Kalmar-b Share Aktie

Good morning from Helsinki, and welcome to the webcast on Kalmar's interim report for January-March 2026. My name is Carina Geber-Teir, and I'm heading the Investor Relations at Kalmar.

Today's results will be presented by our President and CEO, Sami Niiranen; and CFO, Sakari Ahdekivi. At the end of the presentation, as usual, we will have our Q&A session where you can ask questions.

I would like to remind you that this webcast is recorded. It will be available on Kalmar's webpage later today. And please pay attention to the disclaimer as we will be making forward-looking statements.

We are now ready to start the presentation, so I will hand over to Sami. Sami, please.

Thank you very much, Carina, and good morning, everyone, from Helsinki. It's my pleasure to present Kalmar's first quarter 2026 results.

I'm starting with an overview of the first quarter of the year. Overall, we saw stable demand, although geographical instability has increased in the past months.

Firstly, our order intake continued on a sequentially stable level, although when looking at the year-to-year figures, it decreased 6% due to a high comparison period. On the other hand, our sales grew by 5% to EUR 420 million and by 10% in constant currencies.

Our eco portfolio sales was on a good level, but fully electric order intake was soft. I will revert to this in a bit. And our overall profitability improved, although there were some operational shortfalls in our Services segment. Our driving excellence initiative continued well. Sakari will cover this in more detail in his part of the presentation.

Operating cash flow for the quarter was good and our balance sheet is strong. Looking at 2026, we keep our guidance unchanged. We expect Kalmar's comparable operating profit to be above 12.5% in 2026.

Let's now have a closer look at the orders received. As I mentioned, overall demand for our equipment and services was relatively stable across different end customer segments. Orders received were sequentially stable. They decreased 6% year-on-year, but only 2% in constant currencies. The decrease was due to a strong comparison period.

In the Equipment segment in the first quarter of 2025, there were some sizable orders from customers in ports and terminals. And in Services, there were a few large service agreements. We'll have a look at the geographical breakdown of order intake on the next slide. Finally, our order book remained essentially unchanged.

Looking at the overall demand environment, there was continued high interest in our sustainable solutions across different customer segments and regions. Here, you can see the geographical split of orders across our reporting segments.

EMEA, 48%; the Americas with 36% and APAC 16% of orders received. Essentially, we got more orders from Americas and APAC, while in EMEA, order intake decreased, which is explained by some sizable orders in the comparison period.

In Americas, the distribution end customer market showed gradual recovery and our order intake grew by 6% year-on-year. And in APAC, order intake grew 16% and the growth came mainly from Oceania.

Then to sales per segment in the first quarter. Sales grew by 5% year-on-year to EUR 420 million. In constant currencies, our sales grew by 10% from the first quarter of 2025. Equipment sales increased by 7% and Services by 2% year-on-year and Services share of sales was 35%.

Now let's have a closer look at our sales in each geographical region. We saw a positive sales development in all regions during the quarter. In both EMEA and the Americas, sales grew, driven by growth in the Equipment segment. In the APAC region, the Ports and Terminals end customer segment performed well, driving the sales up by 9%.

Our eco portfolio sales grew by 10% year-on-year to EUR 187 million. The share of total sales for our low-carbon solutions covering electric, hybrid and sustainable services increased to 45%.

Fully electric machines share of equipment orders for the last 12 months decreased to 9% from 11% a year ago. In the coming quarters, we will expand our electric portfolio further. This will increase our competitiveness and meet the customer needs in the different end markets.

Let's now take a closer look at the profitability for the first quarter. Our comparable operating profit increased by 8% year-on-year to EUR 52 million from EUR 48 million a year ago. As you can see in the comparable operating profit bridge on the right, the main driver was higher volumes. Additionally, good commercial execution contributed to improved profitability in the quarter.

We maintained a solid comparable operating profit margin at 12.3%, which is 3 percentage points higher than the comparison period despite the negative impact of tariffs. Kalmar has a well-diversified business portfolio globally with 4 end customer segments. As I've already mentioned, Services share of sales was 35%.

Our eco portfolio remains an important driver towards our climate target, which is part of our performance targets until 2028. The sales of the Eco portfolio increased in the first quarter and was 45% of total sales. We have a team of approximately 5,300 passionate employees worldwide who are dedicated to executing our strategy.

We have continued to demonstrate a strong ability to adapt to changing circumstances and we are executing our core strategy by staying close to our customers' evolving needs regardless of the geopolitical weather.

The current macroeconomic uncertainty driven by geopolitical tensions leads to increased volatility in economic data, making it difficult to provide long-term forecasts.

IMF didn't make any changes to its forecast in April. Global GDP is still expected to increase 3.1% in 2026, slightly down from previous years and then stabilizes at 3.2%. Drewry downgraded their 2026 forecast as a result of the U.S.-Iran conflict and they expect global port container growth to slow to plus 1.7% in 2026 and then rise to 3.1% in 2027.

Oxford Economics has released an update regarding their manufacturing and retail forecast and the key takeaways for the 2026 outlook are as follows: in manufacturing, the 2026 growth forecast has been slightly revised upward to 3.2%. Despite this upgrade, the growth rate is expected to slow slightly compared to 2025 levels. And in retail, the 2026 forecast has been revised upward to 2.8%.

Building on the external market estimates from the previous slide, let's look at the current demand outlook for Kalmar. We anticipate that the total market demand for the next 6 months remains approximately at a similar level as in the previous quarters, with the caveat that trade tensions and increased geopolitical instability could have an impact on our markets and the demand from our 4 end customer segments.

Next, an update on the status of Kalmar's connected fleet. In the first quarter, despite the increased geopolitical unrest towards the end of the quarter, our connected fleet activity stayed on a stable level.

The ongoing conflict in the Middle East is creating disruptions in logistics routes and results in extended transit times, which also creates a shift in fleet activity between different customer operations depending on the locations.

Our installed base has grown steadily to over 70,000 machines from 68,000. At the end of 2025, we had over 16,800 connected equipment globally compared to 14,500 equipment at the end of 2024.

Here, you can see new orders announced and added to the first quarter order book. Firstly, we received an order for 2 hybrid straddle carriers for the training center for Harbour Workers OCHA in Antwerp, Belgium.

We also booked a large order from our long-term customer, the Port of Tauranga in New Zealand. They ordered 6 hybrid straddle carriers and 1 electric straddle carrier from us. And we got a significant order for 14 hybrid straddle carriers to PSA Antwerp in Belgium.

Let's then continue to our actions driving sustainable growth. Our 5-year Move2Green programme, co-funded by Business Finland has been running for 1 year now. Since the launch, we have 68 new ecosystem partners and we have started more than 20 internal R&D projects with a focus on future growth horizons.

In the second year, we will leverage our ecosystem and launch new ecosystem projects. We also earned top recognition from EcoVadis and CDP and this reflects our collective effort to embed sustainability across our operations.

We were awarded the EcoVadis Gold Medal, placing us in the top 5% of all companies evaluated worldwide. In addition, we secured a place on the CDP A list for climate change.

And in the first quarter, we also launched the TT7 terminal tractor to the European market. The TT7 is specifically designed for the demanding requirements for customers in Europe. It's a robust and reliable solution for port terminal, yard, distribution and logistics operations.

We believe that sustainable growth is driven by our own operations, but in addition to that, by deepening strategic cooperations and partnerships with leading players and institutions.

An example of this is that in March, we donated EUR 100,000 to Tampere University to accelerate the development of key technology areas that are vital for sustainable innovations, especially focusing on electrification, automation, AI and digitalization.

Moving into a short summary of financial highlights before handing over to Sakari. All in all, if you compare the performance between the 2 segments, it was clearly mixed.

Our sales grew and overall profitability improved, but at the same time, we faced operational headwinds in our Services segment. Orders received decreased year-on-year, but that was mainly due to the high comparison period.

Comparable operating profit improved in the Equipment segment, but the Services segment's profitability continued to be burdened by tariffs and challenges in the spare parts sales in North America, partly due to the sluggish market activity in the region.

We continue implementing proactive sales growth, commercial excellence and cost optimization actions and we are confident in our ability to improve the profitability of our Services business.

Finally, I would like to wrap up my part by highlighting that we remain committed to our strategic priorities and driving sustainable growth by leading the industry with innovations towards automation and electrification, expanding our Services business and presence and pursuing operational excellence to ensure long-term value creation in line with our 2028 targets.

I'm sure you have all noticed the recent announcements concerning Kalmar leadership team, but here is a brief recap of the announcements that we have made. We have announced that Sakari Ahdekivi will leave his position as the CFO as of 30th of September 2026 and that Katri Hokkanen was appointed CFO and a member of the Kalmar leadership team no later than 1st of October 2026. Sakari will remain with Kalmar until the end of this year to ensure a smooth transition.

We also announced that Thomas Malmborg will step down from the role of President of Services and member of the Kalmar leadership team. Tamara de Gruyter was appointed President of Services and a member of the Kalmar leadership team as of 1st of September 2026 and Thomas Malmborg will remain with Kalmar until year-end to ensure a smooth transition. I want to thank both Sakari and Thomas for their contributions for Kalmar and the future growth of the company.

I will hand over now to Sakari. So thank you for listening.

Thank you, Sami, and good morning to everyone on the lines. I'd like to start my presentation by pointing out that Kalmar's financial profile has remained strong, providing us a solid basis for future growth.

Our order book has stayed at a healthy level of around EUR 1 billion. Orders received for the last 12 months were approximately EUR 1.8 billion.

Due to the good operational execution and successful management of costs, our comparable operating profit margin on an LTM basis moved up a notch and was 12.9% at the end of March.

Our balance sheet has been further strengthened. And at the end of March, our leverage ratio was actually negative, which is well below our long-term goal of a maximum of 2x. Finally, our cash conversion on an LTM basis was 80%.

Moving into the segments and starting with Equipment, where the development was stable. In the first quarter, orders received decreased by 6%, but from a strong comparison period with some sizable orders, which Sami already mentioned and on top of that, also some FX impact. Order intake decreased in the EMEA region, while orders increased in Americas and APAC.

Equipment sales increased 7% year-on-year. Profitability of the Equipment segment improved both in absolute and in relative figures. Comparable operating profit grew by 17% year-on-year and 1 percentage point in terms of margin.

On the comparable operating profit bridge on the right, you can see that it was a result mainly of higher volumes. Of course, good commercial execution also contributed to improved profitability.

Comparable operating profit margin was 12.6%. We proactively mitigated the majority of the tariff-related impacts, although there were still some small negative impacts on margins within the segment in some of the product lines.

Then moving over to the Services segment. It has to be said that in the first quarter, Services order intake was soft. Orders received decreased by 6% and totaled EUR 149 million. This was -- the drop was mainly because of the comparison period, which was high due to a few large service contracts.

Services sales increased by 2% despite market turbulence and totaled EUR 148 million. Services profitability decreased year-on-year and this is against a strong comparison quarter in '25, where we had a COP margin of 19%. Comparable operating profit decreased by 14% in absolute terms. The decrease was driven by various external and internal headwinds.

There was a negative impact from tariffs and there were challenges in spare parts sales in North America. We continue cost optimization as well as targeted sales growth and pricing actions and we are very confident in our ability to improve the profitability of our Service business going forward.

Then a brief glimpse on the tariff landscape. We see that the tariff landscape is currently unchanged. However, we continue to monitor the landscape closely. As in the previous quarters, our responses to tariffs have included mitigating actions with price increases, supply chain actions and other operational excellence initiatives in our operations as well as some documentary requirements.

The ongoing conflict in the Middle East is driving cost increases in fuel prices and is creating disruptions in logistics routes. This results in potentially extended transit times, increased freight costs and also potential component shortages.

However, so far, direct impacts to Kalmar sales have been limited. But in the first quarter, there were indirect impacts through increased freight and fuel costs.

The share of Middle East in Kalmar sales is a low single digit percentage of our total sales. This map shows the ports and terminals that can be used to bypass the blocked Strait of Hormuz. And why I'm showing this is that, of course, while there are certain ports which are impacted negatively by the conflict, there is also some opportunities which arise in the other ports, which are not directly impacted and are used to bypass.

Then shifting gears and moving into the driving excellence initiative. And as you remember, our target is to reach EUR 50 million of gross efficiency improvements by the end of 2026 run rate. This is proceeding as planned and the status is that by the end of March, a run rate of approximately EUR 40 million of annualized gross efficiency improvements have been secured.

As before, the majority of the improvements secured originated from successful sourcing activities and then to a lesser extent, from process improvements.

Our capital -- return on capital employed has also increased or improved rather and at the end of the first quarter, this was at 24.2%. And there has been quite a stable upward trend since the beginning of -- well, for a while, several quarters now. And our target here is over 25%. So we are getting closer to the target.

Our balance sheet was further strengthened during the quarter. Our leverage was negative at minus 0.1x, well below our long-term target of a maximum of 2x and our gearing stood at 5.2% negative.

And this is before dividends were paid in April. The decrease in interest-bearing net debt, which improved our leverage ratio was primarily a result of solid cash generation from operations.

Our debt maturity profile remains unchanged. Our liquidity position is strong at EUR 521 million and this includes an undrawn EUR 200 million revolving credit facility, which matures in 2030.

On this slide, you can see our cash flow. And in the first quarter, we had a very solid cash flow from operations before financing items and taxes amounting to EUR 67 million. And as said before, our cash conversion for the last 12 months was at 80%.

Finally, as Sami mentioned in the beginning of the presentation, our guidance for 2026 remains as follows: Kalmar expects its comparable operating profit margin to be above 12.5% in 2026. And finally, here, you can see the summary of our interim report of the first quarter. I won't repeat the points here.

I will finish my presentation so we can move to Q&A. Thank you for your attention. And now welcoming back Sami and Carina for the Q&A session.

Thank you, Sakari and Sami. And I think the audience is eager to ask us questions. So I'm handing over to the operator, and you may open the lines.

[Operator Instructions] The next question comes from Mikael Doepel from Nordea.

So a couple of questions from my side to begin with. So first on the Service business. And I think you mentioned some problems with the North American spare part sales. Maybe you could just talk a bit about that, what's happening here and how you expect this to trend going forward?

Yes. So let me start and continue what I mentioned in the presentation as well on the sluggish market, the market demand was soft. So that was the primary reason for, I would say, rather low spare part sales in North America.

And of course, when we are losing the spare part sales, of course, it's changing the mix in our Services portfolio or Services sales in total, of course, impacting the profitability as well.

But I would say the slow market in North America, of course, it has been sluggish, a little bit longer period already. So it's nothing new as such. But of course, the uncertainties, the crisis that we faced and faced in Q1 as well and increased uncertainty levels in different parts of the world, of course, impacting quite a lot in North America. And the tariff situation as well changed during the quarter. So that has been very volatile and fluid overall.

So of course, the overall uncertainty level, it impacts our customers as well as the dealers, of course, the buying sentiment. And that's what we faced in North America and impacting our spare part sales.

And when it comes to the -- if I elaborate a little bit, okay, now it's too early to say about big change maybe in April compared to Q1, we can say. But of course, what we are doing already since long time ago, so this is nothing ad hoc that we have invented in Q1.

But of course, we continue our services focus all over the world, of course, not only focusing on North America, but everywhere basically growing services in different areas, improving the profitability, but we will be even more targeted with our sales actions, more proactive with our customers and dealers.

And then, of course, working on the strategic pricing as well. I mean, the commercial excellence part that I mentioned. And then, of course, cost optimization is important as well because we are in Services as well as in the whole company, volume-driven, pretty volume-driven operations. So therefore, it's important that we have the cost team fitted for our demand.

Okay. And on that point, I think you mentioned that -- I mean, obviously, the margins were quite weak here now. And I guess part of the reason has to do with the mix in the business, which based on what you're saying is unlikely to improve very much.

You also mentioned tariffs still having an impact. I'm just wondering about these mitigation actions. I mean, maybe a bit more concrete comments there, exactly what are you doing? And perhaps more importantly, how fast do you expect to see the results, i.e., I mean, when should we expect the margins here to, let's call it, normalize? Is it in the second half of the year or earlier, later?

Yes. What I can say is that I'm confident that the margins will improve. And what I can say on the timing is that in coming quarters in plural, I mean -- so definitely, we have a lot of actions, good actions in place. And one thing, of course, related to North American market is the distribution center, the world-class distribution center that we put up or changed the location last year.

So now it's fully up and running, of course, and now it's time to leverage that Greenwood distribution center and provide our customers, dealers with the fantastic availability of the parts. So that's something, of course, that we are continuously working on.

And then the proactivity as such, of course, visiting dealers, customers and we have a large fleet, operational fleet in North America, of course, a lot of them related to terminal tractors.

So of course, going to those customers and dealers on a constant basis and offering them our valuable solutions, of course, that is the base as well. So -- and then, of course, we can be even more targeted with certain sales activities and that's what we have put together now in Q1 as well.

So I think those are pretty concrete actions on the offensive side. On the defensive side, of course, we need to look at our cost as well because we have invested in new services in the distribution centers in both Europe as well as North America during the last year, of course. So the costs have increased a bit. So of course, we need to be cautious with them as well.

So it's very much the volume and pushing the sales to be order -- in order to be able to then leverage the infrastructure that we have.

Right. But on that point, I think, I mean, pricing is obviously one tool as well here, but you're not mentioning that. So is it fair to assume that the competitive landscape is pretty tough, you won't be able to mitigate, for example, cost inflation slowly or tariff with the pricing, so you need to compensate through volumes and internal cost takeout. Is that the right way to read it?

I think you mentioned strategic pricing and commercial excellence activities that was in the presentation as well. So yes, absolutely, that is part of it. And I think we have improved the mitigating actions in Q1 compared to last year when it comes to Services in North America, of course.

But of course, like the tariff landscape, when it changed now in Q1, of course, we need to adapt to different situations. So it has taken some time to adapt to the new price levels and increase the prices.

But of course, there are limits also with our customers and dealers, how much you can increase the price. But of course, the aim is to mitigate as much as possible. But I'm quite happy with the situation what we have now in Q1 when it comes to mitigating actions still, we face some dilution because of tariffs. That's the reality. And that was the same with equipment as well.

Yes. Okay. And then just finally, just switching gears a bit here. So looking at the Equipment business, how would you describe the sales funnels here going forward? I mean, if you look at the various regions, the various segments, I mean, what are you seeing heading into Q2?

Yes. I think for the next 6 months, next 2 quarters, I think the market demand pretty similar, stable compared to the previous quarters. Similar type of statement what we did a couple of months ago in the previous reporting as well.

So that's what we see. The demand is stable, I would say, worldwide in different end customer segments. I think ports and terminals is still pretty active. The distribution end customer segment has been the slowest one. Now we saw a bit of a gradual improvement like last year, exactly at the same time for terminal tractor business in North America.

Let's now see depending on the conflict situation, uncertainties, of course, how that will evolve in the coming months. But I think the stable market demand, I would say, overall.

Then, of course, Iran-U.S. conflict, if that starts impacting more largely the cost of money inflation, Asian business or Asian operations, I mean, in the global scale, of course, that might have an impact. But as we see today, I think a stable market outlook.

The next question comes from Panu Laitinmaki from Danske Bank.

Firstly, going back to the service topic. Just thinking about the U.S. spare part demand, is it that the customers are kind of delaying buying spare parts? Or is there lower activity, so they need less spare parts? Or is it that they can buy third-party spare parts if you have increased pricing due to tariffs? So just thinking kind of what is driving the lower demand?

Yes. Good points, Panu. And I think overall, of course, if you look back a little bit and even look at the connected fleet and the operating activity last year, last years, of course, it was quite a decline in the fleet activity in the past, okay? Now last couple of quarters, it has been flattening out so that we have seen even some low single digit positive indications, percentages in the fleet activity.

So I think overall, the activity is still very slow and that's what we referred to with our sluggish market environment statement as well.

Then, of course, the tariff situation at the same time, price increases, it's not helping the situation and it creates uncertainties that even with customers, dealers, of course, it creates thinking about, okay, what will be the pain point on the spare part pricing.

So I think it's a combination of all this. But the market despite having 1% increased activity year-on-year or quarter-on-quarter is not changing the big picture that much. It's still quite a slow market in North America.

And maybe adding to Sami's answer there, if you look at the -- he was talking about the mix and looking at our dealer network. So they are very highly using our kind of web services and buying online and the online share of sales is high in U.S. and also a very profitable part of the spare parts business. So that's good to keep in mind.

Secondly, on costs, so actually 2 things around that one. Just on the group costs, it was down in Q1. What should we kind of model for the coming quarters or the full year? And then on the excellence program, so you now have reached EUR 40 million run rate. How much of that should we expect to have a net impact on your EBIT in '26 and next year?

Yes. If I cover the group cost question first, then I'm not expecting any major changes in that compared to what we have in the first quarter. And then maybe something which was interesting is that our associated company turned a profit in Q1, which, of course, helped compared to a loss 1 year ago.

But then on the driving excellence, well, we haven't actually given out exact numbers on that. And of course, you have to remember that we started this program at the beginning of '25.

So the increment from full year to current was from EUR 34 million to EUR 40 million. And then you have some carryover from the activities that were done last year and then the new actions, which always then hit the P&L with a lag because first, you have a new price with a new contract, then it comes into force a bit later, then you have some inventory and before you actually use the new price and new revenue, it takes some time. But I think you should see similar impacts to what you see -- saw in '25.

Okay. Then as a follow-up. So should we think that the kind of net impacts are like half of that is still ahead of us? Or have you already achieved most of that or kind of where you are now given that you mentioned you have a lag from implementing this and seeing this in the P&L?

Yes. As said, I think you should continue to see similar for now. So if the run rate now is EUR 40 million and we're going for EUR 50 million, then of course, it means that we still have impacts coming from back end of last year into this year's P&L.

But it's complicated because then you have the tariffs and the pricing and then you have the sourcing savings and then that all shows up then finally in the margin. So it's a mix of many things.

Okay. Maybe a final one on capital allocation. So you had net cash in Q1. Do you have any comments on the capital allocation as you are now clearly below your own balance sheet targets?

Not really new comments. The only thing I would say is what I mentioned in the presentation that, of course, the cash position didn't include yet the dividends, which were paid out after Q1. So that, of course, has then an impact. But other than that, no new comment.

Yes, full focus on our organic strategy that we have in place, of course, being or staying as a good dividend payer and then focusing on R&D innovation in total as well as Services, of course, and keeping our factories and innovation centers in a good shape.

And then we did announce a share buyback, which, of course, has to do with our incentive programs.

The next question comes from Tom Skogman from DNB Carnegie.

This is Tom from DNB Carnegie. Looking at the details, I can see that there's a pretty big step-up in depreciation in Q1, explaining perhaps a bit of the EBIT kind of challenges. Can you open up what this is about? Is it about the new service centers, for instance? Or what is the reason? And is it kind of continuing in coming quarters?

Well, I would say, Tom, that it has to do with certain CapEx that was done or implemented, of course, now in the recent past. But other than that, of course, then there's nothing exceptional in that. So that would -- should -- we expect to continue.

And is it more on the Service or the Equipment side?

Well, the CapEx is more on the Equipment side.

Okay. And then the PPAs, they are not big, of course, but can you just give guidance on how long they will continue?

Sorry, Tom, can you repeat that?

The PPAs, they are, of course, not that large, but can you just give an update on how many years they will continue?

I don't have a number of years for you. We'll have to come back, Tom.

Okay. And then about the new electric machines, I saw that the share of orders last 12 months is down to 9% from 11%. So I mean, how big impact should we expect from these new products? Can you open up a bit more? I mean, how big part of your products will get new models now in the next couple of quarters that could turn this trend around?

