that are starting to grow, which is, of course, positive and can give us some tailwind going forward.

And with that said, it is important to understand that we will continue to be very selective regarding what kind of business we bring into our portfolio because having a balance between the risk exposure and the business we're bringing in is important. And I think that is the main reason why we have been able to improve our margin in this quite tough market. But again, it seems like the market has bottomed out. From now on, I hope we can go up. It will probably take, as I said, a couple of quarters more before it does. But we are preparing us as a company, improving as a company, so we can go into the new -- in the next cycle as a better company than we entered into this existing cycle.

So with that, I think we open up for Q&A.

[Operator Instructions] The next question comes from Carl Ragnerstam from Nordea.

Good morning. It's Carl from Nordea. A couple of questions. Firstly, coming back to the cash flows. I appreciate your comments on it. We have previously -- in previous quarter, we discussed the milestone payments of what is expected to be the bypass project. What is your view on that right now? And how certain are you, I mean, that to ensure me and the market that it's not a conflict coming up or any issues at all in those contracts where you're not getting paid?

So thank you, Carl, for the question, and good morning. When it comes to the large projects, they do have this cash intake in advance. A lot of cash comes in early. In this specific project, we got a lot of cash a couple of years ago, and it's been ongoing. So when we are talking about milestones, there are many, many milestones in the project, and we are invoicing as we go. So it's not like the project is stagnant and not doing any invoicing. We've got a lot of cash upfront. We are executing. It builds up assets. And we are invoicing according to the contract. It will have a buildup of assets first before we actually do get out of it. If you look at the projects in total, there's not an issue with the cash conversion in those large projects. But if you look at an isolated quarter or year, you might see the tendencies of a fluctuation.

But I can sense quite a big difference in the communication between what you said in Q2 and now Q3. When we listen to your Q3 -- Q2 con-call, it sounded like it was specifically one big project where you had a couple of hundred million that you expected to invoice during Q3 or Q4. And now I sense that you no longer expect this or you don't see that dynamic at all. What is the difference there?

Well, we are actually expecting invoicing. So -- and we are invoicing. So this project invoiced quite significant amount of money in Q3 as well, and we'll do that in Q4 as well. However, we are building more on the assets than we expected. And we expected because we haven't been deep diving into the project per se. So now we have done that a bit more. That's why we have more information. And it's not just one project. You had -- if you look at the cash intake in the last year, so if you look at 2024, you have 130-plus percent of cash conversion. You do have more other projects, primarily from Denmark coming in with a lot of cash in last year. So that's why you hear a little bit difference in the tone because we have more projects coming in that have a conversion earlier and now are in the same phase as the big project in Sweden.

Yes. And also, if I may add, Petra, if you look at the numbers for 2020 and at that time, we also said that we have a lot of pre-invoicing one big project. And I think that is explaining why we have slightly weaker situation in this quarters where we are right now. So -- and that is actually a couple of years ago. So -- and that is also things that happens in these large projects where we actually are one of the few who have the competence, but also have the balance sheet to provide those services. And we, of course, price the risk and the cash part into the margin when we are bidding for these projects.

And just finally on this discussion, sorry for not letting it go that easily. The SEK 400 million, SEK 500 million we discussed before, you don't anticipate it for the Swedish operation to come in Q4 or Q1 then? I mean those money are not existing anymore then, that we discussed before.

SEK 400 million or SEK 500 million?

Or a couple of hundred million, I think.

Yes.

We discussed that in previous quarters.

Definitely in the range of SEK 100 million, SEK 200 million. There are hundreds of millions absolutely coming in, but we're also building the project at the same time.

So the milestone payments are not coming basically in Q4 or Q1?

There are some coming. But on the other hand, we have a very high production now. And part of the production we are doing now is things we invoiced 3 years ago. So another way to answer it, Carl, is that this is a cash flow issue. It is not a margin issue. And we have not a dispute with the customer. It's just that we have a professional customer who want to tick the boxes for their different milestones before we are allowed or can send the invoice. And that is the situation for now. So -- but again, in 2020, I think we had a cash conversion of 135%. And the main reason behind that, as we said then, was pre-invoicing in a large project. So I think overall, in the project, we have a good or okay cash situation. But now if you look at the certain period of that project, a project that is actually going on for many, many years, then for now, these 12 months, it is a weak, and what I say, explanation for the numbers you see these last 12 months and in this quarter.

And looking into Denmark, quite strong margin in the quarter, definitely. But you're still guiding, as I interpreted, below 5% or maybe touching 5%. Sequentially, we have seen Q4 typically being significantly stronger. Why you're not more confident in reaching above 5%? Or is it just to be a bit prudent?

No, but we have no reason to. I think we have delivered on what we have said in Denmark, absolutely. And as I said in an interview earlier, we are more confident today than we were -- we have been more and more confident for every quarter that we will reach the guidance we have given to you. So I think we -- if it's prudent or not, I don't know, but we will stay with the guidance slightly below or at around 5%.

But do you still expect the seasonal factor?

