Nederman Holding Aktie

Welcome to the Nederman Holding Q3 2026 Report Presentation. [Operator Instructions] Now I will hand the conference over to speakers, CEO, Sven Kristensson; and CFO, Matthew Cusick.

Good morning, everyone, and thank you for joining us today. We are here to present the Q3 report. And hopefully, we can give you some meat to the bone of that report. The positive order momentum we saw in the second quarter continued and was even strengthened during Q3.

Order intake increased by roughly 12%, currency neutral, supported by strong inflow of small and medium-sized orders as well as a few larger strategic projects across all 4 divisions. This development is particularly encouraging as it reflects the work we do to broaden our position in new industry and potential new growth segments.

Process Technology had a particularly strong quarter with order intake up almost 32% currency neutral. It's a big bounce back from a period with low order intake. Duct & Filter Technology also continued its positive development with higher order intake, sales and profitability.

In Extraction & Filtration Technology, order intake increased, supported by a stronger base business and also several larger orders. We're also seeing results from the investment we have made to strengthen our operational platform. We have invested significantly in manufacturing logistics in recent years, and we have a strong platform for improved margin as volume increase.

The ongoing expansion and modernization of our facility in Charlotte further strengthened our position in the North American market. Sales and profitability remained below last year, reflecting the weaker order intake at the very beginning of the year, but both improved compared with previous quarter. At the same time, cash flow was strong.

During the quarter, we saw clear results from our continued efforts to expand into new industries and markets. That comes from defense, pharmaceuticals in Europe to metal recycling in the U.S. and semiconductors in Asia. Strategic orders showing how we use proven and acquired competence and technologies to enter new markets and creating growth opportunities.

Overall, Q3 strengthens my confidence in the right direction of the company. With the order growth seen in recent quarters, a solid order backlog and a pipeline that continues to look promising, we see good prospect for volumes and consequently, profitability to increase as the year draws to a close. With that, I hand over to Matthew.

Thank you, Sven. And if we go through now a few of the key financials. Orders received, as Sven mentioned, a strong orders received quarter in quarter 3, 11.8% up organically, currency neutral versus the same quarter last year. Those of you that can see the slides that are being presented, there's a chart in the middle of this current slide where you can see definitely the upwards trend is there.

Nice organic growth, SEK 147 million in organic growth in this quarter alone. Year-to-date now, currency-neutral positive 3.4% is also pleasing. And there definitely seems to be a momentum on the market after this very slow January and February we saw at the start of the year, we've had 7 basically very good months of order intake now.

Highest quarterly sales so far this year as well in Q3, 1.7% currency neutral behind the same quarter last year. And again, as I mentioned, that's a result of the order intake, largely a result of the order intake being slow in the first quarter of the year, but definitely an upward tick. You can see on the -- again, the chart in the middle, it's heading in the right direction.

And given the order intake that we had in this current quarter 3, we're rather confident that, that will continue the upwards trend in the fourth quarter as well. Moving on to profitability. It's the most profitable quarter of the year so far. It's still behind -- we're still at SEK 131 million EBITA is behind a very strong Q3 last year of SEK 166 million, and not yet where we want to be. It's 9.2%.

Operating profit is SEK 104 million and earnings per share, SEK 1.68 in the quarter, not where we want to be. But again, expectation for the fourth quarter is for the sales and therefore, profitability will clearly increase again.

And with the -- the order momentum that we have right now, we are reasonably confident going into next year that we're not -- although it's -- that is less clear how the forecasting there is less clear. Cash flow and net debt, extremely good cash flow from operations in this quarter 3.

We have a tendency in the Nederman Group. It's just with the nature of our business that the cash flow picks up throughout the year, but -- and it's very pleasing to see that the cash flow from operations has gone up.

At the same time, we don't see that quite so much on this slide, but the level of investments that we've seen in the last 2 years, 2.5 years in fixed assets has reduced somewhat. We're still finishing off some investments in the Charlotte premises and the facility there.

But there will be -- it will be not at the same levels as we've seen in the last couple of years that we have fixed asset investments. That will generate cash and reduce the net debt. We see the net debt has ticked down a little bit in the third quarter already here, which is clearly positive.

But further cash generation should be -- or is a clear target of ours. And with the volume growth that we anticipate, that will clearly happen. We can go through the 4 divisions now, Sven, and starting with Extraction & Filtration Technology.

Yes. If we're starting with the largest division, Extraction & Filtration Technology, we start to dive into the third quarter. Actually, the orders increased, and there was a stronger base business in both EMEA and APAC. And we had some larger orders coming back into the Americas region.

We actually had the highest sales quarter for the year to date, but it's still behind Q3. And that comes from the low, I would say, extremely low order intake in January, February, and that has impacted sales. Service and product sales are growing and especially our focus on service business and building the continuous relation is pleasing to see that, that continued to work well.

In EMEA, the underlying base business has been positive, and we have seen some increase in the sales. If we go overseas to Americas and APAC, we can see that the Americas order increased, while APAC orders rose sharply, and that was especially Australia and China. China is fairly small for us in the division, but we got some orders here.

If we continue to what are the key activities. One, of course, is the integration of Fume & Dust Control in Australia that will strengthen the position in certain growth industries. And we are also going to move the Brisbane office to one consolidated office preferably without the snake farm in the garden.

New technologies were shown at the International Woodworking Fair in Atlanta, and we have here had focus on smart airflow control, energy efficiency and dust management, and it was well received, and we booked more than 25 orders in the fair, which was also encouraging. Some more positive momentum in U.S.

Expansion and modernization of the manufacturing facility, Charlotte, is ongoing, and it's nearing completion. That will mean that we will continue in-sourcing more, and we will have a much more stable supply chain here, especially for our -- in this first period for our business in RoboVent, Detroit, but also in -- continue with our woodworking business.

Briefly on financials then on Extraction & Filtration Technology. As Sven mentioned, very good order intake, 4.5% up versus the same quarter last year. Sales, 2.8% down, currency neutral versus the same quarter last year, which results in an EBITA margin of 11.3%.

We expect the fourth quarter to be significantly stronger for this division given the order momentum that they have right now. Moving on then, Sven, to Process Technology.

Yes. For Process Development (sic) [ Technology ] , we have, as mentioned before, the highest order intake quarter this year, and it's actually 32% increase versus last year. And it was supported, especially with one big order, but also a number of midsized good orders. The aftermarket business continued its positive trend.

We continue to grow massively. We are building our capabilities, and we are also supporting with newly developed product, e-chain product that can increase the efficiency in existing installation, well received by the market.

Strong order intake in Americas and in India. India performed very well as growth of both fiber and textile and foundry and smelters -- and here, we have introduced and taking, if I may say, German technology to India manufacturing locally and handled by our very strong management team from Luwa supporting. We're also supporting them as sort of country lead here.

The profitability, unfortunately, dampened versus Q3 2025 due to sales mix and lower sales volume, mainly the latter. Order backlog continued to grow, providing a solid base for future sales growth and that we are very happy for. The key activities is a continued focus to grow the service business, including the digital portfolio.

Ongoing improvements to product lines and upgrade to test centers. We are continuing to use our data we have collected. We're using our innovation center testing different dust material, et cetera. And we are using that knowledge to improve our product range.

Financials for Process Technology then orders received very strong, 32% up, SEK 45 million higher than the sales figure, which is sales of 5.6% down currency neutral versus last year. But of course, the division has then built SEK 45 million in backlog, which we can see on the chart on this slide, which bodes well looking forward as well.

Sven mentioned mix briefly a little bit more on that and why the profitability is down. There is, of course, lower sales that doesn't help. When it comes to mix, we've got a positive mix effect here through more service business, but we have a negative mix effect in terms of the solutions that have been sold with more fiber and textile proportionally than the foundry and smelters business inside Europe.

Foundry and smelters in Europe has traditionally been one of the more profitable parts of this business. We see good potential for growing that in -- particularly in the U.S. in the coming months. But -- and we've seen orders received already to support that. But quarter 3, 7.4% adjusted EBITA is where we were. On to Duct & Filter Technology, Sven.

Yes. For Duct & Filter, we can say that orders received increased driven by Nordfab U.S. and also the a bit smaller Nordfab EMEA. Very good base business development, and it was then boosted with topping up the icing on the cake was a number of reasonably large order here.

Sales volume increased and profitability improved, supported by the recent efficiency investments in manufacturing and logistics, and that goes for both our North America and European business. U.S. and EMEA improved both order sales and profitability.

Menardi, some decline in order intake in the U.S., while Menardi EMEA grew. Overall, profitability increased. Key activities for this division is the development that is ongoing of a new generation of Nordfab's QTO. It's only engineers that can have such fabulous name on a tool that is crucial to make it easy to do business with Nederman and Nordfab.

Upcoming introduction of AGVs at the new XD ducting facility in Thomasville, that will be a move towards a fully automated warehouse that will be finalized by the end of Q2 next year. The AGVs are orders, the layout are there, and that will make also the XD, which means large dimension manufacturing highly efficient.

We had -- we mentioned for some in Brisbane, we had poisonous snakes in the office and in Bangkok, we had flooding. So there's good excuses for a lot of things. But we were lucky even if there were a few days when we had no personnel in the factory due to impossibilities to get that, we had no damages.

Financials for Duct & Filter are very strong, as everyone has understood, 8.1% organic growth. Sales at SEK 219 million in the quarter, which is 7.6% up versus Q3 last year, giving an adjusted EBITA of SEK 43.6 million, 19.9% is very strong, and this division now up at 19.3% for the year-to-date. Like you mentioned, Sven, these investments in the manufacturing and logistics facilities among other reasons why we are so strong here. Monitoring & Control Technology.

Yes. During the quarter, orders increased with Americas the strongest region and positive performance across all business units. The highest sales quarter so far this year and the order intake also grew versus last year's Q3.

Auburn and Gasmet was positive, while NEO declined slightly due to lower order backlog in EMEA. We had the highest quarterly EBITA so far this year, and we continue to have good order intake in Americas. APAC secured the first direct semiconductor industry order, and that was very encouraging.

We have spent a lot of resources, manpower money to build up a service organization, finalize the test units, both in Korea, Singapore and in China, and we have now finally seen the first result. The first commercial order actually in Korea, but we also followed up this quarter, beginning of this quarter with the second one going into China to the same customer.

So we are pleased to be able to announce that. When it comes to EMEA, orders received was lower than Q3 2025. There were some larger orders that was not repeated this year. If we go to key activities, we had a breakthrough order as mentioned in the semiconductor industry.

We had a very strong start of the GT7000 Tellus with several orders received following the launch in late Q2. So again, new products that has been on the market that has been well received. Service business has been strengthened with targeted activities aiming to the installed base, the already existing installed base.

We are using our measurement and also adding the Olicem systems here. We continue to invest in digital solutions, product development and upgraded service workshop, as mentioned, in Singapore, it's actually also in Seoul and we updated the one in Houston as well.

Financials and Monitoring & Control Technology order intake increased approximately SEK 5 million. currency neutral, that's exactly flat versus Q3 last year. Sales, as we mentioned, sales and profitability, the highest quarter so far this year, 1.6% higher sales than 12 months ago.

And the adjusted EBITA was SEK 26 million, which is a 14% EBITA margin. It must be pointed out that this division is weighed a little bit down in the quarter with some costs of establishment in the APAC region, particularly in setting up the Korean and Singaporean offices further.

So 14% is definitely heading in the right direction, but we expect further improvements there, particularly with the order intake momentum that they've had in the past 7 months or so. Very briefly, financial calendar. This information is available in the report, but the year-end report will be released on the 12th of February, where you'll get a chance to speak to us there.

Interim report for Q1 is on the 23rd of April, and the AGM is on the 27th of April following that. Interim reports 2 and 3, I'll let you put those dates in the diary yourselves. And with that, Sven, I think we can open up for any questions that listeners may have for us.

Absolutely.

[Operator Instructions] The next question comes from August Flyning from Handelsbanken.

Two questions from my side, please. Starting with orders, we're now seeing 2 consecutive quarters of improving order momentum with organic growth here reaching almost 12% in Q3. Can you talk a little bit about the underlying activity you're seeing and whether you see enough in the pipeline to sustain this momentum going into 2027?

Well, if I understand right, we've seen that we have and we have had for some time, a very strong pipeline, a long pipeline where we get increased interest from our newly launched system products, et cetera.

And we hope that this momentum will continue in. We see a number of assets still a strong pipeline. We have an increased activity among customers and potential customers. But it's very difficult to say because every morning, there is on not Twitter, but something else, some new fools going on that can have a short-term impact.

But we look long term, we see -- we are taking market share. We see that with all of our, call it, digitalization, not only offering, but also the way we are using our digitalization to make it easier to do business with us is having a growing interest.

