Norbit Stock

Good morning, and welcome to NORBIT's Q2 and H1 2026 presentation. Today, we have the pleasure of presenting another record quarter for NORBIT. This is rewarding, and we're grateful for the continued trust placed in us by professional customers around the globe. What makes today an even better day at work is that we also have the opportunity to present our ambitions towards 2030. It's really a privilege to be part of a team with a development-oriented mindset. It's people who are eager to aim higher, continuously improve and contribute where it matters. So after we walked you through both the Q2 and H1 presentation as well as the ambitions towards 2030, we will open the floor for questions.

As said, Q2 came in as a new record quarter for NORBIT. We have 22% growth towards Q2 '25. EBIT in the quarter ended at NOK 205 million, representing 25% EBIT margin. In the quarter, it's been paid out also the dividend decided upon by the Annual Shareholders' Meeting with NOK 5 per share was paid out in May. For the first half year, which also is a record, we have NOK 1.5 billion in revenues, which is a 30% growth from first half 2025. With an EBIT margin of 23%, this gives us an EBIT of NOK 361 million.

In addition, during the quarter, we've been awarded several good contracts that we will also comment on later in the presentation. So give you a brief update from the different segments. So in the Oceans segment, we've recorded revenues of NOK 236 million. That's very much at par with last year Q1. And EBIT margin is on 33% in the quarter. For the first half, it's a decrease of 7% for this segment, and on the revenues for NOK 440 million with an EBIT margin of 30%, gives quite flat comparison to the year before. So we've included also in this presentation, as in previous presentations, a split on revenues down on the different products. Since we have quite extensive presentation today also with the ambitions, I'm not making lots of comments on this.

In the -- so post closing of the quarter, we've also completed the acquisition of Water Linked. This is a strong strategic fit for us. It's a tailored technology in a very carefully selected application. I think the strength we've seen in this is to be able to broaden our product offering, also entering into DVL business as a Doppler Velocity Logging, which is an extension of the product business for NORBIT. We see this both as an extension on the product portfolio, but also on our ability to fuel even more based on organic investments in R&D. It's a good team on board also in this company.

Connectivity in the second quarter, it was NOK 250 million in revenues, very much driven by increase on the deliveries of our newest product in the segment, the GNSS On-Board Units. It's an EBIT margin on 27%, giving NOK 66 million in EBIT. For the first half, we recorded NOK 461 million in revenues, which is an increase of 46% compared to the year before. The EBIT margin is declined in the quarter from the year before when it was 31%. It's now recorded 27%. And as commented on, the growth is very much driven, as you see here in the product vertical satellite-based tolling, that's where you have the GNSS On-Board Unit.

The mentioned product we've, in the quarter, we was awarded a contract for NOK 155 million for delivery second half this year. And in July, so after closing of the quarter, we announced another contract on NOK 325 million, scheduled for deliveries to start end of the fourth quarter this year and the majority to take place during 2027.

Final segment, Product Innovation & Realization. It's been very satisfying growth in this segment during the last period. So it's up 25% compared to Q2 '25 with NOK 367 million recorded in revenues. And the EBIT margin has improved further from 20% up to 20% -- 22%. For the first half, we've delivered north of NOK 700 million in revenues. That's an increase from NOK 454 million. And the EBIT margin is for the first half, 21% compared to the 18% we had the same period last year.

And as you will see here, a lot of the growth is driven by increased demand and supply towards clients in the defense and security sector. That mentioned, we've in the quarter announced that we've been awarded a contract of NOK 225 million for contract manufacturing and most of that to be delivered second half this year.

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

Thank you, Per Jorgen. I will spend some minutes walking you through the financial highlights of the quarter. The second quarter showed solid activity across our segments, resulting in record results delivered. In short, revenues were up 22% from the corresponding period of 2025 despite continued foreign exchange headwinds. The EBIT margin came in at 25%. We continued to increase our working capital efficiency, where cash flow conversion was 108% in the quarter, leading us to reporting a 48% pretax return on capital employed for the quarter.

Revenues came in at NOK 831.6 million in the quarter, an increase of 26% from the corresponding quarter of 2025 in constant currency. Gross margin was 52%, down from 55%, primarily driven by lower realized margins in Connectivity, as I will elaborate more on in a minute.

