Knaus Stock

Hello, and welcome to the Earnings Call of the H1 Results for 2026 from the Knaus Tabbert AG. I also warmly welcome the company's new CEO, Thomas Nickel; CSO, Matjaz Grm; and the CFO, Radim Sevcik, who will guide you through the figures in a moment, followed by a Q&A session. And with that, I hand over to you.

Thank you very much. Good morning, ladies and gentlemen, and thank you for joining us today for the presentation of Knaus Tabbert's results for the first half of 2026. Today is also the first results call with our newly constituted Management Board. Before I take you through the financial performance, current market environment and outlook, I would, therefore, like to give Matjaz and Thomas the opportunity to introduce themselves briefly. Thomas, perhaps you can start.

Thank you, Radim, and good morning, everyone. My name is Thomas Nickel, and I assumed the role of Chief Executive Officer of Knaus Tabbert on the 1st of July. I'm pleased to have the opportunity to introduce myself today. I've spent more than 2 decades leading industrial companies through periods of transformation, operational improvements and sustainable growth. Throughout my career, I have held leadership positions across manufacturing, supply chain management, purchasing, sales, quality management and commercial operations, with a strong focus on operational excellence, commercial performance and disciplined execution.

Over the past months, the first of -- as Chief Transformation Officer and now as CEO, I have worked closely with the management team and gained a comprehensive understanding of both the strengths of our business and the challenges we are addressing. Knaus Tabbert has an excellent foundation: well-established brands, innovative products and dedicated employees. At the same time, we continue to operate in a demanding market environment that requires disciplined execution and a clear focus on operational and financial performance.

Looking ahead, our priorities are clear. We will continue to improve efficiency across the value chain, further simplify our operations and product portfolio where appropriate, maintain our strong focus on product quality and innovation and manage working capital with discipline. Consistent execution and cash generation will remain key priorities as we continue to strengthen the business.

While there is still work ahead of us, I'm convinced that Knaus Tabbert has all the ingredients to create sustainable value over the long term. Together with Radim, Matjaz and the entire management team, I'm fully committed to building a stronger, more resilient company for our customers, our employees and our shareholders. With that, let me hand over to Matjaz, who will introduce himself before we move on to our financial results.

Thank you, Thomas, and good morning to everyone. I hope you hear me well. I'm somewhere on the road, joining this call for 10 minutes to introduce myself. My name is Matjaz Grm, and I joined the Management Board team as the Chief Sales Officer on the 1st of August. I started to work with Knaus Tabbert as external consultant adviser on sales, marketing and product topics since January 2025. So went through 1.5 years of a hard transition and a quick restructuring and improvement of the position the company was facing with. And now I'm glad to be part -- official part of the Management Board as a CSO.

I'm bringing extensive experiences from the recreation vehicles industry. I was working for 15 years with Adria, which was part of Trigano. So started in 2008 as external consultant and then 2010 took the sales and marketing position in the company and drove it through to the quite good success, including the transaction with Trigano and the post-merger integration. I stepped out 2023 and, in the beginning of 2025, I joined Knaus Tabbert as external adviser, as I said. My focus will be strengthening the commercial position of the product portfolio of Knaus Tabbert group, aligning the products and the production more closely with the actual consumer demand and supporting the dealer network and gradually broadening our international sales base outside Germany as well.

The current market requires quite a high level of discipline. There is still an intense competition, price pressure, margin pressure versus the weakened demand in the last quarter. It's not about generating the wholesale units and pushing them to the retail with a big discount, but really to create a solid consumer demand, a retail demand, which will maintain a strong dealer relationship for us and a good margin position. And my role here is to really define the right products at the right price that will bring the right profitability to the company. And I guess the first half of the year 2026 shows some signs of recovery with that. So this is a short presentation from my side, and I give word back to Radim.

Thank you very much. Thank you, Thomas, and thank you, Matjaz. Let me now turn to the financial performance for the first half of 2026. The key message from the first half is that profitability improved materially compared with last year, and despite the lower revenue and the market environment that became more difficult during the second quarter.

Revenue amounted to EUR 503.9 million, a decline of 11.9% compared with the first half of '25. Unit sales declined by 8%. This development reflects primarily that prior year period was supported by the sale of vehicles that had already been produced in earlier periods. As you can also see, the total output has increased by 2.5% to EUR 519.4 million. The difference between revenue and total output is explained primarily by the inventory development.

In the first half of 2025, inventories were reduced by EUR 71.9 million. In the first half of 2026, the change in inventories was positive EUR 9.8 million. Production in the first half was higher than in the low final quarter of 2025. This resulted in an increase in finished and unfinished goods, and work in progress and supported the absorption of production costs.

It is therefore fair to say that the development in total output contributed somewhat to the improvement in profitability. At the same time, the earnings improvement was not primarily an inventory effect. We benefited strongly from the measures taken to adjust our cost base, lower other operating expenses and significantly lower the adverse effects from dealer insolvencies and the remarketing of returned vehicles compared with the prior year period.

Adjusted EBITDA increased from EUR 22.7 million to EUR 36 million, and the adjusted EBITDA margin improved from 4% to 7.1%. This is tangible progress, and it shows that the measures that we initiated are having an effect. It is, however, important not to extrapolate the first half margin directly into the second half. I will return to that when addressing the guidance.

The order backlog, if we move back to that indicator, amounted to EUR 340 million at the end of June, and this is 15.5% above the prior year level of EUR 294 million. At the same time, the backlog was EUR 114 million below the level at the end of 2025. This reflects seasonal effects, but also the more cautious ordering behavior of dealers as market momentum has weakened during the second quarter. The order backlog continues to provide a degree of visibility, but the conversion into revenue depends on production schedules, dealer call-offs, requested delivery dates and also the developments in end customer demand.

Let us now turn to cash flow and the balance sheet. The group generated operating cash flow of EUR 27.4 million in the first half of the year 2026. We started with net income of EUR 11.5 million, and the cash flow bridge then includes a negative movement of approximately EUR 3 million from working capital and other operating assets and liabilities as well as approximately EUR 18.9 million of noncash and other effects.

Investing cash flow amounted to negative EUR 5.4 million. There, we continue very strongly to manage our investment expenditure carefully while maintaining that spending required for our products and operating capabilities. Overall, this resulted in free cash flow of EUR 22.1 million for the first half of the year 2026. The cash generated was largely used for interest payments and the reduction of financial liabilities.

Let me explain one point on the slide, which otherwise may lead to confusion. The net working capital number of EUR 195 million shown at the bottom is a point-in-time comparison with June 2025. The negative EUR 3 million shown in the cash flow bridge represents the movement during the first half compared with December 2025. That's why these are different comparison periods.

It is also important to note that inventories increased by around almost EUR 19 million compared with the end of 2025. This was also the main reason why cash conversion was weaker in the second quarter of the year. Operating cash flow in the second quarter alone was negative EUR 5.1 million, and the second quarter free cash flow was negative EUR 8.4 million.

So while we are pleased with the positive cash generation for the full first half of the year, managing production against actual demand and avoiding a structural increase in inventories will remain an important priority during the second half of the year. Net financial debt stood at approximately EUR 296 million at the end of June, which was EUR 22 million above the June 2025 number, but below the approximately EUR 309 million that we reported at the end of 2025.

Now before moving to the market development, let me briefly address financing. The financial covenants applicable at -- on the 30th of June 2026 were complied with. The refinancing of the instruments maturing in June 2027 is of critical importance for the company, and it's an absolute priority for the Management Board. We have already started the necessary preparations early, and we are actively working through the available options.

Our objective is to put in place a sustainable financing structure that would be appropriate for the future operating and cash generation capacity of this business. As you will understand, we will not comment on individual discussions with financing partners, specific structures or any intermediate process milestones. We will, however, communicate further when there is concrete information that is appropriate to disclose. For now, the key point is this is being addressed with the necessary focus and urgency.

Let me now move to the market environment. The charts show, and we try to provide sufficient details so that the messages come out relatively clear. The charts show both the cumulative development for the current model year from September until June, but also the most recent development during the second quarter. This distinction is important.

For the model year-to-date, the European motorhome market remained 3.7% above the prior year level. However, registrations in the second quarter were 14.6% lower year-on-year. European caravan registrations were 2.7% lower for the model year, while Q2 was broadly stable. In Germany, motorhome registrations were still 2% above the prior year model year level, but declined by 24.4% in the second quarter. German caravan registrations were 8.3% lower for the model year and broadly stable during Q2.

The cumulative model year figures were supported by the stronger earlier months and by pull-forward effects connected with the introduction of the Euro 6e emissions standard that we reported in the last quarter call. The second quarter figures, therefore, provide a more cautious picture of the current underlying momentum. June, however, showed some signs of stabilization in selected categories.

Dealers continue operating with shorter planning horizons and are more selective about the vehicles and delivery dates to which they commit. What is helping us is that the dealer inventory of Knaus Tabbert products has declined very materially from the peak levels of '24 and '25, and we continue to remain very disciplined. We do not intend to pursue, as mentioned by Matjaz, market share or wholesale volume at any price. Production and deliveries must remain aligned with actual retail demand, while targeted commercial measures can be used where they make economic sense.

Now moving on to the outlook slide. Based on the performance in the first half of the year and our updated assessment of the market environment, we have refined our guidance for 2026. We continue to expect group revenue of around EUR 950 million. We now expect the adjusted EBITDA range to be within a narrower range of 5% to 6% compared with the previous wider range of 5% to 7%. The unchanged revenue expectation reflects the existing order backlog, our current view of order intake and dealer call-offs, and the production and product mix that we're currently planning for the second half of the year. The narrowing of the margin range reflects the weaker market momentum observed since the spring and the resulting need to manage production more cautiously.

There are several reasons why the 7.1% margin achieved in the first half of the year should not be regarded as a run rate for the remainder of the year. First, we expect lower production volumes, which will result in lower capacity utilization and weaker fixed cost absorption. Second, the number of available production days is seasonally lower in the second half, including due to scheduled plant holidays, which we currently have, for example, now in our factories. Third, we intend to continue to align production closely with demand, and we aim to also work through the first half inventory increase.

The range also reflects uncertainty around product mix, pricing, targeted promotional measures, and the timing of the full benefits from the ongoing operating improvement measures. We are not assuming a rapid market recovery in our forecast. It assumes that demand, pricing and competition as well as the broader macro and geopolitical environment do not deteriorate materially compared with our current assumptions.

Our priorities for the second half of the year are, therefore, clear: disciplined implementation of the cost and productivity measures, flexible and demand-driven production, tight control of working capital and liquidity, a strong commercial focus on attractive products and sustainable dealer relationships and continued progress with the refinancing process.

This brings me to the end of the presentation. Let me summarize the principal messages. We achieved a material improvement in adjusted EBITDA during the first half of the year, and the operating measures initiated are beginning to produce results. At the same time, the market environment remains challenging. This requires a cautious approach to production, inventory and commercial activity during the remainder of the year and going forward. The positive free cash flow generated during the first half is an important contribution, but the development in Q2 also demonstrates why working capital discipline remains essential.

Finally, the refinancing process is of critical importance to Knaus Tabbert and is receiving the full attention of the Management Board. We have made progress, but the transformation is not complete. Our focus remains on disciplined execution and delivering the refined full year guidance. With that, I'd like to thank you for your attention, and we're now ready to take questions.

[Operator Instructions] And we already have 2 raised hands. Ellis Acklin you should be able to ask your question.

Okay. Can you hear me?

We can.

Yes, before I jump into questions, thanks, everyone, for jumping on the call and allowing us to ask some questions. And also, congratulations to Mr. Nickel, Mr. Grm on their appointments. Obviously, wish them all the success in their new roles.

So 2 questions I'll start with. Just want to unpack a little bit further the change in inventories we saw in Q2. It was quite a positive swing after a couple of quarters of destocking. If you could maybe just provide a little bit deeper color on what drove the build as it relates to model year preparation versus maybe sell-through levels, and how much of that inventory you expect to be able to unwind in the second half of the year?

And then as a second topic for now, I know you don't guide on this, but maybe just some indication on where you see the travel of direction for the net debt level by the end of the year. Obviously, that's going to be important in your ongoing discussions regarding the refinancing. So maybe just some comments on the net debt level would be helpful as well. So I will leave it at those 2 questions for right now.