We also see that our capability around the EPCs, mainly the engineering companies with different tools, including what it called now, yes, the different makes Nederman a more interesting partner going forward. So I will not promise, but I sincerely hope and think that there will be a momentum also after this quarter.

What the numbers guy here could also add is if you compare -- if you -- August, if you're looking compared to 12 months ago and how we were feeling in terms of market momentum, it is definitely stronger now than then. You've understood we're very -- we're rather confident about quarter 4, but there is definitely more market momentum. But whether that continues or not, we'll see. But we're more confident than 12 months ago.

All right. Perfect. And on to service and aftermarket then, which continues to grow quite nicely here in the quarter, now accounting for around 23% of group sales in Q3. I know you mentioned it a little bit before, Matthew, but how should we think about this number going forward?

And what are the key initiatives you're taking to drive that growth further? I mean you mentioned building relationships, et cetera, but is there any other things to point to because the trend is, yes, clearly heading towards a positive direction here.

If I answer the numbers and then Sven can give the more meat on the bones in terms of activities, the 23% is good. And of course, we want to grow over a sustained period of time, we want to grow the aftermarket faster than the solutions business.

But this 23%, that if we're a little bit self-critical is because our solutions sales are not at the level we would like them to be right now. But we expect and we think that we will be able to grow this over time faster than the rest of the business. It is clearly the most profitable part of the business. And then there are activities that's going on to back that up and make it happen, Sven?

Yes. And we do not measure the percentage units is not so interesting. We measure how much in dollars, euros and kronas that we are growing for each business because it can be skewed, as mentioned by Matthew, by low order intake in solutions sales and of course, the percentage of aftermarket is higher.

But we are continuing to work on kind of retrofit kits, and that has been one of the suggested offerings that has been giving us growth. We are working with different -- both products and systems to lower energy use. It's like Nederman SAVE, the monitoring capabilities here. That gives us a good confidence that we will continue.

And we are also adding manpower resources. And one of the key elements being able to sell into the semiconductor industry as well as to the oil and gas and petrochemical industry in U.S. has been that we have invested heavily in manpower on-site with capabilities to do it. So -- and we continue to do that. So I'm confident that, that portion will continue to grow.

The next question comes from Anna Lagerlöf from DNB Carnegie.

So my first question is on the product mix effect in Monitoring & Control Technology. Could you tell us a bit on how it looks in sales and particularly in orders? Because even if the margins are down year-over-year, it's quite a solid sequential step-up in profitability in Q3.

Inside Monitoring & Control Technology, you were referring to there, Anna, is that right?

Yes, Monitoring & Control Technology, exactly.

Yes. What can we say about the mix there? That division has significantly more margin to deliver. We have had even they're at nearly 15% for this quarter. That is with less sales in the most -- in the traditionally most profitable part of the business, which is in EMEA.

So therefore, we are rather confident that with modest volume growth, we will get an even bigger and even better margin. At the same time, they have grown their service business, which, again, is the most profitable part of that business.

And also, as Sven just mentioned in replying to August question, this service business not only gives you good margins, but it gives you repeat orders and guarantees orders of the solutions or sales of instruments in the case of Monitoring & Control technology.

But that is one, if we can say very profitable, low cost to sell is the portable units coming from Gasmet. They have continuously been hurt of the cut in spending in official or public spending, especially in U.S. where customs, et cetera, and school university has reduced their spending significantly here, and that has been a continuous story during the year. So that is part of that.

And then we have had an initial higher cost when it comes to get into the Asian market. As mentioned before, we have spent time, effort to get introduced into this market. Therefore, it's so encouraged that we got the first 2 sort of lighthouse orders that we are working with the leaders in this field. So I'm positive that we will see a return here. But again, the market is volatile, political decisions impact more than it used to be doing a few years ago. Was that a fair enough answer?

Yes. So if I understand you correctly, the portable units in Gasmet that remains a challenge, but you've seen some other positive benefits that are starting to have a positive impact on product mix.

Exactly. We have not seen a full return on the portables. We have some new potential routes for selling portables. For example, the military use is one that we think we will be able to drive up sales of portables further, but that has not materialized significantly yet and has not affected margins positively yet.

Okay.

The purchasing time is very long, but we see significant interest. We have the capabilities.

Perfect.

We also see possibility on mercury measurement with new regulation, giving us as being one of few, if not the only one that can fulfill the technological requirement.

Okay. Perfect. And on the semiconductor-related orders in Asia, how much is that showing already in this quarter? And what are you expecting going forward?

Very little in this quarter, one order.

Yes. There's one order in this quarter, no impact on sales yet. I let Sven answer how much can we expect?

If we are successful, we can expect tens of millions in Norwegian kroner per annum if that is because there is -- we are technologically superior, and we've got the first, as I say, 2 lighthouse orders, and we've been accepted by the leader in -- and we are now exchanging Japanese older equipment. So yes, it can be very positive. But again, we should not say that everything is -- deals are done. But we see -- we already get the second one. So yes, I'm very positive.

Okay. Perfect. And then on the order situation in Process Technology, how should we think about timing of deliveries here? Because it sounds like some larger orders are back. So how should we think about deliveries into Q4 and instead of having delivery time into 2027?

The Q4 -- the backlog, as you saw, is obviously better than it was 12 months ago. So their Q4 ought to be stronger than Q4 last year. But the orders when we're booking order, the big one -- the biggest individual one came in, in the middle of the summer, which means the majority of the revenue for that will not be recognized in the fourth quarter. And there will be some, but it will go into -- it will stretch into next year now.

6 to 9 months normally.

Yes, exactly. That's the average time you need to sort of look at -- an average for that division is 6 to 9 months from the -- for the backlog delivery. So you can look a little bit further back in time on order intake in that division if you're trying to forecast sales than you can for Monitoring & Control and E&FT and definitely for Duct & Filter, which is just -- as you know, that's a very quick turnaround there.

Perfect. So just a final one for me because you did mention a bit on Chinese competition in the report. Could you maybe elaborate a bit on seeing here and in what way and in which areas that has been a challenge?

Not really outside China. But in China, where we are not having the strength of a very strong organization, we have -- it varies from division to division. We do have a very strong position in high, high-end supply within MCT, where we are so technologically superior that there's no alternative basically for certain application.

Here, we still have a good growth momentum. If we look to the other divisions, we have a strong position as #2 when it comes to fiber and textile in Process Technology. We are by far #1 in India. We're a good #2 in China. And here, we also try to build a position with some other and increase the made content into the Chinese operation.

When it comes to EFT, in certain high-tech application, we -- for Western European companies, we do have a competitive edge because we are capable of delivering good effect. But the interest in this more workspace improvement products are not at the same level as they are in Europe and U.S.

For other applications, we are capable in a number of niches, but we do not have the strongest organization in China. We are contemplating our way strategically forward in that region. We are definitely looking at further growing our position in neighboring countries like in Australia, et cetera.

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

Okay. Then we try to wrap up this. And to conclude, I would say we are quite encouraged by the continued strong order activity during the quarter. Positive momentum we had in Q2 strengthened even further, and we saw a fairly strong demand across our divisions.

Our strategic direction remains very clear. We continue to elevate Nederman by strengthening our positions in our traditional markets, while quite successfully expand into structural growth industries like defense, semiconductors and some others, food among that.

At the same time, our growing service business and digital offering provide resilience, long-term customer value and recurring revenues. With the order growth from recent quarters and a very solid order book, a strong pipeline and the long-term need for cleaner, safer and more efficient industrial production, we do see good prospect for volumes and consequently, profitability to increase as the year draws to a close. And by that, I do thank you for taking the time, and I do thank you for your continued interest in Clean Air and in Nederman as a company. Thank you.

Welcome to the Nederman Holding Q2 2026 Report Presentation. [Operator Instructions] Now I will hand the conference over to speakers, CEO, Sven Kristensson, and CFO, Matthew Cusick. Please go ahead.

Good morning, everyone, and thank you for joining us today, taking the time not sitting in the fabulous sunshine in this -- at least in this part of Sweden. The second quarter was encouraging for Nederman and our owners. We saw a clear increase in customer activity and a strong order intake across all 4 divisions. This confirms the positive trend we saw at the end of the first quarter.

You remember the first part of the first quarter wasn't that great. Market uncertainty persists, but we continue to see customers investing in areas that are important for their operations. It's also encouraging that the investments we have made in innovation, operations over the -- and operations over the recent years are creating results. This is strengthening our competitiveness, and it's also helping us gain market share in traditional and new industries.

During Q2, orders received increased in all 4 divisions. Extraction & Filtration Technology, which is the biggest division, had record order intake. Monitoring & Control Technology and Duct & Filter Technology had the highest quarterly order intake since Q1 last year. We also see continued growth in our service business. That's a focus area, and it's very important for recurring revenue and long-term value creation. We continue to advance our innovation agenda through new product development and releases that address our customers' need for cleaner production, improved productivity and safer work environment.

At our Helsingborg Innovation Center, we are building unique dust analysis capabilities, which will improve both our products and our customer safety. This initiative is generating interest in the market and has also been highlighted on Swedish National Television and Radio. As part of our agenda for market leadership and focus on Australia, we acquired the business of our distributor, Fume & Dust Control. We now have a clear presence in Queensland, and this acquisition confirms our ambition to grow in a market with significant future potential.

Profitability in Q2 was affected negatively by the lower order intake at the start of the year, as mentioned before, but our operational focus remains strong. We have continued to improve efficiency throughout the organization and maintained a high level of cash generation. Overall, the quarter reinforces our confidence in the direction of the company. We are well positioned to elevate our market-leading position and continue creating value for the shareholders. With that, I hand over to Matthew, who will take you through the financial performance in more detail.

Okay. Thank you. So moving on to the key financials and starting with orders received. Orders received, as we mentioned, picked up at the end of Q1, and this has continued throughout the second quarter. Strong inflow of orders across all divisions, particularly small and midsized orders, no huge mega orders in Process Technology division, but growth in all 4 divisions, nonetheless.

Total order intake for the quarter was SEK 1.48 billion versus up from SEK 1.425 billion last year. That's currency-neutral and organic growth of 6.3%. What more can we say there? The currency effects are becoming less now. We've seen at least at the moment, a relative stabilization of the U.S. dollar and the euro against the Swedish krona. I did say relative there.

Orders received, if you see on the presentation, the chart in the middle, you can see that this is the second best order intake quarter since Q1 of 2024, and that's at prevailing rates. I was playing around a little yesterday with looking at currency neutral, and this is the best quarter of order intake since this chart started back earlier in 2023. So very pleasing with that order intake level.

If we move on to the next slide and look at sales, of course, we have the weaker order intake, particularly in January and February, and this has affected sales in this quarter. We're lacking some volume. And sales were 3.7% down currency neutral. It's SEK 77 million lower than the same quarter last year. So that does impact a bit on profitability. So on the profitability side, we ended up with an adjusted EBITA of SEK 114 million, which is 8.3%. Earnings per share for the quarter, SEK 1.54 versus SEK 1.97 last year.

More positively, it was cash flow. We had a good operating cash flow in the quarter, SEK 69 million positive in Q2 versus SEK 59 million in the same quarter last year. We see on the net debt that we have an increase Q2 versus Q1. That's typical in Nederman when we pay our dividend during the second quarter, it was paid right at the end of April this time. So that was SEK 140 million alone, and that does make some difference on the net debt. We expect this positive cash flow to continue into Q3 and Q4 now.

A little bit on the divisions then. I'll keep this a bit more brief than we have traditionally shown so we can -- Sven has already told us a lot about the key activities. But if we take Extraction & Filtration Technology first, the largest division, record order intake, as Sven already mentioned, the highest quarterly order intake ever. Profitability, on the other hand, was lower, lower sales volumes related to the order intake. That has the knock-on effect that capacity utilization in our factories is down.

We have got very efficient factories, and that's something that we ought to see an increase in utilization going forward given the excess of orders over sales that we saw in this quarter. Basically, we've grown backlog in all 3 regions, which is pleasing as well. Orders received SEK 716 million is over SEK 100 million more than the sales of SEK 611 million. Adjusted EBITDA is only 11% in this division. You can yourselves do the math. If we have a sales of SEK 715 million, I think we can see a rapid pickup in the EBITDA margin going forward. The key activities for E&FT were the acquisition of Fume & Dust Control in Australia.

We're continuing to invest in -- it's in North America, actually, the major investments now in the facility in Charlotte, North Carolina. And we also held a Partner Royale event here in Helsingborg. We had over 50 European partners visiting us there. Process Technology, development in the quarter, some currency-neutral growth in order intake in Process Technology, that's 1%. There are some markets now that are showing signs of stabilization. If we take the fiber and textile market, we actually saw growth in the quarter, which was pleasing.