Operating profit was NOK 205.2 million, translating into a margin of 25%. This compares to NOK 174.2 million and a margin of 25% reported in the second quarter of 2025. Net income from the period was NOK 157.1 million, translating into an earnings per share of NOK 2.45 compared to NOK 2.06 in the second quarter of 2025. In the second quarter, Oceans delivered revenues in line with the level reported in the second quarter of '25. Oceans' revenues are predominantly dollar and euro-based and revenue growth in constant currency was 5%.

Looking at the first half of 2026, Ocean's revenues were down 7% compared to first half of '25, while in constant currency, revenues were in line with the corresponding period of last year. The currency-adjusted revenue development must be seen in light of a strong first half of 2025 and a slow rental market so far in 2026. In the first 6 months of 2025, Oceans recognized approximately NOK 60 million in sonar sales towards rental companies. This compares to less than NOK 5 million this year. The soft rental market was compensated by solid demand for sonars across the broader market. Profitability-wise, the gross margin remained on par with that of the second quarter of '25, while operating costs were a tad higher in this year's second quarter, leading to an EBIT margin of 33% and a nominal EBIT of NOK 79 million.

Connectivity reported an increase in revenues of 47% year-over-year and 54% in constant currency. The increase was explained by additional deliveries of the GNSS On-Board Units to Toll4Europe. Gross margin fell 9 percentage points. The development was primarily attributed to a substantial increase in memory chip prices, components that are used in the development of the GNSS On-Board Units. A depreciation of the euro against the Norwegian kroner also had a negative weight on margins. Coupled with higher operating costs, this led to an EBIT margin declining to 27% compared to 32% in the same quarter of '25. The EBIT result was NOK 66.3 million.

PIR posted 25% revenue growth driven by the defense and security sector, while the gross margin was largely on par with that of the same quarter of '25. Payroll expenses increased on additional hires to support the higher activity level. Other operating expenses rose on higher electricity costs, service maintenance as well as additional allocated costs. The EBIT result was NOK 81.7 million and the margin was 22%, up from 20% in the second quarter of 2025.

Next, balance sheet and financial position. Property, plant and equipment, including right-of-use assets increased NOK 30.3 million in the quarter, driven by the expansion of our SMT lines.

Intangible assets rose NOK 13.5 million, explained by R&D investments, partly offset by amortization. Trade receivables increased NOK 135.5 million in the quarter, primarily explained by sequential revenue growth and intra-quarter effects with significant sales in June. Inventories and trade payables were broadly in line with the level reported in the same -- at the end of March, while other current liabilities rose NOK 153.2 million, primarily explained by prepayments from customers. Net interest-bearing debt, excluding lease liabilities, stood at NOK 340 million at the end of June, an increase from NOK 204.2 million at the end of March following a NOK 319.5 million dividend payment, partly offset by strong cash flow generation in the quarter.

Our equity ratio was 43% at quarter end, down from 50% end of first quarter on the mentioned dividend paid. On 1st of July, we completed the acquisition of Water Linked. As part of the acquisition, we entered into a new NOK 350 million term loan to finance that acquisition. At the end of the quarter, our net interest-bearing debt-to-EBITDA ratio stood at 0.7x, up from 0.5x at the end of March. Including the Water Linked transaction, the pro forma ratio would be 1.1x at the end of June. Our available liquidity measured in cash and undrawn committed credit facilities stood at NOK 789 million per end of June. And our financial position creates a strong platform to deliver on our capital allocation framework, including distributing a dividend to our shareholders in May as proposed by the Board of Directors as well as accelerating growth through acquisitions with the use of our balance sheet as evidenced by the Water Linked transaction.

Lastly, cash flow from the quarter. Cash flow from operations was strong at NOK 275.2 million, explained by an EBITDA of NOK 253.7 million, a net decrease of NOK 55.1 million in working capital, partly offset by NOK 33.6 million in taxes paid. We invested NOK 55.8 million in the quarter, mainly explained by NOK 36.1 million in R&D investments and NOK 19.9 million in investments in machinery and equipment. The investment level for the full year is expected to be approximately NOK 120 million for R&D investments and NOK 110 million in fixed assets, both numbers excluding Water Linked. Cash outflow from financing activities was NOK 309 million (sic) [ NOK 300.9 million ] in the quarter, primarily explained by NOK 319.5 million dividend paid.