Thank you. Thanks much. You're absolutely right. One of them will be an extensive answer, the other one will probably be, unfortunately, relatively short. But let me go with the more extensive one first, which is regarding the inventories. I think what should not be underestimated is that it's always what you compare to. Ultimately, this business has a certain level of seasonality. When one compares the numbers at the end of June to the numbers at the end of December, there is always -- one should consider that at the end of December, we don't have a fully running production.

We also collect quite a bit of our receivables, quite a bit of our production has been stopped for a couple of weeks at that point, et cetera, et cetera. So there are effectively effects which are seasonal, which then result in the developments and movements. When it comes to the things that I believe make sense to explain and address, first of all, we have slightly higher level of material on stock for our production. That is driven by multiple considerations. Some of them are related to making sure that we do not end up with similar shortages that we ended up last year. So we have increased certain stocks of material for our production.

But it's -- secondly, we also have a relatively higher level of unfinished goods. That is driven by effectively the same reason that leads us to increase some of our stocks of material because with some of our smaller suppliers, in this case, this does not concern the big ones, but it concerns some of our smaller suppliers. In particular, it does actually concern the luxury segment. We have higher unfinished goods inventories because of missing relatively small pieces that, however, prevent us from finalizing the goods. Now there are solutions. This is not one big amount of stock sitting there for months. It's a rolling stock. At the same time, it does increase a little bit the level of unfinished products that we have.

And thirdly, we should also mention that Knaus Tabbert, as such, we are a producer, but we also own 3 dealers. And clearly, the dealer inventory is also something that is moving. We're consolidating those dealers. So a level of finished goods on the dealer balance sheet is also reflected on our balance sheet. What I should, however, address very clearly is the movement is not a reflection of any change of our strategy in terms of producing on stock or not producing on order. That has not changed. We will remain very focused on making sure that this strategy and this approach remains the guiding principle of our operation.

So this particular development is largely seasonal with couple of effects that I will now mention as being a little bit more extraordinary. But at this point, something that we're actually quite actively managing and relatively comfortable with going forward. When it comes to the other question, net debt, you're right. We don't guide on net debt until the end of the year. At the end of the day, I think one can, however, say, from also what I mentioned about working capital, we are very carefully managing it. The seasonality you've seen in some of the prior years when one takes away the effect of corona or the whole situation that we had at the end of '24 and quarter of '25, the seasonality is a given.

So one can take that into account. We're extremely careful with our CapEx, so we're limiting cash outflow in that direction. And when it comes to our profitability, the guidance that we provided until the end of the year is the one that you can take into account in calculating where we could end up by the end of the year. So I don't -- we don't plan for any changes in strategy or exceptional items that would strongly impact this approach to estimating where we could land.

There is another raised hand by Ingo Schmidt.

A warm welcome and best wishes to the new Board members in their roles. I would like to start with your product lineup. With the Caravan Salon coming up soon, what early feedback or customer interest are you seeing for your new models? And moving on to your operational margins, your adjusted EBITDA margin improved in the first half. Which cost-cutting steps are currently working best to help protect your profits for the long term?

Ingo, thank you for the questions. So when it comes to the general feedback on our product range, so far, we can mostly judge from the feedback from the dealers themselves. Because the way we introduce the product range, we have dealer days where we introduce them, and we gather feedback, and we also gather the orders from the dealers. That feedback has been largely very positive. And as such, it gives us some level of confidence when it comes to the model year that comes ahead.

When it comes to end customer demand, there, right now, it would be too early to actually answer that question. We really need to wait until after the Duesseldorf show, which would be a key anchor for us to see how our products are being received by the end customers. So for that, it's a bit too early. But certainly, the feedback from the dealers and also the reaction of the dealers, when it comes to their orders, have indicated that when it comes to the new developments, the company is moving in what we believe is the right direction.

When it comes to our EBITDA and what are the most important measures that would be improving our profitability, ultimately, I wouldn't want to really focus it on 1 or 2. It's always a combination of things. You need to work hard on managing your costs on the purchasing side. You need to improve your efficiency. Unfortunately, in our case, we also had to take relatively painful measures when it comes to reducing our head count and overall capacity. I mean all of those measures ultimately come into play. And at the same time, on the other hand, you need to very carefully manage your revenues and your pricing policy, making sure that you can generate the margin that you've built into your modeling. So it's really a combination of factors, many of which have a very, very high swing effect on our EBITDA.

Right now, we believe we're on the right course, both on the pricing side, product side as well as cost side. But that's just the internal side of things. Then one needs to react to what's happening outside in the market, which is both the overall end customer environment and customer demand as well as the competitive situation, and that is something you can't really predict. So that we need to work with. And depending on how that develops, we might then need to further look into our measures internally, cost structures, et cetera. So there, we want to remain very nimble and very flexible in steering this company in the right direction.

There is a further raised hand by Johan van den Hooven.

It's Johan van den Hooven, Value8. A few questions from my side. At the time of the Q1 results, we -- and before, we were talking about the price pressure from competition in the luxury segment, and you were saying, at the time of the Q1, that's sort of vanishing, that effect, and you expected normalized margins from the second half. Is there any change in that situation? Or are you expecting normal margins in the luxury segment for the second half?

Understood. Thanks for the question. First of all, I mean, as you know, we don't guide towards what's H1, H2, and we don't guide by segment. But in order to be helpful, I do believe it would be prudent enough, but at the same time, helpful enough to say that we have always been planning in the luxury segment, with a certain uplift in the second half of the year. And also our current planning includes that particular uplift when it comes to the margin to be realized by the luxury segment in the second half of the year. So that particular evolution is -- remains intact. We also believe that there are good reasons why that's the case. One of them being that in the first half of the year, there was still some residual stock of older -- I wouldn't want to go into too much detail, but older parts that MORELO had to place on the market, and that has successfully happened. So we're not taking that older stock with us into H2, and that should allow MORELO to improve their profitability.

When it comes to the pressure on the market, that was indeed the case. Currently, however, we are seeing that the pressure still remains there. We believe not to that extent. And certainly, MORELO having worked through the -- what I mentioned was the inventory situation in H1, it should put them on much better footing to generate a healthier margin, but it is really to be seen. And critical there will be the Duesseldorf Messe, which is a very important one for the luxury segment when it comes to also generating end customer demand to then book business until the end of the year. So overall, yes, that particular direction remains intact. But to what extent it will then materialize then really depends strongly on Duesseldorf.

Okay. Another question is, you said the transformation process is not completed yet. Just a short question, when do you expect it to be finalized? And what are the sort of 2, 3 main items still to be done?

The basis of continuous improvement is that your transformation is never finalized. It's ultimately where I think we will be headed. I think also with the new Management Board, both Thomas and Matjaz come from environments where I guess they are never satisfied with the status quo and want to improve things, which we see happening on the ground, and we're very happy that we see it happening on the ground. And as such, I don't think there is an endpoint.

Now when it comes to making a distinction between improvement and transformation, if one can make that distinction, I think it really depends. If the market were to suddenly -- and I don't want to go into speculation, but if the market were suddenly to start growing, et cetera, the transformational elements of adjusting our capacity, et cetera, are probably close to done. And what is left to do is the transformation internally when it comes to increasing our efficiency, improving our processes, digitalization, et cetera, where we see a lot of potential still and still a long way to go.

If the market were to not be cooperative, then clearly it is our duty to make sure that we look afresh at the new situation and come up with a new plan, and that could mean further transformational steps. So difficult to assess, but you can rest assured that we remain very vigilant, and we will react quickly.

[Operator Instructions] And we have another raised hand again from Ellis Acklin.

Okay. Yes, just one quick follow-up here. So I know you just said you don't want to speculate on what's going on with the market and so forth. Could you maybe say whether you feel comfortable with the situation, that if the market does deteriorate that you can reduce your production in time to prevent sacrificing the cost base improvements that you've achieved over the past couple of quarters?

I mean, one, we will not sacrifice any cost improvements. In that case, one would simply need to make more cost improvements. And I would probably say...

I guess -- sorry, Radim, maybe offset would be the better word than sacrificing.

Ultimately, honestly, at this point, I think it would probably be inappropriate to go into speculating about my level of comfort or discomfort. We're working on a competitive market. We are strongly convinced that this is an industry which has a strong potential. There are headwinds, but there are also tailwinds. It goes through cycles.

We've gone through quite a significant turmoil in the industry in the past 3 years. How quickly that turmoil can normalize and in what direction the market will go also depends on what competitors do, which is out of our hands. All we can say is we need to work hard to make sure that we get the company ready for whatever comes, and that's exactly what we're doing.

A last reminder to ask your questions. And since there do not seem to be any further questions, we come to the end of today's earnings call. Thank you for your interest in the Knaus Tabbert AG. A big thank you also to the CEO, Thomas Nickel; to the CSO, Matjaz Grm; and the CFO, Radim Sevcik, for your presentation and your time. And should any further questions appear at a later date, please feel free to contact Investor Relations. I wish you all a successful day and hand over to you, Radim, once again for your closing remarks.

Thank you very much. Thank you for joining us today and for your questions. As you can see, we are making progress, and H1 is a testament to that. At the same time, there is still very important work ahead of us. And I would also like to thank the whole team for preparing the materials and working so hard to get us where we are right now. There's more to go, but it's a pleasure working with them. Thanks much, and wishing you a nice day.

Good morning, ladies and gentlemen, and a warm welcome to today's earnings call of the Knaus Tabbert AG following the publication of the first quarter results of 2026. I'm delighted to welcome CFO, Radim Sevcik. So he will speak in a moment and guide us through the presentation, followed by a Q&A session where we would be happy to take your questions. And having said this, Radim, I hand over to you.

Thank you very much. Good morning, everyone, and welcome to our first quarter '26 call. Thanks very much for joining. It has not been very long since we last spoke, and as a result, and luckily, there is no dramatic change in the overall picture or our strategy. The company remains focused on executing the plan that we discussed previously. Working on our product initiatives, operational improvements, sales and dealer management, cost-based adjustments and making sure that we keep a very tight working capital discipline.

The first quarter should be viewed primarily as a quarter of continued execution, further operational stabilization and also showing visible benefits from measures implemented last year and early this year. This presentation is intentionally focused on the key developments and the genuinely new information, not repeating the messages that we've covered 6 or 7 weeks ago when we last spoke, but we're obviously happy to discuss additional details in the Q&A afterwards.

Now let's move to the first slide. The first quarter '26 reflects a significantly healthier and more standard operating quarter for Knaus Tabbert. The EBITDA improved materially year-on-year, which happened despite lower reported revenue. This reflects operational improvements as well as a more normalized business environment because Q1 2025 was quite not a normal comparison quarter. At that time, operational productivity in early '25 was heavily disrupted with all the measures that we were implementing, and also reported revenue in Q1 '25 benefited from unusually high inventory reductions.

The large amount of older inventory that we sold down at that point was part of a deliberate effort to reduce the company inventories, support dealer destocking and normalize the overall channel environment. Many of the units that we sold and the inventory change, the EUR 55.5 million you see there that we then realized, were sold with substantial discounts. And as such, they carried comparatively low margins. As such, first quarter 2026 represents a healthier revenue profile with significantly lower inventory effects and also healthier operational economics.

The total output, as you can see, increased by 1.3% and as such remained relatively stable and also reflects current operational capacity and efficiency levels. If we look at the order book, the order backlog remains broadly stable versus prior year, but with a slight increase, and it reflects the market dynamics that we discussed with you previously where our dealers today operate much more cautiously. Their ordering behavior is increasingly driven by visibility and sell-through rather than a substantial inventory buildup, which is healthier structurally, even if it leads to somewhat lower backlog visibility than in past years. Overall, we view Q1 as an encouraging step in the normalization and stabilization of our business.

If we move over to the cash flow and working capital slide, Q1 2026 was also a relatively normal and healthy quarter when it comes to our cash generation potential. The positive cash flow was supported by both operational performance as well as disciplined working capital management and a controlled investment activity. We've generated EUR 32.6 million in operating cash flow, where working capital development was supportive as is seasonally typical in this period.