If we take India, for example, we also, on the foundry smelter side, do see the Indian business growing there. We've invested a bit of time and money in that, and that's starting to reap rewards. The service business continues to grow as well, which is very, very important for this division. It has the better margins there. Some larger orders were booked, but it was still on a relatively modest level. Orders SEK 380 million; sales, SEK 390 million, which is SEK 10 million lower than last year in sales. But despite that, we actually had a slightly higher margin.

EBITDA margin is at 8.9%. This shows the importance of continuing to grow the service business. The mix effect of having more service in there is clearly positive for profitability. Key activities in Process Technology, still focusing on product development. There's -- we're upgrading a test center at the moment, and the digital range is fundamental for this, not least in order to connect it to the service side of things where we see this good profitability development.

Moving on to Duct & Filter Technology. Extremely strong order intake in the second quarter here. They picked up -- the order intake picked up in March continued throughout the quarter. Sales increased marginally, but it's not really a backlog business, but despite that, there is a bit of a backlog buildup. Very good profitability, good operational efficiency. These investments that we've made in, for example, in Thomasville in the U.S. and also the plant in Assens in Denmark, are seeing increases in margins in the factories.

If we talk about the numbers, external orders received SEK 194 million, total sales, SEK 203 million and then an EBITDA margin is 19%, which is very pleasing. What must be pointed out is that this division also have built backlog in the quarter. The external orders received SEK 194 million. On top of that, they typically sell for around SEK 20 million to SEK 25 million to the other divisions in the Nederman Group. So we ought to see a pickup in sales in the third quarter as well here.

Key activities, BIM Toolbar has been launched in Europe. It's been very successful in helping us get larger orders in the U.S., and we're aiming for the same here. Marketing activities have been quite important right now. We've tripled the production capacity for our heavy gauge ducting in the U.S. and that business is developing well. It also brings in regular ducting business, and we're highlighting that. We also have now a remote warehouse in Dallas as part of our ambition to improve the fast, friendly, reliable Nordfab Now concept a little bit further west in the U.S.

An interesting thing here as well, the solar panel system in Thomasville, which we've expanded further is now exceeding 1 gigawatt of electricity production annually, which is actually helping with some decimal points on the EBITDA margin. It's a very good business case with solar panels in that part of the world.

Monitoring & Control Technology, the positive here was a significant pickup in order intake in the second quarter, particularly in APAC, both Gasmet and NEO Monitors performed strongly in APAC there. As probably expected, the sales did decline following the low order intake in Q1. Order backlog has therefore increased, which bodes well for the upcoming quarters. We see some clear indications that the market is stabilizing. Nevertheless, orders received were SEK 192 million, which is very good. That's 17% growth. Sales were down at SEK 178 million from SEK 190 million last year.

The EBITDA margin is then 7.2%, which is a big drop from 14.9% last year. As well as a drop in sales, we had a somewhat negative mix effect here with Gasmet portable units. We had fewer of those in the sales mix in the quarter, which leads nicely on to key activities actually because we've -- Gasmet have launched the new GT7000 Tellus, and we've received the first orders for that one.

That will help margins once we start getting that up to significant volumes. The Insight digital platform is being continued to be -- is continuing to be developed. We'll have a new commercial release later -- coming later in the year. We continue in this division to develop in product development. It's extremely important to do so, includes digital solutions.

We even opened up as well something that's positive, a modernized service workshop in Houston, Texas, serving the U.S. market. We've improved that further there, which should help the aftermarket business. What we've done also in -- that's not actually mentioned on this slide, Monitoring & Control Technology now have launched their offices in both Korea and Singapore, which will continue to support this growth that we're seeing in the APAC region. There is definite potential for this division over there. Sven might talk about that a little later.

So that's a crash course through what the divisions have been doing in the quarter. Financial calendar, next time we speak to you in this forum will be on the 21st of October when we'll talk about Q3 and the year-end report is released on the 12th of February. But with that, I think we can open up for any questions that listeners may have for us.

[Operator Instructions] The next question comes from August Flyning from Handelsbanken.

Two questions from my side, basically. If we start with orders and projects basically, you mentioned discussions around slightly larger projects, particularly in Process Technology, which you hope to realize in the coming quarter. Are these mainly delayed customer decisions for earlier quarters or more like new opportunities entering the pipeline?

I think it's -- Hi. Hello. Sven here. I think it's -- I don't think -- I know that it's both. We have a very strong pipeline. We have a growing interest for our solutions. We are proving over and over again that we are technology leaders here. The interest in the -- to get lower usage of energy, et cetera, is, of course, of importance. But we have and we have said that now for a year or more than a year that we -- it is a bit disappointing that we -- the very, very strong pipeline we have and that near sort of decisions within our customers, they are still hesitating. And of course, everybody knows the reason for that, and that is the macroeconomic, the uncertainties, and that's a situation we have.

But there is a lot of potential where we see an increase and are moving forward from small or low numbers in the sense of foundries and smelters, that we have introduced local manufacturing, local sourcing, and we have had significant success here, and that continues. So yes, we are reasonably positive that we will get these orders. The question is when will the decisions be taken. And it's also so that we have to remember our portion of these big projects are fairly small. So it's bigger decisions that we are waiting for when it comes to new. Where we have a growing interest and some success is, of course, of refurbishment of other existing units.

Which incidentally has a higher -- usually has higher margins as well. So it's business that we very much like to get.

Sorry, did you...?

No, that was it. You had a second question, I believe.

That was it. Thanks. And on to margins then. We -- and I know, Matthew, you have talked about this a little bit before on Monitoring & Control specifically. I mean, margins came in clearly weak if we look at a year-over-year basis. But would you say you see this mainly as recovering with high volumes? Or should we expect mix in Asia investment to continue going forward?

The biggest single problem, we can't get away from the biggest single problem is the volume or was the volume in the quarter. I mean SEK 177 million in sales versus SEK 192 million in orders that you've got SEK 15 million -- if we had SEK 15 million more in sales, the margins on these are very good. So you would see a very quick uptick in the EBITDA. So that is the bigger issue.

We also did take more -- we had better order intake for these, for example, portable units in Gasmet. Also Auburn in the U.S. as part of this division had a good quarter for order intake, and that's stronger than average margins for that division too. So it is a weak margin in the quarter. It's the weakest one for some time, I think. But going forward, we expect them to pick up quite clearly.

We're also -- I think it's fair to mention, we're also taking the investment of setting up sales and service organizations, both in Singapore and in Korea. And that is an important area. We have been quite focused on the Chinese market historically with offices in Hong Kong and in Suzhou. We also see now due to some of the Americans want us definitely to be outside the Chinese hemisphere, and that's the one reason. The other reason is that we are getting now permits to sell in especially the Korean market for, what do you call it?

Semiconductors.

Semiconductors market, which is an add-on to our existing. So that's the reason we have this disappointing low margin. We expect to be able to, during the year, increase that.

[Operator Instructions] The next question comes from Anna Widstrom from DNB Carnegie.

So firstly, I just want to clarify because it sounds like the pace of order activity gradually improved during the quarter. Is that your view as well? Or was it rather stable at a solid level throughout?

It was rather good throughout. It was a bit higher in June. It is quite often in our business, the case that the third month of the quarter is a little bit higher anyway. But it did pick up a little bit in June, but it was solid throughout. So we've -- it's been a much more comfortable quarter for me sitting here analyzing the numbers than Q1 was where we saw the big pickup in the third month.

I think it's fair to say that we saw it in the latter part of Q1, the last weeks in March, and then it continued through Q2.

Okay. Perfect. And given that the order intake seems to be mainly related to small and midsized orders, should we then think about that -- should we think about it as a majority of these will be converted to invoicing quicker than usual. So a majority seen already in Q3?

Inside this year, there's definitely more short-term visibility. But Q3, Q4, is with deliveries into Europe, a lot of Europe sort of half closes down. So I think it will stretch into Q4 as well.

And also the problem -- transportation problem is delaying some orders going to Australia, Asia and so on, which is actually a couple of weeks. So I think it's fair comment to say during this year.

Okay. Perfect. And then just a follow-up question on the MCT division. With sort of the improving orders, is that then a recovery towards some of the prior customer segments that have been weak for the last couple of quarters? Or are you getting traction towards new customer segments?

I would say that we get new customer segments as well. Where you have an issue still, and we will see that Gasmet especially have a big portion to official governmental universities, customs, police, et cetera. And that has been very weak especially on the North American side of it. So...

But you could say, Sven, geographically, we've done much better in Asia now, and we have seen orders coming in, in India as well. We're focusing a bit there. So this is...

And that is a new opportunity. We have opened, but we haven't -- we are utilizing, we have put resources in our existing -- as we are doing -- we are having a sort of a shared service in India, and we have now added salespeople in that region. And we see some good inroads into the market.

Okay. Perfect. Are there any specific, like, end markets that you've gotten good traction on? Or is it very widespread?

We could say we're quite positive about the semiconductor industry in Korea. We're not there yet, but we see some very positive signs. So that's one we're focusing on more. That has a lot of potential.

But it's also linked to different regulations that we are, to be fair, the only one that can measure some of the substances to a level where it's needed, et cetera. So it's both traditional and new customers. We are investing a bit or quite a lot in trying to find new customers since some of the traditional businesses hasn't been that eager to buy at the same level or follow the increase that we would like it to be.

Perfect. And then a question on if you've had any -- because you mentioned, like, delays in transport, for example, but have you also noticed some effect from cost pressure in the quarter and if you're going to do some price adjustments ahead?

The U.S. steel prices are ticking up a little bit. That's the main thing that we've seen there. We've adjusted prices within Duct & Filter accordingly. As we -- I think you know if we take the larger contract business in Process Technology, for example, there are back-to-back agreements within the contracts if there's significant fluctuations in raw material prices. But we have adjusted some pricing accordingly already. But there are slight cost increases.

Okay. Then a final one is how you're thinking about the net debt level. I mean it increased during this quarter, but as you said, it's partly related to the dividend payout. But how are you thinking about this? And what will be the priorities ahead?

What we can say on net debt is the operating cash flow is ticking along quite nicely, particularly from E&FT and Duct & Filter Technology. But they still have more -- they utilize more debt for themselves anyway. But where we've seen a difference is the Process Technology have had fewer larger orders in. These are the ones that are cash positive. And you could say it depends when you start, how far you look back on this, but it's the difference from the absolute peak when we had a massive order backlog is up towards SEK 200 million in terms of net debt here.

And we expect if -- or when Process Technology start booking some of these larger orders that we're referring to, you could see quite a quick fluctuation -- a quick downturn in the debt then. So we don't, for example, see any major issues with customers delaying payments or bad debts or anything like that. It's -- and, like I say, the regular ongoing business in Duct & Filter and E&FT in particular, that's ticking in nicely. But it's more of a Process Technology connected one, largely.

Okay. Perfect. And just the question -- final question from my side is on the comments that you made on potential improvements in the textile segment in Asia and Indian smelter side. Is that relating to activity in the pipeline or also in the actual orders that you booked?

It's in the actual orders that we booked. They saw -- they have -- it depends -- they had rather low comparatives, but we saw a growth of around, it was around SEK 40 million to SEK 50 million, if I remember correctly, in order intake in the quarter. So it's particularly in India that we're seeing the increase in fiber and textile at the moment.

They are picking up a little bit, whereas you have others, more difficult market. China hasn't come back yet, but India is, and you have still weak markets, other textile market like Turkey and some of these regions. There are no other -- sometimes there are larger investments like in Egypt and some South American countries. We haven't seen that recovering yet. But there is a pipeline and fairly positive that there will be a bounce back. How -- and it's probably going to be a bumpy road, but we see that it seems like it's leveling out at least.

Definitely bottomed out now.

For PT, they have some success with what we call the hot air applications and foundry smelters, and we see that textile is coming back where there are still issues is the really mega project in these special engineering solutions. However, there is an enormous pipeline. So we'll see if they proceed and when.

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

Yes. Thank you for listening and for good questions. I try to conclude this session with that we are very encouraged by the positive development during the quarter. Improvement in order intake across the group give us some confidence as we look ahead to the coming quarters. Growing service business providing recurring revenue streams and an increasingly strong digital offering continues to provide resilience and stability.

We are performing well in as we control ourself. And although it's difficult to forecast the broader market recovery, our strategic direction is clear. We have a strong balance sheet, a growing presence in attractive markets and segments, and we continue to invest in operational excellence and innovation. These investments are already strengthening our competitiveness while also positioning us to further increase profitability as market conditions improve. I would say that most importantly, the long-term fundamentals driving our business remain firmly in place.

