Norsk Titanium AS Registered Stock

[Operator Instructions]

And with that, I'll hand over to Fabrizio.

Thank you, [indiscernible]. So first of all, good afternoon, good morning, everybody. Welcome to the Norsk Titanium first half presentation. I think, actually, you can move into the next slide. All right. So -- we started -- last year, we started a rigorous strategy review, followed by a definition of a road map linked to the strategy review. And then we started to execute on it very rigorously. And I'm happy to report that we have positive trends across the board from the financial standpoint.

Revenues are increasing both on the parts manufacturing and on the development part of our business. We were able to improve our cash burn with quite a bit of rigorousness on working capital and also making sure that we have the right people on the right spot. And we had a successful capital raise before summer. Also on operation, we are making progress towards our milestones. We continue to expand our relation with Airbus. We signed a new collaboration agreement at a group level with Airbus, which is very important. We placed our first machine in Varel, Germany, which is a first for Norsk Titanium, and it's really getting our RPD ecosystem strategy started. And we see that the lower frame fittings, which is the largest additive manufacturing parts ever produced and commercialized in aerospace, is ramping up very, very nicely.

Also important, we started our first production contract with Northrop Grumman. This is a landmark part on one of the crown jewels of the U.S. Air Force. We are very, very excited about that. And we were finally awarded $4.2 million by the U.S. Department of War to develop our technology for submarine and heavy applications. Last but not least, also our Industrial segment is helping us with Hittech, I'd say, growing multiple fold versus last year and projecting consumption of our parts to double again next year.

So all in all, a very positive trend from the financial and from the operational standpoint. Ashar, move to the next slide, please. Okay. A quick refresher on our strategy. As you may remember, we structured our strategy across 3 different verticals, focusing on our core OEM programs, both in commercial aerospace and in defense, focus on short-cycle sales in order to identify opportunity that we can translate into revenues, profitable revenues in a short period of time. And again, the RPD ecosystem, which is a brand-new business model that we are currently defining and structuring, which is meant to allow selected OEMs to in-source our technology to be put at the core of their industrialization effort when it comes to additive manufacturing.

Next slide. So we have been also completing our technology readiness level. I think we achieved at least 2 very important milestones in the first half of this year. So number one, RPD and Norsk were listed in the MMPDS handbook. Just again, a quick refresher. The MMPDS handbook is the bible for aerospace and defense engineers. So for RPD to be listed in the MMPDS puts them in the position to design parts using all the data that are certified and included on MMPDS.

We can see that this is already helping to gain more business and helping the design engineers to design parts on RPD. Also, we were -- we achieved the Nadcap accreditation. This is fundamentally important for aerospace and defense. So now we can claim that Plattsburgh, which is our production center in North America, is Nadcap accredited and this really puts Norsk Titanium years ahead of competition in terms of technology readiness and accreditation with both agencies and authorities in the aerospace and defense industry. Last but not least, we were awarded the Innovation Award by Safran. This is, again, testament to who Norsk Titanium is. We are a company based on innovation. We are a disruptive company, and we were recognized by Safran Landing [ Systems ] as such.

So we are very proud of this achievement, and this really proves that Norsk Titanium is gaining ground with multiple OEMs in the aerospace industry. Ashar, so now, deep diving into the 3 different segments. We're going to talk first about Aerostructures. Again, here, we see increase in part manufacturing and sales, of course, across the board, Airbus, Boeing, Leonardo and others that we cannot disclose. They are all growing in volumes with a very positive outlook. The lower frame fitting, which is currently flying on the A350, received certification also from the FAA.

It was certified by EASA. Now it's certified by the FAA and EASA. So now this can be used across the board and across the globe on any A350 that is produced. We are very active in discussion with Airbus on the Wave 3 production order, very intense discussion even across the summer with both manufacturing and procurement. As anticipated by the award, we continue to work with Safran landing gear systems [ Safran Landing Systems ]. And we are also very active on engine with one of the key OEMs where we are working really across the board to identify a number of parts that have a great fit with our technology RPD so that we can move forward introducing RPD also in engines, which, by the way, has a great potential for additive manufacturing in aerospace.

Ashar? So now moving forward on defense. Defense is even more exciting than Aerostructures or as exciting as Aerostructure. We are now in production with 2 primes, Northrop and General Atomics. This is great for multiple reasons, not just because we're going to generate revenues, but this is because this is going to unlock the opportunity to translate across those platforms at Northrop and General Atomics. Number two, we were awarded $4.2 million by the Department of War. This is a landmark development and is meant to -- for Norsk Titanium to develop applications and be qualified with the Department of War so that this can open the gate to applications in the Department of Defense. And we are getting funded to do that, which is a little bit different than in the past. So we are very excited. We have started -- this program is going to last 18 months. And after that, we are going to be in a very different position within the Department of Defense.

We also won an award with America Makes. This is kind of similar in nature, if you look at the DIB-EDGE award, is we are here -- we are going to train a number of defense departments on RPD and our technology. And we are going to achieve qualified supplier status on titanium parts at the end of the 12 months program. Very exciting. During our March Investor Relations presentation, we were talking about large opportunities. You can see here, we highlighted as undisclosed defense prime opportunities. I can tell you that we are in 2 key programs focused on the replenishment of what the U.S. has deployed in the last 12, 18 months. This is very exciting, is very, very active discussions and technical qualifications. As I said back in May, we expect to know if we are going to win and how much we are going to win by the end of the year, and we are fully a target in order to do that.

If yes, this is even more exciting than a couple of months ago. Ashar, so from the industrial side, again, the development that we did along with Hittech is now bearing its fruit. We are growing this part of the business multiple fold versus previous year. We are going to double that next year. This is really proof that the RPD technology can go beyond aerospace and defense.

We are in discussion with Hittech on expanding this development in semiconductor and outside. It's great to have partners like Hittech, and we are very excited about going beyond aerospace and defense. I mean it's -- for us, this results in much shorter cycle development which is a relief if you consider that aerospace and defense always require long development cycles, being in semiconductor, being in oil and gas, being in energy type of applications, while it's still very special and commands premium in terms of pricing and value is much shorter to realize. So we are building a pipeline. And in the next few months, we will be able to report on that pipeline. Ashar, okay. So we talk about the third leg of our business, which is the RPD ecosystem. We placed -- we now have a machine in Airbus in Germany. This is the first for Norsk Titanium.

It's the first time that we place a machine outside of our premises. This comes, of course, with quite a bit of learning. But so far, I have to say the team has been really focused and working with Airbus in order to make this a success. We expect this machine to be fully accepted on site by Airbus by Q3. So October, beginning of October, November, we are going to be there. And then the process qualification process will start. This is exciting because although we have already qualified in a number of parts and today, we are qualifying part by part. Look at the example of the lower frame fitting. The goal here is to qualify our process. And when our process will be qualified, the qualification part by part is going to become much quicker than it is today.

On top of that, Airbus engineers will be able to design parts on RPD to start with. So this is a landmark development, and we are fully committed to execute that within the next 18 months in order to bring this to conclusion. Very exciting. Production -- hold on a second. Ashar, have a couple of more messages about Airbus. We are very active in discussing Wave 3. We have been very active throughout the summertime with exchanges and very heated exchanges with both manufacturing and procurement.

We responded to a number of RFQs, and we are working very diligently and with a very high sense of urgency in order to translate that into the biggest package possible for Norsk Titanium. Okay. The floor is yours, Ashar.

Thank you, Fabrizio. Just to go through some of the key financial highlights for the first half of 2026. I'll start with the income statement here. As Fabrizio mentioned, revenue and other income in the first half of 2026 increased to 2.9% (sic) [ $2.9 million ] compared with the same period in 2025. That's approximately a 38% growth. This growth is driven by serial production revenue of about $1.1 million in first half of 2026, which is approximately 29% growth over the same period. This serial production growth was due to increased volumes of parts in serial production with Airbus, but also recovery in the Hittech volumes in 2026.

The second part of the revenue, development revenue, was $1.7 million in the first half of 2026. This is approximately 50% growth over the same period in 2025.

And this is driven by activity development activity we have ongoing with Boeing, but also additional activities that we have going on with Safran as well. On the expenditure side, we remain quite cost disciplined. Our operating expenses came down to $15 million or negative $15 million from negative $17.2 million in the same period last year. This ended with an EBITDA loss of $12.1 million, which is an improvement of approximately $3 million when compared to the same period last year. Net losses is extremely -- when compared to the same period last year, extremely much lower. This is -- I just want to remind the viewers that in first half of 2025, we had a net loss on the foreign exchange, a noncash loss on foreign exchange between the -- on the intercompany loan between the parent company, Norsk Titanium AS and the subsidiary, Norsk Titanium U.S.

So that was a noncash foreign exchange difference. So when you reverse those impacts out, our comprehensive income in the first half of 2026 was -- or comprehensive loss in first half of 2026 was $12.2 million compared to a comprehensive loss of $14.5 million in 2025. So this is an improvement of approximately $2.3 million. On the cash flow side, we started the year with $19.3 million in cash. During the period -- during the first half of 2026, we used about $11.8 million of cash in operations.

This was down about -- from $16.8 million in the first half of 2025. Net financing inflows, as Fabrizio mentioned earlier, we did a private placement. We were -- we executed and realized $13.2 million from the first tranche of that $27.3 million private placement in -- before the end of the period on June 30. So we ended the period with $19.6 million in cash and which represents -- and well, when you exclude the financing activities, this represents a $2.1 million monthly average cash burn rate. Which is down to about -- which is down from $2.9 million in the same period last year. This again shows that we are able to be disciplined in our expenditures and control our cash burn and anticipate the cash and anticipate cash burn and how we control it as we ramp up into higher volumes of sales.

As I mentioned, cash balance ended at $19.6 million as of June 30. But we also wanted to give a reflection or at least reflect on the -- if we were able to complete the entire $27.3 million private placement in this half of the year, we would have had a pro forma cash balance of approximately $35 million if we were able to realize the entire proceeds in -- by June 30. Okay. Fabrizio, back to you.

