Bravida Holding Stock

Hi, and good morning, everyone, and welcome to this presentation of our Q3 interim report of Bravida for 2026. We are today presenting improved profitability and an all-time high order backlog in a market that we consider as growing. And as usual, it's myself, Mattias Johansson; and...

Petra Vranjes.

So CFO and CEO is here to take you through this presentation. So we kick off this immediately.

I will leave you to it.

Yes. Thank you so much. Thanks. As you probably already have seen, we are presenting a really strong quarter this time, again, I would say. We have a net sales above SEK 7 billion compared to SEK 6.4 billion last year. Organic growth at 9%, the same as in the second quarter. So we continue the path on creating value for the company and as well as you as a shareholder. The margin is 6.5%, up with 120 basis points. Order intake, impressive plus 72% and the order backlog is up 48%. Coming back to those numbers later to explain it a bit more. And then the balance sheet is really, really strong. We had net debt in relation to EBITDA at 1.0x. And if we exclude the leasing cost, Petra will describe that later, we are well below that number.

So strong organic growth and increased margin. We are increasing or improving the profitability in all markets with higher volumes. 9% sales growth and all of that is organic. We have some currency effects, but also some negative effects from the -- on the acquisition part due to the fact that we sold ABEKA earlier this year. We see good demand for small and midsized installation and larger projects in data centers, but also in infrastructure and defense. 34% EBITA growth in the quarter, up to SEK 460 million, fantastic number. And the margin was 6.5%. And in those numbers, we have some negative impact of that restructuring cost in Sweden, SEK 8 million. If we are adjusting for that, we have a margin at 6.7% and that is the same as the margin last 12 months as well, 6.7%. So we're getting closer to our financial target at 7%.

And as I said, improved EBITA margins in all markets. Bravida is in a fantastic situation in the market. The society is transformation, and that benefits Bravida's business clearly. We see a high demand in the defense industry, industrial projects, but also regarding infrastructure and especially data centers, I would say. But when we look at the increased order intake and the order backlog, you see that the order intake is up 72%, and we are at above SEK 10 billion in the quarter, which is an all-time high number. And the order backlog has increased with close to 50% to SEK 24 billion plus.

I see that some of you is commenting that a lot of this is data centers. But if you exclude or adjust for the big project in Norway and the big project in Finland, and we consider the ongoing data centers in Sweden to EcoDataCenter as an example, and put that into the normal order backlog that we have been working with that type of project for 6, 7 years, we are on an all-time high backlog situation even if we adjust for the new market. But with that said, I think the new market is here and it's here to stay for a while. So we consider the order backlog as really high, and that will support the growth going forward. It will also support the margin expansion going forward because of the type of contract and the price models we have. So we are really, really pleased with the situation we are in.

And on this slide, we have some selection of new customer assignments during Q3. And I think it's important to mention the example we have in Norway, where we have signed a new frame agreement with Avinor for electrical services at Flesland Airport in Bergen. And this is an agreement that we are winning because we have a really strong or good reputation in the area. We have been winning this contract not only price, we have been winning that also because we have the competencies and organization in place and the customer think it's a good place to place the new agreement in.

Then in Finland, we see a new order coming from the partnership with -- I would say that is the big contract in Finland we won in August, the big data center in Kouvola. And that is part of the new industry that is growing within the order books of Bravida and for the whole industry. In Denmark, you see that we're also building some smaller data centers as a partner to an important client. And in Sweden, we continue the collaboration with EcoDataCenter, and that is also something we're focusing a lot on to continue to serve existing customers. So we are still doing important frame agreements in the local areas. It's not only data centers. But with that said, of course, data center is an important part of our business going forward.

And I take the chance another time to tell you that we have a good knowledge. We have the history of delivering data centers. We have been working with data centers in a lot smaller scale, of course, earlier, but we started in 2009 to build together with Meta in Lulea in Sweden, and we have continued to do that in Denmark as well, in other parts of Sweden and also in Finland the last years. We have done some in Norway as well. So this has always been a part of our portfolio, and we have done more than 200 megawatts in total earlier.

We have been winning 6 new data centers in recent months. You all know the Norwegian one outside Stavanger, SEK 4.3 billion. We won the Finnish one in June to XTX, another phase. In July, we also won the new phase for the secret client we have, where we have a really good collaboration and a partnership with that client that we hope that will continue as well. In Finland, we signed another big contract in July, and that is the project we are calling FIN04 atNorth. And then in August, we signed another deal in Sweden to the secret client. I mixed them up, sorry for that. The one in July was to EcoDataCenter. And then we signed one in Denmark in August as well, electrical installation, HVAC, plumbing and BMS in Esbjerg, Denmark. So this is not some stochastic business we're winning sometimes. We see a good inflow of new possibilities coming in, and we are sorting and are very, say, selective regarding who customers we want to work with. So the demand is high, but we try to act very smart in this, try to create partnership with our clients to make sure that we can provide the right service with the right quality to customers who know what they are building.

That was about data centers, but we also have another type of advanced projects. And you know Bravida, still close to 50% of our sales is service. If you add revenue from renovation and maintenance, we get above 60%, and that is still very important. But the market changes. Already in 2016, '17, we in Bravida started to build an organization and competencies to be able to deliver these more complex and large projects. We won the Bypass Stockholm in 2017. We have been building to Meta since 2009. So that altogether means that we have an organization with a historical track record that we are now using on other large contracts because that is how the market has been developing.

Today, the base business, the base market is developing slightly positive compared to last year. It's still not a fantastic market, but it's better than last year. So all -- in relative terms, that market is improving. But it is important for us in Bravida to participate and deliver the large project as well. And the customers sees us as a very natural partner because we have the resources, we have the size, we have the competencies, and we also have the financial stability that they want to see from a supplier.

On this slide, you see 12 example on another type of projects that is really important in our portfolio. We have a factory too Fazer in Finland. We have hospitals in Finland. We have airports in Norway. We have expansion of Stockholm Metro, Novo Nordisk Foundation, the headquarter. We have the service agreement at Great Belt and Oresund Links in Denmark. We have a Science Park in Hamar. We are building to Hitachi, the Science Park, the quite complex building as well. And this is a bigger part of the market, and Bravida is well positioned to use our position in the market to drive growth and profitability from this market.

Acquisitions, we have done one acquisition in the quarter. We have acquired Aslunds El, a fantastic company that will strengthen our position in the area around Uppsala and Stockholm. The pipeline and the discussion is good, but we are very selective. We are very thorough in our way of doing the due diligences. If they don't have the right quality in the order backlog or the right margin development throughout the last couple of years, which has been tough, we don't think they are good enough to acquire. So we have been struggling to find good enough targets. Ao Aslunds El is a fantastic example of a company with strong management and good profitability even in tough market conditions. M&A acquisitions is still the highest priority within Bravida. We have a strong balance sheet. And the first thing we want to use the money to is, of course, to continue to do acquisitions. But still, organic growth at 9%, we're delivering a very good growth this quarter even if we have been not good enough on the acquisition side, but that will come, and that is for sure.

So with that, I hand over to Petra and the financials.

Thank you, Mattias. So looking a little bit deeper on the financials, we are going to go to Sweden and see how we closed the third quarter in Sweden. And here, we can see that we had a growth -- organic growth of 9%. That growth is somewhat offset by the divestment of ABEKA, which was mentioned earlier by Mattias. We do have Aslunds El as an acquisition, but the ABEKA divestment is, of course, a little bit bigger, so giving a negative 3% growth on the Swedish market. So we closed on SEK 3.047 billion in Sweden, and that is then up 6% in total, including the divestment.

Sweden has a good demand in the northern part of Sweden, so now we can also see that the southern part is gradually improving. We will still have a gradual improvement at that part. So that's to be expected, but it's now showing an improvement. And with a 53% installation to service sales ratio, we are bringing Sweden to 6.1% EBITA margin. In that EBITA margin, we have a small restructuring charge, which is a one-off of SEK 8 million, that's the last restructuring charge for the transformation that we have done in Sweden, and now we land on SEK 68 million totally year-to-date of restructuring in the margins. If I adjust for the small restructuring charge, the Swedish EBITA margin lands on 6.4%, just as a comparison.

If we then look at the order intake, we see that Sweden is growing 47% year-over-year and is reporting an order intake of close to SEK 4.3 billion. Very strong order booking. And of course, here as well, we do have data centers with customers we have worked for a long time with. But we also have, you might have read about Citylink, for instance, came out the other day. So there are a lot of other businesses and not to forget all the small and midsized businesses, which we don't announce always. So with that, Sweden is landing a backlog of close to SEK 9 billion. In the backlog, you also have a negative effect of the ABEKA divestment with approximately SEK 500 million.