We've generated -- or rather, we've generated a negative EUR 2.1 million investing cash flow, which is a comparatively low number, and it shows that we've remained very selective and disciplined in our investment spending, focused primarily on necessary operational and product investments. And this allowed a strong free cash flow generation in the quarter that we then used primarily to service our interest obligations and reduce our financial liabilities.

If we then look on the left-hand side of the slide, the charts there illustrate a year-on-year development. So it should be noted that these are not sequential quarterly movements but these are year-on-year comparisons. As you see towards -- or compared to Q1 2025, our inventories reduced significantly. That is an impact that you've, obviously, already seen in our prior quarters, and the level that we've -- that we're operating at in Q1 2026 is a stable level for a company running the level of production that we are right now.

When it comes to our receivables and payables, these also reflect a more normalized operating environment, especially on the receivables side. You see less distortion coming from exceptional inventory reduction measures and also a better alignment between our production, our deliveries and our dealer activity. On the payables side, there is still very low credit insurer line availability, which is impacting our ability to increase payment terms with our suppliers. Overall, Q1 '26 represents what we believe a rather sustainable operating first quarter for the business that we're running right now.

If we move to the next slide, it covers the market environment and registration data. This slide helps put both the market development and also our own market position into context. On the left-hand side of the slide, you see the registrations in both Europe and in Germany as our largest market, and also the split between caravans and motorhomes. On the right-hand side, you see our market share development in the respective segments and geographies.

At first glance, the registration data shows a very strong increase year-on-year. However, it is very important to understand that these figures were materially influenced by onetime regulatory effects especially in February 2026. The reason is that a significant number of vehicles were registered ahead of the expiry of the Euro 6d derogation period. The dealers registered remaining eligible vehicles before the regulatory deadline, and these were primarily vehicles already sitting in dealer inventories.

As a result, registration figures were temporarily inflated, but this should not be interpreted as a comparable increase in underlying end customer demand. Without this effect, the underlying retail demand has remained comparatively stable. The registration growth, as such, then overstates the actual market improvement. But at the same time, again, the level of stability in the market shown in the first quarter figures is there.

When we look at our market shares in Europe, the overall market share development remained relatively stable. You see an increase in caravans where we continued to perform well and a stability on the motorhome side. In the motorhomes, the market share, especially in Germany, was somewhat lower year-on-year, and there are several reasons for it. First, the comparison period in '25 benefited from significant sell-down of existing inventory. A number of older motorhome products were sold at attractive pricing levels, and these vehicles then translated into more positive registrations in the market.

Second, we're currently refreshing and further strengthening parts of our motorhome product portfolio, as we've covered several times, I think, already. This intends to improve the competitiveness and support our future market positioning and that product renewal process is progressing according to plan. Thirdly, the registration effect in February also impacted our -- the comparability of figures. Since both our own inventories and dealer inventories have already been substantially normalized, our exposure to these onetime registrations was comparatively lower than for some of our peers.

In a way, this reflects the fact that much of our older inventory had already been cleared earlier. That is, I believe, positive as a reflection of the efforts that we've made last year. At the same time, it does have an impact on the registration figures that you are looking at. If we then conclude on this slide, we view the registration data in Q1 less with enthusiasm that these increases would indicate more with caution in terms of stability of the market and the headline growth rates being distorted by the temporary registration effects is something that should be taken into account.

Now if we move to the final slide of this relatively short presentation, based on -- or on the back of the results of our first quarter, the Executive Board can confirm or reconfirm our guidance for the full year 2026, where we continue to expect to achieve around EUR 950 million in revenue and an adjusted EBITDA margin in the range of 5% to 7%. This would conclude the presentation side, and I would now like to open up to questions.

[Operator Instructions] We will start with the questions from Ingo Schmidt.

This is Ingo from Montega. It is good to see the operational progress in Q1, particularly the significant improvement in free cash flow. I have 2 questions regarding the sustainability of this performance and your product mix. First, you achieved a strong EBITDA margin of 6.3% this quarter. Looking beyond the low base effect from Q1 2025, which was impacted by the inventory clearing at lower prices, how confident are you that the structural cost savings will keep margins stable at this level for the rest of the year?

And second question, we see a very positive trend in your camper van segment with an 80% increase in units sold. Could you tell us more about the demand for these models? Do you see the segment as a key driver to balance out the current challenges in the broader motorhome market?

Thanks, Ingo. So when it comes to the margin confidence, I probably have to be relatively prudent. In the end, our guidance, 5% to 7% adjusted EBITDA margin, indicates to you where we believe we should be landing for the full year. Q1 is pretty much in the range. And as such, we do believe that this particular performance of our business in terms of marginality will be delivered across the full year.

Now clearly, that depends on all of the various effects that go into the EBITDA calculation, be it our revenue performance, be it the material costs that we will continue having, be it the margin we can generate on the vehicles that we sell into the market and the end customer demand, et cetera, et cetera. But right now, with the visibility that we have and with the performance that the business has delivered in Q1, we're relatively confident that the guidance that we've provided is -- can be reconfirmed.

When it comes to the camper vans, it is indeed a very interesting segment for us. It's been also a very successful segment. What I think is really important to highlight there is the importance of introducing new products because ultimately the reason why our camper van segment or one of the reasons why our camper van segment is actually comparatively stronger than our motorhome segment, is that the camper vans -- the product range has been renewed relatively recently. And you can see that, that has a very strong impact on the end customer demand.

When it comes to our motorhome segment, that's exactly where we want to be headed in model year '27, which starts in the summer this year and also model year '28, where we believe that with the new products that we plan to introduce into the market, we'd be able to more competitively perform there as well. So in general, I would not say that we want to compensate the camper van -- with the camper van segment, we want to compensate the motorhome segment. We'd rather want to strengthen the motorhome segment as well. That will be more our strategy.

That was very helpful. I wish you and the whole team much success for the rest of the year.

Thank you very much.

And then we had a virtual hand from Ellis Acklin.

I have one question for right now. Looking at the margin improvement in Q1, how much would you attribute that to some of the structural cost actions versus product mix or your production phasing and maybe the inventory drag that you had last year? So just kind of want to get a better understanding on what the main drivers for that improvement.

Sure. I mean ultimately, the way I look at Q1 2026 is that we finally managed to have one quarter where the company could to a large extent perform in a reasonable, sustainable way. We had much less disruption, much less one-offs. There was -- there were clear orders. The distribution channel has been largely cleaned up. And this is a reflection of where we stand right now operationally. So I would say it is ultimately a result of all of the above that you mentioned. No less disruption compared to 2025, but also all the cost actions that we've taken both on the overhead side as well as the, let's say, initial steps towards productivity improvement also in the variable costs. And as such, Q1 for me is truly the base from which we should be striving to improve further. I would really look at it that way.

Comparing it to Q1 '25, you can certainly look into the individual items that build it up. You can look at our material [ costs ] being now a little bit lower, a relative stability on the personnel costs, but lower other operating expenses where we've also generated further savings. You can always split it into these little bits. But ultimately, the most important thing is really to take Q1 2026 and to improve on that, and that would be our ambition going forward.

Okay. Just a quick follow-up on that. Would you -- would it be fair to say that Q1 is sort of close to the blueprint you've been aiming for, for literally several quarters now to get a normalized business performance?

That would probably be maybe too strong of a statement, but it is certainly the quarter that we've been partially hoping to have in Q4 last year had it not been for the chassis disruptions and all the other impacts that we had there. There was certainly part of our plan and part of our budget last year was that Q4 would be the, let's say, the first undisturbed full production quarter. That has not happened. And so Q1 is the first indication of where we should be headed.

Now it should not be considered a blueprint as such because, as you know, well, first one -- first thing, we've introduced further measures. We've made further personnel and cost cuts in the organization in January and February this year. We are running multiple initiatives to further improve productivity, but also look into our input costs and other elements as well as working hard on the product range to make sure that we can truly compete with our products and possibly also enhance our margins on that side. So overall, let's say, our ambition would be higher, but also, let's be quite realistic. The reason why the guidance for the full year is 5% to 7% adjusted EBITDA is that many of these impacts that we would like to introduce into that business will take some time to work themselves into the system, point one.

And point two, ultimately, a lot is then also dependent on what the end customer demand looks like and also overall a business environment. I think we've highlighted in our report quite extensively the most recent things that I think many businesses right now are looking at, and that is the development in raw material prices, potential disruptions in supply chains, and also a relative, let's say, careful behavior by end customers across consumer discretionary. And so these are all the things that we also need to look at. So blueprint is probably too strong of a word, but definitely a first quarter where one can sit and say, okay, this is where we managed to deliver what we set for ourselves for that given quarter.

Okay. If I can be so bold, one quick follow-up and then I'll jump back in the queue. Would it then be fair to say -- so macro issues aside, but it sounds to me like you're not fighting the market as much now and it's more about optimizing things internally. Would that be fair?

When you say fighting the market, do you mind elaborating on that a little bit, please?

Well, I mean, the theme for quarters now has been the dealers specifically.

Yes. Well, again, I do believe, and that's what we mentioned in the past few quarters as well that, that particular situation has been addressed quite substantially. So you're right, in that sense, we're not trying to fight the market. We're obviously fighting in the market with our products to make sure that if some of our competitors still have residual stocks or if the end customer demand weakens, that we remain competitive and we can hold, let's say, healthy margins and make sure that we deliver what we provided as guidance to the market.

And then, yes, we're then mostly focused on making sure that we do things that we can control, which, to a large extent, is making sure we have the right products and that we produce them in an efficient way. So you're absolutely right. Right now, the focus is very strongly internally, but that internal focus includes also our products, which then impact our situation externally.

Radim, that's great. From my side also, all the best for the rest of the year.

Thank you very much. Thanks.

So ladies and gentlemen, before we move on with Johan van den Hooven, so by now he's the last one who has questions. [Operator Instructions] So Johan, we are now ready for your questions if there are still open topics.

Johan van den Hooven, Value8. I have 3 questions. I will do them one by one. We have talked about the guidance -- full year guidance for EBITDA. I want to talk about the full year guidance for revenue, perhaps less important than EBITDA, but revenues were down 15%, 16% in Q1. Guidance full year is minus 5%. Can you give us a bit more detail how you want to see an improvement in the coming quarters? Is it market? Is it mix?

Johan, let's go -- I assume you indicated you want to go one by one, so let me maybe take -- you're right, the revenue has decreased compared to Q1 2025. But what should not be underestimated is the impact of the inventory change because ultimately what was happening in Q1 2025, and I think we've been quite open to the market about it, that our -- the only way how we can build a stable, healthy business is to make sure that we address the issues that we were carrying with us. And the biggest issue, or one of the biggest issues that we were carrying with us, was certainly that what the company managed to do in 2024 is largely block the distribution channel and at the same time produce vehicles on stock.

And so the Q1 2025 was impacted very heavily with us looking at, one, making sure that we clean up our balance sheet, but also support the dealers in cleaning up theirs. And at the same time, we were fighting very heavily with high insolvencies at the dealers where we had to buy back vehicles from the dealers and place them back into the market. Now at that time, the logic was you could either say, I want to retain my profitability and I will be dragging these things on for quarters on end and ultimately get there, or I can really try to support the market in this cleanup.

And our plan was more the latter, i.e., really use the first 6 months of the year, which was -- and tends to be Q1, Q2 seasonally strong quarters also for end customer demand to make sure that we use that market to really place our products, generate liquidity, clean up the distribution channel and be able to properly start on firm footing as of September. And so the revenue in Q1 2025 should be looked at as partially revenue generated with, let's say, very -- for the end customer attractive prices, and for the dealers attractive prices of placing our products into the market. And that has generated the higher revenue. When it comes to our output, it is pretty much on the level that we had last year.

To address the guidance topic that you asked about, we feel quite comfortable that the around EUR 950 million that we're guiding towards is achievable with the performance in Q1. I mean it's roughly 1/4 that we've now generated. And given that January is impacted by a production stop for the first 2 weeks of the year, and February is a short month, 1/4 generated in the first quarter of the year is roughly spot on.

Okay. There's an additional question about the inventory, and you had some more problems in the luxury segment with -- well, problems with competitors with -- they want to get rid of their stock at low prices. Has that -- does it belong to the past? Or is that still ongoing in the luxury segment?

