Norbit Aktie

Good morning, and welcome to our Q1 2026 presentation. It's now been 7 years since we listed Norbit on Oslo Stock Exchange. Many of you have followed us through the whole period.?Thank you for your engagement and trust.?The one-to-one meetings during this quarterly presentation days, they adds fuel to our motivation to continue to explore more.?

Thanks. Okay, let's dive into the number.?First quarter 2026 once again demonstrate the strategy of having uncorrelated verticals.?So three verticals, having completely different market drivers.?Two out of three performed very well.?One segment is partly slower than the comparable period last year.?With this, we are able to deliver top-line growth of 40%, where segment Connectivity and PIR contributes most to the growth.

EBIT in the period ended at NOK 156 million, resulting in a EBIT margin of 21%.?So, into the segments.?In Oceans, first quarter 2026 ended with a decrease of 12% compared to Q1 2025.?The year-on-year decline is very much explained through some lower sales of sonars towards rental companies.?In Q1 2025, we had several summing up to three large orders in that sub-segment.?Per Kristian will comment more on that also later during our presentation.?

This quarter, the EBIT margin in Oceans ended at 25%.?And as you see, as I commented, the decline is based on lower Winghead sales. As you can see, Q1 2025 compared to 2024 was particularly strong on that part of our business.?Also, we have during the last weeks announced that we're now in some exclusive negotiations related to an acquisition.?It's a company that fits very much to our criterias for add-on acquisitions, where we'd like to see clear synergies.?We'd like to see that there is a relevant fit when it comes to technology and market.?We'd like the acquisition to be accretive to all the shareholders.?It's been many questions and many guesses what kind of company and who this could be.?We are working now to conclude the due diligence, and we will finalize an SPA, and when everything is ready, we will give you more flavor to this. It's a very positive add-on for NORBIT when everything is concluded.?

Connectivity, first quarter of 2026.?Connectivity had a new record quarter, NOK 211 million in revenues.?That's a 45% growth since Q1 2025.?This is very much as expected, driven by sales on our newest Connectivity product, the so-called GNSS On-Board Unit.?So this is units used in trucks for satellite-based road toll collection, where we have a strong position working with some of Europe's leading companies in that field.?The EBIT margin ended at the 27%, more or less at the same as it was the same quarter last year.

Looking into the different product lines, as you can see, standard onboard units is exactly the same as Q1 20 25.?It's a decline in tachograph enforcement modules.?We've been in a period where it has been some retrofit of tachograph units.?It's expected to get back to normal, even if maybe Q1 is regarded to be somewhat lower than what we would expect to be normal going forward.?Satellite-based tolling units, as I told you, is the main driver of the growth from NOK 17 million up to NOK 106 million in revenues.?Very important contribution.?

The final segment, Product Innovation and Realization.?Maybe to remind those of you that has not followed us that closely. In NORBIT, we focus a lot on doing tailored technology into some selected applications.?The technology we work with should be hard to create, so it motivates the engineers, and we are very cautious that when we invest money in R&D, it should be market-driven, meaning there should be a identified need and someone that would be willing to pay for us to sell these products based on this technology later on.?

When we were building NORBIT, the changes we did back in 2008 to 2012, when we acquired some factories to get the capabilities of manufacturing into our own operation, ensuring we are in control of our own destiny, we chose also to continue to do some contract manufacturing. Out of the total manufacturing capacity, a little bit, more than half of that is used to make NORBIT-branded products.?The remaining part is sold on contract manufacturing terms to other industrial clients.?R&D services and this contract manufacturing is what we report in the Product Innovation & Realization segment.?

It's been a very interesting journey in the PIR segment.?It's been a very steep growth, more than 100% from Q1 last year.?We delivered NOK 339 million in revenues and with an EBIT margin of 20% compared to the 14% the same quarter last year.?As we've said, this is very much driven by strong demand from defense and security related clients. We've had some higher degree of other industrial and automotive clients in the past.?Some of that we have chosen to scale down, free up capacity, and also optimize what we do and allocate the resources where we see that we could get or build most value for our clients.?

And as we said during the last presentation in Q1, we also opened our new expansion of the Selbu factory and have added more capacity on assembly lines.?We have announced during the quarter a new award, a NOK 150 million contract to an undisclosed European client in the defense and security sectors. This order is to be delivered -- in the quarter we are already headed well into, so second quarter of this year.?

With that said, I'd like to allow Per Kristian to give you some more flavor to the financial figures.

Thank you, Per Jorgen.?I will spend a few minutes walking you through the financial highlights of the quarter.?First quarter started out well with high activity across our business segments.?It was a solid step in the right direction in order to move us towards the target for this year's plan.?In short, revenues were up 40% year-on-year.?EBIT margin came in at 21%.?We continued to strengthen our working capital efficiency, where free cash flow conversion was 105% in the quarter, leading us to reporting a 36% pretax return on capital employed for the quarter.

Revenues came in at NOK 732.1 million in the quarter, an increase of 40% from the corresponding quarter of 2025 and 45% in constant currency as both the U.S. dollar and the euro depreciated against the Norwegian krone.?Gross margin was 53%, down from 62%, partly as a result of segment mix.?With a higher share of revenues coming off the PIR segment in this year's quarter, and also partly due to lower realized margins in Connectivity and PIR, which I will revert to more on the next page.?

EBITDA for the quarter was NOK 201.8 million, representing a margin of 28%.?This compares to NOK 162 million and a margin of 31% in the same quarter of 2025. Operating profit was NOK 155.9 million, translating into a margin of 21%.?This compares to NOK 127.4 million and a margin of 24% in the same quarter of 2025.?Net finance expenses were - NOK 12.5 million, largely explained by NOK 9.5 million in net interest expenses, while tax expenses were NOK 32.4 million.?The net income for the period ended at NOK 111 million, translating into an earnings per share of NOK [ 1.73 ].?

In the first quarter, Oceans delivered 12% revenue decline.?Foreign exchange headwinds impacted the top line.?The decline in constant currency was 5% year-over-year. Revenues declined partly due to lower sales of Winghead sonar, as first quarter 2025 was an unusually strong quarter for Winghead sales to rental companies, into which three orders totaling NOK 40 million in deliveries ended in last year's first quarter, all of which did not materialize in this year's first quarter.?When adjusting for these orders and foreign exchange, the activity and growth in the end markets outside the rental were actually quite healthy compared to the same period of last year.?The gross margin was down 1 percentage point.?Payroll expenses increased NOK 1.5 million, while operating expenses was up NOK 4.6 million on freight, sales and marketing and travel expenses, in addition to higher allocated group costs. The EBIT ended at NOK 50.8 million, down from NOK 81.4 million in the same quarter of last year.?

Connectivity reported an increase in revenues of 45% and 48% in constant currency.?The increase explained by deliveries of the GNSS On-Board Unit to Toll4Europe.?Revenues fell a tad short of expectations as some deliveries were moved into the second quarter this year, creating some timing effects on the results in this year's quarter.?Gross margin fell 5 percentage points, partly explained by product and intra-segment revenue mix, partly as a result of weaker euro against Norwegian krone, as well as price increases on certain raw material components.?Employee benefit expenses were up NOK 6.2 million on new hires and wage inflation, while operating expenses was up NOK 4 million on higher activity-related spending.

The EBIT result for the quarter was NOK 56.4 million, up from NOK 41.5 million in the first quarter of 2025.?PIR posted a significant improvement in revenues of 111% from the first quarter of 2025, primarily driven by increased demand from security and defense.?Gross margin came down 6 percentage points on higher share of high-volume manufacturing.?Payroll and operating expenses increased NOK 12.6 million on new hires.?The EBIT result was NOK 66.8 million in the quarter, up from NOK 21.8 million in the same period of last year, demonstrating strong cost discipline and scalability with our robotized manufacturing setup.?

Next, balance sheet and financial position.?Property, plant, and equipment, including right-of-use assets, increased NOK 6.4 million. It was partly driven by investments in machinery equipment, as well as a smaller expansion of the floor capacity at the Roros factory.?Intangible assets rose NOK 5.3 million, explained by R&D investments, partly offset by amortizations.?Trade receivables were down NOK 49.4 million in the quarter, following a sequential revenue decline and strong cash collections in the Oceans segment.?Inventories declined NOK 17.1 million in the quarter.?

Quarterly fluctuations in the inventory level must be expected given the anticipated growth, short delivery cycle, and what is becoming a more challenging market for some supply market for electronic components.Net interest-bearing debt stood at NOK 204.2 million at the end of March, a decrease from NOK 364.5 million at the end of 2025, following strong cash flow generation, as well as a depreciating euro, impacting the euro term loan in Norwegian krone.?Our equity ratio was 50% at the quarter end, up from 46% at the end of the fourth quarter on a positive net profit.?

In the first quarter, we continued to create additional financial flexibility by extending our revolving credit facility to July 2027.?We also added two one-year extension options to the facility.?We also entered into agreement to amend the repayment terms on our term loan in which no repayment is made if the net interest-bearing debt to EBITDA ratio is below 2x . At the end of the quarter, our ratio stood at 0.5x , down from 0.8x at the year-end.?Our available liquidity measured by cash and undrawn committed credit facilities stood at NOK 921 million.?Our financial position creates a strong platform to deliver on our capital allocation framework, including distributing dividend in May as proposed by the board of directors, as well as accelerating growth through acquisitions with the use of our balance sheet.

Lastly, cash flow for the quarter.?Cash flow from operations was NOK 212.6 million, primarily explained by an EBITDA of NOK 201.8 million.?A net decrease in working capital of NOK 52.5 million, and taxes paid of NOK 41.7 million. We invested NOK 56.4 million in the quarter, mainly explained by NOK 35.2 million in R&D investments and NOK 21.7 million in investments in machinery and equipment.?The investment level for the full year is reiterated.?Cash flow from financing activities was NOK 93.7 million in the quarter, primarily explained by repayment of debt and leases.?

I will then give the floor back to Per Jorgen, who will give you the outlook section.

Thank you, Per Kristian.?Looking into the future, we started this year with announced ambition of delivering revenues in excess of NOK 3 billion and with an improved EBIT margin compared to the 22% achieved in 2025.?We today reiterate that, based on the outlook we see today, we remain firm at that ambition.?Looking into the short-term outlook, we expect Oceans to deliver in the range between NOK 210 million and NOK 250 million in Q2.?

Oceans is the segment that has the highest degree of seasonality out of our three segments.?Usually, Q1 is the slowest.?Last year, Q1 was a very strong quarter.?Q2 is typically quite busy quarter. Q3, a little bit slower again, some holiday season, and Q4 is usually the strongest.?But we expect to deliver in the range of NOK 210 million-NOK 250 million.?

Connectivity is expected to continue to grow based on deliveries on GNSS On-Board Units.?Our guidance for today in Connectivity is a range between NOK 225 million-NOK 250 million.?The strong demand from defense and security remains in PIR, and we expect based on this and other orders to deliver between NOK 370 million and NOK 390 million in the second quarter.

That being said, we are, as earlier announced, now in a phase which is the most motivating part of being allowed to work in the management team of NORBIT.?We are framing a new 4-year ambition plan, and looking very much forward to meet you again in August, where we will lay out these 2030 ambitions.?

I think with that, we could go to the Q&A session, Per Kristian .

There are few questions on Oceans.?Can you help us understand the underlying trends in the Oceans segment??Both Q4 and Q1 came in a softer than expected despite strong comparables, with FX acting as a drag.?Q2 guidance points to minus 4% year-on-year growth, plus 2% FX adjusted.?Should we interpret this as a sign of weakening end markets share loss, or are there temporary company-specific factors driving the slowdown?