Yes. Thank you, Ashar. Flip the slide. Very good. So we have the ambition to achieve breakeven by 2028 with a 25% capacity utilization. We are also working towards achieving the first step of realizing the full value of Norsk Titanium by 2030, achieving a significant operating leverage, driving towards 30% EBITDA margin on sales. So how do we do that? And how is this possible? So first of all, we are really backed by very positive dynamics in our target markets, aerospace, defense, even semiconductor. So we are in markets that are pulling for our solutions and they are working and we are working with customers that are committed to bring our technology at the core of their industrial platforms as an enabler and as a solution to their bottlenecks.

And this is a great place to be. So -- but what are going to be the levers? So number one, obviously, volume growth, okay? So we need to bring home what I call needle movers in terms of development in aerospace, in defense, and we already have one in industrial markets, okay? If we will be able to do that in the next 2 or 3 years, we are going to be in the position to breakeven in '28 and realize the first step of the full value capturing by 2030.

Second, we need to make sure that we have the right revenue mix. We believe that the RPD ecosystem will support achieving the 30% revenue on sales. So this is a CapEx-light business model and will certainly boost our profitability going forward. And then last but not least, cost efficiency. Both on how we spend our cash. And I think we are making progress towards that rigorousness and being very, very cautious when we spend money, but also making sure that we remain or improved competitiveness of our technology.

We are very positive on the financial side. We are certainly showing the positive trends across the board, revenues, cash burn, and we were successful on the capital raise. We remain committed to be very successful at one of our core development, which is Airbus. We are working across 3 different work streams there. Production order #3, placing our machine and certainly supporting all the business we already have, which is ramping. We don't stop there.

We are working with a number of other aerostructure OEMs, including Boeing, Safran and other engine manufacturers. So very exciting there. Defense, it's a very exciting market and market dynamic, very strong pull. We are advancing discussions with a number of primes. We are working in order to define success in the next 2 or 3 months. This will be instrumental to our success. And then RPD machine, the RPD business model, the ecosystem is also making progress, okay? Place the first machine, and now we're going to expand from there to -- within Airbus and with other OEMs. So small steps, small quick steps that will help us to achieve our targets in '28 and 2030. Thank you, and I hope this was informative. Open to questions. Thank you.

Thank you, Fabrizio and Ashar. We have received a few questions. So let's start with the first question from Nicolas. When is it realistic to expect actual revenue from defense customers?

Okay. I'll take this one, Ashar. Okay. So first of all, we already have actual revenues from defense customers, okay? So these are low rate productions. So not really meaningful, if you ask me, from the revenues that we need to achieve standpoint, but still meaningful from the strategic standpoint. So we are already there. Now we are working on large and important programs, okay? If we win and depending on how big this is going to be, but this can happen very quickly, okay? So we are talking about in the next -- to start to realize sales in the next 6 to 12 months.

So this is going to go very, very fast, assuming we win and we win in a big way.

Thank you. And on that topic, another question from Marcus Gavelli. Are the potential contracts with the defense primes multiyear in nature or more of a short-term replenishment?

I think we are working on both areas. So short-term replenishment, which would mean 2 or 3 years of work and then long term in other areas. So we are working on both directions.

Next question, also defense related from [indiscernible]. You have mentioned 2 Patriot-related programs and previously indicated that you expected clarity on potential awards by early October. Has the time line now shifted toward year-end for both programs? Or do they have different decision time lines?

And beyond these 2, are there additional Patriot-related opportunities currently progressing?

So yes, I mean, I think the timeline has not changed -- it can be October, it can be a little bit later than that. Again, like aerospace, we try to influence the best of our abilities, our customers, but we don't do a very good job at that. I mean at the end of the day, their decision-making is outside of our control. What we can do is really to stay focused and help them make the decision. So I still believe that October is possible for sure, by the end of the year. On 1 or 2 big programs, we will know where we end up.

Then another question from [indiscernible] related to Airbus. You have said that there were several interesting discussions with Airbus over the summer. Is it fair to assume that the technical work is largely completed and that the dialogue is now increasingly focused on commercial terms and the path toward Wave 3?

Do you feel Airbus is investing more time and resources in the process than before, potentially allowing Wave 3 to materialize relatively quickly?

It is a fact that Airbus is engaged heavily across the board. So manufacturing, procurement at this point, even program. So that's a fact. Over the -- we had a very busy summer. I even had to fly back through my own vacation. So, this is a testament that things are moving faster. There is full engagement and commitment to make to in-source additive manufacturing and within their industrialization process. This is certainly going to help -- this is helping today our discussion on Wave 3, which are, as I said, very active. They have been very active over the summer. They are still active as I speak. So things are certainly in a positive dynamic.

A question from Sarah K. Any news on the Boeing relationship? Can you give some color on the current development work with them?

Yes. I mean we have multiple exchanges with Boeing. You can see that Boeing is a big part of our development revenues for the first half. So it's actually a very large part of that. So of course, you can see that the discussion with them continue. We are still working in order to make sure that we have the same type of discussion that we are having with the other OEMs. I would say that with Airbus, we are certainly much more advanced, but we are working very hard to do the same with Boeing.

A question from [indiscernible] in Arctic. The first RPD machine at Airbus, Varel, is targeted for commissioning in Q3 2026 and is described as a blueprint for further deployments. What are the economics for Norsk Titanium from these machine deployments? And when could we realistically see a second or third OEM deployment?

Yes. So I think at this point, Airbus is covering all the cost of the deployment on their premises. So they are covering all that. We are working in order to define a business model to go beyond that one machine at Airbus and just Airbus. So we are going to complete the business model before the end of the year, and then we're going to start execution because that's an integral part of our results by 2028 and 2030. I don't know, Ashar, if you want to add anything on the economic model. But at this point, I will not do that.

Yes. I mean I think as Fabrizio mentioned, we are still ironing out how we implement and what kind of revenues we can monetize with this. And this platform with Airbus gives us a very good and reliable case in the real world. So we're still working through it, and we will report back as we mature this business case.

Another question from Marcus Gavelli. Looking at the current scope of opportunities across sectors, could you try to rank them in terms of gross margin?

Across sectors. It's -- at this point, obviously, these are opportunities that we're looking at. Clearly, the serial production parts that we have in serial production today are not the best parts for -- other than a few of them for our process. So as we look forward and look at the pipeline that we have, and previously, we've talked about having -- going from a 30% contribution margin where we are today towards a 50% contribution margin, and those are the unit economics and cost efficiencies that we need to realize. So I hesitate to rank the opportunities because they vary, right? In defense, we're looking at some opportunities that are very profitable and high volume, just given the nature of those parts. In Airbus -- in aerospace sorry rather, they are also very profitable parts there, too.

It's basically just moving from where we are today and where we need to get to. So, I hesitate to provide a distinct answer on the rankings, because we want to provide ground this in the credibility as we transition these parts into production.

Okay. We have time for 2 more questions. The base case targets a ramp-up towards $75 million in sales by 2028. What full-time employee count do you need to be able to deliver on your base case? And when do you need to begin scaling the organization to be ready?

Ashar, do you want to answer that one?

Yes. So as we have said in the past, where we are today in terms of the operating leverage of the business, that can service us to breakeven for the most part. Obviously, there will be some incremental increases required from here. So not significant from where we are today. From a variable perspective, obviously, that's where we're going to focus a lot of our hiring is as we scale up into 2028, and we internally like to think of towards 2028 as a breakeven, obviously, and we start planning around that. So our main focus is going to be bringing on the direct labor side of the business.

And that direct labor side of the business will scale as we scale production. There are several factors that go into that. We've talked about in the past having -- right now, we're almost at 2:1 operators per machine, and now we're moving towards 4:1 operators per machine. So as we mature this technology, we grow into that 2028 number. And within that number, when I talk about the contribution margin and the unit economics improving, it's due to these types of efficiencies that we are trying to realize. So I would say majority of the 2028 staff is in place, and then we're just going to have incremental direct labor input, or increases as we ramp into 2028.

Thank you. This will then be our final question before we wrap up today's Q&A. Are you financed till cash breakeven?

Yes. And I think we've been clear in June and in our May discussions as well. The capital we raised gives -- puts us in a very strong balance sheet position. We haven't -- we continue to look at multiple sources of capital to -- in terms of getting debt financing and other financing. It all depends on the upside, right? I will not -- I will today not say that we're fully funded to breakeven. But if the upsides come through, then we are. So there is maneuverability room for us. And obviously, we will look at non-dilutive sources of capital as we ramp into 2028. And those orders would give us the ability to diversify our financing resources.

Thank you. So with that, we conclude today's presentation of Norsk Titanium's first half 2026 results.

And if we did not get your question, please feel free to send it to Ashar by e-mail. So thank you all for joining, and have a good day.

Thank you.

Thank you.

All right. Welcome to the Norsk Titanium presentation. We are really happy that you are here today. My goal is threefold. So I will present to you, and I will -- we will discuss where is our market, where is Norsk Titanium today, but most importantly is where Norsk Titanium is going in the future.

So without further ado, let me start with a very quick refresher about Norsk Titanium. So we are an additive manufacturing company with a very, very specific and peculiar technology, which is able to deliver additive manufacturing features with mechanical properties that are equal to the forging, which is really, really distinctive in the marketplace. We are qualified in aerospace and defense, and we have a full-scale production capabilities and 2 facilities, one in North America and one here in Norway in Eggemoen, okay? So really, really established to really capture the growth that is coming ahead.

So let's talk about our market. We are targeting very technical spaces. So aerospace and defense are certainly our prime targets, including engines and a number of industrial opportunities. These markets are big and growing, okay? So -- and the drivers of this growth is basically driven by the fact that titanium supply is highly constrained. So there -- you have a number of OEMs that are looking for alternative solutions to support their build rates and growth plans, okay? So this is a very, very important factor.

Another very important factor is that these people are trying to do the job, not just by finding alternative suppliers, but companies that can help them approach this in a very cost-efficient fashion. And through our technology, they can achieve that. There is a new factor that is developing. And I think these days, you can read it certainly in the news. There is defense that is coming very, very strong. Titanium and specialty alloys are widely used in defense. And today, there is a need in air, in space and in navy to develop parts much faster and in a delocalized fashion. Of course, additive manufacturing and Norsk Titanium are really well positioned on that space. So the market is big, and the market is growing. I mean, it's not just intact, but the market is really, really growing. And this makes us very, very excited.