It's -- I would not say it belongs to the past, but I wouldn't say it's ongoing. It's basically -- the situation has significantly improved. And also with our competitor as far as we understand from the information that we have available. We also see -- and not only Stuttgart, but also business generated in February and March have been quite healthy in the luxury segment. And so we're relatively positive that, let's say, the first 2 quarters, we will still have some residual topics that we need to address in that segment. But beyond that, we should be generating the full margin that we would expect from that business going forward.

All right. That's good to hear. The next question is about net debt that has gone down nicely. Can you give us an update about your conversations/discussions with the banks?

So the banks are, as you -- as I think I informed the market, they are very closely tracking our performance. They're getting regular updates when it comes to where we stand. And we have multiple discussions scheduled in the coming weeks. We wanted to make sure that we get Q1 out of the way. Also, I think these are relatively healthy results that indicate where the business is and that quite a bit of work has been done. And on the back of these results, we will have multiple discussions coming in the coming weeks to really start talking in earnest with the banks about the next steps. So that is an ongoing discussion.

Okay. That's clear. Last question for now. You mentioned visibility and a question about your order book with EUR 363 million, still not a huge amount. What about the feeling of the dealers? Are they still hesitant to order? Has that improved?

No, that has not improved, and we actually don't even expect it to improve substantially in the short run. I think -- or we believe, that in the next quarters, potentially maybe even a year or 2, this level of very prudent behavior on the dealer side will continue. Ultimately, the industry has capacities to produce vehicles. And so the incentive for the dealers to stock themselves up with vehicles is relatively limited. So dealers can afford to have some level of visibility before they go ahead and order.

Now clearly, there are incentives that the dealers benefit from to order early. And we are working very closely with our dealers to make sure that those incentives provide enough of an ordering push so that we retain the level of visibility that we would like to have. But we don't necessarily expect that particular behavior to change substantially.

When it comes to the feeling of the dealers, that is difficult to comment on. But I can certainly say that the market is now relatively careful after the developments, especially geopolitically. There is a certain level of, let's say, holding back when it comes to the end customer demand. It's not quite substantial, but it's -- one can already feel it, and the dealers are obviously reacting to it.

And we are in live discussions with all of our dealers to make sure that we track it carefully, how the end customer market is developing and if we need to, how we react to it. So overall, there is no exuberance among the dealers. There's also no depression. But everybody is now looking at the market and how it develops and wondering what the situation around the world is going to do to the market.

Thank you so much for your questions. So in the meantime, we did not receive any further questions. So therefore, we would come to the end of today's earnings call. So we say thank you for showing interest in Knaus Tabbert, and also a big thank you to you, Radim, for your time today. So from my side, I wish you all a lovely remaining Tuesday and hand back to you, Radim, for some final remarks.

Thank you very much. Thank you, everyone, for attending. Thank you to the team for having prepared the presentation and all the hard work that goes into this, and all the Knaus Tabbert fans and employees who work hard to make these things happen. And we just need to keep going. Thanks much, and have a nice day.

Welcome to the full year figures of 2025 earnings call of Knaus Tabbert AG. Also, a warm welcome to the company's CEO (sic) [ CFO ], Radim Sevcik, who will guide you through the figures in a moment, followed by a Q&A session via audio line and chat.

And with that, I hand over to you, Radim.

Thank you very much. Good morning, and thank you all for joining us today. It has been a few months since our Q3 results. And since then, a number of important developments have taken place, both in our own operations and in the broader market. Today, I would like to take you through where we stand after the full year 2025, what we've achieved, where we have fallen short and how we see the path forward.

Let me start with the key message upfront. 2025 was a year of continued realignment. We have made tangible operational progress in a still distorted and competitive market environment, but we are not yet where we want to be, particularly in terms of profitability. From a top line perspective, revenue came in broadly in line with the expectations we had set for ourselves. However, profitability was materially below our initial expectations. This was primarily driven by the following factors: continued pricing pressure across the market due to elevated inventory levels, dealer insolvencies, supply chain constraints, most notably chassis availability and selected operational impact of our measures and one-off effects. At the same time, we've taken decisive actions throughout the year to address these issues, and I can comment on these later.

As you know, at the start of the year, we have deliberately reduced production levels in order to bring inventories down across the system, both our own and at our dealers. We have made significant progress with working capital, which is reflected in the marketplace and also on our balance sheet and cash flow. And we have initiated a structural reset of our cost base, including adjustments to personnel and operating expenses to better align the organization with current and expected demand levels. These are not short-term measures. They are necessary steps to restore a healthier operating model and to rebuild the foundation for sustainable profitability.

Turning now briefly to the market environment. End customer demand has remained broadly stable, but the system as a whole continues to adjust. Dealer behavior remains cautious. Inventory levels across the industry are improving, but still elevated, and pricing continues to be selectively under pressure. In that context, our focus in 2025 has been on control rather than volume, prioritizing inventory reduction and operational discipline.

Looking ahead to 2026, we expect further progress, but we remain cautious. We expect revenue of around EUR 950 million and an adjusted EBITDA margin in the range of 5% to 7%. This reflects the impact of the measures we have already implemented, particularly on the cost side, as well as a gradual normalization of inventories and pricing. However, we are not assuming a rapid recovery. The market environment remains uncertain and macroeconomic and geopolitical factors may continue to influence both demand and dealer behavior as well as our supply chain.

So overall, our message today is a simple one. We've taken meaningful steps to stabilize the business. We're addressing the structural issues we identified. We are seeing results, particularly in our inventory situation, our working capital and cost structure. But the transformation is ongoing, and we remain focused on disciplined execution.

With that, let me now walk you through the details of the year. This slide summarizes the highlights of the year when it comes to the key financial figures as well as many of what I now mentioned in the introduction. As mentioned, our revenues have reached EUR 1.002 billion in 2025, which is in line with our original guidance. When it comes to our profitability, our adjusted EBITDA in 2025 has reached EUR 27.3 million, which represents a 2.7% adjusted EBITDA margin. That is materially below our initial guidance and has been driven heavily by, as I mentioned, higher price pressure from industry-wide inventory overhang as well as many dealer insolvencies, which went above and beyond what we have expected and pushed us to repurchase many vehicles and remarket them on the market, generating often a negative margin.

The other impact was the chassis shortage, which we have extensively reported to you also in our Q3 call as well as in the ad hoc that we had to publish that had a very substantial impact on our production levels as well as our production efficiency and production mix in Q4 2025. Thirdly, there were some operational elements that I'll get into a little bit later on as well, which have contributed to the weakness in our profitability.

At the same time, we did make significant progress, both in our inventory situation and with our working capital management. We managed to generate significant cash flows. We've also adjusted our cost base, and I'll get to that on the following slides. And we are working hard in the background and to be shown with model year '27 to be introduced to our dealers shortly and to the market in the summer. We're working hard to make sure that we renew our product base and make sure that we come with more attractive products on the market to be able to defend our margins and generate more volumes.

The free cash flow generated in the year amounted to EUR 46.1 million. The way it's calculated is, we sum up together the operating cash flow and investing cash flow, as such, netting out the -- or neutralizing the effect of capital structure. That is way above the result in 2024, where we achieved a negative EUR 34.5 million free cash flow.

If we look at the segment split, you can see that both segments have been weaker than we would have hoped for. On the revenue side, we are pretty much where we were guiding to. But on the EBITDA side, we were impacted both in the Premium and Luxury segment by the effects that I've now mentioned.

Now let's first look at the overall market. On the left-hand side, you see the development of the registration numbers at the top in Europe, at the bottom in Germany, which is our core market. On the right-hand side, you see our market shares. You can see that there is a very healthy level of stability in the market, both in Europe and in Germany, when it comes to the overall registration numbers. Also, in 2025, the market has remained stable.

If we actually look at the individual segments, there are 2 big segments, the motorized vehicles and the caravans. You can see that the caravaning market, as multiple times discussed, is gradually going down, while the motorized market is actually stable or, when it comes to European numbers, slightly growing by 0.6%.

When it comes to our market share, we have maintained our positioning in the market and maintained our market shares, both in Europe and in Germany. We are strengthening in the caravaning market. But given that, that market is decreasing, overall, our volumes there are relatively stable. And when it comes to our motorized market share, you see a slight decrease, but I think I've explained it already earlier. That is largely down to a relative one-off effect in 2024 related to registrations into the rental segment, which were extremely strong for Knaus Tabbert in 2024. Hence, we do not actually see this particular development as indicative of a shrinking market share, and we do see ourselves across the key segments that we're present in and the end customer market as being relatively flat.

Moving on to the revenues and the inventories. As mentioned, our objective was really about restoring system balance. One can only look at the development of the charts of revenue and order book and inventories to be able to draw a pretty obvious picture of order book going up due to corona demand and dealers being very optimistic. That allowed the company to generate revenues against that order book, which then resulted in the order book gradually shrinking and at the same time, inventories accumulating both on our balance sheet, but mostly also on the balance sheet of our dealers. That was a very unhealthy situation that in 2025 was addressed by us decreasing our production very substantially to allow for digestion of volumes.

One number that's not mentioned on this slide but is probably quite illustrative of what has happened in the marketplace, we had -- when we combine together the inventories on our balance sheet and on the balance sheet of our dealers, there were more than 16,000 vehicles in the market in the summer of 2024. Until September 2025, we managed to get that number to a level around 11,000. This decrease was only allowed for by low production, which had to allow for not only us to be selling our inventories, but also dealers to be able to sell products to the end customers.

Moving on to the next slide. The only way how to sustain a low production and at the same time, how to prepare for a market that will be stable, and we're certainly not planning at this time that, that market will be substantially growing is to make sure that one structurally addresses the cost structure. Our objective was, from the very beginning, to keep and -- to reach and keep a long-term sustainable and efficient structure that can allow us to generate healthy profits on the back of the market that we're in.

On the left-hand side, you see the development of our -- of the number of our group personnel. You see that between the end of '24 and the end of '25, we have decreased the number of employees by 16%. Now that is not the full reflection of the measures that we've taken.

Point one. The starting point could actually easily be put at the level of the end of 2023 because the measures that we started to take started taking effect already immediately at the end of 2024. So the number of 3,935 (sic) [ 3,953 ] is already impacted by us having released a substantial amount of agency workers that have been included in the number that you see in 2023. So overall, between the end of '23 and the end of '25, the company has reduced its workforce by 22%.

When it comes to our additional steps that we're taking right now, and you will see it in the EBITDA adjustments, we have taken a further provision for further severance payments that we have also executed in the first 2 months of this year. And currently, the headcount that the company has is around 3,150 employees.

If we then move on to the other operating expenses, there, you can see a very substantial decrease of more than 30% in total. That is partially, and I've explained that before, I think, partially down to certain elements in 2024 being elevated. But at the same time, you see the decrease also compared to 2023, and the level is roughly on the level of '22 if you take into account inflation. We are working further to make sure that, that item goes down. There is -- there are more efficiencies that we can generate, but a lot of the items that are left are tied to our revenues and not that easily influenceable.

Now moving on to the profitability. I think we have been informing you throughout the year where we stand. And we've been always very transparent when it comes to explaining how our business is developing and what our business is being -- what assumptions we're building into the guidance that we're providing. As you know, the first half of the year has been about truly decreasing the production to a maximum level that we can still hold to make sure that we digest the volumes. And at the same time, after the Dusseldorf show to be able to go back to regular production and generate the profitability that we were guiding towards at the beginning of the year.

There were a few effects that happened, which we've described in our Q3 report and Q3 call. And the most important, ultimately, was a missing supply of chassis, which resulted in us not being able to generate the profitability, which was, for the whole year, largely back-ended into Q4, and we were not able to generate that profitability in Q4, resulting in a material miss towards the guidance that we provided at the beginning of the year.

Overall, when one looks at our profitability and compares where we were guiding towards and where we ended up, one can probably look at 3 different drivers. Driver number one is overall price pressure and inventory overhang. That touches both the Luxury segment and the Premium segment. The Luxury segment was not immune to this. And on the opposite, we actually have experienced a larger impact on our margin in the Luxury segment relatively to the Premium segment. The Premium segment was more impacted by the insolvencies where the vehicles that we had to buy back, and there were multiple hundreds of vehicles that we had to buy back, were then sold into the market with a negative margin. As a result, the price pressure and the overhang, which still continues in the market but is now normalizing gradually also from our competitors, has contributed to us not delivering the marginality we expected.