We are satisfied with the development in the underlying markets.?We think our position is still strong in the market.?As you mentioned also, of course, there is some currency effects.?Maybe the most is, as we tried to explain that in Q1 2025, three orders from rental companies came in in the same quarter.?In sum, that was around NOK 40 million.?Our intel says that the utilization of the assets from the rental companies are high.?In this business, I mean, in Oceans, we are delivering quite high-value products.?So when one or two or three large orders is in a quarter or out of a quarter, that affects the numbers.

Adding to that, if, so really this, at least from the bigger rental companies, these orders, when they come are quite large.?Predicting the timing of when these orders will arrive, even into a period of six months is quite challenging.?The purchasing patterns are also quite difficult to assess.?First half in 2025 was a significant period for buying assets from us by the rental companies.?This is slower in this first half. At the same time, as I mentioned in the presentation, if you adjust for that and foreign exchange, you see that the underlying growth actually on, in the older markets is in the range of 15%-20% compared to last year.?It's still a quite healthy market.?Yeah, that's maybe the summary of Oceans.?

Could you provide more details on the add-on acquisition??Specifically, where is the company located??Which products it adds to your portfolio, and what synergies do you expect to realize??What's been the historical margin profile?

I think when it gets to this, we're not going to disclose anything more today.?I see, there is some attempts to solve this equation.?I'm guessing which kind of company this is.?If we undisclose one more unknown, maybe it's getting possible to solve the equation.?I think we pass on that.

Yeah.?Again, maybe a question along the same line as the previous one.?The midpoint of the Q2 guidance for Oceans appears to imply mid-single-digit organic growth.?Could you elaborate on where you are seeing relative strengths and weaknesses across end markets??Are supply chain constraints currently affecting your ability to deliver on demand??Maybe the last I think we have answered the first question already.

When it comes to the supply, we experience increased price on and elevated lead times, especially on memory circuits.?I think it's fairly known.?It's nearly that they talk about it in the kindergarten now.?What we have -- I'm very satisfied that we, during the last years, has been able to build up a strategic supply chain organization, moving from being more a procurement to a strategic supply chain.?I think that's been important for us now.?We don't have many products with the challenges related to memory circuits, and we've been able to take good precautions and secure material as needed.

Could you provide an update on market traction for the deep sea sonars?

I think this market is still for us a new market.?We have delivered some initial orders.?I think it's not a lot related to these deep sea sonars in the numbers.?We don't expect that to be as high as shallow water either.?It's a different use case.?I guess with some more references and good data to provide to the clients, we will squeeze ourselves in and take over a position in that niche application as well.

Could you provide an overview of the typical average selling prices across your sonar portfolio??Bottom profilers and forward-looking sonars.?I don't think we need to go into the specifics.?What we have stated in the past is that, we have, broadly speaking, two platforms, the Winghead sonar and the WBMS platform.?The Winghead sonar is a bit more expensive than the WBMS platform.?What we have said before is that, you know, on these platforms, there are multiple variants of different sonars with different specifications tailored to different applications.?Some of these sonars are quite expensive.?Some of them are a lot cheaper. The price on our sonars could range on this platform from anything to -- from NOK 1 million to NOK 4 million.?There's a quite big spread, which is why it's difficult to comment on average selling prices.?

Okay.?A question, maybe on -- yeah, let's stick to Oceans.?Can you give some color on the FX impact on your Q2 guidance??Also, how has customer response to the new Winghead product releases been so far??How do you expect sales from this product category to develop through 2026??Yeah, let's start with that question.

If you start with FX, I could comment things related to the Winghead.

If you look on the guidance we've given now, it's in Oceans NOK 210 million to NOK 250 million.?That compares to around NOK 239 million in Q2 2025.?If you look at the basket -- generally in Oceans, we sell in euros and in dollars.?If you look at the basket of around 50/50, it's around 8% impact on currency in Q2 on the negative side.?That's reflected in the guidance that we've given. Maybe you will say something about the Winghead.

I think when it comes to the Winghead, what I want to comment is that we are also -- I mean, we introduced this WBMS X starting with the WBMS, and then also doing that on the Winghead.?When -- this week, we announced a new feature, possible for our X, so our sonar clients having X sonar, which this is a 3D point cloud viewer going in a web browser, allowing the surveyor to get time feeling of the data while collecting the data.?I think one thing is that we want to get some revenues also on these new add-on features. I think these kind of new features also is a sales enabler, going forward.?We continue to do this kind of tailoring of features to both strengthen our offering compared to competition, but also to open up for new use cases.

Okay, moving to Connectivity.?What is the gross margin on the new GNSS On-Board Unit compared to the rest of the product portfolio??Are contracts structured in a way where we're able to offset component prices if these remain a headwind ahead?

I think this is a question which is quite specific and, given that there could be, as I mean, towards other players in this market not very eager to disclose these details on commercial reasons.?It's -- I mean, you could see that the GNSS On-Board Unit represents quite a high share of the total revenues in Q1.?So giving some indication if you do the math based on that.

A question on iData.?Could you provide a [ postmortem ] on the acquisition of iData and reflect on the key lessons learned??At the time of the acquisition, iData was acquired for EUR 14.5 million , with reported revenues of EUR 5 million and EBITDA of approximately EUR 1.9 million.?While part of the consideration was settled through the issuance of around 1.2 million NORBIT shares.?

With the share currently trading at NOK 2.25, how does management evaluate the long-term value creation of this transaction in hindsight, both strategically and financially, and what aspects of the thesis provided or proved correct or incorrect?

Not sure if I got the question right, but when it comes to the acquisition of iData, this has been an important part of building Connectivity into what Connectivity is today. iData has for a very long time been a service provider to Europe's leading so-called EETS providers.?Sorry about the very specific terms, but in supporting and collecting road tolls in this GNSS-based tolling in the Hungarian market, adding to NORBIT's reliability and NORBIT's proven knowledge making us relevant in that domain.?An indirect part of this has been building the positional momentum to become a GNSS On-Board Unit provider as we are now.

Looking specifically on iData, on the lesson learned, it's that what we expected is that it takes some time to align on culture and gain momentum to be relevant for each other.?We've learned that what we expected on that part took some time.?Today we are very happy with the setup.?We're happy with the ambitions.?This part of Connectivity also brings into our discussions now on where we're heading towards 2030 with Connectivity.

Okay.?Some questions on foreign exchange.?Can you remind us of your FX hedging policy please, both on assets, contracts, cash flow, and liability side??What are your assumptions for your 2026 guidance??

So, when it comes to foreign exchange, I think it's worthwhile repeating that even though a significant part of the revenues in Connectivity and in Oceans are euro, and in particular for dollars in Oceans based, there's a lot of raw material costs that are purchased in U.S. dollars. So you need to reflect that also in terms of the strengthening of the krone, Norwegian krone that there is an offsetting balance here in which raw material prices are bought at a lower price in Norwegian krone over time converted into the loss.?Even though we have some impact on the top line, you also get you balancing piece on the raw material side.?Largely we are long euros.?And we are relatively neutral in U.S. dollars, maybe actually on tad on the short side, which is why we don't typically do short-term hedges in the currency portfolio.?We do offset the EUR exposure on the liability side in which we have a EUR 38 million term loan, which creates a balancing act both on the interest and the balance sheet.

EUR 38 million.

EUR 38 million on the FX.?With regards to assumptions for 2026 guidance, I don't think I want to be very particular on that.?We came out with the guidance to you in February.?I think it's fair to assume that the developments we've seen in the foreign exchange market over the last months is something that we could not necessarily predict.?

Okay.?Some questions on the guidance on margin.?In your 2026 guidance, you uphold your estimate that the EBIT margin will improve versus 2025.?Over the last quarters, we have seen a decline, partly because increased weight on your PIR business. Could you give some more color on what will make your EBIT margin target hold??

Again, we are reiterating our guidance for this year, targeting an EBIT margin above 22%.?We are three months reported into the year.?I think it should just note the guidance that we've given.?Also worth mentioning that the EBIT margin in PIR was 20% this quarter.?It's been a demonstration in cost discipline and scalability in the operations.?So we continue to stick with the guidance.?That's also what's been reported today.?

One question on margin to you maybe, Per Jorgen, again.?Are you worried about the pressure on margins due to higher costs going forward?

I think, we are continuously monitoring what happens in the component market.?As you said, a lot of the expenses are in foreign exchange and the same with the revenues.?We are very cautious about our cost.?We take very seriously any kind of employment, not only the new employments, but those also already done many years ago to ensure we have the right people on the bus and to ensure to have them in the right seat. I think that's how we like to continue to build the company and keep a strong culture for allocating the money where it can really help us grow and deliver in a way which is fruitful for all relevant stakeholders.

Margin question in Oceans.?Is 25%-26% margin the new normal in Oceans going forward, or do you expect margins up to 35% again??

I believe the 35% margin referring to our EBIT margin in Q1 2025. think it's difficult to assess the quality of the margins in Oceans based on one quarter alone.?What we have said in the ambition plan that we have set out is that the EBIT margin in Oceans should be in the range of 25%-30%.?Over the recent period, we've been delivering in the higher end of that guidance.?We haven't commented specifically on the margins in general today.?That is something that we will report on and maybe also give some more color on when we present our long-term ambition plans in August.?

What are the current bright spots in the Oceans portfolio??How has Ping DSP developed over the past two quarters, and what's your thoughts on it going forward?

Yeah.?It's important to remember that as we mentioned, we have three uncorrelated business units inside each business unit.?As, for example, also Oceans, there is different kind of products that has some different underlying drivers.?Ping, also the acquisition we did of Ping DSP, continuing that as Ping DSP and NORBIT company has been very good.?I think we've seen that by allowing this company to work closely with the broader NORBIT global sales and distribution platform has been good.?I think also that for this company having a strong technology complementary to the rest of the NORBIT sonar portfolio, just by being a NORBIT company in the brand recognition has also helped to support growth in that part.

Do you include FX adjustments in your longer term contracts, such as the tachograph contract with Continental and the agreement with Toll4Europe??

When it comes to -- you are referring to some of our contracts in the Connectivity segment.?These contracts are largely euro-based.?These are European clients, and I am not sure what FX adjustments would refer to, but contracts are regardless based in euros.?

If you view AUVs as a key growth opportunity going forward, Oceans segment, assuming so given the potential acquisition, which products or sensors do you feel are currently missing from your portfolio to fully capture this opportunity?

That's a nice try to get one more known in this unknowns.?But, I think we've said in the announcement on this acquisition that it's a company with technology relevant on AUVs and ROVs, so.

Good.?There was one final question on the acquisition. But I think you already said what you needed to say.?

With that, I don't think there's any more questions from the listeners.

Okay.?Thank you for your time today, and see you in August.

Good morning, and welcome to Norbit's Fourth Quarter and Full Year 2025 Presentation. As you will see, 2025 was another record year for Norbit. For a growth company, records are meant to be broken, while the focus must remain on what can be improved. It's a privilege to be part of an organization that continuously seeks improvements and aims higher. Let's dive into the numbers.

For the full year of 2025, we delivered NOK 2.5 billion in revenues, that's an increase of 43% from 2024. The profitability improved. So we had an EBIT of NOK 555 million, representing 22% EBIT margin. Earnings per share came in at NOK 6.32, that's 61% increase from the NOK 3.93 in 2024. The Executive Board of the company has proposed a dividend of NOK 5 per share. So we'll give you some more details around that in Kristian's financial presentation.

Looking into the quarter. The fourth quarter is also the best quarter in the company's history with 42% revenue increase compared to Q4 2024. Segment Connectivity and PIR contributed to the growth. EBIT ended at NOK 178.4 million. It's a 33% (sic) [ 23% ] EBIT margin.

So looking into the segments. Generally, the fourth quarter is -- the trend is that, that's the best quarter for Oceans. This year, Q4 came in slower than expected comparing to a strong Q4 2024, we see a decrease of 21% with revenues of NOK 213 million. The decline year-over-year is explained by lower sales of security solutions and sub-bottom profilers and less budget flushing during December than the year before. We could also mention that the NOK 75 million security project won in 2024, still it is not recognized any revenues on, but an export license is received.