I'd like to bring in one of my customers and one of my lead targets, okay, so which is Airbus because the market is not just only growing and big, but we have customers and lead OEMs that are investing time, money and effort in order to in-source technologies in order to make that happen. And additive manufacturing is right there. I mean, what you see here is the Airbus web story, which came out, I think it was, late in January, if I remember correctly. And if you go in the article, you really understand what is the drive that Airbus has in order to put additive manufacturing and RPD, which is our technology at the core of their industrialization plan. And this is, of course, a very, very, very exciting for Norsk Titanium. We've been working with them for a long time, and we are in a position right now -- on a lead position there that is very fortunate, and it is going to help us to project ourselves in the future.

All right. So are we starting from scratch? No, no, we've been working in the last decade to establish our position. So this has been certainly a long development cycle with a lot of work with OEMs, especially in the engineering and in the research departments. But we have established really a very good position for Norsk Titanium. So far, we have delivered over 2,000 parts between aerospace and defense with 0 defect, okay? Nobody can make this claim at this point in time. We have also developed and delivered the world's largest additive manufacturing structural parts, which is in flying and civil aviation. We are very, very proud of that.

We are MMPDS listed. So MMPDS is the bible in aerospace and defense when it comes to material and processes. So today, an engineer can go to the handbook and can find all the data that he or she needs in order to design parts. So this is going to help us to translate parts into business in a much faster way. It's going to give us the credibility and the authority that is required by aerospace, defense engineer and industrial engineer to design parts on our data.

Last, but not least, we are qualified by 2 U.S. primes, okay? So these are -- our technology is established in defense. It has been used in what we say low-rate production modules, and the challenge will be to go into high rate. So this is the position that today Norsk Titanium enjoys, and this is really our starting point for the future. How do we build that? I mean, as I said before, we really worked hard in the last decade to develop this position. And we worked with our customers, especially in the engineering and R&D department. But going forward, we need to make a step change, and we really need to change gear, as we said there.

And how we're going to do that? I mean, we are going to build on -- we're going to -- building on what we already have, we're going to move forward, adopting a new operation -- operating model because at this point, we are in a very strong market growing. We have a very solid position. Now, we need to translate all of that into revenues and into commercial success. And how are we going to do that? We're going to do that with a really new operating model. So we're going to execute in a different way than we did in the past.

For one, we're not going to target just engineer and R&D -- the R&D functions with our customers, but we're going to target the entire spectrum of constituencies. So we are now working with procurement. We are talking -- we are working with program. When I say program, I mean the A350, the A320, the Boeing 787. So you need to work with all the constituencies on those OEMs to make it happen.

We are also very selective on who do we work with. We work with OEMs that are in markets that we consider very large opportunities. Again, aerostructures, engines, defense belong to that category. We work with OEMs that are pulling for our solution and RPD. They want to include RPD in their industrial platforms. And they have a plan with milestones that are agreed and shared with us. And at the end of the cycle, we have a line of sight to a price, which is going to be number of parts and revenues that Norsk Titanium is going to generate. So this is very, very different than in the past. But one thing is working with qualified and important customers. The other thing is how do we work with them.

And we are going to really establish what I call the customer engagement team. So this is a team in Norsk Titanium that is going to be allocated and dedicated to every single lead OEM and it's going to work hand-in-hand with them to help them go through their industrial road map and make sure that we deliver on those shared milestones. These teams are made of also cross-functional within Norsk Titanium.

So now, we have a commercial representative, which is keeping the relationship with the customer. We have the technical head, which is coordinating all the technical work that goes into helping them going through the road map. And then, we have program managers. Program managers are the people that internally in Norsk Titanium, when we win projects, they make sure that we can execute internally. They align operation, they align engineering, they align supply chain. It's complex, and you need people that are dedicated and really working in order to execute. So execution is really one of the new traits and one of the new focuses that we are going to have in Norsk Titanium.

What do we expect at the end of the cycle? Of course, we expect to win, and we expect to have good chances to realize our future road map. So strategy-wise, which is also revenue-wise, I want to make it very, very simple, okay? So Norsk Titanium is going to follow 3 legs, okay? So as we said, we are going to stay focused on the core. So again, the 3 markets, aerostructures, engines and defense, we want to work with lead OEMs on that core space.

Something very new, we are going to establish what we call the RPD ecosystem. So the RPD ecosystem is a deployment of our technology and our machines with those lead OEMs. So you can see the link between the core programs and the RPD. And last but not least, we are also going to focus on short-term opportunities. I mean, we are lucky to have a wealth of opportunities that always come in our door. We need to get better at winning those opportunities. So we have teams that are going to work on that.

So now, let me walk you -- let me go a little bit more into the details of these 3 legs, okay? So leg #1 is our core. As I said, it's aerospace, aerostructures, engines and defense. What you see here is basically our development cycle. And we are at different stages depending on the different lead OEM, okay? So what you see here, I think -- I'm sure you can recognize Airbus and the 2 primes we are working with and where we are qualified, so Northrop Grumman and General Atomics. Here, we are really at the end of the development cycle. We are on the tipping point that is going to take us into the commercial area.

Now, you go back over here, and you can see here that we are at the beginning of the journey in engines, and we are in launching with landing gear customers, okay? So this portion, which is also very important, will represent a very large opportunity going forward. So we want to make sure that, yes, we focus on the short term, and we realize the opportunity in the short term, but we don't forget that we want to get the full price that we have before us.

We have also OEMs in the middle, people like Boeing. I have to say Boeing was a very important driver for us a few years back. We are now working in order to identify a new path to work with them. We are -- as you can see here, there is a lot of Boeing here. But here, we have some work that needs to be done to take this company at the level of this other company. But we have contacts, we have the network there, and we are going to do just that. So -- and again, the short term, the long term, and here, the medium term that needs to go also in the short term. So this is how we are working on our core.

Let me go just very quickly into a couple of examples. One, of course, is Airbus. You can recognize possibly one of the slides that we used in previous additions. With Airbus, we need to do 3 things, okay? Number one, okay, we have qualified parts that are flying. We need to make them. We need to ship them, and we need to book them as revenues. This is number one. Number two, there are a lot of new parts. So we call it the Wave 3 that we need to convert into parts. So this is a big job that we need to do in order to make sure that we maximize the number of parts that will be converted to RPD. This is a lot of work that is going to take place in the near term.

And last but not least, I'm hopeful that you read the latest press release. We are placing a machine in Airbus, Germany, in order to help us to really expand and set RPD as their core additive manufacturing technology. We are going to do that with a dedicated team, again, commercial engineering and program, and we're going to make sure that here, you have a whole bunch of milestones. We want to make sure that we are going to deliver on every single one of them.

So what we do with Airbus is not going to be different than what we are going to do with General Atomics, okay? General Atomics is a very important defense prime in the U.S. We've been working with them for a long period of time. We are qualified. And now, we are in what we call the low rate production of certain devices. The challenge there using our customer engagement team will be to move from low rate to high rate. So we're going to work with General Atomics and other defense primes in order to go into their high rate productions, and we see that as a very large opportunity. So aerostructure and defense with Airbus and with a number of primes are really the biggest opportunity that we have before us in the next -- in the near term.

All right. So let's talk about the second leg, which is what we labeled the RPD ecosystem. I can tell you what the RPD ecosystem is not, okay? We are not planning to start selling machines to whoever comes to us, okay? That's not what we are trying to do. What we are trying to do instead is working with lead OEMs to help them to in-source our technology in their ecosystem and design specific ecosystems around the RPD technology.

So in the Airbus example, we're going to place the machine. And in the future, we're going to help them to really expand the use of RPD within their ecosystem. And we're going to work with them through placing machines, selling machines, licensing technology or whatever way is going to help them to really establish an ecosystem within their manufacturing universe in order to leverage our technology. We see this as a great opportunity. This is certainly a game-changer, and this is going to help Norsk Titanium to make a step change in market penetration, but also in revenues.

I want to say that we are not starting from scratch. We already have between 3 and 5 express of interest from very different customers across multiple industries to source the technology through an ecosystem. They all want to establish ecosystems based on RPD. And that's great news for Norsk Titanium.

Okay. I think this is what is happening in Airbus. I went a little bit ahead of myself. So we are placing a machine. The focus here is to help them to qualify the RPD process. So in the past, we've been qualified parts part by part. So every time there was a new part, we were working on the qualification of that specific part. What we are going to do now is qualify the process. And when you qualify the process, then you can qualify parts in a much faster way. And this is going to accelerate our go-to-market and our ability to convert parts into business. Okay. Yes, I think this was the main point.

Okay. The last leg is leg #3, which is about converting the rich pipeline of short-term opportunities that we have into wins. Norsk Titanium, because of our technology, because of the features of our technology, receives a number of leads that want to use our technology. So what Norsk Titanium needs to do is become better at winning those opportunities. So we are using basically the same operating model that we are applying to the core, and we have established a dedicated team whose job is to jump on those opportunities, work them and win them, okay?

So these are opportunities that are very different than the core. I mean, core typically, you have long-term programs, which are very complex and that requires quite a bit of time. Here, we are talking about opportunities that can be translated in 3 to 12 months, okay? So here, we have the opportunity to add to our revenue line in a relatively short period of time. Again, I always say Norsk Titanium is not in the business of tomatoes and potatoes, okay? So we always need to work hand on hand with the customer to qualify our material and to help them design the part.

But in these type of industries, we are talking about energy, we are talking about semiconductor, but it is really a multitude and a very diverse industry base. It takes 3 to 6 months from start to finish. So we expect this work stream to help us increase our top line in a short period of time. The other beauty of this is going to help -- this is going to help us to build muscles, okay? Because by working on short cycle and really jumping on those opportunities with a different attitude and pushing our platform to win those opportunities, we're going to build muscles. It's going to help also on the core.