Awareness of the importance of clean air, resource efficiency and safe industrial environment continues to grow around the world. With our leading technology, strong market position and dedicated employees, Nederman is uniquely positioned to help customers address these challenges while creating sustainable value for all our stakeholders. We remain confident in our strategy, optimistic about our future opportunities and commit to our journey of elevating Nederman. And once again, thank you for taking the time listening to us instead of being out in the fabulous weather we have here. Thank you very much.

Welcome to the Nederman Holding Q1 2026 Report Presentation, [Operator Instructions] Now I will hand the conference over to speakers CEO, Sven Kristensson; and CFO, Matthew Cusick. Please go ahead.

Good morning, ladies and gentlemen, and welcome to this presentation of Q1 for Nederman. Our headline has been resilient in a volatile market because it's been an eventual quarter again. And what we can see is that we are still strengthening our position in the world although it remains very turbulent.

The first quarter, we continued to advance a position in a very volatile market. There is high activity across all divisions that all having good pipelines, less good order intake. Because we had lower orders received, although the activity picked up at the latter part of Q1 and continuing here in in April, we'll see what that means. We are strengthening our presence in a structurally growing industry. And by that, we mean that we are entering new fields like Food, Pharma and Life Science related, et cetera, and resulting in a lower sales and EBIT or profit margin.

If I move on to some of the key financials then, if we go on to -- on orders received, as Sven mentioned, for the quarter as a whole, orders received were weaker than a very strong Q1 last year. It must be mentioned 3 of 4 divisions in Q1 last year -- I'll leave it at 2 or 4 divisions in Q1 last year had their record quarters for order intake. I don't want to get into a debate on currency rates. But like Sven mentioned, order activity clearly picked up, particularly during the second half of March, negative currency impact. That's something that you analysts listening will have heard and we'll be hearing from lots of companies. It's around 9% quarter-on-quarter for us in Q1 this year.

Orders ultimately were SEK 1.267 billion versus just over SEK 1.5 billion in Q1 last year. That's 6.7% down currency-neutral, 9.2% organic. The charts that we see on this slide for orders received, you can see that basically half of the drop in order intake is currency related.

On the next slide, sales lower than Q1 2025, I put a comment in there, in line with Q3 2025's order intake, which gives a little indication on the sort of lead times. It's not the same lead times across all 4 divisions. But SEK 1.257 billion was approximately in line with Q3. Again, currency impact, minus 9% also on sales. Currency-neutral order sales were down 2%, so less of a drop than on the order intake and it's purely looking comparative-wise, organically minus [ 5.5%].

Profitability, these lower sales volumes and are apparent -- we did have very strong gross profit margin. Something that's quite pleasing is the increased productivity in our factories. We had rather good utilization in the factories in the EFT division during Q1, which Sven can come back to [indiscernible] EBITDA is pure currency effects largely due to the U.S. dollar, which was down quarter-on-quarter, nearly 15% compared to Q1 last year.

Ultimately, what that meant was that the EBITDA for Q1 was SEK 117 million versus SEK 143 million last year. The EBITDA margin, 9.3% versus 10.1%. Earnings per share, SEK 1.31 versus SEK 1.69 in Q1 last year. Cash flow from operations, very slightly negative. It was a typical quarter 1, I would say, in the Nederman world. Typically, what we see in quarter 1 is that we've received some orders just before the year-end, and we've received down payments on those orders, and we start executing on those. So the working capital development is usually less favorable in the first quarter. We are still lacking some larger orders, which -- for which we received down payments, once those start coming in, that will boost the cash flow from operations rather well.

On the net debt front, very little movement, we could say since the year-end. Division by divisions, Sven, we start with EFT.

Yes. Extraction and Filtration Technology here, during the quarter, we had a bit low orders received and that was mainly due to very few larger orders in Americas, where we could see a new hesitation to sign. However, the base business, as we call it, the traditional small project, the ones that do not have to go to the boardroom, actually grew in the division. And there was a significant order intake growth for service as well. Since we have, over the last few years, put much effort in growing in especially European and the North American organization to have a strong service, which also prolong the relation with our customers.

Profit margins increased versus Q1 and that is due to operational efficiency. We have been talking about the investments we've been doing, not only in Helsingborg, we have a new factory setup for [indiscernible] Brand in Detroit area. We are continuously upgrading now, and we'll come back to that in [ Charlotte factory ] as well. And we had a decent capacity utilization in the factories, although there is plenty of room to grow that. But increased operational efficiency, maintain our margins.

And if we go to European market, we had an increase in order to receive. And again, it was strong base business, midsize, small, midsized solution orders. And then there were 3 major orders and that was to commercialize manufacturing Defense actually Naval area and wood products. So that's what we see.

If we look at the Americas, as you have noted, the orders received were significantly behind Q1, which in all [indiscernible] Was a record year, a record quarter, but we've seen the hesitancy in U.S. market to put the pen to the paper. One major order was, however, secured and that was winter manufacturing. Base business grew. And again, several small midsized orders. And again, service where we have focused over the last few years, as mentioned before, also in the U.S. market grew.

So currency neutral sales growth with strong service business. In Asia, lower orders received and [ sales base business ] also weaker, and it's a challenging market environment. Some cost cautiousness has been taking in some of the Asian part of it.

Key activities. We continue to launch new products. As you probably have seen last year, we spent almost 3% on R&D, and we see how that pays off. GoMax, I will not go into the details, but it was again we were again awarded a technological award and the reason of the -- how they formulate it was smart technology with an efficiency and sustainable design. Continued investment in operations in North America, we have started the further in-sourcing project in [ Charlotte ] for this division and that will further lead to efficiencies in our supply chain and in a further step also more or even less, even if it's very little that comes from outside U.S., 80%, 85% is local content in this division in U.S.

We have launched new versions of the partner web shops. So we continue also our digital journey when it comes to being up-to-date.

When it comes to financials for [indiscernible] , orders received SEK 578 million in the quarter is 8.6% down currency-neutral albeit from, like Sven mentioned, a record quarter at that time. Q2 actually exceeded that, but this was a record at the time. Sales, SEK 592 million. [indiscernible] Sales. So this is a little bit what we're talking about in terms of resilience. We've managed to keep the margin up. We actually increased the margin in this division to 12.2% from 11.6% in Q1 2025.

Moving on then to process technology Sven.

Yes, process technology. Here, we have significant larger orders and projects. And it's glad to say that we actually had order intake growth in the quarter. There were a few -- for several major orders secured. And again, a very strong aftermarket development with strong growth. And again, we see the result of a few years of focused activities.

So again, we got a order backlog that increased. And if you remember our acquisition of Euro-Equip, they are giving a positive contribution, both orders, sales and profitability. So we are very pleased with that addition.

The 3 parts, we start with Textile and Fiber. Here, we see the continuous overcapacity, but also a slight pick up. So maybe the Textile segment has bottomed out, but I will not promise that, but we'll see. But it's been couple of years with very low demand. Again, we have the energy saving as for textile plants orders have reached record levels. We passed 1,000 units here during the quarter. And again, we show the capability of technical leadership and new development and helping our customers to save energy in a world where energy prices are soaring.

Foundry and Smelters. We actually also here had organic growth in order intake. There was a very large order for copper recycling in U.S. We have, over the few years specialized in our technology to be and are the technology, commercial leading partner [indiscernible] Recycling of metals and materials. And again, positive impact from Euro-Equip, continued strong activity within the recycling. However, that is signed that they are a bit slow to take the decisions, but for a mid- to long-term recycling of metal will continue. The need of copper, the need of aluminum, we cannot have it on landfill, which is the case in U.S. and in Asia. In Europe, we are quite good, especially on aluminum, where we have 80% to 90% recycled material.

Customized Solutions, stable development, new order in U.S. pharmaceutical industry. We are sort of moving in, as mentioned, to a little bit new territory. We have been doing it before, but we are more focused now on finding pockets of growth in this environment. We secured 2 projects in India, and that is geographical expansion. We are using our strong footprint in India for the Textile and Fiber. And from that bridge head, we are now increasing our capabilities and also taking in other areas from the division.

Service business continued to grow. So again, key activities, sales of energy-efficient carbon bladed fans for textile plants exceeded 1,000 units, good milestone. We continue to invest in test center upgrades and ongoing improvement to existing product lines. Again, [indiscernible] , we renovation capability where you can save energy and make your choice. So again, we are far ahead of competition when it comes to technology and integration of digital solutions.

Financials for Process Technology. Order intake was SEK 346 million in the year, which was even at prevailing rates growth, currency-neutral nearly 14% up. Euro-Equip, part of this currency neutral growth, but even organically, like Sven mentioned, we've gone up there 2.9%. Sales very slightly down to -- or slightly down to SEK 321 million, but adjusted EBITDA is increasing SEK 29 million is 9.1%. You see there that the boost from the growing Service business, for example, which has stronger margins. So 9.1% on rather modest sales figures is what we see from Process Technology in Q1.

Duct and Filter Technology then Sven.

Yes. Duct and Filter. Here, we've seen, and it's very much based on the U.S. side, where the majority of the sales come from. Development in the quarter, we had a bit of a decrease versus the record Q1. So the year started very slowly, but it picked up later in the quarter. And again, of course, based on this, there is very limited backlog, the sales decrease versus Q1 2025. But we do deliver solid profitability with very good factory efficiency.

As you remember, we have now invested in the 2 parts of -- and fulfill 2 parts of the manufacturing in Thomasville. We have automated. We have invested in in new technology in both standard sizes and also now inaugurated the XT, which is larger dimensions. And we see how that, despite the fact that the volumes, are a little bit slow can maintain good gross margins. Again, of course, massive negative currency effect since most of the business is in U.S. dollars.

Nordfab, which is deducting we saw increased activity in March, and that was actually giving us organic growth for the quarter as a whole. Project wind battery manufacturing made significant contribution to the order intake. And that was very much so that EV battery factory are now converted into battery factories for storage, et cetera. So we say maybe some of that business is rebouncing and coming back.

EMEA orders resales increased slightly compared to last year's Q1. Menardi, which is filter banks had a very slow order intake, but saw a slight recovery in March. EMEA performed well, but it's a much smaller portion of that subdivision.

Launch of BIM Toolbar, US and Europe, launch of HygiDuct Australia, Thailand. Solar panel installation Thomasville is providing significant reduced environmental impact and also cost impact. The sun is shining in North Carolina, a significantly more than here in Helsingborg.

Continued investment in tools and equipment to enhance product quality and streamlined manufacturing. And as you've seen, we are seeing positive effect of the automation and the significant investments we have made in manufacturing and logistics. It's not only the manufacturing, it's also the setup with Nordfab now, which is giving us capability of balance and have more efficient manufacturing.

We have started the project where we have subs, where we have possibility to have shorter lead times. So we have started opening in Texas, Dallas warehouse. We are only shipping the emergence in part directly, the rest we take from a warehouse. And again, we have been able to have 100% delivery accuracy despite the hike in orders in late March, very positive for the market, and we are getting new distributors who want to work with us.

Financials for Duct and Filter Technology. External order intake was SEK 180 million in the quarter, down from the record Q1 last year, SEK 224 million that's 7.4% currency neutral. Obviously, as Sven mentioned, the currency impact on this division is very high sales. [ SEK 194 million ], down from SEK 241 million. Adjusted EBIT of SEK 37 million is 18.9%. And we think, again, this is showing resilience. Last year, Q1 was 22.1%, which is the highest quarter for this division in all of history. But 18.9% still rather pleasing on somewhat more modest volume levels.

If we then move on to final division, Sven Monitoring and Control Technology.

Yes. Monitoring and Control. Here for the quarter, we had real decrease in orders. Revenue was also decreasing, but there were very big variations between the different business units. And of course, the low sales volume, the profitability was reduced.

If we look at NEO Monitors, the total order intake was slightly reduced there, and that was due to Asia. That hold a little bit in the quarter. We have seen growth in the U.S. and we have over years have seen significant growth for NEO Monitors in the U.S. market where we were a very small player a few years ago. But by the investment in [indiscernible] Sales office and service organization, which is now consisting of up to, if I remember correctly, 12 persons have given us direct access to the petrochemical industry in in the area.

And we also see that it leads to major orders, and we are deepening our cooperation with the large one since we now are located with a strong service team in the neighborhood. The European orders and sales grew organically and they had a stable demand. We have significantly increased the production efficiency, all of the real manufacturing going on in Oslo, and we have restructured from a small almost, call it, startup manufacturing [indiscernible] And electronic assembly site that is much more efficient much more quality and that work is continuing.

Gasmet, the order intake reduced and it was partly on a nonrepeat major order, but it's also punishing the the large dependence on public sectors like customs, police, universities that is a base business and that has impacted, especially in U.S. and Asia, where there has been reduced spending in these sectors. But we have also received new orders from new customers in Singapore and South Africa.