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

Thank you, Per Kristian. So looking into the outlook, we have a view today that based on the current outlook, we expect a full year revenue in the range of NOK 2.5 billion (sic) [ NOK 2.9 billion ] to NOK 3.1 billion. And then the revenue contribution coming from Water Linked is excluded. So that will be an addition to that.

The EBIT margin, we expect to be in the range between 20% and 23%. For the more short-term outlook as a start before diving into the 2030 ambitions. So going from the short to the much longer. So this Oceans has started out the third quarter strong despite that this quarter normally is slower. So we target revenues in the range of NOK 230 million to NOK 260 million in third quarter. And again, this is excluding Water Linked, which is part of the Oceans segment. So that will be on top of that.

For the third quarter, in Connectivity, we expect to deliver between NOK 150 million and NOK 160 million in revenues. And there is a small in-between orders break of the manufacturing of the GNSS On-Board Unit, which will ramp up again in the fourth quarter. In PIR, we target revenues in the range of NOK 240 million to NOK 260 million in the third quarter. And this is a little bit lower deliveries on the defense and security sectors compared to the previous quarter.

That concludes the Q2 and H1 presentation and moves us towards the part we have more room to affect. H1 and Q2 is history, 2030 is the future. So we'll give first a quick updated introduction to NORBIT and the segments, the ambition plan itself, some market drivers, strategic positions and ambitions. And at the end, we'll walk you through also financial and capital allocation framework.

Since 2010 until today, including the just given outlook, we have an annual CAGR of 30%. And since we became stock listed in 2019, our EBIT margins has improved. Prior to that, we were focusing on EBITDA margins, but learned in the meeting with professional investors that it matters also what you have on the final bottom line. So that's why we changed.

For NORBIT, it's been important to shape and maintain a corporate culture. We strongly believe that a group of people that has some kind of the same way of believing and acting increases your ability to reach your ambitions. Our core ideology remains the same as it's been for many, many years. And characteristics in this, call it, culture or ideology is that we explore more. This has to do with being very much opportunity-driven.

One of the most important things for us in the past as well as going forward is to focus on recruiting and refining top talents. The best people delivers the best results. We're very opportunity-driven and entrepreneurial. And in the company, we work hard to maintain and safeguard the commercial spirit. We're a technology company that do a lot to tailor new technology, prioritizing what to make is done market-driven. We don't want to make some cool tech that's only fun for us being engineers.

We'd like to make something that matters that someone really can use. And in parallel with this, the growth strategy also needs to be tailored not on a group level, not on a segment level, but on each individual product. The numbers we've shown for the first half year also reassures me that being diversified is a smart move. First half, one of our strong pillars, Oceans has been quite flat. Still, we deliver a satisfying growth on the total. And having, call it, uncorrelated business verticals with different drivers is helpful.

So looking on, on these numbers. Some products, some segments has had challenges some years, but then being diversified, you're able to continue to grow. Since 2012 -- 2010, 2012, we've been working with 4-year strategy periods. That works for NORBIT. Having a longer vision, we believe that the sense of urgency will not be there. If you should deliver on an ambition within 4 years, you need to start now. If you have a shorter view, maybe you don't have time to do the proper investments and preparation. So 4-year works for us.

In March 2019, we launched a plan prior to the IPO. And I think we delivered that fairly well. In August 2021, we announced our 2024 plan. We were able to deliver on that 1 year early. Current plan prior to this is a 2027 plan. We're now in 2026, and we see we're reaching our 2027 targets 1 year earlier. That's why we're now presenting our 2030. Yes.

So ambition is a growth from -- so looking from 2025, NOK 2.5 billion going to 2030, deliver NOK 6 billion. That's an annual revenue CAGR of 19%. And this ambition is built based on plans broken down or built up in each of the existing segments. And we have an ambition when it comes to EBIT margin to be in the range of 20% to 25%. We'll give you some more flavor to what's underneath. This is, as the previous plans, organic revenue ambitions. Any inorganic is an add-on to our ambition. We will continue to work to find good targets for inorganic growth to accelerate the growth further.

Looking into some drivers, starting with -- starting a little bit with -- in the Oceans domain. This is Oceans at a brief. Oceans is the, by far, most global part of our business. I think last year, we delivered sonars and other sensors to around 70 different countries around the globe. You see we have included a geography split. Oceans is very much specialized in advanced acoustics technology, underwater acoustics.