So let me just -- I'm hopeful that I was able to give you a good view of what is the opportunity, where we are and what is our future. But I want also to give you an opportunity to understand what we are going to deliver and where you can measure Norsk Titanium. And we have 4 main milestones, okay? The first milestone is, of course, on Airbus. We -- as I said, we are very advanced in the discussion with Airbus. And this is, by far, the most important milestone that we have. What success is going to look like? I mean, we need to start to convert parts. We go back to the 3 points that I explained before. We need to be successful on placing the machine, and we need to bring this to the place that it needs to be, okay? So this is a very, very important milestone.

Milestone # 2, we need to go from low rate in defense to high rate, okay? So we are qualified. Now, the challenge is to go hand-in-hand with a number of defense primes from low rate to high rate. We need to deploy the RPD ecosystem. I mean, in the next, let's say, 2, 3, 5 years, there is a lot of work that we need to do. We are starting with Airbus, but this is going to expand to other 2, 3, 4 other lead OEMs. So this is very important. This is going to be a game-changer for us. And we need to make sure that we have a very structured road map. We deliver all the milestones in that road map.

And then last, but not least, we need to convert short-cycle opportunities. This is going to happen this year, next year and the year after. And I think we need to be able to demonstrate that we can not only get those opportunities, but win them and translate them into revenues. So this is the story about Norsk Titanium, about the market, about where we are, but most importantly is where we are going. And the difference is really about more traction from the market because I can tell you that, especially from aerostructures and from defense, we see -- and also from engines, we see really, really more traction than we saw before, especially from defense. Strong interest from our customers and from lead OEMs that have decided to include RPD in their industrial platforms. Now, it's all about execution and making sure that we make it happen. So having a new operating model that is going to enable that is fundamentally important.

Thank you for today. And I think I did okay. I'm 22, 23 minutes in, so we have another 5 or 6 minutes for Q&A. Thank you.

Thank you, Fabrizio, for the presentation. So I guess we'll move over to the Q&A.

So before we begin, I would just remind everyone on the web that they can use the Q&A function if they want to ask any questions.

So I guess, I'll start in the audience. So please raise your hand if you want to ask any questions.

Discussing these days with Airbus, I guess they all know your financial situation. So how do they kind of ask you, so how are you going to solve this?

Well, I think, yes, you are right. I mean, Airbus knows us very well. They've been knowing us for 10 years, and they know that we have important shareholders that have been there for us all the way. So this is certainly a guarantee for them, and they feel very comfortable with our situation. And hopefully, this is going to -- they're going to help us, too, because they are a very important part of our success. So we are certainly hopeful that in the next period, they will help us to be also financially successful, not only technically successful.

Then, to be convinced that you're going...

Survive.

Survive and succeed in this.

Yes. And as I said, I think they look at our history and what happened in the past, and they have a high confidence because they see that every time we need to help, we are lucky enough to have a couple of very important shareholders that believe that we are going to be successful, and they are always there to back us up. So we don't start from scratch. We invested $500 million in this company, and we have a very strong and solid position, and we have a very strong shareholder structure. So I think we were able to convince Airbus that we are solid -- we are a very solid concern. Having said that, we also need them to help us, okay? So -- and we made this very, very clear, okay?

Ashar, I don't know if you want to add anything?

I think you said it perfectly.

Okay. Very good. Thank you.

To the web. So we have one here. What is fundamentally changing under the leadership of you, Fabrizio?

So what is fundamentally changing, I think, is first, I think I'm lucky enough to get to Norsk Titanium in the moment, which is really the tipping point, okay? So you can clearly see that customer, and tipping point, look at the Airbus web story, you can see that I arrived at the right moment. So I think I'm a lucky guy. But what I'm changing is really our operating model and how we are approaching our customer. I'm really designing a new organization, which is customer-centric that is working around the customer milestones and is there to help and support our customer reaching the milestone that will get us to the success. This is what is changing. And it's not just design around the customer, but it's grounded on execution. I mean, we need to execute. We need to be at best when it comes to execution. So we are working very, very hard to be good at that.

Okay. We have received a bunch of questions on the Airbus third production order, but I guess I will try to sum it up. How should we think about Airbus going forward? And is the placement of the machine, is that a step closer to a third production order?

Okay. So first of all, we've been working with Airbus on this for a long time. I mean, it's very difficult for us to precisely predict exactly when that is happening, and that's one of the reasons why we had to change guidance. I mean, it's very difficult to precisely predict that. We are confident that it's going to take place, but predicting exactly when and how is the challenge that we have.

The machine placement, of course, I think anybody can understand, it brings us closer to Airbus, it's going to help in the future. I think it's going to help a little bit also on the conversion on the third production order, but it's more for the midterm than for the short term. The game for the short term is all done, okay? So now, we just need to bring it across the finish line.

Do you plan to transfer existing RPD machines to lead OEMs like Airbus? And if the machines are required, which partly is responsible for the CapEx for building them?

So right now, we -- yes, we are -- in the Airbus case, for example, we are moving an existing machine. So there's no CapEx required. We -- the bulk of the machines are placed in New York. And we'll see. I mean, we will evaluate case by case and decide case by case on what to do. But I think it's an opportunity that we need to evaluate very carefully and make sure that we do the right thing. But it's -- we feel stronger in that, too.

What is the current status of the Inconel development program?

So on Inconel, okay, we've been developing titanium parts for a long time. In Inconel, I think we started maybe 12 months ago, 18 months ago. So I think we made a lot of progress. We have a very, very strong pool from the navy on that material. And I think with their support, their interest, we will be able to really accelerate in closing this development very soon. That's one of our targets, for sure.

Sharing RPD machines with your main OEMs lead to any changes in the revenue model? Will this be a licensing revenue or part revenue?

Yes and yes. So the beauty of the RPD ecosystem is that it will be instrumental to a multitude of revenue streams, okay? Are we selling the machine? Are we licensing the machine? Are we asking for royalties on part by part? Are we going to sell the software? Yes, yes, yes and yes. So it's a beautiful way of expanding the use of RPD.

We're at the end, but I will try to squeeze in 2 more questions. What is the cost of relocation the machines to Airbus? And the last one is, do you have any new estimate for when breakeven could occur?

So I'll start with the cost of the machine, so right now, the -- moving the machines that we're not going to do that on our own time. Obviously, we're working with the customer on that. So we will -- we have a model where we're cost neutral on placing the machine. It is more important for us to develop the process with them, as Fabrizio said.

In terms of breakeven, we're not providing any guidance to the market as we said in our previous operational report, but fundamentally, we're going to work with the customers. We're going to see how this timeline is changing, how some things are coming forward, how some things are moving back. So as time goes by, as we get better milestones and better at controlling the milestones, we'll come back to the market with our plans. I guess, there's no new estimates for breakeven. No, yes. Thank you for the presentation.

Thank you very much.

Thank you to everyone watching in on the webcast and showing up here in person.

Thank you.

Thank you.

Good morning, everyone, and welcome to Norsk Titanium's Q4 2025 Operational Update, Q&A Session. Thank you for joining us following yesterday's publication of the Q4 operational update.

I will be moderating today's session. And with me on the call are Fabrizio Ponte, Chief Executive Officer; and Ashar Ashary, Chief Financial Officer. Fabrizio will begin with brief opening remarks, after which we will open the floor for questions.

Fabrizio, please go ahead.

Thank you, [ Joachim ]. Can you hear me okay?

We can hear you.

Very good. So thank you, and welcome to the Q&A release, everybody. So the release of this report was originally scheduled for the 4th of March. And I want to confirm, we will still host a full investor presentation in Oslo next week, and I will be there present. However, in the final stages of our recent strategic review, it became evident that we had to withdraw our previous revenue guidance of $70 million in 2026 and the corresponding path to cash flow breakeven in 2027. And in order to meet the market expectation in a timely manner, we had to accelerate the publication. That's why we did it.

The main and key and underlying reason of the delay is basically the delayed industrial ramp and commercialization of our technology with our key OEM customers. And we have to say that the company has underestimated the complexity and the amount of time required in order for very large and complex OEM to integrate our technology into their manufacturing processes, okay? So we have to acknowledge that the level of integration and qualification has taken much longer than expected to translate into a commercial ramp.

So I joined in last October, so I've been with the company for a few months. I spent considerable time with customers. I'm -- so I have 2 key takeaways from that. One, the long-term opportunity is intact for Norsk Titanium. RPD is a technology that will be integrated in key and large OEM manufacturing processes in aerospace and defense. I'm very positive on that. But on the other hand, the complexity of the commercial part of it certainly has to be considered. So now how are we going to work on this and how we are going to course-correct this.

So we have been working on redefining our operating model. Our operating model is going to be an operating model revolving around customers and with customer at the center of it. And we have developed a commercially grounded business plan with a very commercially based view of our business. We are going to continue to focus on our core. So Aerostructures, Defense and Engines, which has been added to the original core.

We are going to deploy a dedicated team to work on short-cycle opportunities, which we have many, and we need to make sure that we can win those opportunities to improve our short and medium term.

And third and most -- let's say, most important of all, we are also going to launch what we named the RPD Ecosystem strategy, which calls for deploying our equipment and license our technology with selected and key OEMs.

Now I'm sure you all have read the update that we provided and we published on our website. So let's open the floor for question and answers. Joachim?

[Operator Instructions]Okay. We have received a few questions in the chat from Sarah. We can start with that.

In November, you announced advanced negotiations with the DoD ICAM Office for a funded qualification program. Today, you highlighted 2 multiyear development programs for the U.S. Navy and Air Force. Can you clarify if these Navy and Air Force programs are the same as the ICAM initiative? Or are they separate opportunities?

Yes. So they are the same, and we are in the very final stage of the negotiation. We suffered a couple of delays. One was the government shutdown in the U.S. that delayed, let's say, the finalization and the formalization of certain contracts. We also have now an auditor in the middle of the paperwork to complete this. But these 2 development programs are there and will be finalized in the coming months. Joachim?

Then following on with a question from Kim. With regard to Ponte's statement on his LinkedIn post from 18th December, stay tuned, we expect several groundbreaking announcements in early 2026. Can you please elaborate on the statement and if it's still valid?