Auburn, based in outside Boston in Beverly, saw organic order intake growth. We could definitely see that the order intake picked up in March. What that means going forward, we don't know. We had slightly -- sales slightly behind this very strong Q1 last year, but the orders are coming back.

We have reviewed and updated the product portfolio, and that continues, and we are hereby getting the permits, the , et cetera, and strengthening our platform for expansion in India, China, but we're also having other activities to go outside the U.S. market that is dominant for Auburn's product. We have added a product like PM Laser to upgrade, and that has given a new boosting interest on the U.S. market, where we have a very strong position, but we want to also grow that in Asia and in Europe.

Our activities in Asia were halted, but we are restarting them. They were halted due to the difficulty to sell from U.S. to China with 100% custom tariffs which was the case in a period. But we are now restarting those activities.

Again, key activities, launch of PM Laser, new technology from new application particle monitoring. We have established sales offices in Korea and Singapore. We have continuous improvement to existing product. We are also increasing the integration between Insight and Olicem, also here an increased awareness with customers, and we are linking these products together.

Ongoing new product certifications and that's partly what's needed to bring in larger volumes of our Auburn products to Europe. We also doing preparation for capacity and efficiency investment in Gasmet facility in Finland. And that is linked to and is similar to what we've been doing in Auburn and in [ Neo ].

Financials for Monitoring Control Technology. Orders received SEK 163 million in the quarter, down from the record SEK 249 million in Q1 last year. Remember in Q1 last year, we had 2 orders in this division that alone combined almost reached SEK 50 million, but nevertheless, 28.5% down currency neutral.

Sales, SEK 168 million versus SEK 198 million. That's down 8.2%. And we see the impact of the margin -- on the margin of the volume drop on this division. Adjusted EBIT to SEK 20 million is 12.1% versus 18% last year.

If we move on then, Sven, to the outlook.

Yes. Demand remains subdued in many sectors, but the growing service segment and a very strong vehicle offering means that we are performing very well in the current uncertain market. Following a very weak start, activity picked up towards the end of the first quarter, which, if continues, will bode well for performance in the quarters ahead of the year. The pipelines are strong, but the order intake is low.

At the same time, there is considerable uncertainty in the market, very difficult to forecast broader recovery in demand. However, when that gains momentum, we are extremely well placed to improve our profitability. With a strong balance sheet, we continue to invest in operational efficiency and in continuously improving our offering. That means that we will be able to continue to strengthen our position, regardless of the market situation. But in a world where awareness of damage that poor air quality does to people is growing. Nederman, with its leading offering in industrial air filtration has an important role to play and a good opportunity to continue to grow.

Briefly on the financial calendar. Then we've got our Annual General Meeting next Tuesday, at 4:00 p.m. The interim report for Q2 is released on the 16th of July and the Q3 is released on the 21st of October. The year-end report will be released on the 12th of February next year.

And with that, I think we can open up for any questions that people listening may have for us.

[Operator Instructions] The next question comes from August Flyning from Handelsbanken.

Two questions from my side, please. To start off with, you mentioned that activity picked up towards the end of Q1. Could you give us some more color on what drove that improvement in the final weeks of March and whether it was broad-based or more concentrated in terms of both divisions and regions.

I can say across the divisions, it was rather widespread. Process Technology is more volatile, as you know, August their large orders come in when the Board decision happens, the large projects come in. But we did see in Monitoring and Control Technology, in E&FT and in Duct and Filter, we definitely saw a pickup in it. So it was rather the broad range.

Regional-wise, not so much -- there's no reason it picks out one way or the other in that. APAC is still slower, and we think that is likely to do with what's going on -- it can have something to do what's going on in the Middle East right now.

That's very clear. And on tariffs then, I know you guided to approximately SEK 5 million in quarterly tariff costs going forward. Could you perhaps elaborate a little bit more on kind of products or shipments that primarily relates to now given the fact we have an updated here Section 232 on steel-based products.

Yes, that may benefit us. We are also -- and we're not doing this in order to -- so that personal that will likely benefit us somewhat assuming we don't change anything in our production flows. On the other hand, we're also investing in the production in the U.S. in Charlotte, which will mean that slightly less then transatlantic, but this is still rather a small impact for us, is not -- we're not changing anything strategically down to based on the tariff. And we will not do in the foreseeable future ever.

The next question comes from Anna Widstrom from DNB Carnegie.

So firstly, I just wanted to ask because I know that the number of employees is down -- so could you maybe elaborate a bit on basis relating to cost savings or any effect from something else?

Number of employees is largely related to production sites. It's not -- there are that we have made some cost savings in APAC, but that's relatively small relative to the number of relative to the number of reduction. There are -- we do have some temporary employees that that fluctuate over time. And at the moment, obviously, with less with less volume, we are able to adjust the production capacity accordingly. But it's not something a major restructuring that you're seeing there or a major focused reduction.

And we also have the fact that with the automization in the different factories, you have here and there, you have 2 less needed because you have it automated with -- as you have 2 less are and so on. So that's an ongoing process. It's not we have not seen the need for a larger restructuring.

Okay. Perfect. My second question is on how if you maybe could give some details on how we should view the ductile filtration technology margin, just given that we probably have a lot of FX effect. So maybe some sort of guidance on how that specific margin would look if we didn't have the U.S. dollar.

Yes, the margin in itself in percentage terms isn't massively effective for that division because the vast majority of the -- so there's not an awful lot that's going transatlantically -- the Swedish krona is -- when we translate is the main issue with that division. -- we are margin-wise on that division, like I mentioned, we're rather pleased with the 18.9% they do. And that does show that, for example, the where we've introduced these AGVs into the factories and a little more automation. We have seen a reduction in the direct labor percentages for that division, which is making even on modest volumes, we quite -- we got we've got rather good margins. So some volume increase or to give even more leverage in that division.

Okay. Perfect. Then also a specific question for gas mix. Just thinking now when public spending seems to go down quite a lot, are there any specific customer segments that you sort of try to increase your sales efforts towards.

Yes. They have a handful but it's mainly to start more having broader geographical base for the existing gross something ongoing. They have a growing cooperation with Olin and hereby also increase the after marketing capabilities in that area. So it's energy and it's APAC that we need to further grow. But it's also a problem. We don't know what will happen in the U.S. spending because that is a significant part of it that has been universities, other school been customs authorities police. And so when their spending has gone down dramatically over the last 6 months, I would say.

But I think we will I can't give you a promise that it will be boom within the couple of weeks, but we are working very strongly to find, as we have been doing in other ads. If you look at the EFT for instance, when we acquired -- when we acquired Gabon, 85% of our sales were out related. And the downturn in that market would have given us a significant downturn of the sales. But by using the knowledge in using these applications in food-related, other areas we have now been able to maintain the volumes there, although both you and I would have liked it to be icing on the cake that we grew it and still had a significant auto part but -- now we see that maybe the auto industry is starting to reinvest again. We see that there's a lot of service orders coming in, and that's the first time that they are reopening their lines.

Okay. Perfect. Just 2 more from my side. So firstly, looking on the product mix that you have in the order intake. Is there something that we should be aware of in terms of like margin impact for the quarter that.

Not really, you could say, if I take process technology, they're still doing very well on service, so that we expect there rather good margins will continue to be solid. EFT a little bit growing in the service business as well. So that also helps. -- monitoring and control technology. One of the issues we have there why we were a bit lower, some of this public spending is on these portals these portable units, which do have extremely good margins. So that is less solid -- but I would say, process technology in EFT have got healthier margin backlogs than they had 12 months ago. albeit lower in our.

But if you could also Dutton filter has also very -- since we, as mentioned, we had very low portion of personnel cost. It's extremely low, and that is several percentage units down since we made the investment over the last 2 years. So that means that an increase in volume or recovery in volumes will have also in that division, very strong impact.

Even a modest increase across the group in volumes will -- should increase the margin quite significantly weak.

Perfect. Just a final one, if you could tell us a bit on if you've noted any impact yet from the Middle Eastern complex in either costs rose perhaps activity from the oil and gas customer. I mean you mentioned 1 order, but that doesn't sort of related to this.

The impact is very hard because the biggest impact is the hesitation and what we've seen, the hesitation to sign larger contracts. And it's the same as when we had what they call liberation date. It's not a tariff, it's such it's more the unsecurity among our customers, and that means that they are some sort of holding back on doing the large investment. And part of the problems in -- or the overcapacity in Textile Fibers related to the uncertainty also how can you ship things over the ocean. And what is happening? And where should you invest? Should you invest in Carolinas Guatemala or should you continue to do in India and so on. So more the uncertainty that has an impact. Then there is, of course, potentially an issue as we had during Coiperiod on shipment capacity and so on. If we get vessels stack around in home ostra/orin Sesowherever. So.

I try and pull out 1 positive out of the Iran conflict might be, but we have -- and like you said, we haven't seen this at all yet, and you may be hinting at this -- if this drives investments in oil and gas.

Petrochemicals or anything around the new investments if countries decide themselves, they need to invest themselves more that could mean a macro boost for those sort of industries, which would be good for example for Neo Monitor, Gasmet, in particular. We've not seen it yet. But that would be -- if I'm going to put 1 positive out of it, there are -- like at the moment, this hesitation is the key issue for us though as you say, a it's the spent hesitation.

Okay. So you've yet to see sort of actual cost increases for you that you need to sort of offset to what customers as...

There has been -- there is some, of course, that will come on plastics and so on and polymer steel has gone up a little bit due to the energy cost and so on, and they are seeing some increase. But that is -- that is so straightforward, so that you can handle and you can make a sort of -- this is -- if you can go on a plane, you will see on your ticket. We have added a surplus for energy costs and so on. And that's not a big issue to handle. It's more the uncertainty and the lack of volumes that is problematic.

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

Thank you for taking time listening to us and we will have the annual AGM meeting on Tuesday, and we will have a short comments from that as well next week. And after that, we will be back for the second quarter in July. Thank you for taking the time.

Good morning, and welcome to this conference call regarding Nederman Group Q4 2025. It's been an interesting year. And what we can conclude in Q4 is that we had higher orders received and a stronger business.

We have, during this challenging period, continued to strengthen our leading position and we are working with market leadership, technical leadership, commercial leadership and operational leadership. That's our focus during this period.

If you look at Q4, we had good organic growth if you consider it on a currency-neutral basis. We also had a currency-neutral growth in sales and we believe that is very positive given the market conditions.

We have delivered good cash flow and we have continued invest in operations and also in R&D. And these investments have provided a very solid basis for the future. We will have higher margins and better efficiency when we regain some momentum in the market.

If I look at some of the key financials now, orders received grew currency-neutral in both Q4 and the full year. It's very hard -- some of you who've listened to a number of these hearings already in this year-end season might be tired of hearing about currency-neutral and currency effects, but it's really very important to take this into account when analyzing the numbers. Sales as orders received for Q4, SEK 1.38 billion versus SEK 1.4 -- slightly over SEK 1.4 billion last year.

So on the face of it, that looks like a decrease. However, organic growth was 4.7% in the quarter, currency-neutral, including some of the couple of acquisitions from Euro-Equip that we acquired back in March of 2025 and some from Duroair last year. That leaves us at 7.3%.

Unfortunately, currency effect on orders received and actually on sales in the quarter was over 9%. For the full year, SEK 5.55 billion was the full order intake. That's growth, currency-neutral of 1.5%, slightly negative organically, minus 1.3% and still, obviously, for the full year, a clear currency impact.

On the sales side, again, currency-neutral growth for both Q4 and the full year, just over SEK 1.4 billion in sales in the fourth quarter versus a very strong Q4 of 2024. It must be pointed out, SEK 1.62 billion was very high for the Nederman Group.

Currency-neutral, that's 1.3% up in the year -- in the quarter -- sorry. For the full year, SEK 5.78 billion versus SEK 5.9 billion last year -- 2024. 3.5% up currency-neutral. So we see in these -- with these market conditions and the current investment appetite that 3.5% currency-neutral growth is rather strong.

Profit-wise, like Sven mentioned, these investments that we've done in our operations have improved underlying profitability. The releases of new products has boosted sales in, for example, Process Technology's aftermarket.

Adjusted EBITA for the quarter SEK 459 million versus SEK 185 million for quarter 4 2024. That's a drop of SEK 26 million, SEK 22 million currency effect in the quarter. Please take that into account when analyzing this.

The SEK 159 million leaves a margin of 10.6%. Earnings per share is SEK 1.86, therefore, versus SEK 2.49 in Q4 last year.

Full year adjusted EBITA SEK 627 million versus SEK 708 million. EBITA margin, 10.8% versus 12% and earnings per share SEK 7.8 versus SEK 9.83. When looking at the full year results, we had a currency impact on EBITA of approximately slightly under SEK 70 million.