And then if we go to Denmark, you will see that we have closed Denmark on SEK 1.929 billion, which is on par, a little bit stronger with a 1% growth year-over-year compared to the same quarter last year. And then we should remember that Denmark had a very strong Q3 in '25 with a 23% organic growth in that quarter. So strong results also this quarter. And with a 55% installation to service sales, Denmark is closing the quarter with a 7.5% EBITDA margin. And this is due to the very good selection of business where Denmark is focusing on good margin business, but also the turnaround that they have been doing or we have been doing for the last almost 2 years now. And on the order intake side, we have a 30% increase of the order intake and Denmark is landing on SEK 1.853 billion. Then on the order, very good uptake on the order intake as well and a strong backlog on close to SEK 4.6 billion.

Looking at Norway, Norway is increasing the sales with 19%, of which 11% is the organic growth, and then we have a currency effect of 7%. 1% impact also positive on acquisitions with NITEK bought last year or acquired. And with that, Norway is landing on SEK 1.388 billion, so 90% up year-over-year. Good growth, but also good margin increase. Norway is reporting 6.2% EBITA margin and has been working a lot on the cost side and is now also benefiting from the uptake on the revenue side. On the order intake, we have a 47% increase in Norway, so also increasing quite heavily. And with that, Norway is landing on SEK 1.462 billion. And here, we should remember that the large data center contract was booked in Q2. So that one we can see in the backlog of SEK 7 billion, which is up almost SEK 5 billion year-over-year.

And as our last market, maybe the least, but definitely improving is Finland. And here, we can see Finland is reporting a net sales of SEK 701 million. That is up 33% year-over-year, and it's all organic growth. So very strong numbers from Finland. The operations is positive in the underlying business. We have good progress and demand in a lot of branches in Finland, but we want to mention Inner Finland and Ostrobothnia region as the strong ones. And of course, we do have data centers also in Finland driving sales. With now 70% installation to service ratio, Finland is closing at 5.1% EBITA margin.

And some of you might remember that we did have a one-off in Q3 in 2025. I haven't really adjusted for that margin, but that would land somewhere on 4%, just north of 4%. So a very strong margin this quarter this year as well. And in the order intake side, Finland is up SEK 2 billion. And in Finland, we did book the large data center order in Q3. So that's part of it, but also good intake from other businesses, small and midsized contracts. On the backlog side, Finland is closing at SEK 3.665 billion, promising a lot of ramp-up going forward.

So those were the markets. If we then look at our balance sheet items, we have a very stable cash position and a very stable financial position, gives us a lot of possibilities for the future for investments. And just looking at the operating cash flow for the quarter, which was in SEK 800 million. And with that, the cash conversion came in at 110%. We have a revolving credit facility of SEK 2.5 billion. And with that, we also have a commercial paper program of SEK 1.850 billion, plus a EUR 50 million program. And on top of that, there is a 3-year term loan of SEK 750 million. And when we look at our cash balances, short- and long-term loans and the leasing according to IFRS 16, we land on a net debt of SEK 2.564 billion or 1x net debt-to-EBITDA ratio, as Matthias was mentioning. Excluding the leasing, we are at 0.45x net debt-to-EBITDA ratio at this moment.

So you probably read yesterday that we are launching our third share buyback program. In Q3, we have -- Bravida has purchased -- repurchased 705,200 own ordinary shares at an average price of SEK 141.79. And in total, that makes SEK 100 million. Yesterday, the Board decided to carry on the third buyback program, and we will be buying back shares during Q4 and before the Q4 interim report at a maximum of SEK 100 million.

So with that said, I will go to the ESG, so our sustainability efforts. We do want to see all our employees going home safe and healthy after the workday, and we are reporting an LTIFR at 4.9 in the quarter, which is below our target of 5.5. We do have an increase in our electrical vehicles for the climate. And right now, we are at 51% electrical vehicles, up from 42% in the same quarter of last year. And this gives us a -- part of that is then driving the CO2 emission decrease, which is down 33% compared to the base year of 2023 and also the tonnes are then changing compared to net sales and going down 34% also compared to the 2023 base numbers.

And with that, I will welcome back Mattias, and he will do some conclusions for us.

Thank you, Petra, and thank you for presenting the strong balance sheet. The third quarter in key metrics, 9% organic growth, which is fantastic and the same as in Q2. So we're now entering a new phase -- growth phase, you can say, and we expect to continue growing in the next quarter. The margin is up to 6.5%, and the EPS is increasing a lot from SEK 1.19 to SEK 1.70. I think the result after taxes, et cetera, is up more than 30%. Cash conversion, as we have guided earlier, we have had a bit of a lower cash conversion before, but that is something we have been knowing the reason behind, and we have been very confident that it will come back. And this quarter, we are presenting 110% cash conversion, which is expected and a really, really strong number.

Net debt, as Petra told you, is low, 1x -- the ratio is 1. And the injuries, the LTIFR for all our employees is also below the target and improved since last year at 4.9. So I think we are presenting a quarter today with improved numbers all over the field, you can say, which is something we are really proud of, of course. So solid and exciting platform for long-term value creation. We have a strong organic growth and improved margin development throughout all countries. And that is combination with really strong order intake and a record high order backlog. And in the order backlog, you also have the adjustment you need to do with SEK 500 million approximately due to the divestment of ABEKA. So really, really strong.

And we, as a company, Bravida is an enabler of the AI-driven digital transformation. At the same time as we're benefiting from a workforce that cannot be automated as I see it at least. We are the solution of the digitalization and the AI transformation. And our services is some kind of AI secured. High customer trust and attractiveness as an employer. A lot of people is searching -- apply for job in Bravida and customers see us as the very clear supplier in projects where you need competencies that are a bit different and a big number of resources, and we are also in their eyes, a very stable financial partner. So we see that our attractiveness is stronger than ever in the market as well.

And that is, as I said, due to the stable financial position. That also gives us not only the opportunity to win good contracts and create good relations with the customers. It also gives us the capacity to invest in continued growth and doing acquisitions and payout dividend and also, as you said, do some buybacks. And last but not least, our market position and balanced project mix provides a solid and exciting platform for long-term value creation.

So with that, before we open up for some questions, I just want to say that our next report is in the 10th of February. And I guess that will be the same time as usual, 9:30. So schedule that in your calendar, and then we open up for questions. Thank you so much for listening.

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

Surprisingly, I'm going to start with a data center question. The first one is just if you could add any color on how much of the large data center orders during the summer that was delivered in Q3, i.e., how much that supported the growth figure? And then just moving on to capacity and the pipeline, et cetera. Could you give a little bit more flavor? I know we've talked about this before, but just how much more data center projects can you actually take on with the current capacity or hiring potential? And also what the pipeline looks like if you are in any current talks with the new data centers or if that's on hold for a bit while you're delivering on the large ones now?

Thank you, Oscar. I want to start to not answer your question, but a bit of answering it anyway, because I think a big part of the growth is actually coming from our ordinary business, if we call it like that. We have discussed this morning that this is -- data center is also the ordinary business. That's the new market. But you can say we are growing approximately SEK 470 million, I think. And 2/3 of that is coming from our ordinary business. And with ordinary business, we are excluding the 2 big projects in Norway and Finland because the other data center project is something we have been doing for many, many years. So we consider that as base business, normal business. So you can say 1/3 of the growth is coming from the business you're asking for.

I think we are growing approximately 600, but...

Yes, okay, maybe...

Two thirds...

Two thirds, yes...

Approximately...

I calculated it, 31% is coming from the data center, the new business, as you call it. So we have a strong growth in the base business. That's for sure. When it comes to the pipeline, we read in the papers that it is -- the hype is over. I think it has just started. It's accelerating. We see more and more demand for this every month. But we are very selective. We want to work with clients who know what they're doing. We try to create partnership. And I also think that the client is doing the same. They want to secure the production. They want to work with suppliers who know what this is all about.

Because building a data center, if you don't want to be a subcontractor far below in the value chain, then you need a management on each data centers with 50, 60 white collars to be able to provide the services. So I think that is a bit of the bottleneck to find enough and good enough white collars who can work in this sector. Blue collars is not the problem as we see it today. The pipeline is strong. How much we can do? I actually -- I think we passed on that question. No one knows how this market will develop. But I can guarantee you when we are bringing a contract in, it is a good contract with healthy margins. I think that is what we can say and want to say.

Did I miss anything, Oscar or Petra?

Oscar, I don't know if you think we missed something. I'm thinking the capacity, it's obviously a growing market. And with the growing market, that's always top of mind with the capacity, whether it be the data centers or other business that's growing.

Yes. No, that's very helpful. I don't think you missed any part of that question. All right. Next one, just moving on to the margin. I think it's obviously very strong. I think on an adjusted basis, you're at like 6.5% on a rolling 12-month basis at the moment, and this is likely before the large contribution from the possibly margin accretive centers. So is there anything more to do on the underlying basis? And also, what are the key elements of these improvements? I'm thinking if it's execution or have you seen any difference in project margins, operating leverage from the staff reductions that you've made and also primarily with the large demand for data centers, does that eat up capacity so the project commission gets a little bit lower?