It is still valid. We still expect numerous updates coming forward. As I said in my opening remarks, I remain very confident on our long-term outlook. And this is grounded on our customer pool for the technology. So we continue to work with main, large OEM, and we are following the road maps, and we are enabling their industrialization. So yes, you -- in the coming months, for sure, there will be news that will support our outlook.

Then a question from [ Herman Olsen ]. Can you say anything regarding Airbus third wave and how many parts are now in serial production?

Yes. So we are not going to refer to the number of parts in serial production going forward. We learned from the past, so we're going to stop being that specific. However, I can say that we are working hand-in-hand with Airbus on a number of fronts. Of course, Wave 3 and conversion into parts is one of them. And in the coming months, I expect this to start the ramp, which is going to help us already starting in 2026 and going forward. All the work that we are doing with Airbus is still very much alive. Nothing has changed. Actually, it's expanding into many different directions. Ashar?

Yes. Thank you, Fabrizio. Parts in production. So a couple of reasons to kind of not guide towards the number of parts in serial production. All the business that we have earned so far, none of it has been lost. I just want to reassure that.

Secondly, there is a mix of development revenue and parts revenue, parts production revenue that continues to be a mix. Therefore, what we've seen is that the parts transitioning to serial production don't indicate or do not provide a leading indicator into revenue at this time. They -- at a certain maturity level, they -- we may mature to where we can provide that type of a leading indicator. But for now, we're suspending providing that as a KPI.

Then another question from [ Sarah Kay ]. In August, you stated your $70 million target for 2026 was a bottom-up estimate anchored in firm contracts and advanced commercial discussions across your 3 main sectors. Despite retracting guidance today, do you still expect a meaningful portion of this pipeline to transition to serial production this year since aerospace was estimated to be 40% of the total.

Ashar, do you want to take that?

Yes, I can start with the response on that. The revenue guidance that we've retracted, those were ongoing discussions with our major OEM customers that we're working with. Those opportunities are still there. We haven't -- like I said, we haven't lost the business. We haven't lost opportunity. The market continues to grow. There continues to be customer pull from the same customers that we have forecast in that.

So when we say grounded, they were grounded in our discussions with those specific OEMs. That business is still available. The ramp into that business and the timing of that has now become less clear to us, whereas where we thought that timing, the timing was more understood. So what Fabrizio mentioned earlier is trying to work with those same customers and align the timing of how that revenue comes together. Fabrizio, do you have anything to add to that?

The only thing I want to add is that I do expect the industrialization and the corresponding commercial ramp to start this year. The question was about how meaningful this is going to be. This is exactly what is difficult to predict at this point in time. So we need to work with our customers. We will do our best to maximize and go after the biggest number of parts possible, and we're going to work very, very hard in the coming months in order for that to happen. I expect this to start this year. How meaningful that is going to be is difficult to predict at this point in time.

Then another question from Sarah about defense. With the capability assessments from major U.S. defense contractors to be finalized in the next weeks and Q1, do these represent entirely new customer relationships? Or are they existing partners like, for example, Northrop Grumman and General Atomics?

It's actually a mix. So we have -- no, we've been working with the 4 main primes for many, many years. And this development is coming to fruition. So all the work that we've been doing with the main 4 primes is coming to fruition.

But we also see new customers coming on board. There is a very, very strong interest from the Navy in the U.S., but also, we see from defense in Europe. So we have more -- let's say, this is broadening, and we are now working on a couple of very important opportunities that we are going to translate into programs and then into sales.

So the defense part is becoming very important. This is driven, of course, by geopolitics, but also by the nature of our technology. So on the one hand, we are able to replace forged parts, which right now are in very short supply and increase in price. And on the other hand, we can deploy our technology wherever we want to, okay?

So we have production available in Europe. We have production available in North America and additive manufacturing is, by definition, deployable wherever it is needed.

So of course, Norsk Titanium and our specific technology is a perfect enabler to some of the challenges -- to win some of the challenges that the defense industry has at this point in time. We are very, very buoyant about this segment.

Next, we have a question from Herman Olsen. Regarding capital raise, is it planned for 2026 first half or second half?

The timing is not determined yet. So we are -- obviously, we've mentioned in the report that we are looking towards raising additional capital during the year. I think the timing will really depend on how mature and how our customer relationships develop over the year. This -- we've obviously discussed this with our Board, with our main shareholders, and they remain supportive of the outlook of the business, and they remain supportive of determining when the right time would be for the capital raise.

Another question from Sarah. Beyond shortening future adoption cycles, did the recent MMPDS approval unlock a material portion of your existing parts pipeline in industrial sector that was waiting on specific validation to enter serial production?

Can you repeat the question? I'm not sure I understand the question.

Beyond shortening future adoption cycles, did the recent MMPDS approval unlock a material portion of your existing parts pipeline in industrial sector that was waiting on specific validation to enter serial production?

Right. So I'll try to provide a statement here that then if you can refine the question, it would be great. So the MMPDS listing of RPD is, of course, a very important milestone for Norsk Titanium. We are basically the only additive manufacturing technology included in the Handbook. The Handbook is the Bible used by aerospace engineers in aerospace and in defense to basically design parts.

So this is going to -- is providing authority to RPD and numbers to engineers to design new parts. And we expect that the inclusion of RPD in the MMPDS will enable a number of parts to be designed on the technology and then, of course, flow to Norsk Titanium for commercialization.

Another question from Herman Olsen. Airbus posted on LinkedIn last month, Airbus has begun serial production of large titanium 3D printed parts for the A350 program, focusing on the cargo door surround area. Is this Norsk Titanium or are they working with other titanium partners?

Yes, there is an important -- let's say that we are a big part of that. I mean it's yes. So we are included in that application. And if you look at that web story, we are featured in the web story. So I think you can draw your own conclusion on how important is Norsk Titanium into that program. This also gives you an idea on the traction that there still is from Airbus on additive manufacturing and specifically on DED, okay? So we are very, very excited about that.

So there was a previous question asking what we expect. So we -- I expect to be at a tipping point. And now we need to push further in order to make sure that we help our customers to fully industrialize the technology and we push for the commercial ramp. That's what we need to do in the coming 2, 3 years.

Yes. And in general, I think Norsk Titanium is the only 3D printing or additive manufacturing technology that is qualified for structural titanium parts on aircrafts. So I think it's easy to draw that conclusion.

Next, we have a question from [ Jorgen Haugen ]. Earlier communications suggested that Wave 3 would be fully implemented in 2025 and that meaningful developments could occur in early 2026. The latest update suggests a longer time line and tighter liquidity. What has changed since those earlier expectations? And how should investors interpret the credibility of the current outlook? Also, could you clarify the context of the Airbus related LinkedIn post in February?

What's that question, Joachim? Can you please repeat -- can you repeat the last part?

Yes. The last part of the question was about the clarification around the context of the Airbus-related LinkedIn post in February. But the broader question is also about how investors should interpret the credibility of the current outlook given the persisting delays.

Yes. So I think in our statement, we fully acknowledge that we didn't read the situation correctly. Certainly, we realize that this is a very complex customer and OEM structure and it requires quite a bit of work in order to accomplish what we need to accomplish.

We are changing the way we work with customers. We used to work just with the engineers at Airbus. At this point in time, we are working with the entire spectrum of stakeholders, so engineers, of course, but also procurement, program, leadership. So it's really a fully-fledged approach, the one we have with Airbus.

As I said in my opening statement, and we reported on the update, we have now developed a commercially grounded business plan. That's the reason why I was brought in. I'm a commercially grounded person and I look at things in a very commercial way and through a commercial lens.

I believe that we have work to do, and we have certainly a complex road ahead, but I'm very, very positive that the outlook is positive. And if we continue to go through the -- all the critical steps that are required and we work hand in hand with our customers, very large OEM in aerospace and defense, things will start to happen, okay? So we are in a tipping point. And the next 2 years will be very, very critical for us in order to take Norsk Titanium in a very different place. I'm very confident.

Yes. And in addition, in terms of understanding the customer, one thing that we have done is obviously retracted our guidance. But we're also taking -- looking at our strategy and our operating model. And as Fabrizio said, we have established a kind of a cross-functional connection points with the complex nature of our customers to develop those road maps. So at this time, we're not guiding the market to revenue is precisely for that reason is because it's kind of -- at this point in time, it's hard for us to give a credible number and when these things come home. We do know that there is -- continues to be strong connections to us and that the reason we've been able to access cross-functional teams is because there continues to be a pull from the customer to mature Norsk Titanium into their production systems.

But again, as we acknowledge, we've got the timing wrong in the past. So I think we're taking a little bit more prudent approach here to come up with a forecast after we have completed all that work with our customers.

We will pause briefly to see if there are any further questions. [Operator Instructions] One question here. The company need to acquire and report achieved contracts or actual recurring revenues. Will this new commercial business plan include a broader and more aggressive approach to other segments, for instance, oil, gas, transport or other?

Yes, it will. So as I said at the beginning and also, we reported in the update, we're going to remain focused on the core, and core for us means Aerostructures, Engines and Defense. That will not go away.

However, we have a number of opportunities that will always flow through our door and we need to get better at winning those opportunities. These opportunities come from many different industries. It can be energy, can be semiconductor, can be urban air mobility, also in aerospace. So there are a number of opportunities that continuously flow in Norsk Titanium. And we are going to work in a very different way in order to win those opportunities. I expect those opportunities to become meaningful already this year and in the coming years.

Yes. And with regards to the reporting question on contracts and actual recurring revenues, we'll continue to report the way we are reporting. And any material contracts, of course, we will report to the market as they are executed.

Great. That also provided a response to Herman Olsen's questions about if they can expect any stock news between the quarterly reports as larger new deals are signed.

Another question here from Lars. Please be concrete on the question if Airbus is working with other titanium partners.

That's certainly a possibility. I mean I think it's difficult for us to say who they are working with. We can say that we are certainly one of a prime technology partner. Norsk Titanium enjoys a very important position at Airbus from the technical standpoint. I think we can fairly say that. And we are committed to go and compete from the technical standpoint with whoever is going to be there.