Yes, to some extent. Then, of course, we -- I think it's written in the report as well. We still have some projects with lower margin to finalize. They are fewer today than they were a quarter ago. They are impacting less than they did before. So yes, maybe you're right, Carl. I hope you're right. But we have -- we normally not guide at all. So we stay with what we have said before, and we are very confident that we will deliver on that. You can -- yes, that's my answer.

And the final one, if I may, sorry, is regarding the reviewing of the Swedish organization. You say it's to improve efficiency and governance. What are you actually doing in Sweden? Can you shed some light on what the plan is?

Yes, absolutely. So -- and of course, you haven't seen that externally because we have had the segments as countries: Sweden, Norway, Finland, and Denmark. However, internally, Sweden has been steered and governed differently from the other countries. So we have had more than 1. So we have had 3 to 4 in times, I understand, also divisions. And now we are reviewing that to consolidate some of this and to get a clearer and better steering of Sweden as a country like the other countries as well. And in that, we are expecting some efficiencies to come out.

Can you quantify the efficiencies as well?

Not at this moment, we cannot. So we are still reviewing.

[Operator Instructions] The next question comes from Johan Lonnqvist Sunden from DNB Carnegie.

Good morning. Thank you for taking my questions. If we start a little bit on the Swedish business, just curious to hear a little bit more color on the kind of lower organic growth we see in the Swedish service business. An indication or what's behind it basically?

No. But I think that is, I think, the reason behind the tough market. And I think if you should take out or take away the slightly larger projects in infrastructure, defense industry, the pharma, et cetera, I think you would see the same pattern on installations. I think that is just a sign of a tough market. So it's still very stable. There are some positives, positive segments on the installation business that might be seen then from your perspective that the installation is stronger than the service business. But the service business is still very stable. There are some impact from, for example, small project on the service business where our customers is more cautious about their investment. So they are doing the normal service, but the small renovation project, et cetera, is missing for the moment. But I think that is just how the market looks. So yes, that's how I want to answer that one. Did you understand what I meant?

Yes. I just don't understand the wording of stable when it's falling 11% year-over-year.

Yes. I think also -- I think that has been the trend. My view on the market is that it has bottomed out. It has stopped being worse, but it hasn't really improved.

And also a wider question, we'll come back to the pricing end of it. Is there a big pricing pressure on the service contract that makes you step away a little bit? Or is it any of those kind of elements?

Yes. The new contracts, there are, of course, a price pressure. Existing contracts, we are delivering on as is. But, of course, there is a price pressure in a market like this, absolutely.

And if you go to the installation business and just looking at the order intake and visibility from your side going into Q4, Q1 here, how much of a step down on pricing should we anticipate?

Yes. We try to defend our margin, of course, but I think also the volume might be -- in some places, we actually have reached some kind of critical size where we maybe don't want to scale down more. So I think it's not -- I think the margin will probably more be impacted by slightly higher cost than a lower price from now on, I think. So the prices is -- if I should say something about the prices, I think they have maybe improved a bit, but on low levels.

And when you say it has improved, it's on tenders in Q3 that should be delivered upon H1 '26.

Yes, exactly, yes. But it's not a big change. I think it's still a quite demanding market. And we some -- from time to another hear that we hear some competitors taking prices very, very low. But that is happening in a good market as well, so.

And if we look at the Finnish business, some write-downs in this quarter. Should we anticipate more write-downs coming in Q4, Q1? Or is this isolated to this quarter? Or how should we view it?

We think that the Finnish margin will go up in the coming quarters. And this is -- even if we have a tough market in Finland, those write-downs is isolated to one branch, you can say. So we have a very good control and our eyes on it. We have done measures already, and we will continue to focus to improve that branch, of course. So the margin in Finland will improve the coming quarters, yes.

Yes, we are expecting that. So the Finnish business is otherwise a bit hampered on the low sales. And as you can see, they have closed some good projects and good contracts. So we're not expecting that part. The isolated write-down was 2 projects in 1 branch, and that one we're not expecting going forward. Things can, of course, always happen. We do price risks in our projects, and you can always have write-downs coming up every now and then. We're not expecting that in Finland in the near future at least.

Final question from my side. It's related to the question from Carl before. It's on the cash flow profile and working capital profile. What should we anticipate on the working capital swings in the coming, say, 2, 3, 4 quarters?

So -- well, we are expecting an improved sequential cash conversion for Q4. And now I'm not supposed to guide. Mattias is telling me every now and then, I'm not supposed to guide. But we are expecting, of course, a bit improved cash flow. I wouldn't be expecting the 130 bars unless we get some really big contracts and then they bring on board advance payments. So I would expect a bit lower than that definitely, but improved compared to this quarter.

