Ovzon Stock

Welcome. SATCOM company Ovzon have reported for the second quarter of 2026, and we will now be giving a presentation of the results and the activities in the quarter.

After the presentation, there will be a Q&A session with equity analysts and viewers you can ask your questions in the live chat, and I'll raise as many as I can.

So now let me introduce the executive team of Ovzon's CEO, Per Noren; and CFO, Andre Lofgren. Nice to see you.

Nice to see you.

And Per, a very solid quarter. How do you summarize it?

Well, thank you, Mattias, and maybe good morning and good afternoon, depending on which time zone you're in, and thank you for joining us today.

To your question, the quarter. Well, maybe we start with the first slide then. I think the quarter is the headline that we chose for this quarter, very strong execution in a transforming market, and we'll get much deeper into that as we move through the presentation here.

But we had a very strong operational result and thereby a strong financial performance. Our revenue was SEK 245 million. That's a growth with 48% compared to the same quarter last year. EBITDA reached SEK 87 million. That's up 38% year-over-year, representing an EBITDA margin of 36%.

And the order book at the end of the quarter was SEK 688 million, and since then, we have also received 2 more orders at a value of SEK 76 million. And then lastly, but not least, cash flow from operating activities was at SEK 96 million.

And our net debt have been reduced to SEK 116 million. That's down almost SEK 0.5 billion from a year ago. So we're running a very, very healthy core business with solid margins.

And I think to summarize maybe this in the beginning before we go deeper into other things is we have very solid execution. I think that's very, very important. What to expect from us is to continue that solid execution, but also to continue to drive profitable growth as we've showed here. So with that, maybe 2 more comments in the introduction.

Order intake, I mean, we're very pleased with the quarter, but we're not fully satisfied with the order intake. That's the only backdrop that I see with the quarter. But we should note that we're also comparing with a quarter 2 in 2025 that had an order of SEK 1.6 billion.

So if you compare to that, of course, everything is lower than that in comparison in the history of our company. However, there is volatility among the quarters. And I'm very pleased that we got one order in the quarter and then 2 more new orders that we'll talk you through, Andre and I here after the quarter ended, but before this call here today.

So we're on the right path and the right track here. We'll take you through that as we go forward.

Let me then dive a little bit into the market circumstances that we are in and the world around us and what we are operating in and where our customers are. It's very clear to everyone, I assume that the world around us is changing and quite at a high pace and accelerating.

The same 3 forces that we discussed last quarter continue to reshape the strategic and tactical landscape. The geopolitical fragmentation, nation states are reassessing their dependencies, what's important, where to invest to have a secure and controlled society, obviously.

But also through alliances, I think the European countries are foremost focused a lot on NATO, and they're also focused a lot in investing in defense. And you can see that because of the tensions that is actually quite near the European continent and in the European continent with the war in Ukraine and the tensions in around Iran.

And that, in turn, then leads to sovereign and control of sovereignty and control of infrastructure. What that means and the word sovereignty has become very, I would say, very popular these days, but let me try to boil it down a little bit to what it means.

Each country needs to decide what's important to them in order to have a sustained society. That's what it means. And it needs infrastructure. Infrastructure could be energy, it could be telecommunications, it could be the banking system, food, whatever you might think it is for your country. And there's a lot of work and investments going into this. That in turn leads to that we have a society today that are very digitized.

And AI plays a huge role, data plays a huge role. And if you're going to have that digitized society, you need a very, very robust communications infrastructure, specifically for defense, national security and public safety, that is a must. It cannot be nice to have. It needs to be must-have. And we play a very essential role in that infrastructure, and it's become very apparent as of late, of course, with that.

You can also see that space gets a lot of more investments and attention. There are maybe 3 things I would point out that proves that a little bit. NASA's Artemis II sending humans around the moon for the first time since Apollo 17 in 1972. That's quite a long time since we did something similar.

And during the NATO Hawk meeting most recently in Ankara, Sweden and a few other Allied Nations created an initiative called HALO, which means that they integrate their sovereign national satellites into a system that's going to try to protect from adversaries, et cetera, et cetera. It's very interesting.

It drives investment and it drives the criticality of what we at Ovzon do as well. And last but not least, of course, the SpaceX IPO, which is in essence, a space, data and AI company.

So the ecosystem expands from just digital data, AI to include space as the backbone for all of this as well. So I think what we've talked about for a number of years since this is our business and our industry is now becoming a reality, and it drives a lot of investments and a lot of decisions by nations, allies, armed forces, emergency services, natural security and public safety.

