PowerCell Sweden Aktie

Welcome to the PowerCell Group Q1 2026 Report Presentation. [Operator Instructions] Now I will hand the conference over to the CEO, Richard Berkling; and CFO, Anders During. Please go ahead.

Good morning, and thank you very much for joining us. Also today, we have our CTO, PowerCell, Andreas Boden, joining in to give you a presentation and an in-depth look at the technology of PowerCell. But before going into the quarter, let me briefly frame the environment that we're operating in at the moment.

We are now seeing an increasing demand of energy in society and in the world, both when it comes to energy resilience, but also the fact that the energy demand in society is accelerating quite drastically. So we see interesting search in the industry that we're operating in. But at the same time, we are operating in a very uncertain time. Geopolitical issues that we are all affected by, we see capital discipline, but also some lack of infrastructure that is creating a headwind towards the increased demand that we see in energy.

For PowerCell, this is the reality that we're navigating in. Our commitment as management is to make sure that we have an action readiness, and we're prepared for a variety of outcomes because we are going to navigate in uncertain waters for quite some time going forward.

Today, we will keep this presentation focused and structured because we have a lot to share. We will start with the technical foundation of our systems, giving you an update on what we have spent the last 3 years doing here at PowerCell, both internally at PowerCell, but also with our industrial partners around the world. We are also giving comments to the quarter and the numbers from Anders and then an outlook on what is happening in the marketplace and how we are framing PowerCell's opportunity going forward.

But first, let me say, for quarter 1, for me as a CEO, the quarter 1 did not meet the expectations. At the same time, this is in line with the volatility that we predicted in quarter 4 report. We have said previously that 2025 was somewhat of an anomaly with more stable revenue over the quarters, where 2026, most likely more will resemble '24 and '23, where we have a more project-driven sales, which will give volatility and uncertainty over the quarters. More on that when we go into the technical or the financial side and also the market prediction.

But before we go to the financials, I would like to start then with the foundation of our business and also, I would say, the heart and soul of PowerCell. Over the past years, we have invested in industrializing our technology, strengthening our product portfolio and also building the process required to deliver demand in real-world applications. Everything we do, both commercially, strategically and financially is built on this foundation. And to give you an in-depth view on that one, I hand over the word to Andreas Boden. Let me now slide -- change the slide. Here we go.

Thank you, Richard. So PowerCell builds on different layers to build reliability in real application. And the foundation of our company and technology and products are the fuel cell stack. And I think we have talked about this over the years. And the last 6 years, we have matured this stack and industrialized it together with Bosch. If you look on the bottom section, you can see that the cycle for a stack developing between 5 to 7 years from start to full validation before we go to an application. This is the key.

It takes a long time, and we want the stack to be mature and predictable because on top of the stack and around it, we build a system architecture with pumps, fans, sensors, et cetera, to both protect the stack from the application, but also to create the environment for the stack so it can perform operating over time in the application as good as possible.

And then, of course, on top of that, in a system, we now have a control system and software that we can frequently update to recalibrate depending on application or recalibrate depending on live experience from the real application. This is the 3 layers that build our foundation in our system product development and it's the core. And as you can see, they have different cycle time.

For the system, we spend 1 to 2 years for an iteration and software, we can do between weeks and months. So in real application, when we have a defined hardware, we can update them continuously to improve performance and enhance durability over time.

So if you take the next slide, we go a little bit deeper into technology and lifetime. So lifetime is determined by the operating profile, how the system is used in the application and not by a single test by itself. And what affects the fuel cell is basically how it's operated like load transient, if we cycle it, start or stop it a lot and also the load level for the fuel cell. If we operate it on half load or 70% load and in some applications, we will run it a lot on the max load.

So in this graph, which is a little bit technical, you can see degradation rates on the Y-axis and operating hours in the x-axis. And the key thing here is it's not a single test result determine how long a lifetime. It's the combination of experience and how we have designed the system, but how it's operated.

And we have tests that has been running over time that show in a marine environment with different operating profile, we can have between 24,000 and 43,000 hours of operating before we need to change stack, mostly due to it has lost performance or the hydrogen consumption is increased. So it makes financially sense to swap the stack to lower the hydrogen consumption. The stack is fully operational still, but yet on a lower efficiency.

And this resembles degradation in batteries for electric vehicles, et cetera.

Exactly. It's a natural behavior of when a fuel cell or battery is used in an application. It loses performance. So how do we test? How do we stress our technology? We have -- an EU-funded project, we worked with industrial partners and institutes developed a stress test, which finds the key spots where the fuel cell is not treated as well to provoke that this performance degradation is -- can happen.

And this cycle was developed in this project, and this is a cycle that we use to do our testing, both on stacks and system. But this is far more harsh and aggressive than any fuel cell system will see a real application. So all the test results that we get from this test has then a lot of margin in the real application because our are more softer in transient and also the load levels are normally not as high. And we don't do aggressive start and stop like the peak you can see at the end of the cycle.

So we have conducted a PowerCell marine durability test according to this accelerated stress test. For the first test was 20,000 hours on the old generation stack and the latest stack generation now, which we have industrial together with Bosch, we have done over 5,000 hours of testing. And what we can see is that the performance of the old stack generation and now the new industrialized stack generation with Bosch are the same, which gives you -- we can also rely on old data when predicting performance and durability in application.

But on top of that, together with Bosch, we have over 200,000 hours of test data in total with different operating cycles in different environments, giving us a solid foundation on how our stacks behave in different conditions, which then we can use to build the system around it and predict the durability and performance over time in real application. And on top of that, there is also 0.5 million hours of field data available for stacks together with Bosch.

So just to reiterate then the 20,000 hours of accelerated stress test that is done on one individual test objective to really found the boundaries and prediction of performance.

And we could actually run the test longer afterwards. It was not finished. But -- then we go to how do we build the system architecture. So as I said initially, the system is there first to make the performance as high as possible for the stack, so it's predictable both initially, but also over time. But also it's there to protect the fuel cell stack from the application, so we don't get events that affects the stack over time.

So by the system, then we control temperature, pressure, flows and humidity, which is important for the stack to perform as good as possible. And it also defines the operating window that we don't need to load the fuel cell too quick up and down. It's smoothing it out. And on individual system, we have over 1,600 hours of accelerated stress test according to the same cycle as we had for the stack, where we can see that the performance and aging properties are the same as when we do the stack test in a single stack test. So which means then we can rely on the system testing and the stack testing because they are compatible with each other.

We have also built a lot of system over the last years. So we have over 1,300 hours of total test time here on the multiple objects to see we can have a really stable performance from system to system, which is also important in the application to have that they are repeatable. And this is due to the industrialization we have done over the last years.

And on top of that, then we have developed over the last year a software layer. So we have 2 layers of software. The first layer is the one that controls the individual components in the system, matching the air flow with the hydrogen flow and cooling flow. And then we use different calibrations for different applications to enhance performance and predict performance over time. And this is really important because it's not a static calibration that will be the optimal over time. So we don't just do one calibration from start, but we need to update it continuously over a life cycle of the system, which is key here.

The other thing we need to do is also that we can balance the load between individual systems. So in an installation where we have 10 to 20 systems, some systems will perform better over time and some will be fresh because they are maintained. And then this distributed master controller that we have developed, balance then the load sharing between the systems so they are always operating at their best.

And this means we can predict performance and durability over time by individuals, even though we have updated and maintained individual systems in an installation. So this is also really important because by doing that, we don't stress systems that are close to maintenance more than necessary by onboarding them for the fresh systems.

So summarizing this, we have a really solid foundation of over 200,000 hours of in-stack testing together with Bosch. We have individuals that we have operated over 20,000 hours. We can, by using all this data we have gained, predict that in marine operating environment, we have somewhere between 20,000 to 43,000 hours in real operation using this accelerated stress test as the foundation.

So we have predictable performance and predictable durability in our application. But most of all, it depends really on how the fuel cell system is used and not by a single test in the lab.

So then looking at the technical foundation and how we have been working, there are some elements that are worth highlighting. One is actually the design philosophy because the decoupling strategy is extremely important when you work in a technology shift because you will have layers of technology that are updated, both internally in our R&D and innovation, but also from suppliers and other part of the value chain that are upgrading performance, quality and price. So you need to decouple in order to get stability.

Just reiterating the stack platform, we have massive testing, both at PowerCell and together with Bosch. And the stack is the core component, giving performance, it gives robustness and also reliability over time. When you have that one, you have a very solid foundation, and we are sharing technology with Bosch that they are using in their applications for automotive purposes.

The automotive test cycle is also more aggressive than our primary segments in marine and power generation because you have much more load transient from the increased start or stop that you have in our more stable environment. And then on system architecture, both individual testing on test objects to get reliability testing and then broad testing on the fleet to see that we have a repeatable behavior also in production.

But then on top, we build margin from the software and control. So we know that when we introduce the products to the market and we do the commissioning and integration with the customer, there will be adaptations because we are creating installations that are system of systems, which means that you need to optimize when you do the installation. You need to find the right balance point between the installation of fuel cells, the battery part and the power management system.

That is just part of doing technology development. But when you operate in a technology shift, you need to have risk margin. And the fact that we have tested and accelerated stress testing beyond the life expectancy is the margin that we have for our customers.

Does this mean that we will have no issues when we go to market and we introduce this? No, of course, because technology always comes with risk of having quality issues, disturbances and issues with the integration, but we're well prepared for that one. We have also selected partners and customers that have a readiness for this and have redundancy in their DNA. So we feel that we have a very strong offering to the market that we are standing on very solid ground, and we're quite proud over the achievements done at PowerCell over the last year and also the collaboration we have with Bosch as our really solid industrial partner.

So with that, thank you, Andreas. We now go over -- hand over to Anders for the financial update.

Thank you, Richard. I think the numbers in this report is quite a bit flavored of the heading. I mean it has been slow, and we have had a conversion situation that we'll go into further on in the presentation. But if we look at the quarter as such, I think there are at least 2 things I'd like to highlight for you. Part of the reason why the decline from last year is obviously the decline in IP and royalties in this quarter, which has a direct impact not only on top line but on the bottom line as well.

You also read if you have so far in the report that there are some FX effects. But those we have all the time, and they are different in nature at a different point in time. But the most important underlying difference from last year is the difference in IP and royalty revenues in this quarter. Then when we go to the next page.

Let me support you with this.

Then I have the rolling 12 number. You may find that here that the sales are about the same level. Gross margin is higher at this point in time for the reason of the deal we had in June '25 with Bosch on the IP. But then when we go to the net profit and loss, you see there are small differences.