U.S. tariffs were approaching SEK 15 million for the group as a whole. And then we did have a couple of one-offs, you remember in 2024 related to a property sale and the company sale in China. The sum of those is just under SEK 100 million. So when comparing SEK 708 million to SEK 627 million for the full year, please take that into account.

Cash flow, good cash flow in the fourth quarter, very good cash flow actually in Q4 of 2025, not quite as good as the cash flow in the -- I think that was an all-time high for 1 quarter cash flow in the Nederman Group in Q4 2024.

For the full year, SEK 382 million, again, rather strong. This is important that we maintain a good cash flow. This has funded a lot of the investments that we've been making in our operations.

We can see that on the second -- on the right-hand side of this slide, the net debt has decreased over the past 2 quarters, although it is higher than it was 12 months ago. We've made significant investments in our operations. We've also acquired a new company and paid out a dividend during the year, of course.

If we go right through and break things down on how the business is going division by division, then Sven, and start with Extraction & Filtration Technology.

Yes. Extraction & Filtration Technology Q4, we had more large orders, both Americas and EMEA and that gave an increased order intake versus last year. We grew sales in Q4, currency-neutral.

We definitely improved operational efficiency and that was driving profitability. And the full year EBITA was up SEK 10 million. And if you would consider it currency-neutral close to SEK 50 million, which is a strong performance in a very challenging market.

For the regions, EMEA, we had increased order received. We had major solutions orders and we are growing our aftermarket business, which has been on the strategic agenda for several years.

We had 2 very big orders in Belgium for welding and one in Sweden operating nuclear industry. In Americas, we had actually double digit growth in order and sales. There were several larger orders.

Several of them came from defense and aerospace industry, where we have good solutions and our concept of clean air optimized with energy savings, logarithm, et cetera, has given us some success here.

Then we have the orphan APAC. One major order was secured to aerospace, a strategic and prestige order. But overall, we are not doing a very strong performance in Asia. Both orders and sales dropped.

Key activities during period has been preparation to modernize the facility in Charlotte. It will further strengthen U.S. supply chain and operational capacity. It will shorten lead times, which is one of the biggest advantage, but it will also take away over time, some tariffs and other challenges.

Continued investment in the new innovation center in Helsingborg is ongoing and we have a fully booked innovation center for the full year 2026. And we will also see order -- new products and solutions coming out of that. Testing and validation of current and next-generation products in the innovation center is ahead of new launches in that.

When we look at the financials for E&FT division, orders received for the quarter, slightly irritating, SEK 0.5 million below the same quarter last year, even at prevailing rates, currency-neutral growth, 7.9% which is purely organic in the case of this division.

Sales, SEK 686 million, left an adjusted EBITA of SEK 96.4 million, which is 14.1%. It's ahead of Q4 2024 in both -- in both SEK and in percentages. For the full year, EBITA up to SEK 362 million from SEK 352 million, as Sven mentioned, currency-neutral, that's SEK 48 million up. The margin increasing up to 13.7%. So more efficiency in the operations investments, for example, in the site in Helsingborg and in [ Markaryd ] have contributed to that.

If we move on to Process Technology then, Sven.

Yes. Process Technology, more dependent on larger projects and have had a challenging period, but the activity picked up towards the end of last quarter. We had a currency-neutral order growth of 15%.

We also had some sales increase versus Q4 '24. We have had some positive contribution from Euro-Equip that we acquired end of first quarter last year and they are integrated and doing a very good job working with the rest of the Nederman team.

The service business continued to perform strong. Customers are focused on maintaining compliance and ensuring the efficiency of existing installations. And this is, of course, a result of the lower willingness to take decision on larger investments.

If we look at textile and fiber, there's still a very low investment appetite and that goes for the global market as such. There is still overcapacity globally in spinning mills and also in weaving mills and that has a negative impact on our sales here.

However, we are growing the service content. The order intake did, however, increase slightly in Q4, meaning that we are taking market share, especially in India, where we have a very strong organization and some neighboring countries that we supply from there.

When going to foundry and smelters, Euro-Equip supported an increased order intake. It's a very good addition to Spanish-speaking area.

We had one large aluminum order in Australia and some local production in India have enabled deliveries to several smaller foundry projects there. That is something we have tried out to get inside the tariff barriers and also shorten lead times by using our strong capacity and capability in India and increase their scope by doing -- under the supervision of our German expert team, doing FS filter, which, of course, is technical mumbo-jumbo for you, but it's configurated large for hot air application like foundries and smelters.

This is something we will continue to further develop for the region to take a position in APAC.

Customized solutions, orders received increased. It was boosted by large orders in U.S. from pharmaceutical industry. And again, our service and aftermarket is developing well.

Key activities has been the investments in upgrading test centers, upgrading buildings in Germany, including solar panels and efficient heating. We have continued positive trend for service and aftermarket business and that includes our digital offerings, our continued strong demand for energy-efficient fan for textile.

This, again, the very large energy saving that you get from our newly developed high-tech fans for spinning, weaving industry. And we are soon selling our thousandth new replacement fan for that.

Financials then for Process Technology. Orders received SEK 384 million is an increase from an albeit modest SEK 368 million in Q4 last year, but nevertheless, currency-neutral growth, 15%. Sales, a stronger sales quarter for the division than the earlier quarters of the year, SEK 456 million, resulted in an EBITA of SEK 44 million, 9.6%, which is quite good for this division.

It's below a very strong Q4 last year, 11.1%. That included some -- concluding some varied -- for this division, high-margin projects then. But 9.6% is pleasing. The mix with higher service -- higher levels of service business helps that. For the full year, adjusted EBITA of SEK 144.7 million is 8.8%. It's down from 182% -- SEK 182 million, which was 11%.

We move on to Duct & Filter Technology.

Yes. Duct & Filter, the development during the quarter, we had a declining order intake. There were significantly fewer major projects, particularly in the U.S. and that has been very much linked to EV batteries, large investments that has flattened out.

We have also seen that there has been the same problem as PT for large investments -- larger investments in smelters, foundries, et cetera. And we are dependent on getting those wood industries, et cetera.

Order activity, however, increased in EMEA. Sales was impacted negatively by lower order intake early in Q3. But despite the low volumes, profit margins remained solid. If you look at Nordfab isolated, both orders received and sales decreased in the U.S., and that is a market that stands for almost 80% of division sales.

Work continued on 2 large projects in EV battery manufacturing, which generate further follow-up orders. But as mentioned earlier, it's drying up a little bit with the EV battery market in U.S.

Nordfab now is contributing to a higher efficiency and profitability with delivery reliability of 99.9% during the quarter. So we are the leading and first choice when they want to have secure deliveries, quick deliveries. And we have also now, which I will mention later, started with our hub in Texas in order to further strengthen our reach in the U.S. market.

If we go to Menardi, orders received in the U.S. increased in Q4 and that was boosted by new major orders to U.S. steel manufacturers that are facing a revival due to the tariff protection.

In EMEA, the trend remains stable. So again, the key activities have been new production warehouse facility in Thomasville is completed and it's taken into operation. Thailand and Australia have launched new stainless steel product for the food industry and Nordfab EMEA launched improved high vacuum bends and branch for easier installation.

Warehouse center established in Dallas, Texas, to strengthen Nordfab Now and Nordfab Now is our concept of being able to have next-day deliveries.

Amazon has spoiled people with very quick deliveries and we are now following that trend and we see good success in this new way of handling it. As mentioned, almost 100% delivery certainty. Nordfab EU obtained EPD certification for galvanized and stainless steel product families.

Briefly on the financials for Duct & Filter Technology. Orders received did drop 11% currency-neutral as did sales. Sales at SEK 179 million versus SEK 229 million last year. EBITA 17.4%, up from 16.5% last year.

Okay, it's down in absolute terms, but this is -- we see the efficiency from these investments we've made in the operations units around this division. So able to maintain good levels of profitability. For the full year, 19.3% is the EBITA. That's slightly down from 19.6% on obviously lower sales volumes.

Monitoring & Control Technology then, Sven.

Yes. Monitor & Control, the development during the quarter was that we had an increase in orders received and that was fueled by very strong performance by NEO Monitors in Asia. It's a division that has most success in the Asian market.

However, the weak orders received in Q3 led to slightly lower sales in Q4. We are focusing on the service business and we continue to perform well in growing that part of the business. We are also here linking our Olicem, the reporting system to our -- especially Gasmet projects and seen success when we can package these things.

Some segments, hydrogen and defense are developing well. Geographically-wise, we look at EMEA. It was boringly straight. It was same basically as Q4. First portal analysis to defense customer in Germany and Switzerland has been delivered.

And we have also the certification process of Auburn's product line ongoing for European market, which when that will be finalized, will give us access using also our Boston manufactured products for especially particle emission measurement available for the European market.

In Asia, NEO Monitors saw strong order intake. We have also come in the situation, we have more direct sales to customers. We are in more direct discussions with customers that strengthen our position.

We have also increased the presence in APAC with small offices, both in Korea and in Singapore. In the Americas was the development rather weak. Fuel orders to public sectors that is customs duty and it's emergency service, educational institution where Gasmet has had a very strong market with affordable units. However, with the financial restrictions in the public sector, we've seen a decline here.

The exception is that the steel industry as also has been seen in Menardi is continuing to upgrade the old facilities, which has led to some new opportunities and orders. The key activities has been the launch of LG III ICL.

That's a very prosaic name, only an engineer or a Ph.D. in engineering can come up with that very market-friendly name, but it's there and it's an advanced laser gas analyzer for industrial application.

The extension of Auburn's facility in Boston is completed. It was inaugurated January 21, but it was taken into use slightly earlier than that. What it means is that we have strengthened the product and logistic flow.

So we have now a test base and a more efficient operationally working in that factory as well. We have also preparations underway to improve efficiency and increase production capacity at Gasmet Finland. And we have attended some of the important shows in Asia to prove our willingness to be there and grow our market.

Financials for Monitoring & Control. SEK 189 million in order intake was an increase of 10% currency-neutral. Sales, SEK 205 million is below what was a very, very strong Q4 of 2024, SEK 241 million. Currency-neutral, that's actually down 8%.

Adjusted EBITA is SEK 37 million, which is 18%. That's an improvement in margin versus the full year average. So we see -- we think -- or we are seeing some efficiency in the operations, these investments in NEO Monitors in Auburn starting to have an effect right away.

For the full year, currency-neutral growth was 1% positive, sales, 1% negative currency-neutral. And then adjusted EBITA, SEK 129 million versus SEK 144 million in 2024. That leaves a full year margin of 16.7%.

So Sven, our outlook?

Yes. And as for the last few years and especially this year, the outlook is interesting, but the demand remains dampened in many industries. There are some areas that are better than others. We have a growing service business and a very strong digital range enable us to assert ourselves well in the current turbulent market.

Following higher activity in September, orders received continued to pick up in Q4, which if it continues, would be very positive for development in the first half of 2026. At the same time, the market is dominated by considerable uncertainty, making it difficult to forecast the broader recovery in demand.

But if it gains momentum, we are in a very good position to increase our margins. With a strong balance sheet, we are continuing to invest in operational efficiency, ongoing improvements to our offering, allowing us to continue to advance our position irrespective of the market condition.

In the world with growing insight into the damage that poor air does to people, Nederman with its leading industrial air filtration offering has a key role to play and good possibility for continued growth.

Financial calendar annual report will be released on the 17th of March this year. The interim report exactly a month later on the 17th of April for the Q1. Annual General Meeting on the 21st of April, where we expect the AGM to approve the proposed dividend of SEK 4 per share. That's unchanged versus 2024 level. Q2 report will be released on the 16th of July and the Q3 report on the 21st of October this year.

And with that, we can open up, I think, for any questions that people listening may have for us.

[Operator Instructions] The next question comes from Anna Widstrom from DNB Carnegie.

So firstly, I just want to dive into price and volume in the order book. Given that there are some tariff effects, how should we think about volume versus price in the organic growth that we see in the orders?

Let me think. That's a very good question. The currency -- the tariff -- if you think in relation to tariffs, the tariffs are not making a huge effect. The tariffs affect our costs by around SEK 5 million per quarter on approximately current -- give or take on current volume.

So on sales prices, they don't affect things massively. Then when it comes to price, we're not seeing massive price movement in the market. There's not -- it's not -- we're very careful not to get dragged into a race to the bottom.

However, we're not increasing prices significantly. So I think when you're looking at this -- or when you look at this organic or currency-neutral growth, it is growth that you're looking at there is the simple answer.

Okay. Perfect. And just to continue there on the tariffs. Have you experienced any shift in customers' willingness to pay these new set of prices? Have they sort of been more keen on evaluating local opportunities? Or have they just sort of caused investment decisions? What's your sense in your view?