The margins in the quarter came in at 26%, down from 37% the year before. For the full year of 2025, it's a quite good development, as you can see, where we came in with NOK 878 million in revenues. The sonar sales has a good development, especially the WBMS X sonars launched during the year has contributed to the growth.

During the quarter, we have also released some new products, the Winghead X and also our Winghead B59S. So that's a long-range sonar, enabling surveyors to do sub-bottom profiling on deep waters. So that's examples of how we continue to expand our product portfolio to also increase the addressable market.

So in Connectivity, it's also a record Q4 with NOK 190 million in revenues. That's an increase of 25%, though we did expect higher revenues. So it's been in the quarter delivered less GNSS On-Board units on our first NOK 160 million revenue contract. Part of this has slipped into Q1, and this is related to a slower ramp-up of the assembly line for the GNSS On-Board unit than planned for.

The line is now running on a satisfying level. EBIT margin in the quarter came in at 28%, slightly below the 29% in Q4. For the full year of 2025, it was 19% revenue increase up to NOK 614 million and EBIT margin came in at 27%.

And also for Connectivity, you see on the revenue mix that the main contributor to the growth is satellite-based tolling, whilst also tachograph enforcement modules contributed a bit and subscription and e-toll. The standard onboard units were shortly declining.

So during the quarter, we also received a new contract to be delivered first half this year of NOK 160 million. So it's the same scale as the contract won last year, and this continues our journey together with Toll4Europe for GNSS On-Board units.

Final vertical, Product Innovation & Realization. In this segment, we see a continued strong increase in demand from defense and security sector. And the revenues came in at NOK 408 million compared to NOK 150 million the year before. EBIT margin is at 22% compared to the 14% the year before. For the full year, the segment has delivered slightly below NOK 1.1 billion, which is a 100% increase from 2024. And EBIT margin is at 19% compared to the 10% in 2024.

And as you can see, a quite significant part of the revenues is from defense and security clients. The automotive share has declined. Also in '25 we're phasing out some product lines there. Industrial also some decline and has freed up some capacity. R&D services has increased from NOK 84 million to NOK 100 million.

We have -- during the quarter, also announced 2 significant orders towards European defense and security clients, one of NOK 120 million and NOK 170 million. Majority of these orders are scheduled to be delivered in the first quarter of 2026. We expect a continued strong demand from defense and security industry also in '26.

And that's the reason why it's been important for us during '25 to take measures to increase our capacity. We spoke about the capacity increase in our Røros factory earlier where we -- so prior -- so just before summer, installed a new SMT line said from the supplier -- Japanese supplier to be Europe's fastest SMT line. That served us well in the second half of last year.

Expansion of the Selbu factory is completed. You see the picture here where it's now also increased SMT capacity in Selbu going from 2 lines to 3. And this new third line has doubled the capacity of the 2 previous lines. This facility is built from local municipality at attractive terms. And so we rent for 8 years and have an option to buy later. So these strategic investments in capacity enables us to take advantage of the growth we see coming -- going forward.

So with that, I'll leave the floor to Per Kristian to take us through some more details in the financial figures.

Thank you, Per Jørgen. I will spend some minutes walking you through the highlights of the quarter. Revenues came in at NOK 791.1 million, that's up 42% from the corresponding period of 2024 with Connectivity and PIR contributing to the growth. Oceans reported a 21% decline in revenues.

EBITDA for the quarter was NOK 224.8 million, representing a margin of 28%, and this compares to NOK 182.4 million and a margin of 33% reported in the fourth quarter of 2024. Operating profit, NOK 178.4 million, translating into a margin of 23% and this compares to NOK 145 million and a margin of 26% in the fourth quarter of '24.

Net finance expenses were NOK 11.3 million, largely explained by NOK 8.8 million in net interest expenses. Tax expenses, NOK 35.6 million, while net income for the period was NOK 131.5 million, translating into an earnings per share of NOK 2.05.

In the fourth quarter, Oceans delivered 21% revenue decline. Revenues declined in lower sales of surveillance solutions, sub-bottom profilers and more muted end of year spending effects on sonar sales comparing this to fourth quarter of 2024. Gross margin was down 3 percentage points on depreciation of the dollar versus Norwegian krone and lower sales of sub-bottom profilers and security solutions, which are accretive to our gross margins in Oceans. Partly offsetting these effects were declining operating expenses, including payroll of NOK 4.4 million. The EBIT ended at NOK 56.2 million, down from NOK 98.7 million in the same period of last year.

Connectivity reported an increase in revenues of 25%. The increase was explained by deliveries of the GNSS On-Board unit to Toll4Europe. Expectations for the growth was, however, somewhat higher in the quarter as only half of the contract, the NOK 160 million contract for deliveries to Toll4Europe was recognized in revenues with the remaining half set to be delivered in the first quarter of this year. Gross margin fell 1 percentage point, while operating expenses, including payroll, increased NOK 6.8 million year-over-year. Depreciation and amortization rose primarily due to starting amortization on the GNSS On-Board unit project. EBIT result for the quarter was NOK 53.2 million, up from NOK 43.9 million in the fourth quarter of 2024.

PIR posted a significant improvement in revenues of 174% from the fourth quarter of '24, primarily driven by increased demand from the defense and security sector. Gross margin came down 7 percentage points on higher share of high-volume manufacturing. Payroll and operating expenses increased NOK 15.7 million on new hires, wage inflation and activity-related costs. The EBIT result was NOK 88.1 million, up from NOK 20.4 million in the same period of '24, demonstrating strong cost discipline and scalability of the robotized production setup we have.

Next, balance sheet and financial position. Property, plant and equipment, including right-of-use assets increased NOK 59.8 million in the quarter. This was primarily driven by capitalization of lease commitments of the Selbu factory expansion, as Per Jørgen mentioned, which was completed in December. The remaining increase was driven by CapEx investments for machinery equipment for continued growth. Intangible assets rose NOK 19.1 million, explained by R&D investments, partly offset by amortizations.

Trade receivables were down NOK 25.3 million in the quarter despite a significant sequential increase in revenues, benefiting from attractive terms of our nonrecourse receivable financing. Inventories increased NOK 41.2 million in the quarter, and inventories rose sequentially due to sourcing of components to prepare for continued high activity in the defense and security sector in PIR. Net interest-bearing debt stood at NOK 364.5 million at the end of December, an increase from NOK 320.5 million at the end of the previous quarter, primarily explained by our dividend payment. Our equity ratio was 46% at quarter end, down from 50% at the end of the third quarter on payment of, as mentioned, the NOK 191.4 million dividend announced in November.

Improving working capital efficiency has been a key focus area for us. And in 2025, we made further steps despite having to increase the inventories by close to NOK 300 million due to an activity increase within defense and security in PIR and purchasing components for the GNSS On-Board unit project, which was not fully delivered last year.

As for the fourth quarter, our net working capital ended at 20% of last 12 months revenues. This compares to 23% heading into '25. The main drivers have been continued high focus on increasing inventory turnover through improved inventory management and reducing days of sales outstanding. I'm impressed by our colleagues who have been able to more than double the revenues of Norbit since 2022 with only 25% increase in the nominal working capital level needed to deliver on that growth.

Heading into 2026, we expect that working capital will show fluctuations from quarter-to-quarter, given the combination of anticipated growth, long lead times on certain components and short delivery cycles. This is particularly evident for PIR towards the defense and security sector where the delivery cycle is quite short.

In the fourth quarter, we continued to strengthen our liquidity position with NOK 150 million through an increase in the multicurrency overdraft facility so that our available liquidity as measured in cash and undrawn credit facilities stood at NOK 785 million as per year-end. In the fourth quarter, net interest-bearing debt to EBITDA ended at 0.8x, a marginal increase from prior quarter. And our balance sheet continues to remain rock solid and provides for a strong financial platform to deliver on our capital allocation framework, allowing us to invest, pursue strategic acquisitions as well as distribute dividends to our shareholders.

On that note, due to our strong balance sheet, our financial position and solid outlook, the Board resolved yesterday to propose a dividend of NOK 5 per share equal to 79% of the net profit for the year. We are currently below our long-term target range for the financial policy, and thus, the dividend reflects the principle of returning excess cash to the shareholders by adjusting our leverage position to the lower end of the range, still providing ample room for growth, both structurally and organically.

Yesterday, the Board also made certain smaller adjustments to the dividend policy in which the amended policy is to pay at least 30% of the net profit after tax with the intention to pay out any potential excess capital as evidenced in the -- for the financial year '25. The Board also intends to propose to the general meeting an authorization to pay additional dividends in the second half of '25, subject to considerations made under the dividend policy.

Lastly, cash flow for the quarter. Cash flow from operations was NOK 215.1 million, explained by an EBITDA of NOK 224.8 million, net decrease in the working capital of NOK 9.3 million, taxes paid of NOK 7.2 million and NOK 11.3 million in net finance expenses.

We invested NOK 70 million in the quarter, explained by NOK 39.5 million in R&D investments and NOK 27.5 million in investments in machinery and equipment. Investments for the full year were in line with the updated forecast provided in August. For '26, we expect that the R&D investment level will be around NOK 110 million and investments in fixed assets are expected to be around the same level. Investments in R&D are expected to decline primarily due to the GNSS On-Board unit project completing, while investments in fixed assets are driven by capacity additions to continue to fuel the growth.

Cash outflow from financing activities was NOK 130.4 million in the quarter, primarily explained by NOK 191.4 million dividend paid, partly offset by an increase in debt in the quarter.

With that, I'll give the floor back to Per Jørgen, who will give you the outlook.

Thank you, Kristian. So looking into 2026, we see that we once again are on a trajectory where we might be able to reach our 4-year ambition plan 1 year early. So in February '24, we laid out a target to deliver revenues above NOK 2.75 billion in 2027. So our outlook for 2026 has will support that we have an ambition to deliver more than NOK 3 billion in revenues in 2026. And our ambition is to do that with margins larger than and better than what we delivered in 2025, which came in at 22%.

In addition to this, we continue to explore value-accretive acquisitions to add on to this, who is a purely organic revenue target. So the more short-term outlook. First quarter is generally a slow quarter in Oceans, 2026 looks as it's a good start. And our target now is that we will deliver in the range between NOK 210 million and NOK 230 million in the first quarter.

In Connectivity, we expect to deliver revenues in the range between NOK 215 million and NOK 240 million. This growth is driven by GNSS On-Board unit deliveries. In PIR, we have a slightly broader range. So we expect to generate revenues in the range between NOK 270 million and NOK 390 million in the quarter. The orders are secured for the upper part of the range. The reason for the broad range is that there is some uncertainty on some orders sliding into next quarter due to timing effects related to qualification of some key components. The strong outlook in the first quarter is, as mentioned before, driven by deliveries to defense and security sector.

So with that, I think we can look into the Q&A part.

We have one question on working capital. So net working capital as a percentage of revenue has improved significantly. First, how much of this improvement would you consider structural versus driven by the current growth momentum?

And second, should we expect the ratio to behave if revenue growth were to normalize? And what trend are you seeing in the underlying drivers such as DSO and inventory days?

So with respect to the first question, I would say that the improvement is much more driven operationally, financially rather than structural or through the growth momentum itself. Optimizing working capital is always a puzzle that needs to be resolved and bits and pieces needs to come into place. So it's not driven by the growth itself, and it's neither structural.

And second -- with respect to the second question, if growth were to normalize, it depends a little bit on what the definition of normalizes. But if we didn't grow the business, we wouldn't need the significant inventory positions we have also. So in that respect, you can assume that actually the working capital efficiency should improve from where we are today.