Yes. And I just want to add another way to look at this as well, and I understand this is of your interest, of course. But if you take a look at the last 10 years, in Bravida, we have actually an average on cash conversion, I think it's 99% or 98% even if we include this quarter. So I think if you isolate one quarter, then of course, we can have these differences. I think we had the same in 2019 or something. And then in 2020, we had 135%. So as we see it in Bravida, some of the large projects is historically very profitable for us. And that is because we are good at it. We are choosing them very carefully. But it also means when we are very -- try to be front-loaded our cash terms in a contract means that after a while, the customer actually want to have something delivered for their money, we actually invoice them earlier. And in this specific case, without mentioning the project that this contractual terms that was decided when we were bidding for the project where we had a big invoice in the beginning. We have a middle phase where we are producing a lot and we are invoicing slightly less. And then in the end, there are some testing where we have a big invoice where we have lower production as well. And I think that is what you get as well in these type of projects. So it is a timing thing in the contract. It's not the margin thing. And we definitely have no dispute with the customer. I think that is what we can say. So take a look at the 10 years' average cash conversion, and we are very close to 100% even if we, yes, put this third quarter into that calculation.

I think given the kind of dynamics and that we are in the dark from the outside, I think it would be good for visibility if you can improve kind of guidance on this topic a little bit going forward, but we can take that in a separate discussion.

Yes.

[Operator Instructions] The next question comes from Oscar Ronnkvist from SEB.

Hello. Good morning, guys. Just a couple of questions from me. So the first one is just on the market outlook. So it seems like you shifted your comments a little bit from the Q2 report. Just wanted to hear your thoughts on the direction of travel. So is it just that you have pushed out your recovery expectations? Or is there any difference in the Q2 communication?

No, but I think we get new information, not every day, but quite every month at least. And we also saw that the construction industry in Sweden actually, they kept the growth numbers for the industry, but they actually pushed them a couple of quarters forward. And I think that is, of course, what we see as well. And I think if you go back year-and-a-half, I think most of the people in the whole society or our industry said that the market will turn after Christmas '24. Then it was after summer '24. Then after last summer, it was in spring '25. So no one really wants to guess anymore. And I think what we really have to focus on is what are we doing in this market because the market is nothing we can do anything about, but we can decide what to do in a challenging market. And that is continue to work with our cost side, be very focused on meeting a lot of customers, try to develop new services and improve our way to deliver existing services. And that's what we work really hard on every day.

So my ambition -- our ambition is to become an even better company when we enter the next phase of the cycle, as I said earlier. So, of course, the communication is therefore changed since the last quarter, but we also have some more information. So -- and I know everyone wants me to say that the market is improving and changing. But to be honest, we can't see it today. We see it's stable. We think we are a very strong company with many good people, but we are not magicians. So -- but we can see that the market has definitely been -- is more stable today. It has stopped being worse. It is now leveled out. And hopefully, we can go up from this point and quicker the better, of course. But the honest answer is that we can see a positive order intake. We can see an order backlog that has improved in some areas. We see an increased activity in the tender phases. But we can't see it until -- or this year that we are increasing the production. And I think that is what is actually important.

And just a small question on Finland. So you talked about increasing margins. Obviously, the Q3 margin wasn't that appealing at all at 0.6%. So first of all, do you have any sort of comment about the magnitude of the project write-downs? And also when you say that the margin should improve, is that from sort of an adjusted basis, not including the one-offs from your side? Or is it just saying that it should improve from 0.6%?

If I start, and Petra, if I miss something you want to add, you can do that. I think, first, it is an isolated problem. And while Finland is quite small, in a tough market, we really can't stand these mistakes that we have done in one certain branch. We are now fixing that. Improving the margin going ahead means that we will have a better margin in Q4 compared to Q3, obviously. If I remember correctly, I think we had a quite good Q4 last year in Finland. I don't think we will meet that one, but then it will be better and better. So the good thing in our business model is, of course, when we have finalized those projects with the write -- down writings, then they are gone and then we have a healthier portfolio immediately. Was that right, Petra? Or do you want to add? Go ahead.

Absolutely, you are absolutely correct there. And maybe I should also add that Finland, to your point there, is such a small market. So the write-downs of 2 projects, that would maybe not even surface in a bigger market, are impacting the EBITDA margin quite significantly in Finland. So it's double digits on the millions, but it's not a huge number in the content of Bravida.

There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Thank you so much for all questions. And we know that it is a very busy day in the stock market today in Sweden. A lot of companies is reporting. I think that is why we have slightly fewer questions today. But thank you for participating, and we will go back to continue to improve Bravida while we are waiting for a slightly better market. Thank you all.

Thank you, everybody.

Good morning, everyone, and welcome to this presentation of our Q2 report 2025. I will start with some highlights or overall general numbers for Bravida. We are in close to 200 different places in the Nordics, 14,000 employees and we had in 2024 close to SEK 30 billion in sales. 84,000 customers that are served by 350 branches creates a very stable business in business that we think is very positive. .

My name is Mattias Johansson, Group President and CEO of Bravida. And today, for the first time, I have Petra Vranjes, welcome to Bravida. Maybe you want something.