Yes. That's a good question. And yes, exactly right, 9%, that's the level where we are as of today. So we have been hovering around 10% in the last couple of quarters, of course, I'm not completely happy with the situation. And therefore, of course, we will act accordingly in the future and launch some new products.

But I would like to maybe go a little bit back to last year, what we did with the next-generation batteries already and which have been implemented to both our counterbalance equipment as well as the horizontal transportation equipment. And now in April, okay, after Q1, of course, we saw an order coming from Brazil, for instance, including those next-generation batteries.

So I think that was one of the major product upgrades or launches what we did last year already, which we expect to really deliver more positive results in electrification and fully electric machines. So that was one that we did already in 2025.

Now the coming ones, I would say, in the next couple of weeks or months that we will talk about a little bit more, of course, we are -- we will be completing our portfolio and expanding to certain regions, other countries as well.

So no numbers about how much that will impact, but they are very important product for us. Of course, we have a wide portfolio already as of today, but it's a part of our white spot strategy, as we call it, territory management to look at where we can grow.

And of course, the interest in electrification, that is very high. The decision-making takes time still. So it's not quick decisions. But I think by putting together our well-performing portfolio and the customer feedback on the electric machines, I think that will give a good base, the Services part as well.

And always when we are selling the electric machine, we try to attach some kind of service offering there. I think those actions together with the new launches, product launches will, of course, give a positive impact going forward. So I'm positive with the electrification going forward, absolutely. And I think the customers' interest has remained high up until today.

Yes. And as a reminder, for the clarification, quite often when we talk about the electrification, the light forklift truck market is the one that is the furthest in fully electric equipment. The heavy machinery is behind that. So when you compare numbers, you always have to remember that it changes if you deduct the light forklift truck market from those numbers.

But can we just get some kind of feeling, I mean, how is the line performing? How -- what -- are your market shares higher or lower in electric machines if you look at then lighter and more heavy product? I think this is very important for investors to understand whether you are like a winner from electrification or whether you struggle to keep your market shares and the technology is shifting.

No. I think when we talk about medium, heavy machines, of course, we are strong there as we are with our eco portfolio and diesel machines as well. Of course, the lighter we go in the range, of course, towards 5-ton machines and so forth, then there are more players around, of course.

Then the competitive landscape, it varies between different regions. We have previously talked about, I think, a tougher market in Asia, for instance, even in the emerging markets because there are more competitors around there. But I think our strongholds, North America, Europe and so forth, I think we are well situated there.

And when we look at the portfolio as of today and then when we add a couple of more products there, including the next-generation batteries that we launched last year already, I think we have a sound portfolio to grow further.

Okay. And then finally, about the spare parts in the U.S., do you see that the challenge is bigger in kind of spare parts where you compete with the likes of Volvo and Cummins or in kind of more Kalmar-specific spare parts in hydraulics?

I think it's building from the lower or low market activity as such on different equipment, of course, but we have a lot of terminal tractors out there and that market has been down for quite some time. We talk about maybe 2 years -- previous 2 years. So I think that has not really picked up.

And we saw a bit of gradual improvement last year at the same period, which slowed down again. And now we saw a bit of a gradual improvement with terminal tractor sales, which is great.

But let's see how it continues now going forward. So those have the relationship there. And then it's both commercial parts as well as, of course, Kalmar-specific parts. But the higher the captivity or capture rate on Kalmar parts we have on our machines, of course, the better likelihood we have to sell them more.

[Operator Instructions] The next question comes from Antti Kansanen from SEB.

I wanted to still come back to the U.S. spare parts situation currently. I mean, looking at kind of the activity of your connected fleet in the past 12 months, it's been a bit up and down, but fairly stable in the U.S.

I just wanted -- maybe you could provide a little bit more color on the magnitude of the volume drop in the spare parts business in the past couple of quarters where you have seen the negative impact on the margins? And also, how much is pricing impacting on, let's say, Services sales and orders that you have taken so far? Just trying to get kind of the volume figures so I understand better the impact on margins.

Yes. Let's say, if I elaborate a little bit here, not very accurate numbers probably, but we can talk about in the part sales in North America, maybe 10%, 20% lower demand. I would say then the pricing part of -- pricing side, of course, that is something different, I don't know.

Of course, we have tried to mitigate, of course, the tariff impact as good as possible. And now we are narrowing down the gap between the customer pricing and the tariff levels. But still, there is a bit of mitigation to be done.

And then what hasn't been mentioned is there's also a little bit of FX impact in the Service margin.

Yes, comparing to the Q1 2025, of course, there is a bit of difference there.

Yes, sure. And maybe on the pricing side, I guess, both on the Equipment and Services, if you look at the tariff landscape changes in the past year and the recent ones in April, is there any kind of a surcharge or the net pricing impact that we should think about that is now kind of visible on the orders that you are taking right now compared to, let's say, the pre-tariff environment, how much is the price hike?

Yes. I think the latest changes that we face now, when was it, a couple of weeks ago, basically, I think on the Kalmar level, I think the tariff impact will be pretty similar to last year.

So no major change on the Kalmar level. But then when it comes to different products like the counterbalance equipment, forklifts and empty container handlers, there, the tariff -- the current tariff because of the different interpretation of the steel tariff, so the tariff will be higher, whereas there might be a little bit lower tariff on the spare parts as well as some other product categories as well. But on the Kalmar level, I think the tariff landscape remains approximately the same as 2025.

And it's good to keep in mind that the Section 122 on the -- that came instead of the reciprocal tariff, that's valid until the end of July. And basically, we don't know what's ahead. So that's why the situation remains fluid and we have to adjust accordingly.

Okay. And then -- yes, sorry, did I interrupt somebody?

No.

No.

Okay. So yes, yes. Then the final one was on a maybe more positive note on the demand and the U.S. distribution segment. So you mentioned that some improvement, some signs of improvement.

So is this something that we can build upon going into Q2? Was this something through the quarter improvement? Was it substantial? Is it just the pent-up demand kind of ending and replacement cycle starting? Or how should we think about it?

Let's wait and see. That's my comment. And let's say, the impact or the improvement, maybe it was in the same magnitude what we had last year in Q1 2025 as well. So not very major, but some kind of -- a bit more light in the end of the tunnel, a little bit more activity and orders in Q1 this year.

But now depending on the uncertainties, conflicts in the Middle East, for instance, and how it impacts the North American market or the U.S. market, for instance, when it comes to inflation and pricing and so forth, I think it's better to wait and see, yes. So a little bit too early to say. So we will come back to you in our report -- with our report in July.

Okay. Was it maybe some of your bigger key accounts ordering coming back? Or was it kind of broad-based from smaller and midsized lines or...

I think it was both. There were a couple of a little bit larger orders as well as then the bread and butter orders as well. So it was a good mix in a way.

The next question comes from Mikael Doepel from Nordea.

Just a very brief follow-up on the Middle East. So you talked about your revenue exposure there, you talk about experience some cost increases. Are you able to quantify those cost increases?

I mean, what's the magnitude that you're seeing or have seen in Q1? I mean, and what do you expect into Q2? And do you have any clauses or hedging in place that's going to affect you? Or how are you dealing with the situation?

Good question. So in Q1, very minimal impact on the cost side, I would say. So on the negative side, on a positive note, I can mention that we have won some orders in that region as well. So it's not only bad for our business. And that's what we have been saying that when the geopolitical changes occur, of course, there might be new business opportunities as well.

But on the cost side, nothing major in Q1 when it comes to coming quarters and our contracts, I think we are quite well protected with our contracts. We have different kind of freight contracts, of course. And then we need to look at both our contracts with our suppliers as well as with our customers.

So it's a mix of different things and including maybe pass-through pricing mechanism as well. So -- but we follow up on the situation and should the crisis conflict prolong, of course, then the risks will increase definitely.

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

Thank you all for active participation and good questions. I think we are heading towards the end of this session and going forward to see you online and also face-to-face in the coming quarters.

I would like to remind you that our first -- our results for the first half of 2026 will be published on the 22nd of July. And thank you for now from Helsinki, and have a nice rest of the day. Thank you.

Thank you.

Thank you.

I hope you can hear us from the meeting room. Good afternoon, and welcome to our Pre-silent call for the first quarter of 2026. My name is Carina Geber-Teir, and as most of you know I'm heading the Investor Relations at Kalmar. And today, as always, Sakari Ahdekivi, our CFO, will start with a short summary, and then we will answer any questions that you may have at the end of the session. And please also note that this session will be recorded and the recording will be available later at our Investor Relations website. With these words, Sakari, I'll hand over to you.

All right. Thank you, Carina, and good afternoon from Helsinki, and welcome to our Pre-silent call also from my side. So -- if we look at the agenda for today's call, it is the typical one. So we'll have a recap of the previous quarter and in this case, also a little bit on the full year '25 highlights. Then we will cover the orders booked and communicated during Q1. And then we'll speak about the latest market indicators for 2026 and onward. And then we'll have a Q&A at the end. So that's the very straightforward agenda for today's call.

If we move forward and look at the Q4, just to remind us where we left off last time, we had a record high order intake and solid sales growth in the quarter. Orders received reached a record level of EUR 511 million. which was higher than the comparison period, even though also that quarter was a very high one back in 2024.

Overall, we said the market demand remains stable. However, the uncertainty and trade tensions were, of course, present also during that quarter. Our services orders increased to a record high level across the entire service portfolio, which was another positive in the quarter. And the equipment orders were then boosted by a couple of sizable orders.

Our sales growth was 11% in the quarter and reached EUR 487 million. We also had a strong operating cash flow in the quarter, and that was positively impacted by a decrease in inventories as we were able to deliver the high sales number. And then what's not visible on this slide is that the profitability in the quarter was 12.4%, and that was compared to 12.1% in the comparison period in 2024.

Then moving on to look at the orders received picture a little bit more in detail by region. It was the Americas that drove the growth in the orders. However, I would say that in -- across all of the geographies, the situation was quite good. So although in EMEA, there was a decline in orders that was mainly due to the timing of larger orders in the comparison period, whereas in the Americas, the order intake was boosted by some larger orders. In APAC, the orders received was stable in the quarter.

And regarding the demand environment, just to elaborate a little bit on that. So demand remained good with imports and terminals, sequentially stable in manufacturing and heavy logistics. The uncertainty still prevailed in the distribution end customer segment in the Americas, impacted by trade tensions and some decision-making timing there. But otherwise, overall, a good demand environment in Q4.

Then having a look at the full year. So for the full year, we delivered an orders growth of 8% and orders growth came from both the equipment and the services side. So we were able to grow actually faster than market growth in 2025. When it comes to the eco portfolio, also there, a good growth. So the eco portfolio grew slightly faster than the overall orders.

And profitability-wise, we were able to grow the absolute comparable operating profit by 3%. And relatively, we reached 12.8% compared to 12.6% in the previous year. And cash flow, thanks to the strong fourth quarter was also good for the overall year. And actually, our net debt at the end of the year was only EUR 5 million.

Then if we move on to the next page, 26, we have guided that we expect our comparable operating profit margin to be above 12.5%. And that was -- that's compared to the 12.8% that we reached last year, but let's remember that the guidance is over 12.5%. All right. Then just to recap the orders that we have booked and published in Q1. So there's a couple of straddle carrier orders, one in Antwerp in Belgium and the other one also actually in Antwerp in Belgium. So that's what we have published so far for Q1.

Then on the economic indicators, no big change. So if we look at the -- and this is -- the latest ones are from March. So whether we look at the global GDP or the container throughput or the global manufacturing output development, very stable compared to the previous months outlook. However, there's a slight uptick in the global retail output development.

So that has somewhat improved from the previous forecast from 2.2% to 2.8%. But otherwise, relatively unchanged, which I guess is a little bit surprising even in a way, given all the turbulence that is going on in the world. It hasn't impacted these numbers. Then -- we -- in connection with the Q4 and full year statements, we also said that our demand outlook for the first 6 months of 2026 would remain similar to the second half of 2025.

We also said that trade tensions and increased global instability could affect market demands or market and end customer demand. And of course, I think we can all say that turbulence has continued and it is a turbulent and interesting world every day when you read the news. So of course, that may impact also our activities. But overall, demand expected to stay similar to the previous 6 months.

Then on the 30th of March, so last week, actually, we published some news on leadership changes, one concerning myself. So Katri Hokkanen has been appointed Chief Financial Officer and a member of the Kalmar leadership team latest on the 1st of October 2026. I will continue in my position until the end of September and also will remain with Kalmar until the end of the year in order to ensure a smooth transition and no specific drama here, if I can comment on that.

I joined Kalmar back in the summer of 2023 in preparation for the demerger and listing and was part of that and also setting up the team and getting Kalmar on the right course as an independent company. And I think we can conclude that mission accomplished. Then there is also another announcement, Thomas Malmborg, the President of Services, will also step down from his position at the end of September. He will also continue with Kalmar until the end of the year. The search for a new President is ongoing as we speak. Then maybe I'll hand over to Carina here to say a few words about our upcoming Capital Markets Day.

This is just a reminder of the date that we sent out on the Kalmar's second actually Capital Markets Day if we take the first one that was during the listing period. And the site visit in conjunction to that Capital Markets Day that will be held in Copenhagen on the Monday, the 2nd of November, there will be a site visit to Ljungby the next day, the 3rd of November. So just save this date, and we'll come back with a formal invitation then after the summer. But that's, I guess, all about on the...

I think that concludes our presentation, and we're ready for Q&A.

[Operator Instructions] Tom Skogman, you are first in line here.

I would like to ask first, how big business do you have as a share of sales in 2025 in the Middle East? And what has happened to that during the work?

Yes. I would say that, of course, it has some impact, and we have activities in the region. However, of course, it's a fairly small part of the total Kalmar. Then, of course, the -- I would say that the possible impacts are more on the cost side of logistics and things like that and how inflation and demand will be possibly impacted by the situation rather than the direct impact in the region. So especially when you put it into perspective of the total Kalmar volume.

And Tom, as an addition, the first thing or the first priority, of course, has been to make sure that our people, especially service people are safe that are in the region. So the focus has been on safeguarding that on top of what Sakari just mentioned.

But can you give a number? Is it less than 2% of sales? Or how small is it?

Yes. We're talking low single digits in percentage of total sales.

And then continuing just on the theme you brought up yourself, have you seen any hesitation among customers to -- I mean, [indiscernible] yesterday said that in trucks, they start to see hesitation in the logistics area in Europe. Have you seen anything similar that some customers are postponing orders or so?

Not really directly. I mean, of course, there might be some isolated cases, but not as a general big trend in any way.

Yes. And on the other hand, also, there is a deviation. You might have some that are hesitating. But on the other hand, you have heavy materials and flows of material that need to be kind of moved from one place to the other. So some other customers might have a need to invest in order to make sure that the new trade routes and trade flows keep up and running.

And then last year, you said that there was an impact of the U.S. tariffs also in Canada and South America. It's quite understandable that people postponed orders or canceled orders when they see that export from the countries to the U.S. could decrease. Do you see any signs of a normalization here and maybe people get used to the tariffs and business keeps on moving now?

I think so, Tom, yes. But then there's, of course, the impact of the ever-changing tariff landscape then that we need to continuously adjust to, but that's not so much on the demand side. I would say that, yes, I think the world is getting used to the tariffs, and therefore, it's becoming more part of normal life.

But do you see that as a positive in signing deals generally that people have started to accept this new situation? Or is it just on a more high level...

Yes, I think so. But I wouldn't say that, that is any kind of big boost in any direction. But I think everybody is getting used to the fact that this is the new reality.

And then perhaps an update also on the costs, the savings that we should have now in Q1 and Q2, you have these ongoing programs, but if there have been any changes and new bridges.

Well, we reported at the end of last year that we had reached a run rate saving from our driving excellence of EUR 34 million, and we'll have to come with an update of the figure then at the end of -- well, when we publish the Q1.

Thank you, Tom. Any further questions? Mikael Doepel from Nordea, please.

So just firstly, coming back to the Middle East, you just could remind us of how big of a total the energy share of cost is for you?

You said energy share of cost?

Yes, energy...

We are not very energy intensive, as you know, because we're not in process industries. So that's not a big driver. But logistics cost is, of course, quite a big part. So that's more potential impact than energy. We run 4 plants, as you know, and it's not energy-intensive production.

No, that was basically my next question. So could you care to give any number on the logistics, the scale of that cost compared to the total of your revenues, sir, or something?

I think we'll have to come back to that then also in connection with Q1.

Okay. And then in terms of the aftermarket business, so is there anything you can say about the connected units, I mean, the operating rates or the utilization running hours here in the beginning of the year?

I was just actually...

Couple of points...

Yes, I was looking into the data and surprisingly, we do not see kind of any huge changes there. We have to come back to the exact numbers, but the activity levels have remained stable compared to the previous quarters.

On a year-over-year basis, are we up, down, flat?

I will come back to the exact, but we -- I think there is no kind of huge changes on that.

And does this cover -- I mean, does this go for all the regions or same in the U.S., for example, as in Europe?

Well, as we said in the end of the year that there was an uptick in the kind of North Americas. And then we didn't see as strong in the beginning of the year, but now it seems like the activity level is fairly good there, too. But let's revert back to that in our Q1 call then.

And on the service business, can you just remind us -- I think there were some issues with the margins, I would say, in the latter part of last year. So maybe you could just remind us of what kind of and how we should think about the margins here going into the first half of the year? I think you booked some -- a lot of additional costs in Q4, if I remember correctly, distorting kind of the margins to some extent. Maybe some comment around the service margin.

Yes, it wasn't really additional cost as such, but there was a little bit of discrepancy between Q3 and Q4 in the tariff impact. So you should actually view those 2 quarters together when you look at our service profitability.

Okay. And then just finally, in terms of the pipeline -- in terms of your equipment project pipeline, how would you describe the situation currently? Do you see a lot of active quoting activity there? Are there any differences across the regions, currently, if you could talk a bit about the pipeline that you see and that you have and how that looks across the regions?

Yes. I would say that the -- what we said about the demand in connection with the Q4 still holds. So basically, quite stable demand or similar demand as overall for the second half of last year is what we continue to see.

Okay. And then just a final question in terms of pricing. How should we think about pricing? I mean you have done tariff adjustments, right, across the service business, across the equipment business. But I'm thinking beyond that, there is, of course, underlying inflation as well. So just wondering how should we think about pricing going into 2026? Is it a normal average 2%, 3% increase or something else?

Yes. I think the way you should think about that is, of course, we try to compensate the tariff impacts as best possible. In addition to that, it's normal inflationary price increases. And then, of course, the other side of the equation is then the driving excellence and the sourcing savings, which are there to also support the margins and to counter inflation.

All right. Any further -- Tom, you have an additional question?

Yes. Reading docs in this industry, for instance, you can see that there's a lot of discussion about Chinese truck manufacturers opening up assembly in Europe also, and that the European truck manufacturers are now kind of trying to prepare for this. What do you see in your markets about SANY and BYD, et cetera? Do they move assembly to Europe in these products where they compete with you as well? Or what do you see in the field?

There's nothing I'm aware of in terms of new assembly from SANY or others in Europe. At least I have no information.

So they make all products they sell in your industries in Europe. They are made in China basically.

As far as I'm aware, yes.

And what -- and there must be some data on what is happening to market shares. I mean, are they gaining market share? What is the market share of the Chinese companies in electric machines, et cetera? There must be some data that you follow basically.

Yes. Well, yes, maybe to say that the share of our electric orders has been, as you've seen from our Q4 has slightly been increasing. Overall, the electric market, of course, has continued to grow as well. So maybe that's a couple of indicative data points on that one, but I can't be more specific than that. Carina, anything you would want to add?

Yes. And what we've also previously said, so the situation on the emerging markets where we've seen this kind of strong competition of the Chinese more than in kind of the traditional markets.

But is it so that you do not know? Or is it so that you do not want to provide this very important information? I mean the future is electrical. You said in your Capital Market Day that in 2028, 40% of the market is expected to be electric. And at least I struggle to get data. Just wondering, is it so that you don't have data? Or is it so that you do not like to give out data?

Of course, we are disclosing the fully EVs, the order intake, the share of fully electric equipment on kind of our behalf, how our numbers and orders are developing, then disclosing kind of other market share numbers. That's something that you need to ask from our competitors, but we are trying to provide you both with the eco portfolio numbers with the hybrid equipment and then the fully electric. So that is what -- how kind of the market is kind of ordering fully electric from us.

But do you have any kind of -- you said in the Capital Market Day that 40% is expected to be electric of the market in basically 2028. You are pretty close and you have, is it 11%, 12% of orders, but what is now electric machines out of the market, just to have some reference point?

It depends a little bit on also the equipment and what we are going to do, we are in the process of updating our market study, the one that we did with the KPMG in order to provide you with updated numbers also then in the Capital Markets Day in November as such. But no signals that there would have been major changes in the appetite or development of electric equipment.

So what do you mean by that? That will -- 20% to 40%, we are on that path towards 40% in '28 basically.

That the market is on the path of becoming more and more electrified. And then it depends a little bit on the product. So if you have lighter products, the market where we do not play, they are further electrified than, for example, some of the heavier equipment, whereas, for example, in straddle carriers, we think that we are doing quite a good job in the electrification and how kind of customers also are buying fully electric equipment for us.

And then there's, of course, when we think about the U.S., then, of course, there's a little bit less appetite due to the circumstances there in electric equipment compared to what we assumed back then. But more or less, we are -- the market is on the track that we spoke about back in our CMD.

Mikael, please, an additional question.

Just a very brief follow-up on Tom's question about the Chinese players. I mean you mentioned that -- I mean, in emerging markets, you do see strong competition here from these players, but not so much in the developed world. So I was just wondering what is your view on that? I mean, what would you say are the key hurdles for the Chinese players to really get a better foothold in the bigger European markets like Germany, France or Spain and Italy. So what's kind of your view on that?

Well, I think you have to turn it back to what is the strength of Kalmar, and it's providing not only the equipment, but also the services, so complete solution. And I think that's where we still continue to be stronger than the Chinese competition. And so we're not competing purely on price.

But would you say that there are also some regulatory hurdles, for example, in terms of reporting requirements or something like that, that could be an obstacle or not?

Not necessarily, no, no.

An additional thing that I would mention is data throughout the years when we've done the EV development and how much data we have collected together with our customers and the partnership thinking. So in order to get to the same level and depth of data, it takes time. It's not anything kind of magic, but you really need to work on that. So that's where we think and believe that we are strong.

Sorry, Carina, you were breaking up a bit there in the beginning. So did you say that the fact that you are gathering data through connected units and kind of sharing that with clients? Is that what you're saying?

Yes. I'm just that process -- yes, exactly process of developing and collecting data. Can you hear me now?

Yes, yes, absolutely, loud and clear, yes.

Yes. So the process of developing and together with the customer partnering up, collecting the data, and that has been done for tens of years already together with the customers. And I believe that's a stronghold that Kalmar has and something that we're continuing on developing together with the customers.

And also the long-standing customer relationships, of course.

Okay. That's clear. Thank you very much.

Tom, you have a question?

Yes. I was just -- would like to continue a bit on this subject. Can you give some kind of updated information on your prices compared to the prices of Chinese competitors for similar products? How close are you now? I mean is it -- is the difference less than 10%? Or is it a very large difference? And the second question is, what kind of financing do you see that they provide? Do they get access to cheap financing to help emerging market customers somehow from the Chinese government or Chinese banks or so?

Yes. I think, again, on the price differential, maybe not coming -- getting into detail in this call on that one. And on the financing, of course, I can't really comment on the competitors' financing.

But do you feel that it's like kind of fair business? I mean, Kalmar cannot start giving big credits to customers. But what are the Chinese doing just generally in this industry?