A question for you, Per Jørgen. It's here. Yes. So I appreciate it's been a short time since the release, but if you have any color on how the response among customers on the Winghead X has been so far, that will be helpful. And also if you could share some comments on your expectation for this product given the success of the WBMS through 2025.

Yes. So we have some -- we have delivered some Winghead X. We have some purchase orders at our desk for the Winghead X. So we expect Winghead X to be a good contributor for our revenues also in 2026. That said, the Winghead is addressing a more high-end market than the WBMS. So the WBMS part, the other sonars is expected to continue to be a larger part of the total sales than the Winghead. But it looks like the market also in the high end finds it attractive to buy a platform where the later can kick off and get the software functionality to get additional functionality as their need evolves.

Okay. More questions here on Oceans. In Oceans, you called out that the year-on-year decline reflects lower sales of security solutions, sub-bottom profilers and more muted end of year spending effects. What do you see as the key driver of the lower sales on security solutions?

Yes, that's a good question. And I mean the need for more security solutions under water is still there. And we see that there is mature opportunities. And as I've heard myself say many, many times, it takes more time than we expect. So as simple as that.

On the Winghead X and B59S, can you help us understand what pockets of the market you are now more competitive in? Is this primarily deepwater? And also you state increasing the addressable market for ocean exploration. Is this primarily commercial applications? Or do you see scope for meaningful applications within defense as well?

Yes. So for the B59S, it's exactly as the one asking the question indicates that this is addressing more deepwater solutions. Norbit has primarily been focused on shallow water applications. And now with this B59S being our first deepwater sonar, it enables surveying capacity also on much deeper water.

And on the Winghead X, that's addressing a more high-end professional inspection market than the WBMS. So it's -- the resolution of the images you get is higher. And this is mainly due to a degree of opening angle, whereas on the WBMS has 1 degree.

Let's continue with Oceans. Also in Oceans, you state export license received for the NOK 75 million security project, so no revenues recognized so far. Should we start to see this recognized in 2026? If yes, how will the phasing look throughout the year?

Well, we haven't communicated anything on timing with respect to that contract. And it also remains a level of uncertainty on that. So -- what we can say is that in the guiding that we have provided for 2026, the target of more than NOK 3 billion in revenues, we have not included any revenue recognition on this project. So that remains an upside in terms of the numbers we have provided.

With respect to Oceans, how should we think about Oceans in 2026? Was the softer Q4 revenue due to a structural demand shift or mainly a timing issue related to weaker year-end spending?

Yes. So I think if you look on the full year, it's still good growth on the sonar sales. It was somewhat less than we were planning for on the security and on sub-bottom profiling, and the year-end spending in December were less than we expected based on experience from previous years. Seeing the activity as it is now and our planning for next year, Oceans and Connectivity are expected to be contributing to the growth in addition to PIR. So yes.

And I don't think we see any structural shifts in the demand in Oceans. Sonar sales will fluctuate quarter-to-quarter. And if you look on the year as a whole in '25, sonar sales were up close to 20%. So -- and it's been a good start to 2026 as well.

Lastly, on Oceans, how has Winghead X been received in terms of orders, revenues year-to-date compared to the WBMS X in the same period in 2025?

Yes. So I think it's still in early days. As I said, we have done some deliveries. We have some orders that we expect to see more of this going forward. So in the high-end market, the sell-in process is a little bit more time consuming than it is in the WBMS part. So yes, so not much more to add to that as of today.

When should we expect to see a clear shift in Ocean sales mix towards in [ MR ] and security projects?

Well, first of all, security projects and sub-bottom profiler will also fluctuate quarter-to-quarter. But we also expect that both of these will have a meaningful contribution to the growth in '26 within Oceans. And it's a bit challenging to predict how this will evolve from quarter-to-quarter. But in the sub-bottom profiler part, we're at least seeing a significant activity increase in Q1 compared to Q4. So I think we're also there into a reasonably good start for 2026. Okay.

Let's jump to PIR. How diversified is your client base within PIR? Do you expect your customer base to broaden going forward?

That's a good question. So during 2025, on some few clients, we were able to scale a lot. And that has, of course, then increased the customer concentration in the segment. But what we see today is that it's a broad range of clients being eager to have a partner that could be a scaling partner. So the demand for technology made in Europe towards defense and security sector is very strong and increasing. So we expect to broaden the client base in PIR in that vertical going forward.

In PIR, you haven't announced any large contracts year-to-date. How should we think about visibility for the full year 2026?

Well, I think we also stated previously that the time from us receiving a contract or an order in PIR within defense & security to the time that we need to deliver on the contract has narrowed quite substantially. And we're experiencing cases now where we receive a contract -- as evidenced actually in December when we received a contract where we had to deliver in first quarter.

So lead time is very short, and we need to build preparedness together with the customers in order to buffer up the stock in close collaboration with them to make sure that we are ready to deliver in a very short time window. And that is also why we're building capacity at the factories. So that capacity itself is not the bottleneck. So while we don't have much visibility in the PIR segment in the second half when it comes to defense and security, our expectation is that, as we have presented today is that we will experience strong growth in '26 compared to '25.

In PIR, could you give an indication of the growth pace by customers in defense and security? How concentrated is the growth broad-based or on 1 or 2 large clients?

I think as I indicated, the customer concentration has been quite high in 2025. So the growth is on few European clients. And going forward, we expect to continue to be a scaling partner for this, but it's a lot of interesting leads we're working on, that we expect we should be able to broaden the number of clients also in that space.

Okay. Lastly, on PIR, how should we think about margins evolving over '26 as you work your way through the capacity expansions?

Well, we haven't necessarily given guidance on margins in the segment and the different segments. But we have invested, as you rightly point out, capacity -- invested in capacity expansion through 2026, and we will continue to invest in -- so in '25, and we'll continue to invest in 2026. I will not comment specifically on the margins, but we have no intention of reducing the margins.

So for us, we need to make sure that we have high utilization, and that's been a key factor driving the margins in '25. And if we continue to uphold good pace on the revenue growth in PIR, I'm sure also that, that will affect -- have an effect on the margins.

Moving on to Connectivity. When you look at the market share of Toll4Europe, how should we think the NOK 160 million contract for H1 deliveries fit into the total addressable base of Toll4Europe?

Yes. So I think I don't want to comment on the total base of the client. I guess what we could say, I see that's a question also there, how much of the first NOK 160 million GNSS On-Board in contract has been delivered so far. So I think we've stated that approximately half of that was delivered in Q4 and half sliding into 2026. So yes.

In your 2026 revenue target, where do you expect the strongest growth to come from? And what segment mix do you anticipate?

So I think we haven't given any split on that, but we expect all segments to be contributors to the growth in 2026.

Let's see here. Can you say something about the time line for revenues from other opportunities within Connectivity? What are your ambitions here?

Not sure I got the question right.

Can you say something about the time line for revenue from other opportunities within Connectivity? What are your ambitions here? So trying to broadening the...

Yes. So we're continuously working on broadening product offering. And both product offering and broadening customer base. And what we see is that in 2026, the growth will primarily be on products we already know. But going further from that, I think we would expect to see meaningful contribution also from products not existing in the product range as of today.

On supply chain constraints, are you building a buffer of own inventory? And are you seeing customers accelerating orders to secure products? Or are they pushing it out in time due to price hikes on, for example, memory chips.

That's a very good question. And I think this price hikes on memory, for instance, coming from Samsung shifting the allocation of their capacity to make more memory fitting for AI engines has generated some waves. And in our supply chain, we have 2 expressions we use. So one is security stock and one other is opportunity stock. And I think that's on our executive level now and in dialogue with clients. We take some measures what kind of levels should we be at and what should we secure and what should we wait with. So this is continuously monitored and actions are being taken.

Yes. But we're not seeing any acceleration of the revenues due to the situation on certain components.

This final question is maybe a little bit more in line with what you already answered. But you mentioned other market opportunities within Connectivity in the report. Are you mainly targeting the transport sector? Or are there opportunities elsewhere?

Yes. So I think when we -- so already a while ago, when we changed the name of the segment from ITS to Connectivity, that was for a reason for ITS, Intelligent Traffic Systems and going to Connectivity, we have broader ambitions. And I think what we really want to do is to utilize our core competence in microwave communication, RF technology to contribute solving challenges also in that domain.

And we are in dialogue with several clients having needs for equipment where we can contribute. Creating something new that could be this expansion of the Connectivity segment. And also what we're doing now commercially is that we're lifting up some of the references that has been a little bit hidden for some years. I think I mentioned that before, maritime military antenna systems that we've been doing, approaching the market together with another Norwegian company, Comrod.

We see increased interest in Europe for these kind of technologies. And also with -- towards the clients, we're showing some references where Norbit in the past has developed some radar equipment. We have some radar stuff today we deliver also and some equipment towards air navigation systems. So using these as references, building on the momentum that will be the broadening of Connectivity on a longer perspective. But as said, in 2026, the revenue generators are the products you already know.

I think that was the final question.

Good. So then thank you all for once again taking the time.

Good morning, and welcome to the presentation of NORBIT's Third Quarter Results. It's a privilege to be allowed to present the result of what our dedicated colleagues has achieved. As you will see, after the first 9 months of the year, we're delivering revenues at par with what we did for the full year last year and with nearly a doubling of the result. For us, this is encouraging and helps us to go to work every day and ensure that we deliver on the expectations our customers has.

So then let's dive into the numbers. As you see, Q3, as always, is somewhat weaker than the other quarters. Still, Q3 2024 is the best Q3 ever for NORBIT. So we came in with revenues on NOK 505 million, and -- which is a 36% increase from last year with a margin of 15%, giving NOK 75 million in EBIT.

And as I already said, for the first 9 months of the year, we are delivering at par of what we did for the full year last year, NOK 1.7 billion, up 43%. It's growth in all 3 business segments. with an EBIT of NOK 377 million, which is 92% higher than what we had for the same period last year. That represents a margin of 22%.

Some other events, we've announced some new contracts in the PIR segment towards the Defense and Security sector, it's NOK 120 million contract. And I think in that announcement, we also said that we have had accumulated smaller orders, which also summed up to NOK 100 million.

Yesterday, our eminent Board of Directors resolved extra -- decided to resolve an extraordinary dividend of NOK 3 per share.

So looking into the different segments, Oceans has some seasonality. It's some vacation season in Q3, still nearly NOK 200 million, NOK 192 million in revenues. That represents an increase of 22% from last year. EBIT margin of 21% compared to 19%.

For the first 9 months, we've delivered NOK 665 million in revenues. That's an increase of 40% and accumulated margin of 32%, which is a good increase from the 25% we had for the corresponding period the year before.

And as you can see, having from Q3 2022 in NORBIT, quarterly fluctuation is expected. Some of what we deliver in the Ocean segment is high-priced, high-value products. Some units in or out of a quarter, some will affect the numbers in addition to the underlying seasonality.

Diving into what's behind these numbers. So this is year-to-date figures for the first 9 months '23, first 9 months '24 and '25, showing that the Winghead sales is somewhat higher this year than it was last year, NOK 120 million and a very good growth in other sonars. And this is very much driven by increased sales of the iWBMS X, which we launched this year. I could remind you what this is.

That's a sonar, which is fully equipped with all thinkable hardware features for such a sonar, and you can buy software features to upgrade according to your need. So it looks like our clients really appreciate this offering that they could buy a sonar, which enables them later to buy a software upgrade for additional functionality. So that's been good.

Yes, sub-bottom profilers, NOK 66 million -- and yes, still on the security side, which we remain very positive for in the long run, it's lower than our ambitions, but ambition remains as high as it has been.

Then the Connectivity segment saw its revenues at par with Q3 last year, NOK 108 million compared to NOK 111 million. The decline is due to some rescheduling of on-board units. And so, it's some of the revenues that we were aiming to have in Q3 that has been slipping into Q4.