Thank you, Mattias. And yes, absolutely. So I've been here for a little bit more than a month now, and I have to say that I'm super proud to be a part of Bravida team. But the first thing that appealed to me with Bravida, it was the long-term view that the business is taking. And that combined with the sustainability engagement is super important to me. And especially in the marketplace that we are today, which is everything else than certain. So I have a long experience in the finance, finance leadership and management mostly in telecom, right, I come from a long line of telecom jobs in Ericsson and Intellia, but we also work with large projects, large complex projects and services in those markets as well.

And well, I've been working both in Sweden and abroad. So I've been dragging my family around into the world. We have been located in Russia, in Moscow, working with these 6 countries. Really difficult to understand, when we look at what's happening in that part of the market and of the world, we've been located in U.S., working with a big telecom operator in U.S. and Mexico and lots of things happening in the U.S. market as well. But this experience that I've gotten really have given me a sense, business is not that different in different locations and markets.

But on the other hand, it's also very different because we also have ways of working, ways of living. We have cultures, we have all of this, which brings us strength and opportunities. And with Bravida being present in the Nordic markets and having so many locations, the 350 branches in so many locations, that appeals to me it appeals to me to work in the footprint and to get to understand what are our strengths and what are our opportunities, what can we do better in those markets. In this month, we've been traveling.

You and I have been to Norway. We have been to Denmark. We have been to southern part of Sweden. We haven't been to Finland yet. We haven't been to the north heart of Sweden, -- really looking forward to getting there. But of course, I met the teams have met the business segment heads. I have met their teams. They have helped me to feel welcoming to Bravida. They have helped me to start understanding the business. And I think what I'm seeing is a lot of professionalism, a lot of skill. We really, really have a good crew good customer engagement, good focus on the customers, the dialogues that are happening out there, I really want to support that, right?

So all the skills that we are seeing is excellent. I think have another gear to put in, but when it comes to the scale, right? So if we could combine the scale and skill being the entreneur in the local market, leveraging on the large company that we are, that's really where I want to make a difference. So as the Bravida CFO and my team were thinking, we want to be part of creating a foundation where we can continue having this open dialogue. So supporting with information flow, with structure so that we can help the business continue with the internal external dialogues and ours, we want to work with governance so that we can put the gear in and get to the scale as well. So that's really what I'm looking forward to.

And I'll say like this, I feel super, super humble, welcome and [Foreign Language], as we say in Swedish, so up and running. And I want to thank everybody for bringing me on board.

Yes. Great. Welcome to Petra, and we are super excited as well. You will hear more from Petra in a few minutes. Thank you, Petra. And I can t you that Petra will add another dimension to me to the management team, to the whole Bravida to help us develop Bravida to the next level. So really looking forward to that. So with that, going into the Q2 highlights, as you probably have seen already, we are still facing a quite tough market. And that means that we are presenting a lower sales, the net sale is down 9%. And we have communicated and have a balance between the margin and the risk exposure. Coming back to that later. .

The order intake increased though with 9% and the order backlog increased with close to SEK 1.3 billion in the quarter and fantastic to see that the margin improved to 5.4%. And being able to improve the margin when you are declining the top line is very good as I see it, and is a result of our restrictive project selectiveness, cost control, better production and mix between different types of projects and customers.

Cash flow is negatively 80% cash conversion, and we see a net debt at 1.4x EBITDA in the second quarter, the last 12 months. Happy to announce that the LTIFR is decreasing with 12%. And the decrease in that number is good. We are improving the numbers to SEK 5.2 million. And it's mainly driven by Sweden and Norway, already well below the group target. And in total, we are below the group target as well. And we also have reduced the CO2 emissions in the last 12 months with 15% close to.

You can see a big drop in the installation sales compared to the services, which is as expected. If we look at the bridge regarding the sales, you see that we have some currency effects now. a pity when Denmark is improving, that currency is impacting negatively, but that is just how it is. We see that M&A adds SEK 92 million in sales. And then you see SEK 612 million in negative organic growth, and that is divided from, you can say, SEK 100 million is coming from closing down different cost units and branches in south part of Sweden, we also had some tough comps in Norway.

So we have a very high production last year in this quarter. But of course, the market is impacting this as or in combination with our own selectiveness what type of projects customers were choosing to work with. On the other hand, that is giving a better margin. Talking about the margin and EBITDA, you see that we have increased the margin from 4.5% to 5.4%. And again, I think this is impressive to be able to do that improvement in this type of market when we are losing volumes.

The main part is coming from the improvement in Denmark that we have been communicating a lot around. But it's also, of course, very it's good to see that we are meeting the things we have said and planned internally in Denmark. The Danish team are working hard, and we can also see the result of this. The other part of this is that we have been selecting what type of content we are working together with, but also what type of projects and the pricing we have set in the orders we have been winning there for the last 12 months.

We see that the margins in the orders we have won the previous quarters is on okay level or quite good level. So we've been able to improve the margins in the order backlog the last quarter despite the fact that we have a decline in the market. And that is to get back to the focus on margin over volume. Other things that is impacting the margin is, of course, that we have had a really good cost control. We have been able to lower the cost, both in absolute numbers as well as in relative terms compared to the top line, which is really, really good for everyone, from everyone in the organization.