So it's very clear that we are in an industry that is growing tremendously, that drives a lot of investments, and that is a necessity for society. And we believe that we've been right at it from the beginning, and now we're starting to see the opportunities arise from that as well as we continue to grow our business. Not so much. Most of you that follow us closely know about this, but I would like to underline again that our vision is greater than -- it's a great ambition, and it's also a vision that we feel very proud about.

It propels us and motivates us every day to connect and protect people, society and organizations for a safer world. It's important. We are the only vertically integrated satellite communications platform in the world today for defense, national security and public safety. We'll come back to that, obviously. And of course, our financial performance is very important. It's important to run a very healthy core business.

You can see that we've had quite a growth here the last couple of years under profitable forms. And we're now trending -- the rolling 12 months are trending towards SEK 985 million in revenue with very, very, very solid margins of approximately 42%.

Our order book, as I mentioned in the introduction, is on SEK 668 million. That is a healthy sign because we are delivering on that order book we had when the year started, which means we have an operational execution engine in the company.

However, we do want to add more orders in, so we increase that order book while we're delivering. That's going to make us very healthy and have a very long-term growth under profitable forms. Our value proposition has not changed. It will not change, but it will expand somewhat. We'll get into that when we talk a little bit about our new products and services.

But what's important to understand here is that while there are -- while our industry, the satellite communication industry is quite fragmented in terms of you have suppliers that build satellites, you have suppliers that launch satellites, you have suppliers that build terminals or antennas, you have suppliers that have gateways, et cetera.

We do most of this value chain ourselves, and we partner with a select few partners to really control the end-to-end communication platform that we provide. It is a turnkey solution from the user, whether it's a human on ground or a vessel in the air, on the ground or on the water, up to how we design networks and satellite systems for resilient communication, where our Ovzon 3 satellite is the crown jewel, of course, in that with the onboard processing capability that we'll come back to.

And of course, the single needs to go down somewhere. So that's where the gateways come into play. They are placed strategically around the world, but we don't need that many because we're a geostationary satellite communication platform. So we don't need that many, and we're making sure that we have redundancy in all of that and resiliency in it as well.

And then we manage this 24/7 around the world, depending on where our customers are. This is a very unique, very strong satellite communication platform that has no comparison in the world today. Just to look into potentially a little bit deeper into what this means. In the defense sector today, the leading aspect of what we're trying to achieve each country that has a defense armed forces is interoperability.

You need to have data at your fingertips, you need to have decision-making tools at your fingertips. You need to coordinate all assets that are in movement, and you need to do it both with manned and unmanned and stationary assets that you have to your disposal. It's basically a transformation from quite of a more hardware-driven defense system to a digitized AI data and connectivity-driven system. So you could think of this as the Internet of Things, but the battlefield of things where you need to have control of all the assets at the same time. That's what this means. We play straight into this. We provide the core capability that allows this integration and interoperability and multi-domain operation to happen.

So we feel very, very strongly that we are on a very strong path towards becoming a little bit more of a standard for it. Now it doesn't stop there because it also moves towards the society. If you think about back to our vision, a stronger and safer society, it connects all aspects of the society rather than just one piece at a time.

And I think this is a very important layer of thinking strategically for nations and allied as they think about how to secure society for the future. We'll come back to this in the future as well, but this is what we're striving towards becoming as well, the core asset and the core aspect of a communication platform for more aspects than defense, national security and public safety.

With that, I'm going to turn and focus a little bit towards the second quarter. I've already mentioned in the beginning, in the summary quite a bit about the quarter. But I think there are a few things that stand out. The launch of the Ovzon T8 terminal, which is our next-generation what's called On-The-Move mobile satellite terminal. It's quite important. I'll come back to a bit more details on what that means from a growth perspective for us.

We had a renewal, which is very important of SEK 74 million from a European NATO customer, representing quite an important step towards a broader satellite communication coalition across European NATO countries.

So think of it this way. Sovereignty might mean you control it all yourself. If you do it in coalition, you start to build networks and capabilities where you can share and use those aspects by still having the uniqueness that Ovzon offers.

So we are quite excited about the prospects of that expansion as well. And of course, it takes time. So we have accelerated stakeholder engagement. This is a relationship business as well. You might think that it's all about technology, it's all about space. It's all about something that is invisible in space.

But in the end, these are relationships. It's about trust. it's about educating one another, and it's about gearing the actual need of the users and the customers to the actual capabilities that we can provide. It takes time. It must take time. We're investing heavily in that. And these enduring relationships, I'm sure will bear fruit as we go forward.