Well, I mean, what we do see is competing on payment terms and things like that. But I would say that, as I said, I think it's probably not my job to comment on their financing.

Yes. Okay. But it's, of course, very important for you that your customers, if there are like different ways of providing financing, it can be very decisive for whom they buy basically.

For sure. But also when we think about how we've been developing our service offering, we also can offer Equipment as a Service, Charging as a Service and things like that. So that's what we can provide as solutions as Kalmar.

And how do you arrange that then? Who owns the equipment?

It depends on the contract.

But it can be you as well. So it's in your balance sheet then.

It could be.

Yes. And then finally, on batteries. So how -- I mean, you use mainly Chinese batteries to my understanding, but you can also use other suppliers, I guess, and it's the customer's kind of choice, I assume, what battery they want to have. And do you think you get batteries at competitive terms compared to your larger -- I mean, if you have BYD, they make batteries themselves. So it's -- I guess it's difficult to know how they book the cost of batteries, but other companies in Asia that buy Asian batteries. Do you think you get the same prices as they do?

Well, first of all, we can procure batteries, of course, from several sources. Then on the pricing, I believe the pricing is competitive, whether it's exactly the same as someone else, that's difficult to say, of course.

Thank you, Tom. Any further questions from anybody? It doesn't seem like that for the moment. Then I think we are about done with the Pre-silent call and looking forward to meeting you all online on the May 5, on our quarterly -- first quarter reports call.

Thank you. See you then.

Thank you.

Have a good day.

Bye.

Bye.

Esteemed shareholders, dear guests of the Annual General Meeting, I am Jaakko Eskola. I'm Chair of Kalmar's Board of Directors. On my behalf and on behalf of Board of Directors and Kalmar's management, I would like to warm welcome you to Kalmar Corporation's second Annual General Meeting as an independent listed company. And especially, I would like to thank today all of you who have been involved in the company's journey and participate in this value creating to all stakeholders during 2025.

And before I will go through Kalmar's operations, I would like to present to you Kalmar's Board of Directors current members who are seated here in the front as they were last year as well. I want to thank them for excellent cooperation. Casimir Lindholm, Vice Chair of the Board; Lars Engstrom, Marcus Hedblom, Teresa Kemppi-Vasama, Vesa Laisi, Sari Pohjonen and Emilia Torttila-Miettinen.

During 2025, the Board of Directors convened 9 times, and the attendance rate was 100%. The most important task of Kalmar's Board of Directors is to guide the company's strategy. And the aim is to, in the long term, create the conditions for Kalmar to achieve its long-term goals of sustainable and profitable growth. And also to create value for shareholders while taking into account the different expectations of various stakeholders. A new feature of Kalmar's Board work was the decision to establish a temporary technology committee, whose task was to dwell even deeper into identifying and assessing technology and innovation questions while knowing that these things matter and they have significant impact on the company's future competitiveness.

And I'm grateful to the entire Board of Directors for their expertise and contribution to the company. And I would like to especially thank the Board member Teresa Kemppi-Vasama. Teresa, you are now stepping out from the Board of Kalmar, and I want to warmly thank you for your important and valuable work and your input has been valuable during the early stages of the independent company.

Thank you. Year 2025 was a year of success for Kalmar. You already heard partially, CEO, who gave comments on that, and I'm sure you'll be hearing more about that today but a few of us were able to predict the global turmoil that we have to navigate in. And during recent weeks, tensions unfortunately, have increased, especially in the Middle East. Kalmar continued to execute the strategy with determination and demonstrated resilience and agility amidst these geopolitical tensions and changing trade policy rules.

Our strategic focus was on meeting customer needs, sustainable innovations and growing our service business and also continuous improving of our own operations. The market environment during 2025 was challenging, but the overall customer demand remained stable across all geographic regions. Especially in Europe and in Asia, the demand was on a good level. And the prolonged market uncertainty in the North and South America was evident for the most of the year, which contributed to slowing down customer decision-making. The Board of Directors monitored the situation and also visited the United States to familiar itself with the terminal tractor manufacturing and also to focus on the development of the customer operating environment.

Despite of this general uncertainty, we ended the year with good financial results. Sales remained at a stable level, over EUR 1.7 billion, and we managed to improve profitability. The comparable EBIT margin was 12.8% compared to 12.6% in 2024. And the received orders grew to over EUR 1.8 billion. The good performance has also been reflected in the share price development. And in 2025, the annual total shareholder return for B shares was almost 30%. Kalmar continued to invest in future growth and sustainable innovations. We have significantly increased our efforts in electrification. We started sales of third-generation thermal tractors in North America, and we also introduced our next-generation lithium battery technology-based product.

And at the same time, we launched Move2Green research and development cooperation project, and that is supported by Business Finland with EUR 20 million. In this context, I would also like to say a few words about safety. It is the very core and heart of everything we do in Kalmar. The Board of Directors pays as much attention to safety questions as it does to financial performance. Kalmar's long-term goal is to ensure that everyone returns home from work safely every day. In order to improve overall occupational safety, Kalmar will continue to develop its existing safety initiatives and also invest in new measures. A key focus is on strengthening the safety culture by increasing awareness and by providing more comprehensive training programs.

In addition to innovation, growing our service business remains a cornerstone of our long-term success. Services accounted for 35% of total revenue. The service business was being supported by this growing global installed equipment base with over 70,000 equipment installed and the network of approximately 1,500 service technicians. The business performance development progressed well. And through driving excellence initiative, we achieved about EUR 34 million of annual gross efficiency improvement. And these improvements are an important part of Kalmar's profitable growth. I would like to also especially thank all 5,300 Kalmar employees for their commitment and good work. Your contribution has been crucial to the company's success.

And today, at the Annual General Meeting, we will discuss important issues regarding the company's past year, but also its future. Amongst other things, we will be reviewing 2025 results, including sustainability reporting. We shall decide on the distribution of profits based on the Board's proposal, and we shall also elect the Board members. I am convinced that Kalmar's vision to be the forerunner in sustainable materials handling is clear, and we are ready to move to the next level to support our customers in their transition towards more automated, more electronic and sustainable materials handling. And together, we can continue Kalmar's success story and create value for our shareholders in the long run.

And now we arrive at the point where I shall open the Annual General Meeting of Kalmar Corporation, and I propose that as Chair of the meeting in accordance with the organizational document published as an attachment to the notice shall be Attorney-at-Law Riikka Rannikko. As there are no other proposals, so I state that Riikka Rannikko is Chair of this meeting. I'd like her to take her seat please.

Thank you. Good afternoon to all Kalmar shareholders. Thank you for your confidence. I'm Riikka Rannikko, and I will be chairing this Annual General Meeting, and I call as Secretary, company's General Counsel, Ulla Bono, please?

Before we go to the actual items, I would like to state a few procedural things. And I promised to go through evaluation instructions right now. And I do wish that, that will not take place. But if ever that will take place, there will be a public address system announcing that, and we get experts to telling us the instructions. For the nearest emergency exit is by the wall, and it goes to the railway station market, and we go there according to instructions given. But no more ordinary questions. We have the organizational document, which has been drafted beforehand, and that describes items from 1 to 5, and we shall be supplementing those points during this meeting and at the beginning.

And you can also take floor related to them if you have any points you want to make. But otherwise, I will not repeat the content of the organizational document, only saying that if you want to ask floor for the matters pertaining to the agenda and questions are most welcomed. If you ask for the floor, please first wait for the microphone. There are several microphones here and then tell your name, if you represent any other shareholder, please indicate that as well, who is that shareholder and also the number of voting slip before you start talking. I want to also welcome all those following this online. Online, you don't have any right to officially participate, but you can follow this meeting online. And you will also hear the questions through the microphones from this meeting venue. The organization document will be attached to the minutes and also state that you have the meeting materials that have been distributed to you. I hope that at first, we have the agenda, and we shall follow the agenda throughout the meeting unless I announce other things otherwise.

And based on this, I propose that we move to Item 3. This is the election of the persons to scrutinize the minutes and to supervise the counting of votes. And in the organization document, there is a proposal to have one person to scrutinize and one person to supervise the counting of votes. And in the document, the proposal for the person to scrutinize minutes was Katariina Kataja and one person to supervise the count of votes, Aleksanteri Lebedeff. And I was informed that Kata is no longer available and I have the right according to this document to propose the name Eveliina [indiscernible]. So Eveliina [indiscernible] and Aleksanteri Lebedeff here present and are you available?

Yes. Thank you. Any other proposals can we agree.

So we elect [indiscernible] as the person scrutinize the minutes and Aleksanteri Lebedeff as a person to verify the counting of votes. Next item is 4, recording the legality of the meeting. The notice of the meeting has been published on the 13th of February as stock exchange release and on the company's website. The meeting documents have been available according to law. And my understanding is that, therefore, this meeting is legally convened and has a quorum. Any other views? If not, I state that and we shall attach this to the minutes. And then number 5, recording the attendance of the meeting and the adoption of the list of votes in this meeting. So shareholders participating in the meeting are considered those who are shareholders on the record date and have registered to the meeting and have either voted in advance or you are here present with the voting slips at the meeting venue. We have a list of votes according to the beginning of situation, Ulla Bono has kindly promise to explain that to us.

At the beginning of the meeting, we have here represented 587 shareholders either voting in advance or here present personally at the meeting venue or through their legal proxy or authorized legal representative. And I state that at the beginning of the meeting, we have a total of 8,820,201 A Series shares and 33,996,839 B Series shares, a total of 42,767,040 shares and 12,214,682 votes, which corresponds to about 81% of company's total votes. Thank you for this. And we state this situation to the minutes as it was at the beginning of the meeting. And I would also like to state that Innovatics has said that there are no disturbances at all or issues with the advanced voting or as for identifying people. So we have plenty of advanced vote, and we will note the advanced votes and empty ballots to the minutes. I will not read them loud, but I will just state that for each item, we do have a majority seconding and supporting the proposals made to the meeting.

So the summary will be appended to the minutes. It is here available and also the summary of advanced votes will be attached to the minutes. And as for the points that were made subject of the resolutions are considered to be in present unchanged at this meeting. And of course, shareholders are here, and we also have Kalmar's current members of the Board of Directors and the proposed new members here, Kalmar's auditors here and top management and technical staff is present and other employees of Kalmar. I think we can agree that they are here present, and that is now adopted.

We move to Item #6. This is presentation of 2025 financial year financial statements, Board of Directors' report, the auditor's report and the sustainability reporting assurance providers report. And our company's CEO, Sami Niiranen, will be coming to the stage to present to the financial statements and also the review of company's operations and sustainability program 2025. And after that, we'll take company's auditor and the sustainable reporting auditor, Kristina Sandin, who will present her part, that is company's audit report and also the assurance report on sustainability reporting. And after these presentations, I will open discussion, and you may ask questions. Over to Sami Niiranen?

Thank you very much. Good afternoon to everybody, and a warm welcome to the Annual General Meeting of Kalmar Corporation. My name is Sami Niiranen and I'm the CEO of Kalmar. The main theme today is 2025 performance, innovation, growth and efficiency. To place that here, as per the disclaimer, I would like to say that the presentation includes forward-looking statements that are based on present plans, estimates, projections and expectations and are not guarantees of future performance. And then the presentation itself and let us start with our very experienced leadership team.

I will go through the team individually, I would like to ask you to stand up when you hear our name. First of all, Sakari Ahdekivi, Chief Financial Officer, Ulla Bono, General Counsel, Thor Brenden, President of Terminal Tractors, Business; Carina Geber-Teir, Marketing and Communications, Alf-Gunnar Karlgren, Counterbalanced Business Activity, Arto Keskinen , President of Horizontal Transportation; Thomas Malmborg, President of Services; Tommi Pettersson, Strategy, Sustainability and Technology; Hanna Reijonen, SVP of Human Resources and Shushu Zhang, President of Bromma. Thank you very much.

And then summary of performance in 2025. I would like to give you some key figures here. If we look at order intake, first, that was the highlight, they grew by 8% from 2024 amounting to the total of EUR 1.8 billion, stable sales throughout the year. And when we look at the operating profit, EUR 223 million, 12.8% in comparable operating profit margin. In '24 the corresponding figure was 12.6%. And gearing ratio almost on a 0 level. And then our inputs into our strategic pillars for instance, services and maintenance. You can see it also in the services share of sales, 35% and also a strong focus on innovation, electrification. So the Eco portfolio share of sales was 44%. So significant growth from the previous year. Here, this is 2028 organic growth strategy.

If we look at the vision, we want to be the pioneer in our industry and equipment services for sustainable materials handling. We've been this for the past 75 years, and we intend to be that also the next 75 years. So we are pioneers, front runners in terms of the culture we represent. If we look at the whole market, EUR 13 billion to EUR 14 billion related to our sales. So we have a 10% to 15% market share. So there is potential for growth. And in the market, there are very clear growth drivers, mega trends that form our activities, the improvement of productivity, profitability and growth. Smart equipment, electrification, low emissions are some of the megatrends we are working on.

Of course, the availability of labor and geopolitical fluctuations have an impact on the market environment. And this is the environment where we operate, and we see in this environment a lot of potential. Of course, there are certain challenges. How do we then react to those challenges? This takes place within our strategy. First of all, sustainable innovations. We invest into robotics, AI electrification. And then services and maintenance growth, it's important to be more customer-oriented service-oriented we design equipment or easier to maintain and have Kalmar components within there. So this is the culture change that we are working on.

And then thirdly, a strategic pillar is the efficiency of our activities, not for Kalmar but also for end customers. So our customers are more efficient within their operations. So these 3 strategic pillars combined to the base that we have 5,300 members of staff in more than 120 countries near our customer base, near our dealers plus the ever-growing market, which I mentioned.

And then if we look at a bit more in detail, 2025 and the strategic pillars and what happened there, 3.1% of our sales was directed into research and product development. This is a good figure about the same level as in '24. And when we grow in the future more than absolutely speaking, we will invest more. So this is a very important focus of investment.

And then Eco Solutions product group, sustainable solutions both for maintenance and equipment there almost half 44% of our sales derived from that section. And as you heard from the discussion we just had on Move2Green program, a 5-year program funded by Business Finland. We are leading this project with 150 partners. So we develop future electrification solutions. This is a very important part of our innovation agenda and road map.

And then services business, its share of sales was 35% last year. Spare part sales grew and then connected devices connected to the network where we can see how the devices operate and where they are and who operate them. So almost 17,000 connected devices of the total 70,000 devices that we have and 70,000 pieces of equipment gives us a lot of possibilities for growth.

And then thirdly, business performance, efficiency. We have a EUR 55 million -- EUR 40 million efficiency program and gross efficiency gains of EUR 34 million were already achieved in 2025, and we continue this. And there, central is acquisition how to lower manufacturing costs. We try to make our structures more efficient and simplified to be more customer-oriented and we develop our processes as well. This is very central. So these 3 strategic pillars are a good basis for future years.

And then I mentioned the total market half an half is the division services between services and equipment. So there is a lot of potential in the total market, which is about EUR 6 billion and half of it is services. And we estimate this to grow about 4% per year. So we target more than 5% growth each year. And one driver here is the electrification. And we estimate that it will grow annually by 30%. So low emission and electrification activities are very central here.

Now here in this slide, you can see our fantastic equipment devices that we offer to our different customer segments. We have 4 of them. We have harbors and distribution and manufacturing. So different types of deposits to different customer bases and the market decision and different device families are very strong here. And what kind of sales do we do -- we do not only offer equipment, they are combined with these fantastic technologies that we have developed, electrification, digitalization, automization, and those combined to this global service network, maintenance network and the support network that we can offer our customers in spare parts and repair. So we sell solutions to our customers. So this is central.

And this is then supported by our service and maintenance network, we have more than 1,000 service technicians in 120 countries. So this figure has grown by about 100 annually, last year, it was 1,400 service technicians. So we want to be where customers. We have 4 factories in 4 countries: Poland, U.S., China and Malaysia. So this gives us resilience in this current geopolitical environment.

We have also 4 innovation centers in Tampere here in Finland, Ljungby in Sweden, Singapore and in the U.S. So this is the total package available. And I would like to remind you that our partners are very important for the success 1/3 of our sales come from our partners, from the dealers. This is very important.

Now this is one of my favorite images. So there are certain customer orders that we received last year. As I mentioned in the previous slide, it crystallizes here 4 customer segments. These are the orders from different segments, from different countries, from different regions and especially we here have sold solutions, not just the equipment itself to the final customers. They are combined with technology, with long-term agreements, including maintenance and service agreement, and then sustainability our agenda is very overreaching. We cover the whole value chain and all the ESG part, environment, social teams and good governance.

Now if we look at health and safety at work, it's included in the social section there. So we try to work very hard to improve all these different areas. And when we talk about health and safety at work, there we have also expanded the scope. There are 4 pillars. We are not only focusing on health and safety at work. We also take into account psychological safety, product safety and mental health. For last year, this was something that we have to improve or we didn't achieve our midterm targets and the long-term vision, i.e., that each employee comes safely from work to home in good health. This is our vision. Zero level incident. 0We didn't achieve that last year, so we have to really make a bigger effort this year for safety.

And then in terms of sustainability and some highlights from last year. First of all, the science-based targets initiative has approved Kalmar's climate targets. So we are committed to the 1.5-degree warming scenario. And then CDP gave us an A rating. EcoVadis Gold Medal that includes top 5% of the companies. And also, as mentioned, this Move2Green program where we act as a front runner in terms of electrification. Now if we look at financial side and the figures there, as I mentioned, orders grew by 8%, maintenance 9% and main services 7%. And sales grew slightly from 24% and operating profit 12.8%, total operating profit EUR 223 million. Net debt is quite low, which is a good thing in this difficult market situation. So our financial profile is very strong and total of EUR 5,300 employees in 2025.

Now if we look at our customer segments, I already mentioned that we have Ports and Terminals, which is the biggest segment where we operate. And then we have the heavy logistics, then manufacturing industry and distribution. If we look at last year in different segments, well, these percentages describe the available market. These are not directly from the sales. Ports and Terminals performed better than 35%. So there, the market environment was very profitable. And then distribution side, distribution logistical centers in the U.S., especially were pretty quiet still last year. So these are the 2 extreme ends. And then heavy logistics, there improvements were made and then manufacturing industry as well. So this is sort of double-sided situation from last year.

Now if we look at regions, we have 3 main regions. And when we look at the sales and orders, they are exactly the same as here. So no difference there. About half came from Europe and Middle East, both orders and services. And then North and South America, Americas, 34%; and Asia kept on growing 15% was the level with APAC region. So these are the new reporting areas in Kalmar. And Europe has been strong -- already was strong in '24 and continue to be strong in last year. And then Americas, especially North America, improved in the last quarter of last year. However, there are certain uncertainties, the tariffs, et cetera. So they slowed down demand in the Americas.

And then if we look at orders, we've come up from 2024. As a whole, we are on a different level compared to '22, which was the post-pandemic cycle now we are moving towards '28 in our strategy, and we want to grow annually more than 5% over a pre-business cycle. This can be seen in our stable orders received, delivery times 3 to 12 months of equipment, which gives you an idea of the orders situation. And also sales have been on the same level for the past 12 months. You can see in '23, EUR 12 billion, we have come down from there. As we communicated in May '24, we said that markets will be a bit slower. We didn't know about the tariffs then, of course. So new uncertainties have come up.

And then on the right-hand side, you can see the operating profit development in the past few years. So we remain clearly under 10% profitability towards 12.8%, all the way towards 15%, which is the target. And also in '21, the product portfolio was a bit different. So we've taken some smart decisions in that respect. Now if you look at the cash flows, the past and the leverage, which is close to 0, which is a good level on the right-hand side. Now we are fully committed at Kalmar to 2028 targets. Here are the most important ones, plus 5% sales growth over the cycle, 15% comparable operating profit margin by '28 and last year, 23% ROCE.

Now we are moving towards 25%. Sustainability is very important. We have to maintain a strong balance and be able to pay out dividends. Now 2026, uncertainties have not disappeared anywhere. We might have more of them. However, our basis is very strong. Our operating basis and staff is excellent, and they can manage the situation. So this year and next year, we will really concentrate on our customers. We have to be closer and closer to our customer base. We have to simplify our own activities, find solutions on the basis of our customers, how to create value for our customers. And of course, our advantage are the innovative solutions, product leadership technologies and services and maintenance activities, the whole network that we have created during the past decade. So we focus on the 3 strategic pillars also this year.

2026 guidelines, we think that the operating profit margin will be 12.5% this year. And the Board proposes to the annual meeting that dividend is paid EUR 1.1 per Class B shares and EUR 1.09 per Class C shares and earnings per share for 2025 were EUR 2.55. Now finally, our brand promise, making every move count, what does it mean for me and my team? It means that in Kalmar, every day, in every part of the world, we try to create value for all the shareholders -- potential shareholders, customers, staff, our partners and the whole society. Thank you very much for 2025 to all shareholders. Thank you.

Thank you, Sami Niiranen and for a while, you can leave the stage. And next, we have the auditor and the [indiscernible] auditor, Kristina Sandin, who will present to us the auditors report and also the assurance report on the sustainability statement.

Thank you very much. Good afternoon to all of you. I'm Kristina Sandin, and I'm the responsible auditor of this company. And I will now go as a summary, the audit and also the assurance report and the sustainability statement for last year. This is a global map and the yellow is the indication for the countries that have been the most difficult ones for the group audit, Poland, Malaysia, China and U.S.A., which were already mentioned as the locations for manufacturing sites. The audit is carried out nearly throughout the entire year. The plan starts in March, and that's the audit during the financial year until December. And in January, February, we do the actual audit. And we have been involved in all ordinary risk management committee meetings last year and also in the meeting of financial statements of the Board.

Our reporting the company includes audit plan and also interim audit findings throughout the year and also a summary of end of year audit. Our auditor's report has highlighted one key audit matter, and that is valuation of goodwill, the same way as we did in 2024. And this auditor's report gives our justification why this particular matter is the key audit matter in our auditing. And the auditor's opinion is here in a standard form, and it was given in February 12 this year. And finally, one more slide. This is the sustainability assurance report. This is a separate assignment, and this is also a standard form of opinion the same day as the auditor's report as well.

Thank you. And I state that the documents of the financial statements have been presented to you and the meeting materials. We have a QR code where you can access them as a whole. But now it's up to you. I open general discussion. Do you have any questions or take the floor for comments. I see a few persons are also following this on or behind the screen. So maybe somebody will help if you are behind the screen, I can't hear you, but maybe we'll see you, maybe someone will help out to indicate that you ask the floor.

I see in the back. Could you please get the microphone to the back. Go ahead, shareholders to Sami.

Indeed. Thank you, Chair. I am [indiscernible] Voting number 108. I have 3 questions related to the business. First one about something where you say automation as a service. Have I understood correctly that, that will become a business of its own? Or is that included in the devices or properties of the equipment that you deliver already as it is?

Good question. It is included indeed in our offering. It is not a business of its own, but it is a business model of its own. We have launched that. And we try to make automation or development of it and the customers will take that in as easy as possible. So it's a flexible model where you have different, let's say, points during the process and the customer needs to decide on them and also payments are made alongside with it, which are the points to be developed and implemented and when? It is part of our automation road map. It's not a division or business area of its own.

Is there further invoicing related to that?

Well, the objective is if you think of innovation, sustainable innovations, that's one of our strategic cornerstones and the focus on electrification, automization and digitalization. Yes, absolutely, these solutions as we launch is to get more revenue indeed.

And then second question, spare parts sale. You say one of the objectives is the increased market share of spare parts. Does that mean that you have Kalmar equipment and you have suppliers other [indiscernible], not just Kalmar producing spare parts?