And then we can see some better productivity in the execution. We are in the projects we are delivering to the customers as well. All in all, you see the biggest basis points improvements in Denmark, we have some small improvement in Sweden and slightly more in Norway than we are struggling in Finland. And the Finnish market is still probably the toughest market we have in the Nordics. And it will be the same in the coming quarters, I think but we are very selective. We are saying no thank you to projects because there are too low prices.

But there is some increased activity in the market where we see some more discussions with customers. And external forecast regarding the markets in all countries say that it will be a bit unstable in the last part of '25, but will most likely be improved in '26 and '27. If we look a bit at the order intake as well, you can see that the order intake increased 9% year-over-year. The order intake increased in Denmark but decreased in all other countries.

To the left, you can see that we had an order intake at SEK 8.1 billion. And actually, that is the second highest order intake in any single quarter we've had in Bravida. If we look -- you know we have a seasonality in the industry in this business as well. So if we just look at the second quarter, this is actually the highest order intake we have had in the second quarter, which seems to be part of some kind of turnaround in the market because we can see that the margins in the new orders we have taken is at the same level as previous quarters or actually slightly a bit better.

When we look at the order backlog, it increased with close to SEK 1.3 billion in the quarter, mainly driven by Denmark, but also Norway is adding to that. We are still struggling in Sweden and Finland, activity side not high. It's better. It is improved. I take away, it's not high. It's better than before. So maybe that is the first sign of change in the market. But let's see what's happening in the coming quarters. But order backlog, as we have said many quarters before, the margin in the order backlog is okay or slightly better than before.

Of course, we wanted to have somewhat higher order backlog, but the market is what it is. And again, want to have a balance between the risk exposure and the new orders 1,500 vehicles are electrical driven. That is something we have worked with for many, many years, and that also shows in the numbers. The LTM numbers for the CO2 emissions is down 15%. And if we compare -- compared to 2020 and adjust for the growth we've had, we're actually down 40%, which I think is fantastic.

And also a thing that customers more and more are looking at going forward. as I said before, decreasing number of injuries, which is really good for all our employees. -- and we are now at 5.2%. We see an improvement in Finland as well as in Sweden. Sweden Norway has quite low numbers from before, but now we see some improvement in Finland as well. And Finland and Denmark is the countries that we need to improve to get even lower on this KPI.

Science-based target has approved Bravida emission reduction targets. The climate targets are absolute emission targets for Scope 1 and 2 and an engagement targets for Bravida's Scope 3 emissions. That is something we press released a couple of weeks ago as well. Regarding acquisitions, we have done 1 acquisition in the second quarter, adding 350 million -- close to SEK 350 million in annual sales. in the beginning of Q3, we have done another acquisition in Finland, adding SEK 45 million annually. And there are interesting M&A discussions ongoing. But I think it's fair to say that when we are discussing with targets, we can see that it's demanding to find good enough targets because the market we are impacted by is also -- have also impacted companies we want to buy. And quite often, a lot a lot more.

We see in some cases, that earnings is going down or that the order backlog is not healthy enough for us to buy. So Again, we have discussions ongoing, a bit more tricky to find targets we want to buy. We have the balance sheet to support future acquisition, and we will do it when we think it's a smart idea to do it. So by that, I hand over to Petra, who will take you through the different countries. So please.

Thank you, Mattias. So we will start looking at Sweden and the second quarter of 25%. And net sales in Sweden came in on SEK 3.4 billion that is a decrease of 9%, 10% organically, and then we add back 1% for the recent acquisition that Mattias was talking about. That acquisition will bring us approximately SEK 350 million on an annual basis. So sales down A lot of the impact is due to soft market in the southern part of Sweden. So we are strict on our strategy to go for margin before volume and that brings us a bit down on the project selections when we enter into new contracts. But we have also done restructuring measurements for nonprofitable branches in Sweden. This was done in the later half of last year, the second half of last year, but it's an impact on the year-over-year comparison.

The closure of the branches that were nonprofitable has impacted top line, however, stabilized the margin and it's helping Sweden to come in on an EBIT of 6.1%, which is up 10 basis points. When we look at the services sales, it is decreasing with 7% and installation sales with 11% in the Swedish market. So order intake, a lot of discussion on order intake this quarter, and we're really looking forward to all the order intake that we are reporting in the quarter. In Sweden, we have a negative development of 13% year-over-year.

However, sequentially, Sweden is also showing a stable order intake with a minus SEK 24 million, which is neglectable, not mentioning that. So that's the Swedish market. I also want to say that in Sweden, we are now seeing the service sales ratio bumping up 1 percentage point going to 49%. If we go for the Danish market, Danish market was performing strongly in the quarter and came in on SEK 1.8 billion in sales. We have seen an organic growth of 6% in the Danish market. And then we have an FX effect, which brings us down 5%.