Then you need to remember that in the second quarter of '25, we had a conversion of a loan into revenues that has been explained before. But I just want you to remember that when you look at that from that standpoint because that obviously tweaked the numbers from a rolling standing position. That was SEK 30 million for those that didn't remember.

Apart from that, I think it's for me important as a CFO to underline what Richard said that if you mention and in the light of the presentation from Andreas that we have a strong platform. At this point in time, I'd like to also share with you that we feel comfortable with the balance sheet we have. We feel comfortable with the revenue streams we see ahead of us. And we have, at this point, a very highly trust in that we are a robust company also from a debt standpoint. I think you recognize that in this quarter, for the first time, we had a project financing of SEK 28 million that we have been reported. That is the only debt we have, which is directly connected to a particular project with a revenue stream and gross margin that we're well covered to repay or amortize that debt.

Other than that, we have the Czech credit or the Czech facility that has been unused so far during the first quarter, of SEK 50 million in case that wasn't clear. With that, I think a brief, but in this case, the first quarter is from a financial standpoint, a brief quarter. So I'll leave it over to you again, Richard.

Yes. Thank you. And then you have the calendar for the remaining year, the AGM, May 11, and then the quarter 2 report on July 16.

So if we then look at the market development, we have seen commercial progress with signed agreements in quarter 1 to roughly SEK 50 million, activity both across marine and power generation, which is also what we see in the pipeline. We see also progress in the marine sector for existing customers where we are delivering according to contract and progressing well in that sense.

We also have signed agreements on engineering projects for the next generation, which is also good because we see that we have a value also long term for industrial partners, which is actually a very good sign because this industry, it is a marathon. So being part also actively in the next generation of technology systems is really valuable to PowerCell.

And then in power generation, we are completing the first -- we completed the first customer deliveries of the new 190 system, which is a very attractive proposal to the market. It fits really well into the increasing demand in power generation. Primarily driven on -- we hear a lot about data centers, but also auxiliary power and backup power in society construction sites. I will come more over to that.

So if we then look at the different segments, I will give you a brief update on what we see. Marine is still the growth driver for us. There is interesting activity in the market because the notion from the industry is that fuel prices will not come down. Over the coming years, there will be an increase. And we reported last time that from 2024 to 2030, fuel prices in marine will double. And then the increase from 2030 to 2035 will be an additional 50%. So the underlying driver is there.

We also see a pipeline of discussions that is stronger than we have seen before, but it takes time to make a decision. And that is also related to the uncertainty that we see in society because when we sign an order with a marine customer, that is part of a much larger investment decision. They are building a ship, they're providing an operator.

So we see a delay in those, but the underlying trend is strong, both when it comes to passenger vessels, ferries, but also then bulk carriers, which are operating on defined routes where you can have bunkering and infrastructure for refueling, which creates a very solid pattern for them. So interesting activity in marine. We hope to come back and report on progress on that one.

But the new segment for us, power generation has been really interesting since we made the product launch in quarter 4. We immediately signed a number of orders, although small, but the interest and the timing for this one was quite strong because, as we said before, demand in society for energy is just increasing drastically, 3% year-over-year from EASA, which is a massive increase. And also, we see in certain markets, especially driven then by the data center that availability of energy is very limited.

So far, when it comes to fuel cells, it's been the technology of SOFC because they're running on natural gas, which is an advantage for them. What we see right now is a strong interest of using natural gas with steam reformers to produce hydrogen on site. That is if you have a carbon capture, that is blue hydrogen. If you don't have it, it's gray hydrogen. Not as good from an environmental perspective on CO2 emissions, but it's better than running on conventional fuels.

And also, it gives availability of energy that is not there otherwise. It can also build in the U.S. on existing infrastructure where you have pipelines of natural gas. So while SOFC technology in fuel cells was the dominating force in especially data centers so far, we now see a rising interest, and we have ongoing dialogues that are quite interesting.

Also by the sheer fact that delivery time for SOFC fuel cells to data centers are right now around 3 years. And also if you want to have a gas turbine, the supply time is between 3 and 4 years. So -- when others can't deliver, they go for alternative solutions. And the PEM fuel cell that we are operating is very good for peak shaving and backup power because you have a dynamic characteristic of it.

So although SOFC will be more prevalent in primary power, we see that the PEM fuel cells that we are representing is really, really good complement when you are setting up your facility where you might have grid power for part of your operation, but then you have additional power sources like conventional IC combustion engines, but also green solutions.

Off-road is something that we're following. We see initiatives, but that is primarily regulatory driven. In London, they have a huge investment around the new highway, where they have demanded that part of the operation is done by hydrogen. So we will -- we know that there will be both excavators, wheel loaders, haulers and other equipment that will be running on hydrogen. They will also use backup power units, power gensets with fuel cells to power battery-driven excavators and haulers. So where you see that regulatory push, off-road is still a potential market, but it's not a segment that we see as a primary segment.

And then aviation, we have a lot of engineering projects together with customers there. We see an increasing demand in that one as well. Longer time to market, some interest in specific applications like drones, also driven by the new geopolitical environment. But aviation, as we said before, it is our innovation segment. We use it to push boundaries to secure and validate technology to build robustness and safety knowledge because aviation is the most demanding segment that you can be operating in. But it's also funding a lot of the activities that we then transfer to different segments.

I will actually go through this quite rapidly now. So if we look at the general market dynamics, we see some really, really strong drivers. Energy resilience in society is becoming more and more a hot topic for both companies and governments. We see energy demand where data center is actually crowding out and is capacity hoarding, which is affecting society in general. The geopolitical uncertainty is actually a driver. But as you can see on the opposite side, it's also a constraint. So the uncertainty that we're operating in is the new normal that we need to adapt to.

We still have a strong driver and demand to get rid of pollutions and emissions. And then the regulatory side of things is creating some push for us. But then the constraints and the headwind, a lot of capital discipline. We don't see investments in general, people are waiting on decisions and the decisions made are quite often in the same way as you did before. You don't take risk at the moment, which is affecting us.

And then infrastructure is still not in our favor. We have not built out the refueling system. We saw both Daimler and Volvo commenting this. We saw the Chairperson of Bosch go out and comment that Europe needs to invest much more in infrastructure. In China, that is a different story. They are investing heavily into hydrogen infrastructure. And there we also see that they are improving their deployment.

If we then summarize, PowerCell, we are quite proud of the company that we have established. We are structurally a much stronger company than we have been before. We have really competitive industrialized product portfolios, purposely designed for both marine and power generation. But we have also built a resilient company. We are prepared for a wide variety of outcomes.

Our obligation as CEO and CFO is to defend breakeven even if we see a lower scenario going forward. But at the same time, we need to have the ability to act and deliver on the high-end scenarios. And that is a balance point that we need to control every day. We have created a company that we have said before is asset-light.

So we can scale up without significant investment. And the fact that we are debt-free when it comes to our operations and industrialization means that we are not burdened by the same investment that needs to be depreciated in the same way that some of our colleagues in the industry. So we have had a very disciplined execution, and we can continue to do that on the current activity levels.

Focus is cost control. It is to leverage the existing product portfolio, but at the same time, do the investments and timing on the next generation of innovation will be industrialized and introduced to the market. We are also positioned to scale when demand converts, but we will also, as we said, protect bottom line. So that is the balance point.

We think we are convinced, that's why we do this, that hydrogen will be part of the energy mix going forward. We know that energy demand is increasing in society. None of us can really predict with precision if the growth in hydrogen and offtake in society will happen in 2026 or '27, but we are prepared for both an outcome where demand is increasing, but also to defend profitability and the power sales at lower levels.

So with that, we conclude the presentation. We know it was long this time, we don't have too much time for questions, but it was important for us to convey the situation and the company we are right now. So we then go to questions.

One question from Alvin is why is the Bosch royalty so low when they have seen to start up in China with some deliveries and starting serial production?

China is an interesting market. Hydrogen was part of the new 5-year plan from the government. We see massive investment, but we also know that part of the value chain have stocked up on inventory. So although we know that Bosch is deploying more installations and Bosch customers are deploying more trucks and other vehicles to the market, that doesn't necessarily translate to new orders every quarter. So there will be delays and some volatility between the quarters.

But China is a really interesting market. And to some extent, they are inspiring us, but also fighting us because what they do is going to shift, I think, the power balance in also this technology sector like they did with batteries if we don't really protect ourselves in Europe and U.S.

Do you have any information on how large your customers that are operating in the defense sector? At the moment, we have no customers operating in the defense sector. We know that there is a demand from the geopolitical situation. But so far, we have not had any dialogues or ongoing customer discussions with that.

That was actually all the questions that we have seen so far. With that, we conclude. Let me see here. We got a very specific question from Carnegie. We mentioned milestone payments being invoiced in quarter 1, but cash arriving in April, roughly how large are these payments?

Anders you can comment on those details?

I think we don't do predictions on Q2. So you will wait and see.

Yes. I have then also a follow-up question from David Carnegie. We mentioned measures to improve efficiency and control and flexibility. Can you specify what actions have been initiated and where you see the largest saving potential? Should we expect that these cost measures result in visible OpEx reductions already in quarter 2? Or is the impact more weighted towards the second half of 2026?

We don't comment to that detail. What I can share with you is that the fact that we have manufacturing also outsource to Bosch. We have not the same exposure on a fixed cost like we -- many others have or we could have. In essence, I would say that the primary value that we can do is to smoothen out the investment in innovation.

We have core technologies that Andreas presented based on the S3 stack. That is a very, very competitive and potent component. We are now doing new tests on pushing the boundaries that see that we actually have performance that is better than we thought. In aviation, we can operate on higher temperature, which means that some of the investments in next generation might be postponed because we can work and live on the existing technology longer.

That balance point is something we evaluate, and that will also be part of it because then you can postpone some investments, both in equipment, in machinery, et cetera. So we will come back to you when we have a more clear picture on this one and also when we know what we want to share.

So we have one question on election. We have election in Sweden this year. And do we see that countries and societies are vulnerable and dependent on fossil fuels? We try to stay out of politics. I don't think that there is a government in anywhere in the world that is not affected by what is happening at the moment. Energy and availability of energy will become an even more important security issue.

We see strategies to have more local production of energy. Solar will be one of the -- I think it will be the dominant source of power in a few years because it gives availability of locally produced power. That is a trend that we think will continue. And regardless of government in Sweden, I think that we will see more focus on energy, more focus on energy resilience and more focus on energy independence, and that will be in all countries.