The second effect, and I mentioned that already, were the missing chassis in Q4, and that was very substantial to our ability to generate the profitability we indicated. And then the third effect was an effect of our cost cutting, which impacted the productivity of our workforce, both organizationally in terms of once you release 20% of your employees, largely on the back of a social plan with very little ability to impact the selection of employees, you end up then moving employees around your factory to retrain them for positions that they maybe didn't do before. That was one impact.

The other one was partially motivational probably because we have been struggling with relatively elevated illness rates in our factories. That situation is gradually improving, and we're working hard to make sure that it improves further.

Now on this slide, one last thing I'll comment on, and it might -- it is actually quite important is the bridge. The bridge itself is probably relatively self-explanatory. From the reported EBITDA, we have adjusted for the weight-related litigation that we've published with an ad hoc before Christmas, where we found an agreement or we agreed to a fine that we then paid and settled that particular issue. The EUR 3.4 million is then the net effect on top of the provision that we had on our balance sheet before. Then personnel measures are the ones which I mentioned before, which are related to the further personnel measures that we're taking this year and many of them we have already implemented in the first 2 months of the year. And then IBR update, that probably deserves -- definitely deserves more attention.

We have reported to you and told you on the call at the end of Q3 that we are holding our covenants. That was true. At the same time, once we understood that the Fiat deliveries were being delayed, we understood that at that point, it might be very difficult for us to hold the covenants until the end of the year. That's when we engaged immediately with our banks to start discussions about next steps. We then hired FTI-Andersch to update their IBR, which has been prepared for the amendment of our credit agreement already in the beginning of 2025. And as a result, we have -- we then embarked on an update and renegotiations of our contract with our consortium banks.

That contract has been successfully amended earlier this month. And as such, we have had our covenants updated as well as some other items in the contracts have been -- in the contract have been amended. But overall, the structure -- the capital structure that we have remains in that context intact and the situation through these measures that we've taken has stabilized.

Now the IBR is important also for another item, and that is in the context of the IBR, but to be honest, mostly in the context of our budgeting for 2026, we have defined a further set of measures that we would aim to implement in 2026, many of which we've already started implementing. As I mentioned, some of the cuts that we had to do have already been taken. Many of the negotiations with our trade unions, et cetera, have already taken place. And this package of measures is then also the basis of the -- of our planning for 2026 and is also implemented in the IBR.

Now moving on to the balance sheet and cash flow. This is largely a rearview mirror type of perspective, but it still highlights what we've done in 2025 to be able to stabilize our balance sheet to the extent that we can influence it in a competitive market. Point one, you see the substantial decrease in our inventories, which is across the board from finished, unfinished products as well as raw materials. You see a relatively stable situation with trade receivables. That is largely down to the fact that at the end of 2024, our receivables were reflecting a company that has stopped operating or stopped producing for 6-plus weeks. And as such, the level of receivables that you see at the end of '24 is largely artificially lower at the end of 2025. This reflects a normally functioning company.

And then trade payables are lower. That, as you understand, is something that then requires us to have more funding coming from other sources. The explanation there, and I think I've mentioned it probably on every call that we've had is that we currently do not have enough and we also do not expect that situation to change. We don't have enough lines from the credit insurers. And as a result, the payment terms that we receive from our suppliers are relatively limited.

Notwithstanding that, our cash flow generation when it comes to our operating cash flow managed to create EUR 54.6 million. Despite the negative earnings, you see that both the changes in working capital and other effects, mostly depreciation, amortization and other elements typically in that bucket helped us generate that result. We've been very conservative when it comes to our investing cash flow, having spent only EUR 8.5 million on investments, significantly down from the prior years. And as a result, the operating free cash flow that we've generated as per the initial pages has been quite healthy. A lot of it has then been used to pay the interest on our leverage. And then you can see the change in financial liabilities, part of which has been the EUR 20 million tranche of the Schuldscheindarlehen -- of the loan note that we paid in, in June 2025. One number is not included here, but it's obviously quite important is that at the end of 2025, the company had a net debt of EUR 309 million.

Now, how do we plan to improve our profitability? We are extremely focused on making sure that in 2026, with a different, much better backdrop when it comes to our distribution channel, when it comes to the overall market situation, when it comes to us having adjusted a lot of the structural costs that we've been carrying and with a clear plan, we're extremely focused with a clear plan of measures to achieve the profitability that we're guiding towards. We've highlighted some internal initiatives that we have control over. And we've also highlighted some external assumptions that we have a little bit less control over.

As we've mentioned on multiple calls, we are focusing on our products because that's the basis to make sure that we're providing attractive options to our customers and can defend our pricing. We're heavily focused on the cost measures to be implemented across all of the cost items on our P&L. We're carefully managing our supply chain to navigate the situation that we've had, not the least what we've learned from Q4 2025 and the missing chassis situation, but at the same time, the situation that we now see developing geopolitically and how that could potentially have further impact on us. And we are very focused on the operational efforts to increase the efficiency and productivity in our production.

What we control a little bit less, and I think it's important to mention this just to understand what really is the basis of the guidance that we're providing is we expect the customer demand to be relatively resistant to the current macro and geopolitical headwinds. We do not expect the market to grow substantially, but we also do not expect the market to decrease substantially. We are working on the basis of relative pricing stabilization because we do see that the situation with inventories has largely normalized, certainly when it comes to our inventories and inventories of our products at our dealers, but also our industry competitors have taken steps throughout the year to address the situation, and we do believe that the pricing stabilization assumption is a reasonable one.

And we also expect the dealer confidence to not deteriorate any further. That is also an important assumption because in reality, we're not expecting dealers to be much more bullish. That is not underpinning our guidance. Our guidance is conservative to the extent that we assume dealers to remain conservative and careful, but at the same time, open for business.

And then thirdly, that probably goes without saying, and you must have heard it on multiple calls in the past week or a few days, the situation -- the geopolitical situation developing in the market with oil prices, but not only oil prices, but oil-related prices and commodities increasing, that situation is evolving. We're trying to stay flexible and react to that situation, but we are not assuming a material impact from that situation to impact our guidance. If that were to be the case, that would obviously have potentially an impact on us as well.

So just to repeat the guidance that we've provided in the ad hoc last night. For the financial year 2026, we expect to achieve around EUR 950 million in revenues and an adjusted EBITDA margin in the range of 5% to 7%.

Now to the last slide. We, as you know, stepped into our roles at the end of 2024 with Willem de Pundert and myself. Alongside us, we've had a stellar team of senior management that we could rely on that helped us execute on many of the initiatives that we set for ourselves and for the company. At the same time, we were looking how to strengthen the management team further. I would just introduce some of these people just very briefly.

You have Karin Topisch, who has been in the COO role as of the end of 2025. She's done an incredible amount of work in the past months, and she's spearheading our effort to implement the operational measures that we've set for ourselves. She's been with the company for multiple years already and is trusted by the employees as well as the management and the shareholders.

When it comes to Matjaz Grm, he's been with us since early 2025 in his role as adviser to the company, formerly with Adria Mobil. And currently, as of the summer 2025, he's taking up the role of CSO, and he is absolutely instrumental when it comes to driving our product strategy as well as distribution strategy and other topics.

And we've now had a new addition to the management team, to the wider management team. It's [ Thomas Nickel ], our Chief Transformation Officer, who we decided to take on board due to his extensive experience in implementing difficult measures in the context of operational companies because we believe that we -- the company would certainly benefit from additional bandwidth to have somebody 100% focused on implementing the difficult measures that continue to lie ahead of us, and that should bring us to the level of profitability that we set for ourselves. He's been on board since several weeks ago, and his role is becoming quite instrumental in complementing the expertise of all of us together to drive the company forward.

So this concludes my presentation part, and I would now like to open the floor to questions.

[Operator Instructions] And the first question is coming from Ellis Acklin.

Can you hear me?

I can hear you.

I'll kick things off with just two topics right now, one backwards looking and then one looking ahead a bit. So starting looking back at last year, I was wondering if you could maybe give us some hints as to the margin quality for the vehicles that were produced and sold in 2025. And maybe some guidance on how we should think about a normalized gross margin going forward.

And then my second question, touching on your comments regarding the IBR and negotiation with the banks, debt maturities due in 2027. Can you maybe talk a little bit about what sort of concrete milestones you might have for the end of 2026 in terms of liquidity, covenant headroom refinancing preparations? Just a little bit more in depth on how that's going to be handled. So I'll just start with those two for right now.

Thanks, Ellis. So when it comes to the first one, the margin, and I tried to address it also in the presentation. Overall, when it comes to the products that we've been producing in 2025, certainly in the Premium segment, we have actually been not far from our budget. So there, our planning was actually quite correct. What became more difficult to manage were the higher-than-expected returns of vehicles from insolvent dealers, which we have created a provision for. We have taken some vehicles away from them already at the end of 2024, et cetera, et cetera. But remarketing those vehicles at higher numbers than we had expected into a competitive market became a big drag on the marginality in the Premium segment, much less so our ongoing production. That was running quite well.

When it comes to Luxury segment, there, the market is smaller in size and dominated by a few players. And there, the situation has been much more competitive when it comes to the existing players working against a relatively high -- as far as we can tell from public information, a relatively high level of inventories, which then resulted in quite a bit of price competition that our brand had to react to in supporting also the existing sales. But that situation has also developed throughout the year. And we don't expect such a heavy impact to be had in 2026.

So overall, when it comes to our '25 numbers, I would say insolvencies and very heavy pressure in the Luxury segment have been the 2 biggest drivers when it comes to us achieving our margin. Now we're not providing guidance on gross margin, and I would probably refrain from commenting on that. But I think, hopefully, the explanation I gave you now as well as some of the assumptions I highlighted when it comes to why we provide the guidance that we provided should give you some insight of how we're thinking about it.

When it comes to the banks -- so the bank agreement has adjusted the covenants to our new planning. And so as would probably be reasonable to expect that as long as we deliver our planning, we should be fine on the covenant level. The covenants have been adjusted until the end of the maturity of the credit line. And as such, we simply need to deliver. When it comes to the capital structure as such, what we're planning to do starting pretty much immediately after this call has concluded, we want to start engaging with the various capital structure providers to start discussing with them the -- in general, the situation in the market. And we have a very clear plan of what we want to achieve, and this we will pursue that proactively starting already in Q2. So our target would be to make sure that we take all the necessary measures in time to avoid any nervousness in the market once the maturities are approaching.

And we will move on to the questions from Ingo Schmidt.

This is Ingo Schmidt from Montega. I have two brief questions. First, your equity ratio has decreased to 14.9% following the net loss in 2025. What specific steps are you taking to strengthen the balance sheet again while funding the necessary transformation?

And second question is fuel and gas prices are rising significantly in 2026 due to new CO2 taxes and the Middle East conflict. To what extent do you expect these higher cost of ownership to reduce the demand for new vehicles? And is this trend already factored in your revenue guidance?

Thank you, Ingo. Thank you for the questions. When it comes to the equity ratio, there, the answer will be relatively short. The best way how to address the equity ratio is via profits. And that's exactly what we're planning to achieve. Right now, we're focused on making sure that we realize the operational restructuring that we're going through. We believe that '26 should bring many more fruits of the steps that we've taken than 2025 necessarily has. And as a result, we believe that the best way to address that situation is by generating a positive net income, which will then gradually improve our equity ratio.

When it comes to the fuel and gas prices, I think there are multiple channels how these could potentially impact us. One channel is the direct cost to our company, but we are not -- gas prices, et cetera, are not a large part of our cost structure. So there, the impact is relatively minimal. And then it comes via the demand and the supply channel. In the demand channel, we -- it's difficult for us to assess whether the impact will actually be positive or negative.

While even though the prices -- increase in prices in fuel could have a negative impact on the demand of vehicles that drive on the road, at the same time, the reason for that spike is geopolitical instability, which then could result in people focusing more on domestic holidays or European holidays. And at the same time, via the channel that I'll describe as a third one, which is the supply channel, it could actually end up supporting, at the very least in the short term, the demand for leisure vehicles because it could lead to a general inflation, which, as many customers have experienced during the corona times, has then led to people rather purchasing those vehicles earlier than later.