I mean we are very, very confident on the value of our technology. This is confirmed by Airbus and by also other OEMs. So we are very, very strong -- we have a very strong foundation from the technology standpoint. I mean our challenge is not the technology. Our challenge is that we are developing this technology into very complex road maps, okay? So that's the biggest challenge that we currently have.

We can't comment on who Airbus is working with in terms of other titanium partners. But what we do know is currently, we're the baseline in the market, right? We enjoy a lead time. We enjoy a control over our specification that we have developed for our process. So nobody else owns our process. We have our process. We have our specification that comes out of our process.

So -- and our specification meets forging equivalent to current forging requirements. So it's a very high bar that we've established and we continue to enjoy that position with Airbus. And if you look at Airbus' road map that they put out last year in their presentation, we are part of that road map, and that's where it starts.

Yes. The other thing I want to add is that this is expanding also to other lead OEMs in Europe and North America. So we don't stop at Airbus. There are a number of very important OEMs in aerostructures and in engines that we are working with at the same level as Airbus. So we are diversifying our developments also outside of Airbus. So it's not going to be just Airbus. It's going to be Airbus and a few other very important large OEMs.

Then we'll take one final question. Has Airbus provided an expected time line for the Wave 3 order? Does NTI have deliverables or key milestones they need to reach before the third order is granted?

So okay, that's exactly the challenge that we have. I mean Airbus doesn't work that way. They don't communicate that way. We are -- there are clear milestones that we are working towards. Some, we have to deliver. Some, Airbus has to deliver. So we'll see in the coming weeks how that is going to develop.

I want to say that we have -- and this is also different from the past. We have a very structured project charter with key milestones that are agreed and shared with the customer, with Airbus and the other large OEMs. That's a very different way of working.

So agreeing with customers on key targets and related milestones is a different way of working. And this is going to provide us with a little bit more clarity on how this is going to develop. But it's fair to say that Airbus unfortunately, doesn't work that way. They don't commit to certain road maps and this also is what is forcing us to retract our revenue forecast.

Thank you. And by that, we will conclude today's Q&A session. Thank you to everyone for your questions and for joining us this morning. And thank you for Fabrizio and Ashar.

As mentioned in the operational update, the company will host a more detailed presentation and webcast on March 4 in Oslo. For those wishing to attend virtually or in person, please refer to the details in the provided release. Thank you all, and have a good day.

Thank you, Joachim.

Thank you, everybody.

Thank you, everybody.

Bye-bye.

Good morning, everyone. My name is John Andersen. I'm the Chairman of the Board of Norsk Titanium, and welcome to this third quarter operational update. I know that you are all eager to hear from our new CEO, Fabrizio Ponte. But since Fabrizio joined us only 4 weeks ago on October 6, we thought it was appropriate that I make some introduction on our performance in the third quarter before leaving the floor to him. We also have online our CFO, Ashar Ashary. Ashar is unfortunately unable to travel due to a back injury, but he will be able to participate in the Q&A session.

So just a quick reminder of our position in the additive manufacturing space. Norsk Titanium has a proprietary technology validated by the OEMs with large installed capacity. This is our starting point. We have a significant value proposition, and we do have manufacturing capacity installed and ready to serve our customers. We operate in what we would describe as a large market. As of today, we estimate the addressable market to be at USD 7 billion. Now you might argue that, that's quite a bit to work with in itself. But clearly, this market will continue to grow over time for 2 reasons.

First of all, we see increasing build rate in our core markets, first and foremost, aerospace, defense, and then on the other hand, we continue to expand on our capabilities, so we will be able to serve a growing proportion of the market as we continue to expand on these capabilities, both in part size and into new metals. And finally, we have an established customer base. We have frame agreements with the leading OEMs. And our focus now is really to make sure that we can grow the business under these framework agreements, the existing ones and the ones to come.

So this is really our starting point, a qualified technology, a certified technology, installed capacity, it's all about commercial execution, and you will hear more about that later in the presentation. What happened in the third quarter? Well, first and foremost, we did transition 2 additional industrial parts into serial production. I openly admit that this was less than we expected and less than we hoped for. It doesn't mean that opportunities have disappeared. But as you have seen before, it do take time to convert these opportunities into serial production.

So what happened in addition? First of all, we continued to progress our discussions with Airbus. These are discussions in the short term about the third production order that we know many are following closely and waiting for. These discussions continue to progress with a wide range of stakeholders in Airbus, and Fabrizio will speak in somewhat more detail about that later. In addition, we also work with Airbus under a longer-term road map. And when Fabrizio talks about that later, please have a look at how the interaction between Airbus and ourselves map to the road map that Airbus has announced publicly about how they intend to expand the utilization of additive manufacturing.

Then we had strong -- then we see strong momentum in defense, which is no surprise, I think, to -- for people following that sector today. Governments increased their spending in defense and time is of essence for obvious reasons. We have an ongoing discussion with ICAM, which is the Innovation Capability and Modernization Office under the Department of Defense. They have named our technology a key enabler to be able to drive increased capacity for defense products across a number of domains in the U.S. So we are hopeful that this will increase our revenues short term because these are paid development activities.

And at the end of this development time line, 18 months, there will be increased serial production. And this is a good illustration of what defense offers, right? They offer funded development activities as well as significant parts manufacturing opportunities. Then we continue to expand in industrial markets. This is also something that Fabrizio will talk a bit more about later. But of course, the 2 parts that I mentioned is targeted in those specific markets. We did raise $22 million to strengthen our balance sheet and to strengthen our financial position first in a private placement and then in a repair issue closely thereafter.

Under the same heading, we have also, after having made initial investments in the first half to make sure that we have the capabilities needed to convince our customers, we have also then taken a more careful approach to our cash burn in the third quarter, and you should expect those activities also to continue to make sure that our costs are aligned with our revenue development. Clearly, as I started with, our #1 challenge, our #1 priority is to convert our technology position, our industrial position into the commercial opportunities.

And that's an excellent segue into my introduction of Fabrizio Ponte. Why did we feel that it -- that he had the right profile to lead this company forward? It's about commercial execution. It's about operational readiness. It's about financial discipline. And you will hear now from Fabrizio in his own words, how he feels that his background makes him very well equipped to take on this challenge going forward. So with that, Fabrizio, please.

Thank you, John. All Right. So maybe I take control. Can you hear me okay? So good morning, everybody. I'm Fabrizio Ponte. I'm the new CEO of Norsk Titanium. And I can tell you, I'm really excited to be here in Oslo and to have joined Norsk Titanium. A little bit about my background. I've been -- I spent the last 30 years replacing metal with very special polymers, okay? And now I made a jump on the dark side, joining a very special company in very special processes, making very special metal parts, replacing forgers, okay? So I know the drill. I know what it takes to get from point A to point B and push it across the tipping point.

Why am I excited about Norsk Titanium? I mean, first and foremost is the technology. I mean, it's a game changer. From the outside, before joining, I studied a lot. I saw the potential for this technology. But then as soon as I joined, I started to hear about the pull that we have from the market, aerospace structures, defense and many other industries. And this gives me really, really a lot of confidence for the future of Norsk Titanium. What do I bring to the table? As I said, I've been working on replacing metal. So I know how to set up operation, scale operation and work with the markets, multiple markets in order to make technological changes.

And this is very, very exciting to me. I think this is what I bring to Norsk. And I think with all the expertise that we have and the commercial expertise that I bring, we are going to be very, very successful in the coming years. As a leader of Norsk Titanium, I mean, I'd like to share a little bit what I believe. And first of all, quality and safety for me are nonnegotiable cultural traits. It is important that especially when you operate in aerospace and when you operate in defense, quality is nonnegotiable, okay? So you need to make sure that everything you do meets the standards of your customers.

So this is going to -- I think it is, but it will remain a very important feature of Norsk Titanium. The second most important thing that is always in my head are customers. I have, I say, customer obsession. I really believe on working and everything has to be done with the customer in mind. I mean we exist because we have customers. So we need to serve our customers and working with them, gaining their trust and developing partnership is very important, especially in markets like this, where it takes time to develop and you need to have working in partnership together because together, you're going to cross the finish line.

I believe on accountability. I believe in team play, but at the same time, I believe in accountability. So we are going to set clear targets that we're going to work very hard to deliver. I really believe that we have the right expertise in place. I saw that in my first month in the job. And this gives me also a lot of confidence. All right. So that's a little bit about me and a little bit about why am -- I joined Norsk Titanium and what I believe in. What is going to happen -- what has happened in the first 30 days? What is going to happen in the next 60 days?

We had a plan for my first 3 months. No questions about it. There is a lot that I need to learn. As I said, I come from a very similar background, specialty products, replacing technologies and making advances in the market and scaling operation. But at the same time, titanium and special alloys are different than polymers. So of course, I need to learn. And the first -- and I'm really trying to be a sponge. I've been working very hard in the first 30 days internally. I'll continue to do that in the coming months. I mean, I believe I will learn from my colleagues and my team at Norsk, but I also will learn from customers.

And I can tell you, as soon as I'm finished here in Norway, next week, my tour with customers will start with a number of very important discussion already lineup. This will help me to understand where we are, what we do and what our customers think of Norsk Titanium and what is in the future. Now what is the plan here? The plan is laid out across 3 different dimensions. Number one is commercial execution. I'm lucky enough to have joined Norsk Titanium with a rich pipeline of work. So it's not that I'm starting from scratch. So Norsk has been around for quite some time and advanced the technology and the customer relationship quite a bit.

So I take advantage of all that. But I'm really trying to understand and digest what really our status is and what is going to take in order to really go across the finish line from the commercial standpoint. To me, that's my priority #1 in the first 3 months. In parallel, I'm working with operation. We want to be ready when we will need to serve large volumes with our operation. And scaling is always a big challenge. You never know what is going to happen. I mean -- but you need to be prepared, you need to get to a certain level. And then when it's going to hit, you need to know what the plan is and what to do. So I'm working with my operation to understand the strong points, the weak points and work towards making sure that we are ready when we need to be ready, which is going to happen very, very soon.