So with that, we need to conclude. And thank you very much for this one. You can always reach out with questions or if you want to come and visit us, we can raise any one. So thank you very much for this, and see you next time.

Welcome to the PowerCell Group Q4 2025 Report Presentation.

[Operator Instructions]

Now I will hand the conference over to the CEO, Richard Berkling; and CFO, Anders During. Please go ahead.

Good morning, and thank you for joining us. 2025 was an important year for PowerCell, not because everything moved fast, but because the right things moved forward. We operated in a market where interest in hydrogen and fuel cell clearly increased, but the investment decision remained cautious and uneven, which affected the market.

With that combination, market conditions requires discipline more than optimism and execution more than ambition, and that is what we saw in 2025 and what we will present here in this quarter 4 presentation.

So against that backdrop, parts have continued our shift from technology development to more industrial execution. We delivered a record year when it comes to several aspects. We had improved margins materially. We generated positive EBITDA for the first time for a full year, and we strengthened our cash position, all this while operating at a slightly lower top level than we initially anticipated.

So this is not where we want to end up, but it's also a very clear confirmation that our fundamentals are strengthening. It shows that we, as a company, can execute, control costs and deliver industrial performance in a very demanding environment.

So as we enter into 2026, we're not managing towards a single market forecast. We are deliberately building a structure that can protect earnings at a lower activity scenario while still remaining ready to scale when the opportunity materialize.

Marine is remaining to be our execution backbone where we see the most growth and more stable income. But power generation is now emerging as a second pillar, designed for scalable growth with a limited cash capital exposure.

So we said that 2025 was about execution over ambition. We said it was readiness over prediction and more from promise to performance. And that's really summarizing the year. We have executed on more or less all strategic ambitions, but we are also setting the bar higher for the future.

So key takeaways on 2025 and quarter 4. Our Q4 and cumulative 2025 results demonstrate a very solid execution on strategic priorities. Most notable, start of production deliveries to marine on time to customers, the product launch of the power generation platform that gives us an additional pillar for future growth.

The first industrial order on the methanol power plant, which was a significant milestone. And I really like the fact that when we do product introductions, we see immediate market traction, which gives us a confirmation that we have rather good precision in the efforts in product development, investment into new features and then also market positioning to a very demanding market.

And also for a company like PowerCell to find the breakeven point and deliver on it is extremely important. So it is encouraging that we can deliver organic growth in a volatile or flattish market to some extent.

If we look at growth year-over-year, we take out the FX effect, it's actually 24% organic growth, which is strong. Once again, not necessarily to the level that we have as an ambition, but on the market conditions we see, we're quite happy with the development.

We also delivered a very strong product offering in Marine introduced in 2024, which now was materialized into 0 production and customer deliveries, which we are now in commissioning and start of deployment. 2025 was about testing and proving that PowerCell can execute, deliver and remain financially disciplined also when the market is uneven.

And to that we stood the test. And going back to a year ago, when we started -- when we reported Q4 2024 and gave the introduction to '25, we said that 25 is a slightly different year because it's more even over the quarters.

We don't have the hockey stick revenue, which is then why we see that the quarter 4, compared to quarter 4 last year is a lower top line, but the full year is according to our expectation, and we're happy to see the progress. With that, I will hand over to Anders and a more detailed presentation on numbers.

I will not skip so many slides at once. I will start here with the fourth quarter and the numbers. Now Richard has been through basically the numbers and everything that's in essence. I'd just like to highlight 2 things, I think that's still important.

When you see the numbers for last year, SEK 144 million, the majority of that number is from one order that we had in -- very late in the year. So as in this year, we have had several orders rather in the fourth quarter, building up the SEK 95 million.

And then I think what we did after Q3 or when we presented Q3, we felt urge to give some guidance on the cash situation and the cash flow situation because we all realized that we have seen 3 quarters in a row where the path had been quite downward.

And we wanted to make sure that you, the market and everyone around us understood that, yes, without living or giving forecasts, we would like to say that we are hopeful for the last quarter when it comes to cash flow.

And now as you can see, the last quarter came in approximately -- which I say here, in line with expectations and then everyone would ask what were your expectations?

Well, now you know this was what our expectations were, and we did our best to guide you without leaving a forecast. And that felt very pleasant to have that feeling for the company that one can say things and you see that, that's delivered.

Moving on to the full year. Like Richard said, looking at the numbers straightforward, I mean, the growth is 15%. If you reduce that for FX effects in '24, which were positive and FX effects in '25 that were negative, you end up with 25% or 24% rather.

The EBITDA level, I will get back to that on the next page. But just running through the numbers here, you see that we are basically doing better on all levels, and that includes the operating cash flow, of course, that ended up only minus SEK 10 million.

And I think every one of you that listening to us and read our report after Q1, Q2 and Q3, we're a bit nervous about this, but we are happy to be where we are. And as you also noticed, we have added liquidity through this new credit facility on customer projects to our, let's say, asset bank when it comes to liquidity.

So that feels good. Then just for the comparison because Richard said in his introduction that the underlying business is growing. And I think the stress when the underlying business is growing, that important to recognize how -- what the differences really are.

If we eliminate the FX and the extraordinary items, and I think when it comes to extraordinary items, you that have followed us recognize that last -- in '24, in Q2, there was a huge ticket on SEK 30 million plus to the profit.

And in this year, in Q3, we had a negative similar thing basically related to reorganizations. If you eliminate all those and the FX effect for the 2 years, the underlying growth, 24%, like Richard said, but it's important also to recognize that EBITDA change 24 to 25 on that same account is 79 million.

And that is an effort that I think should be recognized. With that, Richard, I'll leave it back to you.

Perfect. Thank you. So then we can also promote upcoming events, interim report quarter 1, which will be on April 23, and then the AGM here in Gothenburg on May 11, which we obviously want to invite as many people as possible. So if we then look at what we see over the year and what 2025 gave us, we see that we have proven resilience.

Once again, EBITDA on the full year, the lower top level absorbed and we managed some headwinds. We are happy with the outcome. We are pleased to see that we have a resilient organization and a rather strong business model. But we're not yet at the ambition level that we want to be.

And this is something that we're working quite hard on. And 2026 will be more of a normal year in PowerCell context where we most likely will have more of a hockey stick because you don't have the same even distribution over the quarters.

This is also how it is to run a business in a technology shift. And reflecting a bit on this one, if you look at the market context, we try and visualize this with the navigation of a sailing yacht where you -- sometimes you have the headwind, you could have the tailwind, you have the current running with you.

As we said, we are not operating in a one market scenario. We are really working hard to optimize what we have to work with. So what we see right now is supporting us is the awareness. We see regulation supporting the transition, especially in marine.

And we also have a number of proof points from the use cases where we now have a rather strong deployed product portfolio, which are out in operation, giving us really, really solid proof points to more demanding customers.

What is a headwind or ahead current is that we see a lot of capital discipline. We see risk averse money on the sideline. Also, of course, the macroeconomics and geopolitical landscape is not supporting areas where you are investing into new technology.

But at the same time, we also see the cost and the drivers for especially marine, and this is something that we have been a bit surprised on the strength of this. Regardless of IMO postponing a decision 1 year to impose new emission regulation, EU has already moved ahead and EU have stricter policies than what the IMO proposed.

So if you break this down, cost for fossil fuels for the marine industry will double between the year 2024 and 2030. And then it will be equally amount until 2035. So you have an exponential cost development. This is driving a change of behavior. This is driving transition.

So when we signed the order with GAMMA [indiscernible] in quarter 3 or quarter 4, just in the break there for the bulk carrier, that was a breakthrough order because we see that they can deliver breakeven on the new technology rather early. So their ROI is well on this side of 2030.

We see more of that going forward. So we have a strong support from regulation and also the early movers proving that this is really, really working. We also see the particle emissions is a growth driver because of the health effects, especially related to port and harbors and urban dense areas, where respiratory illnesses is causing massive cost to society.

That is now the #1 driver compared to C2 that was the driver up until 2022 and 2023, in combination, of course, with energy resilience in society. So looking at the market going forward and what is resisting us is, of course, the risk-averse capital market.

But what we have seen from 2021 until now is the -- what we call a market normalization phase. We have now seen a washout event where the more sustainable business solutions and business setups and strategic positions will survive. And we feel that we're quite well positioned in this market going forward.

If we look at quarter 4 segment and what was in focus there, we can now see that the MS225, the marine systems are delivered completely to the customer and now are progressed into commissioning and deployment, which is quite encouraging.

We also reported a SEK 43 million methanol-to-power order secured with a European shipyard, which is confirming the commercial traction beyond just pure hydrogen, which is important to us because that is doubling the availability of fuel, which is important to be able to scale up the new technology. In power generation, the PS190 and the portfolio for power generation gained traction following the market launch, which was quite encouraging.

We have field validation agreement with the U.S.-based data center, which is, of course, really interesting to us because the data center industry is growing. It's a very demanding application.

I will not stand here and say that our fuel cells and the #1 driver for energy for data centers, but we are in the energy mix, especially when it comes to clean power for backup power and peak shaving.

So we look forward to experiencing this first installation and then come back and report on the progress. In aviation, we had a SEK 12 million follow-on order from a European Aerospace Research Institute on products and then an additional SEK 5 million on engineering services, which was encouraging.

So if we then look at power generation and why we are so happy to be able to introduce this and why it's so important to us, it is that power generation is something that is creating a second pillar to us. It's the same core technology as we use in marine. We have a lot of synergies between ourselves and Bosch, both when it comes to core technology and volume.

It is a highly competitive product portfolio. It is optimized in its performance and price for power generation, and it has a very interesting package when it comes to size, performance and functionality, especially in combination with the software platform, which is the integration platform that is really, really important in order to optimize the asset of a fuel cell.

So with that core component and the software platform that we are promoting to the market, we give a package that is easier to install and you can better optimize over the life cycle, extending durability, extending lifetime and also optimizing our fuel efficiency.

So we have a very, very strong product package to the power generation market. And the contribution to PowerCell is, of course, that it gives us another growth potential. It is an extension of our core business without the capital spend of start of production and market introduction when it comes to the industrialization phase. So really important proof point of our asset-light business model. Marine and Power Generation, it doubles the growth potential for us.

And it's really, really valuable for us to be able to protect our EBITDA and protect the bottom line if the market is sideways or slow, but it gives us a really strong opportunity to capture growth when and if it happens.

It also gives us an opportunity to continue to protect the breakeven margin on around SEK 400 million that we have proven this year. So expanding without adding too much of additional cost or fixed cost is, of course, important in the market conditions that we are operating in.