This is, of course, not something that you can empirically prove. But the biggest effect during this year is that the uncertainty that has been generated is that a lot of American large project has been postponed. We are talking about several hundred million PT project that has been postponed both in U.S. and some also in Asia due to the uncertainty of what are the rules here. When it comes to other effects...

I could answer that maybe, Sven.

Yes.

When it comes to tariffs, we don't import an awful lot into the U.S. And what we do -- of course, what we do has been impacted by certain parts of what we do is being impacted by this. But in the U.S., you have seen inflation, for example, in steel prices internally anyway.

So it's not that our costs are significantly different to any competitor. And I mean, in fact, we source approaching 90% of everything we sell in the U.S. is sourced U.S. anyway. But we don't think that we're at a competitive disadvantage related to these tariffs. And like you say, the investment appetite is...

Yes. And then you have some awkward sort of more emotional feeling that some Canadian customers refuse to take the product from our U.S. factory. So we are now shipping directly from Europe and manufacturing in Europe is that it has more to do with an emotional side of it than -- and that is things that going on.

So it's more that you have an uncertain world and animosity towards some. But we also have to -- EFT has more than 80%, 85% local made in U.S. Where we have some import is on MCT when it comes from our Norwegian and Helsinki. But that's where we see that. Otherwise, we have basically in all regions manufacturing for the local market.

Okay. That's very clear. So then I just want to go into the margin development in EFT. So first, I'm a bit curious on the improvement that we can see here. How much of this is an effect from the improvements made in, for example, the Helsingborg site?

There are clear improvements made. If we talk operational improvements, then, we were talking around SEK 20 million, I think we were talking. We believe we've made operations improvements of around SEK 20 million in total in the EFT division through -- and then it's very -- it's not exactly the same volumes that are going through, but we've definitely made clear operations improvements.

We've also seen a part of the profitability boost is that we are -- we have seen good growth in product sales or a higher portion of product sales, which means we're filling our factory up even more with less. So there's more Nederman content in everything we sell. But operations clearly helping and 20 million is the -- what we believe is the full year effect for 2025.

And we will continue to see effects of that. And we are now also investing further in order to show, as mentioned, in the Charlotte factory, in-sourcing more. We will take less from our Polish factory.

But the biggest advantage here will be that we are more competitive because we have -- we are shortening the lead time. This is actions we are going to use in other areas as well.

And we are also looking at how can we utilize our capabilities in, for instance, Thailand because there are free trade agreements between Thailand, India and some other areas. So we -- you have to play this game as well.

But generally speaking -- and when you mention EFT, we'll also say that the NEO Monitors efficiency program where we have rebuilt and reorganized from a more prototype version of manufacturing to a more -- when we now have got some volumes, we have also there significant improvements, then we need some further volume.

We had also for NEO and Gasmet set up in Suzhou in China where we now can service locally the equipment rather than shipping them across the globe to Norway and so on. So that is also not saving so much of the cost saving. It's more attractiveness for the customers that we locally can handle their issues.

It was a long answer. It was slightly outside of the -- I hope that it was okay.

And just a follow-up on sort of the short-term expectations because I think you wrote something about the orders having quite a lot of solutions and service in the order book for the division. Is that then perhaps a bit more of a negative effect for margins in Q1 if we just think short term?

I -- probably not. I think that -- our assessment is the service increase will continue to -- or the service proportion will continue to be high and that will counter any shift between the products and solutions there. That's -- but also remember, we are doing very well in our solutions with our -- now I'm almost bragging, but our superior, we get better paid for our solution because this clean air optimize would include the energy save system, it includes digital surveillance. It includes the good filters locally made. We have an attractive offer.

And the reason why we get larger orders and the special orders to defense and so on is that we have proven concept. We do not have to guess that it will work. We have done it. We've been there. We've done it. We got the winners T-shirts before. So we -- and that we see especially in sensitive areas like aerospace, defense, where we have good strong performance.

Great. That's a perfect segue into my next question because for several quarters, we've noted that you mentioned large orders from defense. Do you have any sort of guesstimate on how much of the order book or sales that currently is towards the defense industry?

Matthew?

We don't have a completely accurate figure on that. So I would rather not say -- I could do some -- I will do some research on that. We will try to -- I think we will note this because it's not the first -- you're not the first person we've heard this question from.

I think in the Q1 report, we will try to have some level of estimation there. So we don't -- it's -- what we -- we should say about this defense is not in one particular region that we see. This is both Europe and the U.S., is less so in APAC.

Europe and U.S. is where we're seeing it and it's different countries. Some of the same suppliers -- customers, sorry, BAE, we followed -- we've seen them in Europe, U.S. -- and the U.S.

Northrop Grumman here, the big -- and it's very much -- you can say that it's the same. It's aerospace, which we've been a long-term supplier to Airbus, et cetera, that now also goes into military aircraft.

You have vehicles where, for instance, our RoboVent company in Detroit has been utterly dependent on the local regional automotive market, which has declined significantly, but we have exchanged that by using their American-favored technology in defense for welding applications, but also in food and other areas.

So we have exchanged somewhat the customer base. And you understand that what did they say for the company, they had SEK 130 billion in losses last year because they write off. Their investment appetite is not enormous. So we have the customer base.

Great. I have a follow-up question on this. If you've -- you're sort of answering it. But if you noted that you have sort of gained market share within this segment or having a sort of preferred supplier position? Or is the growth that you're noting is mainly from the growing of the defense industry in general?

I think the preferred supplier one, you can say something. When you -- with these customers, once you're in, you are kind of -- you are in -- it's not to say there's no competition whatsoever, but the likelihood of getting repeat orders is there. And we have seen that where like I mentioned with BAE, for example, so it is happening in more than one country or more than one project. So this signals that -- hopefully that there is some stickiness on this business going forwards.

Great. And then on the [ GST ] division, it stands out a bit on the organic order intake. Is this mainly from it having larger U.S. exposure? Or what's your view of this?

They do have a large U.S. exposure. It's around 80%, I think, U.S. And then they have -- on top of that, they have a couple of -- they were very strong in EV battery investments, which were happening late last year and actually Q1 -- sorry, late 2024 and actually in Q1 of 2025, we were receiving orders there.

The other part of the market, they do have quite a large chunk of exposure to the wood industry still, which -- a lot of which is construction-related, which isn't super hot right now, but it's obviously a very, very important industry and will continue to be so. So what we've seen in Duct & Filter like we mentioned is the efficiency in the factory is clearly, clearly better, but they are lacking volume. It cannot be denied.

As you said, the margin is positive and you mentioned that improved production and warehousing process in U.S. and Europe is a positive. Is this also a benefit from having a lower ratio of very large orders? Or should this scale from current levels very well and also that activity of significant large order comes back?

We have invested also in some more -- in the production of the -- for the larger ducting as well so that you ought not to see a decline. If we were to get more large orders, you ought not to see a decline. And in fact, with more volume, we'll have more absorption of overheads as well. So we don't -- we think this improvement is here to stay.

Yes. The improvement is definitely there to stay. The thing is, of course, we need to utilize the equipment and so on. But what you see is that we have been heavily impacted with EV batteries when we had magnificent success over a year's period when that market grew.

Now we have to do the same as we did with [indiscernible]. We need to find new attractive areas where we can supply. And we have to remember, what we are doing is that we have in -- we are efficient and we are mostly used in combustible dust environment because that is -- this is a specialty.

It is very clean interior in the duct work and that is the importance here. So that's where we have. So it's typically combustible dust in food. It is in EV batteries. It is in aluminum, wood, et cetera.

Great. Just 2 more questions from my side. The first one is on the Monitoring & Control Technology division that you mentioned and you mentioned that, I think, in the last quarter as well, that the conversion to new technologies amongst customers is taking a bit longer than expected and connecting this also to the political uncertainty.

Could you maybe expand a bit on this? And is it a type of customers that has found this trend more clearly or regions like the U.S. or something else?

Yes, it's difficult. What we see -- the main thing here and what has been talked is the decline in the public sectors. That has had a strong impact.

What we then have to do is, of course, focus a little bit more on other customers, again, like EFT has been doing and so on. If our current customer base are reluctant to do the investments, we need to work harder with some other areas.

And I think we've seen -- we are launching new products in U.S. in Auburn, where we are cooperating between NEO and Auburn and the combination here, we can do better. We are working now with the Gasmet Olicem on service and quick reporting response been quite successful in this incineration business where reporting is a very important portion of it.

So we are building out sort of packaging it to be even more attractive going slightly outside our current customer base in a controlled way.

Perfect. And then my final question is on capital expenditures, which is down year-over-year. While you mentioned some initiatives in the report and so what level of CapEx are you planning for during 2026? And is there differences in tangibles and intangibles?

For 2026, I think the rate of product development, which is the vast chunk of our intangibles, that will continue. We're not going to ease off on product development, digital or actually filters -- new filters, et cetera.

When it comes to fixed assets, what we can say on that, 2024 and 2025 were quite high years for fixed asset expenditure with a lot sort of longer-term investments in buildings in Helsingborg, the one in RoboVent, the Nordfab ducting one in the USA as well.

2026, what are we doing on that front? We're going to invest in the Charlotte plant to some extent. But I think you can expect a drop in tangible fixed asset investments, although it will still be on a -- historically, if you go back 5 years on a rather high level.

As things are now, we would expect this to drop in 2027 a little more because we don't -- we believe we've got -- we will have a footprint that is there to and can incorporate a manufacturing footprint that can handle significant growth without major further CapEx.

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

We thank you for taking your time listening on this Thursday morning and we'll be back for the Q1 report later in the year. So thank you very much, everyone.

Good morning, everyone, and welcome to Nederman Interim Report Q3 2025. If we start with some short summaries, we can say that we had good profitability, and we continue to invest in our business. We say that we had a solid performance in a very turbulent market environment. Some of the key things during Q3 is that the order intake declined, and it's mainly delays as we've been talking about for the last few quarters when it comes to larger and major investments, especially we had a very slow summer whereas it came back, the business after a long summer holiday, it seems the business came back in September in a strong mode and has continued so a little bit so far.

The stronger 2 quarter before bode well for the currency-neutral sales growth that we had, and it's been the most profitable quarter of this year despite significant negative currency and tariff effects. We have conducted further investments in product development and launched a few, and we have also focused a lot on operational efficiency. We have strengthened our leading position in industrial air filtration. And now, Matthew, some of the financials.

Exactly. If we start with orders received, as Sven mentioned, orders received did decline. These continued delays on the major investments was the main issue there. The base business was relatively strong, particularly at the end of the quarter. For the quarter 3, total order intake was SEK 1.25 billion versus SEK 1.43 -- SEK 1.44 billion, sorry, last -- same quarter last year. Currency neutral, that's a decline of 7.1%. The currency actually in itself has a 6% negative impact. It is, of course, the weakening of the U.S. dollar, particularly versus the Swedish krona that's the major impact there.

Year-to-date, orders are SEK 4.18 billion, down from SEK 4.38 billion, very nearly flat on a currency-neutral basis, minus 0.3% organically minus 3.2%. So we have got some positive impact from the newly acquired companies or the companies that we acquired since Q3 last year, that's Ollem in Denmark and Euro-Equip down in Spain.

Moving on to the sales. Currency-neutral sales and -- sales growth and organic sales growth, both in the quarter and for the year-to-date. So we're very pleased with that. Sales currency neutral, up 7.5%. The currency very much -- effect very much in line with orders around 6% negative. Organic growth, 2.2% in the quarter as well. Year-to-date, currency-neutral growth is still at 4.3%. And organically, we've grown 0.5% despite this very challenging market with the reduced -- or the longer decision times on these major capital investments.

You can see on the bar charts at the bottom, there is a clear SEK 184 million of the sales reduction is purely down to currency movements, which is significant. It has less of an effect on profitability, of course, but it's still not an insignificant effect on profitability, which if I move on, one more slide on to Slide 7 here.

Good profitability despite negative currency effects. The adjusted EBITDA in the quarter, quarter 3 was SEK 166 million. That's up SEK 5 million versus the same quarter last year. The negative currency effects were SEK 19 million in the quarter as well. So this is extremely strong.

If we look at the margin, the margin in the quarter, 11.6%, up from 11.4%. We would have been clearly over 12% had we not seen this impact from the dollar. It's a lot of this and the dollar is how it is, of course, but it's important to have that in context, particularly when you're looking at comparative periods. Earnings per share, SEK 2.27. That's up from exactly SEK 2 for the same period last year.