And we have a wide range of applications. And as you could see, we have multibeam sonars, it's sonars for surveillance, it's so-called side-scan sonars. Now after the acquisition of Water Linked, we have also Doppler Velocity Loggers, some sub-bottom profilers after the acquisition of Innomar and also this 3D sonars is added into our portfolio as part of the Water Linked acquisition.

It's a very diversified client base. As I said, it's geographically very spread. It's across many different industries, dredging, construction, research, scientific, offshore energy, defense, governmental survey companies. We've included a grouping of revenues. As you see, we've been challenged, what's your defense share? When we report, we have the security sector, which is more narrow. We have then added now what is defense. So this is deliveries to any defense-related player, even if it's a civil application it's used for or if it's a military application. So that's a new split.

We see strong and increasing demand for Oceans mapping and insight. I think we've said before that 70% of the globe is covered by water, and it's a single-digit percent that has been explored. Resources in the Oceans is still important. And there is an increased demand for security and defense. And it's also, as we see, expanded offshore infrastructure and operations offshore, which will need sensors for mapping, monitoring and surveillance.

So why should NORBIT and the Oceans part be relevant for these drivers or vice versa? We believe to have very good domain knowledge and an ability to utilize this domain knowledge, we understand the clients so that we can create products that matters. We have a quite broad and established sales and distribution platform. It's very global, as I said, in this segment. And being as vertically integrated as we are, I think our turnaround time to act from opportunity arises until we have been able to design, industrialize and produce is strong.

Strategic priorities within Oceans to reach our 2030 ambition is to continue to strengthen our position as an independent sensor provider. This means that you saw all these products, we will have more of those. And we strongly believe that being an independent technology partner for all those making new kind of underwater and surface sea drones is valued by a lot of clients instead of thinking that we should go upwards in the value chain and start to be one of them. So the 2030 ambition is built on continuing to keep that position and continue to broaden the product offering.

And as we've shown in this segment, we will do selective M&A to expand and also relevant for expansion of market access. So the ambition in Oceans, this is built from different products in different markets with different clients. We've been working a lot involving all the commercial skilled people we have in dialogue also with the R&D capabilities. And we've landed that our ambition is to deliver in the range of NOK 2 billion for Oceans in 2030.

And then I'll go to Connectivity. Connectivity is, as we've said, a player delivering secure wireless communication technology. We've been able to build a strong position as an independent technology supplier to European blue-chip customers. In addition to the different onboard units, satellite-based tolling, tachograph enforcement, these very tolling-related technologies, we also have decades of experience doing other kind of radio frequency and microwave technology-based solutions.

We have naval antenna systems, radar components and air navigation systems and monitors as part of the product portfolio and as part of our technology toolbox. And that as I explained on the Oceans part, the vertically integrated business model is also important for Connectivity, being able to do design for high-volume manufacturing while doing design of the high-volume robotized assembly lines is a strong advantage.

Most of the contracts in this domain, at least the tolling part is very much structured as frame agreements. If you look on the geographical split, this is a European business as of today. And it's -- as you see also a lot, the vast majority is related to tolling. Going forward, we think there is lots of good opportunities to broaden. The market drivers we have identified is this transition towards usage-based mobility models. The GNSS On-Board Unit is an example of that. Pay per driven kilometer and not pay based on -- as we have in the Norwegian AutoPASS system, gantry-based for sections.

We see a strong increased demand for technology made in Europe. And it's an increasing demand for secure and resilient connectivity. That's where we really believe that this radio frequency and microwave experience and skills matters. So the enablers, we have a position as a strong technology partner with this mentioned blue-chip clients. We have very strong customer references, deep competence across different wireless technology domains and the capabilities of doing scalable industrial solutions.

Priorities, how to reach our 2030 ambition. We'll further expand to build on this position as a technology partner for the existing customer base. We'll broaden into selected adjacent Connectivity markets. I used the word in the past to go beyond traffic. And we'll also continue to explore more for M&A that could further fuel this expansion.