I think what we expect from the margins. You can see this quarter, we are presenting improving margins in all countries. And I would say with some small impact from the big data centers, this is the normal business which is improving. And that is very much in because of growing volumes, but it's also because of the restructurings we have been doing in Sweden as one example. But in all countries, we have been doing some restructuring work. It's only in Sweden where we have had this big work with this. So we have been communicating that as a specified cost to you. So we see improved margins all over the field. We expect it to continue in the coming quarters. I think it's getting a bit of a less impact maybe for every quarter.

We see Denmark continue to deliver a really strong quarter, the third quarter this year. You shouldn't expect them to climb as much in Q4, I don't think. We have earlier said that they should be well above or above 6%, not well above, above 6%, we have said. Now I think after this third quarter, they are on rolling 12 at 6.1%. We think that can improve a bit more the last quarter. We see Finland and Norway, when they get the impact, as you said, impact from the large contracts with slightly higher margins in the data center business, that will add on top of the existing improvement. And I think Sweden is on a journey where they are slowly coming back to old margins because of the restructuring work they've been doing.

And I would say a really big thank you to all people in Bravida who has done a fantastic job with underperforming units, taking out cost, focusing on the market, relations with the clients. And I think the positive thing with the data center is also that we, with this strong order backlog, get an even better confidence when we are pricing other services because we don't need to sign contracts with low margins. So this gives us confidence to continue to bring in healthy projects.

And one part of your question was also if we can allocate resources from our existing business to data centers? We prefer not to do that because our ambition is to do the data center as well, not instead of. We will continue to serve our local customers, our local partners that we have been having for the last 30, 40 years. And that will be important, and that is something we pay a lot of attention to. So I think we can see improved margin going forward as well. We will see.

Perfect. And this is maybe a long shot, but I mean, obviously, you have a...

Give it a try...

EBITA margin target of, you have an EBITA margin target of above 7%. And I mean, I think you've said previously that you should be able to do that without any market contribution, et cetera. Now you have improving margins underlying and you also have a better market and see a better market outlook. And then on top of that, you have significant bigger orders, which should be margin accretive, all else equal. So how do you think about the margin target? And what do you think that will be in sense of all the things I said?

I think you are right. I think we're getting closer and closer to the margin target. If we adjust for the costs we have had, we are closer to the 7% that we are presenting. On the other hand, we have had a quite tough start of this year. We have had a really strong second and third quarter, but you have to remember that the Q1 this year was a tough quarter for everyone in this industry. The market has recovered a bit in the base business, but it's relative. It's much better than last year.

So I think we're getting closer and closer to the margin target. And I think also that when we meet that target is not very important. I think it is to capture the growth opportunity at the same time as we are delivering a higher margin. And that is what we are focusing at now. If that is 7% rolling 12% in next summer or in 2 years, I think that depends also how much we are growing. But that we will increase the EPS every quarter going forward for quite a long time, I'm very confident with.

The next question comes from Anders Akerblom from Nordea.

I wanted to ask firstly on Denmark. I appreciate the flavor on sort of the sustainability of, I mean, the current quarter's print and that you should at least be above 6%. But still, I mean, it was a very healthy margin uplift. Could you elaborate a bit here sort of on what drove this? And I mean, anything in particular that you'd want to flag as a bit elevated or temporary, just so we can understand that.

Do you want to take that, Petra?

Well, I can start and you can...

Try to...

Fill in the gaps. So thank you for the question. And yes, the margin uplift, I think if we would start where we see the uplift, obviously, there is a contribution from the top line growth. So when we get more sales that transpires to higher margin. That is one of the parts. And that's, of course, one of the parts why we want to grow as well. And we have talked a lot about Finland needing to have a bit more body but more size to get up on the margin. So that's one piece of the puzzle.

I think the other part is a very good turnaround and margin focus in Denmark, contributing in a nice way in the quarter. But I would like to really -- I can't really specify one single bit and piece because all countries, all our segments are contributing in a good way in this quarter from where they stand.

Sorry, I was asking specifically on Denmark. Sorry, if I was unclear because Denmark is really what's I thought.

Okay. Then for...

Yes. So specifically Denmark.

Yes, for sure, Denmark is delivering a good margin in the quarter. There is nothing one-off in Denmark. It's the business mix, and that will look different in different quarters depending on which contracts and which projects you're executing on. But we are, to Matthias' earlier point, expecting Denmark to go in this direction. So we -- since the turnaround and margin focus, getting more of the older low-margin projects out, we are expecting Denmark to climb the margin ladder, if you will. Then 7.5% is a very strong and good quarter with margin that we have to say. But there is nothing of the extraordinary. It's just good business in the quarter.

Yes. I just want to overall comment the margin. I think we have done a fantastic job in all countries, but an improved margin because of different reasons, you can say. [Indiscernible] in Denmark has been, together with his team delivered growth for a while with improved margin by applying the Bravida way of working with clearer leadership with a lot more customer focus as a couple of examples. [Indiscernible] in Norway has been taking out a lot of cost in a very difficult market and by that, being able to improve the margin. And it's going to be really exciting to see what can happen in the fourth quarter with the data center production going up.

And then we have Mr. [Indiscernible] in Finland with his team who has been really done a turnaround, struggled last quarter with the problems we had in Tampere. That region itself with the new region manager, et cetera, has improved the profitability locally, but we can also see all -- close to all over the line in Finland that they have improved their normal business as well. So I think as well as in Norway, it's going to be exciting to see what happens in the fourth quarter when we ramp up the production on the data center in Finland.

And then we have Mr. Tauber in Sweden, who has been led a really big turnaround, merging 3 divisions in Sweden with all the changes they have been doing, worked a lot with underperforming units. I think a lot of people is behind this fantastic report this quarter. And another time, I just want to say a big thank you to the organization the work they have done. So I think it's a lot of things that is positive. And then behind all this, we have a really supportive cash flow through the business. It's not only that we are winning new contracts. We have a really strong support from a cash flow that is fantastic.

Okay. Perfect. I wanted to ask a bit as well sort of on the margin gain from the perspective of headcount relative sort of gross margins. I mean you delivered, I mean, obviously, healthy organic growth while you're currently employing at least fewer people. Given that you have quite a significant backlog to deliver on, I mean, how sustainable should we view that sort of operating leverage going forward? I mean, should we expect overhead and employees to rise in line with sales going forward? Or how should we think about that?

I think it depends on how we categorize the overhead, but we see that we still have a bit of an underutilization. We have, for the last couple of quarters, been telling you that we have been investing in keeping resources after tough markets because we know the market will come back, and that is partly what you see now. I still think that we have growth to capture by using our existing personnel even more efficient. But with that said, we need to hire more people, mainly production people or productive white collars, not -- we don't need a new CEO or a new CFO. So I think the overhead cost won't increase more than the type of people we need to controllers, et cetera, procurement people that we might not be able to charge the customers. But all in all, it's mostly productive people we need to hire.

Yes. That makes sense. A final one, if I may, sort of on I know it's difficult to speculate on, but I mean, following sort of quarter end with the recent interest rate uptick, I mean, have you seen sort of -- it will be interesting to hear just if you've seen anything in terms of sort of current customer activity and how that's impacting that angle.

No, we haven't seen anything of that yet. We expect the interest rates to go up. I think everyone does. I think if you need to build something because you have a demand in your value chain where you're acting, I think it will never be less expensive or cheaper to build than it is now. The inflation will do impact the prices, of course, but it will never be as cheap as it is today to build if you want and have to build something. Of course, that will impact. I don't think it will impact the defense industry, infrastructure, data center in that perspective as long as you are choosing customers wisely. So we haven't seen anything of that yet.

The next question comes from Johan Dahl from Danske Bank.

Just some brief questions. Firstly, on the -- very interesting comments there, Mattias, on the contribution to growth from incremental DC invoicing in the quarter. I appreciate it's very early days as you ramp up invoicing here. But can you sort of -- at this stage, can you validate that this is accretive to group margins in those projects that you have started? If you're a bit devil's advocate, look at sort of the performance here in Q3, take out to Denmark, perhaps the incremental sort of leverage on those new -- but just interested to hear your comments there. How they contributed to the invoicing to your margins?

No, I think still, we think we have good healthy contracts, balanced contracts. I think it's more supplier-friendly now than it was 6, 7 months ago. That's the first. So we think we still have good contracts. Then I think on the contribution to the margin, I think that is not a lot this quarter. It is, of course, depending on the growth it is contributing with. But otherwise, it's not impacting a lot. We are early in the projects, and we have a lot of respect for that -- yes, as always, we try to be conservative when it comes to all types of projects in the beginning before we have 100% control of it.