Yes, it means that we had one slide, capture rate, if you saw that, it is 100% theoretically. And then what is the part that we supply spare parts to our 70,000 equipment, so 31% last year, 30%. So there's potential to improve this. It will never be 100% though. But yes, our customers get spare parts through other vendors. Therefore, we have to be very proactive ourselves in our operations and to go and approach the clients who have them and sell better spare parts in the future. So proactive selling is very key and important thing here. And as we sell spare parts, we believe fully in this. As we use Kalmar spare parts, Kalmar device equipment, you get the best combination. And that is the case. And of course, we want to convince our customers about this.

Then the third question relates to your order backlog. I saw that in service business, which is about 35% of the entire sales of the company, the order backlog was very low, EUR 135 million. What is the reason for that? Is it very short-term service agreements that you have? Or what is the reason for that low number?

Good remark. Well, short term, not short-term agreements, but spare parts sales -- selling is a more agile cycle because equipment, it's 3 to 12 months, but then spare parts, we have fantastic distribution centers, and we supply spare parts with that. So therefore, the order book or order backlog in this case is quickly rotating. And what is included? Well, we have service agreements and then the direction is to have longer service agreements in the future.

Can we then expect that this order backlog will increase.

Well, I can say it's rather stable. There has been maybe even more about sales and orders in the business, over EUR 600 million last year. So that is the objective. And we try to be as effective as possible to get in the service agreements and invoice everything quickly through the agreements we have. So I look at 2 parameters myself, that is sales and orders plus profitability. And then the order books will follow.

And then the next question. Go ahead [indiscernible] voting slip 152.

Well, I was looking at the growth drivers, a typical situation for a Finnish company. You talk about strategy and growth. However, what actually resulted then this was not the outcome. In '22, that was the last strong year when orders came in very strongly and sales came down in '23, and it hasn't come up from that so much. Now I was glad to hear that your growth target is 5% annually. However, what will you do differently this year so that this strategic 5% growth target would be achieved? And then secondly, certainly, the factory footprint was ideal in the U.S., China, Malaysia. But now when we think about China and Malaysia to some extent, are not, so to say, low-cost countries anymore. Have you actively thought about the way you could make this more efficient, this manufacturing, perhaps a fifth industrial plant.

Yes. Thank you. First of all, about growth. And if you look at those figures, 8% organic order growth in this market situation is pretty good. Of course, sales then follows when we get the orders. So that's the main thing here. So how to continue in the future and this year. Services, maintenance are our focus areas. And of course, we try to win market shares also in the equipment side. So potential is there, 13% to 14% market share. So there is potential EUR 13 billion to EUR 14 billion. So until '28, we have this strategy and growth is possible. We had a good start last year. Of course, there are these uncertainties and we very openly communicated this in '22, saying that '22 to '25 will be more even compared to what we had before the pandemic, especially in the U.S. and in the distribution center side. So that has dropped significantly, but we have to be able to increase that, and that will have an impact on sales.

Now this factory imprint or footprint, I'm pretty satisfied with our 4 factories at the moment. And additionally, we have assembly activities in India, in the U.S. So we, all the time, look at what the global activities are, what would be good after '28, after 2030. And costs are an important part. And if I look at what is going on in China, it's very efficient. I'm very happy with that. But of course, it might not continue forever. So we have to be flexible there. This is one focus area. As I mentioned, in this operating model and efficiency. This is one important part of the strategy, and it's linked to manufacturing and acquisitions and purchasing.

Any other questions? I don't see any requests for the floor. Thank you very much to the CEO. I will close the general debate, and I say the financial statements, annual report and also its report and sustainable reporting assurance report for financial year 2025 have been presented to the general meeting. They will be attached to the minutes, and we close the Item #6, and we move to Item #7. This is adoption of the financial statements, which has heard the auditor. And therefore, we can adopt and supported. Any questions or comments related to this item of the agenda? Or can we adopt the financial statements? We can. So the annual accounts are now adopted.

Item #8. This is resolution of the profit shown on the balance sheet and payment of dividend. Main points are now on the spreadsheet, on the screen also the CEO mentioned these main points. So A shares, EUR 1.09 per each share. And as for the outstanding B Class shares, EUR 1.10. 2nd April pay dividend that is the record date and the payment date will be 13th of April. Any comments on this one? And that is then adopted. We resolved on the dividend according to the proposal made.

Item 9, resolution discharge of the members of the Board and the President CEO from liability for financial year '25. This [indiscernible] applies to all persons who have served as members of the Board or CEO during the financial year '25. So they are Jaakko Eskola, Casimir Lindholm has been the Vice Chair from 1st of April '25 onwards; Teresa Kemppi-Vasama, member of the Board and has been Vice Chair until 27th of March 2025; Lars Engstrom, Marcus Hedblom, Vesa Laisi, Sari Pohjonen, Emilia Torttila-Miettinen, and Sami Niiranen, the CEO. Can we discharge them from liability or anybody asking for the floor? So in that case, we can grant the social liability for the financial period 2025.

Then Item 10, this is the consideration of the remuneration report for governing bodies. And last year, the Annual General Meeting adopted remuneration policy. And according to that, there has been draft of this remuneration report. And the remuneration report 2025 has been available since 26th of February '26, and the QR code is also available to you in the meeting materials. We will touch this report to the minutes, but I will ask the Board's Personnel and Remuneration Committee Chair, Jaakko Eskola, who will present to us this remuneration report before we will adopt it. Jaakko Eskola, please.

Mr. Chair, dear shareholders, the Chair already explained to you that you can find this report in your documents, and it follows the remuneration policy that was adopted last year. As for the Personnel and Remuneration Committee, the task is to make sure that Commerce remuneration follows the company's values and support strategy implementation and also drives long-term success. And it's also competitive and fair. And as for 2025, highlights, you already heard about that. And this company indeed continued the successful performance. Profitability improved and also the comparable operating profit was 12.8%.

And you can read from this remuneration report that the share price also continued to increase. It also had a link to remuneration. We did not deviate at all from the remuneration policy, which is a good thing to note. So first, remuneration of the Board of Directors. And the remuneration of the Board consists mainly of annual fees. And since 2025, the annual fee was been supplemented with a meeting fee that's paid for each Board or committee meeting. Good to note also that the annual fees, so 40% of them were being paid in Kalmar shares. And the remuneration can be found from this table, and I will not go through the remuneration, maybe draw your attention to that here, again, no deviation from the remuneration policy.

The task for the Board of Directors is to also to CEO and also see remuneration of the CEO. And first of all, the CEO remuneration had no changes. Remuneration of the CEO in Kalmar, as for many other listed companies is based on 3 elements. You have the base salary, you have short term and then long-term remuneration. And as you have a look at 2025, the CEO got remuneration based on base salary and short-term incentive plan. This year started 2024. So therefore, it is not yet eligible for this previous long-term plan.

And 2025, that year, we went through also Kalmar's share-based incentive plan. And first of all, it has not been changed. It is now for 3 years. And the performance-based share plan supports entirely the proposed strategy that you have just heard a few times already today in this event. And at the same time, long-term value creation is there. It also includes sustainability criteria and the CEO went well through sustainability relevance and importance to the company. And therefore, we now have 200% weight within these indicators. So this long-term incentive program is based on absolute total shareholder return and service revenue growth. And again, growth element is here because it is very, very important for us in the future. We also need to get the Services segment on growth path as part of the sales of the company. And also to a low extent, we also have other indicators related to sustainability, such as CO2 emissions reduction. And also one element here is increasing the share of women in senior and leadership positions.

So this was a brief explanation of the highlights of the remuneration report. Thank you. Any questions related to report or any requests for the floor? We have the person still on stage. Nobody is asking for the floor. In that case, Jaakko Eskola, thank you, You can leave the stage. I am ready to adopt the remuneration report. And according to [indiscernible] Act, this is an advisory resolution. Nobody is asking for the floor. So in that case, we have now adopted the remuneration report for 2025.

Now next, we have 3 items related to the Board of Directors. First, Item 11. And actually, we will go through 3 items, and we have a proposal related to this by the Shareholders' Nomination Board. So first, the remuneration, then the number and then composition of the Board. But before we move to these actual items, I will ask to the stage Chair of the Shareholders' Nomination Board Heikki Herlin, who will be presenting to us operations of the Board, but also who are the members of the Shareholders' Nomination Board. So Heikki Herlin, please take the floor.

Good afternoon to this Annual Shareholder Meeting. I'm Heikki Herlin, and I have been in Kalmar, the Chair of the Shareholders' Nomination Board. And in this Annual General Meeting, I represent one of the biggest shareholders of Kalmar, which is Mariatorp Oy. The Nomination Board is responsible for preparing proposals for the Annual General Meeting regarding the election and remuneration of the members and also remuneration of the committees.

The Nomination Board also is responsible for ensuring that the Board and its members have sufficient expertise, knowledge and skills to the opportunity to give us sufficient time to perform their duties. And furthermore, the Nomination Board is also responsible for searching successor candidates for the members of the Board of Directors. Nomination Board consists of 4 members and the members are appointed this way. So the 2 largest owners A class shares have each right to appoint 1 member and 2 large owners of Series B shares have the right to appoint 1 member.

And during this past term, the Nomination Board had the following composition. So [indiscernible] appointed by that company, me representing Maratorp Oy; Investment Director, Timo Sallinen for Mutual Pension Fund, Varma; and also Managing Director, Mikko Mursula, representing Mutual Pension Fund Ilmarinen. And in addition, the Chair of the Board, Jaakko Eskola, [indiscernible] the meeting as an expert and General Counsel Ulla Bono was the Secretary of the Nomination Board. And the Management Board can be 4 times.

During this term, the task of the remuneration board was also find successor candidate for the outgoing Board member, and we used an external consulting company to do this. And according to the good governance, the composition of the Board must be diverse, independent and professional in order to be effectively to oversee the company's interest. The members must have sufficient expertise, experience and also time to perform the task. So the Nomination Board assessed that the current Board meets this criteria. However, we wanted also as for the future of the company to strengthen the Board's HR expertise to support Kalmar's expansion and growth.

The Nomination Board's proposals for this Annual General Meeting were published end of January 2026. I want to thank you all, and thank you, the Nomination Board for the current term. And I would like to also on behalf of the entire Shareholders' Nomination Board, thank the outgoing Board member, Teresa Kemppi-Vasama for work interest of Kalmar and the Board.

And next, I would like to kindly ask the Chair of the Board of this Annual General Meeting, Riikka Rannikko, to present the proposals by the Nomination Board. So Riikka, please.

Thank you. Thank you, Heikki Herlin. So now this is Item 11 of the agenda, that is proposal on the remuneration, it's very small print. I can't see the screen myself but do you find this information in the notice and in the meeting materials. So fixed annual fees, and you see there's increase proposed Chair of the Board and Vice Chair of the Board and also members of the Board, each have their own amounts indicated here. And then committees, members, fixed additional fees. You can see that on the screen as well and also meeting fees are indicated.

And according to which country you reside or is the physical meeting or online meeting, there are different amounts of euros explained. And so far, so 40% of the fixed annual fee will be paid in company shares and travel expenses and others will be reimbursed according to company's policy. Any questions related to this or any comments? In that case, we can decide the remuneration as proposed. Next item is #12. This is a resolution on the number of the Board of Directors members. So according to it's from 5 to 10. Currently, the number is 8 and the Shareholders' Nomination Board proposes 8 members. Any questions or comments in relation to this item? In that case we adopt that number as proposed 8.

Then item 13, election of the members of the Board of Directors. The mandate will end at the end of next AGM. And the proposed members nominees can be seen here. We elected Jaakko Eskola, Lars Engstrom, Marcus Hedblom, Vesa Laisi, Casimir Lindholm, Sari Pohjonen, and Emilia Torttila-Miettinen. And a new nominee, Carita Himberg as the eighth member of the Board. And you can see Carita Himberg's presentation on the screen. She's also here and can briefly present herself to the AGM.

Dear shareholders. My name is Carita Himberg. I'm holder of Master of Science and Engineering and an MBA. I have more than 25 years of international experience in industrial companies in technology and pharmaceutical field. I was the Metso Human Resources Director for 5 years. And this month, I started as MacGregor's Chief Human Resources Officer. And at Koskisen, I was in a leadership role. As a Board member, I bring in strategic experience for strategic human resources, management of skills and skills development in an international environment. Thank you.

Thank you very much, Carita Himberg. So all nominees are here, and we have received their consent, and they are independent from the company and from it's significant shareholders. There's also a recommendation that the Board would reelect as its Chair, Jaakko Eskola and Vice Chair, Casimir Lindholm. Are there any comments or questions on this proposal? The AGM has decided to elect the Board on the basis of the proposal. And then resolution on the remuneration of the auditor and the sustainability reporting assurance provider. This is about the fee. And there is a proposal on the basis of the Audit and Risk Management Committee's recommendation. They propose that the fees are paid in accordance with invoices approved by the company.

Are there any comments or questions on this proposal? So decided on the basis of this proposal.

Then Item 15, election of the auditor and the sustainability reporting assurance provider. According to the same committee, the Board has proposed that the auditing firm, Ernst & Young be reelected as the company's auditor for the term ending at the close of the 2027 AGM. Ernst & Young has informed the company that Kristina Sandin APA would serve as the lead auditor if they are elected. And then also for the sustainability assurance provider, Ernst & Young is the assurance provider and they should be reelected. And APA and SRA, Kristina Sandin would be the lead sustainability reporting assurance provider.

Are there any comments or questions on this proposal? So confirmed, we have resolved to appoint the auditor.

And then Item 16, authorizing the Board to decide on repurchase and/or the acceptance as split of company's own shares. This is the same content which was adopted in last year's Annual General Meeting on the basis of maximum of 6.4 million of company shares may be acquired and 952,000 A shares and maximum of 5,400,000 B shares, 10% of Series B shares, also a targeted acquisition and acceptance as pledge is possible. So this is in your documentation, this proposal.

Are there any comments or questions? No, the AGM has resolved to give the authorization on the basis of the proposal.

And then Item 17, authorizing Board to decide on the issuance of shares as well as the issuance of option rights and other special rights entitling to shares. The similar content as the previous one, about 10% and the content is the same as what was adopted last year. This gives an authorization for targeted issuance on the basis of a significant financial reason. And you can see the proposal here in full, it's also included in your documentation.

Are there any comments or questions?

Shareholder Tammi would like to ask something.

Thank you, Madam Chair. I would like to ask, since you talk about these option programs, does the company at the moment have a valid option share program?

My understanding is that no, I see shaking of head. So no, we do not have such a program. Authorization is usually covering also options and special privileges. So the reserve is there. However, current program is not in force. Thank you. Any other questions? So we have resolved to authorize this on the basis of proposal. And then Item 18, authorizing the Board to decide on donations. And here, the proposal is that the Board is authorized to decide on a maximum of EUR 200,000 for university corporation, charity or other similar purposes in one or more installments and the Board's authorization conditions are here, and this is similar to the content as we had last year.

Are there any comments or questions?

We resolved to authorize this on the basis of the proposal.

Then finally, Item 19. All the items listed in the notice of the meeting have been addressed. It is noted that the resolutions passed at the general meeting were supported by all shareholders present and voting instructions are included in the minutes. The minutes will be available to shareholders on the company's website no later than 2 weeks from today, a bit earlier at the latest April 14.

Thank you very much. I would like to declare the meeting adjourned. It is now 17:10. Thank you very much. Have a very nice Easter time and a wonderful spring. Thank you.

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Good morning, everybody, from a sunny cold and snowy Helsinki. Welcome to Kalmar's Financial Statements Review 2025 webcast. My name is Carina Geber-Teir, and I'm heading the Investor Relations at Kalmar. Today's results will be presented by our President and CEO, Sami Niiranen; and CFO, Sakari Ahdekivi. We have a Q&A session in the end of this presentation where you can ask questions. I would like to remind you that the webcast is recorded, and it will be found on Kalmar's Investor Relations website later today. Please also pay attention to the disclaimer as we will be making forward-looking statements. We are now ready to start the presentation.

Please, Sami, the floor is yours.

Thank you very much, Carina, and good morning, everyone, from Helsinki. It's my pleasure to present Kalmar's fourth quarter 2025 results. And starting with the highlights. In 2025, Kalmar continued its successful performance in an environment characterized by geopolitical turmoil and trade tensions. During these unpredictable times, we demonstrated resilience and performed well in many areas. Our orders growth was strong. Sales development was stable, and we improved in profitability. Our focus of becoming a service-driven company remained while we continued investments into world-class sustainable innovations. The fourth quarter was a strong finish to the year. I will cover the main outcomes of the financials here and cover the details in the following slides.

Firstly, our orders increased with 5% to a record level of EUR 511 million, boosted by a few sizable equipment orders in the quarter. We are proud to report that our sales grew by 11% to EUR 487 million. We saw a stable demand environment in the last quarter of the year, which was in line with the previous quarter. The overall demand remained good despite continued market uncertainty. Profitability improved. Comparable operating profit reached EUR 60.5 million and represented 12.4% of sales. Operating cash flow for the quarter was also strong. It was positively impacted by a decrease in inventories. Then looking at 2026, we expect Kalmar's comparable operating profit to be above 12.5%. And Sakari will cover the guidance in more detail in the financial section of this presentation.

Let's now take a closer look at the profitability for the fourth quarter. As you can see in the comparable operating profit bridge on the right, our profitability was positively impacted by higher volumes and successful cost management during the quarter. We maintained a solid comparable operating profit margin, which increased to 12.4% compared to the comparison period. This improvement was delivered despite the negative impact of both tariffs and the result from our associated company, Bruks Siwertell.

Let's now move to orders development, which were on a record level across both our segments. Equipment orders increased by 5%, primarily boosted by a few sizable orders, as mentioned earlier. I will cover some of the announced orders for the fourth quarter later in this presentation. Services orders also hit a new record level and orders were strong across the whole services portfolio, driven by recurring business, renewals and new won contracts. Services orders increased to a new record level of EUR 166 million, which is a 6% improvement. And the overall demand for Kalmar's offering remained relatively stable compared to the previous quarter. And we will look at the geographical breakdown of these orders on the next slide. And then finally, the order book remains solid.

This slide shows you the geographical split of orders across our new reporting segments, the Americas, EMEA and APAC. The fourth quarter's orders received were driven by the Americas with a few sizable orders pushing the orders up by 18% in this region. Despite the strong improvement in the Americas, the demand environment for our distribution end customers in the Americas was still hampered by trade tensions, causing slowness in decision-making. Nevertheless, the Americas orders increased by 17% in 2025. In EMEA, we saw a decline in orders received during Q4, which is explained by the timing of large orders in the comparison period. However, full year orders for EMEA grew by 3%. Within APAC, the order intake was stable for the quarter and showed a 10% improvement for the full year. And then looking at the overall demand environment, Ports and Terminals end customer segment remained on a good level, whereas manufacturing and heavy logistics were sequentially stable during the fourth quarter and the distribution end customer segment continued to be impacted by market uncertainty.

Now let's review our sales performance, which demonstrated a favorable development throughout 2025. During the fourth quarter, sales increased by 11% to EUR 487 million. Both segments contributed, each growing by 11% Services share of sales were on a stable level at 33% during the fourth quarter and 35% in 2025, up by 2 percentage points year-on-year. And this is well in line with one of our strategic pillars called Growing Services. Now let me show you how our sales performed across our 3 geographical regions. We saw positive sales development in all regions during the quarter. In both EMEA and the Americas, sales grew, driven by growth in both segments. However, for the full year, the Americas was impacted by prolonged market uncertainty, a factor visible in the full year sales figures. Within the APAC region, the Equipment segment performed well, driving the sales up by 16%. Overall, sales in APAC also improved in 2025, driven by Equipment and Services segments.

The positive momentum in our Eco portfolio continued. The share of total sales for our low-carbon solutions covering electric, hybrid and sustainable services rose to 43% and the order intake share was at 42%. This clearly demonstrates the increasing customer demand for these offerings. Furthermore, the fully electric machine share of equipment orders for the last 12 months increased to 11%, up from 9% a year ago. And our key innovations during the fourth quarter included the launch of a new comprehensive range of Kalmar DC charging solutions and the next-generation lithium-ion battery solution for Kalmar's electric straddle carriers, which has been introduced also to our counter-balanced equipment portfolio in Q3 2025.

Kalmar has a well-diversified business portfolio globally with 4 end customer segments that performed well in 2025. The only exception was the distribution segment, our largest end customer segment in the Americas, which was impacted by prolonged market uncertainty throughout 2025. As I've already mentioned, services share of sales reached 35%. The Services segment continues to bring stability to our total revenues, providing resilience for Kalmar. Our Eco portfolio remains an important driver towards our climate target, which is part of our performance targets until 2028. The sales of the Eco portfolio remained high, landing at 44% of total sales. Our successful results in 2025 were achieved by our team of 5,300 passionate employees worldwide who are dedicated to executing our strategy. We demonstrated a strong ability to adapt to changing circumstances in 2025, which provides us with a strong foundation for 2026 even as the market environment remains unpredictable.

Let's now look at 2026 from a macroeconomic standpoint, which is one of the hot topics at the moment. The current macroeconomic uncertainty driven by geopolitical tensions leads to increased volatility in economic data, making it difficult to provide long-term forecasts. However, as this data shows, based on external indicators, the market in 2025 has been more resilient than previously anticipated. IMF increased its global GDP forecast again in October compared to July 2025. Also Drewry has again upgraded its container throughput forecast for 2025 to above 6% and for 2026 to 2.1%. Oxford Economics has also upgraded the global manufacturing forecast upwards for 2025 and 2026 since June. The only exception is the global retail output development for which the 2026 forecast has been revised downwards to 2.2% from 2.7% in September 2025. However, this represents a slight acceleration in growth compared to 2025, which was 2.1%.

Then building on the external market estimates from the previous slide, let's look at the current demand outlook for Kalmar. We anticipate that the total market demand for the next 6 months remains approximately at a similar level to what we saw in the second half of 2025. It goes without saying that trade tensions and increased geopolitical instability could have an impact on our markets and the demand from our 4 end customer segments.

Now I would like to give you an update on the status of Kalmar's fleet activity, which remained on a good level in 2025. Compared to the third quarter of the year, we saw an uptick in North America towards the end of the fourth quarter in 2025. Our installed base has grown steadily to over 70,000 machines from 68,000. At the end of 2025, we had over 16,800 connected equipment globally compared to 14,500 equipment at the end of 2024. And then if you look at the regions, we see a positive trend year-on-year, indicating increased activity at our customer sites during the year. However, there are also some variations, as you can see in terms of the Latin America quarter-to-quarter development, which was impacted by market uncertainties mentioned earlier.

As I promised, let's cover some of the highlights from our published orders during the quarter. Within Equipment segment, we agreed on 16 hybrid straddle carriers to Transnet Port Terminals in Cape Town and Port Elizabeth in South Africa. 3 Kalmar hybrid straddle carriers to Forth Ports Grangemouth, Scotland in United Kingdom and 30 hybrid straddle carriers to Maher terminals, marine container terminal in New Jersey in U.S. In Services, we concluded a 10-year strategic supply agreement with Patrick Terminals for Brisbane AutoStrad terminal in Australia, a modernization services agreement to relocate and modify 2 ZPMC ship-to-shore cranes with Eurogate for its container terminal Wilhelmshaven in Germany; and an agreement with OSTP Finland for the delivery of 5 Kalmar medium forklift trucks with a 5-year Essential Care maintenance contract for the machines and a 3-year Kalmar Complete Care service agreement with Yilport Oslo Terminal Investments AS in Norway.