Briefly touching on the underlying market and what we see in different segments. Marine is continuing to be the strongest segment for us. We have the most clear business cases. We have the first customers that can clearly define their breakeven point.

And we also see now an infrastructure that is supporting more growth with availability of hydrogen in port and harbors.

2025 was actually a year where you saw more final investment decisions regarding hydrogen production than we've ever seen before. So marine is continuing to be the backbone of PowerCell short term.

Power generation, the addition of the product portfolio that we launched is really important. And hopefully, we can have the same development and traction as we did when we introduced the marine portfolio, and that is a focus area for 2026.

Off-road is continuing to be a segment that we're following and not necessarily actively developing. A bit slow. You see some traction in rail and locomotive, but other areas, we have customers operating with our products, but we don't really see the traction that we do in marine and power generation.

Aviation is a segment that is, as we have said before, it's not our volume segment, but it is the segment that is qualifying new technology and pushing the boundaries on safety, robustness and quality.

We have seen ZeroAvia communicating that they are scaling down some of their cost portfolio. What they have protected is the development and certification of the fuel cell driveline, which is, of course, where we are operating. We are continuing to supporting them, and we are looking forward to completing the certification.

But it is sometimes difficult for heavy capitalized companies in that energy transition to continue full speed ahead. So seeing them completing a new funding round was good. It was fortunate that they have decided to protect the part of the business that is focused on what PowerCell is doing.

So if we look at 2026 and how we continue to build the company, we have a very clear strategic focus. We need to continue to leverage the platform, the systems and the product that we have in production today. We need to continue to focus on growing.

We need to grow the top line. Right now, we are at a position where we have a really strong leverage on growth, being able to protect breakeven at a low level, also means that when you see a strong growth going forward, the leverage is going to be quite interesting for us.

The industrial partnerships are important to us. We need to continue to build business and market and volume through the larger OEMs that we're operating with. And then fiscal discipline is going to be in focus also for 2026. It's going to continue for PowerCell. And I'm happy to say that we have proven that resilience in 2025.

So 2026, we are focusing on staying the course. It's going to focus on real demand and the practical applications. We are going to continue with the step-by-step progress. Positive EBITDA is something that we're going to focus on and trying to protect really, really hard for 2026.

We are proud to say that we have an operational model that is remaining lean and cost discipline. You need to bear in mind that starting production as we did in 2025 comes at the cost, not necessarily always a financial cost, but there's also a cost and challenge to the organization.

And to see that we managed to start production, deliver on time to customer and come out protecting the bottom line is something that I'm extremely proud of, and that is a new phase for PowerCell.

So I'm really happy to see that we are progressing. The focus for 2026 is, of course, that we need to be very strong industrially. We need to have credibility as we are moving to customers that are really demanding. We need to broaden our commercial footprint.

Power generation is one aspect of that. And then, of course, a focused sales effort into areas where you see traction, India, Middle East and Europe, of course.

Summarizing PowerCell, we are built for volatility, but we're also built to capture the opportunity that we see there.

And if I'm reflecting on the Q4 2025 compared to the Q4 that was my first report 5 years ago. So this is actually the 20th report that I'm doing. What we can see is that the value creation, and this is where running a company and reporting numbers, numbers tells a story.

Numbers can also share the history and the progress of the company. In 5 years, the Q4 report in 2020, which was summarized in the full year, the development from that point until now is a completely different company, progressing product portfolios that are optimized and industrialized for specific segments, building a completely new company where you have industrialized processes, you have output of demanding industrial components that are put into operation in OEM applications.

But more importantly, is the internal value creation because the revenue in 2020 consisted of some throughput revenues that was really not value creating in PowerCell.

So growth is from that point until now, 720% when it comes to the value-generating abilities of PowerCell, where we go out and sell something, where we have designed something, where we are producing and delivering something.

And those 720% really tells a story. And to be able to do that and leverage growth and deliver a positive EBITDA for full year, it is, of course, something that we're quite happy with.

And then we say that we have not reached our full potential. We have more ambitions going forward. But if that ambition is completely fulfilled in '26 or '27, that is also up to the market conditions to decide.

And this is why we build a company that is able to protect bottom line if the market is soft, but also to act on the opportunity going forward.

So with that, we open up for questions on 2025 and Q4 report.

[Operator Instructions]

So one question that is coming in is why haven't we uncovered the full power generation lineup? Will HTS be part of that lineup?

So good question. The market introduction we did with power generation indicated 2 products that are available immediately or 2 system products and then 1 complete delivery. We have a road map to introduce more solutions, most likely with the higher power rating and also with some new functionality.

So continuing to build that portfolio and expanding to be able to provide value to more customers is also part of the market introduction. We also want to see where we get traction. So we are not overinvesting too soon. So we are going to continue to build more products and more offerings into the product portfolio to be able to continue to see where we see traction and where we see real customer value.

HTS will most likely be part of the lineup going forward. But as we have indicated, the development cycle is that the HTS will be commercialized and industrialized sometime around 2028. So it will be part of the lineup, but not in the short term.

So one question from Stefan is he missed the reason for decrease of sales in the last quarter. How are we going to strengthen the sales channel? And he's also asking and commenting that he's not seen and heard a commission situation.

A good question. As we said, 2025 was a different year compared to what is a normal year for PowerCell. And I would say for the whole industry when you're working in the energy transition. Quite often, you have a hockey stick development over those years because they are quite often budget driven, quite notably in China, where you saw a very low activity in the second half of 2025 because that was at the end of their 5-year plan.

In October, they communicated that hydrogen and fuel cells will be a very important part of the new 5-year plan, which is now then in place and is going to accelerate sales and volume in China. So it is the nature and the conditions of the sales distribution.

So in 2025, we had more of the large orders, as Anders commented, we had 2 really big orders that were evenly spread throughout the quarters. This year, we still have medium-term and large orders, but they are more centralized throughout the segment. So volatility will continue to be part of the segments.

And in quarter 4 this year, the volume was lower than quarter 4 last year. But for the full year, it was a rather solid growth.

So it is about the distribution between quarters. And this is also one reason why we're not making forecast because it is difficult to predict exactly how the distribution will be throughout the different quarters, especially when you're still a very small growing company. That means that specific orders can have a big impact, whether or not they are fulfilled and delivered before a quarter or after a quarter.

So we're continuing to see volatility, but we feel very solid in the performance and that we have a good growth strategy. And then the sales, we have an extremely strong product offering.

In Marine, after the introduction of the Marine System platform, we have an estimated 80% to 85% market share. After introducing the power generation lineup, we immediately signed a number of orders. No big volume orders yet, but we are hoping to have the same precision in that introduction.

And that is because we are we are quite determined and focused on making sure that we capture end user value and not just selling products. But still, the proof is in what we deliver going forward, but it's a really good question.

So one question from Carnegie. Given the current uncertainty around customer investment timing, the marine project execution and the ramp-up of power generation with Bosch, what are the key factors that would determine whether or not 2026 lands on the high versus the low end of the outcome range?

A very good question. A number of aspects to answer that question. And the question was well articulated because Marine segment is quite often projects with a longer cycle. When we deliver something, it goes into a vessel that is being built and the build period is between 2 and 3 years. Quite often, we deliver our hardware much earlier than the final commissioning.

So we have a shorter time to market than the actual vessel built, but it is a slower process. What we saw in 2024 and what we continue to see is that we have a rather short time between order and delivery also in Marine, much shorter than in the past.

We also now see with the new emission trading into effect in Europe, we also see a market opening up for retrofit, which could accelerate the order to delivery in Marine.

But that is also why power generation is complementing our portfolio in a nice way because power generation has a much shorter order to delivery cycle. Quite often, we can deliver something and it can be up and running within 2, 3 months. You don't need to wait for a vessel to be built, commissioned and put into operation. So that is complementing it.

So I would say that what would determine whether or not 2026 lands on the high versus the lower end of the outcome range is the distribution between marine projects, marine orders, power generation and, of course, IP, royalty and engineering services because all of those are also very short turnover business.

So product mix is going to determine the outcome. We are quite confident in the long-term development and the long-term ramp-up, but the short term is definitely decided by the product mix.

And this is where we are going to be clear when we get the orders on when the revenue is occurring and how it's distributed. But a very good question from Carnegie.

From Ari, we have an update related to Bosch and opportunities and threats.

I would say that our collaboration with Bosch is a very solid foundation for PowerCell. The fact that we have a collaboration with one of the really strong industrial partners in any industry is something that gives a solid backbone to PowerCell.

I have been in industries like this for 25 years. I can honestly say that without PowerCell, without Bosch, PowerCell would not be in the situation we are right now. They have matured our offering with at least one industrial cycle.

So that is really, really valuable. And then the opportunity, China is going to be an important market for hydrogen and fuel cells. China is the #1 market when it comes to investment into infrastructure into investment and availability of hydrogen, and they have a clear strategy on how hydrogen is going to be part of the energy mix in society.

Having Bosch as our sales channel in China is valuable. So working with them and supporting them in leveraging that opportunity is going to be really, really important. Threats, I don't see any immediate threat. I view Bosch as a very strong owner and industrial partner.

So one question from [indiscernible] is, are the Norwegians very fully invoiced and paid now?

I would say no to that. And we have some deliveries and commissioning left to do. And in that, we also have payment milestones. So revenues and liquidity is going to also affect 2026 in a positive way.

What would you say that this year is overall better in general compared to last year? Question from Fredrik.

A good question. I would say that the fact that we managed to achieve what we did in all aspects of running a company is what is overall better. I mean, first, the underlying growth.

Adjusted for FX, 24% with the FX fully affecting us plus 15%. It is a growth year, not on the levels that I want to be because I want to grow faster.

But at the same time, doing that organically on a slower market, it is still a good year. But doing that, delivering positive EBITDA for the full year and also doing a full industrialization and start of production is a complexity that is not easy.

It's been a tough year here at Ruskvadersgatan. The employees have really, really pulled through. Some areas of the company or the company as a whole has sometimes done more than you can ask for because it takes a lot of commitment to be able to start production.

And anyone who's been in an industrial company knows the pain of labor to do that. So being able to pull through and still protect EBITDA, have a strong operational cash flow in the end of the year, delivering on what we said, I think, is what makes this year overall better.

But we always want to do more. So hopefully, we can come back and show even more progress. But it's been a year where we've proven organizational and commercial resilience. And that is something I am quite happy with, and that gives me comfort going forward because it's continuing to be a difficult market out there.

Hopefully, we can see some progress in the macro effects. But unfortunately, that is not under my responsibility. Anders, do you see any questions that you want to know?