So -- and that something we are doing in this type of project as well, as well as, we are building a new school, new hospital, a new tunnel, whatever. We are working in the same way with these data centers. We have a model, we follow it, and we know that we're following it because we have a solid structure to control and deliver this type of projects in.

Good. Also, excluding data centers, can you remind us of any big sort of phasing out of big projects that will impact you next year just on top of your heads?

Well, on top of our heads comes the very big project of Bypass Stockholm, which will not be totally phased out, but definitely, I would expect it to decrease during next year if you look at full year. There are probably a lot more projects, Johan. But as you know, we typically have the very large on top of our minds and then there's a lot of going ins and outs. But that one is probably the one I would mention.

Yes, I agree. Otherwise, I don't think there are any more than maybe the different phases we are building to EcoDataCenter and XTX. But on the other hand, it seems like there will hopefully come some new phases. So I think that is more -- there can be some couple of months where you have some lower activity. But no, except for Bypass Stockholm, which I think will have a high production in at least the first 3 quarters.

The next question comes from Jakob Soderblom from DNB Carnegie.

Can you hear me?

Absolutely.

I just have a super short question actually, and it has to do with a bit of recruitment and also acquisition I'm guessing. Have you think about adding more capabilities within prefabrication or more of a modular installments? I think you have some larger peers internationally that's been doing quite well and I also know that you perhaps have been starting to look into this? Or how do you think about this more and more broad-based now it fits into Bravida model?

Interesting question. But part of some of the data centers, we are already doing some prefabrication because there is, let's say, some -- you don't have enough spaces on site, et cetera. It's more efficient to do some production in a production hall instead of on-site. So I know what you're referring to. We have -- don't have the same kind of modular production that you're referring to. But we have prefabrication that we have started just to make sure that we are doing more work off-site instead of on-site, and that is because it's cheaper, more efficient and the quality is easier to maintain on that type of services. But of course, we -- when we win this project, we try to develop different things, but we have just started that. So we are not near to what you're referring to, I would say. But we have started some work.

We are always looking for how can we do things cheaper, quicker, better. So it's always top of our mind to do that. And that goes with a lot of things like working shifts or doing some modular, not just prefabrication, but putting together things outside of the sites if it's possible. So we are looking at many of those aspects, I would say.

And I also think this is a developing market. And I think that is also why the competition is a bit different because as a normal electrical company or plumbing company, you can't really participate in this type of business because you need to have the muscles to do prefabrication yourself. You need to be able to put 50, 60 white collars on site that is not near your own office. In Norway, for example, we have built, you can say, a hotel on site for several hundred people to be able to live. So this is not a work for anyone. And prefabrication and modular production is one part of that, of course. So interesting thing to look into even more, of course. And as Petra said, we always try to be working smarter to use our resources better and safer to improve both the work environment as well as the profitability and the speed in projects.

The next question comes from Hela Zarrouk from ODDO BHF.

I have a couple of questions. The first one is on backlog, with the backlog up sharply, how much visibility do you have on organic growth in 2027? And how should we think about the phasing of the large data center project between Q4 2027 and beyond? My second question on broader market recovery, so beyond the data centers and other large projects, are you seeing a broad-based recovery in smaller installation projects? And which markets offer the greatest recovery potential in 2027?

Thank you for a good question, and it's not very easy to answer, I think. But if we start with the easiest one is if you look at the normal market, as I want to put it, it's -- and again, data center is a normal market going forward, I think. But the base business, if you say, I think it's improving from very low levels everywhere, you can say. So -- and we are working with relative demand. So it is better today than it was a year ago. And my expectation, and we can see some publicly announced forecast as well that it will be improving next year as well. There will always be some geographical differences within countries or within regions of countries. But I would expect the market to recover basically all over the geography where we're in.

When it comes to the phasing of the data center, it is a bit of a problem. We are struggling a bit ourselves because what's happening with close to all the data center clients we're having, there is a technical shift in the delivery. And that means that they are -- you know the technique is improving and changing very quick and everyone wants to have the latest equipment installed. So it is a bit hard to know when the production will ramp up to a certain level. But what we can say is -- and we normally not guide on the organic growth either. But I can say that we think that the growth will continue, and I think the growth will absolutely improve if you compare quarter-to-quarter, at least for the first half of next year, minimum. And I think that is as far as we can see. But it's, of course, depending on how much new orders we get, when -- how the phasing looks like, et cetera.

So please ask again if I missed something in your question.

And Hela, maybe I can also...

Very clear, yes...

Yes. Maybe I can also -- because to the point, of course, we have a good view of our backlog and some of the large projects are, of course, not just for 2027, they are for 2 years, for instance. But to Matthias' point, it's difficult to understand exactly when it's going to turn around into sales because projects live project lives. So they can be delayed, they can be advanced. So it can go both quicker and more longer term then.

When it comes to the smaller projects, I just wanted to mention. So on the smaller project side, it's important. And I think that's a very good question because we have a lot of our business is in smaller projects. It's in service business. So that part, service business is not in backlog. We do have a good view of service business anyway. A lot of it is recurring as well. So those parts are also movable targets. The smaller projects are typically run in our locations out in the branches. And they also are seeing a good market. But of course, it's very segmented. If we are looking at housing markets, it's not very good. It's actually not good at all in southern part of Sweden and Norway, and it's not good. But there are other projects that come up, other markets. There's defense, there's -- they can be both small and large...

Yes, absolutely.

And there are other pieces that come in. So we do see a good uptake in the smaller projects as well, and we think that business is very important.

Yes. And also just to mention one more time. If we look at the order backlog, which is really, really high for the moment. If we adjust for the 2 large contracts, which we don't -- shouldn't do. And then also adjust for the divestment, we are still on the record high level regarding the order backlog, and that is very much the business you're referring to. So we see an increased demand for that type of services, and we can see that in the orders coming in as well.

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

Thank you so much, and thanks for all the questions and good discussions. I'm a bit surprised that you didn't ask about the inflation, what we see inflation regarding the blue collars. Today, we still don't see any restraints regarding the blue collars. But regarding the inflation, I think if you are in this industry and you are not protecting yourself against higher labor costs, higher material costs going forward or that you have index clauses in your contract, I think you will have to pay that bill after the summer next year. And that is something we in Bravida focus a lot on to make sure that we are protected against price increases, and we do that in terms of good solid contract terms, but also how we price our services.

I think that is important to understand as well. And I think that is important to understand for everyone who is in this business. if you don't protect yourself against inflation, I think then you can struggle and you have to pay a lot and profitable projects can be loss-making quite quickly. With that, I'm very pleased to be able together with Petra to present a really solid report. And it's very good to see that the tough year with the low demand in the market is a bit of over, I think. And we in Bravida, we are ready to continue to perform very well.

And with that, we say thank you so much for listening and bye.

Thank you.

Hi, everyone, and welcome to the presentation of the Q2 report of Bravida. Thank you so much for that. Welcome again to the Q2 Interim Report for Bravida. And as always, it's myself, Mattias CEO, who will present this together with...

Petra Vranjes, the CFO.

And we will do our best to make sure that you understand this quarter in detail. So with that, we start with presenting a very strong quarter. Net sales, SEK 7.6 billion approximately. Organic growth, high 9%. We were a bit positive surprised where we had 1% organic growth in Q1 and we are following up that with 9% organic growth in this quarter, which is impressive, I would say. EBITDA margin up to 7.5% compared to 5.4%. And the order intake, up 44%, and even if we have some strong sales numbers from last year as well. And then it's also adjusted, the order backlog is adjusted for the sales of ABEKA as well. And the order backlog is up 21%. And net debt still on very good low levels at 1.3.

Organic growth, I think it's Important to say and also happy to say that we have organic growth in all countries. So the 9% is coming from organic growth in Denmark, Sweden, Finland and Norway. And especially a bit surprised about Norwegian business that are struggling. And so far, they haven't produced anything on the big data center that we won a couple of weeks ago.

We have 0% in contribution from acquisitions. We have some positives, but that is actually taken out of the sales of ABEKA. So all in all, it's 0 organic growth and the currency is 0 as well. We see a very good balance between small size, average size contracts. Again, the big data center wins hasn't impacted the quarter a lot. We see a good demand from defense industry, normal industry as well as what we call core business. So really strong numbers all over the line.

EBITDA is growing 51% to SEK 570 million, and the margin of 7.5%, as I said. The EBITDA was impacted by nonrecurring items of net SEK 118 million. And that is because of the sale of ABEKA, but also that we have some restructuring costs taken in the quarter in Sweden. If we look at the last 12 months, we have a margin of 6.5%. And except for the organic growth in all countries, we also see an underlying improved margin in all countries as well. So really, really nice to see.