Ambition in Oceans is to deliver NOK 1.5 billion in revenues 2030. This represents a 20% CAGR for the period. Final segment, Product Innovation & Realization, also a very European business. We do contract manufacturing, act as an EMS, and we do R&D services, both towards high-demanding clients. We're best at competing when it's not so easy to make what we are challenged to do. We're offering, as I said, R&D services and the full range of what you can expect from an EMS. I think we have some advantages compared to pure EMS given that we're also a technology company with a very broad R&D team that can support.

And I think also for some clients, our customer empathy becomes more relevant given that we are out in some end markets ourselves also with proprietary technology so that we understand their challenges quite well. In this vertical also, in addition to getting economy of scale and getting a benchmark of our own capacities, it also gives us a good diversification, both the segment as such, but also adding the different things into the segment.

A lot of contracts are for this also structured as frame agreements. Going forward, you probably will hear us talk more about NORBIT, your scaling partner when Made in Europe matters. So that's part of the strategy. We have identified as drivers growing defense and security demand all over the globe and especially in Europe and increased demand for Made in Europe and also this digitalization across industries.

We think that the latest period where we've shown our ability to really scale, that's an enabler itself. We see potential clients that are very much in a hurry. They need someone that could support them to scale fast, then these references is an enabler. The R&D and the industrialization capacities and having a Norwegian manufacturing base itself, we identify as an enabler. So how to reach PIR's 2030 ambitions. We continue to be cherry-picking. We have to do targeted client acquisitions.

We'd like to broaden industry focus. We've commented on earlier that during the last period, the customer concentration in this vertical is higher than it was, and we, therefore, also work to broaden the industry focus. And M&A could be relevant also in this vertical. To the numbers, 2030 ambition around NOK 2.5 billion in revenues. That's 18% CAGR.

With that, I'll leave the floor back to Per Kristian to give us some on the financial and capital allocation framework for the 2030 ambitions.

Thank you, Per Jorgen. In the strategy period ahead of us, we have an ambition to deliver 19% revenue CAGR from 2025, an EBIT margin between 20% and 25%, a return on capital employed of more than 30% and maintain a conservative leverage policy in which our net debt-to-EBITDA ratio over the cycle is targeted to 1 to 2.5x.

As for the operating margin ambition, we are making a positive revision in which the previous plan from '24 to '27 included a margin target of around 20%. Today, we are presenting a blended operating margin target for the group of between 20% to 25%. In Oceans and Connectivity, where we base our offering on NORBIT intellectual property, our ambitions reflect what we believe is an acceptable margin for developing advanced high-technology products and solutions.

Over the next years, we have an ambition to deliver an EBIT margin between 25% and 30% in these 2 segments, in line with what's been achieved over the last years. As for segment PIR, our ambition going forward is to deliver a margin between 15% and 20%. This is an adjustment compared to the previous plan as the segment has shown strong cost discipline and better-than-expected operational leverage, also taking into account the major investments we have made in automation in the last 2 years.

Our capital allocation framework has served the company well in recent years, creating significant shareholder value. We remain committed to this framework also in the years to come. As part of the capital allocation framework, we aim to continue to remain a financially robust company, supporting the flexibility needed to grow towards the set ambitions by investing and employing capital in accretive R&D projects and expanding our production capacity.

In order to accelerate growth, we will continue to explore value-accretive acquisitions through our defined criteria. Capital left shall be distributed to shareholders subject to the dividend and the financial policies. Priority #1 is to maintain a solid balance sheet and protect our financial stability and flexibility, making sure that we at all times have a prudent capital structure. With a net debt-to-EBITDA of 1.1x after the Water Linked acquisition and a liquidity buffer of close to NOK 800 million as per the end of the second quarter, our balance sheet is rock-solid, allowing us to invest, pursue strategic acquisitions as well as distribute dividends to our shareholders.

Our financial policy is to maintain net debt-to-EBITDA ratio of between 1 and 2.5x. The interval allows us to dynamically prioritize how we allocate our capital and execute on our framework. In a scenario where we are above the interval, we will prioritize and allocate our operational cash flow to repay debt. In a scenario where we are below, we will have the capacity to allocate additional capital for investments, acquisitions and dividends. Organic investments have been the primary driver for us reaching our revenue ambitions in the past strategy periods.