Well, I think there are some items that I've seen some questions popping up around. That is changing in assets in the cash flow analysis that is predominantly related to the payers of the license fee from Bosch that turns into long-term assets.

And I also noticed that some of you have comment on the fact that in our notes where we do the segmentation reporting, royalties and IP gets a bit confused.

In Q4, we had a classification of the royalties/IP revenues going into the service line because in the agreement with Bosch, we changed -- which slightly changed the terms and condition on that arrangement, which made it classified as IP for the most in Q4 rather than royalties.

And that is the confusion. Otherwise, to clarify it, the amount of money that we received on IP and royalties in Q4 is approximately equal to what we received last year in '24 for that same items. But we will make sure to take this confusion on our segmentation reporting away that will change that going forward. So that's more clear directly.

So let me see if we have any more questions. I think we have covered them all. So if we then close -- here we had one -- let's see if we have one more.

So from Carnegie, if market development remains slow, what cost or prioritization levers can you pull to continue being EBITDA positive without compromising long-term competitiveness?

This is a very good question. I should probably have noted that one, but in the positive sense, there is one thing I'm really proud of and also grateful for the support that we had from the Board.

It is a balance point of not reaching EBITDA positive by being anorectic by really scaling down. The fact that we have continued to invest in new products that we're introducing to the market as well as core technologies that will be the revenue engine from 2030 and onwards, I would say that balance point is really, really important.

With that said, I was commenting going back to 2020 and reporting on my quarter 4 2020, which was my first report from the previous year when I was not here. We have more or less the same cost structure as we did then. But now we are producing industrial components.

So we have made a rather interesting transition in the company. We have more levers to pull. We made a restructuring of the management team last year, which is going to have a positive effect on 2026 when it comes to cost structure.

We have cost levers to pull. Now with production, if we see a slower development, we can ramp down the shifts that we have in production. We are going to protect sales and business development because that is what is really the important thing right now.

We have levers to pull also when it comes to investment, which we can push or postpone. So we have a number of levers to pull. But the balance point, so the question is really well articulated. This is the #1, I think, obligation I have is to protect PowerCell and balancing between the short-term performance and protecting EBITDA, still being able to catch the potential growth that is out there, depending on how it materializes between product mixes.

And continuing to have strong competitiveness going forward because the energy transition and any technology shift, it is a marathon. We are now starting to see some tailwind when it comes to awareness, regulatory support and also infrastructure and availability of critical components like the hydrogen.

But it is a marathon. So thank you for asking that question. And I should probably have mentioned the balance point and how I am happy with the support we get from the Board in doing this.

But this is something we need to come back to going forward over the year because defending this balance point is what we do in the management team.

So with that, we have a company now that is built to endure, adapt and win as this transition unfolds. What we do is not easy. Business development in technology requires a pioneering mindset, but also clarity to see things for what it is in the short term.

We see a rather clear path going forward. And the simple golden rule for us as a growth strategy is to grow number of installations in the market as well as grow the value creation per installation.

When we do that, we capture the volume that is out there, we drive more penetration in the market, and we will also see growth that is sustainable and that we can leverage. So we are looking forward to 2026 that is going to be important to us, where we hope to prove our competitiveness as an industrial partner to our customers and also to continue to deliver growth that we can leverage and protect both bottom line while still being able to capture the potential that is out there. So thank you very much. Thank you for joining us. And as always, you are more than welcome to visit us in Gothenburg.

Welcome to the PowerCell Group Q3 2025 Report Presentation. [Operator Instructions] Now I will hand the conference over to the CEO, Richard Berkling and CFO, Anders During. Please go ahead.

Good morning, and a warm welcome to this quarter 3 report on what is a very busy day on the Stockholm Stock Exchange with a lot of companies making their presentations. So we're extremely happy to see that many joining us at PowerCell. So we have closed quarter 3, and we are quite happy with the outcome. Previously, in quarter 1 and quarter 2, we reported with the headlines of steady pace through rough waters in quarter 1, which actually gave a good description on how quarter 1 played out.

Quarter 2 had the headline steady pace through improving waters, really showing that we saw improvement in the market. And now the third quarter, what is describing the headline is the steady growth and solid margins, which actually described the company quite well where we are at the moment. We saw good growth in quarter 3 compared to 2024, up 90% compared to last year. Year-to-date, it is up over 50%, which is quite encouraging.

Gross margin is continued to improve, although not on record levels, but we have talked about this before that we see volatility over the quarters. Also encouraging to see that the rolling 12 months revenue remained over SEK 400 million, which is the top line momentum we want to have in the company. Also encouraging that we protected the EBITDA in a way that we are still positive overall [Technical Difficulty]. Can you hear me?

Yes. Go ahead, please.

I was kicked out for some reason. So continued positive EBITDA on rolling 12 months, also very encouraging. This is one of the focus areas we had for PowerCell. I would say, since the beginning, we need to show a breakeven level also in the early stage of this technology shift. So this is quite interesting. Anders will go more into details on this. We managed to leverage on the fixed cost base and drive growth and then despite having a slightly lower quarterly volume. So we're really happy with this progress that we can now show.

Also some orders in quarter 3, although I would have expected or hoped for more, but it's also quite volatile in this market. What is encouraging is that we are continuing to see more OEM orders in the marine sector, where we now broke into the bulk carrier segment with the first -- world's first bulk carrier to GMI Rederi in Norway. So quite encouraging to see how the quarter was playing out. What we are in is a time of very focused execution where we also see then a quite good tangible process. I would say that the middle section here, where we talk about the operational resilience, is what is most important to me.

We managed to provide a positive EBITDA on rolling 12 months because we are now in delivery mode. We are now actually tomorrow shipping the final shipments to our large Italian marine OEM, which means that we have completed deliveries of all those orders. And now in quarter 4, we are ramping up the final production assembly and will complete delivery to Torghatten up in Northern Norway with a large 2x 6.4 megawatt ferry installation, which means that we have now actually managed to build a company that is industrially stable.

Starting production as we did in April this year is always something that you need to ramp up and industrial stability doesn't come for free. So the fact that the organization has been able to pull this off, deliver high quality on time or even before time, is something that is a very important quality mark for PowerCell. So the focused execution is something that I think that we should talk more about the PowerCell. Quite often, we talk about growth and we talk about the innovation of the company. But being an industrial credible partner is something that is going to win the orders going forward because with the OEMs that are placing the trust in new technology, they also need to place the trust in a very, very stable partner.

So this is something that we're quite happy to be able to provide and also report. We also see, as we said, repeated demand around the Marine System 225 that we introduced last year in June. And that has been a very strong commercial success based on the fact that it is world-leading when it comes to performance, when it comes to energy density and when it comes to the value it creates for the customers that put this into operation. And then for PowerCell, once again, the operational resilience that we were able to start production and work on productivity, efficiency protecting the gross margin, which is extremely important for PowerCell going forward.

So the combination of this is something that I'm quite happy to be able to report. With this, I would like to hand over to Anders on the numbers, and then I will come back and talk more about the outlook and how this connects into the broader context.

Thank you, Richard. I will take the opportunity to just run through the numbers. I think these numbers, after having listened to Richard, are in a way that, of course, the 19% growth is something to notice. I remember us saying in the beginning of this year and even at the quarter 4 report last year that we would find some more stabilization between quarters. And I think the third quarter is another evidence for that the more even, let's say, turnover in each quarter is there to stay for the future.

Gross margin is slightly up. That is -- I mean, to the volumes we have and to the product mix we have when we sell, the variation of 6 percentage in a single quarter is not for us anything that is unexpected. It's more important to look at it when we get to the accumulated numbers and understand why the changes are there. EBITDA, I think, it goes without saying that we are happy with only being at minus SEK 2 million, given that we have taken SEK 5 million in provisions for the reorganization that we have announced. And I think the burning platform, and that what everyone is more concerned about listening to us today, is the operating cash flow.

I think we have been quite explicit in the report describing what has happened in the first 3 quarters this year. I think that having listened also to now Richard saying that we're in final deliveries of immediately one of our larger orders ever and then continuing final deliveries of the second one, everyone can understand what that will do to cash flow as we progress into the future quarters of this year and the beginning of next year. So we go on to the accumulated numbers.

We look at this point basically on the gross margin. Everyone recognized from the second quarter that we had a large deal with Bosch that brought in a lot of gross margin to us, given the fact that we were selling IP. And of course, for the remainder of this year, we will still see, on an accumulated level, a very high gross margin based on that deal. That is a level that, if I would guide anyone on this thing, may not be contained over the near future. We hopefully get back there later on. But short term, in each quarter, that level will not be maintained. I think it's important to also see that if we look at -- Richard mentioned operational leverage, you can claim a lot of things about what different things derives from. But one thing is certain that given the turnover we had last year, given the turnover this year and the change, excluding for all unusual items in the different accumulated book numbers are about SEK 88 million. And that for us feels very strong, acknowledging that at least half of it, when you make comparison, derives from the deal we made in Q2 with Bosch. But still, it's a very impressive for us at least change in how we manage profitability and earnings in the company.

And as I mentioned and as I've highlighted to the right in this picture, background being given and everything that we feel completely comfortable about is that we have passed a lot of what has been described as the reason for building up working capital, and we also come to a stage where we can see that we are delivering and what follows with that. So moving on to the next one. It is basically saying that we feel comfortable having a stable path. We grow 30% plus in our industry. If you went back 5 years, I guess, that would be viewed as very humble. If you flip it around and say that this is an industrial company in an earlier stage of the market, it's a number that I feel that we are very comfortable with.

And also that we have brought on rolling 12 months EBITDA to a positive number of SEK 21 million, and that makes us feel comfortable for the future as well. Having said so, I will leave it back to Richard for the continuation of the presentation.

Then also reminding you on the upcoming reports, quarter 4 report February 4, 2026, and then quarter 1 report in 2026 on April 23. So then if we look at the segment highlights and what is building up the result and the business at the moment, we see good commercial traction in Marine, all subsegments. We saw the order from GMI Rederi, which was quite encouraging because that is, as we said, the first break into the bulk carriers. We need to mention then the IMO decision or postponement of decision last week. It was a disappointment to the industry. Many put their trust in the fact that the IMO would regulate the net zero tariffs on a global scale. However, in Europe, we already have in place even stricter regulations.