Society's transformation benefit Bravida's business, absolutely. Let's see what happens with energy savings. It's getting more and more interesting, I think, because of what's happening in between Iran and U.S. I don't think anyone to be dependent on any oil today. So working with different kinds of other energy sources is good, which we, in Bravida, are doing. We see continued growth in hospitals and maintaining those buildings. Reliable security system is getting more and more interesting as well. Industrial projects, defense industry, as I said, and maybe the icing on the cake is for now data center, and we have a really long history of doing that. So that is -- we are in a good position for now.

If we look at the order intake and order backlog, you should see these numbers as, first, the order backlog in Sweden is lower because of or its impact. There was an impact that is still higher, impacted for the sale of ABEKA, SEK 500 million plus. And then last year in Q2 in Denmark, we had a big order into the books as well, where we announced an DKK 800 million contract with Novo Nordisk, approximately SEK 1.2 billion. So the ABEKA impact in combination with the one big order last year in Denmark is in total SEK 1.7 billion approximately. So with that in hand sight, the order intake increase of 44% is even more impressive, and the order backlog increased with 21% is also something that will help us to continue to grow the coming quarters.

You see at the bars that the order intake at SEK 11 billion, close to SEK 12 billion in the quarter as well as the order backlog, above SEK 20 billion in the quarter from now is the highest ever, previously have said that I've been very relaxed with an order backlog around SEK 16 billion and have been so. Now I would say I'm really excited about the new orders that have come in, and that will, of course, support the growth going forward. Good orders with balanced risks. And as always, when we're discussing large projects in Bravida, we are pricing risk. We also think that should benefit to a higher margin than normal or the core business is actually contributing with.

We don't -- we are not only selling to data center customers. This is a selection of new customer assignments during the quarter. First, to the left, we have been partnership with Hitachi in Ludvika in Sweden, an industry building where we're helping them with electrics, HVAC and sprinkler system and also making sure that they are meeting the requirements for lead rating.

In Denmark, we have won new office building to Novo Nordisk Foundation, all different disciplines. And in Finland, we have been helping faster with the new production facility in Lahti in Finland. All 3 contracts are evidence that we are seeing as a very strong supplier and reliant supplier to customers who is market leader in their different segments.

With that said, we have done data centers. We will continue to build data centers. Since 2009, we have been part of billing data centers on approximately 200 megawatts. If we look back in the mirror, the data centers have been a bit smaller than they are today. But still, we have the knowledge, we have the experience, we know what to do.

So this is 4 new data centers that we have won in the past month. First, the biggest one in Norway to Green Mountain, an order at SEK 4.3 billion. It's planned to start -- be executed in end of Q3, beginning of Q4 of the summer, and it will be finalized somewhere end '28 or beginning of '29. Then last quarter as well down to the left where we can't disclose the size of the contract, but we continue to work together with the XTX Markets in Kajaani in Finland. And that is pretty similar to the case up to the right where we have been building to EcoDataCenter in Borlänge, Sweden, or Kvarnsveden in Borlänge in Sweden for many, many years. So that is a trend as well, where we are looking for partners in our customers and -- but also the customers, they are looking for partners to secure their competence, resources to build what should bring -- give them some more earnings going forward as well.

And then recently, another data center to atNorth in Finland in Kouvola, SEK 2.2 billion. It was addressed as EUR 200 million in contract value, also an exciting contract that will be helping our Finnish business going forward with growth as well as margin expansion. But again, we are doing more than data centers. This is a slide showing data centers or other advanced technology projects. We are building to Lantmännen in Sweden. We are working with a hospital in Denmark. Hitachi Energy park in Finland. We are doing maintenance and service at Great Belt in [indiscernible]. And we are doing a converter that is called Viking Link in Denmark, and then we are working with airports.

Then to the left, you see group of data centers, which is a bit smaller. We are not only working with a big hyperscale data center. We are also doing what should or might be considered as small data centers, but still important and important customers for us in Bravida.

Acquisitions, still a bit slow and a bit tricky to find different ways to actually get the signature on the contract. We still think that the targets we are looking at is not good enough. And the one we really want to buy is a bit hesitating because they have been handling the downturn in the market in a really, really good way. So they want to wait until their earnings have picked up again. But the activity is high, and it's always on our agenda. And I hope, and I think that there will be some more activities in the fall after the summer. But still a bit to come, I would say, but we know we have the balance sheet. We are willing to do acquisitions. We think it's a good idea to do it. And meanwhile, we don't find enough of acquisitions. We are continuing to focus on other restructuring measures within Bravida, but also use some of the money, for example, to a buyback program. And I guess when I hand over to Petra now, she will say something about that later.

Yes. Thank you, Mattias. And great insight in some of the businesses that you share. So now we will go into the countries and the segments, as usual, and I will start with Sweden. So Sweden's net sales landed on SEK 3.6 billion, which is, as Mattias was mentioning, all the segments are up, and Sweden is up 7% year-over-year compared to the SEK 3.4 billion last year.

In Sweden, the organic growth is 8%, and this is because we are adjusting for acquisitions and divestments in the same bucket. So in this case, we have a divestment with ABEKA. We also have an acquisition which is still reporting in Sweden, that's Contub for the last quarter this time, they are reporting in acquisitions as well. But all in all, acquisitions is down 1%, bringing the overall organic growth to 8%.

Looking at the market and the business, we have solid demand in the northern part of Sweden. And the southern part of Sweden is picking up on the demand side as well. So slowly, gradually starting to pick up there. Installation and service ratio is 53% installation, 47% to service in this quarter. And with these numbers, we are landing on an EBITDA margin of 5.7% in the quarter. When we compare that to last year's 6.1%, we should remember that there is a restructuring charge going in, which is SEK 40 million in this quarter, and we have guided on SEK 70 million to SEK 90 million in restructuring. We have now, during the first half year, reported SEK 60 million and are expected to report another -- on the lower end of the SEK 70 million to SEK 90 million into Q3. On the EBITDA margin, when we adjust for the onetime effects, Sweden is reporting 6.8% in the isolated quarter.

Looking at the order intake, as you can see, we have taken in orders for SEK 3.6 billion, close to. And that brings us to total backlog of SEK 7.7 billion. In the backlog, we have the ABEKA divestment. So that is reduced in the backlog with SEK 560 million approximately in the quarter and in the backlog. So you will see that for the year as well. And I think Mattias also mentioned that. So that's Sweden.

If you look at what we have done then with the divestment of ABEKA, so you get the full picture of the transaction. The full transaction went through on April 1. And it has generated SEK 158 million of capital gain for the company. That capital gain is reported in the income statement as other income, and it's also reported on the group segment. So it's not reported in segment Sweden, but in group segment.

Net cash flow proceeds that are impacting the second quarter are SEK 208 million. They are reported as within the investment activities. So they are not affecting the operational cash flow nor the cash conversion rates. And then the order backlog that I was just talking about, the SEK 560 million, which we have reduced, they are impacting the segment Sweden since ABEKA was selling in segment Sweden, so that's reduced in that segment.

And why we are selling ABEKA. Well, we have already gone through this. It is not one of our core business. It is also not part of our strategy plan. So it's not a perfect fit, okay? ABEKA revenues was reported with SEK 470 million approximately on a yearly basis and SEK 36 million in margin, and we will adjust that within the acquisitions and divestments for the coming quarters as we do with acquisitions as well.

So going to Denmark. For this quarter, Denmark has reported a net sales of SEK 1.9 billion, and that is up 10%, and Denmark is now showing a growth of 11% organically since they have an impact on currency with negative 1%. With this, Denmark is having a double-digit growth for the first half year 2026. The split, 55%, 45% on installation and services generating then an EBITDA margin of 5.1%. And Denmark is executing on the transformation and recovery plan, and they are doing it according to plan, margins are landing as we were expecting. And this is done by selective projects and work on the cost side.

In Denmark, we have a decreasing order intake. So we have negative 33%, landing on SEK 1.9 billion for the isolated quarter. Last year's second quarter, we had a large industrial order, and Mattias mentioned that also to which customers. So that's approximately SEK 1.2 billion that came in last year, and that will skew the numbers a little bit on the year-over-year comparison. But if you see that Denmark is still having an order backlog of SEK 4.6 billion, which is a stable and good order backlog.

And looking at Norway, where we have the reported net sales of SEK 1.5 billion compared to SEK 1.3 billion same quarter last year. And Norway is up 11%, with an organic growth of 5%. And we are also having a positive impact on the currency exchange rate and a small impact on the Norwegian acquisition, which we will be reporting until Q4 this year. Split on the business, 40%, 60% on installation and service, and that brings us to a margin of 6.1%. And as you can see in Norway has improved the margin with 30 basis points -- sorry, 20 basis points over the year. Also on the first half year, you can see the improvement in the margin. And we are expecting Norway to continue improving somewhat with the higher sales.