Last but not least is financial discipline, okay? We have a finite funds available, and we know that we need to work with that in mind. So it is important that the entire company is aware of that and it works with the right discipline from the financial and the cash standpoint. So this is critical, and I'm positive we are in the right direction here. All right. So let's jump into the business. And I'll do my best to provide you an update. Please -- and I know that I can use this excuse only once, so I'm using it today. So -- but I've been with the company for 30 days now. It's actually the 6th. I mean, it's 1 month today, okay? So it's my birthday today, 1 month with the company.

But I'll do my best to provide you an update of what happened in quarter 3 and a little bit of an outlook for the future. And -- okay, I'd like to say that quite a bit happened, okay? So of course, we continue to deliver parts to Boeing and Airbus. It's not huge, as you saw from the numbers. But nevertheless, we are making parts that are currently flying on different airplanes. So that's a very good starting point. But what I think made a difference in this quarter is really the ongoing discussion that we had with Airbus. This is really I'd like to think, a partnership between Norsk Titanium and Airbus. Airbus is focused on implementing additive manufacturing within their processes.

They see additive manufacturing as a key enabler to the next-generation airplane. And they know that in order to get there, they need to translate parts now in order to be ready. And this is where Norsk Titanium comes into play. So Norsk Titanium is one of the key players in the technology at Airbus. We have -- you can see here the road map that Airbus has developed, and you can recognize some of our parts already there. So this is very comforting. You can see our position with Airbus. I don't have to explain that to you. Very -- I think we've been very active and with a lot of intense discussion, you understand that commercial aerospace is a very regulated market. You need to go through the steps and the steps are controlled by the OEM.

Our job is to support them, help them, push them sometimes to stay at target. But these discussions are ongoing on a daily basis, okay? So next week, one of my first stop is going to be exactly with these guys. And because I look at Airbus as a very strategic and relevant customer and opportunity, which is going to really unlock the potential for us. What is even more remarkable is, as I said, the Airbus is looking into using additive manufacturing as a pivotal technology for the future. There are a lot of discussion on how Norsk Titanium can support Airbus to do that. This really goes beyond the third production order that John referenced.

So of course, the third production order is the step that is going to take us over there. But even more exciting to me for the future is the fact that they want to work with us in order to define the standards of additive manufacturing. So that's very comforting and very exciting for me as a CEO and for Norsk Titanium as a whole. Last but not least, also to help you to understand how we work in the industry and what we need to do in order to really cross the finish line. I think this was a couple of months ago, we organized a very strategically important meeting with all the regulators, North American and European and Airbus.

And altogether around the table, we discussed how to sort everything out and how to make progress towards part manufacturing with our technology and in additive manufacturing. So I think this is very unique when a company is able to bring around the table the key stakeholders that are going to make the decisions and define plans with key milestones in order to move forward is really a remarkable thing. I'm very excited about commercial aircraft. I think I'm excited about structures. I'm excited about other application we are working on like in engines and other parts in the aerospace. It's very, very good, okay? Second, defense.

Defense is changing. It's a new industry. I mean it used to be as conservative and as regulated as aerospace. Now the situation is, because of geopolitical drivers, is a little bit different. So the industry is trying to acquire speed. The industry understands the need to change the way it makes parts and develops technologies that will make parts faster, stronger and in a much larger scale. We are an enabler to that, okay? And as John mentioned, we've been selected by ICAM, so the Innovation Capability and Modernization Program within DoD on 18 months program to validate our technology. So they're going to work in order to qualify us and validate us.

When they qualify the technology, then to go and make parts, it becomes much, much easier, okay? So we are going to work very hard in order to succeed in these 18 months. And when we are at the end of the program -- and by the way, we are going to work with a number of primes there. We're not just there by ourselves. Then we're going to go and start to enable part manufacturing in a number of, let's say, sectors within the defense, air, land, sea, these are all targets that we're going to go for. And I think this is going to provide quite a bit of surprise -- positive surprises to us. Number three is all the industrial part. So we have a good starting point.

We are already in semiconductor. I've been operating in semiconductor in a previous life. This is an important part. It is a wafer carrier. It goes to one of the -- if not, is one of the most important OEMs in the semiconductor industry. I'm very excited about this. They had a slowdown. Now things are picking up again. I'm going to be meeting these guys next week, too. And I think semiconductor is going to be also an opportunity. It's the first, let's say, industrial application that we are in production and gives me comfort that our technology has a play outside of just pure aerospace.

As you read from the summary, we also converted other 2 parts in 2 other industrial applications. So all this tells me that we are on the right track. We -- before my time, so I will enjoy that, too, we set up -- we have started to set up a commercial team. We have dedicated and focused sales and [ biz ] development managers working in industrial. We mapped the entire industry. We understand what the priorities are. And we have a number of focused discussion with key OEMs in a number of industries, energy, again, semiconductor, oil and gas and a few others. So this will bring quite a bit of diversification.

As I said, we've been all in aerospace, which is heavily regulated with a long development cycle for quite some time. All these markets are less regulated than that. There are going to be faster cycle, and I think they're going to bring opportunities in a shorter period of time and make up to the delays that oftentimes we have to bear within the aerospace industry. So to conclude, okay? So I'm the new CEO in Norsk Titanium. I'm very excited to be here. I like to believe I'm really the right person for this very moment in Norsk Titanium. I come exactly in the time where we need to go across -- we need to push it a little bit, go across the tipping point and then really start to scale it, and I know how to do that.

So I'm very excited about this. I think I worked in the last 30 years to get to this opportunity. So I really think that my background helped me to be here, and I'm really energized to go after this challenge and take Norsk Titanium to the next level. I see this as the opportunity of my lifetime. We are really focused across 3 different work streams, okay? Commercial, operation and financial. Commercial to me, I always say starts first, we need to make sure that we secure our revenues, profitable revenues. So we need to -- in the next months and years, we need to work with our customers in order to secure our revenues and make the jump that Norsk Titanium needs to make.

This is the priority #1. Everything else follows, okay? Operation, being ready in an efficient way, but also being able to scale it. And in additive manufacturing, it's slightly different than in other industries. So you scale in a different way that, for instance, you scale in the polymer industry, okay? But you need to be sure that you do that ahead of time. You cannot be caught off guard when you are there. And then financial discipline, very important across the entire industry. Finally, obviously, modest near-term revenue. I mean you saw that this year as certainly we cannot claim a victory and -- but having said that, we made solid steps towards success.

I'm very positive about that. I mean when people ask me, what you see. And what I see is I'm very confident about the future and the outlook. I have no doubts about that. So I always say it's not a matter of if, but it's a matter of when. My job is to make sure that this when comes as fast as possible, and I will work diligently and with a lot of energy in order to make sure that, that happens. Thank you for today. I really hope this was informative. I hope you know me a little bit better. You started to know me a little bit better. I think in the coming quarters, this will continue, and we're going to get to know each other and work together for the future and to make Norsk Titanium very successful. Thank you, everybody.

Thank you, Fabrizio and John. I think we'll move over to the Q&A section. So we'll start with the audience here in Oslo. Please raise your hand if you have any questions. And please state your name before you ask the question.

[ Preben Rasch-Olsen ]. I have actually 3 questions. I hope that's okay. A few of them should be pretty easy. First, on the outlook, no mentioning of any revenue targets next year or 3 years from now. Are you finally done with that stupid guidance?

I may take this one. So okay. You say it's a stupid guidance, so I accept your constructive feedback. I've been here for 4 weeks, okay? So I'm working to understand exactly what we have in place, what our customers are saying and expecting from us. So very difficult for me to give you a firm feedback on this. I mean I'll work another couple of months. So in the next review, which is going to happen early next year, I mean, we're going to talk about that. But yes, I mean, it's -- maybe we will stop the stupid guidance...

I think that's smart. What you could guide on and would be interesting to hear is a realistic cash burn in the first half of '26. What sort of the level you can reach and should reach?

So also here, I mean, we are -- okay, we're already reducing this. I mean we were successful at going from $2.9 million to $2.4 million. Now we want to go at USD $2 million. But certainly, before the end of the year, I want to be in the position to set a target that we can absolutely achieve, which is not going to go up, but it's going to go down. What is achievable? I cannot tell you right now. But what I can tell you that I'm committed to define a very clear target that we're going to work on and deliver on an average for next year. But this is absolutely, as I said here, one of our targets. I mean we know that we need to reduce our cash burn rate, and we're going to do it, okay, one way or another one.

And last one is really on the aerospace. My understanding was that you sort of was done with all the approvals from the regulators. But you were saying you're sitting down with Airbus and the regulator...

Okay. I hear too. And you can correct me if I say something stupid, okay, [ Preben ]. So okay, It's -- okay, first of all, you know that there is a government shutdown in the U.S. This is impacting us a little bit. So right now, actually, everything is blocked and standing still until they reopen, the government. I mean they cannot progress. Aligning the FAA and EASA is not easy work, and they need to be aligned for us to be approved to go forward. So everything is done.

We need to complete the paperwork. And this did not happen for multiple reasons. Hence, we decided to take the bull from the horn. We brought everybody around the table to do exactly that. This also says that, hey, we are not sitting and waiting hoping that it's going to happen. We are actively trying our best to influence and progress, which is not easy work, believe me.

So if I may add to what Fabrizio said because this is also a legacy issue, right? So you're absolutely right, [ Preben ]. The fundamental approvals, the fundamental certification is obviously there. But if you look at Airbus road map and what they want to do going forward, we cannot continue to work in the same way. We cannot continue to approve additive manufacturing parts with a forging legacy. And the regulators agree, and Airbus agrees. So this was more about how can we streamline processes going forward, how can we ensure information flow, how can we have an approach that actually is based on the fundamentals of additive manufacturing, right, not to reopen the certification process, but to make things more efficient going forward.

Because if you look at the road map that Airbus has been quite vocal about, it requires a change also on the regulator side. And it's a bit unusual, right, that both the regulators sit down, as Fabrizio said, with a company like ours to actually talk about -- I mean, it's like the regulators would actually accept that we are really the point of gravity in the additive manufacturing space. We have gone through this cycle. There are no other additive manufacturing companies that have gone through this cycle. So we put them together in the same room, which they don't do often. And then we can talk about how to make this efficient going forward because otherwise, there is a risk that we will have stumbling blocks as we try to help Airbus implement their road map. That's how to think about it.