So to me, I'm not too surprised that they delayed it because it takes time to change industries in a technology shift. So you will always have resistance. So hopefully, a year from now, they will have a resolution that is signed that is perhaps a bit more easy to adapt for the operators. But in the meantime, we continue to see a strong demand from especially Europe, but a lot of interest globally as well. Power generation, we were quite happy to yesterday report that Zeppelin Power Systems placed an order for 2 different systems implemented in Europe. The fact that they are now exploring to different applications is quite interesting because power generation, as we have pointed out, we believe that power generation will be the largest segment going forward.

The difference from marine is that we have still not seen a trigger where an OEM is putting a stick in the sand and said, now we do this. But we are seeing a more clear commercial landscape emerging for backup power and peak shaving applications. There is a lot of discussion on data centers. Of course, we have a quite close collaboration with parties out there. But as I said, we have not seen the trigger where somebody is really putting a stick in the sand and say, now we do this. So we try to contribute with that. We try to challenge the industry, and I will have later on in the presentation some more news on what we will do in that segment.

In aviation, we continue the certification process with ZeroAvia and other aerospace partners. They're not the only one who are in certification process. What is quite encouraging is that now ZeroAvia actually have delivered their first systems to customers, and they will be put in operation in 2027. So now we have a deadline on that one, which is really, really encouraging. This is the first information we have seen from them on when this will be put into operation. What we also have seen is that we have now industry validation that our strategy with the medium temperature PEM, which is our next-generation fuel cell stack is the good enough step for larger turbo aircraft in the next generation.

So more interest in our collaboration together with Honeywell on the Newborn platform, which is already materialized in the commercial agreement in marine. But for aviation, the fact that we can do with the medium temperature is a technology step that is really valuable to PowerCell because that's where we have invested our position from a technology perspective. Going once back to the operational leverage. One reason why we are able to show this rather good underlying progress when it comes to operational leverage is that we have had for 2025, a strategy to consolidate. And we have consolidated to be able to accelerate.

We have consolidation of product platforms. Previously, it was a bit fragmented, which was a risk for a company like PowerCell because you might end up in doing projects everywhere. Now since the introduction of MS 225, we have seen now a serious delivery, which you see in the bottom there. Start of production in April. We now have more than 100 systems in order and in the pipeline. As we said, we are completing the delivery to our Italian shipyard this week, tomorrow, which, of course, is one of the reasons why we have been tying up working capital to the extent that you have seen in the report.

Now when we move on to delivery to the Norwegian ferries up in Bodo that is just one more proof point on how well the consolidation strategy have worked, which is also seen in the gross margins of PowerCell. But then in quarter 3, we also reported a change in the management group, which is also a consolidation of the organization. When building up a company like PowerCell, we changed more or less everything in the last 4 years, building up technology portfolios, product portfolios, operations, marketing, sales. I wanted to have a large management group to be able to cover all the aspects of PowerCell.

Now we are more mature. We now see a more clear path towards growth. And then we need to have a more streamlined operational management team, which is also why we have consolidated the organization. So this is to increase speed and acceleration and also clear out more accountability now when we actually will speed up everything we do. Anders talked about this before, the fact that we have growth without cost base inflation, I think, is really, really important. Many companies like PowerCell when they grow, they tend to overinvest and always scale up with more and more resources.

We are actually going to run 2026 on a lower overhead cost base than we have had before, which is also one proof point of this consolidation strategy, which is also then, I would say, a mitigation to make sure that we can defend both EBITDA and EBIT breakeven on lower levels than most of our colleagues in the industry. So the strategy is, of course, being profitable and scale through discipline. This is something that is in the DNA of the company, but you always need to be there and protect it, especially when you grow. But we see now that we maintain a breakeven level at around SEK 400 million of top line revenue.

So then looking at the product strategy and next-generation platform. This is now something we have had in the reports a number of times, but it's worth reiterating. We see that the Marine System 225 platform that was introduced in June last year has been very successful. I would say the most dominant product in the marine industry for fuel cells. Now we are complementing it with a CE marking in quarter 4, optimized for power generation segment, which is a very important proof point and a quality stamp for PowerCell.

We continue to see interest in the methanol reformer, both cruise ships, service vessels [indiscernible] and but we also see a growing interest from power generation. The main value there is that you get more energy on a smaller energy storage footprint. So where we have backup power for potential data centers with hydrogen, you need 1/6 of the size, if the energy is stored as methanol. So there is a large interest in this technology from the power generation segment as well. Also availability of methanol is quite good in different regions of the world at a low cost.

So this could be something that is enabling growth in areas where you don't have access to hydrogen. And then power generation. In quarter 4, we will have an enhanced product offering in power generation, more optimized for that segment. It is built on the Bosch collaboration that we communicated in quarter 2, to be able to attract more price-sensitive applications. And this is something that is quite important in a technology shift that willingness to pay between segments are different.

Marine commercial, for instance, have much higher requirements on performance, quality, robustness, et cetera, which makes the product there more expensive. For power generation, we need to have something that is a bit less expensive. It's a bit more price-sensitive segment, and this is where we now will introduce a new product platform in quarter 4. And then as we said before, we have a strong interest in our next-generation fuel cell stack, which is, I would say, our guarantee for future earnings, which is quite valuable to PowerCell.

So reiterating what we said before, the building of the strategic foundations for PowerCell is that we have a platform system and product readiness, the ability to actually have industrialized components because right now, we see growth with a rather short from order to delivery. The demand is a bit volatile, but when we see an order, it's rather short delivery time. And this is really important to us that we are able to meet that. This is also why we have tied up a bit more working capital than perhaps we would have liked, but that is a trade-off that you have to do as both CEO and CFO in a company like PowerCell.

It's also important to have the industrial partnerships because the OEMs will drive growth in the industry. They are the Tier 1 to the end user, and they need to invest and be the guarantee of technology, not just as a delivery but also over the life cycle as a service partner. We support with service to them as the second tier. And then, of course, the fiscal discipline. This is really, really important for PowerCell. And we will protect breakeven at low volumes, more or less regardless of anything.

So if we then look back to what we set out to achieve in 2025, this was part of what we have said as the focus areas for 2025. So one focus was to reach breakeven on rolling 12 months. We can check that one. We also had an ambition to continue to grow with OEM contracts because we believe that, that is what we give the most sustainable growth. Also, those customers put products in operation. So they are proven and tested and actually validated that they generate value to the end customer. That one with the 2 recent OEM contracts that we have signed in quarter 2 and quarter 3 is quite encouraging.

We have said that we need to scale existing product generation. And this is also what has now been generating the growth and also the fact that we reached breakeven. We are doing this, while still investing into the next generation. And I think that the last sentence there is quite important that we are proud of the ability to balance innovation, industrial stability and leverage growth. It's quite easy for a company like PowerCell to optimize on either/or.

But the fact that the company has been able to provide this and also that we have had the support from the Board to pursue this sometimes complex strategy is something I'm really happy about because it is not just giving us the fact that we have breakeven today on low volumes. But with the next-generation products, we are now also well positioned for what will happen in future earnings. So that balanced approach is something that I'm really happy about, and I'm proud that we have had the support from both Board but also the commitment and the, I would say, brilliant performance from our team, both in operation and innovation and technology and sales and marketing.

So really happy with that progress because it's -- we need it. It's difficult to do business in any technology shift, but we have proved that we can do it and we can actually breakeven on very low volumes. So with that, we open up for questions.

[Operator Instructions]

Now I have to admit that I don't see the question. Let me see here. Here we are. Do you have any concrete initiatives in the data center area?

We know that Bloom Energy and the situation in the U.S. is a question from [ Ari ]. Yes, of course, but as always, we cannot talk about things before they have materialized. There is a massive interest from the data center industry. And this is not only for CO2 emissions, but it's also for energy resilience.

In many areas, the grid is full. So getting access to the grid, getting access to stable electricity is quite difficult. So replacing some of the old diesel generators with either fuel cells or something else is quite attractive for the data center operators. And they also have rather high margins on their own business, so they can do this. So we see a lot of commitments from the larger players. We met with some of them in New York during the New York Climate Week. But as I said, it is a combination of getting the whole value chain in position. You need to have supply of fuel, you need to have the grid access, et cetera. So finding the right balance point has been a bit tricky. But in quarter 4, as I said, we will come back with a more clear product offering and hopefully some clarity also in the potential that we see in this industry.

So let me see here if we have more.

[Operator Instructions]

Anders?

Yes.

Yes. We had a question, of course, on the cash position and how we see the end of the year and the beginning of next year, even though we don't make the detailed forecast, do you want to comment on that one?

I think it's without making forecast, which we will try not to do, but we would like to guide everyone reading the report as we understand that this is one of the key questions from a financial standpoint. And I think the efforts we have done in the first 3 quarters this year would -- either way you would have done it, accumulated more working capital. On top of that, we also spent money on those proceeds that we discussed during the share issue last year.

And following what Richard just mentioned in the beginning of the presentation that we are in final delivery stages in 2 large projects. Obviously, those 2 large projects has terms and conditions included in them that indicates that once delivered, we get paid to not giving you any guidance, but with more stating that we feel comfortable about those dynamics. We are comfortable at this point in time.

Very good. And then we had a question from [ Niklas Holmgren ] here. Once again, regarding the data centers, do you think you have the right product offering to make this a significant source of revenue for PowerCell over time? So far, it's been mainly SOFC manufacturers like Bloom Energy has been successful in this space.

That is a very good question, and it requires some explanation. One reason why our technology, the PEM fuel cell complements the SOFC is that SOFC is a very stable installation. It doesn't take dynamic load well. So where we see a potential growing demand is for backup power and peak shaving because that's when you have the fast dynamic load that the PEM fuel cell is very strong with. The solid oxide fuel cell cannot do that because it takes a very long time to ramp up and ramp down. So there are different applications.

So I think that the different technologies complement each other. And we believe that PEM fuel cells and the backup power peak shaving is a very relevant application for data centers because there are today very few areas globally where you can fully rely on grid access. So we believe that our technology will have a strong opportunity for the data center segment. With that said, as we presented here in the report in quarter 4, we will come back with a more clear product offering because we believe that the price point is slightly different from other segments. And we are now preparing an introduction of more targeted products to be able to capture that growth. So it's a very good question, and it gave us an opportunity to also explain the difference between our technology and the one that has been prevailing so far in this segment.

Then also, we have a question on Torghatten. With Torghatten final delivery, can you comment on the service agreement with Torghatten? Yes, I can. Since we are completing delivery, we start delivery now in quarter 4 and will be completed in quarter 1. That means that for 2026, the service contract will be in place. It is a 10- to 15-year service contract that we will sign together with Torghatten. But the details of that contract, we need to come back to when it's signed because it's still under discussion.