In Norway, we have reported the Green Mountain contracts of SEK 4.3 billion -- a bit over SEK 4.3 billion in order intake this quarter. So with that, we are landing on SEK 5.8 billion in order intake and SEK 6.6 billion backlog. And as Mattias was mentioning, this order is expected to execute on from end of this year and throughout '27, '28, and a bit into '29.

Finland, SEK 650 million in revenue, up from SEK 552 million, brings Finland up 18%, and it is also 18% in organic growth since the currency impact and acquisitions are approximately the same, but with the -- in the different directions. In Finland, we are reporting an acquisition, which will be continuing to report until end of this year, also into Q4. Finland is also on double-digit growth on the first half year this year.

In Finland, we are seeing a gradually improved market as an underlying market. The data center market, I'm sure you have all noticed, is very good and improving, but there's also an improving underlying market. And we have a 70-30 split on the installation and services.

With the increase in net sales and with focus on cost, Finland is now improving the EBITDA margin and is landing on 3.2%, which is a good improvement from the 2.7% where Finland has been reporting last year.

On the order intake, we are seeing a flat order intake in the isolated quarter. However, the backlog has increased with the most recent orders taken that we have reported in Q1 and before. And the last -- the latest news on the Finnish data center is not included in this report because that was after Q2 closing.

Okay. If we then go to the financial positions, we are having a cash conversion of 77% compared to the 80% last year. And with that, you can see that we are also reporting a 1.3x net debt-to-EBITDA ratio. In our loans and papers, we do have approximately SEK 5.3 billion of potential loans that we can take. But they are utilized to SEK 2.5 billion, with the leasing SEK 1.5 billion, as mentioned, and 1.3 in the net [ debt ] to EBITDA ratio. If we exclude the leasing, we are on 0.9 net debt to EBITDA ratio.

We also have a cash position, which we are talking about a lot. So that is our disputes and outstanding payments, receivables. And with that, we have a ruling in the Norwegian dispute with the Stavanger University Hospital. The ruling came in, in June of this year, and it was to the large extent, into Bravida's favor, and the ruling is obliging SUS to pay SEK 320 million for installation work and SEK 145 million in interest and legal costs. The ruling can though be appealed until beginning of September '26.

And finally, Mattias mentioned a little bit about the share buyback program. And as you can -- as you have seen, we have had a share buyback program running in Q2 where we have concluded. The program was running until July 9, and we have repurchased 863,100 shares to the average price of SEK 115.85 and the total amount amounted to SEK 100 million, as we stated in the beginning that we would utilize for buying back shares. The Board has also decided today to carry out an additional buyback program during this third quarter of the year, and we are going in with SEK 100 million for buyback -- for that buyback program, which will be conducted August 13 and concluded before the Q3 report is released.

So that's with the buyback. And if you look at the sustainability reporting, we have the LTIFR of 5.3 compared to 5.2 in the last year's second quarter. We have a target of 5.5, and we are working proactively to decrease the rate. Proportion of vehicles, electrical vehicles is 50% compared to 40% a year ago, and the target there is 57% until the year 2029. So we are well in the reach. Change in CO2 emissions Scope 1, 36%, also improving quite nicely to the 22% last year, and the target there is 42% reduction until 2029. And the change in tons is, of course, following the earlier targets. So 35% there.

And with that, I invite you back in.

Thank you, Petra. We have improvement in close to all KPIs. That's good. Just a reminder, strong second quarter in -- yes, in general, overall, I would say, 9% organic growth is not too bad.

Not too bad.

7.5% margin.

It's also decent.

Yes. In EPS to Krona then earlier, I think that is up 60%, which is good as well. Cash conversion. We know it's a bit weak for the moment, but we also know that we -- the reason why we are not worried. We know that, that will be improving, becoming...

We are not worried, we know it will be improving, yes.

Yes. And then we have a very strong balance sheet, 1.3x the net debt. And then the LTIFR, a bit higher, but we are on quite good levels now. We're not happy or satisfied with that, but it is getting more and more trickier to improve that number. But we do our best.

Solid and exciting platform for long-term value creation is the headline of this slide, and I agree to that. Strong organic growth, improved margin. We have a significant increase in order intake and order backlog that will help us continue to develop Bravida going forward. We see that we are very attractive from both other customers and partners as well as existing and future employees, which is good. We are now entering into a new mode for many quarters, a couple of years now, we have actually taken out resources. Our -- my ambition and the whole management group's ambition has always been to create a stronger company in this downturn. So we can lead the downturn as a better company than we were when we entered it. And I think we are on our way to doing that. We have a transformation in society that gives us some tailwind. High customer trust, as I said, and attractiveness, both to new as well as existing employers, employees. We are seen as an attractive employer, and that is good.

Financial position, as Petra just told you about, is good, close to fantastic, and we are ready to invest that in future growth. And our market position gives us the opportunity to have a balanced portfolio of large, small, medium-sized contracts as well as a very high service revenue. So this is a really solid and exciting platform for long-term value creation, as we say on this slide.

So with that, before we open up for questions. Next report is coming out in the 23rd of October. Yes. Are we looking forward to that already? We have a lot of things that we should do before that, but...

We are looking forward.

Yes. And then you have the year-end report in February. But I think we open up for questions. The rest of the date, you can find on our website. So some questions, I guess.

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

So I wanted to start off with the data center orders, which you seeming you have quite a good momentum on. Could you share any thoughts on the margin here? I know you talked about more complex projects being a little bit higher in margin in general. Can you steer us in sort of any direction here or comment anything of the sort of magnitude when you have this large backlog, how that will affect the margin on a product level?

First of all, I think this is, as you say, an exciting market, an opportunity for us. And that's also why we are a bit cautious about what we should or will want to disclose or not because there is some competition in the market. We think we are ahead of the rest of the competition. So we are, for competitive reason, a bit more cautious in what we are telling the market in this segment. But as always, when Bravida is doing and looking at large projects, we have slightly, slightly different types of risk. It's not always the risk is higher. The size as such gives another perspective on the risk. But we are always pricing the risk. And it's not only what we are doing. It's also the contracts we are signing. And I think many -- that's the reason why we're not letting our branches work with this because there are complex contracts, taking our own lawyers many weeks to actually agree upon what should be said in the contracts.

But in general terms, you can expect a higher margin in those contracts that we have in the rest of the business. And I think we are -- that is what we will say. And yes, I think I'll stop there. Balance the risk and reward, I would say. The contracts, we are very -- it's a couple of things. It's the pricing and the margin, as you asked about, but it's also the terms in the contracts we are agreeing upon. That is important as well.

Got it. And then I just want to hear about any sort of cannibalization potential from this? I mean I assume that there could be some bottlenecks and maybe filling up the capacity that you have with these very large orders. Can you expand anything on how the sort of underlying business is developing during a contract as such? Do you see significant cannibalization? Or I mean you have obviously talked about using subcontractors, et cetera. Any quantification would be helpful.

Yes. I think it's a good question. There is a risk of cannibalization, as you say. But our main focus is to do this as well, not instead of. And then if we take the Stavanger area where we are working to Green Mountain, our local resources, they are supposed to continue service, the existing customers that they have had for the last 25, 30 years.

So we are not leaving the old partners, the loyal partners to us. We will continue to do that. Then on the other hand, of course, a lot of people in Bravida, they want to be part of this project. So it's a fantastic opportunities for us to foster new talents, give talents throughout the whole group, give them the opportunity to travel to Finland, Norway, whatever, to learn how to run large contract projects. So we will give them that opportunity, of course. But the main part of resources in the Stavanger area as well as in the Finnish area where we are going to build atNorth. They are supposed to continue to work with existing customers. And then we will use some to the data centers and then we solve the rest with new hire or subcontractors.

Perfect. I just have one more question regarding Sweden. Looking at you have taken some restructuring costs, just wondered about the underlying run rate here. So if we adjust for the restructuring costs and look at the margins, is there more to do, you think, in terms of the underlying margin development on the cost side of things? Or should we see that the underlying margin now reflects the run rate that you're supposed to have, excluding any sort of project ramp-ups in data centers that could expand the margin, et cetera?

No, it's a good question, and we are doing the transformation in Sweden. And as I said, we are going to finalize that exact transformation here now in Q3. Is there anything else we can do or more? Well, there's always things we can do. And I think there's always things we are doing. So we are focused on securing that we are delivering in the best ways that we have the best setups and that we have as little, for instance, administrative burden as possible on top of that we're doing an efficient setup and know how to deliver.

We're not really looking at any new transformative piece. But as an everyday business and all the time on execution, we're absolutely looking at, and Sweden is looking at the organization there. Norway, Denmark, Finland as well. What they can do more efficiently and how they can maximize the benefits for Bravida.