For the first 9 months, we have accumulated 70% increase of NOK 423 million, and I'll show you the split afterwards. And that's a margin of 27% for the accumulated year-to-date numbers.

So -- and as you see on the revenue split, the on-board units, it's the toll tags for mainly passenger cars, it's somewhat lower than it was last year, but it's good growth on the enforcement modules for tachographs and the rest also a little bit growth or stable.

So some status on the product, where we were awarded a contract April last year for making a complete new satellite-based tolling unit for trucks, so-called 4G-based GNSS on-board units. It's NOK 160 million contract. And this contract is for supply of units to the European leader in this electronic toll collection system, so toll for Europe. So volume production started in October.

So it's then 18 months from being awarded this contract running through the R&D phase, industrialization assembly of a full robotic line and scaling up that. So I think it's a good job done from our colleagues. Ambition was to do it even in a shorter period, but it's satisfying to see that finally, we are running a high-volume assembly line in our Roros factory.

This product is very much in line with our strategy to broaden both customer base and product offering. And we are eager to see how this evolves as the existing fleet of GNSS on-board units in European trucks is very much based on 2G GSM. And as we see European countries are planning to phase out the 2G GSM network, we see that there is a need of replacement of the existing fleet in addition to the underlying growth in the market.

Segment Product Innovation and Realization, and also, I'd like to remind you, so NORBIT is a very much vertically integrated company, where we've believed in for many, many years that making the products doing the production also in Europe and in Norway in addition to designing the products is a good thing to do.

And we've seen that some spare capacity in our factories. We've decided to offer on contract manufacturing terms to other technology companies, industrial technology companies. And we're for a selection of such clients, we are acting as a scaling industrial partner.

And it's very satisfying to see that we have really been able to scale. Some of the investments we've done has really helped us. So we announced earlier this year that from April, we installed a new line for surface mounting of electronic components in our Roros factory. This is said to be Europe's fastest SMT line, and that's good. It's been running.

And we have increased from NOK 114 million in revenues in Q3 '24, up to NOK 224 million. So it's a high increase. and a good margin improvement, showing the scalability in this business with operational leverage and a lot of the indirect resources needed to run this is very much shared between the different segments.

So for the first 9 months of 2025, we have accumulated revenues of nearly NOK 680 million, which is 72% increase from the same period last year. It's an EBIT margin of 18%, which is double of the 9% we had for the first 9 months in 2024.

And as you can see from this split, the defense and security sector is really the reason why this is growing. And as you can see also, so some of the clients in the automotive industry and some industrial, we have sort of not fully phased out, but we have not been very active getting new. And also, I think I've said it before also that some clients we've been helping to move to other factories to free up capacity for this new scaling partners.

And capacity, I mentioned and reminded you of this investment of new SMT line in our Roros factory. We are also increasing the floor space of our Selbu factory. very good cooperation with the local municipality. So they are responsible for project execution and financing of this expansion, which is coupled to our existing plant.

Completion year-end and a new SMT line is ordered and will be installed in this facility in January. So -- and this is very good. We see that it helps us even increasing capacity more. And we have an option to acquire ownership of the facility if we decide to do so.

So with that, I'll leave the floor for Per Kristian to give you some more details of the financial figures.

Thank you, Per Jørgen. I will spend some minutes walking you through the highlights of the quarter. Revenues came in at NOK 505.4 million, an increase of 36% from the corresponding quarter of 2024, with Oceans and PIR contributing to the growth. Our Connectivity reported a 3% decline in revenues on a NOK 15 million postponement of on-board units to the fourth quarter.

EBITDA for the quarter was NOK 114.7 million, representing a margin of 23%. This compares to NOK 86.6 million and the same margin in the third quarter of 2024.

Operating profit was NOK 75.4 million, translating into a margin of 15% and this compares to NOK 53.7 million and a margin of 14% in the third quarter of last year.

Net finance expenses were negative NOK 6.5 million, largely explained by NOK 8 million in net interest expenses, partly offset by foreign exchange gains.

Tax expenses, NOK 17.2 million, while net income for the period was NOK 51.8 million, translating into an earnings per share of NOK 0.81.

In the third quarter, Oceans delivered 22% revenue growth. Sonar sales were strong, particularly in the Americas region. We continue to see strong sales of the new WBMS X sonar platform that was launched earlier this year. On the negative side, sales in security and for sub-bottom profilers were slow in the third quarter.

Oceans' gross margin declined 4 percentage points year-over-year due to lower sales of rental, training and consultancy services as well as obsolescence provisions. Payroll and operating expenses increased NOK 7.2 million on new hires, wage inflation and use of external consultants. In total, the EBIT result came in at NOK 41.3 million, up from NOK 30.7 million in the same period of last year.

Connectivity, as mentioned, delivered a 3% revenue decrease. And compared to the last year, revenues declined primarily due to lower volumes of on-board units sold. And again, mentioned that deliveries worth NOK 15 million were postponed to the fourth quarter. The decline was partly offset by an increase in volumes sold of enforcement modules for satellite-based tolling units. The gross margin fell 4 percentage points on product mix and scrapping costs.

Operating expenses, including payroll, increased NOK 3 million year-over-year, and the EBIT result for the quarter came in at NOK 16.6 million, down from NOK 28.1 million in the third quarter of 2024.

PIR posted a significant improvement in revenues, close to a doubling from the third quarter of last year, primarily driven by increasing demand from the defense clients in the defense and security sector.

Gross margin came down 1 percentage point, while payroll and operating expenses increased NOK 13.6 million on new hires, wage inflation and activity-related costs. The EBIT result for the quarter was NOK 40.5 million in the quarter, up from NOK 12.2 million in the same period of last year.

Turning to the balance sheet. Property, plant and equipment, including right-of-use assets increased NOK 36.5 million in the quarter, and this is primarily due to investments in capacity expansion on surface mounting machinery.

Intangible assets rose approximately NOK 9 million, explained by our R&D investments, while trade receivables were down NOK 16.5 million, explained by the sequential revenue decline from the second quarter.

Inventories rose NOK 92.7 million, and this is explained by sourcing of components to prepare for the significant activity increase we expect in fourth quarter, including delivery of the GNSS on-board unit and defense and security-related products within the PIR segment, hence, referring to our outlook section, which we will come back to in a few minutes.

Net interest-bearing debt stood at NOK 320.5 million at the end of August, an increase from NOK 274 million at the end of the previous quarter. Our equity ratio was 50%, which is on par of what we reported the last quarter.

We continue to strengthen our liquidity position in the quarter by increasing our multicurrency overdraft facility by NOK 150 million subsequent to [ 30.09 ] so that the pro forma liquidity stood at close to NOK 830 million. Our balance sheet continues to remain rock solid with a net interest-bearing debt-to-EBITDA ratio of 0.7x at the end of the third quarter.

Due to our strong balance sheet, financial position and the solid outlook, the Board has resolved to distribute an extraordinary cash dividend of NOK 3 per share for the financial year 2024.

Considering we are currently below the long-term target range of the financial policy, the dividend distribution is also very much in line with the policy of returning excess cash to the shareholders. And the dividend will be paid out from NORBIT in approximately 2 weeks from now.

Lastly, cash flow for the quarter. Cash flow from operations was NOK 1.9 million negative, explained by an EBITDA of NOK 114.7 million, a net increase in working capital of NOK 95.8 million, taxes paid of NOK 14.4 million and NOK 6.5 million in net finance expenses.

We invested NOK 40.8 million in the quarter, explained by approximately NOK 30 million in R&D investments and NOK 11 million in machinery and equipment. The R&D investment level for 2025 is still expected to be between NOK 130 million to NOK 140 million, and there is no changes to the machinery and equipment investment guidance of around NOK 120 million for the full year. Cash inflow from financing activities was NOK 11.9 million in the quarter.

So with that, that summarizes the financial section, and I will give the floor back to Per Jørgen for the outlook part of the presentation.

Thank you, Per Kristian. So starting this year, we had a target of delivering NOK 2.2 billion to NOK 2.3 billion in revenues. When we presented the first half year results, we raised that target to NOK 2.5 billion to NOK 2.6 billion. This remains our target for the full year. So we expect revenues in that range. And with that, we expect an EBIT margin between 24% and 25% for the full year. So as you see, Q4, as always, is a hectical quarter, and this is expected also for 2025.

In the different segments, the 3 last months is typically the strongest in Oceans. Some of this is related to what we would call in "budget flushing". That's not very easy to predict, but it really happens. So we're preparing for that.

In Connectivity, revenues is expected to increase sharply quarter-over-quarter, and this is driven by delivery of the GNSS OBU, which started in October. And we expect revenues in the range of NOK 200 million to NOK 240 million for this.

And in the PIR segment, we expect to generate new records. The aim is to deliver between NOK 390 million and NOK 420 million in the third -- fourth quarter. And this is driven by the same sector, as I've explained earlier, which is very strong also in our outlook.

So that concludes our presentation. And if there is any questions, we're happy to answer them.

So we have a few questions. One question from Olav at Pareto. Could you give some color on Q4 Connectivity guidance? And if this reflects some reshuffling of the GNSS on-board unit into first quarter 2026. Yes, let's take that. Yes.

So what we can say is that, as I mentioned, we started this project 18 months ago and the design phase until reaching approval took a couple of months longer time than expected, meaning that start of ramp-up of production also was a little bit postponed. So it's -- it's a good question. And it's probably easiest to say that some of the revenues in this contract is reflected in the guidance to be expected in Q1 instead of full in Q4. So it's a little bit annoying, but this is what happens when you have some delays.

And maybe also add to that, when NORBIT are looking for new projects, we'd like to find things, which is very hard to design. Our engineers should struggle. So -- and so we did. We did struggle, but we made it. And why is this positive? It means it's complicated to make this and it gives some threshold for others to come easily afterwards. So I just want to add that.

Same question from -- a new question from Olav. The sonar sales look very strong this quarter. Could you give some color on which customer groups and use cases and what is driving this? And when we are speaking about Oceans, lastly, sub-bottom profilers, it has softer this quarter. Can you give some color on this product for Q4?

I think we don't have any split for the different subsegments in the guidance. But I think what we've seen is that the product WBMS X has performed very well. And as with other sonars, it has a wide range of different use cases. So I think this is what was in the Q3 also that it's a wide spread, some for ordinary surveying purposes, sea floor mapping. But we still see a very strong demand from different kind of autonomous vessels, both surface and subsurface vessels.

Good. Question from [indiscernible] at Arctic. What was the reason for the postponement of the NOK 15 million OBU order?

Yes. So this is partly late incoming material and partly some shuffling on capacity.

How much of the NOK 160 million GNSS on-board unit contract has been delivered as of now?

I don't think we've given any figures on that. And I think we will keep that -- of commercial reasons, we'd like to keep that a little bit low.

What is the most important drivers of the GNSS on-board unit product? In the medium term, is the 2G switch of the most important driver?

I think the underlying market need is good. But in the medium term, this phase out of the 2G is expected really to generate a strong demand. So I mean, the Switzerland has already turned off their 2G GSM. The major German network providers have announced that in mid-2028, they will turn off. And so, I think for the coming years, this is an important driver.

It creates a sort of a replacement need for the 2G units that is in the market.

Yes.

Could you share any updates on sales lead for the GuardPoint product? Progress seems to be -- been slower than anticipated.

Yes. So I think it remains as we've said in the past that it's a lot of sales lead. So the conclusions on the projects is not materializing as soon as expected. Our judgment is that this is the reason. We cannot see that the projects we are aiming for is lost, but there is some competitors gaining them. So we still think we are well positioned with relevant technology. So -- but yes, so we remain safe under pressure and continue to work hard every day to get these orders.

And lastly, any comments regarding the development of Innomar in the quarter?