But of course, now when we are getting more large installations in operation with customers, the service side of PowerCell will be more interesting because now we will have a service revenue and a service opportunity that has been lacking before. And this is also one positive benefit of moving away from the early stages of project execution to more normal industrial applications and customers that put products into operational service. So it is both an opportunity for revenue, but also an opportunity to learn more and also show the industry how this works. So it's a good question.

We had a question from Rakesh at Chevron Shipping. How do you expect the IMO Net-Zero talk failure to affect future orders?

Well, since we didn't see any effects on the contrary that we had a positive effect because the IMO was not signed yet. This was just a proposal. It's been postponed now for 12 months. I think that the -- what we see now is that certain areas will wait. That is for sure, but I think that they waited anyway. So the segments and geographical areas where we see growth like Europe, that will continue because Europe already, as we said, have a more strict regulatory framework than what the IMO proposal was. So it's more likely that we see a continued hesitation in the U.S. for certain marine applications.

But on the other hand, there are also those who want to accelerate because this is actually making business sense in certain areas already now. So we will continue to follow this and monitor, but we don't see any immediate impact on the order book or on the leads funnel that we are operating.

I think that, that more or less concluded. We are now 1 minute past the deadline. So as always, thank you very much for listening in. We always encourage you to come and visit us in Gothenburg at the factory if you have time, regardless if you are a shareholder or if you are a financial analyst. So look us up, come visit us. And with that, have a nice day, and see you in February.

Bye-bye.

Welcome to the PowerCell Group Q2 2025 Report Presentation. [Operator Instructions] Now I will hand the conference over to the CEO, Richard Berkling; and CFO, Anders During. Please go ahead.

A warm welcome to this summer presentation of the quarter 2 report. As presented, it's myself, Richard Berkling; and our CFO, Anders During, making the presentation. So let's dig into this quarter 2 result.

The headline is that we say that we're going from milestone to momentum, and we see that the numbers are confirming this. We have a stable growth and a rather strong order intake. Record result in quarter 2 with SEK 130 million and for the first time in PowerCell history, above SEK 400 million rolling 12 months, which is quite encouraging. We see that the order intake remained high that we are averaging SEK 150 million per quarter for the first half of the year.

For the first time, we can also present a positive EBITDA for rolling 12 months. This is an important milestone. There's a confirmation of the momentum. We can also now conclude that the sustainable breakeven level for PowerCell is around SEK 400 million to SEK 450 million, depending on the product mix. This is no confirmation that we will continue to report positive EBITDA quarter-by-quarter yet because this is still a difficult market out there. We are pioneering in a technology shift, but it's very encouraging to see that we can reach this milestone as a company in 2025.

Highlights in quarter 2 when it comes to orders is that we received the first OEM order in power generation from the long-lasting partnership with Hitachi, where they have now sold High Flex to the industry. We also had a first IP revenue since 2023. This is part of the product mix of PowerCell selling IP, but it's been a difficult market to be able to get paid for intellectual property. Now we see that easing up. This was an extension of the Bosch Automotive license that we've had since 2019.

We also saw, which is very encouraging, the first OEM order and commitment on the next-generation fuel cell stack. which is indicating not only a quite strong commitment from the marine industry to decarbonize and use fuel cells as a solution for them, but also that innovation is paying off. We're now balancing both the ongoing business and short-term growth with the existing generation, the S3 platform, but we're now starting to see the first revenues and commitments on the next generation as well, which is highly encouraging.

How we managed to do this is, of course, through being very disciplined in execution of a rather clear strategy. We are staying the course. We have remained focused on real demand and practical application rather than just chasing subsidies. We have avoided destructions and built around a common platform logic that takes a lot of courage and then we also need to extend a gratitude to the Board who has supported us throughout the years. But it's also a step-by-step process. Positive EBIT showing that we can leverage the growth, which is quite encouraging. We don't need to scale to mass market to be able to show profit. So the operational model remains very lean, cost discipline and with the flexibility without overreaching our structure and critical mass.

We also see early signs of commercial consistency, not to be confused or mixed up with traditional business where you can see recurring revenues quarter-by-quarter. Now we see the orders from the right customers, OEMs like Hitachi, Bosch and the Italian OEM that we have built a prior business with. It's also to see encouraging repeat interest around our core systems and not just that we need to develop new solutions all the time.

So this was an overall summary of how the numbers were created. And now over to Anders to present the numbers in detail.

Thank you, Richard. I think when it gets to the details here really, the way they are spell out here and in the report is, to some extent, quite self-explanatory. What I would like to share with you are some reflections I think one should be reading the report. And Richard already touched one saying that, yes, we had an IP transaction in this particular quarter that, of course, moves both revenue and profit. And like Richard said, that is nothing one can expect at that level for every quarter. However, that is part of the business model and the product mix moving forward. And I think that is important to just make sure that we all understand when we read the report and the future of PowerCell.

On that matter, it's also important for us to see that the underlying business, when I say underlying business, that is everything else, but royalties and IP. And if we look into the quarter in particular, you'll see that we have had a growth in that area as well, and we have had an increased gross profit margin on that account as well, which is very encouraging. As like Richard said, this is not promising anything by the future, but it's about making sure that we have a stable underlying business as well.

I think that we can move on to the next picture and go on the aggregated numbers for the half year from there and conclude that the same thing really is applied for the full -- for the accumulated 2025. I think one need also to recognize when I say that we had a stable gross profit margin on the underlying business, you -- that were around a year ago and even more than a year ago, you recognize that in the first quarter '24, we had a very hefty positive FX effect. We have been able to keep the gross profit margin at approximately the same level despite the fact that like you now know in '25, the positive effects in '24 for us having predominantly euros as a revenue currency has been in the other way around. So from that standpoint, we feel very comfortable with the underlying business gross profit margin. And I think that's important when you read this report, particularly when you have such a large item being an IP item.

Also, and I know Richard will get back to that later on, it's about the operating leverage. He already mentioned it, but he will get back to that. We now have a very stable platform we can stand and we can see growth from that. And I will not take away the opportunity for Richard to share the future on that one on coming slides. So I stay with that.

And then, of course, looking into the cash flow, that's important. I mean, a growing company with a lot of stress on working capital. What are the items that have affected the cash flow during the first half year. I think one thing that is very important to remember is that we amortized the loan we had, and we now have a traditional Swedish Czech credit instead, which was unutilized by the end of the second quarter and we feel comfortable with the liquidity that we sit on for the current moment. And that is to make sure that there's no misunderstanding. That's the SEK 72 million we have in cash on top of that, the unutilized facility of SEK 50 million.

Let's move on to the next page. And only to basically underline what we have just been talking about so far, we see a good trend. We're not promising things for the future, but we have established a platform for around SEK 400 million, SEK 450 million where we can make operating profit or EBITDA profitability. And that has been the primary objective for '25. And it's very encouraging to see that we -- given the product mix that we have and that we believe is the long-term product mix, we can keep that level.

With that, I will leave it back to Richard to continue the presentation.

Okay. Very good. Thank you. Just for clarity, we have a small technical issue on this presentation where I cannot hear Anders. It's not an analogy that I'm not listening to my CFO, but some technical issues where Anders can hear me and I don't hear him. So if we repeat ourselves, please bear with us.

So if we then break down the segment highlights. In Marine, we see a strong commercial pull. We received Type Approval for our 225-kilowatt system, which was according to plan. And the commercial pull is also then clearly linked to the OEM demand where we see well-articulated value propositions. We see now different actors in the value chain going out and not just claiming that they want to decarbonize by using fuel cells, but they have a valid business case behind it. And that is really a strong testament to the transition and will help accelerate growth going forward.

We also see increased competition in the segment, which we welcome because that is also a sign that things are maturing and other are trying now to go to the market where we see the best accelerated growth.

In power generation, of course, the first Hyflex order from Hitachi was quite important. We call that -- internally, we call that a trigger event when some large OEM like Hitachi is putting a stick in the sand and say, now we do this. We also see now an additional off-grid potential being built up in the industry.

Aviation in the quarter, we continue to support ZeroAvia certification process and going according to plan. This is breaking new ground because nobody has yet to certify a fuel cell driveline, but ZeroAvia is well positioned to be the first one to do this together with PowerCell.

And then, of course, we have the development in the newborn project where we see the next-generation heavy-duty platform, which we now have a commercial order in marine. But the interesting application of aviation is, of course, very strong because we have a strong demand to get that next generation that is taking our technology from the current low-temperature PEM to the intermediate temperature or mid-temperature, which is creating a lot of advantages, especially for the aviation sector. So strong interest in that development as well.

Looking then at the commercial progress. To the right, you can see a number of crates. These are 70 parcels, the largest shipment of goods to a customer yet in PowerCell history, something we're very proud of. We have mentioned Hitachi and Bosch. We have mentioned the next-generation marine system to the European OEM in marine.

All in all, last time, we talked about steady pace through rough waters. Now we can conclude that we are doing steady pace through improving waters. It is still choppy waters out there, but we have a good pace and a very clear direction. So internally, we continue to prioritize control over speed, which we have done now for the last 4 years. We also see that every order matters. We are building now trust with customer by customer, project by project and delivery by delivery. So we are entering into a phase where it's not enough to just be innovative and creative anymore. You need to be industrially stable and credible over a 10-, 15-year life cycle, which is quite encouraging for a company like PowerCell.

I also want to emphasize the operational leverage, which is one reason why we can break even at the rather low volumes that we see. We now have been growing quite well without inflation of the cost base. So we actually have lower operating expenses first half of '25 compared to 2024. We can also see that the OpEx share of revenue is down from 41% to 28% in 2 years, which is the development you want to see in a company like PowerCell. Fast-growing companies in technology tend to have a 1:1 ratio of cost development and revenue development.

Companies like PowerCell need to break this to prove that we have a sustainable business model, not just to the financial market, but also to the customers because customers need to have a supplier that will be there in 5 years' time, 10 years' time and have the ability to continue to innovate. And this indicator is extremely important to do that. And the strategy that we have been working on for the last years is to have a very asset-light operational model.

We have a very strong fiscal diligence, thanks to Anders and his team in the financial department and also a good cost consciousness throughout the company, but also a clear product offering where we can protect the margin and be very clear in the value creation we have with the customer.

So if you look at then the market signal, it's been a bit ambiguous, and it continues to be a difficult market where you always need to work for your orders. But we see now the OEM-driven growth that we have been working for the last years. We are also strengthened by the fact that IMO is updating stricter rules on especially particle emissions and greenhouse gases.