We aim to continue to invest in R&D projects with an attractive risk-adjusted return profile in order to continue broadening the product offering in Oceans and Connectivity. In 2026, we expect to allocate around NOK 120 million in R&D investments, excluding Water Linked. Over the strategy period, we expect that the nominal level will increase each year with a target of 4% to 6% of group revenues. At NORBIT, we manufacture what we sell. We believe it's a competitive advantage. We remain in control, and it ensures flexibility, scalability and reliability.

This year, investments in machinery and equipment are expected to be around NOK 110 million, and it follows a 2025 also with a high investment level, all needed to enable the organic growth we've seen historically and building preparedness. Over the last years, we have prioritized automation and expanding our floor capacity. Our SMT line capacity has been increased significantly, while the floor capacity has been expanded both at Selbu and Roros. Going forward, we target to invest between 3% to 4% of group revenues in fixed assets with focus on automation to ensure a scalable production.

In 2025, we delivered a pretax return on capital employed of 34%, up from 27% in 2024. Last 12 months return on capital employed was 36%. Our return on capital employed ambition moving forward is more than 30%. To realize that ambition requires a continued focus on delivering profitable growth as well as working actively to optimize our balance sheet. This includes prioritizing the most attractive investment opportunities and managing our working capital efficiently.

Improving our working -- improving our capital efficiency has been a core focus over the last 4 years. Significant efforts have been made turning into tangible results. As per the end of the second quarter this year, our nominal working capital level was at the same as it was per year-end 2022, while our revenues in that same period is up 2.5x. I'm deeply impressed by what our colleagues have been able to achieve. And as we move forward, the ambition is to deliver on a working capital target level of 20% or below compared to revenues, making sure that we balance and optimize without compromising NORBIT's core value #1, we deliver.

Over the last years, we have stepped up on our M&A agenda as well and allocated around NOK 250 million each year since 2022 -- 2023 into acquisitions. These investments have predominantly been made in Oceans with the acquisition of Ping DSP in '23, Innomar in '24 and now Water Linked in '26. We aim to continue to look for attractive companies that can broaden our technology base and market access in Oceans and Connectivity.

Within PIR, we are opportunistically evaluating businesses that can provide additional customer diversification and market access. It is part of NORBIT's core purpose to explore more. This also applies to our M&A agenda. Exploring the potential for a fourth segment is part of that, supporting the ambition of building a larger technology company and creating additional diversification across customers, technology and markets.

As we head towards 2030, our ambition is to achieve more than what we have done so far. But we aim to do so in a disciplined manner, not compromising on our selection criteria operationally, strategically, as well as financially.

And lastly, to wrap up today's presentation, our dividend policy remains unchanged, meaning a distribution of 30% or more of the net profit after tax with the intention to pay out potential excess capital to the shareholders.

That concludes our 2 presentations today, and we now open up for the Q&A session.

Okay. We'll start with a question on the NORBIT brand. How does NORBIT management think about the trust embedded in the NORBIT brand among end customers? And how is this trust protected and leveraged when integrating acquisitions such as Water Linked?

Yes. So that's a very good question. And I think -- so the NORBIT brand is very strong in the markets where we have really been focusing. So I think any player in the domain having a need for a multibeam sonar will regard NORBIT as a good alternative. I think also in the tolling industry, NORBIT has a strong standing.

Of course, this is something we need to work hard to maintain every day. It's not only a matter of quality. It's a matter of behavior towards clients and colleagues and suppliers and community. When getting on board new companies, we will need to have something to offer. And by having something to offer, hopefully, new companies will embrace the full part of the NORBIT culture and then, of course, also work hard to help build the brand.

That said, it was a specific part of the question also with Water Linked. We think Water Linked as a brand itself on Doppler Velocity Loggers is very strong. So what we do is we will continue operating Water Linked as a NORBIT company, trying to use the strength from the NORBIT brand as an endorser for the Water Linked brand.

You comment specifically on the visibility within Oceans, but would it be possible to also comment on the visibility in the 2 other segments? Moreover, has the visibility within PIR improved in recent years? And within PIR, would it be possible to comment on the customer concentration?

Within PIR, the visibility has become lower in recent years. And that has primarily been driven by the shift from automotive, which has a more longer visibility on the production cycles compared to what we see now in defense and security. With regards to the customer concentration, we've -- what we have been reporting in the past is that the customer concentration in the PIR segment is relatively high. And that's also reflected in how we think about the priorities in the strategy period up against the 2030 ambition plan.