Then let's continue to sustainable innovations, which remained high on our agenda in 2025. And the year was filled with notable innovations which were manifested in multiple milestones during the year. Here, I will present a few of those. During the year, we expanded our electric offering. An example of this is the official start of sales of Kalmar's third-generation electric terminal tractor in North America. Within electrification, we launched next-generation lithium-ion battery technology for our electric counter-balanced equipment portfolio and electric straddle carriers. Furthermore, we kicked off a 5-year Move2Green R&D program and were granted EUR 20 million funding from Business Finland leading company competition.

Moreover, the construction work of our new innovation test center in Ljungby, Sweden started during the year. In automation, we expanded our offering. An example of this is Automation as a Service, which is a subscription-based model designed to ensure successful and efficient deployment of automation in marine container terminals and intermodal sites. Another example of automation is a flexible, scalable Kalmar One automation system introduced as a stand-alone solution in 2025. And with this, we are responding to the increasing demand from customers for a modular OEM and equipment type agnostic fleet management solutions.

Moving into a short summary of financial highlights before handing over to Sakari. The fourth quarter was a strong finish to the year with a record order intake and solid sales growth. Both equipment and services orders increased, boosted by a few sizable orders within the Equipment segment. Services orders were strong throughout the entire services portfolio and sales improved in both segments. The shortfall of the quarter was the services margin development, ending up at 16.2%, impacted by tariffs. Tariff-related impacts were proactively mitigated in the Equipment segment, and Sakari will provide a more detailed view on the margin development for both segments shortly.

At the end of 2025, Kalmar was in a good financial position to capture the growth in 2026 despite the continued uncertain market environment. Finally, I would like to wrap up my part by highlighting that we remain committed to our strategic priorities and driving sustainable growth by leading the industry with innovations towards automation and electrification, expanding our services business and presence and pursuing operational excellence to ensure long-term value creation in line with our 2028 targets.

So I will now hand over to Sakari. So thank you for listening.

Thank you, Sami, and good morning to everyone also from my side. Let's start with our traditional slide on the financial profile of Kalmar. And I'll do some comparisons to the targets that Sami just was showing. So for the orders received in 2025, we achieved an 8% growth. And also when we compare the orders and sales, we can see that we have strengthened the order book and the order book is close to EUR 1 billion at a healthy level. Due to the good operational execution and successful management of our costs, our comparable operating profit margin was 12.8%. That's up 0.2% compared to the previous year and moves us closer to the 15% target that we have set out for 2028.

Our balance sheet has been further strengthened. Our leverage ratio was actually at 0.0x EBITDA, and that's, of course, clearly lower than our target of less than 2x. Finally, with the strong cash flow in the fourth quarter, our cash conversion for the last 12 months or the full year '25 was 89%. Then moving into the segments for a little more detail there. The Equipment segment saw a strong quarter. The orders received increased by 5%. That may not sound like a really high number, but I think it's important to remember that we had a very strong quarter also in Q4 of the previous year. So the comparison was already a tough one. The orders were, as Sami said, driven by a few sizable orders. But overall, also the order intake across the business was good.

Sales was also strong again compared to a strong comparison period in 2024. During the fourth quarter, orders increased in the Americas, while we saw a decline in orders in EMEA and APAC remained stable. Equipment sales increased by 11%. The Equipment segment's profitability improved in absolute terms by 24% in the quarter compared to 2024 Q4. As you can see from the bridge on the right-hand side, this was as a result of higher volumes and also lower fixed costs in the quarter. The comparable operating profit margin was at 13.6%. We proactively mitigated the majority of the tariff-related impacts, although they still had some negative impact on some of the margins in our product lines.

Then moving on to service. Services orders received increased by 6% in the quarter and totaled EUR 166 million. The order intake was strong across the entire service portfolio, driven by recurring business renewals and won contracts in the previous quarter. On the sales side, the fourth quarter sales increased by 11% despite market turbulence and totaled EUR 163 million, which was mainly driven by volumes as opposed to price. Services segment comparable operating profit was one of the low lights of the quarter, remained flat in absolute terms and the operating profit margin was at 16.2%, which actually represented a decrease of 1.3 percentage points. This decrease was mainly driven by tariffs. And of course, it goes without saying that our focus remains on mitigating actions related to tariffs and also otherwise driving the profitability of our Service segment going forward.

So speaking of tariffs, the tariff landscape is largely unchanged from previous quarter. However, of course, we continue to monitor that closely, and we, of course, cannot be sure what happens in the future in these terms. As in the previous quarters, our responses to tariffs have included mitigating actions with price increases, supply chain actions, driving excellence and other operational excellence initiatives in our operations, which takes me nicely to our driving excellence program. This is one of my favorite themes. And we have, of course, we see -- or achieved good results here. The execution of Driving Excellence, which was launched back in 2024, is proceeding as planned, and our target is to reach EUR 50 million of gross efficiency improvements by the end of 2026. In 2025, we made good progress with the implementation of driving excellence. And by the end of the fourth quarter, we achieved a run rate of approximately EUR 34 million of annualized gross efficiency improvements. As before, the majority of these improvements were secured from sourcing activities.

Then moving on to the balance sheet side or towards that return on capital employed was now at 23%. And as you can see, this has been climbing now. The ROCE number is now clean of the demerger-related items affecting comparability, which have been there in the previous quarters. So this represents in that sense, kind of a comparable or clean level of ROCE at 23%. And as you remember, our target long term is over 25%. As I mentioned in the beginning of my section, our balance sheet was further strengthened during the quarter with a leverage ratio now of 0 and a gearing of 0.7. The decline in interest-bearing net debt, which was -- which improved our leverage ratio was primarily as a result of strong cash generation from operations in the quarter and this allowed us also to partially repay some of our loans from financial institutions during Q4.

Looking at the maturity profile, I would like to highlight that we refinanced EUR 100 million and prepaid EUR 50 million of our loans from financial institutions. In addition, we exercised the first 1-year extension option of our EUR 200 million long-term revolving credit facility, extending maturity now to 2030. Cash flow was strong in the fourth quarter. It was in euro terms, EUR 113 million, which was, of course, clearly up from both previous year and the previous quarter. The improvement was driven, firstly, by profitability, but also by a clear decrease in inventories during the quarter, and cash conversion for the last 12 months was 89%.

We concluded the year with solid financials, as you can see. As a result, the Board of Directors proposes to the Annual General Meeting that of the distributable profit, a dividend of EUR 1.10 for each Class B share and EUR 1.09 for each Class A share to be paid for the financial year 2025. This equals to EUR 71 million in total. Our earnings per share for the year was EUR 2.55, which was up from the previous year at EUR 1.99. The effective dividend yield is 2.7%. The record date of the dividend is proposed to be the 2nd of April '26 and the payment date at the 13th of April 2026. And just to iterate that the dividend proposal for the financial year is in line with our dividend policy of between 30% and 50% payout ratio. And then as Sami already said, our guidance for the full year 2026 is that Kalmar expects its comparable operating profit margin to be above 12.5% of sales.

And that concludes my part of the presentation. We'll move to Q&A. Thank you.

Okay. Thank you, Sami and Sakari. Now I think we are ready and handing over to the operator for questions.

[Operator Instructions]

The next question comes from Antti Kansanen from SEB.

I have 3. I'll start with the demand guidance for the -- or demand outlook for the first half. And I understand that this is not a guidance for your order intake. But if I look at kind of the second half situation, am I right in understanding that on Q3, it was a bit of a weak quarter in terms of timing of large orders, while on Q4, it was stronger. So on average, that is a good representation of order intake in a flattish demand environment?

Yes. Thank you, Antti. So yes, that's how it is. And it's quite typical in our business that we have volatility between the quarters. So -- and you could see it quite clearly in Q3 and Q4. Overall, when it comes to the outlook -- demand outlook for the next 6 months that we indicated there, of course, the underlying market demand, that's how we see it pretty much unchanged at the moment, of course, but keeping in mind the uncertainties that are around.

And also, of course, that it's not a direct parallel of what we expected in orders. So it's a demand outlook, not an orders guidance.

Yes, I do understand that. But obviously, kind of Q4, you had a strong quarter on the larger orders compared to Q3. But on average, it's fairly something that you would expect typically.

Yes. We need to look at the longer period, I would say, we cannot pinpoint to different quarters and not even the 6-month period. But I think if you look at the year-on-year, for instance, 2024, 2025 and the fluctuation between the quarters, I think then you can see some kind of pattern there.

All right. That's clear. Then the second question is on kind of the 2 negative profitability impacts that you flagged here, the tariff impact on the services margins and then the negative impact from the Bruks Siwertell. So do you want to give any color on quantity of these impacts on the quarter? And how should we think about both of those going forward?

Yes. If I touch upon the tariffs and especially service affecting services profitability, I would say that we had an internal calculation error in Q3. So therefore, you can see the difference between Q3 and Q4 result. So that worsened our result in Q4. Overall, of course, we are living in this tariff landscape, which is affecting our business, both on equipment and services and continues to do so. And overall, of course, what we have said is that we don't think that the tariffs will go away short term at least. So we need to live with those. But I think we have been managing our business in a very good way. But of course, now it's visible in our Q4 services. And then maybe you want to?

Yes. Maybe building a little bit on what Sami was saying, I think when you look at the services profitability, you should probably look at Q3 and Q4 together. And that would represent probably the correct level. But there is a bit of a movement there between the quarters. Then on Bruks Siwertell, yes, Bruks Siwertell was a loss-making unit in Q4. And if we look at the annual impact, it's also a loss provider for us in the full year. And to quantify because this is also then in the financial statements, it was a negative EUR 3 million for the full year 2025, whereas in '24, it was a positive EUR 5 million. So that's quite a big difference actually. And there was a loss in Q4, whereas in Q3, there was actually a profit. So also when we look at the other segment where this profit contribution resides, it does swing that to some extent as well.

But I mean, on both of those, if it was a bit of an internal error on the services side, is that something that you can react quite quickly and that would start to go away already on Q1? And also on the Bruks Siwertell side, what's the reason for such a swing on the profitability is something that you can address quickly? Or is it something that will maybe linger on a bit longer?

Yes. On the services and this internal calculation that was in Q3, Q4. So that has been mitigated already. But of course, the tariffs are not going away or have not gone away, of course. So we need to live with those. So there will be a bit of possibly dilution even going forward, of course. And then maybe commenting on services margin overall 17.6% for the entire year. Of course, we cannot be satisfied with that one coming from 17.5% the year before. So of course, despite the tariffs, of course, we should have been a little bit better.

And on the associated company side, we expect that to turn back to profit.

Okay. Then the final one is on capital allocation. I mean, very strong cash flow for the quarter, for the year. You don't have -- you have a very strong balance sheet. Is the current kind of a dividend payout ratio in your opinion, kind of -- I'm just thinking, do you need such a strong balance sheet for the business that you currently hold, given there's not high M&A ambitions and very limited CapEx needs. So how should we think about kind of capital allocation and shareholder distribution going forward? Just stick with the current dividend payout scheme? Or has there been any other discussions?

Yes. I think this is our second time now. And of course, what we have said that we want to be a good dividend payer and the range is 30% to 50%. So we are still quite a new company in that respect. Of course, that is one key area for our capital allocation in our current strategy, which is an organic strategy. The other key focus areas, of course, are our strategic pillars, basically, meaning R&D investments, which was 3.1% in 2025. And then, of course, investing back to -- reinvesting back to services as well and keeping our facilities premises in a good shape throughout the globe. And that is our current organic strategy.

Appreciate that, but surely kind of your cash generation on a quarterly basis is strong enough to take care of those maintenance CapEx investments and things like that. But I'm just thinking kind of as you move operationally with the improvements, will there be a time that you would look at M&A a little bit more constructively?

Yes. As I said, now we are executing our current strategy as good as we can. Of course, we are happy with the progress so far after 1.5 years, basically. And then, of course, if there will be changes to our strategy in the months or years to come, of course, we will communicate it then. But I think to have a strong cash position at the moment and generating cash, I think it's beneficial as well.

Yes, I was going to say the same goes for the payout ratio. So no change expected at this point.

The next question comes from Mikael Doepel from Nordea.

First of all, on the demand situation, I appreciate your guidance here, which is obviously good and describes the underlying demand in that. But as you said, it's not necessarily an indication of your particular orders. So I'm just wondering if you could talk a bit about what kind of a sales funnel do you see currently on the equipment side? What is the activity there? What are the sizes, the potential deals, which regions and segments are most active and so on. So maybe a bit of a color on what you see in your project pipeline or sales funnel.

Yes, that's a good question. Thank you. So I think overall, the pipeline is healthy as it has been in the past quarters as well. But then it, of course, varies between different regions as well as different customer -- end customer segments. For instance, Ports and Terminals has been, I would say, quite positive during 2025 and Q4 as well, whereas on the other side, the distribution end customer segment, mainly in the Americas affecting our sales or orders in Americas, has been slow still. And then heavy logistics as well as manufacturing have been quite stable, I would say. So that kind of sentiment, we expect to continue, okay. We can look at the external indicators that we just reported as well when it comes to container throughput that is supposed to come a little bit down, but it's still on a positive side after 2 really good years there.

And then the distribution slowness is still visible, of course, in those numbers as well. So that's what we see. The destocking that we talked about maybe 1 year ago with the dealer stock and affecting our terminal and tractor business, that is gone. So the inventory levels are good, but the uncertainties caused the slowness in our terminal tractor sales still in Americas. Then I think Europe has been strong so far. So we expect Europe to continue strong. And of course, services is a big part of our success there. And then I would say Americas now compared to the rather weak comparison period, of course, it increased, which is delighting. So we had -- like today, you announced a good horizontal transportation straddle carrier order, big one over there. So that is a little bit picking up there, but it's too early to say whether Americas, including South America, will continue growing. So we will watch and monitor, of course, the situation. But what we can say today is that for the next 6 months, we see the underlying demand pretty stable compared to the H2 2025.

And still about the Americas and talking to the front lines there, what they say is that the customers are cautiously resilient, which means that there are some investments, but there is also uncertainty and everything that goes on in the geopolitics has an impact on the decision-making.

Yes. And then I guess, as we clearly see from our Q3 and Q4 orders that it can be pretty lumpy even if the underlying demand doesn't really change that much.

Yes.

No, that's helpful. And then just on the service side of the business. So very good growth reported there in the orders, mid-single-digit growth despite these uncertainties here and there, also fairly good fleet activity based on the chart you provided. But looking ahead, I mean, is there anything you can say about the fleet activity in the early parts of 2026? What have you seen there? Any changes to the trends or still fairly positive? And also, what is your confidence level in continuing to grow the service business mid-single digits going into 2026 as well?

Yes. Especially talking about the activity in the Americas, the fleet activity. Unfortunately, it's too early to say whether the uptick in the end of the year, the January has not been as strong as the end of the year. And you see lumpiness also very much based on some of the kind of commentary on the geopolitics and so forth. So it's too early to call kind of that the uptick would be stable for a longer time.

Yes. Then if I continue on services and growing services, it is and will remain and whatever strategy we have as one of the strategic pillars, definitely. So we want to grow further. So I'm happy with the top line growth in services. I think that developed well. But of course, on the margin side, we had a bit of pressure there. So -- but both areas, I mean, the top line growth, I mean, orders as well as the profitability will be a key focus area going forward. And we see a lot of opportunities there. Of course, the market is large for services to capture.

Yes. Just to be clear on the comment on the activity levels, was that on Americas specifically that you...

Yes, on the North America.

Okay. And then just finally, on the Driving Excellence program, EUR 50 million gross savings target by the end of 2026. Just wondering if you could provide a bit more details there. I mean, what were the net savings that you achieved in 2025? I think you're saying that it's mainly attributable to the ones you have gotten already to supply chain rationalization. So I would assume that a lot of that actually flows through to the bottom line. So wondering if you have that figure, the net savings impact in '25 and also what we should expect for incrementally going into 2026?

Yes. If I start, I think it's really difficult to give you a net savings number because, of course, the actions that we do in Driving Excellence then result in the gross efficiency improvements that we report run rate -- but then there are so many other things. I mean tariffs is one thing. So of course, this is one way of mitigating the tariffs. Then there's a pricing element. So what is actually the net impact of the driving excellence alone? I don't think there is kind of a net impact from that because it gets mixed up in everything else that's going on.

The next question comes from Panu Laitinm�ki from Danske Bank.

I just wanted to ask still on the tariff impact on the services. So kind of what is the underlying issue there? Is it that you import spare parts to the U.S. and cannot increase the price enough? And maybe on the magnitude of this issue. So it seems that it was quite severe in the U.S. given that there was significant impact on the whole services and U.S. is not whole of that service. So I mean, could you kind of talk a bit more about what is the problem? And how soon do you think it could be kind of -- yes, how soon can you mitigate that?

Yes, that's a good question. So exactly. That's where it's coming from that we are bringing parts and the components, which have steel, aluminum, different kind of content, of course, to the U.S., and they are exposed to tariffs, and that's what we need to mitigate. And of course, we talk about quite high increases. So overall, including everything, both equipment and services, we talk about 5% to 18% price increases that we have implemented, trying to mitigate those tariff actions, but we haven't been able to mitigate fully even to services, I mean, to the parts. So if I give you a bit of magnitude for the entire year, if you look at our profitability of 17.6% without tariff -- net tariff impact, we would have been closer to 18%.

Okay. But going forward, I mean, do you just try to increase prices more or wait for the tariffs to be lowered? Or what is the kind of solution for this? Or is it permanently at this level going forward?

Yes, that's how we see it now. No change in the tariff landscape compared to Q4. So basically, we have been increasing our prices. We try to be on top of that situation all the time. Of course, it's a very complex situation when we are bringing parts from different sources, of course, and we need to know exactly, okay, what is the different material content there. But I think we have been managing this well. The only thing was this internal calculation between Q3 and Q4. But that will continue definitely. And now we have mitigated that one. So I think I'm confident on delivering parts to our customers with the right pricing as for now.

So the target is, of course, to fully mitigate the tariffs.

The next question comes from Antti Kansanen from SEB.

One follow-up, which is on the order growth in Americas and on a group level on '25. How much of that is kind of tariff-related pricing gains in Americas? If the full year orders there are up, was it 17% and on a group level, 10%? How much is price and how much is volume?

Yes. Let's say, if we start with services, I think on the services when the tariffs were -- when they started in Q2, I think the growth in services in Americas is almost everything coming from price increases, I would say, not from volume. That's with the services. But on the equipment side in Americas?

Well, there are, of course, large orders in the Americas, which is, I think, the primary driver there, of course, pricing to some extent as well.

And is there any kind of figure regarding kind of equipment sold in the U.S., how much the prices that your offering have gone up during the year because of the tariff impact?

Yes. I would say on the equipment side, in general, I think we talk about 5% to 10%.

All right. So as a conclusion, you still have kind of volume growth both in Americas and on group level on the equipment side in demand in '25?

Correct.

Yes.

Yes. And if you look at the latest order that we published today, the Maher, the U.S.A. order, of course, that's a major order also driving growth compared to Q4 last year.

The next question comes from Mikael Doepel from Nordea.

Just a very brief follow-up. I was thinking about your tariff slide there and you talk about the Poland assembly. How big part of the components are sourced from China there? And what are the alternatives for you to change that sourcing? Just trying to figure out what you can do to mitigate tariffs here.

Sorry, you were referring to Chinese or...

No. I mean, I guess. Yes, exactly. So Sami if you look at your assembly in Poland, I guess you're sourcing parts and components from China, which are subject to tariffs. I'm just wondering what you can do to mitigate that? What are the alternatives for sourcing here?

Of course, we have a high focus on sourcing, and we -- all the time, we look at the so-called dual sourcing opportunities. And that's what we have been doing for a long time already. And I think that is the way to go, of course. We need to have different alternatives there. When it comes to, let's say, the components material coming from China to U.S., we don't talk about big numbers there. It's a very low double-digit number, I think, at the moment. So we are not exposed to huge risk or price increase there.

And it depends on which component we are talking about. Of course, then there are some batteries and so forth that are -- but almost everybody is in the same situation there. So in that perspective, the kind of majority of the parts are not originated from China that we source. But it's a very, very complex landscape and the different tariffs, you have the reciprocal ones and then you have the steel and aluminum, and there are a lot of contradictory messages out there how these will be treated. So that is why we keep on kind of building resilience, working on the databases and being able to be very competitive in this kind of fluid landscape that we don't anticipate to go away.

Right. And also just a follow-up on the tariff discussion here. So obviously, it seems as if that you're more successful in mitigating that in the equipment business opposed to service. I know we talked about what it's about components and so on. But is there anything in the competitive landscape that would also lead to you not being able to fully capture or kind of compensate for the tariffs in the service business as opposed to the equipment business?

No. I think like we said, we try to mitigate everything, of course, on the service side with parts. And of course, there was a bit of delay in -- was it in Q2 last year. But of course, now when we have implemented those price increases, of course, they should mitigate those. But then overall, if you look at the whole tariff landscape, I think we are affected both on the equipment and services side. So not huge difference there, I would say.

Yes. So this shouldn't get mixed up with the Q4 impact versus the Q3. So that was a complete or a bit of a different issue. But as Sami said, I wouldn't say there's a big difference between equipment and service in mitigation.

Okay. And then just finally, on Europe, I think you mentioned that you see a fairly good demand picture in Europe. Just wondering if you could talk a bit about that. Where is that strength coming from? Which segments, which countries perhaps?

No. I think overall, like we have seen in the past years as well, of course, ports and terminals, they have been strong in Europe, then heavy logistics as well as manufacturing. I think those 3 end customer segments continue to be attractive for us, whereas distribution end customer segment is not very big in Europe, of course. And then I would say services. We have a large fleet operating in Europe. And of course, we try to be very active with our customers. So we see opportunities on the service side as well.

You should look at -- yes, looking at our installed base of 70,000 equipment and the replacement market on that one. So of course, that is something that is driving overall our business because the majority, of course, comes from replacement business.

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

Thank you for all the good questions. I think we are now ready to end the session and happy to see you online and happy to meet wherever you are. And just as a final reminder, we will be back here in Q1 2026 with the result publication at the 5th of May. And thank you for now and wishing you a nice rest of the day. Thank you.

Thank you.

Welcome, and good morning, everyone, to Kalmar's Q4 2025 Pre-Results Call. My name is Katariina Kataja. I'm from Investor Relations at Kalmar. Today's presentation will be given by our CFO, Sakari Ahdekivi. We have a Q&A session in the end of the presentation where you can ask questions. Please also note that this webcast is recorded and the recording will be found later today at Kalmar's Investor Relations website. But now we are ready to start the presentation. So I will hand over to Sakari.

Thank you, Katariina, and good morning to all, and welcome to our pre-silent call this morning here from Helsinki. So as usual, the disclaimer in the beginning and then the normal way of moving forward here.

I will recap where we left off after Q3, covering the Q3 highlights. We will also cover the order releases booked in Q4, which we have been able to release and then also have a look at the latest market indicators for 2026 and have a discussion around those. And as Katariina said, then a Q&A at the end.

So with that, so Q3, in a nutshell, you could say that the profitability was strong and the orders were quite low. But if we go into it in a little bit more detail, so we had record high comparable operating profit margin of 13.8%, and we had, you could say, exceptionally high profitability in services and then a solid profitability in -- on the equipment side.

The market activity during the third quarter was in line with our own expectations. So even though the global market uncertainty persisted and has also continued since, as we all know, and the volatility in the tariff and trade policy landscape was there. It was dampening some of the decision-making on the larger deals in Q3. So that was the operating environment in that quarter.

However, our services orders increased by 12% year-on-year, and they were strong across the entire portfolio, whereas the equipment orders declined by 20%. So even though the market activity was pretty much in line with previous, it was impacted by the timing of larger orders, delayed decision-making and also our orders releases were less in Q3 than in the previous quarters.