Also encouraging to see that the US Section 45V, which is an extension of the existing support to hydrogen and fuel cells in the U.S., which is clarifying that the current investments will get funding for at least 2 years, which has been an uncertainty that has been tampering growth in the U.S.

We see the more clear path we have to do that. We have still the best validated fuel cell technology in the industry, which is a strong enabler. That was validated in the 2 trade shows in Marine that we participated in June, the Nor-Shipping and Electric & Hybrid Expo, very clear and strong industry interest. We also see firm commitments to the industry, not just to PowerCell, where large OEMs are taking a stand with a focused effort and they're deploying products with a clear business case, not just for -- from greenwashing or for tech exploration. Especially in Marine, we see that the cruise, defense and offshore customers are moving now from demonstrators to commercial deployment, which is encouraging.

Looking then at what we do internally and how we're going to build growth going forward. Of course, the Marine System 2025, which now is type approved and in delivery to the customers is a very important building block. Having something that is a standard component that is industrialized with a short time from order to delivery is a backbone for any growing company. You need to have those bread and butter components.

But we also have the more high-value products like the methanol reform fuel cell installation. Strong interest from across segments, still just one order, but with a very high value, and we look forward to increase those orders and build value from that one. Once again, strong interest in what we do for the next generation, both on stack level, but now also on system level, where we have the first order from the marine industry.

So balancing a strategy where you need to be very competitive and have a high value creation on your existing generation of product platforms, but also being innovative and building the future revenue streams. That is equally important for PowerCell.

So if we then look at where we are and how we have built this, going forward, we also -- we need to work with a clear strategic focus. We have a platform mentality on technology, on systems and on products. That is what is giving us a record revenue and a strong positive EBITDA. What we need to do going forward with this is, of course, have a strong delivery being trustworthy as an industrial partner to our customers. And those industrial partnerships have been a strategic focus. We have been working quite hard to get the OEM orders.

Of course, we have a number of proof points. What we need to do with those is to go even deeper, really get into their business model and be a part of their offering to the market. And then, of course, scale with control and deliver with precision. But then equally important is the fiscal discipline that Anders is safeguarding and that I think is a strong culture throughout the company. That is what allow us to make breakeven on low volumes. And we need to continue to focus on that going forward on protecting our margins and be able to show leverage growth as we move along.

Now focus for the second half. I need to stress that the market remains complex, but we see that it is improving. We see that from the orders and the tenders that we are receiving that the maturity is much higher, that we see a clear path of deployment, and they have financing to a higher degree than we saw 2, 3 years ago. So a final investment decision, the ratio is higher now than we saw 12, 24, 36 months ago.

Strategic focus for PowerCell is to be able to work with some of the rather boring stuff of being an innovative company, delivery precision, have commercial reputability, cost discipline and working with mature product platforms. Once again, we need to balance both innovation and creativity while still being industrially stable. And that is equally important in the phase that we are at.

So concluding, once again, we see steady pace through improving waters. We will continue to grow, but we will grow with control and not necessarily just with speed. And we're going to build this one order by order, one delivery to the other.

So with that, we conclude this section, and we open up for questions. And then please bear in mind the communication or lack of communication between Anders and myself, and we'll try to guide you through this Q&A. Thank you.

[Operator Instructions] We are waiting for the audio questions. We have a number of issued online, but we're waiting for the audio ones.

So before getting those, we will go for the written questions that have come through the system from Henrik Alveskog, Redeye. Regarding the SEK 165 million order to Italian shipyard signed in 2024 with delivery in 2025 is it running according to plan?

Yes, it's running according to plan, both when it comes to production and deployment and then also delivery to the customer in Italy. So yes, that is running according to plan.

Then a follow-up question from Henrik regarding the ZeroAvia order. Is the SEK 1.5 billion order from 2022 still valid?

Yes, it is. We have been very clear with that one that is conditioned that ZeroAvia is approved and certified with their ZA600 driveline, which is the driveline that is now in certification in Europe. ZeroAvia in quarter 1 reported their first firm commercial orders from a smaller cargo aircraft carrier, and I think it was in Great Britain. So that is, from our perspective, running according to plan. But of course, for any growth of ZeroAvia, please look at the ZeroAvia communication.

Your report Note 3 states that royalty in quarter 2 were minus SEK 4.7 million. Can you clarify?

Then I will look at Anders for that one. And when you're done with that answer, just smile and nod.

That is going through the -- let's say, the new contract with Bosch. Many parts were in that discussion room. And one part was how we will treat the various business that we have. And we simply concluded that revenue recognized in Q1 was credited and was added into the new. So basically, this is something that is a -- I wouldn't say a correction. The time was right. But when looking into the contract that we signed, this needed to happen in order to justify the bookkeeping as such. So it's just something that went into the contract and needed to be managed from an accounting standpoint in this way. So it's nothing special.

Then since Anders you're up and running from [Monk], we had a question, what is the cash position after first half of 2025?

That is the cash -- the available cash or the cash in the balance sheet is SEK 72 million. And on top of that, the SEK 50 million Czech facility that we have unutilized at that point in time.

Good. And then a follow-up question from was [Monk] was, are the Norwegian ferries fully delivered and invoiced and no, we are still delivering and deploying those. So they will both generate revenue, but especially positive cash flow later in 2025 and running over in 2026. So they are not completed. Let me see if we have any other questions. Fairly detailed question is do we have any orders from [breaking] line? No, we don't. But if you have any leads there, please pass them to [Mont] and to us.

These are actually all the questions we have seen so far. Of course, we will wait for additional questions. [Operator Instructions]

One question here. Any more preferred stocks being published? Anders, do you care to comment on that one?

No, I can't see the question. I missed. Can you repeat? I can't see the question, Richard.

It will be very interesting to listen to that answer afterwards. If you're done, just.

Well, if the question was whether we think about issuing any more stocks, I mean, we have the mandate for 10%, and that is something we consider all the time as an opportunity, but not anything confirmed as that would have been given public attention to.

Good. So a very good question here, which I can elaborate on for quite a long time. What can we further expect from the Bosch deal and the Asia region?

A very good deal. I would say that the IP sale to Bosch is it's quite diverse and interesting agreement that we've designed. First and foremost, it solidifies the interest that Bosch had in PEM technology. They have pulled out on the [indiscernible], which is a complementary or in some aspects a competing fuel cell technology, and they're doubling down on the PEM fuel cells, which is the technology we have.

They're also now extending their interest in the license around S3, further investing into that technology portfolio and technology platform, which is highly encouraging. And they do that because they see an increasing market in China. Quite similar to solar and batteries, China are now really pushing for hydrogen fuel cells. They're doing it with incentives. They're doing it with legislation and doing it with investment.

So China is now the fastest-growing market when it comes to fuel cells and hydrogen. Availability of hydrogen is improving, which is, of course, a very important driver for growth of fuel cell sales. So we expect to see a positive growth in China. We have now seen in quarter 2, a number of press releases from Bosch and their industrial partners on where truck manufacturers have integrated the S3 fuel cell into their offering and starting to deploy an order.

So hopefully, we can see a rather interesting growth in China. A benefit for PowerCell beside the royalty revenue is, of course, that the volume base on our core technology is increasing, which gives us everything from of course, better component costs, but also validation of performance, technology, application knowledge, et cetera. So the fact that we have this industrial collaboration with Bosch, both as our largest owner, but also the ongoing operational performance or collaboration is highly valuable because it gives us access and knowledge to a volume base that would otherwise be outside of PowerCell reach.

So I'm extremely grateful for the collaboration we have with Bosch and also need to stress the fact that even though we are quite small than Bosch, they are one of the largest automotive companies. They're treating us with a great respect and a very strong collaborational spirit. So I'm regarding this as a very strong collaboration.

From [Carnegie], we get a question, how does the potential aftermarket service look in the contracts you are currently in place, especially in Marine?

Of course, in Marine, the aftermarket revenue is something that we are quite interested in. In traditional combustion engine-based products, the aftermarket revenue is roughly 100% equal to the CapEx sales over a 10-year life cycle. It's still to be determined what the revenue will be for fuel cells because the service intervals are lower because we have fewer moving parts. That benefit, that cost benefit will, of course, ripple down also to the end customer in the sense of slightly lower service cost.

But we are working quite hard with our colleagues and our partners in the value chain to make sure that we are safeguarding our position and revenue in that one. So we will come back when we have signed the first aftermarket contracts related to our larger installations, but that is still to be negotiated and signed.

A question is what is our expectation for growth and the cadence in the U.S. market following the 45V extension? I have to come back on that one. It's difficult to predict. The U.S. market is a difficult market. It's still quite subsidy driven and also a bit scattered because you have the geographical differences with availability of different fuels. But I think that the diverse portfolio from PowerCell where we can run on both hydrogen and methanol gives us an opportunity to capture what we see. But we need to come back on that one when we have more firm orders and also a better understanding on how this will now be implemented because it's been a standstill in that region for quite some time.

We had a question, if we expect growth in royalties in the upcoming quarters. Since we don't comment forecasts, I will pass on that one, but I can also then give you an indication that especially China is seeing growth in hydrogen fuel cells. How much of that Bosch will be able to capture and how much will be transferred into royalties to PowerCell we'll be reporting in quarter 3 and quarter 4.

We had a question on cash flow. If we will stay cash positive in the future or will the cash flow fluctuate to the negative side again?

Anders, I think that one is for you, and I think we want to be clear on that one.

Sure. I can be clear on 2 things here. First, we don't, as Richard say, in a prediction for the future. I think that the cash or the working capital position once in growth will always be stressed, and we will be in the same situation. There will be quarters where you can see a positive operating cash flow, and there will be quarters where depending on the growth situation, it might be negatives. But I mean, this is nothing that deviates from any other situation where a company like us will be in.

And I also think that I can pick up on the next question on that subject. I think the challenges we have when it comes to the cash situation is not regarding the CapEx as such is more regarding the working capital situation. And we do have a mandate. We may use the mandate, but it's discretionary for us to do when we think it is needed. But for the time being, we feel comfortable, and then we'll see what happens.

Good. A follow-up question to that one, which is quite interesting is, do we need to raise capital in the near-to-mid future if customer demand picks up due to the needed CapEx investment.

Anders, do you want to elaborate on that how are we distinguishing between the working capital and the ownership capital?

I just did that. So we are fine.

Okay. Perfect. Thank you. With that, I think that we have completed all the questions we see here. It's summertime. It's 9:01. So from PowerCell, we wish you a nice Thursday and also a nice summer. And as always, you are more than welcome to visit us in Gothenburg if you have time and interest, also to reach out to either myself or Anders. Thank you very much, and have a nice day.