Yes. So the revenues is somewhat weaker in the quarter than we expected. And looking into this, we expect improvement of that again looking into next year. So what we see is that the proactive activities in the market generates more interest. So the NORBIT global sales and market platform now carries the sub-bottom profiler offering from our daughter company, Innomar. So we're kind of we feel that this will increase and be a good addition to our continued growth also going forward.

Question on the dividend. So I will combine this, I think. Does the additional dividend suggest no M&A in focus? And did you consider any potential acquisitions before deciding on the payout? Or was the dividend your first priority?

So I'd like to remind you that we have a financial policy of having a [ NIBD-to-EBITDA ratio between 1x and 2.5x ]. And as we reported in this quarter, we're at 0.7x, which means that we are below the policy. And for us also going into a record fourth quarter, as we see it currently, there is room for both. There is room to pay out the dividend, and there's also room to explore M&A.

And as always, each individual M&A case has to be assessed. The capital structure of that investment has to be decided solely on the investment size itself. So it means that no M&A is not off the table. It's actually a very high topic on the strategic agenda. But to summarize, again, our balance sheet allows us to do both. So it's not either/or.

So a question regarding PIR. How is the visibility in PIR entering 2026?

Yes. So I think as we've spoken about in the past also with several of our clients, we're working very closely. We're taking measures to secure material and secure scalability so we can act as orders materializes.

I think if you look on the announcements we've done in the past and the lead time from we announce until we say we should deliver, which is quite narrow. That's an indicator of what you could say is the visibility if you look from an order backlog perspective.

But the visibility for us to make decisions and to be prepared, having -- sharing and working closely with these clients is, for us, satisfying. But it remains that we need to -- we need to work together to prepare so that the time from announcing an order until we deliver is agile way of running NORBIT.

What is the potential for onboarding new customers in the PIR segment? Or are you expecting existing customers to demand all of the production capacity in the short term?

So for us, we are working to onboard new customers, but we're cherry picking when looking what kind of customers that fits into this. It needs to be some customers, where they see the advantage of having NORBIT as a scaling partner rather than just an alternative for any other EMS. And with the capacity buildup we've done and are doing, we plan to invite others also to take -- to join the party.

And then a question on our partnership with -- on mechanicals, Aursund. Maskinering and NOMEK. What are your ambitions here? And what's the driver that led you to invest in that partnership?

Yes. So 3 years ago, NORBIT acquired a small mechanical factory in Trondheim, running with 5-axis milling machines, et cetera, doing components to our sonars. So the founder of that company was about to retire and looking for some new owners, and we were by far the largest customer.

And for NORBIT, this is important capacity to have. It's not very important for Norbit to have mechanical factories as part of our full operation, but it's important capacity to have. And when we saw how could we grow this and ensure that this grows with NORBIT. And it should not -- then also be in a position, where it could grow on other clients so that NORBIT is not too large part of the full operation.

And that's why we saw this other factory in Trondheim, NOMEK, doing very much the same. And we saw that this is a good fit for some consolidation. And NORBIT is not in a need of being a controlling owner. We'd like to be a strategic owner to ensure that the necessary preparedness is in the strategy of this supplier.

So we teamed up with a local investor. They have 51% of the shares and NORBIT 49% of this merged operation between the factory we had and this NOMEK. And we worked together now on an owner level to have some ambitions for this factory to lift out from regional focus to a Nordic focus. And I think that will be good for securing supply and scalability for NORBIT in the long term.

So a question on valuation multiples for potential targets. Does that make it more challenging to execute acquisitions?

Well, I mean, it's not the valuation multiples or the expectations on the valuation multiples that necessarily makes us or sort of -- is the reason why we haven't announced an acquisition itself. I think it's more relating to the fact that we haven't found the right company to invest in.

We have spent a lot of time trying to educate on what we are looking for and what are the criteria that needs to be fulfilled in order for us to do an investment. And it has to do with cultural fit with the target. It has to do with accretion, of course. So multiples are, of course, one of the criteria, but it also has to be relevant to the strategy that we are pursuing in which we are building a technology company. So it has to be related to advanced technology.

And finding those companies is not easy. I mean, it's quite challenging. So we'd rather spend time maturing those ideas. And the list of ideas is quite long, but it's far from ideas to actually put your pen on the paper. So that's why it's taking time, but we will make sure to announce any investment when it comes, but not for today, maybe for tomorrow.

Okay. When it comes to AI, is that something you use? Or can you start to use in your business? Yes. That's the question.

So AI is important in our business. It's important in our administrative operation of the business. So we've seen good advantage of using that technology, for instance, in the HR domain, where we have built routines, which is much more effective and self-service solutions, reducing the need for increasing staffing in that part. And in the products also -- and you can imagine working with image processing and target recognition, AI is very suitable for that. So yes, that's very relevant for us.

Last question. Could you guide on consultancy fees related to M&A for this year?

Well, I think that's close to 0. It's -- I mean, we don't use necessarily consultants to map out our M&A ideas. And we have an internal team for that, which is also driving the project through the execution phase and also is working in the integration phase if we decide to invest in the company. So we try to limit those costs to a bare minimum of what we need to drive those ideas forward.

And maybe to add to that, one of the advantages we see of having an in-house team working with M&A is that they can also be very relevant working on strategy for the business units. They're living the NORBIT life every day and understands the NORBIT DNA and becoming even more relevant in the M&A work as well.

And could you provide some guidance on the effects of tariffs? I suppose this is the U.S. tariffs on the results year-to-date.

We haven't seen any material impact of tariffs in the Oceans business. So when it comes to our revenue composition, we have virtually no sales to the U.S. in Connectivity and in PIR, but we do have exposure in Oceans. And U.S. is, of course, one important market for us.

But as of this year and also as we stated in the report in Q3, Americas was quite a strong region for us and was actually showing the highest growth year-on-year in the Oceans segment. So we don't think -- or we haven't seen any impact in the numbers of the tariffs per se. So I think that summarizes the question to that end unless you want to add something?

No.

Is increased geopolitical uncertainty driving higher demand for your R&D services? And does your PIR customers typically start out as R&D clients before transitioning to contract manufacturing?

I think this geopolitical unrest creates more demand in the long term, both for designed in Europe and made in Europe. And in our factories in the contract manufacturing, we have clients that has done the R&D work themselves, and we have clients that have been utilizing the NORBIT R&D pool also. So it's a mix.

What drove the increased Oceans sales to Americas in the quarter?

Well, it's a mix of different drivers. I think it's hard to pinpoint the sort of exact driver or one driver. It -- it's many things. And as Per Jørgen said in his presentation, I mean, one large order could also impact a quarter.

But generally, we're seeing quite good momentum in the Americas region. We are making progress in all regions being North America and South America. So I think, again, it's a mix of different drivers, but also a good business development efforts by the team in the Americas region.

Yes. So I'd just like to -- for those that haven't been on our web page, looking on the Oceans part of the web page, there is a lot of videos showing different applications, different use cases that's made together with some of our clients. So I mean, I recommend that you have a look to that as well, so.

Are the core chips used in the PIR segment proprietary NORBIT design or primarily off-the-shelf components integrated into your own modules?

So when it comes to chip design, this is very limited activity in NORBIT. We do have very few NORBIT proprietary chips. And where we have that is in the connectivity domain. For all the rest, it's components off-the-shelf from a global market.

Yes.

Yes.

Yes. And maybe to remind that the PIR segment is R&D services, partly, but mostly contract manufacturing. And in the contract manufacturing part, we are not a product owner. We rely on the design of our customers and do the manufacturing as one of our services.

Of the 4 percentage decline in the gross margin, how much is attributed to mix effect and how much was obsolescence provisions in Oceans? And should investors view these effects as one-offs or recurring going forward?

I won't necessarily comment on the split between the 2. But what I can say is that the gross margin in Oceans has been quite stable. It fluctuates some percentage points up and down, but largely, it's been in the area of 72% to 74% Today, we are reporting 71%. So it's not a material change.

But of course, in Q3 last year, we also had a quite large rental project having installed surveillance sonars in design during the Olympics. So of course, that has a very good margin. So it made the 75% be a quite tough comparable this quarter at least. So I think you should look at the margin over time and sort of extrapolate an average based on that to indicate what the normalized margin in Oceans is as we see it.

You highlight a NOK 120 million contract post quarter defense sector following an earlier NOK 100 million award, can you confirm whether the full NOK 220 million is tied to defense customers or if it -- if the NOK 100 million contract was unrelated to that sector?

No, this was related. It's the same client space. And it's just that the separate orders was not in the scale that it was above the threshold we have for making stock announcements.

Are sales to AUV customers becoming material for Oceans? It seems you are involved in a lot of exciting projects.

Sorry, could you repeat that?

Yes. Our sales to AUV customers becoming a material part for Oceans. It seems you are involved in a lot of exciting projects.

Yes. Yes. So that's a very relevant driver, and it's significant -- or it's a relevant part of the business and the numbers presented also. And I think still, it's more to come. I agree. It's a lot of interesting things going on. And a lot of interest all over the globe for different kind of solutions.

And I think -- I mean, the more headline macro on this, so the globe is covered 70% by water and only 5%, 6% has been explored. How can we explore all this autonomy is an important part of the answer.

Final question. Do you have any plan to get more recurring income?

So it depends on what you mean of recurring income. So I would say we do have some recurring income based on having a high degree of repeat clients. But if the question is that if we are aiming to have more subscription-based revenues.

I think -- so when we come back in February and we present how this year ended and we will announce what we aim for in 2026. And also, when we come back after the summer and probably announce our 2030 target, I think also looking to 2030, NORBIT will very much be a company, where the invoices is based on a number of units mainly.

But as with the iWBMS X, where it's now possible to pay to get some upgrades, software components is increasing. And the subscription-based revenue part of connectivity, which we have from our daughter company, NORBIT iData is expected to grow. But in a world, where AI generates more code, more efficiently, we think it's also good to remain a hardware company to be delivering hardware that the software could run on.

Good. Final question here. Do you expect new GNSS on-board unit orders to come in the near term? What is the addressable market for the product?

Yes. So I think the addressable market for the product, that's the European market. In Europe, there is 6.5 million commercial trucks on the road over the last 10 years, there is an average of around 400,000 trucks being made per year. More and more countries are picking up according to the push from the European Union to finance roads by having the truck driver to pay per driven kilometer.

And my understanding is, I'm not an analyst, but my understanding is when European countries are doubling their investments in defense equipment, the need for financing roads is increasing. And this is a preferred way of doing it.

We're now working with the leading player in this market. We've been in this domain for many years. And it seems like our reputation in the market is good. So probably we should be able to take a good part of this business. And yes, I think maybe that's our take on that.

Yes. And maybe to add to that, you also said in the presentation that we have delivered approximately 2 million enforcement modules for these GNSS on-board units over the last 5 years. So that also says something about the potential market in this.

And that's prior to any replacement. Yes.

Yes. Okay. That was the final question.

Good. Thanks a lot for good and interesting questions, and thank you to all that took the time to follow this presentation.

Good morning, everyone, and welcome to our Q2 2025 presentation. Before we begin, I want to thank our customers and investors for the trust they place in us. And of course, all the dedicated teams in Norbit for once again allowing me to present a new record quarter.

By delivering tailored technology to carefully selected applications across segments, markets and geographies, we continue to strengthen the foundation for further profitable growth. This momentum gives us confidence to raise financial targets for this year. We'll return to that in the outlook section. First, let's have a look on the Q2 numbers.

As said, Q2 is a new record quarter, both when it comes to revenues and profits. Having a goal of remaining a growth company, we need to continue to deliver record quarters. The revenues came in at NOK 684 million, which is a 63% increase from the corresponding quarter in 2024. The EBIT ended at NOK 174 million, representing an EBIT margin, 25%.

For the first half year, we have delivered a total north of NOK 1.2 billion, which is 46% from first half of 2024, up 46%, of course. The EBIT came in at NOK 302 million, also representing a margin for the half year of 25%. So a little bit from the segments.