Any more questions in the audience? Okay. We'll move over to the web.

With delay in revenues, what operational changes have been made to ensure better execution as revenue scales?

So maybe I can start because this is a bit of legacy. So -- and this ties in with what we discussed earlier about burn rate, right? So we did make certain investments, which we also described in our third quarter update. We did make certain investments to be ready in the first half and hence, the slightly higher burn rate. Now we are in a position where we can manage that more carefully. So it goes to a number -- it goes to capacity, it goes to inventory.

It goes to securing downstream capacity, not only in-house capacity. It goes to how we approach testing. I mean it's a wide range of operational issues that we can fine-tune and therefore, on the one hand, still be a credible supplier because that's important, right? We don't want to do anything which would give our customers the possibility to escape, if you like. On the other hand, we also need to be mindful and disciplined in how we allocate capital.

And on the other hand, I mean, we put a lot of efforts also of creating a commercial force, which is now dedicated to bring home revenues. So go out, hunt, bring them back. And I think that's really also a big change, and we're going to continue down the line to become better and better at going out and bring back opportunities that we can serve, okay? So that's a very big change.

Good. And following up on the cash burn topic. Are you self-funded with your current cash balance?

Well, I don't think that we will change the messaging because this refers back to what we did in the first half report. And I think we have no other message at this point in time. You have heard Fabrizio and his plans for the next 60 days. I'm sure that we will look for ways to accelerate. We will look for ways to be more disciplined and not go back to any specific guidance different from what we have already given the market at this point in time.

How is the diversification progressing? And what are your strategic priorities going forward?

So I think it's progressing well. I mean we mapped -- we spent, I think, a month together with a consulting firm to put together a thorough map of the opportunities, matching our technology with the different industries. We were able to identify 3, 4 key industries. And now we are focusing on those industries, and we have a go-to-market strategy in every single one of them. We have a single point of accountability for every single industry, and we are now working already with customers on projects and on parts. So they bring back their ideas, their blueprints and we come back with the pricing. And so it's, I think, progressing well, and I'm very, very happy on the execution that we have. We're going to take this now forward in a step up in the coming months.

And if I may add to that, we have talked about this also historically. Our value proposition in aerospace and in aerostructures is pretty clear. I mean, the customers are complicated to navigate, as Fabrizio talked about, but our value proposition is pretty clear and our customers value the properties of the parts. In the industrial segment, it's a little bit different. So you need to be more selective in how you identify parts, right?

Because our value proposition could be a bit different from industry to industry and from customers to customers. So of course, the Hittech part, it's not like Hittech and the end customer necessarily need aerospace quality for the strength of the material, right? It's really our ability to reuse material consumption. That is the key value proposition that we offer on those particular products, right? So you have to be a bit more mindful about how you approach customer and therefore, this more deliberate approach that Fabrizio just described.

Yes. And then the positive thing is that, okay, in aerospace, the tailwinds are very clear, okay? So they need to increase their build rates. They need to change their production processes in order to meet those build rates, okay? This is very clear. I can tell you that we see tailwinds also in all those markets. I mean if you can be out there with a technology that is faster, that is more efficient, both from the raw material standpoint and the power consumption and you can work with customer in a nimble and quick way, then you have a very strong value proposition.

And we see that across multiple industries, and I'm positive we'll be able to identify the areas where we can be successful fairly quickly because these are, as I said, not as regulated as aerospace. So technically, the development cycle should be much faster. So still technical because we are not in the business, I always say, of potatoes and tomatoes. We are business on selling very technical parts that make a difference and oftentimes are structural. So you need to go through the steps, which is normal for specialty products. But then these are much faster than aerospace, where you have agencies that you need to convince OEMs that you need to align and so on and so forth.

Good. You began the year with an annual recurring revenue of $12 million. Year-to-date, you have revenue of $2.6 million. And then assuming Hittech represents just a small portion of the annual recurring revenue, what explains this deviation? And maybe also remind people on your definition of annual recurring revenue.

And maybe this is a question -- if Ashar is still online, maybe this is a question that you would like to address, Ashar?

Yes. Thank you. So yes, so the -- so let's start with the definition of annual recurring revenue. As you can see from this report in Q3 that we are not guiding to an annual recurring number anymore. Hittech is actually not a small portion of that $12.8 million number that we reported. It is actually quite a significant portion of that number because of 2 things. Volumes in 2024 were quite high. And it's a fairly large part as most of you have seen, and the dollar value of that large part was significant. So out of the $12.8 million, it was -- it was a significant -- it's a significant amount -- it was a significant amount of revenue.

In 2025, as we have explained in the first half report, that purchase order was dwindled down because of the demand that Hittech was seeing. We do intend to bring that -- we have a purchase order for later this -- in Q4 to deliver parts to Hittech, but it is not at the same level as we were delivering in 2024.

And then I think it's fair to say that we will continue to -- reflecting on the essence of the question, right, we will obviously continue to consider also in light of [ Preben's ] previously -- previous advice, what is the best way to guide forward and whether ARR is, in essence, a relevant concept for the industrial segment. I would still argue quite strongly that it's probably a relevant concept for the commercial aerospace segment. But as Fabrizio alluded to earlier, the industrial segment is more transactional in nature. So I think that, that is something that we need to consider in order to provide the best possible guidance to the market.

And then we have received quite a few questions regarding Boeing and the status of your current relationship and the outlook, I guess.

I can start. We are delivering parts to Boeing. We are working on a number of development, helping them to learn and improve their knowledge on additive manufacturing. We are going to increase our discussions with Boeing. I've been working with them for a long period of time in another technology. So I will -- I'm bringing that along.

I'm positive that there is opportunity there to go beyond the parts that we are already supplying and with all the developments that we have in place to have line of sight to part manufacturing, okay? So no doubt about it. Airbus is our current front-runner. Boeing is there, and I think there is opportunity to be -- to establish our presence very similarly to the one we have at Airbus.

And then we have received some questions regarding Q4 and maybe order intake. So could you comment on how sales will look in Q4 and maybe comment on budget flush within your defense customers?

So I think Q4 is going to be also along the line of Q3. We are working very diligently and very actively to bring things home and to make sure that we are prepared for 2026. Defense, as you know, we are delivering parts also in the defense industry to a number of primes. But the development here, this is not here, but the one I discussed before, it's a game changer, not only because they're going to work and validate our technology, but also from the revenue standpoint, as John said, is an important number for us for next year. So it's a multimillion dollar contract that is going to unlock opportunities for parts. So we are extremely excited about this.

And just to clarify, it's a multimillion dollar development contract, right, to establish the basis for parts manufacturing. So we don't know exactly how big that platform will be eventually. But I think it shows the commitment of the defense -- of the Department of Defense when they invest a few million dollars in developing this. And that makes us hopeful, as Fabrizio touched upon earlier about the potential there. That's not going to move the needle production-wise in the fourth quarter, just to make sure that we are on the same page.

But revenue-wise is relevant and...

But revenue-wise, it's relevant.

Then we have a question from [indiscernible]. Can you comment on the Airbus time line? And how do you expect the different steps from here to serial production and revenue recognition?

So -- okay. Again, difficult for me to provide point of contacts. I'm starting my customer journey at the end of the week. So I wish this question came a month from now. But I can tell you that there are very clear milestones that we know we need to hit, and we know how to get there. It's a matter now to work with Airbus to sort everything out and meet every single milestone in the next weeks/months, okay? So that's -- this is what is happening and where we are currently active.

Yes. And I would like to add to that. We are currently delivering Airbus parts that are in serial production. There are 12 part numbers that are in serial production with Airbus that we are delivering consistently right now and recognizing revenue.

What sales advantages does the September MMPDS provide?

First of all, right, this has been in the making for a while. And as you have seen throughout various updates, we have gone through qualification cycles with a number of OEMs, right? And the OEMs, they would typically have their own specification and their own framework and their own process to reach a qualified process or a qualified technology. With this particular standard, to simplify it, right, because MMPDS is a mouthful.

But with this particular standard, that allows companies that do not have their own specification, that do not have their own design process for approval to basically use the properties that are in this standard, documented by our technology. So we are the first additive manufacturing technology to go -- that will go into the standard. And this is the go-to book for a number of engineering environments that are looking to bring new technologies into their various industries. So I would say that this is probably particularly important in industrials and also to some extent, in defense. But it really...

I think also aerospace is critical. I'm personally very excited about this. I mean the MMPDS is the handbook when it comes to metal parts. So as John said, I think this is coming out officially in December. So in December, we are going to be listed officially. We know it's going to happen, but officially is going to come in December. And you're going to read a lot about that because I think we need to give a lot of visibility and make sure that the industry understand how relevant that is.

As John said, imagine, I mean, you are an engineer and now you're going to go to the handbook, the MMPDS, where you see that this technology is listed, validated, now you can make parts. And mechanical properties are in there, safety standards are in there. So it's really a game changer from my point of view. And then I think we need to make sure that we leverage that to expand our reach and make sure that engineers start to write specifications based on the standard we're going to have in this handbook.

Is it possible to leverage this before it gets released in December?

So it's November 6. So I think we have another 25 days to do that. But what I can tell you is that in anticipation of the release, we are going to work on really a communication campaign to make sure that this is highly visible. And this will be used in the future to make sure that everybody understands that we are listed in the handbook and this can be used to make parts. So it is a game changer also for our [ biz ] development people, okay, so that they can go along with this.

Okay. Last question from the web. With industrial market set to account for almost 50% of your, I guess, '26 target -- revenue target, what is the anticipated split among the different industrial segments like oil and gas, semiconductor and so on?

Yes. I think semiconductor will play an important part next year. This is already business that we have, and we are working to expand. We have 2 new parts which are in energy infrastructure. But I think the dominant part will be the semiconductor part.

Okay. Do we have any last questions from the audience? No? I think that concludes today's presentation. So I would like to thank Fabrizio and John and of course, everyone watching in and being here in person as well.

Thank you. Thank you very much.

Likewise, thank you.