For the year-to-date, adjusted EBITDA SEK 468 million, margin down somewhat 10.9% now versus 12.2%. Earnings per share well behind following the weaker start to the year in terms of total profitability. Solid cash flow performance in the quarter was a clear positive. This stable cash flows despite the negative impact that we do have. When we take these larger -- particularly in Process Technology division, the larger investment projects, the larger projects within the net -- from a net amount perspective, they very often come with large down payments, and we can -- we are very often cash neutral throughout these projects or even cash positive throughout these projects. There has been a lack of those, and that does impact cash flow somewhat negatively.

So -- but despite that, we've got a good steady inflow of cash flow from operations and a clear positive free cash flow for the quarter despite our continued expenditure and investments in R&D and in our operations around the world. Cash flow from operations, SEK 123 million in quarter 3 versus SEK 181 million, which is extremely strong in quarter 3 last year. Year-to-date, SEK 198 million, so it's picking up now.

Net debt position, we have following -- in Q2, we saw an increase in net debt due to dividend payments, and we acquired Euro-Equip back at the very start of Q -- or the very end of Q1. That has come down somewhat we are nevertheless higher than we were 12 months ago. But we can see, excluding IFRS 16, the debt is reducing right now despite significant investments. If we move on and take a little look division by division, so we can start with Extraction & Filtration Technology.

Yes. Extraction & Filtration Technology and a little bit of the highlights during the quarter. As you've seen in the figures, the orders received declined after 2 very strong quarters in the beginning of the year. And it was especially during the summer months. It picked up, as mentioned before, in September, and we hope that, that will continue. Strong order intake in Q2 led to a sales increase. So we had good sales in the quarter. And we had a profitability improvement with the higher sales and also with the operational efficiency we have been talking about earlier.

If you go to EMEA, there has been a bit base -- weaker base business. And contradictory to that, a number of major orders that has been discussed earlier, they came in, in September and especially a large defense order in the region of Spain. Americas had order intake slowing down. It's been mainly in U.S., which is obviously the biggest market. It picked up again in the latter part of the quarter.

APAC, slow base business. Some of the distributor channels saw some growth and Australia, where we are investing in new personnel and new structure, we've seen a continued stable development.

Some of the key activities was participation in SCHWEISSEN & SCHNEIDEN. It's a world-leading trade for cutting coating technologies. We also participated in the AWFS trade in Las Vegas, and we were showcasing especially the Nederman Save. It's our digital system saving energy. And it's an innovation that has given us some rewards, not only rewards from different trade -- what you call it, competitions, but it's also selling very well. We have continued to invest in the innovation center at the new facility here in Helsingborg, and it's fully booked for the coming 6 months. So we've had to increase the number of employees there. And we have also continued our development product and investment in new product development, which has been launched, and there will be further launches later in this year and during the first half of next year.

Some financials for Extraction & Filtration Technology. Then order intake, as Sven mentioned, did decrease in the quarter. It picked up in September, but nevertheless, it's currency neutral down 12% versus what was a very strong quarter 3 last year. It must be pointed out. Sales -- even at prevailing rates, we actually increased sales by over SEK 20 million to SEK 655 million. Currency-neutral growth is actually 9%, which is very good. And EBITA increased to SEK 91 million versus SEK 78 million there.

This is the division that's impacted most in absolute terms by the currency impact. There's, of course, the translation effect of currencies that impact every division. But in E&FT, we actually produce and some of what we produce in Europe is sold in America. It's not a major part of our American sourcing that comes from particularly Sweden, but it does impact negatively. They were down to the tune of around SEK 7 million in the quarter, just purely on currency.

Despite that, the margins increased to 13.9% versus 12.4% last year. We see more efficiency in our operations. We've invested in our factories in Poland in -- here in Helsingborg, Robbervent in the U.S. as well. And we're definitely seeing margin improvements due to that. So overall, a very, very strong quarter for the division.

If you look year-to-date, the EBITDA has even increased there that we're up SEK 266 million versus SEK 260 million at the same point 12 months ago, again, despite significant negative currency effects. Margin is still in line and clearly, right now better for the last 3 months than it was 12 months ago. Moving on, Sven on to Process Technology division.

Yes, Process Technology, for the first, we had a few large orders. As we've said, there's a hesitancy to book the larger project, but we have had a solid base of small, midsized orders. And what's also very pleasing, we continue to have double-digit growth in our service business, and that also secures that we have a good relation with our customers. But it's a known pattern. If you're not doing your major large investment, you have to keep your existing factories up and running, and we are doing very well here. And you can see some of these things that are happening is that we -- old steel mills in the U.S. are refurbished, et cetera. So some things happening from tariff.

Orders and sales and profit were very positively impacted by Euro-Equip. It seems to be good integration in the business and where we have strengthened our position, especially in the Americas and also a little bit in South America on this recycling and also other parts of this hot air application that they are working with, and they have been a partner for Nederman for a long time and get their supply mainly from our German factory.

If we look at textile and fiber, there is definitely an overcapacity currently in spinning mill, and we see that we are taking market share. There are some of our competitors that are declining rapidly, and that is due to our new, more modern systems. So the order intake grew but from a low level.

Foundry and smelters, activity in areas such as scrap metal smelting and battery recycling are improving. All types of recycling business is interesting for the moment. And here, we have technologies, and we've had it for decades. We are using that. So the long-term outlook for metal recycling is positive. But again, we don't know when they will do the larger investment. But it's more likely that they will come with the interest in the circular economy.

Evaluation of relocation of sourcing and manufacturing of some product lines in certain markets is ongoing, and that means that we will maybe manufacture more in Asia for the Asian market. In customized solutions, there has been a slight increase in orders received, and we have executed on a major green steel order that we got in Q2.

And it's been getting attention in the market with our new more modern solution to this, and it might lead to more orders in the future or we believe it will so. The key activities, we have increased production rate for our energy-efficient [indiscernible] textile plants and amid continued order growth. And it's been an enormous interest of this little engineering success where we save a lot of energy for these big spinning mills, weaving mills, et cetera.

We have a continued development of the service business and including the digital product range, and we've seen significant success here as well, where they see possibilities to modernize the also their existing, not only on the new greenfields.

When it comes to finances for Process Technology, orders received increased currency neutral by 3.4%, a 4.6% organic growth decline. So Euro-Equip, the acquired company contributed positively there. Sales, 11.5% up versus the same period last year, currency neutral, again, Euro-Equip contributing there. Adjusted EBITDA slightly lower than the same period last year. There is some currency impact even for this division, SEK 43 million versus SEK 46 million last year is 10.2%, which is behind 11.4%, which it must be pointed out is extremely good -- was an extremely good quarter last year.

In Q3 last year, we did close out a number of projects at very good margins -- that boosted margin. 10.2% for the quarter is still clearly higher than the average than for the year-to-date. So it's heading in the right direction there. 8.5% for the year-to-date.

And you can see for the past 12 months, we're still at 9.3% EBITA margin, which is very good for this division. One of the main things that boost this is the good strong service business sales, which continue to grow. If we move on once more to Duct & Filter Technologies, Sven.

Yes. For Duct & Filter, the highlights of development, we had a decline versus last year Q3 in order intake, but it was an increase from a weaker Q2 this year. So it moves in the right direction. It was, of course, negatively impacted by overall activity and the weakening U.S. dollar. Customers' appetite to commit major investment project remains dampened. And we see that the small, midsized business is running, but we are lacking some of the large projects we have had over the last few years.

If we look at Nordfab, U.S. orders received and sales increased. We had some new orders secured for EV battery manufacturers. And in EMEA, orders received were behind. again 2024, but exceeded last quarter. So it's moving a little bit in the right direction.

And as we've said for the other division, activities increased in the last month of the quarter. APAC saw lower total orders in Q3, though Australia developed positively, and we are now moving in the right direction in Australia. Menardi's orders received in U.S. started to grow again, and we had a large framework order received as well as large orders from the steel industry. I mentioned that before that it is a bit contradictory. Old steel mills in U.S. are due to the tariffs being more profitable to upgrade and keep going here. So if it's good for the world economy, I doubt, but it's good for our business here.

We got some significant order. Key activities, the new production and warehouse facility in Thomasville is now ready for use. It will increase the capacity for large diameter pipe. It will definitely increase efficiency, and we have ordered the new 420 megawatts solar panel facility, and that will be installed on the roof of the new building. And that means that we will, when fully installed, have a facility that is nearly carbon neutral. Preparations are underway for the establishment of a central warehouse for Nordfab in Texas.

And this is a project that is based on the Nordfab now where we then can service our customers in Texas or not only Texas and the southern region significantly better than we can do. And we expect that this is up running. We will have very short lead times also in the southern region, and that will bode well for further growth in our orders.

Financials for Duct & Filter then orders received, as we mentioned, it declined versus the same period last year, but increased versus the previous quarter, 6.2% currency-neutral growth, net is negative in the quarter.

Sales, very nearly 0.6% down currency neutral. There is a currency impact with a large chunk of the sales in this division being in North America. The adjusted EBITDA of SEK 37.4 million versus SEK 44.9 million in the same quarter last year. There's, again, a negative currency effect of -- that's not insignificant. It's around -- it's around SEK 4 million on this division, too. So approximately half of the reduction is currency related.

The margin is still at 18.6%, which is -- it must be said historically speaking, rather strong albeit behind what we've seen in the most recent quarters is largely volume related. We have got good efficiency in the factory and operations here. But nevertheless, 18.6% and then 19.8% for the year-to-date. On to the fourth division, Sven, Monitoring & Control Technology.

Yes. And again, the highlight development during the quarters. The orders received declined a bit, and that's burdened primarily by the development in Americas. It very much so that some of the technology change and the new products, they are working and are received very well, but we are still lacking some larger orders here as well. We have also seen the difficulties between Canada, U.S. and also the closed down since Gasmet has a lot of public customers, universities, customs officers, police, et cetera. And their ability or willingness to invest has been difficult during the quarter.

We've seen strong sales growth in -- especially in APAC for NEO Monitors. We have also started work to strengthen business model through reviewing supply chains and optimizing production setup, and that is a work that continues.

In EMEA, we had good order intake driven by Gasmet winning a number of major orders. We have also enhanced production efficiency at NEO Monitors, and we've seen that it gives good results. It improves our margins, and it improves our supply capability, which also helps the sales when we have is -- not so long supply times, especially to Asia. Again, in November, acquired Olicem received large software orders. In APAC, we had good growth, as mentioned before, for NEO Monitors, and we have also the technology hub in Shanghai that we started a few months ago or almost the year now.

It continues to attract strong customer interest. Here, we can do service. We can do special shows. We can again show our capabilities, and that has shown good results in the market. In Americas, orders received did decline. The process of ordering and certifying Auburn's product line continue, and it will give an improved platform for Auburn's expansion in APAC and EMEA. Currently, we have halted some of the plans that was to further strengthen our position in China.

But as you have probably heard, seen more than you like that with 100%, 125% tariffs on American stuff going to China. It's been a bit difficult to grow the business currently. But we are planning for that, and we are also setting up capabilities in South Korea to expand in the region.

Key activities, the launch of Auburn PM Pulse portable test unit, launch of the Olicem data hub and final phase of expansion of Auburn's Boston facility with more streamlined manufacturing and also higher capacity and new product line.

Financials then for Monitoring & Control Technology. Order intake down versus the same quarter last year, SEK 177 million versus SEK 208 million. This division did see a pickup in the same way as E&ST. This division saw a big pickup in September versus very slow July and August. So again, the question is, will that continue? And if it does, we can be quite confident that, that will impact profitability positively.

Sales currency neutral grew by 1.3% in absolute terms down to SEK 182 million from SEK 190 million. And EBITDA, SEK 29 million versus SEK 30 million last year. It's currencies that do make a slight impact there. Margin maintained at 15.8% despite a drop in sales is quite pleasing. That's the result, not least of, for example, these improvements we've made in the production efficiency in NEO Monitors.

For the year-to-date now, the division is at 16.3% EBITDA, and that's versus 16.6% for the same period last year. So if we just take a minute or 2 on the outlook then, Sven, going forward.

Yes, the demand has been and remains dampened and the backlog is slightly lower than 12 months ago. Our base business, growing service business, strong digital range enable us to assert ourselves well in the current turbulent market. We are gaining market share.

Orders received picked up significantly in September. And if that trend continues, that would lead to positive result for development in Q4. We continue to invest in our operational efficiency and development of our product range. But again, in a world with growing insight into the damage that poor cause, Nederman has a key role to play and a strong potential for continued growth.

We've released some dates for next year. We will release the year-end report on the 12th of February 2026. The other dates there, I will not read out -- I will not bore you by reading out, but they're available for everybody. They're published in the report and also in this presentation.

But with that said, then I think we can open up if there are any listeners who have questions they would like, please go ahead.

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

Then thank you. And apparently, it's been crystal clear or crystal clear as copper sulfur as my old chemistry feature said. So thank you for taking the time listening to us, and we'll be in touch again after next quarter. Thank you.