And then we maintained our outlook for 2025, so unchanged comparable operating profit expected to be above 12% in 2025. So that was Q3. In a nutshell, if we still continue a little bit on Q3 on the market activity by -- or the orders rather across the regions.

You could say that it probably makes more sense to look at the year-to-date numbers than the quarterly numbers that fluctuate quite a lot depending on how the larger orders fall into which quarter and into which region. Europe, year-to-date up until the end of Q3 was strong.

There was a decline in Q3 in the quarter, explained by the timing of larger orders. The Americas showed nice growth percentages, but let's remember that this was compared to a weak comparison period, both in the quarter and year-to-date. So still Americas activity, although better than in 2024, remained on the low-ish side.

And then EMEA was stable. And services orders were strong across all the regions. Then one reminder. As you know, we have somewhat changed our regional segment structure. And in the upcoming reporting in Q4, we will have the new structure where Europe becomes EMEA, Americas remains intact and then EMEA becomes APAC, which will, to some degree, then change the numbers also, but we have published the comparables already previously. So you are aware of that. But just as a reminder that this will be changing with the Q4 reporting.

All right. Then if we just have a recap of where we are on an LTM basis, not to cover everything here, but maybe a couple of highlights. Over the last 12 months ending at the end of September '25, we've been able to increase our order backlog by about EUR 100 million.

So the orders have been higher than sales, strengthening then, of course, the -- our ability to deliver then going forward from that point onwards. And then maybe the other thing to note here is the comparable operating profit margin on an LTM basis at 12.7%, perhaps leaving the other metrics here uncommented at this stage.

And then the order releases booked in Q4. So a larger number of releases than in the previous quarter with -- starting from the left-hand side with a significant order of 16 straddle carriers for Transnet Terminals in South Africa and 3 hybrid straddle carriers in the U.K., a large order. Then a 10-year strategic supply agreement with Patrick Terminals, not an order as such, but a significant frame agreement, including support for existing and future automation projects across Patrick's terminal network.

And then modernization services agreement with Eurogate Container Terminals to relocate and modify 2 ZPMC ship-to-shore cranes, a large order in that area in the services segment. Then 5 Kalmar medium forklift trucks in Finland and then also a 3-year Kalmar Complete Care Service agreement with Yilport Oslo Terminal and the investment size here is large. So quite a few nice order releases from the fourth quarter.

Then the latest statistics on the global growth expected in 2026. If we start from the top left-hand corner, so the global GDP development, largely unchanged both compared to the previous estimate as well as year-on-year, so 3.3%. global container throughput has been very strong in terms of percentage growth in '24 and '25. And this has already previously been predicted to be lower in '26, again, largely unchanged from previous quarter.

And then the average growth rate in manufacturing output, there is actually an uptick for '26 from 1.7% to 3.9% and then the global retail output development going slightly in the other direction. So that is the current view of the global growth expectations from public sources.

Then the connected fleet activity, and this is, of course, Q3 was on a good level. The only red area there is North America. So if we look at the other areas, Europe was showing quite good growth, same with Oceania. Also Asia quarter-on-quarter, plus 3% and then Latin America with quite good activity levels there and then North America being the one in the minus.

One thing maybe to note on that is that the activity levels did see a slight pickup then towards the very end of the year. So some change there. But more specifically, we will come back to this then for Q4 then when we publish our results in February. So that completes the short recap and presentation, and we're ready for questions, which also then Carina and Katariina will support as we -- as necessary. So please go ahead.

Antti Kansanen has our first question.

A couple of them. First, I'll start with the demand in Q4 or orders in a couple of different directions. So Sakari, do you want to give any kind of comments on the changes on the sentiment around your clients, especially in the Americas during Q4 if we compare to the previous quarter? I mean, obviously, there's a lot of uncertainties just during this week regarding tariffs and things like that. So how would you describe the overall environment in Americas?

Yes. Of course, it's a daily changing landscape as we've seen between yesterday and today. But I would say that overall, if we just talk about the entire market, we -- it may sound funny, but we see it rather stable, which means largely unchanged in terms of the sentiment.

Then, of course, the timing of the larger orders can then vary from quarter-to-quarter. And as I just recapped for you in Q3, we didn't have too many of those decisions. So that, of course, then is the factor that changes. But I would say that largely unchanged market sentiment in -- across the regions, but the same applies also for the Americas.

Yes. And then specifically on the Q4 orders, if let's assume that there's a little bit of a change on the larger order side and then you have the underlying sentiment remaining around Q3 level. Are there any kind of more moving kind of what else is different from Q3? Is there a seasonality in your business that would lead to typically higher orders, if I would assume that the underlying market is flattish quarter-on-quarter?

Not seasonality as such. So we're not a seasonal business. Although, of course, if you remember Q4 from last year, there we had a large number of larger orders, and we had a high order intake. But that doesn't necessarily mean that, that's seasonal. It's more the timing of the decision-making, which can vary quite a lot for the large orders.

And Antti, as we previously said, so the U.S. market remains kind of as it has been, but the market is not completely dead, but looking at the kind of low levels where we are stemming from. So customers are making investment decisions still, but the uncertainty is kind of causing hesitations. And then, of course, if you compare to Q4 last year, we have to remember that then we were talking about the destocking and that kind of is history and that chapter is closed. So it's more about the real demand in the market.

That's a good point that Carina was adding that the destocking 1 year ago was dampening the environment. Now that, of course, ended more or less at the end of Q4 last year, beginning of this year. So that's not there anymore. So that's a change for the better.

But that was a question I was about to ask that if we look at the comparison period a year ago, that's at the same time, both weak and a strong comparison because you had a lot of large orders, but then you reflect to the destocking. So how is the comp in Europe and Americas specifically year-over-year? How should I think about that, if I try to model it year-over-year?

Yes. I think if we just talk about the market demand activity without, of course, going to the order levels as such, I think, as we said, fairly stable, but with the exception of no destocking impact anymore in the U.S.

Okay. And then very final one for me is kind of pricing, whether regards to typical like-for-like pricing or then the exceptional tariff regimes. What is the impact on new orders on rough terms if we look at Q3 and then going into Q4 and into 2026, how much are the tariffs raising your orders?

Yes. We commented this in Q3. And of course, to a large extent, we have been able to compensate up till Q3 the tariffs with corresponding price increases. So of course, that then does have an impact on the euro top line to some extent.

I have a bad memory, so I can't really remember what you said specifically on Q3. Was there a number that you gave out?

Not a clear number, but what we said about the equipment segment is that, that we were quite successful, but not entirely mitigating the tariff impacts on the equipment side. And also, we have been -- or have had actions to mitigate the impact on services. But then at the same time, it's a continuously evolving landscape and getting the Q3 and the Q4 was actually -- Q4 is now the first quarter where you have had most of the tariffs kind of implied directly. So even in Q3, that was half of the quarter. So it's a living creature, and we need to come back to the exact details, of course, in the Q4 reporting.

And next question comes from Panu Laitinmäki.

I would continue on the same order intake topic. So a couple of things around that one. You have obviously announced more orders than in the previous quarters, but how much can we read into that? So do you usually kind of press release all the more significant orders? And then on the service side, so you also announced some of the service agreements. So are these significant on the service order intake typically?

Typically, the -- if I answer the last one first, of course, typically, the larger service contracts do have a significance for the service order intake. Then what I would say about the -- I mean, I think we've covered this in earlier calls that it's tricky with the announcements because we can't -- we're not able to announce all the orders because it also needs customers' consent that we were able to do this.

In some cases, that's not the case. And also then the timing might be the other issue because as you know, from past history, sometimes we also announce orders in during the next quarter that were actually recorded in the previous quarter. So yes, you can conclude something from that, but then there's a lot of things that also are left kind of open due to these factors, both the timing of the announcement and then the fact that we're not announcing all of them due to customer wishes.

Yes, Panu, to your another question on do we announce all the kind of large significant major orders. It's dependent on the customer that whether we get the acceptance or not.

All right. Secondly, just I would like to ask some of the press releases you've announced in the quarter. So on this supply agreement with the customers, so how does it work? It's a frame agreement. Is this business as usual? Or does it mean that this is something specific that we should take into account in the estimates? And then also on the Rough Terrain products agreement. So could you talk a bit more about what's that?

Yes. I mean the frame agreement is, of course, not an order as such, but it's an indication that we have a strong relationship with the customer. And of course, it's more about the future orders and coming through that strategic agreement.

Okay. And then the Rough Terrain products collaboration.

Yes, I would say similar.

Well, it's one of the partnerships that we've been -- if you remember, previously, we had one with an Italian company and now the Rough Terrain, an extension to the portfolio with the partnership principle and the impact of that remains to be seen, but not probably kind of a huge one.

Okay. Then final one is on the kind of earnings side and revenues. So I think in Q3, you mentioned you had some delayed deliveries and we actually -- in Poland, we discussed that you had some of extra inventory there. So was this significant? Have you given any numbers?

We haven't given specific numbers, but that was a temporary delay, which since was resolved.

Next question comes from Tom Skogman.

I have a couple of questions. When you show this picture on fleet activity, what is the definition? Is it engine hours running or number of lifts or minutes the machines are moving in the yards? Or what is the definition really?

The definition is really on the running hours. So how long the kind of equipment is running, and that is what is recorded then into our system of those equipment that we have kind of the possibility to follow. So it's not lifts, it's running hours basically.

And it's calculus running hour even if the machine is not moving as long as it's switched on basically.

Well, yes, in a way, you could think like that. But of course, the engine needs to be on. So it's not just that it's connected and standing there.

And what's the definition of a significant order and a large order that you show in the order releases? What about -- how many millions of euros is what is the kind of the...

What we said when we talk about a large order, it's a single-digit order. And when we talk about the significant order, then we are talking about kind of lower double-digit orders. Then there is even that the major where we come into mid-double digit and upwards for that one. So that gives you an understanding on where we are with the order sizes, and that's to help you a little bit on understanding the impact. And then there is even those ones trade press releases, which there is an example, for example, there on the OSTP, which does not include a size, then we are really low single digit on that one.

And then could you remind how large the heavy industry segment is? We talk so much about port, but -- how large is that? And can you update -- I mean, we know that a lot of customers in pulp and paper are in trouble. It's a very dynamic market in steel markets, et cetera. But do you see any impacts on how they invest? And how large is that segment?

Well, we've -- as you know, Tom, from our previous presentations, we show the addressable market size in industrial, but we don't report the end customer segments. So from that point of view, the addressable market gives you an idea of the market size.

But do you -- are they investing like normal despite troubles? Or do you see kind of different patterns compared to history or...

I would say it depends, of course, on the industry, but I would say that it's fairly normal.

And then on the tariffs, I mean, are you kind of confident now when we have had a couple of months with tariffs and probably you have sold out all the inventories, I mean, that price hikes are sticking. Are distributors able to push through these price hikes to the end customers? Can you kind of...

Referring, Tom, to the comments we made in Q3 and what we also covered earlier in this call. So mostly, we have been covering the impacts from the tariffs through prices, not completely. And of course, for us, a stable environment is, of course, always better than a moving target because always when you have to adjust, then there's some timing -- time lag with that and then you have an impact. So for us, for example, the fact that the tariff threat from yesterday was pulled, that's a good thing because, of course, then it does -- it means that for now, at least things are unchanged.

I mean you know how your competitors with U.S.-based manufacturing are reacting. Are they -- of course, they source a lot of components also from probably Europe and Asia. But I mean, are they hiking prices like you? Or do they kind of act in a way that would allow them to gain market shares?

Yes, a little bit tricky to comment too much on competitors. But I would say that rightly, as you say, they also source from outside of the U.S. and have -- therefore, even though they would manufacture locally, they also have to deal with the tariff issues in the same way and have to make similar decisions on pricing, for example, in order to maintain profitability.

All right. And of course, the order book is up a bit going into the fourth quarter. So what about cost changes going into 2026? What -- do you have any -- can you help us to understand if there are like any moving pieces on OpEx or SG&A costs? We have had very large savings in SG&A so far this year.

Yes. I think that one Tom will have to come back to with our Q4 and when we talk about our guidance and '26 in more specific.

Thank you, Tom. And Panu have a question still?

No, I didn't. Sorry, I just didn't.

All right. Then let's move to Mikael Doepel.

So just firstly, coming back to your comment in the presentation about the improved connectivity towards the end of the quarter. I missed that a bit. So if you just could repeat what you said on what you saw. I mean, I guess that's an indication of things improving into Q4. But was that a specific region? Or what did you say about that?

Yes, that was referring specifically to the very end of the quarter and the U.S. market. Other than that, we'll have to comment on the activity then in Q4 again in February.

But at the same time, I think it's too early to draw any final conclusion on that because it was really late into the quarter, and that could be just a temporary thing. So let's see.

Okay. And then maybe you could talk a bit about -- we talked a lot about European demand and the European markets. Could you talk a bit about Europe? I mean, what are you seeing into Europe -- in Europe into the fourth quarter in terms of demand and overall market dynamics perhaps in terms of competitive pressure and so on?

Yes, I would say that referring to earlier comments, no big change in Europe in terms of the activity levels and the market environment.

Okay. Would you regard the demand in Europe as good? Or how would you describe it?

Yes. As we showed earlier in the Q3 slides in the regional slide. So the first 3 quarters in 2025, Europe has been quite healthy.

Right. And if you think about the customer segments, anything you would like to flag there as particularly strong or still quite weak?

No, it's been -- it's relatively, I would say, stable on a fairly good level.

And maybe ports and terminals, if you then look at the orders that we have published, so that what we said already in Q3 that ports and terminals have been strong and many of the orders also now that are published stems from that end customer segment.

Okay. Okay. Great. And then just finally, on the guidance. I was just wondering if -- I mean, you have been guiding for an operating margin basically for the full year in the past. Is this still the way forward? Do you plan to change the way you guide? Any thoughts around that?

I would say that, of course, in the end, this is a discussion that we still need to finally have on guidance for '26. But most likely, we will continue to guide in the same way as up to now.

And is there a question from Antti?

No, I had a one kind of a housekeeping question on Q3 margins. I mean, Sakari, I guess you mentioned service margin being exceptionally good or very good on Q3. So any further comment if that is something that probably won't repeat. And the other question that the Q3 earnings strength was driven by kind of significantly or a few millions lower group items or the other line on the operating profit. Is that something -- some of a run rate that is going to be lower? Or was that a quarterly one-off?

Yes. I think, yes, service, I would say, yes, was, as I said, a bit exceptionally high in Q3 compared to the past without speaking about the future. And then it's a little bit tricky to get into specific on the other segment costs in Q4. So we'll come back to that. But it's true that it was lower in Q3 compared to the previous quarters.

But there was no specific reason why it was lower on Q3 that you would like to kind of point out?

No specific reason.

And the service margin, was there something related to pricing or something like that, why it was a bit up on the third quarter?

It was -- yes, I would say that there were probably many factors coming into that. And no specific big reason for that.

A strong commercial performance. And of course, there was -- in that services, there was also volume growth in Q3 that drove the kind of comparable operating profit.

Are there any other questions? [Operator Instructions] Yes, Tom.

Yes. I would perhaps still just want to get a question on all these -- what you have said so far about cost cutting and where we are. I mean -- and just give an update exactly on where we are on that topic, basically.

Yes. Well, maybe just to recap that we have the Driving Excellence program. And of course, that's not a traditional cost-cutting program because it is a lot about sourcing savings and then to some degree, also, it's about process improvements, which, of course, then leads to lower cost in the end. But up till now, that has been a less significant component.

So the driving excellence is very much about sourcing savings, not cost cutting per se. And then, of course, Tom, you remember that we had this fixed cost reduction program, which was actually started back in the Cargotec days. And that has, of course, resulted in lower fixed cost specifically in -- or especially on the SG&A side. But that program was finished already some time ago. And of course, we've been getting some benefit from that also in '25, but nothing new on that side.

And number-wise, the target is the EUR 50 million gross efficiency savings by the end of '26 and in Q3, the annualized kind of improvements that were EUR 24 million.

Yes. So that was run rate at the end of Q3.

So basically, yes, this is -- so just making a bridge to 2026, then if these run rate savings have continued, I mean, they would be something like EUR 35 million or so in -- and if you just do a P&L bridge, what is the saving in '26 compared to '25?

Yes. That we don't have exactly and of course, certainly not forward-looking for Q4. But let's remember that the driving excellence savings, we've all along said that these are gross efficiency savings and some of that saving is then reinvested into R&D, for example, or other things. So it's not necessarily all on the bottom line.

Are there any other questions? [Operator Instructions]

If not, then I guess we are ready to end the call.

Yes. So if no other questions, we would like to thank you for joining Kalmar's Q4 2025 Pre-Results Call. Our results for Q4 and full year '25 will be published on 13th of February, approximately at 9:00 a.m. Finnish time. For now, we would like to thank you for joining us today, and we wish you a pleasant rest of the day. Thank you. Goodbye.

Thank you. Bye-bye.

Bye.

 Good morning, and welcome to Kalmar's Q3 Results Webcast. My name is Camilla Maikola, and I'm from Kalmar's Investor Relations. Today's results will be presented by our President and CEO, Sami Niiranen; and CFO, Sakari Ahdekivi. The presentation will be followed by a Q&A. Please pay attention to the disclaimer, as we will be making forward-looking statements.

And now over to you, Sami. 

Thank you, Camilla, and good morning, everyone. I'm pleased to be here today to share with you Kalmar's third quarter's performance, which was a solid quarter in many ways. I'll start with highlighting the fact that we delivered a record high comparable operating profit margin of 13.8%, which was driven by services and improved efficiencies.

Despite persistent global market uncertainty in decisiveness and delayed decision-making among some customers, we did ensure a solid performance. The market activity in the quarter was in line with our previous expectations of a slightly softer environment in the second half, especially in the Americas. Orders received declined by 10% to EUR 375 million. Services orders increased by 12%, while equipment orders decreased by 20%, which I will cover more in detail in the next slides. With 1 quarter left in the year, we keep our guidance unchanged, and we expect our comparable operating profit margin to be above 12% in 2025. 

Moving into orders received. Firstly, zooming out a bit from the quarter and the drop in total orders by 10% compared to last year Q3. I would like to point out that year-to-date, we are at EUR 1.3 billion versus EUR 1.2 billion last year in orders received, and that is up with 9%. As mentioned, we have a positive momentum in services. Service orders were strong across the portfolio with an increase of 12%, while equipment orders decreased by 20% from last year.

The decrease in equipment orders was mainly affected by timing of larger orders and delayed decision-making. The underlying demand remained mostly stable. However, it was subdued in Americas. Tariffs are causing further uncertainty and as mentioned, was dampening decision-making, meaning that our customers, especially in the U.S. and Latin America, have remained cautious. The order book remained on a good level. 

Let's now focus on the regional development. The order development was mixed across different geographical regions and segments. In Europe, the order intake has been strong year-to-date, up 11%. The decline in Q3 was explained by timing of larger orders. In Americas, we saw some growth year-on-year despite trade policy-related uncertainty. The growth was primarily driven by the distribution end customer segment and can be explained by a weak comparison period 2024. EMEA's order intake year-to-date has been stable. In regards of our 2 segments, the Services segment's orders have been strong across all the regions, which is key for us, of course. 

Then moving on to our sales performance. Our sales in the third quarter were EUR 436 million. The sales continued to grow by 3% and in constant currencies, 5%, which is the result of strong operational execution. Sales in equipment was flat and increased in services by 8% from last year. Services share of sales continued to grow and was 34% in the third quarter.

Then let me guide you through how our sales has developed in different regions. Geographically, in this quarter, there are differences depending on the region and end customer segments as well. The sales overall in Europe was stable with variations by end customer segment and country. The decrease in sales in Americas continued and is explained by a lower order book in the distribution end customer segment. In EMEA, the sales performance has been strong, especially in the Ports and Terminals end customer segment. 

As you well know, we have a well-diversified business with our 4 strong customer segments. And as already covered, the Services segment share of sales was 34% in Q3, which is providing resilience to our overall revenue. Eco portfolio share of sales is continuing to develop positively and increased to 46%, which is showing the strong interest towards our sustainable solutions. And on the people side, let me highlight our 5,298 passionate employees and teams worldwide. Together, we are dedicated to managing this dynamic environment while diligently executing our strategy. 

Let's now look at the whole year 2025 from a macroeconomic standpoint, which is one of the hot topics at the moment. The current macroeconomic uncertainty driven by geopolitical tensions leads to increased volatility in economic data, making it difficult to provide long-term forecasts. However, as this data shows, based on external indicators, the market in 2025 has been more resilient than previously anticipated. IMF increased its global GDP forecast again in October compared to July 2025. Drewry has again upgraded its container throughput forecast for 2025 to almost 5% and for 2026 to 1.3%. And Oxford Economics has also upgraded the global manufacturing forecast upwards for 2025 and 2026 in June. 

Then building on the previous slide and looking at the development from a fleet activity point of view. Here, we have our fleet activity development of our 14,500 connected equipment around the world. We get a good picture of the activity in the different regions by following this. Overall, we see a positive development trend both year-on-year and quarter-on-quarter, which is indicating increased activity at our customer sites during the third quarter. As we see here, the activity in the U.S. has decreased, which is in line with the softer market we have experienced. However, our global footprint is an important driver, which provides us resilience in turbulent times. Even though the market might be softer in one part of the world, as we see here, the overall development in the fleet activity is positive and provides us opportunities for the future growth. 

Our ECO portfolio continues on a positive development trend. The ECO portfolio share of total sales has remained high and increased to 46%. ECO portfolio share of order intake was also high at 43% in Q3, which is demonstrating our customers' strong interest towards electric and hybrid solutions as well as sustainable service solutions. The fully electric machine share of equipment orders for the last 12 months increased to 11%. We continue to see significant potential with electrification, and our focus has been on innovations enabling this transition. As an example, we have, during the third quarter, launched our next-generation lithium-ion battery technology for our counterbalanced equipment portfolio. 

Continuing on the positive side, we have been pleased to announce some orders booked in the third quarter, including the 3-year Kalmar care maintenance contract for Noatum Ports Malaga terminal in Spain, 5 hybrid straddle carriers, including MyKalmar INSIGHT performance management tool to Rotterdam Shortsea terminals in Netherlands, and 14 hybrid AutoStrad machines to Patrick Terminals in Australia. 

And then to one of my favorite topics, yet another quarter of good momentum and progress in strategic actions. During Q3, as a few examples, we kicked off the 5-year Move2Green program with a successful launch event in our innovation center in Finland. We also commenced with the construction work of our new test center in Ljungby, Sweden. Additionally, we were proud to be awarded with an EcoVadis gold medal, which is placing us in the top 5% of all rated companies in terms of sustainability performance of the company and its supply chains. Additionally, as part of our commitment to sustainability, Bromma has manufactured the world's first crane spreader made from fossil-free steel to be delivered to DP World Sokhna in Egypt this fall. 

And then shortly, a few highlights from our business performance before handing over to Sakari. The performance was solid in the third quarter despite continued market uncertainty. The services margin was strong at 18.5%. The equipment margin was at a solid level; however, affected by the product mix and tariff impacts, which Sakari will come back to. The order book is on a good level in both segments. In other words, I think we are well-positioned to drive growth and deal with the volatile market environment. 

On my last slide here, I would like to remind you about our performance targets 2028, which we are fully committed to.

Now I will hand over to Sakari. Thank you for now.

Thank you, Sami, and good morning to all of you also from my side. I will start off with our traditional slide on our financial profile and where we are, and a couple of highlights from that. Our financial profile has remained strong, which gives us excellent possibilities to target growth and execute the kind of actions that Sami was mentioning that we have been publishing also during this quarter.