So in the Oceans segment, driven by strong sonar sales from the new VBMS X sonar that we talked a little bit about on the previous quarter. We have delivered revenues of NOK 239 million, which is an increase of 22% from the NOK 195 million we delivered in Q2 2024. The EBIT margin in the quarter ended at 36%.

For the half year, revenues came in at NOK 472 million, which is an increase of 49% with an EBIT of 36% compared to 28% for the first half. So as mentioned, we're very satisfied seeing this new solar, this iWBMS X being well taken by the customers and being an important part of this growth.

So when you look into the revenue split, in the categories that we've been using for a while. That the WINGHEAD sonar has increased for first half year this year to 104 compared to 70. All the other sonars, excluding WINGHEAD and excluding the Guardpoint for the underwater security has been lifted from NOK 205 million to NOK 277 million. Sub-bottom profilers being the Innomar technology, yielded NOK 50 million in revenues.

In the security, we report NOK 10 million. As talked about earlier, we still see a lot of interest, a strong demand for new solutions for underwater surveillance. We see that our product offering is regarded relevant, but getting to orders takes much more time than we like.

The good thing is that it's not that we're losing any contracts, it's just that the projects are not concluded. Yes. Connectivity, this is the second best quarter ever for Connectivity. Revenues up to NOK 170 million compared to NOK 101 million in Q2. And the main increase is on onboard units and on enforcement modules for tachographs. And with the top line getting up, the margin follows, so the EBIT margin is at 32% compared to the 20% in Q2 2024.

When you look on the margins in Connectivity and Oceans, they are very much in the same scale. And this is the 2 segments where Norbit delivered own proprietary technology out in the market under our own branding. So we're expecting to be able to get margins on this level based on that. For first half of 2025, total revenues of NOK 316 million and a total EBIT margin of 31%, up from 25% in 2024.

So looking on the revenue split. As you see, compared to first half '24, it's growth on onboard units, that's the tolling units used for passenger cars. Enforcement modules for tachographs is doubled following a change from the European Union in the demand for this kind of technology in trucks in Europe. And also enforcement modules related to satellite-based tolling has a good growth. The subscription and e-toll is at par with what it was first half of 2024.

So final segment. As we've talked about before. Oceans and Connectivity, it's an Norbit proprietary technology. We use a big portion of our manufacturing capacity to create our own products, spare capacity has been offered on contract manufacturing terms to some key selected clients. As the demand for technology made in Europe has been growing and especially in the Defense & Security sector, we've seen that we've been able to position ourselves as a partner for scaling for some of these customers also.

So it's by far, a record quarter for the PIR segment. NOK 293 million in revenues, that's more than 100% up from the same quarter in 2024. That being said, we are not fully satisfied with this because we are a bit short on what we were planning due to some delay in some incoming component.

EBIT margin up to 20%, this is largely driven by a higher revenue base and operational leverage. And also getting -- if you look on the revenue split, so automotive, as we've talked about earlier also, we have chosen to reduce our exposure towards automotive and focus more on some key selected industrial, defense and security and others. So it helps also on the margin when you stop doing some business where there is a very bad margin and replacing that with more margin in the right scale.

And of course, this shows the scalability. I think we've talked about investments in capacity. We presented that Norbit has installed Europe's fastest SMT line for assembling electronic components on circuit boards. Without those investments, this would have been quite difficult.

Yes. What else? So in total, first half in the Product Innovation & Realization segment, NOK 454 million in revenues. EBIT margin for first half year on 18% up from 8%. We've also announced in the quarter an order from a European client in the Defense & Security sector at the value of NOK 125 million for delivery in Q4, 2025. Yes. And I've already commented on the split.

So with that, I think I leave the floor to Per Kristian to go into some of the more details in the finance.

Thank you, Per Jørgen. I will spend some minutes talking you through the financial highlights of the quarter. And starting up to sum it up, we are delivering record high revenues and results in the second quarter and the first half of the year, reporting strong growth across the 3 segments and improved margins.

In over 6 months of this year, we have delivered 90% of what we achieved in net profit for the full year 2024, showing both scalability and operational leverage as we grow. Cash flow generation was strong and cash conversion was equally strong, and we have continued to improve our working capital efficiency.

Our balance sheet remains rock solid, enabling us to act on our capital allocation framework, and as Per Jørgen will elaborate on, we are increasing the financial targets for the full year.

As for the second quarter, revenues came in at NOK 684.4 million, an increase of 63% from the corresponding quarter of '24, with all 3 segments contributing to that growth. EBITDA for the quarter came in at NOK 210.7 million, representing a margin of 31%, this compares to NOK 131.9 million in second quarter '24 and with the same margin level.

Operating profit was NOK 174.2 million, translating into a margin of 25%. This compares to NOK 101.8 million and a 24% margin reported in the corresponding period of last year. So far this year, we have delivered an EBIT margin of 25%, that's up from 17% in first half '24.

Net finance expenses were negative NOK 1.4 million, explained by net interest expenses of NOK 8.6 million and NOK 7.6 million in foreign exchange gains following appreciation of the euro and the depreciation of the U.S. dollar against the Norwegian kroner.

Tax expenses were NOK 41.4 million, while net income for the period was NOK 131.4 million, translating into an earnings per share of NOK 2.06. In the second quarter, Oceans delivered 22% revenue growth and 11% adjusted for Innomar, which we acquired July last year. Sonar sales were strong, particularly in Asia. Europe and Americas had a low single-digit decline compared to the same quarter last year. Slightly slower sales in the U.S. were mostly offset by growth in other countries in Americas.

After the introduction of tariffs by the U.S. administration, we have not seen any significant slowdown on our sonar sales to the U.S. and quarterly fluctuations must be expected as is quite normal in this industry. We continue to maintain our focus on maturing opportunities in the U.S., including protecting our margins.

Oceans gross margin were largely stable year-over-year and in line with prior quarters. Payroll expenses increased NOK 14.7 million, of which Innomar explained roughly half of that increase, with the remaining difference largely explained by new hires and wage inflation.

Operating expenses was up NOK 6.2 million, primarily due to Innomar, increased use of external consultants and activity-related costs. The EBIT for the quarter was NOK 86.7 million, up from NOK 79.7 million in the same period of '24. Connectivity reported a revenue increase of 67%, this was largely driven by more sale of onboard units and tachograph enforcement modules. Gross margin fell 2 percentage points due to revenue mix, while payroll expenses rose NOK 4 million.

The EBIT for the quarter was NOK 55.2 million, up from NOK 20.8 million in the second quarter of 2024. PIR posted a significant improvement of revenues of 118% from the second quarter of last year, primarily driven by increasing demand from the Defense & Security sector.

Gross margin was down 4 percentage points from higher share of high-volume manufacturing, while payroll costs increased NOK 6.7 million on activity level in manufacturing. The EBIT was NOK 59.6 million in the quarter, that's up from NOK 17.8 million in the same period of last year.

Next, our balance sheet and financial position. Property, plant and equipment, including our right-of-use assets, increased NOK 14.9 million following investments in machinery equipment and lease additions of new production equipment, net of depreciation. Intangible assets rose NOK 17.4 million, explained by our R&D investments with high activity ongoing on the GNSS OBU in the quarter.

Trade receivables were up NOK 12.8 million, explained by a sequential revenue growth, while inventories increased NOK 26 million in the quarter, on sourcing of components for the GNSS OBU, which is expected to be delivered in the fourth quarter of this year.

Net interest-bearing debt stood at NOK 274 million at the end of June increased from NOK 191.8 million at the end of March, following our dividend payment of NOK 190.9 million. Our equity ratio stood at 50%, down from 52% at the end of March.

After a structurally challenging period in the value chains in 2021 and 2022, requiring us to build significant safety stock. We have been dedicated and structured in our approach to increase our working capital efficiency.

Our progress is quite clear and demonstrated by our nominal working capital level, which for the end of the second quarter, was at the same level as what we reported on at the end of 2023. This is even considering the substantial revenue growth we have observed in that period. As per the end of the quarter, our net working capital ratio stood at 20%, last 12 months revenues and 15% second quarter revenues annualized.

Strong focus on inventory optimization, improved credit terms and sale of receivables have all contributed to this development. But as always, more work is yet to be done. And working capital will fluctuate given the anticipated growth and the delivery schedule.

In the second quarter, we have several financing initiatives ongoing, which are partly also still ongoing. We extended the maturity on our revolving credit facility to 2028 in the second quarter. We were also able to considerably reduce the margin on all our loan facilities from the previous level, which was a blended average of 160 basis points, which lowered our cost of capital further. And we are currently also in advanced discussions to increase the limits on some of our facilities. We focus on strengthening our flexibility.

Our balance sheet continues to remain rock solid. In the second quarter, our net interest-bearing debt-to-EBITDA ratio increased to 0.6 post dividend payment, and our liquidity position stood at NOK 725 million at the end of June.

Lastly, cash flow for the quarter. Cash flow from operations was NOK 186.1 million, explained by an EBITDA of NOK 210.7 million, a net decrease of NOK 13 million in working capital, taxes paid of NOK 36.6 million and NOK 1.4 million in net finance expenses. We invested NOK 45.1 million in the quarter, explained by NOK 33.1 million in R&D investments and NOK 12.1 million in investments in machinery and equipment.

The R&D investment level for this year is expected to be maintained in the third quarter, and the new guidance for the year is NOK 130 million to NOK 140 million from previously around NOK 100 million. While investments in machinery and equipment are raised to NOK 120 million for the full year, up from NOK 110 million previously. And this is due to build capacity to meet this year's increased revenue targets.

Cash outflow from financing activities was NOK 207 million in the quarter, primarily explained by NOK 190.9 million in dividends paid to the shareholders in May.

And with that, I conclude the financial part of the presentation, and I will give the floor back to Per Jørgen, who will give you the outlook statement.

Thank you, Per Kristian. So I think with the momentum we have now and I mean we were also challenged by a lot of investors after presenting Q1 that we should comment on the outlook that the outlook we had for the full year, NOK 2.2 billion to NOK 2.3 billion seemed conservative. We agreed. It seemed conservative. We wanted to have some more work to be done to really have something underneath when presenting the numbers. We'd like to have a certain control.

So -- but I'm very happy that based on the positive outlook supported by high activity in all 3 business segments, that we now can communicate that our revised financial targets for this year is to deliver revenues in the range of NOK 2.5 billion to NOK 2.6 billion with an EBIT margin in the range of 25%, which is the level we currently is running. We also should add that we continue to explore value-accretive acquisitions to add on to the organic growth as communicated when we presented the 2027 targets.

Looking into more short-term Q3. As you might recall, Oceans has a certain seasonality. Q1 and Q3 is typically slow quarters. And we're -- where Q4 is often the strongest. There's a certain budget flushing effect in Q4. In Q3, there is some holiday season in Q1. It's not the best for surveying on inland waterways and lakes, et cetera, there the northern part of the world, they're frozen. So these are some of the elements in the seasonality.

We expect revenues to exceed NOK 180 million in Oceans in the quarter. And in that, it's not recognized any of this security project that we have announced where we're waiting for some export license prior to collecting the money NOK 75 million. So we'll tell you when that's sorted out.

In Connectivity, we expect to deliver in the range between NOK 120 million and NOK 130 million. In the fourth quarter, we expect a pickup where we will deliver most of the volumes on this new GNSS onboard unit contract having a value of NOK 160 million. For the PIR segment, it's high activity, good leverage on the new investments. We expect to deliver in the range between NOK 220 million and NOK 230 million. And the outlook is that Q4 should be a new record for the segment.

So we need people to not have the alarm in the morning at 6:00, it needs to be a 5:45 to conclude rest of the year.

I think that concludes the official part of the presentation, but we are open to take some questions. So if there is some questions posted on the web.