So that would be the demand channel. The supply channel is then related to all the commodity prices and everything that comes into our cost structure indirectly via our suppliers. Currently, we are -- and as far as we've discussed with our suppliers, none of them are planning for these impacts to be long term. And most of them are indicating that if this were a short-term impact, they will be able to smooth it over. But clearly, if that impact is more medium to long term, this could result in an increase in our inputs, which we would pass on to our customers to the extent that we could. And that would then result in potentially higher prices, which, assuming the same volume would result in higher revenue but assuming decreased volume, could result in stable or lower revenue.

So again, the impact of the situation that we're now all observing is relatively multifaceted. And we don't see it as a purely negative impact, to be clear. At the same time, it's very difficult to assess. And we're simply making sure that we're flexible enough to react to anything that comes in our direction.

And next line is Alessandro Cuglietta.

I have just two questions. I'm just curious about the full year sales outlook, which implies a 5% decline. What's underpinning that assumption because end consumer demand is not bad. I think it's slightly positive. Is it still due maybe to high inventory levels or further normalization needed? Or maybe is it more production related from your side? Curious to have your view on that.

Sure. So yes, you're absolutely right. It does imply a bit of a decrease compared to the numbers that we reported in 2025. The drivers are, let's say, threefold. Partially, we do expect a further inventory decrease in -- sort of on our balance sheet, but overall. And so we are being relatively careful assuming the same sales as we assume registrations, right? So that's point one. But that impact is not material because -- it's material, but it's not the biggest one of the 3 that I'll mention because in reality, we have actually quite significantly normalized our inventories already, both on our balance sheet and the balance sheet of our dealers.

The other two are related to the model year split and then the product mix. As you will have seen, we have strengthened in the caravaning segment, but obviously, the value of those vehicles is smaller. And at the same time, we have a very good visibility on at the very least our current order book. And we are also introducing new products in the first and second half of the year, where we're also making certain assumptions on what is going to be the split of motorhomes and van conversions and caravans. So that is more the driver. We are also of the opinion as you are that the market will remain or should remain healthy or, certainly, that's the indication that we have right now, subject to nothing wrong happening in the prior topic. But it's mostly a product mix topic and a little bit still a certain level of inventory normalization.

Okay. That's helpful. And the second question, can you give us the volumes of MORELO? Because you give the motorhomes volumes, but we don't have the split. Just to understand the negative price effect you had this year on MORELO.

I think that should be included in the annual report when it comes to the number of vehicles that MORELO sold. Is that the question you're asking, the number of vehicles that MORELO sold? Let us look it up, and then I'll come back to your question once we've looked it up, and I'll give you the answer to that.

Okay. Okay. But the pricing effect, you have a range of what the negative pricing was for MORELO? Because you said it was more competitive, you had to reduce prices.

I'd be relatively hesitant to be providing these numbers. But let's just say that the impact that we've had was almost as significant as the whole chassis situation in the Premium segment. And then there is the -- yes, we have the [indiscernible]. Okay. We'll look further and we'll let you know.

And next line is Johan van den Hooven.

A few questions from me, Johan from Value8. Shall I do them one by one? It's easier to think. If you look at the forecast for 2026, you expect somewhat lower revenues to EUR 950 million. If we're looking further in the future, can we take that as a sort of bottom level going forward?

Johan, so we don't provide the guidance to the future. At the same time, I can probably say that as we assume the market to remain stable when it comes to the demand in the midterm as well and as we are introducing new products into the market, which should increase our level of competitiveness in the market as well, we -- that would probably be a relatively reasonable assumption to make, yes.

Okay. Other question about net debt level. Net debt was a bit lower than in 2024. Can you give us an indication or your sort of budget for 2026 because net debt is lower, but still a bit high, as you all know.

Yes. The -- we obviously have the planning and what we're targeting, but we're not providing that guidance, and we're being relatively careful with that. But ultimately, it's -- and this would sound trivial, but if we take the EBITDA, you can assume that our interest expenses are probably not going to differ materially. Certainly, I would not expect them to be much lower, let me put it this way. And our working capital situation, we've done what we -- a lot of the measures that we could have. There is still quite a bit of space in the payables, but that's subject to the credit insurers extending their lines. So yes, ultimately, the leverage situation needs to be addressed via profitability.

Yes. Clear. Other question about the dealers. You've seen a high level of insolvency, especially in the end of 2025. How is the current situation and also the sort of financing position of the dealers into 2026?

Understood. The situation is currently much better than it was a year ago. The big insolvencies that have happened have gone through, and we had to assume a lot of those vehicles and remarket them. We still have a, I would call it, handful of individual dealers that we are carefully monitoring. We are making sure that our exposure to those dealers is minimized, be it via using consignation vehicles or, in general, keeping the stock of vehicles extremely low towards those dealers and making sure that we support them in other ways just to make sure that they can fix their situation. So there is still a handful of those, but our exposure is much smaller and the big impact has happened earlier last year.

Now that -- the overall situation of the dealers is obviously not easy. They have gone through a couple of years of very healthy profits and then a couple of years of very difficult losses. Some of them have not used the profits to build a buffer and due to the losses are now in difficult situations in discussions with their banks. But we do see and monitor the situation very carefully. It is limited to a handful of dealers at this point, and we're decreasing our exposure to them. So by and large, we don't expect the film to rerun in '26 that we had in '25.

Okay. That's good to hear. Last question from now. Last week, I looked at the results of Trigano and they sound a bit more positive than you or -- well, at least expecting higher revenues and you are expecting lower revenues? Or is that comparison too simple?

I think that comparison is a little bit too simple, but it's fair. I understand the comparison. The -- I wouldn't want to comment on competitors, to be very clear. They run their own business. They have their own markets. They also have other segments. Trigano is not only present in leisure vehicles, they also have other segments which generate different margins. By and large, we're focusing on our business. The only thing we can really influence is what we do here and how we work with our markets and our dealers, and that's what we see. We're careful when it comes to our planning to make sure that we can deliver it. And that's probably as much as I can say to the overall situation in the market.

Maybe just to come back to -- very briefly to the question Alessandro asked on the MORELO volumes. So I don't think we're actually publishing that number. But I can mention that the number of vehicles that MORELO has sold last year is very close to the number that they sold in 2024. So very minimal difference in amount of vehicles.

Thank you very much for getting back to this. And we are moving on to the questions of Rizk Maidi.

Just a follow-up on the previous question. Perhaps how much of your 2026 forecast in terms of top line and bottom line is based on dealers rebuilding that buffer in '26?

And secondly, how do you assess the overall inventory levels in the market? And what gives you confidence in price stabilization in '26?

Thanks. So when it comes to dealer buffer, we don't actually expect any buffer to be rebuilt. So I don't know if you meant buffer when it comes to dealer stocks or buffer in terms of their capital strength. But let's just say, we believe that when it comes to the stock of our vehicles, bar certain smaller segments where slight adjustments still need to be made and they will be made in the first half of the year on the back of what we expect to be strong end customer demand, we have reached a level that is quite normal for the market, maybe potentially even more prudent than normal, which is down to the careful ordering behavior of the dealers. And we do not expect a material change there, meaning we do expect the dealers to continue to be careful, we do expect them to hold relatively lower levels of inventories, and that is what we have built into our planning. So that's when it comes to the dealers' buffers. We're not assuming that suddenly we'll be able to push more products on to our dealers and hence, generate revenue. That's not the assumption that we have underpinning our planning.

When it comes to the inventory level in the market, that is difficult for us to assess because we do not have the detailed numbers of our competitors, clearly. What we, however, do have is feedback from our dealers, which -- some of which are multi-brand dealers. We have discussions with the dealer financing banks, which finance all dealers, including dealers of our competitors. And in general, we obviously have a relatively good feel for the market. So overall, the feedback we're getting is that Knaus Tabbert has probably taken the most decisive steps towards normalizing the situation. Many of our competitors have as well. Some have done less so. The feedback we're getting is that many are making the assumption that the situation should then normalize via the, as I said, relatively strong end customer market in the coming months. And that is also what we assume should happen in the market.

Now when it comes to how do we then retain pricing in such a market, ultimately, we are assuming such volumes to be placed into the market, which would correspond to a reasonable market share that we would keep in that particular market. We don't have extensive inventories that we would need to place of old model years that would need to go with large discounts. And as such, and also on the back of my prior answer, i.e., the delivery of the margin on the products that we produced during 2025, we are relatively confident that the margin that we have included in our budget is achievable. But obviously, there is an element of elasticity of demand. And if some of the geopolitical or some of the competitive pressures should materialize more than we expect, then a certain level of reaction capability would need to be built in.

And we move on to our two hands up. The first one is a follow-up by Alessandro.

Yes, a follow-up question, maybe a bit more broad question. Coming back to what you said about the expectation for the market to remain stable for the midterm. I'm just wondering if you're talking about the German market. And if -- is that because you think the market maybe has matured now? Because we -- that was a growing market over the past 10, 15, 20 years. Do you think we've reached a maturity level? Or is it more because of digesting what happened over the past years, macro related, that you're cautious, specifically for the motorhomes market? That's the first question. I'll ask the others after.

See, I wouldn't want to be interpreted as saying that, that market is mature or it has reached a certain level of stability. That is not what I believe or what I think is the expression of how we see the market. The market keeps on being supported by strong tailwinds when it comes to demographics. I think the situation overall globally is probably additionally being supportive of the market, et cetera, et cetera. So there are good reasons to believe that, that market has more potential. At the same time, why I was mentioning the midterm stability is that is what we're working with internally because we do not want to be adjusting our cost structure. Ultimately, many of the cost structure initiatives that we are implementing have relatively long-term effects and are relatively costly as well.

So if we do these adjustments, we need to have a relatively high level of conviction that we would not need to do this again and again and again. And so the stability that I was referring to, I think that was in relation to whether the EUR 950 million that we're guiding towards is the bottom. I think it's more to say our planning is working with stability. And -- but we do believe that there are factors that could drive the market higher, but I'm more focused on making sure that my cost structure respects that stability because I can always increase then my capacity. That's a relatively simple thing to do.

Okay. That's very sensible. The following question is on the caravan market. What's your view on the caravan market? Because we -- for -- to quote Trigano, they say it's maybe a stable market, maybe slightly declining. Do you also view that market as maybe more mature, less dynamic? And are you already -- I know you already plan to increase motorized production capacity instead of caravans, but curious to have your view as well on that.

So maybe just to correct you a little bit, we're not planning to increase capacity of anything at this point. We have plenty of capacity. The caravaning market has been shrinking gradually over time, as we've shown on one of the prior slides, we can probably look at it quickly. The caravaning market has been decreasing. But we do feel that there are certain segments which remain quite strong, where we are well represented and those are not moving. And, also, let's say, the demographic that the caravaning market addresses seems to now be gradually stabilizing.

So we don't expect the market to disappear. We simply are reacting to the market being on a bit of a decreased trajectory. But at the same time, the level of competition in that market is also decreasing, which is allowing us to keep a very healthy level of sales into that market. And that's what we're working with when it comes to projecting our future revenues from that market.

Okay. And the last question is on working capital for full year 2026. How do you expect that to develop? Are you expecting further decline in your inventory levels? Should we expect a decrease in the working capital?

The short answer would be no. We're expecting stability. We have relatively limited space to improve our inventories. We have relatively limited space to improve our receivables. And we have quite a bit of space in our payables, but that is down to us having the availability or higher availability because we do have some availability, but higher availability from credit lines from our credit insurers, and that is not what we're assuming to happen in the planning period 2026.

And with an eye on the time, I will unmute now [ Edwin de Jong ], the last questions for today.

Can you hear me?

Yes, we can hear you.

So the previous question from Alessandro answered my biggest question, to be honest, on working capital. But I have one left maybe, and that's more a general one on Q4 -- Q1. So we're now at the end of Q1 already. Can you maybe elaborate a little bit on the developments that you've seen in the past quarter?

You're putting me on the spot on something I should not answer, but thanks. Right now, let's just say we do not have any reason at this point to be changing our view on the year. The numbers are developing as we -- certainly, the first 2 months because I don't have March, but the first 2 months have developed, and we certainly have explanations for all of the developments there. And none of the results that we're looking at would give us doubts about the guidance that we've provided to the market.