You highlight broadening the PIR customer base as a priority. Can you give us some sense of the current customer concentration? I believe that was already answered.

You won 2 surveillance sonar contracts worth NOK 50 million. Can you say anything about win rates, kind of competitive environment and general activity in this market?

So I think -- I don't know where this NOK 50 million would -- so it was mentioned in the report.

Yes.

Okay. Good. It's satisfying to see that after a long period of quite quiet on the surveillance sonars, we've got some very good contracts. The market, which we continue to believe will be a relevant part of our continued growth, has proven to materialize. Yes. So what was the accurate part of the question again?

Can you say anything about win rates, competitive environment, general activity in this market?

Yes. So I think in the past, we've seen increasing lead pipe and postponements of decisions. So we believe that we have a good offering compared to competition. And we think that the market might start to pick up even if this is -- I mean, it's a few orders being quite large. So when you have a couple of them at the same time, it's more and then maybe a quarter, there is none again. So...

There appears to be a large number of autonomous maritime projects, but many remain at relatively low volumes. Are you seeing any evidence that customers are moving from demonstrations and initial deployments to fleet-scale procurements?

I agree there is a lot going on, and it's a lot of different companies. I mean it's some -- in this domain, there is some well-established industrial players that are doing stuff. And at the other end of the scale, you see U.S.-based very venturous companies. And again, for us, we'd like to be the technology partner for any initiative, no potential too small, none too large. And whoever takes this market, we'd like to be a partner with them.

Against Doppler Velocity Log suppliers such as Nortek and Teledyne, where does Water Linked sit on the performance versus price curve? In which vehicle classes or application is it -- and -- is it? And is it not currently competitive?

So I don't think we'd like to comment so much on competitors' product portfolio, but our Doppler Velocity Loggers in Water Linked, I think, stands out as easy to integrate and as a highly compact. And I think also with some recent launch, we're taking the first step also into a more demanding client segment with more high-performance Doppler Velocity Loggers.

Ambition 2030, the EBIT margin range of 20% to 25%. If the revenue split you provide takes place, what needs to happen to end in the lower end? Or asked differently, what is the delta in the low and high end in your targets?

So the EBIT margin range, 20% to 25% is for the group, and that's a blended target. So we've given a margin ambition now for each of the 3 segments. And the blended margin for the group reflects the high end, the low-end range that we have communicated today. So yes.

Is the 2030 organic revenue target assuming innovations? Or is it based on your current product portfolio, including Water Linked?

So I think as you showed in the capital allocation framework also, I mean, NORBIT is all about tailoring technology to carefully selected applications. What we have fueled of or allocated of capital and resources into R&D investments is what has given us the best payback over time.

The nominal level of investments will increase with the growth we aim to have. The relative is very much in line with what we have. But being a technology company, the R&D capabilities and investments is vital to fuel this growth.

Could you elaborate on the uncertainty around the timing of additional PIR orders for Q4 delivery and what needs to happen for revenues to land towards the upper end of the NOK 2.9 billion to NOK 3.1 billion guidance range?

So I think what we've shown in the past also is that there is short time from we announce an order until it's expected to be delivered. This remains the same. It might be different kind of products could have different kind of needs for supply of material. So we are continuously building security stock to meet potential orders. This is done in close cooperation with the clients. But based on what kind of products being ordered and security stock and lead time on material could affect timing on -- if orders are delivered in Q4 or if it could be other timing on that.

Have you acquired any new customers within PIR this year?

Yes. Not any that we will disclose today, but the answer is yes.

Could you elaborate on what you mean by secure communications and more than traffic? What specific applications or opportunities are you targeting within this area? And how significant could this become as a growth driver for Connectivity?

Yes. So we are already in dialogue with players that has needs for different kind of products where our radio frequency and microwave skills, probably is the reason why they sit across the table speaking to NORBIT. And nothing specific mentioned, nothing forgotten. But I think just reminding again of these very broad references. I mean, it's the same group of brilliant engineers that has designed this GNSS On-Board Unit and also the onboard units, that's pure toll tags and this quite big naval antenna systems, which goes on submarines.