So Denmark is showing an EBIT and improved the EBITDA margin and here, we have had quite significant improvement ongoing the new business that is coming on in Denmark is coming in with good margins. And the nonprofitable business or low profitability business that we have had in the books is gradually decreasing in volume. So EBITDA margin of 4.3% compared to 0.1% year-over-year. The order intake in Denmark is up 78%. And it's largely explained by 1 big order. Of course, Denmark has a lot of order intake that is coming in, in the quarter as well. But 1 big order in an industry company is coming in and really increasing the order intake for the quarter, the backlog is increasing with SEK 1.1 billion. So Danish market really performing on its best side we are, to Mattias' point, expecting that the Danish market will continue improvements in the second half of the year as well.

Going for Norway, the Norwegian market came in on a revenue of SEK 1.3 billion. Also Norway was impacted by an FX of 5% and but altogether, the organic growth is showing a negative number of 13%. Totally, that makes a negative 18% in Norway. In Norway, we are comparatively seeing a big decline partially because of the very good production and high production in Q2 in 2024, where a number of projects had a high production. Growth in installation business, negative 27% and then explained with the installation going down year-over-year due to high production in Q2 '24. Services business is down 10% and that brings the Norwegian ratio of services to 59% of the sales, which is quite high. Norway is also showing a good improvement in the EBITDA margin despite the decline in top line and have been working on both getting the unadjusted margin for projects on a good level as well as decreasing the administrative costs. So 5.9% for the EBITDA margin. Order intake unchanged in the quarter, and the order backlog is improving for Norway with SEK 143 million sequentially.

And then we go to Finland, which came in on the top line on SEK 0.6 billion, and Finland is showing a growth of negative 15%. We have a soft market in Finland and are selective in what contracts we are taking. So there is ongoing tenders and discussions. However, we are selective not to get nonprofitable business in. And we can also see that Finland is doing a good job on securing that the they are having the right organization to the market and the market development. So the EBITDA margin comes in on 2.7%. And which is a decrease from last year, however, a very good stabilizing of the EBITDA margin, considering the market situation they are in. Organic growth sorry, order intake is decreasing 7% year-over-year.

But also here, we are seeing a sequentially unchanged order, and it's a stable market in that sense. So just touching on the cash flow and operating cash flow then. So as Mattias was saying, we are down on the cash flow -- cash conversion to 80%. We do have some puts and takes with accounts receivables going down -- going up and accounts payables going down and some other movements. However, the main explanation to the cash situation is 1 large contract that we are having, which has built up contractual assets, it's nothing strange or odd.

There are milestones that need to be ticked off before billing can be done in collection. We are expecting that to happen in the second half of the year. then touching briefly on our financial positions. So with the cash balance, term loans and revolving credits, commercial papers leasing, we have a net debt of SEK 3.1 billion in the quarter. and that then brings the net debt to EBITDA margin to 1.4. So that is what I had on the cash situation, and I'm handing over to Mattias for bringing us back on to the market outlook.

Thank you, Petra, for that gift. I think the market outlook is something everyone is interesting, of course. And I think you can say overall, the market have stabilized even if it's still a tough market. It has stopped to go down. It is most activity continues to be stable. The service part, where we have some smaller projects, for example, renovation of offices, et cetera, when someone is leaving a building for signing new contract and the tenants have to move in a new -- or the owner have to move -- have to be a new tenant, then there are changing to be made.

And I think that activity will most likely go up a bit. That has been down for a while. Of course, we see continued challenges in the installation, and there are definitely variations between the different geographies. As we have seen, Denmark -- marketing Denmark seems to be fantastic. It is in some places, but also in Denmark, we are struggling in some areas as well as we are in Sweden and Norway, where we have some great places and some other places where the market is very, very low.

There are though favorable areas that we still continue to see a good demand within and this, of course, infrastructure, defense facilities, some parts of the industry investments and civil engineering. And that gives us, and I think maybe a company to Bravida better opportunities than the average company in the sector because we have the knowledge, we have the resources. We are in the places where those projects are going to be built. We all have the competencies from the first part of the change the design. We have the management capacity, and we have a lot of resources we can help our customers and help them deliver quality and the services in the time they are expecting.

In this market, we will absolutely retain our focus on margin over volume because chances to grow in this business, of course, but that means that you need to participate in a price competition that we think is silly or not good enough. I think we have shown in the last 5, 6, I don't know how many quarters we have had a tough market that we have been able to be selective, but also continue to deliver margin that is stable over volume, absolutely. And the market will -- due to external companies who are experts in this area, they say that the market will probably be pretty much the same in the last 2 quarters of this year, but then we expect the market to pick up in '26 and '27.

And in some areas, actually, the forecast is that they will pick up quite a lot. But let's see what happens. That's too early to say. A summary of the second quarter '25. Sales is down 9%. Installation is down 12%. Service quite stable, even if we have lost some small projects on the service side as well. We have a negative organic growth at 8%. We are growing from acquisitions, increased order intake in Denmark year-over-year. Order backlog is increasing in Denmark and Norway. And remember what I said about the order intake in the second quarter. it is the second highest we ever had. So I think that is showing something at least in a tough market.