So we don't see that as a transformative. Will that always impact the margins? While we do think that we want to -- that we are working on the margins, so we want to keep working on the margins, but not everything will impact the margins when we do more efficiencies because we also do investments in new contracts, new sales opportunities. So I think you should think that the underlying margin in Sweden is probably where it should be when you take away the restructuring cost at this moment. Then, of course, everything depends on what type of contracts we bring in and how the business looks like the underlying business. So it can fluctuate a little bit up and down. But I think you should view it as where it should really be approximately.

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

Congratulations on the strong numbers here. First off, I want to -- or I wonder if you can expand a bit on the strength in Sweden, especially the acceleration compared to recent quarters, both in terms of the stronger sales growth and also the surprising -- a bit surprising strength in the margin here adjusted for the one-off. If you can sort of say if there were any specific one-offs here in this quarter? Or where the underlying drivers came from? I think you wrote about Northern Sweden being a big driver here, but if you can expand a bit more on that would be great.

Yes. But I think sometimes we try to simplify the world too much maybe, but we have been working -- I'm very proud of all the different countries, actually. We have been working for a couple of years now of taking out cost, adjusting the sizes of branches where the demand is a bit lower. So the management, yes, the things they have done locally has been fantastic. And when the market comes back a bit, then you have some support from the growth you get plus, plus, plus, and then the margin goes up. So I think this is not just luck and created by better markets. There's also a lot of management people in Bravida who's been struggling and done a lot of good things for a couple of years, and now it's paying off. So I'm so happy for them. And it's, of course, good for us to see that it's working. So in combination of hard work, smart things that they have been doing and then you have some tailwind from the growth in the market as well and then the margin comes up.

Do you want to add something, Petra?

I fully agree, yes. No one-offs. Yes, exactly, except the one that we are lifting the restructuring, but no other one-offs.

Great. That makes a lot of sense. And that also takes us to my next question here. I think it was impressive that you delivered this growth, the sales growth with continuing to reduce the head count on a sequential basis. I know you have said that you have kept some slack in the system here through the downturn to be able to deliver here once growth in the market comes back. And it looks like this is what we see right now. And I wonder if you have sort of closed that slack now you think? Or are you more on full capacity and need to start to recruit more now to deliver further growth? Or where are you in that kind of -- if you have slack in the system?

Yes, I think we still have slack in the system because we still don't see a very good market in the south part of Sweden. Sweden, in total, is good, but we still see some differences. So there is still some slack, absolutely. And what was the other part of the question?

Do we need to -- yes, exactly.

Hire, absolutely. Yes, and I'm really, really happy to say that we want to hire new people in some areas, of course. And yes, you said something about the growth as well, Simon, that yes, you can say, if I should give you something, we have the strong growth in the quarter, but it was actually even better in the end of the quarter than it was in the beginning of the quarter.

Great. Just as a follow-up on that. I think you also stated that you need to recruit some new personnel for this larger data center orders. But you also think that you will start to recruit more broader?

Yes. In some places, absolutely. I see more and more when I'm out in the social media and looking at it, I see several branches within Bravida who is now hiring. And I think this is a fantastic opportunity for talents in the industry or in adjacent industries that want to be part of a historical moment to build new exciting things that can help the society to develop. So if you know someone who wants to do a career change to a market leader in an industry, they are welcome to Bravida.

Agree.

I will look around. Just lastly here, timing on the latest data center project, the Kouvola, if I pronounced it correctly. Have you anything to say about that?

No, it will actually start in -- it's not an exact date, but in the, let's say, it will start and ramp up a bit in the third quarter, and then it will be ramping up throughout September, October, November. And I think then, it will be full steam ahead until it's finished.

All right. When finished, have you said anything about?

Yes, I think we said from '28, '29. So it's not decided to 100%, but in the beginning of '29, I guess.

The next question comes from Anders Akerblom from Nordea.

Just a few questions from my end. Firstly, it would be interesting to hear you elaborate a bit on sort of how the competitive landscape is sort of reacting now that the market is improving and returning to growth, sort of the contracts that you're signing now and maybe some of these larger projects in the pipeline. How do you see that developing from a competitive standpoint, from a margin standpoint would be interesting to hear.

I don't know. But I expect that they also see some kind of light in the tunnel. What we are saying or telling our people internally is that the prices will go up soon even more. If you haven't noticed it, be careful, protect yourself in contracts through index clauses, whatever, price a bit higher because I think that the market will develop to the better. And I hope our competitors see the light as well, and that will, of course, create a better environment in the whole market and that will be another support for our margin development going forward.

But I can't see anything yet. And I guess if you look and ask all the 300 branches within Bravida, I think they have different pictures of how the market looks right now. So that's why it's so important for us to tell them that the turnaround is around the corner, and it might be next month in some areas, and it will maybe take another quarter or 2 in some other places before it turns. And maybe it's not turning at all. So we need to stay focused on the cost, make sure we are doing the right things, working with the right customers who can pay because I think the last years have shown and learned everyone that doing business with partners that is not financially stable is a stupid thing. So we are looking to partners that want to work with us and can pay, and I think the partners is -- that's why they're hiring Bravida as well. And I think we have an advantage compared to some of the competitors because we have financial stability when it comes to slightly larger projects that not everyone has, and that is important in those contracts. So I'm looking forward to the pricing environment going forward, but we haven't seen it yet.

Yes. No, makes a lot of sense on the pricing side. I also wanted to follow up a bit on sort of your capacity to support these larger projects that are coming through. I mean, could you give any more detail on sort of the split, the actual sort of split between sort of internal head count and subcontractors or new hires since you don't want it, of course, to cannibalize on your bread and butter business. How many of the employees, so to speak, for the EcoDataCenter as an example or sort of subcontractors, if you're able to say?

No, we don't have an exact number for that. But again, I think you said it, it's some kind of optimization between our own resources. Of course, we want to have a core in those projects with our own resources to know the Bravida way, how to produce. So we get the reporting in place. So we are actually able to be in control of the projects. That's one thing. Then you can subcontract some of the things. And the mix there is different from Norway to Finland maybe. But again, it's so important to continue to serve existing and loyal customers and partners that we have been doing. We will continue to do that. Then we can hire new resources locally, of course, to take a local organic growth, and then we are sourcing some from the subcontractor.

So I don't know. We don't have an exact numbers, but -- we the majority will be external resources at least. That is something I can give you, a lot more than that maybe.

Okay, Mattias. I appreciate that. Finally, just on cash flow. You mentioned it briefly, but if you could elaborate a bit on sort of, I mean, the slightly weaker sort of cash flow in the quarter and maybe when we should expect some of these milestone payments, et cetera, to be reflected in growing year-over-year cash flow generation?

Absolutely. So on our cash flow positions, we do have a good cash flow. So the net debt to EBITDA is, as we mentioned, 0.9 excluding the leasing. So it's a very good cash position. In the comparison in the execution and just the operational cash flow that is going -- that we are measuring, that's where you see the fluctuations. So we do have years and quarters where we have very high inflows and quarters and years when we have lower. That's the strength of the stability that we have in our balance sheet that we can actually afford that.

So when it comes to the specific contracts we have been talking a lot about, it's just a -- to show a large contract in play with -- coming in with -- for us than in the cash position, large advances for the contract, it's not, it's just normal advances for the contract. It's just much bigger contract. And then execution on that, that takes it down. Right now, we are in the execution of, for instance, the Bypass Stockholm, and some other -- a couple of other large contracts, but that one is the one specifically creating this cash flow fluctuation.

We are expecting the new contracts -- not just expecting, most of our new contracts do have an advance with them carry on. But when you have the smaller, you won't have the fluctuations in the same way. You will actually have it just small fluctuations on the top. But with large contracts, we are expecting that you will -- it will be visible for all of us when advances are coming in, and we will have stronger cash inflow.

To the specific Bypass Stockholm, they are paying on their acceptance terminology and on the execution. So that's working absolutely to plan. Then it's going to continue working to plan. Where you will see Bypass Stockholm picking up, it's probably somewhere -- well, it's picking up already now on the positive side in the next quarter. But then you won't really see it because you see the entire Bravida. I will see it, but you won't see it externally. What you will see externally maybe from the Bypass is somewhere [ 27, ] but that depends on the other cash flow coming in. So if we have large contracts going in and out, it's difficult to see one single contract how it behaves. But we are absolutely expecting cash inflow from the contracts we are signing with advances. And on top of that, we are expecting, for instance, the SUS, the Stavanger Hospital, if that comes to a closing that might give a cash inflow as well. But we want to wait and see how that develops?

Yes, I agree to 100% what Petra is saying. But I think if we take a step back and lift the discussion a bit, we know that we have a cash conversion of around 100% for the last 5-plus year, yes. And it will -- when we have these large contracts going forward now, I think the variation in a certain 12-month period will be even bigger. So I think it's -- we need to, or you need to look at the cash conversion in the longer period as well because let's say that the SUS, Stavanger University Hospital have had decided to not appeal the ruling we got in Q2. Then we have had many -- a big inflow. And then the cash conversion, I guess, has been fantastic.