First, let's see if there are any questions here in the room? No. Let's move on to the questions online. What actions have driven the successful development of Ping DSP post acquisition?

So I think the company is built on something that fits very well with Norbit DNA. This is a passion for creating technology that makes life easier for someone that needs to explore something. And so the Ping DSP sonars is typically a good piece of tailored technology for surveying in shallow waters very competent, a small team that created this. And I'm very happy to see that the synergies that we wanted in this acquisition, you saw that it was a good technology. It's a good product. That's an extension to help us broaden our product offering, and we wanted the Norbit go-to-market platform to help grow, and that's really been a success.

Looking at product mix development, is there any reason gross margins should decline in 2026? If not, are there other factors that would prevent EBIT margins from remaining flat or even increasing from 2026 onwards?

Yes. I think we haven't said much about 2026 yet. So I think we'll come back to the 2026, but we have no intention of taking measures to reduce our margins.

Are you able to provide any color on which segment you see the most scope for inorganic opportunities?

I think what we've said on that in the past is still valid that for inorganic growth on strategic acquisitions, we prioritize to acquire companies that brings either technology synergies or market synergies or both. We prioritize to do acquisitions where it fits with this carefully selected applications, demanding technology in some kind of niche market with good scalability in our scale. And we need to believe that we can have a good cultural fit. So I think that's the priority. So we don't acquire to get some more of the manufacturing capacity, et cetera, that's better growing organically.

Is the reduction in the revenues in the PIR segment related to the delayed component? Is the revenues delayed to the third quarter?

With this particular -- so the reference to the 15%, that's delayed to third quarter, yes.

The revenues are kept. It's a timing effect.

Could you give some guidance on M&A. How is the M&A funnel looking indication of size M&A preference for any BU specific for M&A?

So I don't think we have anything to share specifically on that. But as we've said before also, we have built up in-house capacity to work systematically on M&A. And we see that having industrial economists, living the Norbit life helping to explore and build up an interesting list of leads that we turn around and work with is quite helpful.

What is the current pipeline for Ocean security looking like?

Yes. Maybe you'd like to comment on that, Per Kristian.

Well, I don't think we need to go into details in specific when it comes to numbers. But what we can say is that the pipeline is surprisingly large. And as Per Jørgen said, these are rather large projects that take time to mature. And it's a combination of governmental projects or -- and private projects. And some of these projects are also linked to sort of a bigger project. So they're not necessarily only buying the surveillance sonar system but they're also buying other types of security systems as well.

And we are maybe just a part of that, which means that a lot of decisions have to be made. And given that these projects are quite big in total also, it means that this generally take a lot of time to mature. So -- but I mean, we remain patient. We really believe that this market will grow. And I can also remind you that we didn't really have a good start to last year either when it comes to winning new security projects, but we announced quite big orders at the end of the year. So -- so I'm hopeful that we will also see growth in the security market in second half of this year and then hopefully you can grow that even further over the next years.

And maybe we could also say that we see especially strong interest in the Middle East and Europe. And it's not difficult to understand that either.

I noted your comments about investments, CapEx in Q2 and the full year 2025 in the report. What do you consider to be a normal CapEx over sales in percent?

We have sort of -- we have made some communication regarding our R&D investment level. And what we said it over the longer term, it will likely fluctuate between 3% and 5% of our revenues. When it comes to investments in machinery and capacity at the factories, that certainly depends on how much we are growing. I think this year, we have taken a lot of investments to build up our machinery capacity. And we will see next year what we will prioritize.

But what I can say is that we have a fantastic return on those investments. So not being capital constrained and then putting our capital to work in terms of what we see are the best opportunities, and that gives us good returns is something that we will continue to prioritize.

Maybe a quick add on to that also, if you allow me. And that's -- I think, exactly as Per Kristian says, it's not capital. That is the limiting factor, but we really need also to see that we are able to manage all these projects. I mean what we're creating is not very easy. It's a very demanding technology we're creating. So you need to set up a group of engineers really being very clever engineers and you need to be able to manage that in a way, inspiring them to set new world records in creating stuff up to the limit of what the law of nature and the physics allows us.

So -- and that's why with this high return on capital, why don't we double that? We have the capital. But we don't have the human resources suddenly to do a double. And we want to grow that steadily to safeguard the culture in this as well.

And so first half this year, our R&D investments is around 6% of our revenues. I think it's also worth mentioning that a lot of those investments are currently put into the GNSS OBU project, and that's not generating revenues for the first half. So I mean when we invest, do you expect that these investments will have a long-term growth. So -- but over time, it's a target of 3% to 5%, which we have said in the ambition plan towards '27. And then when we come up with a new plan, we will also set new targets for that.

That's a good question.

It is. Can you give some color on defense and security use cases for your multi-beam sonars?

This is a bit tricky because a lot in this domain, you're not allowed to talk about. But I think we've mentioned before, in the Danish news, it was a lot about a U.S. company being one of our clients, a company Saildrone delivering special drones to the autonomous surveying. They are delivering some kind of services to the Danish Navy. It's not disclosed what they do, but I would try to guess.

And what I guess is that they, with these drones, they go in a certain area and map and then they go again to do change detection to see if something in this area is changing. Is there some new objects or something, which is a relevant use case. So maybe that's the best example today.

Your have a great year within PIR and guide for a very strong end to 2025. Would you say that we are in a ramp-up phase within defense and that you expect growth in the coming years?

I mean, we've been talking about this trend of Made in Europe, Made in Norway for many years. First, when we spoke about that, I think the trend was driven by that in the western part of the world, we see that it's risky to buy Chinese technology. We stopped buying Chinese base stations in the cellular network. If you don't want to do that, the devices using the cellular maybe should be from the western part as well. So -- and next level of this is suddenly, it happens that Europe sees that maybe we should -- it's not only in China, which is a challenge. There is another challenge. We need to be self-contained on technology.

And then you have on top of that, increase for defense and security. So it's sort of 2 trends building up on top of each other. And I'm glad we started to do investment to scale up. Last Friday, I was touring then the new factory coming up in the expansion of our Selbu factory, doubling in the floor space more than that. And I think that will be a very good investment also, especially since it's the local community paying for it.

Good. Any guidance on the effect of tariffs on the business?

Well, I think I made some comments on that in the presentation. So -- and to reiterate that, we're not seeing a sort of marked slowdown, at least not in the second quarter of the year. And as I said in the presentation, I mean, the sonar business can be quite lumpy. So just singling out 1 quarter and trying to isolate the effects on that is pretty hard. So we need to have more data points in order to accurately understand how the tariffs are affecting the sonar sales, but what's -- on the positive side, again, we see that countries such as Canada is certainly offsetting much of that -- of the decline we saw in Q2, so sort of Americas in general remained largely flat or to a low decline single-digit -- decline low single digit, which sort of shows that there is a lot of diversification, both in terms of products, markets and geographies when it comes to the sonar side. .

So -- but the U.S. is still an important market for us, and we will continue to have a big presence in the U.S. when it comes to focus on growing that business. So nothing has changed in that. And as I also mentioned in the presentation, we will continue to protect the margins.

And it's not like suddenly a lot of U.S. suppliers of the same technology as we supply. I mean, that's also the beauty of working with high tech in some kind of niche related applications.

Yes. And maybe a nuance to what I earlier mentioned also, it's -- so the U.S. exposure we have is primarily in the Oceans domain. So in terms of PIR and connectivity, we don't have that exposure. But I think also on the tariff side, I mean, if you look on the sonar business, most of our competitors are also found in the European Union and in Europe. So they are facing the same tariffs as we are at the moment, which means that the competition has the same level still. So again, I don't think a lot has changed, but we need more data points to accurately have some good statements on that development over time.

Good points. Will the proportion of defense PIR demand continue to grow to be a larger proportion of the business over time?

So the difference between the PIR segment and Connectivity and Ocean. So is that in Oceans and Connectivity, we have our own product, our own intellectual property and with higher returns and better margins. So strategically, we are allocating capital towards those 2 segments. And as Per Jørgen said, we're using that spare capacity to grow the PIR segment.

Within the PIR segment, we are working towards some key selected customers, which means that they are very well prioritized in our business. So if they are scaling, we are also scaling with them. So we're not out there chasing new clients all of the time. And I think that's maybe a big difference to our business compared to some of the peers.

So we're focusing on sort of the core clients we have. And then we will see how much they will grow. I hope they really succeed because if they do, then we will succeed. So that's also what you see in the numbers for this year with the substantial growth that we had in the PIR segment.

I think also in this strategically we've not focused that much on growing this, but getting better control on the working capital, making this part of the business more capital-light. It's -- the context has changed. So that's why it also instead of just saying we will use spare capacity. It's really worth investing to build some capacity to work and allocate capital to that as well, so.

Good. How is activity progressing in tailoring sonar solutions for AUVs such as those used by Bedrock exploration?

Yes. So Bedrock is a company we know very well. And we continue to tailor increased capacity on existing sonars and we also tailor new technology for new solutions not being disclosed yet. So yes, I'm not sure I have much more add to that.

I think if you look on the web page, there are certain videos with some of these mentioned clients showing some demo on how this is used.

Could you indicate what the negotiated increase in the financing facility would look like and what the current utilization of the facilities?

Well, in terms of utilization, that's pretty easy to tell. So we have 3 facilities, the term loan is fully drawn, which is what we see in the balance sheet today. The other 2 facilities have not been drawn on, and they are NOK 200 million on the RCF and NOK 350 million on the overdraft. So we still have quite -- we still have a pretty good capacity on those.

When it comes to the margin, unfortunately, I can't really comment more than what we stated in the presentation that has been considerably reduced. So that's what I can tell.

Is it possible to say something more about the reception of the WBMS X product?

Yes. I think what more to say. So maybe I could remind you what's new with this product. Maybe that could be relevant. So with the WBMS X, we have created a platform where it's possible for the client to buy a base kit. And then after starting using it, you could buy on extra features by upgrading software. This is new in this industry. It's quite common in the daily life on some consumer stuff, but this is new in the industry. And it looks like the market has received that very well. So in the growth numbers we've shown, a good part of that comes from this. Yes.

Are you actively avoiding Chinese components in the development of your security products?

We have a clear strategy on supplier selection and component selection. But as the industry is set up today, a lot of Chinese elements are in a lot of different components. It's not that you have a lot of ship manufacturers in Europe. So probably we will see changes to that also going forward, both in Europe and in the U.S. But we really pay attention to that and carefully select.

Do you see opportunities to build on your experience in defense relevant technologies to create new products?

Yes. And I think, especially, we see that in a long perspective, it would be relevant in the connectivity domain, where I think we've spoken about that before also where we see that over core skills within wireless secure communication and some references we have in the past where we've delivered to some military applications that there could be more opportunities. And maybe we would have done more on that if the organic growth on the existing base would not have been as good as it is now, so.

Good. Final question for now. Is it difficult to find employees with the winner mentality that Norbit has?

I think getting the right people is the most important thing the management could focus on and then seeing that we could create an environment where they could really build and blossom as professionals. And this is not just a matter of finding, convincing and recruiting. I think it's the one thing -- I mean, a lot of our investors know that for me, the buyable some of the books of Jim Collins, and he speaks about is the right people. And it's not only having the right people but having the right people in the right seat.

So we continuously also consider if someone should be allowed to do something slightly different than they've been doing up till now. And sometimes in this also, you see that brilliant colleagues is not the right in your company anymore. So then it's more right for them to work somewhere else where they could grow again. So yes, it's not easy. I think if we said this, we're easy, we probably would do a lot of mistakes.

Okay. There are no further questions online. So unless there are any more questions in the room. No, then that concludes today's Q&A session.

Okay. Thank you. And then I'd like to thank you all for taking the time and listening to our presentation. And we'll go back and explore more and see if we could deliver in the future also.