Improved EBITDA, improved margin, fantastic when we are facing this tough market condition, and it is a combination of being selective of contracts we're entering into a good, great cost control. good productivity, but also a better pricing and better contracts, especially in Denmark, and that is the results we're seeing now. We see an improved EBITDA margin in all countries, except for Finland and Sweden, Norway and Denmark are improving the margin. And then we have conversion at 80%. Petra just told you that we have some milestones we need to reach before we can invoice the sum of money that actually take the cash conversion back to the same level as last quarter, and that is expected to happen during the coming 2 quarters.

On the ESG side, we are improving the LTIFR number and we are improving the CO2 emissions. And then finally, we are improving the EPS with 13%. So with that, Petra and I, Petra, for the first time, open up for a Q&A session, and let's see how we can handle this together, but I think we will manage quite okay. Let's see.

I think we will. You will.

We will together.

[Operator Instructions] The next question comes from Carl Ragnerstam from Nordea.

It's Carl here from Nordea. A couple of questions. So firstly, Mattias, you're guiding for quite some uptick in activity in the market, of course, on a quotation basis. But we've heard rumors before that is a fairly okay quotation level, right? But customers has not really been ready to push the button to really getting those firm orders. So do you see that the customers are more willing to sort of push the button today to -- for you to get orders? Or is it any difference here in the quotation and uptick you're talking about compared to before?

Yes. I think just to make everyone understand your question, Carl, what we have said before. I think we started in the last phase of last year, we said that a better activity in the market regarding tenders, et cetera, in November, December, beginning of January. Then when President Trump were elected and started to discuss about all the tariffs, et cetera, that activity were paused for a couple -- 2 to 3 months. Now we can see that activity is coming back again.

And I would say -- I will say that it's slightly better quite more often, they are pushing at the bottom, as you said, because it's -- it has proved a bit, not a lot, but activity is back again, and now it seems like more projects is going to start. A small difference, not a big difference. But I think you understand me correctly that it has changed a bit to the -- a bit to the positive side, yes.

That's very good to hear. And also looking -- of course, I know that you have a high degree of variable costs that you've obviously shown in your resilience. But with the backlog sort of down now to SEK 8.3 billion versus SEK 10 billion last year. I mean, to what extent do you need to do more SG&A sort of measures or cuts in order to sort of, yes, sustain a decent margin with lower volumes, I guess, in Sweden that I'm talking about.

Yes, interesting question. And I think, the honest answer is we don't know how much, but we know that we are working on it. And I think we have shown this quarter what we have done enough. And I think I mentioned, we have actually both in absolute numbers and in relative numbers actually taking out cost that is one reason why we can present a solid margin. But of course, both me and Petra, we will continue to work on the cost side.

And as you know, Carl, it's 2 different types of costs. you have the SG&A cost centrally, as you can say. And then you have some administrative costs locally that you need or direct cost as well that you need to adjust if the local demand is increasing or decreasing, and that is part of our business model. And that is -- you are asking and discussing that more in a market like this. But that is something we are discussing even when we have a really good market because in a good market have some places where we are underperforming, et cetera.

So this is part of our daily management work, management job to do to make sure that we are adjusting cost. So to your questions, how much? I don't know. But will we work on it? Absolutely.

Okay. So you feel comfortable in maintaining the Swedish margin despite the backlog being quite a lower than entering the sort of mid-5 and onwards?

Yes. And I also think that we have done a lot already that is the reason why we can present a solid margin in Q2. And maybe we need to do more. But absolutely, in some places, we have to do more because we know we are managing this company not out of the SEK 8 billion in order backlog on Swedish level. We are managing this company because we have all integrated the same platform depending on the order backlog they have in [indiscernible] Falcon or [indiscernible].

On Denmark and other step in the right direction of or margin improvements, clearly. Would you say that the biggest steps are done, meaning that reaching the 5% or even above. Will it take a bit longer time from here and maybe be into '26 or mid-'26. Or what is your sense of -- or what is the route to the 5% from here? Would you say, of course, your fee is still facing deliveries of some tough margin projects, right? But yes, could you give some flavor into, yes, how sure you that you'll reach the 5$ in the foreseeable future here.

And I guess you're talking about Denmark now, Carl, that's how I should...

Yes, Denmark.

No, but I think we have done a lot in Denmark, starting with December, January 24, I think it was when I was an interim. And then Christian came in 1 of May in '24. And so we have done a lot since then. And Christian and his team has done a fantastic job. So first, we have started -- we have changed a lot of the management, we have changed, as you know, the why -- how we are pricing our bids and that means both in terms of risk, but also what type of ambition we have in the margin in both service and projects we have much better self-confidence in the Danish organization today because we have seen that even if we have increased the prices, both on margins as well as on risk, we still are winning a lot of projects. .

We -- in combination with a changed pricing strategy and a new management team, we have also Christian and his team has driven tough work regarding the loyalty to our Bravida Way, the way of working, but also how we follow up the business, steer it. And this is what we can see today in an improved margin. We also have a much, much more customer focus, we are working to do with customers. And we can see that the customers are more happy with our way of acting with the delivery.