The demand for both of these is increasing. And I think by showing these differences, there is a lot in between where there is a need. And it's a special purpose. It's -- I mean, it's not cellular phone communication. We're not going to be competing with Huawei and Apple, but there is a lot of special purpose.

You mentioned the potential for a fourth business segment. Is there a particular technology domain or end market you have in mind?

I mean, NORBIT explore more. We're a technology company with some skill sets. If there are needs in other verticals where it could be that NORBIT makes a difference, we'd like to explore that. The R&D services part of NORBIT has been doing a design of technology and products in a very broad scale of industries. In the EMS part in the manufacturing, it's the same. So the question is, is it in some of these domains where we have the R&D references and the manufacturing capabilities needs for something new where we see that NORBIT could be relevant and go into that.

And I think as it's mentioned here, maybe what we've learned is that it's taken us many years. I mean I had a color on my hair as you when we started to work with Connectivity and Oceans. So it takes a lot of time to build up in the market. So if we'd like to go into a new vertical, it might be very relevant to consider M&A as a jump start to get market access. So yes.

To attract engineering talent, would a reallocation to a more cosmopolitan area like Amsterdam, Berlin, Copenhagen be required?

I didn't get that fully. So...

To attract engineering talent, would a reallocation to a more cosmopolitan area be required?

So it's something wrong with the assumption, what's more cosmopolitan. I mean, so Trondheim is quite in the central of the world, isn't it? So -- but attracting talent is very important. Location could matter, but also what we see is that we're not only located in Trondheim. Sometimes, if we need a proper expert, we might be located where this expert lives. Setting up a remote location, adding some support around a proper top talent we've done in the past, and we will probably do that also in the future. So we're a global company.

Some questions on Connectivity. Can you give some more color on the Connectivity gross margin decline? How much is driven by component price increases versus mix?

The gross margin decline, as we written in the report, is primarily explained by the GNSS On-Board Unit, where the memory chips are included in that product. And that's the primary driver for the gross margin decline. And the mix effect comes into play in terms of the sharp increase in demand for GNSS On-Board Unit in the quarter.

How should we think about gross margin for the segment into second half? And how are contracts in the GNSS On-Board Unit structured in terms of pass-through of rising component costs?

We haven't given any exact guidance on the gross margin for the segment into second half. And I don't think we need to be specific on how the contracts are structured in terms of this question in particular.

To understand 2030 guidance for Connectivity, how much of growth do you assume to come from new products that currently are not part of your portfolio today?

Yes. So I mean, if you ask that question 2 years ago, the GNSS On-Board Unit was not part of the revenues. So I mean, this shows the importance of being agile and act upon opportunities. I'm convinced that when we're back in 2030 or maybe 2029, if we should make it 1 year early, we have products included that are different products than the ones we have identified and build our growth ambition on, that there is some we have on the list, which we strongly believe will materialize, that we will prioritize not to do because we've learned something new that's more important.

So I think during the IPO process, we were asked what will NORBIT be doing in 5 years from now? I responded, I don't have a clue. I don't know. A lot thought that was a strange and wrong answer. I think for NORBIT, it's an important answer. We look and we have identified things we believe should be, but we don't nail that as a fixed plan because tomorrow, we learn something new and we'd like to adapt to that.

How does NORBIT as an incumbent in many of its markets think about innovation versus cannibalization of their own products?

It's better you cannibalize yourself than others do it. So I mean, disrupt yourself is a good approach to that. But I mean, if you have a strong position in a proper niche, I mean, this is the beauty of what we prioritize tailored technology in carefully selected applications. It's -- the scalability is right for us. The technology threshold should be high. Our engineers work very hard to be able to design this. It's hard in the manufacturing to make it. And then you have a threshold, so you could stay there for many years. So I think some of the products we're still delivering, we've been delivering for -- since many, many years, but we continue to do incremental changes to them also in addition to making complete new products.

Okay. I think that was the last question today.

Okay. So then thank you all for taking the time and showing the interest.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

EUR 38 million.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Not sure I got the question right.

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

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

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

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

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

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

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

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

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

I think that was the final question.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Yes.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

No.

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

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

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

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

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

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

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

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

Yes.

Yes.

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

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

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

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

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

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

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

Sorry, could you repeat that?

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

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

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

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

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

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

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

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

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

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

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

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

And that's prior to any replacement. Yes.

Yes. Okay. That was the final question.

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