If you look at the relationship between the orders and sales, you can see that over the last 12 months, we have booked clearly higher orders than what we have had in terms of sales. So even though we had a slightly weaker quarter in terms of orders in Q3, I think this should be viewed a little bit longer term. That leads us to having an order book at a healthy level of around EUR 1 billion.

Our business performance has been successful, and our comparable operating profit margin for the last 12 months shows a slight uptick to 12.7% now as a result of the strong performance in Q3. Our leverage continues to be low. And maybe a lowlight from the financial profile is that our cash conversion now has dropped to below 100% due to the weaker cash flow in Q3 and is now at 75%, still pretty strong though.

I will then go into the segments a little bit more in detail. So as Sami mentioned, the Equipment segment's orders received decreased by 20% from last year in the quarter. However, when you look at the year-to-date number, it's still showing a healthy growth of 11%. In terms of the order book, that remains on a good level. Sales was flat in the quarter, and profitability was at a very good level at 12.7%. And that was, of course, sales was on a good level, driven by successful project deliveries. We did have a temporary four-week delay in forklift deliveries to the U.S. due to the new tariffs announced in August and also the related documentation requirements, which has some impact on the quarter.

However, Equipment segment's profitability was at a solid level in Q3, 12.7%, supported by our continued solid commercial performance and driving excellence program actions. Although we had some impacts from tariffs and also the product mix impacted the profitability in the quarter to some extent. Through proactive measures, the majority of the tariff impact was mitigated, though with a slight negative impact on the margins in the Equipment segment.

One of the highlights of the quarter definitely is the services performance overall, with an orders growth of 12% in the quarter, 7% year-to-date, which means we're growing faster than the market in services, strengthened order book, which provides resilience and sales up 8% in the quarter and 6% year-to-date. And then also the profitability at 18.5% in the quarter.

The 18.5% profitability was driven by higher sales and strong commercial performance. The U.S. spare parts distribution center relocation, which had some impact to our Q2 profitability in services is very much on track now and is supporting our services growth now and going forward. Our tariff-related mitigation actions taken during the quarter supported the services margin resilience in a good way.

And now let's dive into the topic of tariffs. I think the key message here is that the full impact remains unclear. And of course, we are dependent on the same external information as everyone else, and the trade policy landscape is still fluid. What is clear, though, is that Kalmar has taken actions in regards to the tariffs, mitigating the tariff impacts with price increases, supply chain actions, and other operational excellence initiatives, as well as working on fulfilling the documentation requirements.

As you know, our U.S. factory in Ottawa Kansas, produces terminal tractors mainly to the U.S. market and then also to Mexico and Canada. And from our Poland factory in Stargard, Poland, we sell reach stackers, forklifts, and straddle carriers to the U.S. market. It is worth mentioning that to our knowledge, no player is manufacturing straddle carriers in the U.S., and our factory in Ipoh, Malaysia, produces Bromma spreaders, which are sold globally. And as you can see from this slide, our factory in Shanghai, China sells nothing to the U.S. So that is not impacting. When it comes to the spare parts, components, and steel of Chinese origin, they represent a low double-digit percentage share of Kalmar's total portfolio. I think that's an important thing to note.

Then to our driving excellence program. The execution of our driving excellence initiative is ongoing very well. And as you know, we are planning to reach EUR 50 million of gross efficiency improvements by the end of 2026. During the first three quarters of '25, we have progressed with the implementation, and a run rate of approximately EUR 24 million of annualized gross efficiency improvements have been secured. The majority of the improvements so far originate from commercial excellence actions, primarily around sourcing, but with impacts from operational excellence actions starting to materialize from things like process development.

Then to the balance sheet side. Our return on capital employed in the third quarter was 20.8%, so very stable. And as before, it's worth noticing that the items affecting comparability, which mostly are deriving from the demerger and listing process in the previous year, still have an impact on the Q3 ROCE, and the impact is about 1.7 percentage points. So normalized for that, we would be somewhere around 22.5% in ROCE. Our leverage is at a strong level of only 0.3x, and our gearing is around 13%.

Then a few words about the cash flow, which was a bit of a low light in the quarter. Of course, cash flow always has some quarterly fluctuations, and this time, we hit a number of EUR 26 million. This was impacted by increased working capital. This increase was driven by inventories and largely explained by the tariff-related issues, as well as our deliberate action to improve spare parts availability, so carrying somewhat higher spare parts inventory. In addition, of course, the high level of HD orders that we've been seeing in the previous quarters is, to some extent, also impacting our work in progress. So all-in-all, that then resulted in some buildup of working capital in the quarter. And our cash conversion for the last 12 months was at 75%, as stated previously.

And then as Sami already mentioned, our guidance for 2025 remains unchanged, and we expect our comparable operating profit margin to be above 12%.

All right. That's all from the presentation side, and I welcome my colleagues back to the stage.

So we are now ready for the Q&A. And moderator, can you please open up the line? 

The next question comes from Mikael Doepel from Nordea. 

I have 2, please. I can take them one by one. So firstly, on the service orders. So very strong growth in the quarter, as you mentioned, double digits here. Just wondering if there was anything exceptional there, any larger modernization deals, something else, maybe a weaker comp, and how we should think about this trajectory going forward? Do you have any early indications for Q4, for example, on the connected unit--

Thank you, Mikael. That's a good start. So yes, we are happy and I'm happy with the services performance overall. And we announced one service or maintenance contract during the quarter as well. So okay, that was visible there. But overall, I think it was a strong performance across all the regions in service. And of course, the product mix within the services was quite favorable as well. I mean, good parts and logistics business we had. 

And any indications on the connected unit trends there continuing as you saw in Q3 or something else into Q4? 

You mean connected versus our performance. No, I think overall, what we see with our connectivity and fleet activity, of course, it has been mostly green. It has been quite positive year-to-date and during this year. And of course, apart from the Americas region, which has been slow. But otherwise, of course, that there is a correlation, of course, to the service performance as well. And when the fleet activity is on a good level, of course, that provides us with opportunities to offer and sell our services solutions. 

And then Q4, the quarters, they are not equal to each other, as we normally say in different means. So that applies to services as well. But of course, services, growing services, is one of our strategic pillars, maybe the most important strategic pillar. So definitely, there will be a high focus on growing services going forward as well. That's what I can promise. 

And then secondly, on the U.S. So looking at the orders in the quarter, I mean, they didn't seem to weaken much sequentially in Q3, if I look at Americas, and I'm assuming that's mainly reflecting U.S. Would you regard these levels as some sort of a floor level here? Or should we expect some further weakening? Just wondering what you're seeing in the market right now and discussing with the customers. And just to be clear, I'm talking about the absolute numbers here. And I know I realize that the tough comp in Q4. But any color on that would be great.

And that's a very good question. As well, of course, as we mentioned in the report as well as presentation, there are lots of uncertainties still around in Americas, not only related directly to the U.S., but the surrounding countries as well. But we have had, I think, still not on a very high level, but at least a little bit better level than what we had in 2024, the performance in the U.S. market. And of course, it's a little bit building from the fact that we have a strong presence in the U.S. market. 

We have a factory there. We have a fantastic services business and the dealer network and the supply chain, and so forth. And of course, so it's building from many, many of those cornerstones there. So, how it will evolve going forward, again, visibility is not very far in the U.S. market. So we trust that we have right actions in place. We are managing the situation well with tariffs, with price increases, and so forth. And we are actively, of course, visiting and talking to our customers as well as dealers to find new businesses as well. So the U.S. market, it's very large. So we see opportunities there as well. 

So let's say, the Q3 landed on, let's say, on a quite similar level as Q2, as you rightly said. 

And of course, the comparison quarter from last year is very weak. So, although we show growth compared to that, that's maybe not so relevant. 

And talking to the front lines as late as yesterday. So customers are still making CapEx plans for next year despite the uncertainty. So I think that's one message. 

The next question comes from Panu Laitinmäki from Danske Bank. 

I have a few questions. Firstly, continuing on the market kind of topic, you have this comment that it looks maybe kind of a bit better than expected. Are you referring to Drewry and all these external forecasts? Or is this referring to kind of what you saw in Q3 and onwards, compared to what you said after Q2, kind of speaking about more subdued market? 

Let's say, we can look at it from different angles. Yes, absolutely, based on the external reports and certain KPIs coming from Drewry. Oxford and so forth. Of course, their indications and the KPIs, they have been adjusted slightly upwards compared to the previous reporting in July, Q2 reporting. So that is one building block there, of course. 

And then we can look at the fleet activity, which I mentioned already, which is, I think, on a healthy level and showing green, showing good development there apart from Americas region. I think that is one way to look at it as well. And then the overall, I would say, underlying demand has been mostly stable in Q3. Okay. How will that develop towards Q4? I don't know. Maybe no major changes expected on the underlying demand unless some radical things happen. 

And then I think overall, if you look at the order intake, for instance, okay, we can always look at one quarter at a time. But as we quite often say that quarters are not equal to each other, it's sometimes good to zoom out a little bit and look at the year-to-date order intake, where are we with those numbers, and then divide it by 3. So basically, you get some kind of average per quarter then. 

All right. Then secondly, on Europe more specifically. So you mentioned like timing of larger orders there. What kind of timing are we talking about? So, is this like you have a sales pipeline where you expect larger orders, and they didn't come in Q3? Or is this kind of customers delaying decision-making in large orders once again? So what should we kind of expect going forward? 

It can be both reasons that you mentioned there. But yes, large orders and then the quarter is only for 3 months’ time period basically. So of course, some of the orders might slip to the next quarter and so forth. But of course, in some cases, the decision-making might be a little bit slower due to different reasons as well. So I think it's a combination of these things. And yes, and that was the main reason compared to previous quarter, for instance, that we had a couple of timing effects there. 

I think it also makes reference to the previous strong quarters where we had, of course, larger orders and also more order announcements than we had now in Q3. So I think it also should be thought through that kind of perspective. 

Any indications what is the kind of pipeline for larger orders in Q4 if things go as you kind of hope? 

Let's say we have good activities with our customers overall and on the larger orders as well. And we can look at the external report and those parameters, how container throughput, for instance, that's where we quite often have those a little bit larger orders as well. So, how that is developing now in 2025? We talk about 5% growth again, and last year was really good as well. So I think, yes, we have a healthy pipeline even going forward. 

My final question is on tariffs. So just to kind of make it simple, do you expect Q4 impact from tariffs to be more negative than you had in Q3? Or is it similar, or is it smaller if we are talking about kind of earnings and margins? 

Very, very difficult to say. There are so many moving pieces there, as we can read from the news as well, and it's changing on a daily basis, basically. So too early to predict what will happen in Q4. What we know is, of course, Q3, which you partly explained as well. 

Yes. And of course, it depends on whether things stabilize or whether there's further turbulence because then when there's changes in turbulence, it always take some time to adjust. 

But in a stable environment, of course, over time, that helps.

And as you see from the Q3 also that in services, it's been more straightforward. And then in equipment, there are more moving kind of parts when it comes to understanding the tariff requirements.

I kind of meant that if the environment is stable, are you kind of having any kind of lagging negative cost impacts or anything like that because we have seen a lot of different kind of dynamics from companies during this earnings season, with some getting a bit of a tailwind and some getting kind of headwind. So, just wondering what's your expectation for Q4?

Yes, let's -- reflecting a little bit back to what Camilla just said on the parts and service side in general, the situation is a little bit more dynamic, and we can manage the situation in a better way. So when it comes to equipment, okay, there might be some differences there. Even there, we have been managing the situation very well, but we can see some kind of impact there. So if it's exactly similar type of level of tariffs Q4 versus Q3, so maybe we can expect similar type of behavior.

The next question comes from Andreas Koski from BNP Paribas Exane.

Firstly, can I drill a bit further into the large order situation? So what did your large orders approximately amount to in Q3? And how does that compare to what you consider a normal level or the historical average level? I just try to understand if this quarter is on a normal level and that previous quarters have been inflated, or is this the other way around?

Yes. What we can say on the large orders, let's say, this quarter, Q3 was on a low level, I would say. And you can see it in our publishments or announcements as well. We had one large order that we published now in Q3. And in the previous quarters, even last year, you know some of the quarters, we had much more of those. So this was on the low side, I would say, in Q3.

And do you want to share any thoughts about 2026 already now? Because you referred to, I think, Drewry who expect container throughput to increase by more than 5% this year. And then I think you mentioned around 1%, 1.5% next year. How to translate that into demand for your products? Does that mean that we should expect a substantial slowdown also in the demand for your product in 2026 as the container throughput will decelerate?

Yes. But let's say that, of course, those KPIs, they give an indication, and we need to look at it with a bit of grain of salt as well and through the fingers. That gives some kind of understanding of the underlying demand. And the positive thing here is really that all of those indicators, they are on a positive side. None of these are negative and they have been even adjusted a little bit upwards since 3 months ago, basically. So that's how we look at it. Then we combine it with the fleet activity. How many equipment do we have, 68,000 all over the world, and 14,500 connected, and they are providing very valuable data for us.

Then we also, of course, add on the customer activities, our pipeline discussions for different areas and portfolios. And when we put everything together, then we get some kind of idea of, of course, 2025 as well as maybe towards next year. But I think overall, how you should perceive the next year, I think it's good to look at these graphs here and which provides us with a moderately positive outlook for 2026. That's how we look at it. But on the other hand, these are changing quite rapidly. We were experiencing much lower 2025 forecast in the past during this year, and now they have been adjusted upwards. So they are quite volatile depending on what happens in the macroeconomics and geopolitical situation. So the visibility is not very far. That's also very much true.

And I guess it's fair to say that the only reference that can be made is to these external indicators at this stage for '26. So we'll need to come back to that at a later stage.

And then lastly, on your comparable operating profit, the other line was minus SEK 4 million, which compared to the quarterly average in the first half of around minus SEK 8 million. So, have you been able to lower your overhead cost to the extent that we should expect mid-single digits going forward? Or what is the sort of guidance for the other line or the overhead cost going forward?

I think I'll give guidance. But you're right, it has supported the quarter by a couple of million. And of course, we are constantly working on our cost base as part of our driving excellence, and that's where also some of the process improvements that we are doing are showing are, of course, in the admin line in general, and some of that is in the group cost.

Level should be sort of sustainable?

Yes, I would say that, of course, costs don't jump up and down so much. So I think clearly, it's in the right direction.

The next question comes from Antti Kansanen from SEB.

Just 2 questions from me. I'll start with the Americas orders on the third quarter, up a little bit from last year. Was there a notable impact from pricing, whether it be tariff-related or other price increases, on a year-over-year basis?

Yes. Thanks, Antti. Yes, there was an impact on pricing and especially on the services side in the U.S.

Is there any way to quantify how much that was or anything else?

Well, in general, yes, we have given some indication of the price increases. They are more or less, of course, the target is to match the impacts from any tariff impacts.

Yes. Earlier, we talked about 5% to 10%, now we expanded a little bit towards maybe 5% to 15% on price increases.

And is the 5% to 15% price increases referring to the services side the load, or also on the equipment in U.S.?

Basically, everything, it's a combination of both equipment and services.

And then I wanted to continue. I mean, there's been a little bit of a discussion already on the bigger orders and the pipeline. Maybe a question on kind of seasonality. In some cases, it seems that Q4 tends to be quite a busy month. Some of the clients want to sign the agreements before year-end. And if I remember correctly, Q4 last year was quite active in terms of the bigger deal. I'm just trying to figure out this year, is the Q3 order level now more reflective on what should we expect from last quarter? Or is there some type of a big order pent-up pipeline that could be released before year-end? Is there any - this type of a seasonality in any of your product groups?

Not really seasonality or cyclicality there. And as I said in the previous question that, okay, Q3, that was a little bit on a low level. But we have good customer activity, and we have a good pipeline. Then we will see when some of those orders will land. We don't know exactly, of course, when.

And maybe if you look backwards a lot, then when we had more bigger project-related businesses, then you could see a seasonality towards the end of the Q4 in a much larger extent than now when we are talking about mobile equipment.

Yes, I don't think we regard this as a seasonal business as such.

No. Yes. Yes. Okay. Maybe that was what I was remembering then. So last year, Q4 was quite active. If you're referring this Q3 now being kind of on a low level, maybe Q4 was then the mirror image of that. Am I correct?

Difficult to say, let's say, the underlying market demand has been mostly stable in Q3, similar to Q2. And as I alluded to a little bit, okay, if nothing radical changes, it might be on a similar level for Q4 as well. Then it's a matter of when some of the larger package orders will land.

But it's true to say that, of course, there were quite a few larger orders in that last quarter last year. 

And even though the releases don't give a total picture, so if you flip back and look at the order releases from the different quarters, they give you some kind of an indication. 

[Operator Instructions] The next question comes from Tomas Skogman from DNB Carnegie, Research Division. 

We have discussed a lot about orders geographically, but perhaps you could also open up a bit in different end markets and customer industries. Do you see any big differences? 

Yes. That's a good question, Tom. I would say, as we can see even in the external reports on the container throughput, I think the ports and terminals end customer segment has been performing well throughout the year, and in Q3 in general as well. So that has been on a good level. Then when it comes to heavy logistics, heavy industries, I mean, as well as manufacturing, I think they have been on a rather stable level as well. 

And where we have had, let's say, the slowest performance or the market activity that has been at the distribution end customer segment. And then I mean very much the logistics centers and warehouses that are located in the U.S., for instance. So out of those 4, that has been the slowest so far. 

Then I would like to understand how big share of the market Chinese companies have in your type of products in the U.S. To me, it's very unclear what kind of a market position, for instance, SA and other companies have in the U.S. 

Yes. Very difficult to answer. And normally, we are not commenting the competitor activities either. So, what we can talk about is, of course, our actions and our strategies in the U.S., and we have a full focus there definitely, and we want to gain even more market share going forward. So unfortunately, you have to ask somebody else, Tom. 

But I'm just looking at kind of a potential for you to gain market shares when you have these high tariffs on Chinese companies. I think it's very relevant just to understand how big share they have more or less. 

Yes. I don't know if there are any external reports published openly on the indications on the machine volumes and that sort of thing. So that might be the source of information, of course, for that question. 

Then about electric machines. So, at the Capital Market Day, I think you said that 50% of the market will be electric by 2030. Do you still kind of expect this? And do you expect then that you will also have 50% of machines being electric in 2030? 

Yes. Let's say, overall, of course, electrification is one of the megatrends or market drivers, and it's growing fast. And that's what we see. And you can see it in our numbers as well when we report the Eco portfolio, where there are a couple of electric hybrid machines as well. And then if you look at the electric share, electric machines, there are 11%. So, we are climbing from 9%, 10% a while ago, and now towards 11%. So, it is growing. 

And in different parts of the world in different portfolios, and so forth. And that's what we believe in. And we talked about 28% annual growth, which would result in 40% by 2028. And then, interpolating a little bit longer, of course, we talked about maybe 50% by 2030. 

We believe in electrification, and we have a full focus on that one in different parts of the organization, absolutely. And then the customer interviews and even research that indicates that a vast majority of our customers are planning to invest in low-emission equipment and solutions in the years to come. 

Yes. And we have fresh reports, NPS studies, and so forth from customers. And when we ask about the indication. So, it's really strong when the customers are looking forward on what they will do. So, 2/3 of them will invest in low-emission equipment going forward. 

Can you give out some specs about your new electric machines? How much cheaper are they than the previous generation? What is the price of them more or less compared to fossil alternatives, for instance? 

Yes. Earlier, I think at the Capital Markets Day, we talked about the pricing up to 2x revenue versus the diesel, okay, we are not -- I think we have come down from those levels. So, it's a little bit closer to the diesel. But let's say, we talk about substantial premium still on the electric machines. 

But I think it's important to understand how and what we are selling and offering to our customers is the solutions, basically, not only the piece of equipment where there is a price tag on, but we are offering the combination of the superior electric performance together with the machine itself, including the services, including maybe some other technologies, and so forth. 

So that's what we are offering. And therefore, rather than talking about the machine price itself, exactly, we talk about the TCO and total cost of ownership, where we can see a clear benefit for our customers after 5 years of operations or 7 years of operations already with the lower TCO, for instance. But I think it's frank to say that, yes, the price tag of the new batteries and technologies, they have come down a little bit. 

And that's what we are harvesting as well, when now in Q3, mentioning this next-generation battery, lithium-ion battery solution on our counterbalance, I mean, forklift reach stacker empty container handler products as well. So that is very important part of that development. 

What is the big difference in your third generation of machines compared to the second? What is that? 

I think it's a combination. The whole solution, basically their performance, of course, cost competitiveness, I mean, the cost is one piece out of that as well. So, it has a lower product cost, absolutely. 

And where do you source the batteries going to products aimed for the U.S. market? 

Let's say, we have a couple of suppliers for our electric components, key electric components, it's only batteries, it's several other products as well. And yes, let's say, the major ones are coming from China to the U.S. market as well. But of course, we are working on the dual capabilities constantly and looking at the best possible solutions and options for our equipment going forward. 

And my final question on this. Are you confident that you are as competitive in these machines in the fulfill machines? Given everyone are scared of cheap Chinese products. We have seen what has happened in the car industry. 

Yes. We are confident, as confident as at the Capital Markets Day, which you referred to earlier. So now that we have a strong position. If you look at our portfolio, the width of the portfolio, including electric options, including the eco portfolio options, I think we need to put that one in the picture as well, because we want to make the transition towards electrification as smooth as possible for our end customers. 

And then when we combine it with technology part, the intelligence, the skills that we have in our organization all over the world, and then services, I mean, the aftermarket capabilities as well, which we are constantly developing further. So, I'm confident that we will be competitive going forward. And we are competitive already as of today. 

And then even maybe the fourth layer or dimension is the customer feedback as well. So, when talking to the customers who have been operating our equipment, electric equipment in different parts of the world, not only in one country. So, it's basically everywhere. So very positive feedback as well. 

But of course, it requires a constant development of our offering as well as our supply chain also going forward. 

And it's an evolution, not a revolution because it takes quite a long time for the customers also to transform into fully electric operations. 

The next question comes from Panu Laitinmäki from Danske Bank A/S. 

I would have 2. Firstly, just to clarify on the price hikes and service growth. So, if it was 5% to 15% price hike, does it mean that it kind of explains 2% to 3% of your service growth in Q3? 

Not fully. I mean in the U.S. market, yes. Yes, that's basically where mainly the growth is coming from. But the other regions there, we have organic growth as well. 

Yes. I meant that maybe U.S. is 20%, 30% of your service base for revenue. 

Yes, U.S. is it's an important market for us in service, but so are the other regions as well. So, we have had a very good performance both in South and North Europe as well. 

Okay. Then secondly, just on this efficiency improvement program where you now achieved EUR 24 billion out of EUR 50 million. How should we think about the earnings impact from that if you are now at a certain run rate? Are you kind of getting some earnings uplift afterwards? Or how should we think about '26 margins compared to '25 based on this program? 

Yes. I think you should think about it in a way that we talk about gross efficiency and run rate. So of course, run rate always means that it's where we are traveling at the end of Q3, and some of it translates into P&L positive impact this year, and then you have the full year impact from that in '26. 

And then, of course, our target is to hit the EUR 50 million run rate of gross efficiency improvements by the end of next year. But we have also stressed that it's a gross efficiency improvement. So, some of it is reinvested into R&D and other activities to support our strategy and our growth. So, it's not all then visible directly in the bottom line. 

And then there's a lot of other things happening at the same time, of course, with the tariffs and prices and other things. But some of it is in the P&L in our sourcing savings already in the actuals. 