They are more keen on working together with us today than they were 15 to 30 months ago. So now we are winning the right contracts to the right customers. So now it's more the next phase is up to us to show that also can have a solid execution. So path to 5% is better contracts, better way of working, better management and fewer problem projects that we have to deliver upon. So -- and we are stating, I'm stating in the report that we will be close to 5% and earlier I have said around 4.5%, I think. And that means that we are a bit more positive about the Danish organization and their performance today than we have been before, so, yes.

The next question comes from Johan Lönnqvist Sundén from Carnegie.

First one is on installation volumes. Just curious to hear how you think your order backlog when it will be activated because now we see that installation order backlog as a relation to LTM installation sales is up quite a bit and bit above 1, at what point do you believe you should be able to start growing rationales again?

Yes, that is a guidance that we normally don't give. But the big part of the order backlog increase coming from Denmark is starting not immediately. But I think you can say that, that is quite normal. It's not very long project. That will start in this year. So you can say that the new orders are not projects that will start very far ahead. It will start yes, as a normal projects normally do coming into our portfolio.

So it's not long projects that will start very, very late. It is quite many that starts right away, you can say. One example, for example, we have in Norway, where we have some good order intake as well. That has already started. So it is me.

But you don't dare to call one group...

Last report we had, we said that we are not expecting positive growth this year. We still think that we will struggle a bit on the growth side for the rest of but it will be more normal, more stabilized than before. But again, the margin is more important. I'm more relaxed to be able to present a margin improvement for you today than I had been to have had a growth expansion at the same time as we have lost our margin side because that means future problems instead. .

Just maybe a follow-up to Carl's previous question on Denmark. You're quite clear on your guidance on full year margins. How much of a plateau as do you think '26 will be for Denmark?

That is an internal discussion as well No. But as we can see a fantastic improvement from the Danish team, of course, but I think we should be a bit cautious regarding '26 as well because we are not a tech company. We are in a very mature market where prices is quite stable. We can improve our execution even more in Denmark, of course, a mix between good and bad projects can improve and will improve.

So I think I say what I've said before, '25 is a year of transition, you can say, '26 will be better than '25, but I don't think it will take us to -- you can't draw the line, continue to line up in '26. But I expect an improvement in '26, of course. But let's come back to that. Let's deliver on '25 before.

Excellent. And my final question is a little bit on the dispute you have in Denmark and Norway. You have an update on timing what to expect for those 2 dispute that will be finalized during '25 if there and potential cash inflow and that can happen?

No changes actually. The Norwegian one will come up in September. I think it's the second half of September, and will be discussed in September and October. So we won't -- I don't think we will have a result in Q3 for that one. But we will most likely now in the beginning of Q4, the result of that. And cash flow wise, I think that will come in, in this year as well. .

Denmark, the small one in Denmark is also up for arbitration in Q4. I think it was quite late in Q4. That means that we'll most likely have a result in Q4, but no cash impact until beginning of '26, I guess. That's the best estimate we can give today. But otherwise, nothing new. There has been some discussion with the Norwegian customers that actually, it gives us a bit more confidence than we had before, but nothing really new.

And if we stay on the cash flow and kind of -- you talk about milestone payments on a big infrastructure project. When do you expect your past the milestone needed for you to send the invoice.

So it's one of the big infrastructure projects that is working out according to plan. So it's actually going as contracted. We have been working for a long period on advanced payments. We have had a good cash inflow for a long time period in this specific project and contract. Now we have come into a part where we are executing on curing milestones for getting the billing and invoicing out. And we're expecting that, that will come in the second half of the year. We're actually expecting that part will come into Q3 and then Q4. So that is according to the plan. Quite a lot of buildup in the assets, but that's how it goes in the large projects.

So a pretty strong cash flow in second half of this year should be expected in few slide. .

Well, to tell you honestly, I would have to know how the cash flow looked like because you're probably going to compare, we're all going to compare with last year. I can't really say that.

But I think it's...

But we're expecting cash in from that project, absolutely.

And also, we have quite many big projects, large projects now where we have had a lot of pre-invoicing or will have pre-invoicing and those projects also impacting the history a bit. So it's not as normal as before, but we have been quite successful in negotiating good contracts, et cetera. So -- but we expect -- we have a target at around 100% cash conversion, and that is what we try to deliver upon. .

And we're expecting an improvement from today, absolutely.

[Operator Instructions] There are no more questions at this time. So I hand the conference back to the speakers for any closing comments.

Thank you. We know there is a lot of companies who are reporting today. and maybe there are some vacations as well or maybe it's because we -- you can find all the answers in the report, I don't know. But again, a tough market, but I'm so happy to be able to send an improved margin, improved increased earnings, EPS up to 13%, and that is a result of hard work in many places from many people within Bravida.

So I want to say, thank you to all employees. Thank you to all customers. Thank you to Petra for the first report together with me. It feels fantastic to have Petra on my side. And with that, we say thank you and wish you all a great summer.

Yes. Thank you, and have a great summer.