Now they haven't decided yet. So let's see what happens. On the other hand, we know that we have large contracts with a big inflow coming for the coming quarters. I think the cash conversion is a bit low [ momentaneously ] now. But if you look at the longer period, it is where it should be.

Yes. And we do think we should be looking at it for a longer period in order not to be too happy now if we get a lot of cash inflow.

Just a really quick follow-up on that. I mean could you share anything about the advanced payments, sort of what share that could amount to, the percentage term of the contract?

Right. So we don't go into each and every contract, but a typical contract in our business carries between 5% and 15% of advances, I would say. I don't know if you would say something different.

No, but I think we can.

Yes.

The next question comes from Johan Dahl from Danske Bank.

Just a quick question in your sort of PMO special projects operations. Obviously, they've been quite successful recently. But if you look on the work they're doing right now, is that projects that are sort of in a similar time frame, i.e., from '26 to '28, '29? Or is it sort of -- is that capacity already filled in terms of data center work? Are you looking more towards replacing these major orders that you announced recently?

No. But I think with the Central PMO we have is the reason why we can win those large contracts together with the local organization on country level or regional level, whatever. And of course, we want to continue to develop that part of Bravida as well. And as always, we are building it in a solid way from the ground. You need to start with a base before you go to the next level. And we have been doing that for many months now. So we have extended the team. We will continue to do that. And of course, we want to maximize the opportunities we have in the market.

But I also think, and I also think because I agree to everything there. I also think that what we are leveraging is the know-how on how to execute on these large projects. Then when adding new projects, that's really what we're leveraging so that the team that we have in hand is taking in other resources that they are building on, but still using the know-how that we have in the PMO. So it's not like we cannot take in more contracts. We can still do that even if it's in the same time frame, and not all the contracts are in the same time frame, we think, yes.

Then I would say that it's -- when I have the chance as well, and this is to our own branch managers as well to the competitors, I guess. This is a different type of sport. If you don't know, I think I told you in the meeting, was it last quarter review or was it some kind of Capital Market Days in some of the banks where we actually say no, thank you to our client because their contractual terms is too tough. You are risking the whole company if you're working with these companies. So if you don't know what you're doing, first, you need to know how to build it, but then you need to understand what contracts you're signing. If you don't have a legal or a couple of legal persons hired internally who know the risks in this industry and know what risk you're willing to take in your company, then you should stay away from this type of business, I would say, honestly.

All right. Just a final question on installation material cost inflation. Would you argue that, that had a material impact here in Q2? Or is that still ahead of us? And how have you mitigated that, if at all?

No, it's part of Q2, but I think it's still ahead as well. I think it depends on when the agreement is expiring when you are signing new agreements. Some agreement is expiring in Q3, then you have to sign new agreements on new levels. Our central procurement team is, of course, working hard to make sure that we get the best terms possible. And then we have the best terms in the industry, and that is what they are hired to do, and they will continue to focus on that. Then you have an information side of that work as well. When they see that they can't maybe keep the prices down, then we have a structural way to train and inform our branch managers, region managers, the management, how to price and protect themselves in the contract.

So I think it will be part of our business, daily business until the core of that problem is solved.

The next question comes from [ Jakob Söderblom ] from Carnegie Investment Bank.

I'll start in the 2 main markets, and I'll start with one then on the [indiscernible]. There have been some questions already on it. I'll keep it short. But are there any clear comparisons or differences compared to say, the Green Mountain project that you also announced regarding, say, the phasing of the revenue or the contract structure that you can tell us more about?

Again, we want to be a bit careful about what we are disclosing and not, but pretty similar. There are some differences, absolutely. So for example, it's some differences in design who is delivering some of the large critical material, et cetera. But in perspective of time when it should be starting and ending. I think it's pretty aligned, isn't it?

I think so. Yes. And on the revenue side, we are taking a percentage of completion. So as we build and go, we are taking the revenue.

Okay. That's Good. And also just thinking about and trying to understand how extraordinary this momentum is that you're enjoying the business right now. What can you tell us about the sales funnel going forward? Is it that you have -- you checked these boxes here and these number of announcements that you made and it's more of a, say, a gap until the next one? What can you tell us about the momentum?

No. But I think the momentum is strong. I don't think we know very much more about the market than you do. But of course, we hear about plans. Again, we are preferring to work with partners. If we can continue to work with some customers, clients for many data centers ahead, we are preferring that because I think that is an absolute win-win situation. You know what they want to have built, we can help them, they know that we know, et cetera, et cetera. So there will probably be a lot of opportunities, but we are thinking long term and try to do the smartest things for us and the clients to make sure that we are creating a long-term partnerships. But we know that the plans in this industry are very interesting going forward as well.

Final one question for me. If you can just reiterate the message you had on Denmark. How should we view the further improvement in the margin from here? Is it more internal work to be done for efficiency measures? Or do you say that's probably more volume-based and the developments coming from here?

Yes. Of course, there is more work to do internally. I think I normally say that we are never happy about the result. We can be proud, and we think it's, of course, nice to be able to present a good great report like this, but there is always more things you can do. We, I am absolutely expecting margin improvement in Denmark for the coming quarters as well.

We are, absolutely. If you just go back on Denmark's story. So they are already executing on a plan, taking in new and they have already taken in. So it's not the start of the story. It's an execution of the story. They have taken in new orders, thinking about what margins should we take on, what risks should we take on. And those new contracts are executing well. They still have a little bit of legacy left. So that's why the margin doesn't pop up right away. It has to work through some cycles. And of course, they also have the cost side to work as all of us do, but that's not really the big part of their story. The big part is to transform the business, which they are doing, I would say, yes.

The next question comes from Hela Zarrouk from ODDO BHF.

Yes. I have 2 follow-up questions on the financial impact of the new project. How should we expect the SEK 4.3 billion to be phased over the 2026-2029 period? And what revenue contribution should we expect from this project in H2 2026 and in 2027? And in terms of margin, we understand that the margin profile of this type of contract is, let's say, above the group average. Does the project include indexation or price adjustment mechanism to protect margin against cost inflation?

Petra, [indiscernible]. Then you can take the rest. Yes, we are protected. Then you can take the rest, Petra.

It's good to hear from you. So as you know, we will not be able to go into the details of a specific contract like this is. But we do have, and I think you could take that, too. We have said that the execution of the contract is starting somewhere end of Q3. And then we are expecting the execution to continue to end of 2028 and perhaps into beginning of 2029. So that's the execution profile. I can't really go into the specific profiling per quarter or year on where the revenue will be how much since that is part of the contractual execution. And unfortunately, I also cannot go into how it will contribute to the EBITDA margin. But we have communicated earlier that these contracts come in with a higher margin typically. There's a bit of higher execution risk since they are long-term contracts. They run over many years, right, or several years. So that's a bit of a risk. So it all boils down to how well we execute. We are confident that we have a good execution muscle, but that's what I -- what we really can say about the margin, I would say. I hope that's helpful anyway.

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

Thank you all for listening in. Again, I'm not satisfied, but I'm very proud of being able to present this great report together with Petra. And I'm so proud of all our employees who have been fighting, struggling, done so many good things and all the hard work they have actually contributed with throughout the last 2 years, and now it's finally paying off. So really proud of the whole Bravida team and also grateful for the trust we get from all our important customers and clients as well. So it's going to be really exciting to lead Bravida after the vacation as well because vacation is starting tomorrow for us, isn't it?

It's starting tomorrow.

Yes. Hopefully. Let's see. So we get a couple of weeks off and then we will come back even better after that. So thank you all for listening in, and have a great summer.

Thank you.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The next question comes from Anders Akerblom from Nordea.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

You never know.

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

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

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

Yes.

Nothing that I know today, no.

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

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

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

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

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

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

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

No, I think the pipeline is good. Yes.

Yes.

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

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

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

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

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

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

Perfect. I think you recovered my other question.

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

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

Thank you.

So are we ready to say goodbye?

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

Exactly. So see you soon. Bye.

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

Petra Vranjes, here as well.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

With that, I hand over to you, Petra.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Operator Instructions]

The next question comes from Oscar Ronnkvist from SEB.

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

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

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

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

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

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

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

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

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

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

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

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

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

The next question comes from Carl Ragnerstam from Nordea.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The next question comes from Johan Sundén from DNB Carnegie.

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

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

In this quarter.

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

That's a nice one.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Thank you, everybody.

Bye-bye.

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

Petra Vranjes, hello.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

SEK 400 million or SEK 500 million?

Or a couple of hundred million, I think.

Yes.

We discussed that in previous quarters.

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

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

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

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

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

But do you still expect the seasonal factor?

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

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

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

Can you quantify the efficiencies as well?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Yes.

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

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

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

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

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

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

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

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

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

Thank you, everybody.