Okay. Is it possible to kind of quantify it, even in rough terms, how much is gross and how much is net? So, it's like you get half to bottom line or less? Or what should we expect? 

We haven't actually stated that. But if you take our run rate from the different quarters that we've been showing, I think you can somehow model it from that. 

There are no more questions at this time. So, I hand the conference back to the speakers. 

Thank you. Thank you all for joining today, and we will get back again with our Q4 results on 13th of February next year. Thank you. 

Thank you.

Thank you.

Good morning, everyone, and welcome to Kalmar's Q2 results webcast. My name is Camilla Maikola, and I'm from Kalmar's Investor Relations. Today's results will be presented by our President and CEO, Sami Niiranen; and CFO, Sakari Ahdekivi. The presentation will be followed by a Q&A. And please pay attention to the disclaimer as we will be making forward-looking statements.

And now over to you, Sami.

Thank you very much, Camilla, and good morning, everyone. I'm proud to share with you Kalmar's second quarter's performance, showing a continued strong order intake and a steady progress in our key strategic initiatives. We managed to generate stable revenues and a resilient margin by successfully leveraging Kalmar's leading position in the market and driving excellence in our operations.

Our orders received increased by 20% from last year, and overall demand was favorable in Q2. Sales returned to modest growth and increased by 1%. We delivered a resilient profitability of 13.1%, which was supported by the strong equipment profitability. However, there is an increased level of market uncertainties today affected by, for example, new tariff announcements and geopolitical tensions, which is posing a potential risk of slower global growth in the second half of 2025. We keep our guidance unchanged, and we expect our comparable operating profit margin to be above 12% in 2025.

As mentioned, our orders received in the second quarter increased by 20% compared to last year and totaled EUR 450 million, reflecting positive activity and growth in both Equipment and Services. The order book remained on a good level. Despite prevailing uncertainties, the demand picture overall was favorable during the quarter. In ports and terminals, the demand remained strong globally and was reflected in some larger equipment orders such as straddle carriers. Overall, we saw strong growth in Europe and solid performance in AMEA. However, the U.S. distribution and customer segment demand was hampered by increased market uncertainty.

Then moving on to our sales performance. Our sales in the second quarter were EUR 420 million. The sales returned to modest growth and was 1% and in constant currencies 3%. The softness in the Americas was visible in sales, and Europe was clearly the largest region, representing 44% of the sales. The book-to-bill was positive in both Europe and AMEA.

Moving on, this slide provides us an overview of our well-diversified business with 4 strong customer segments. The Services segment share of sales was 34% in Q2, which is providing resilience to our overall revenue. Eco portfolio share of sales remained high at 44%, which is showing the strong interest towards our sustainable solutions.

With an installed base of 68,000 machines globally and a strong presence in over 120 countries for sales and services, our extensive reach remains a significant asset. This robust foundation fuels our active acceleration of future service growth through innovative offerings and digital solutions. As a highlight and, in line with Kalmar's strategy of growing services, we have invested in relocating and outsourcing its genuine parts warehouse from Ottawa, Kansas to Greenwood, Indiana.

In addition to the relocation of the U.S. distribution center, we have decided to relocate our European distribution center to a new facility in Metz, France. Both these relocations will consolidate operations, improve efficiency and support our long-term service growth. And today, we have over 1,400 own service technicians around the globe and 4 factories, which are located in Poland, the U.S., China and Malaysia.

While the Q2 performance was strong, the global landscape continues to be volatile. The world today presents an increased level of uncertainties related to tariffs, ongoing geopolitical tensions and the global growth outlook. It's still difficult to draw definite conclusions on how these factors will affect our industry, the demand environment and global trade. However, we are monitoring the situation closely and have implemented tariff surcharges or tariff-related price adjustments across divisions to a majority of our customers. We are prepared to continue to act swiftly if needed. Due to the uncertainties, the market environment is currently expected to be more subdued in the second half of the year.

So let's then take a closer look at our large base of our 14,500 connected equipment around the world. By following the activity of the connected fleet, we get a good view of the activity and demand in different regions. Overall, we see a positive development trend both year-on-year and quarter-on-quarter, which is indicating increased activity at our customer sites during the second quarter. However, at the same time, we have to remember that there are now more uncertainties in the market, and the softness in the U.S. can also be seen in the connected fleet activity in North America compared to last year Q2.

The eco portfolio share of total sales has remained high and increased to 44%. Eco portfolio share of order intake was also 44% in Q2, which is demonstrating our customers' strong interest towards electrical and hybrid solutions as well as sustainable service solutions. The fully electric machine share of equipment orders for the last 12 months remained flat at 10%. Despite a slightly sluggish development, we continue to see significant potential with electrification.

We have announced 5 orders booked in Q2, including 8 heavy terminal tractors to Cagliari RoRo Terminal in Italy, 2 empty container handlers to Depot Management in Finland, 11 hybrid straddle carriers and MyKalmar INSIGHT to Seayard in France, 14 hybrid straddle carriers to Hanseatic Global Terminals in France and 4 hybrid automated straddle carriers to Victoria Intentional Container Terminal in Australia.

We have been pleased to announce some steps towards sustainable growth during the quarter. We have further expanded our automation offering by continuing to develop new and advanced automation solutions. An example of this is Automation as a Service, a subscription-based model designed to ensure successful and efficient deployment of automation in marine container terminals and intermodal sites.

We also introduced a flexible and scalable Kalmar One Automation System as a stand-alone solution. With this, Kalmar is responding to the increasing demand from customers for a modular OEM and equipment-type agnostic fleet management solution that allows them to choose what to automate in their terminal operations and how to do it.

We have also launched a digital application on the MyKalmar customer platform called Inspector, which helps to streamline daily equipment inspections. The application is compatible with both Kalmar and third-party equipment.

In addition, we were proud to announce that the Science-Based Targets initiative has approved Kalmar's near and long-term science-based emissions reduction targets, verifying our net zero target by 2045. These ambitious targets align with the Paris Agreement, solidifying Kalmar's commitment to limiting global temperature rise to 1.5 degrees.

Our business performance was good in the second quarter. The Equipment margin was strong. The Services margin was burdened by temporary impacts, which Sakari will come back to, and the order book has strengthened in both segments.

On my last slide, I would like to remind you about our performance targets 2028, which we are fully committed to.

So thank you all for now. And next, I will hand over to Sakari.

Thank you, Sami, and good morning also from my side. I will start with our traditional slide on our financial profile. Our financial profile has remained strong, and this gives us excellent possibilities for future growth. The highlight I would like to point out is the last 12 months orders received, which is now at EUR 1.8 billion, and we have a significant positive book-to-bill ratio if you compare that to our sales on the back of the 3 strong order quarters that we have had. So our order book has significantly strengthened from the level that we had 1 year ago.

Our profitability, when looking at it through both gross profit and comparable operating profit margin, is on a good level, 12.7% now on an LTM basis for the comparable operating profit margin. Our balance sheet continues to be strong with a leverage of 0.4x EBITDA, and our return on capital employed is now at 20.7%. Cash conversion, slightly below 100% at 95% now for the LTM period.

Then diving into the segments a little bit more in detail. On the Equipment side, all of our equipment divisions performed well in terms of orders received in the second quarter. Our Equipment segment orders increased by 28% compared to the same quarter last year. The global overall demand environment remained good; however, somewhat subdued in the Americas towards the end of the quarter especially. And as Sami mentioned, the global landscape continues to be volatile, and there is an increased level of uncertainties going forward.

The profitability of the Equipment segment was very strong in Q2 at 13.9%. We have seen continued solid commercial performance with stable gross margins in Equipment, and our Driving Excellence program is supporting the margin development in the Equipment segment, especially.

On the Services side, we saw an orders growth of 7%. So Services continues to be on a good growth track. And this is driven by -- especially by smaller contracts and also our spare parts. There are, of course, some variations across the regions related to the trade tensions, and the U.S. market is a bit softer at the moment, and this is also impacting our Services segment. When we look at the profitability, as Sami mentioned, this was burdened in the quarter by a couple of things to be mentioned here. One was the impact of tariffs. Whereas we did, of course, implement the price increases and adjustments related to the tariffs, there is a time lag in implementing those, and that impacted about half of the second quarter before the price adjustments actually came into force.

The other thing we did in the second quarter is we have relocated and outsourced our warehouse activity of our spare parts in the U.S., and this had some impact on our operations during the second quarter, but these are of temporary nature. I would say that when combining the impacts of these 2 mentioned things to the profitability of Services, we are talking about slightly over 1 percentage point of margin.

The execution of our driving excellence initiative is ongoing, and we are planning to reach EUR 50 million of gross efficiency improvements by the end of 2026. During the first half of '25, we have progressed with the implementation, and a run rate of approximately EUR 60 million has been reached in terms of annualized gross efficiency improvements. To date, the majority of the improvements originate from successful sourcing activities, and in addition to that, certain efficiency activities in process development in our functions.

Our return on capital employed in the second quarter increased to 20.7%. Again, as before, it's worth noticing that the items affecting comparability, especially deriving from the demerger and listing process last year, have an impact on the 12-month rolling ROCE number. This impact is about 2.2 percentage points. So the normalized level would be at around 22%.

Our leverage is at a strong level at only 0.4x EBITDA, and our gearing is approximately 15%. To be noted is that, of course, during the second quarter, we paid out dividends of EUR 64 million, which impacts the net debt position in the second quarter. Our maturity profile, you can see there on the right-hand side of the page, no major maturities in 2025.

Our cash flow was not particularly strong in the second quarter, only EUR 22 million of cash flow from operations before finance items and taxes. We have had a very strong cash flow in the previous 3 quarters. And, of course, there are always some timing impacts from larger orders, the advances received and how the working capital is built up as a result of starting to execute those orders. But over a 12-month period, our cash conversion is still very strong at 95%. So this is more timing related when looking at one single quarter.

And then I will finish off. Sami already mentioned this, but our guidance for 2025 remains unchanged. We expect our comparable operating profit margin to be above 12% in 2025.

Thank you, and that concludes the presentation.

So we are now ready for the Q&A. So, moderator, can you please open the line?

[Operator Instructions] The next question comes from Mikael Doepel from Nordea.

I would like to start with kind of the market outlook, where you said that you expect a subdued -- more subdued market in the second half of the year. So I'm just wondering where that kind of estimate comes from. So if you look at your development within your sales funnel, for example, currently and your customer quotations, have you seen any changes there, most recently that would indicate the weaker demand in orders in the second half? That would be the first question.

Yes. Thank you for the question. And yes, that's what we indicated, more subdued in the second half, and especially, of course, because the tariff landscape, it's not fully clear yet. There are indications in different directions. So uncertainties exists, and that's basically the basis behind having, let's say, a little bit more cloudy view towards the end of the year. And then Americas market, as we could see already in Q2 as well, of course, is one of those more uncertain areas, I would say. And there is a couple of surrounding countries there as well in South America, I think. It's mainly because of that. And then I would say, like we discussed in the previous quarter is, indecisiveness is still existing with our customers.

Okay. But would you say, for example, in the U.S. that the demand, as kind of expected, to become incrementally weaker into Q3? I mean, obviously, the tariff uncertainties have remained more or less throughout the whole of Q2 already.

Yes. Let's say, if you look at the U.S. and especially the distribution segment, which is a big segment, an important segment for us, it started off quite well, I would say, at the beginning of the year. We talked about the gradual improvement, which now slowed down in Q2, we can say that. And that is expected to continue on a quite, I would say, a slow and low level, I would say.

And then, of course, quarters, large orders' quarters, they are not equal to each other as well. So we have been successful now in Q1 and Q2 with materializing a couple of large orders as well. So I think the sentiment, it's a combination of different factors.

Okay. Okay. And then kind of on the same topic then related to your Services business, I'm thinking about the connected fleet activity. Are there any changes there most recently that would signal some weakness ahead? I mean, you had quite strong orders at the end of the day in the quarter, actually. But just wondering if there's any kind of signs that you see there that things could slow down?

No. I think in Q2, as we could see, we had a good fleet activity still. We were uncertain in the beginning of the quarter, as you remember, but then it turned out quite well. But there is this one indication, of course, compared to the last year Q2 in the U.S. that, that was on the red color side over there. But I don't know if you have anything from the last couple of weeks, any indications.

Not from July, but June, there was a little bit of a slowness also, indicating that people are hesitating and the activity level is somewhat lower, which can be seen in the comparison to the previous year's Q2 also. And then, if you look at the Container Throughput Index, there is quite a lot of volatile from Drewry, for example. From month to month, they change the forecast on the container throughput. So that gives us the uncertainty and the potential kind of impact on the slowness in the second half.

And there's also a dependency between the new equipment sales and the spare parts, for example, in the U.S. in distribution, where you sell less equipment. There's also impact on the spare parts. So that would be something that we could see.

Okay. Well, that makes sense. And then just to clarify on the comment on the June weakness in fleet activity. I guess, that was on a year-over-year basis, I would assume. And was this for U.S. only or globally?

That was U.S.

And globally?

Globally, I think it's -- globally, as far as I recall, it's fairly stable. And so it's really the U.S. part.

The next question comes from Antti Kansanen from SEB.

It's Antti from SEB. I wanted to continue with the same theme as before on the demand side. So could you talk a little bit about your outlook on second half in Europe? I mean, for second quarter, you flagged strong growth. And I guess the themes that you have been talking about regarding the more subdued demand seemed to be more impacting the U.S. and Americas broadly. So what's your outlook for European demand coming into second half of this year?

Yes. That's a good question. So, yes, Europe so far in the first part of the year, first half of the year, I think it has been very stable and performing very well. And, of course, some indecisiveness in certain areas, certain customers, maybe in Europe. But, otherwise, overall, both Equipment and Services have been performing well in Europe. But when it comes to the next couple of months or next 2 quarters, of course, this tariff discussion, which is not fully clear yet, between European Union and the U.S., of course, that is impacting with uncertainties as well. So that's what we see.

So the visibility is not that long even in Europe. But of course, we have a full focus on different countries in Europe and focusing on Services, Equipment. And I think there is a lot of business opportunities in Europe. So we have good expectations on keeping Europe on a good level even towards the end of the year.

Okay. That's good to hear. And then maybe digging a little bit deeper into the U.S. side, I mean, did I understand correctly that you kind of saw softening demand in U.S. also within the second quarter? So it kind of not only compared to how you started the year, because start of this year was quite active, if I remember correctly. And I guess the second -- end of second quarter was -- sorry, end of first quarter was already a bit weaker. So I just wanted to understand maybe better, what's your analysis on your clients' behavior? Are there just uncertainty on their own business outlooks? Is it more uncertainty on the pricing environment that the equipment is going to be regarding the tariffs? What do you think will kind of need to happen for your clients to become a little bit more less hesitant to invest and more optimistic on expanding their fleets and replacing equipment?

Yes. It's all that what you mentioned basically. And especially in the distribution segment, the destocking is on a relatively good level, I mean, the inventories at our dealer's side. So that is not the big issue at the moment. It's this uncertainty around the tariffs landscape, price increases, of course, we have implemented some of them as well, and where is the market heading to and what kind of tariff deals and agreements will be established in the next couple of weeks, for instance.

So I think it's that uncertainty that delays the orders. That's what we saw in the distribution segment for our terminal tractors now in Q2. And even, of course, on the service side, we had a bit of a hiccup there when it comes to tariffs. But okay, that was a temporary one in Q2.

And you're quite confident that the softness is not you losing competitiveness or market share, that it's the entire market, and when the demand comes back, you will be kind of there to address it.

Yes. We are ready to act and address it, absolutely. And now lately, as you remember, we have launched our electric terminal tractor called Phoenix as well. So we are ready with that product as well once the market will pick up. And the U.S. market has been slow since 18, 24 months back even. So now it was picking up a little bit in Q1, and now, it's slowed down again in Q2, but we are ready there. And as one example, of course, on the Services side, we are now relocating, outsourcing our warehouse distribution center there. And the whole target is, of course, to grow Services even more. So we want to be ready with both support as well as equipment.

And overall -- yes, I was just going to add that overall, what we really see is the tariff discussion in Americas in the surrounding countries, as Sakari also was mentioning. So there the hesitation and the indecisiveness is kind of waiting to get a decision on the tariffs.

And then there's a dependency on the overall economic activity as well. So how the U.S. economy develops will also drive the freight activity, and therefore, also the demand for the product.

Okay. Then the last question is then on profitability. And I mean, looking at the Equipment business, at least, in my opinion, very strong margins that you have been now generating. Would it be fair to say that when you're moving towards the 50% target that it's more about kind of getting the margins clearly on a higher level on the Services side rather than having, let's say, a major improvement potential on the equipment from the current close to 14% that you are running in Q2? Any comments on that one?

Yes. That's a fair statement. Absolutely. There is more room for improvement on the Services side. We are happy with the equipment margin, absolutely, which is a result of higher volumes and Driving Excellence initiative, good cost control and so forth. But definitely, we want to improve our services much more.

I think we've been consistently saying that that's where the potential is. And, of course, now the second quarter, as I mentioned, was a little bit exceptionally low due to the reasons that I explained.

Yes, that's clear. But then also, if we reflect the gross efficiency program that you are flagging on the presentation, would it then be also fair to assume that the remaining benefits are mostly visible on the Services segment from here onwards on margins there?

I wouldn't say that. I think the program is, of course, targeted to benefit both Equipment and Services.

The next question comes from Panu Laitinmäki from Danske Bank.

I have three. Firstly, continuing on the Services margin, so would you say that the issues that you mentioned were Q2 specific? Or will you we see any impact from those in Q3? I think you mentioned warehouse changed in Europe as well.

Yes. They are Q2 specific in terms that the tariffs that came into force, we reacted with price adjustments, but there is a grace period before those come into force. So, therefore, with that delay, there was a kind of a half a quarter impact from that. So that's temporary in that way. Of course, if there are changes in tariffs again, that might happen again in the same way. But at the current tariff levels, it's a temporary impact.

The other part was then related to this warehouse move. So we both outsourced and relocated the warehouse. And there were some operational impacts from that and that then is also a temporary impact.

Yes. And the difference with the European move, it's not an outsourcing, it's only a relocation. But in U.S., it was both outsourcing and relocation.

So to answer your question in a simple way, yes, Q2 specific.

Okay. Then on the Equipment margin, so going to second half, do you expect any exceptionals there? So it's more like this was a run rate that you can generate, and then, it's about volumes and your operational excellence. Or should we impact any kind of lagging impact from tariffs that we didn't see in Q2 yet?

Yes. Depending on the magnitude of the tariffs, of course, and we don't know everything yet. And now we have been living with this 10% tariff landscape in the U.S., which is a little bit mixed picture. And somewhere, we have been succeeding to penetrate still, but with some customers, there has been more hesitation. But when it comes to Equipment margin, I think the quarters are not equal to each other.

So it very much depends on the mix, the different type of equipment within the quarter. So -- but -- and then last year, if I remember now right, our Equipment margin was close to -- was it 12.9% or something, for the full year, and now, it was substantially higher than that one. So overall, I would say if our Equipment margin is 12%, 13% or something like that, I'm pretty happy with that. So more room for improvement on the Services side.

Okay. My final question is on the delivery times, and how soon will the orders that you have been taking in the past quarters turn into revenues? So could you talk about that? I guess, there is a bit of difference in straddle carriers and the smaller equipment.

Yes. I think we still talk about 3 to 12 months lead times. And the mentioned straddle carriers, they are on this longer edge or end there, closer to 12 months, I would say, yes, because the demand has been good and we have been winning nice businesses there. Whereas the terminal tractors, for instance, if the market at some point picks up, of course, we have much shorter lead times. So the smaller the equipment, the faster the lead times are basically. But 3 to 12 months, I think that gives an indication.

And, of course, the larger orders that we've seen quite a few of now in the last 3 quarters, they are longer delivery time, so closer to the 12 months.

So if I ask you that -- so that the strong first half orders will mostly impact next year and not second half revenues.

Yes, depending on the equipment, type of equipment, I would say. But the big, large orders for straddle carriers, some of them if they came in, in Q2, for instance, they might be invoiced next year.

But of course, we had strong orders in Q4 last year as well. And those, of course, would be then mostly 2025 deliveries.

The next question comes from Tom Skogman from Carnegie.

This is Tom Skogman from DNB Carnegie. I just wonder about this kind of surcharges you have for tariffs in products sold in the U.S. Is the feeling really that customer accept this? Or have you been forced to kind of have open risks in part of the deal if tariff percentage would surprise? And the background here is, of course, that you face local competition, so customers can avoid these potential tariff surcharges if they go for US-made product instead.

Yes. Good question, Tom. So yes, I think it has been accepted, but the picture is a little bit mixed, of course, depending on the customer, depending on the dealer, of course. In the U.S., we have a lot of dealers there. And then, of course, we have been implementing price increases or price adjustments as well. So the same thing there, of course. It requires discussions, explanations, close collaboration with both dealers and customers. So I think, overall, what we have seen, they have been quite well accepted, I would say. And then, of course, depending on the tariff levels in the future, we would like to act accordingly.

And then, of course, we have even the third option is the delivery terms. In some package deals, for instance, we might have the delivery terms where the tariffs belong to the customer straight away according to those terms. So there are different variations in these price adjustments, I would say.

So to understand this a bit better, is it so that the customer can now choose between, let's say, a 10% price hike in the U.S. or, alternatively, to include a clause where the price could go up even more if the tariffs are even higher? Or how can you -- I think it's just important to understand this so we don't have like bad earnings in Q3 or Q4, just surprising tariff percentages.

No, it depends on the equipment, it depends on the type of business that we have. Certain divisions, I mean, Kalmar divisions that we have, counterbalanced horizontal terminal tractors, they act in a little bit different way. So, therefore, as in the presentation, we said we have implemented both surcharges as well as price adjustments. But when it comes to surcharges, of course, if the tariffs were removed completely, of course, then we will act in another direction.

And then on the spare parts side...

But you don't feel that you have open risks for Q3, for instance, now that you have promised to sell at the price and then you just bet that the tariff is a certain percentage?

No. No, we don't see any immediate risk with this one.

And I was going to say that on the spare parts side, it's been pretty straightforward with the price increases. So there, it's been quite successful.

Okay. And my second question is the share of electric equipment that you are selling. How is that developing? And how is your electric portfolio now price compared to SANY's products? Is there a major difference between your pricing and SANY's?

Yes. Yes, first of all, of course, we are not talking about the specific competitors. We can talk about competition as such. And there is a lot of interest for electric products, as I mentioned in the presentation as well, and for our -- also for our eco portfolio, which is a combination of different solutions. So the interest is there. We have been performing well. And especially, we have been performing well, I would say, in Europe.

But it's frank and honest to say that, of course, the AMEA market is quite price competitive market. So there, we need to do more. And of course, as one example that we reported in today's presentation as well, we are and have introduced the second-generation batteries, which are more cost-competitive batteries on our equipment. So we are taking actions as we speak, but the market is attractive, and it's developing in the right direction.

Then on the terminal tractor side, of course, quite recently, a couple of months ago, we released our electric terminal tractor. And we have high hopes and expectations, of course, to sell that in the U.S. market and later on elsewhere as well.

So can you confirm that you have similar market shares in fossil and battery-powered vehicles in Europe?

Yes. I think if you zoom into Europe, I don't have that analysis in front of me exactly here, but we have been successful in Europe overall, I would say, from the Equipment to Services, including eco, including electric machines and the diesel equipment as well.

[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 all for the questions. And lastly, as a reminder, we will be hosting a set visit at our Stargard factory in Poland on 17th of September. So if you're interested and like to attend, then please register via our web page.

And thank you all for joining today. We will get back on 31st October when we publish our Q3 results.

Thank you.

Thank you.

Thank you.