And with that, we come to the end of today's earnings call. Thank you for your interest in Knaus Tabbert AG. A big thank you also to CFO, Radim Sevcik, for your presentation and your time. Should you have any further questions, ladies and gentlemen, afterwards, please feel free to contact Investor Relations. I wish you all a successful day around the world and handing over to you, Radim, for some final remarks.

Thank you very much, and thank you for your attention today.

So to summarize, I think we did make clear progress in stabilizing the business and addressing the structural challenges. But admittedly, our performance in '25 was not yet where we wanted to be. We're entering '26 with a much more disciplined operating model, much healthier distribution channel and also a clear view on where we need to improve further. We also remain mindful of the uncertainties in the market, and we will continue to manage the business with a high degree of caution and flexibility.

Thank you very much for your attention. Thank you for your support, and we will hear ourselves in 6 weeks probably to respond to the last question in more detail.

Good morning, ladies and gentlemen, and a warm welcome to today's earnings call of the Knaus Tabbert AG following the publication of the Q3 financial figures of 2025. We are delighted to welcome the CFO, Kim Sefzik, who will speak in a moment and guide us through the presentation and the results.

We are looking forward to the results. And having said this, Mr. Sefzik, the stage is yours.

Thank you very much. Good morning, everyone, and welcome to our call. Thank you for joining us today to discuss our third quarter results and recent development. Over the past months, we have continued to work through the realignment of Knaus Tabbert, addressing the operational and structural challenges while strengthening our foundations for the next phase. Today, I will start with a brief overview of our progress and the current market environment before we discuss the financial results and outlook.

Let me first give you an update on our strategic realignment and start by recalling where we stood a year ago, which I consider the necessary context to then discuss where we have landed and where we are going. When Willem de Pundert and I stepped into our roles soon to be 12 months ago, the company was in an altogether worrying situation across its business and its balance sheet.

Overdue receivables, part of which we would ultimately never be able to convert into cash. Excess inventories on our balance sheet, but also balance sheets of our dealers, part of which we would ultimately have to take back and remarket carrying some of the related losses. Uncertainty about speed and commercial conditions at which we can place all of the old products across our and the dealers' balance sheets in the then oversaturated market.

The distribution channel under severe strain with dealer insolvencies piling up, driven partially by own business decisions of the respective business owners, but exacerbated by the overproduction of the OEMs, an order intake that showed very modest movement for months with some dealers unable and some unwilling to commit to Knaus Tabbert.

Legal and compliance topics with the police and public prosecutor activity having put a spotlight on us and together with commercial worries, made many external and internal parties uncomfortable overall, resulting in a very heavy load on our organization to convince all stakeholders that we have the situation under control, with internal forensic audits, reviews by external advisers for the benefit of the banks, separate audits by suppliers and ultimately, an audit by KPMG as our auditor.

And last but certainly not least, a bloated cost structure, partially due to managerial excesses, but also scaled to deliver volumes the market was no longer able to absorb. This then framed the situation in which the Knaus Tabbert team was putting together a plan to bring the company into calmer waters. I will now not go through the steps that we took as that has been discussed many times. But let me at least highlight more the approach that we have been taking since.

We have, in the past 12 months taken great care to ensure that our disclosure represents a fair picture of our situation as painful as it sometimes was as we would certainly all be happier if our announcements to the market were predominantly of a positive nature. We endeavored to communicate with the market, but also the press and other stakeholders as openly as we felt we could, which in the context of restructuring of a publicly listed company is a challenge, especially if one is managing this company through a complex and very uncertain environment I described earlier.

And we are gradually ticking off the list of issues that form the original black box of problems that we were carrying with us as outlined earlier. And as we cannot control the economic uncertainty, which is a natural part of any business, we are at least working hard to proactively address topics we have on our radar, while reacting quickly but with consideration to developments that were not.

As we discussed on our last call in early August, the summer marked the point at which we could report tangible progress with the initial cleanup. We highlighted our successes in adjusting the cost base, improving working capital and generating liquidity, moving towards normalized inventory levels, both within Knaus Tabbert and across the dealer network and introducing a restructured product range. But we also acknowledged that not everything was going fully to plan.

The market remains saturated, not only with our own products, but also overall. While we factored this partially into our planning, the full extent of the oversupply was not known and the resulting continued price pressure necessitating sales promotion measures was higher than we forecast.

Cost measures have overperformed in some areas, but underperformed in others. Personnel costs, for instance, remain above plan due also to lower productivity and higher illness rates, which limited our possibility to use short-time work. Dealer prudence is still high. After several turbulent years, many remain cautious. This is not supportive of planning stability of our production. Combined with our commitment not to produce on stock, this has made our supply chain tighter than we would prefer.

Following the Düsseldorf trade fair when orders accelerated, supplier readiness lagged, requiring us to review our production assumptions for Q4 despite a reasonable order book. Our ambition to accelerate production late in Q4 has then hit another roadblock earlier this week when we're informed of more delays, prompting us to take initial steps to replan our production further and correspondingly inform the market.

And last, we also highlighted the impact of operating leverage where even modest revenue deviations like due to the production replanning I referred to above, have an outsized impact on annual profitability due to limited short-term flexibility and the heavy Q4 weighting of our annual earnings.

As expected, the Düsseldorf fair acted as a catalyst for the situation and a test of our assumptions. It confirmed that end customer demand remains strong, validating also our product strategy and pricing repositioning. Our cost-cutting measures in areas like marketing had little, if any, negative impact on sales momentum, which was very positive. While stock levels of our products are approaching normalization, the market still suffers from residual oversupply, leading to continued pricing pressure in both the Premium and the Luxury segments.

Dealers are cautious in forward commitments. They prefer deliveries in Q1 rather than Q4, meaning we had to actively manage order intake to maintain our production run rate through year-end.

As a result of the above-mentioned factors and taking into account the impact of the fluid situation also in our supply chain, we have now once again replanned our production for the remainder of the year and updated and now also further refined our full year guidance.

Operationally, we are working with our dealers to position them well for next season, focusing on both our strong domestic markets as well as supporting our international presence to gradually diversify our revenue base. We're advancing developments for model year '27, which we will launch next summer, the key to our medium-term competitiveness.

We're preparing next year's budget plan, reviewing all assumptions in light of healthy demand, but persistent margin pressure and a strongly competitive environment. And we're driving productivity improvements, which will take several quarters and some a couple of years, require targeted investments but are essential for sustainable efficiency.

And throughout, the backbone of our strategy remains the strength of end customer demand, which provides stability as the broader industry gradually rebalances and as we are running our restructuring efforts. And this backbone is a topic we address on the next slide.

The most important conclusion from this slide is there has really been no fundamental change from our earlier presentations. Let me first explain the slides to you just to orient you around. We are talking about both the European and German registrations. We're using September till August, September 24 to August 25, which is the full model year. And as you can see, when it comes to our motorized units, and that's the dark blue, that market has remained very much stable, both in Europe and in Germany.

When it comes to the caravanning segment, which is the light blue color, that market has shrunk by around 10% and is currently moving towards more stabilization, but still slightly declining. And when it comes to our market shares, these have also not changed significantly since we last presented to you in August, being relatively stable, our market share in motorized vehicles decreasing slightly, while our market share in caravans increasing.

Moving on to the next slide. Just a very brief insight into the Caravanning Salon. I will not go into details here, but it was a show that also from our discussions with our partners and other competitors indicates that it has been positive for the industry overall, not only for Knell Strbertt.

We have been represented with an amended strategy: we cut down our expenses, moved all of our brands into one hall, rationalize our costs, simplified the product offer that we're showing on a limited space. But overall, it has not resulted in any negative impact on our numbers. We achieved more than 10% higher end customer sales at the show, and our dealers have been very satisfied with the way the show has run also with follow-on business that followed the show.

On the next slide, we then dive directly into the financial results for the first 9 months of 2025. First, let me speak about the order book, which has climbed to EUR 476 million, which is still not high, but it is up from EUR 294 million that you will have seen at the end of the second quarter, and it does provide a certain level of stability for our production, obviously, subject to our supply chain being able to keep up with us, which, as you will have seen yesterday, has been difficult.

When it comes to revenues, the first 9 months of the year allowed us to bring in EUR 762 million. And with that, we generated an adjusted EBITDA of EUR 19.8 million, resulting in an adjusted EBITDA margin of 2.6%. Our free cash flow in the first 9 months of the year has amounted to EUR 60 million.

When we look at the segment split, the revenue in the Premium segment reached EUR 637.3 million, which is down almost 20% of 2024. But again, we probably don't have to walk through the specifics of the prior year and gave us an EBITDA of EUR 11.3 million. The Luxury segment revenue amounted to EUR 124 million, down -- sorry, up 11%. But the profitability, and I hinted at that earlier in my presentation, has been impacted by a very strong competitive environment and reached EUR 5.4 million in the first 9 months of the year.

Moving on to the balance sheet indicators. Let me start with net working capital, where you do see a further improvement. That comes from a slight improvement in our inventories a relatively strong improvement in our trade receivables and a stable situation in our trade payables. But overall, the effects of Q3 have clearly been less material than what you will have seen in Q2, which is also driven by the specifics of that period and also the seasonality of the end customer market.

Looking at net debt, that has increased to the level of EUR 289.7 million. And just to proactively address what could be seen as a discrepancy between an improvement in working capital and the increase in net debt, let me just address the Q3 in a way for you to understand that Q3 is also a time where we do settle our tax liabilities. We also settle our dealer bonuses. And we also -- there are also certain liabilities that we've accumulated towards our employees, not the least for holidays, which are also settled and that has an impact on the cash situation of the company outside of its regular operations.

And now moving on to the last slide, our outlook for 2025, where on the basis of the decision that was taken yesterday to replan our production, we have informed the market that we expect to achieve around EUR 1 billion in revenue, and that number is not -- has not changed and an adjusted EBITDA margin at the bottom of the range that we've indicated in our release in September of 3.2% to 4.2%.

With that, I would conclude the presentation, and I would like to open up to questions.

We will go on to Elis Al.

Radim, two from my side to start off with. You hinted a little bit about the profitability of MORELO. It would be great if maybe you could elaborate a little bit more about what's going on there. Obviously, the trend in profitability this year has not been great. So just some more insight of that. How is your capacity utilization there going? Just give us a more clear picture of what's going on with that particular segment.

And then just a bit of a curiosity about the ad hoc release last night. I mean you guys are still within your previously communicated guidance. I'm just wondering what the urgency was to get the news out last night. Just pointing out that ad hoc of late have been coupled with a bit of an anxiety from the investor side. So just curious about the transparency on that, if there's anything else in there that we should be worried about? And I'll leave it there for now.

Thank you very much. Let me maybe start with the second question, and that's the ad hoc. You're right, we are within our guidance range. But under disclosure rules, we also must release price-sensitive information as soon as it arises. And the reality is we did have an ad hoc committee yesterday, also with support of external counsel, and we received a very strong advice that it is in the interest of the -- or within the market disclosure rules and the interest of the market for us to release the information immediately. The ad hoc as such has to be issued right away, and it doesn't matter whether the results then follow shortly thereafter or not.

The decision about the replanning was driven by the information that we've received, and we're literally talking hours. So 24 hours prior, we received the information, we confirm the information. We tried to work with that information. We then built several cases of what we can do with that information. And ultimately, yesterday afternoon, we took a decision to replan the production. It's still a developing situation. But at the same time, I think we're relatively comfortable now with the decision that we've taken. And the moment that, that decision was taken, we called the committee and we're strongly advised and also ourselves within the overall ambition to be open with the investor community, we simply decided to release the information immediately. That's on the ad hoc.

When it comes to MORELO, I have to be relatively careful there because ultimately, it's a small market. There are only a few players. So whatever comments I make, I'm implicitly making comments also about our direct competitors, which I would like to avoid. So let me just speak mostly about MORELO as such. MORELO is actually performing relatively well. The products are very well accepted. They are working to make sure that they hold their market share, which, as you know, is relatively high in that particular segment.

And I would say the capacity utilization has been adjusted already earlier this year. And so right now, we're simply waiting or that's the view of the market that we have right now that we need to wait for the market to digest the overall volumes of inventories in the market, most of which are not ours. To then be able to generate the margins that we would expect of MORELO. So as such, I'm a little bit less worried about MORELO per se. I would rather say we simply need to be patient with the market to then ultimately be able to bring MORELO back to the levels of profitability that you would expect and we would expect. So I hope that addresses your 2 questions, but happy to take follow-ups.

If -- so the profitability, I mean, the sales have been good, but the profitability, is that because of lower capacity utilization? Can you be a bit more specific on why that's just declined so much? Is it discounting?

Yes, no, no, it's a combination of factors. Let's say, pricing pressure is one of them, definitely. The cost structure partially as well, but that is not unlike the situation that we have where certain suppliers have been difficult for MORELO, and that has caused some of the unfinished goods to go up and then you need to work on those products afterwards to finish them, which creates inefficiencies in production and higher costs. But I think these will probably be the 2 main effects that have led to this profitability in the Luxury segment.

And with this, we will move on to Alessandro Cuglietta.

Radim, can you hear me?

Yes. I can hear you.

Okay. Great. Could you just come back on the production delays? I mean the supply chain issues you're seeing, can you be more specific on that? I think you already mentioned that earlier, but what's happening exactly in the supply chain?

Understood. I will do. So the situation actually spreads across a couple more suppliers. It's not one single supplier. But the decisive element for us has been one chassis supplier. I don't want to speculate on the situation with that particular supplier. But my understanding overall is such that the -- many of our suppliers have downsized their capacities and have not been willing or in the short run, not able to then ramp them up again to a gradually normalizing market.

So when after the Düsseldorf fair show, not only Knaus Tabbert as per our information, and again, this is indirect information that we're receiving, but also other of our competitors have gone back to a higher level of ordering of chassis for a more normalized production level. Certain suppliers, and again, this is not limited only to chassis suppliers, but also a couple of others, have had difficulties ramping up their production, which has been limited alongside the whole industry in the first part of the year.

And that has led to a certain bottleneck, which we would hope could normalize relatively quickly, but it has certainly had an impact on our planning for Q4, which is immediately after the Düsseldorf show, where we expect it to be able to really produce at speed. And instead, we have to be a bit more prudent with our production, and that was effectively the result.

Okay. So it's more short-term bottlenecks instead of more pronounced issue. I mean you're expecting this to resolve quite fast?

I mean we are expecting it to resolve quite fast. That is true. At the same time, in our risk management, we still have increased the level of that risk from very unlikely to unlikely. So we still consider it unlikely that this will be something that will be with us for a long time. But in itself, we -- let's say, we were surprised by the magnitude of the impact we're seeing right now. So we want to be relatively careful assuming that this will normalize immediately, and we will not see any more impacts in the coming quarters. But right now, we don't find them as likely.

Peter, you should be able to speak now.

Can you hear me?

Yes, we can hear you now.

On the Q3 figures, on the 1 to 10 scale, how disappointed are you in the Q3 figures? And you can use for me the same scale for how much impact this Q3 and your press release of yesterday has on 2026. So you're talking about 2025, but how much impact does it have on 2026?

Understood. I'm trying to stay away from qualitative assessments on a live recorded line. But frankly speaking, no, I don't think Q3 was a success, to be clear. It's -- we would have hoped for more. Some of it was driven by outside factors, but some of it is something that is down to the performance of our business. And so I would certainly not be considering myself happy with the Q3 results. Maybe let me put it this way. I don't want to assign a number to it, but I think you understand the direction of my answer.

When it comes to 2026, we're currently in the process of budgeting, so I will stay away from judgments on 2026. But it -- and we tried to also express it in the message that we sent out to the market yesterday that also in the context of what we see in the market and also Q3 numbers, et cetera, et cetera, we are going forward with reassessing the situation we see in the market and making sure that we also take appropriate measures to adapt the organization and our strategy to the market that we see coming to us next year.

Does that answer your question, Peter? Your microphone is still on.

Okay. Well, the question is to look through 2025 is a restructuring year. So there -- and has some exceptional elements in it. But 2026 should be, well, the first normal year after what happened Q4 '24. So do you -- are you saying that the environment is more challenging and that it's going to take more to get to a good normal year that you have to take extra restructuring measures?

What I'm saying is the market is more challenging than we foresaw in December 2024. So in December 2024, the expectation was a certain normalization across the industry, not only within our balance sheet and the balance sheet of our dealers to take place in the first half of the year and then a certain level of normal production, normal profitability starting after the summer. That was also the basis of our planning and hence, also the guidance towards the market back early 2025.

You can see in our numbers that -- and it's with regret that I have to say that, that we have not achieved the initially indicated guidance for 2025. And that has certain objective reasons, many of which are related to the overall pressure that there is in the market coming from, let's say, the competitive situation, but also the still lingering overdue or oversupply that there is in the market.

And as a result, we are now considering what we can expect from 2026. But I think it would be it would be reasonable to expect that we do not believe it will be fair towards our investors and in general, stakeholders and that concerns also our employees and everybody else. If we were simply sitting here and saying, well, that was our plan. Let's just wait until that plan comes true even if it takes longer, right? I mean we need to steer the company. We're responsible for the company. And that also means that if we believe that further adjustments are required, then we will simply need to deploy them as soon as possible or whenever that becomes practicable. And that's exactly what we're going through right now in the budgeting process.

Does that answer your questions, Peter? Or do you have more?

It did. It's -- in general, I understand that it's not extremely specific. I read in the report that there's an increased risk of not meeting the criteria of the banks and then especially in terms of profitability. And then further in the report, it says that there's no expectation of the banks terminating their loans. What's the situation there?

So when it comes to the covenants as of Q3, we are in compliance with all of our covenants. But you're right, we highlighted in our Risk section that there are risks associated with the profitability outlook, which I guess is relatively clear also from the announcement we made to the market. And at this point, we are in a constructive dialogue with our banks. And when it comes to the likelihood or not likelihood, I wouldn't want to comment in detail about the context of these discussions with the banks. But certainly, the current indications that we have make us consider that the, let's call them, adverse risks to the stability of our capital structure is unlikely.

Okay. So you're within the covenants in Q3.

And we will move on once again to Ellis Acklin.

Okay. Right. So just 2 quick follow-ups. I want to make sure I fully understand your comments about the beginning of next year and the comments also in the ad hoc last night about potential production suspensions or postponements. Are you talking about certain vehicles here? Is it something that might be on the same magnitude of the stoppage we saw at the beginning of this year? And I appreciate that's just a precautionary statement at this moment, but I'm just trying to understand the magnitude of that.

And then also just to be clear, you talked about the uptick in the order book, which is great to see. Was any of that particular to trace to production planning adjustments? Or is that just a positive sales development for you guys? So I think that will be it for me today.

Sure. Thanks for the questions. When it comes to the order book, no, it's a sales effort. So I think you're probably referring to the order book being effectively a result of the orders that we have minus what we've produced, right? And there's -- I wouldn't think that there's any -- certainly no artificial effect from us, let's say, working on the side of the production in order to impact the order book, no. I mean it is a result of a healthy sales effort, which brings us the orders. We would certainly to be sitting here comfortably, I would have a preference to have the order book even stronger. But at the same time, we are -- I think we're moving ahead in a reasonable way.

When it comes to the magnitude of the impact on -- of the production stops or movements or reallocations that we've indicated, no, the magnitude of this should not be to the level of what you've seen in the winter last year. In reality, what -- I think from your perspective as an analyst or from an investor perspective, on the back of that decision, we have indicated to the market where -- or refined where we believe we should end with our profitability for the year. And this particular reallocation of production is also supportive of a more reasonable ramp-up of production in 2026.

So it gives you effectively both sides of the equation. It gives you our current best estimates of our profitability landing until the end of the year. And at the same time, this particular reallocation is actually positive or should be positive for 2026. compared to what it would have been had we not taken this step. And so -- but no, the magnitude, just to address the most boring part of your question, the magnitude would not be the same as the stoppage of production that we had last year between mid-November and effectively the end of January.

And we move on to Mr. [ Omiz Yuk. ]

Just a question about the guidance for 2025. I'm curious what you mean with around what -- around EUR 1 billion. What is sort of the definition of around? Is it plus/minus 1%, plus/minus 5%? And then in combination, if there are some stops or delays in production, then I was surprised that you stick to your revenue guidance, but lower your EBITDA guidance. And if you look at the, let's say, take the bottom of 3.2%, that means EUR 32 million, EUR 12 million in Q4 after a loss in Q3. What are the -- what's happening in Q4 that you have a much better result than in Q3?

When it comes to the EUR 1 billion, I think I would not dive into legal analysis of what one means in a guidance. Certainly, the advice that we've been getting is that there is a certain bandwidth around that number that you can be comfortable with. At the beginning of the year, we were very comfortable with that number, and we felt like there is some space for us to go when it comes to lower revenue than we necessarily planned for to still be within that guidance. And despite the changes that you've seen right now, we still feel very comfortable with that number.

What I think is where -- I guess your question also comes from is the much, much heavier impact on our profitability. But that's related to the fact that, as I mentioned earlier, when we were planning our budget, our year or our full year profitability was very much back ended towards the normalized production and also normalized profitability September until December. That also indicates to you that the heaviest part of that healthy production and profitability period actually lies in Q4 with Q3 having been less than stellar, let me put it very mildly. Q4 still needs to deliver on what we were planning.

Now that planning has now been adjusted due to the reallocation of production. But despite that, we -- our planning currently indicates that we should be able to reach the levels that you've mentioned. So I do understand your question. Again, please rest assured when it comes to that EUR 1 billion, we have -- I think we're relatively comfortable there. Also, if you look at our revenues for the first 9 months of the year, we are -- we've achieved the EUR 762 million.

So in a relatively strong production quarter because, let's not forget, Q3 is also 4 weeks of closed production. So a relatively strong quarter Q4, reaching EUR 1 billion or even less than 1/4 of the overall year expectation should be achievable. But when it comes to the profitability, you're right, we require October, November and with the replanning only part of December to deliver the numbers that we expect.

And we will move on to our last hand up for now, George Farmiloe, you should be able to speak now.

George from Jefferies. Can you hear me?

Yes, George.

Just one quick question on the ad hoc yesterday. I think it says there was a delay by one supplier. Am I right in thinking you just said earlier that it's a sort of a wider issue on your supplier base? And are you able to elaborate on particularly which suppliers it is? And if it could be an issue just for your industry or if you think it's sort of a wider auto theme?

Sure. So I did mention it's more suppliers, but in that -- what I meant by that is, in general, there have been several suppliers that have had issues with the ramp-up. And that has resulted partially also, for example, our Q3 numbers have been impacted by relatively higher unfinished goods, some of which were down to certain suppliers outside of the chassis not being able to provide us with parts, but those parts have, in the meantime, been provided.

So overall, our supply chain is catching up with, let's say, the normalization in our industry, and that can result in certain volatility. This particular impact is driven truly only by one supplier because I mean no other ones would probably have the magnitude that would force us to replan our whole production. I would prefer to refrain from naming that supplier, but there are only -- there are extremely few that could have such an impact on us.

I don't want to speculate on whether that's a general issue, I don't know. But it has been -- obviously, we're speaking to that supplier very, very regularly and with a lot of intensity at this point. And the representations that we're getting is that it's simply a bottleneck in terms of digesting the volumes of orders that have suddenly come from our industry in their production facilities, which have been slightly driven down in terms of their capacity over the past quarters to match the lower demand from our industry. But obviously, when we ramp it up, they also need to ramp up and it may take a little bit of time. That is the explanation we're getting right now.

Thank you for your questions, George. And with this and no further questions, we come to the end of today's earnings call.

Thank you, everyone, for joining and your interest in Knaus Tabbert AG. Should further questions arise at a later time, please feel free to contact Investor Relations. Afterwards, you will find the recording of this call on the Airtime platform. A big thank you also to you, Mr. Sevcik, for your transparency. I wish you all a successful business, a healthy autumn time.

And with this, I hand over again to Mr. Sevcik for some final remarks.

Thank you. I'd like to thank the entire Knaus Tabbert team for their continued hard work during what remains a demanding phase of our realignment. It is this commitment that has been essential in keeping this business moving forward. I'd like to thank all of you as well for your time, your questions and continued interest in Knaus Tabbert, and we look forward to updating you again with our next results. Thank you.