So we have quite invested quite a lot of that in the first half of this year, and we'll continue to do so. And then after the end of the quarter, as I briefly mentioned initially, new orders from a new NATO customer, which is encouraging of SEK 40 million, confirming this communication platform we have across Allied Nations. And then, of course, the supplementary order we received yesterday from a current European customer for mobile satellite terminals, which is also underscoring then that our products out in the hands and on the assets of our customers are quite important for them, and they continue to renew orders and supplement their existing capabilities.

We launched the Ovzon T8 terminal, but we also delivered the first 10 prototypes, and that's in a period of 6 months. I'll come back to that in a minute. And then we also completed another Arctic Expedition. So why is this important? Well, Arctic is one of the most strategic areas in the world from a defense and national security and public safety perspective.

And it is quite a complex area, both to defend, surveil and manage from a countries and an allied like NATO's perspective. And we wanted to ensure that we have facts and data to make sure that we could firmly say that we can implement a communication platform now for the Arctic up until a certain point in the Arctic. Since the earth is round and our satellite is on 36,000 kilometers up, we cannot go all the way over the Arctic or we can go very, very far up around the Svalbard area.

So we actually have a capability today that can be used by our customers and current and future customers. So excited about that as well as we think that has a very strategic importance to our customers. So overall, I would say, strong quarter, strong execution, light on order intake early, strong in order intake late and at the beginning of the third quarter or just before this report actually and long, strong execution. Let's talk a little bit about the Ovzon T8.

It sounds like a product launch here. That is not the purpose of this description basically. But this is a breakthrough. This terminal, think of it as a mobile phone in a way. This terminal is the smallest that has ever been produced in terms of size, weight and power. It is the smallest. It can be mounted on unmanned vessels, whether they're in the air, on the ground or on the water. And because of its size, it opens up a whole new growth prospect for Ovzon.

And it will drive the need for much more satellite communication capability as well as for volume production. So we see this as a growth platform and an enabler for strong growth going forward. And it opens up the use cases that we've seen have actually been the most prominent one in the most geopolitically tense areas today. So it is a starting point of something we believe could be a Trojan horse for us as it comes to growth in essence.

So very proud of it. We have delivered the first 10 prototypes in less than 6 months from when the customer placed the order to where it is in the hands of the customer now. And there are tests going on, on those first 10. And then, of course, we have a number of deliveries to do for the rest of this year here, but we also believe that the test will be reference points for other types of customers. So very, very pleased with the team's both design, production and delivery of this.

Now before I hand over to Andre and the numbers, maybe a few words on the transformation that I've been touching on here a little bit and transformation of the market. In essence, we're seeing a change from the traditional defense procurements and needs of assets, et cetera, et cetera. They are still needed, but they are traditional. They're more hardware-related, ammunition related, et cetera, et cetera. But as I said, the world is transforming towards a more digitized defense, which requires cloud-based solutions. It requires a digital architecture. It requires very, very firm and solid communication.

It requires availability of data and AI at the edge basically. That's a whole new set of procurement capabilities that is changing how procurement organizations and defense organizations are buying things. Therefore, it takes time. We all that are in this ecosystem actually have to collaborate, educate and develop business models and procurement capabilities that are different than what they used to be. Therefore, some things when you get into longer-term contracts, you get into more sophisticated systems of systems. It takes time.

So what's important to mention here is that, yes, we're not satisfied with the order intake we had in the first quarter -- second quarter and the first half of the year, but we're not worried about it because we believe we're at the center point of the radar screen and working with those that need what we have, and we're working on ways to actually speed up this process. And it's important for those that procure our customers that they also do it thoroughly. So we have a joint responsibility to do that. And what's important for Ovzon is that we play the long game.

We have to stay in the game. We have to run a healthy core business, then we can invest in the capabilities needed and orders will come. But this transformation is real, and it's important to understand it because we play the long game. And with that, I think I'll hand it over to you, Andre, for the numbers.

Great. Thank you so much, Per. I'll do the numbers, and I'll start with the revenue. And as you probably know, our revenue is based on income from -- or delivery of terminals and also delivery of services.

And we have, as Per said in the beginning, have a pretty decent increase this quarter versus the same period last year. So it's up 48%. So the company is at a completely different level than it was a year ago. And to the right here, you also see the run rate of our service revenues also at completely different levels than a year ago. If we focus a bit on the first quarter and versus this quarter, the second quarter, you see there is a small drop in revenues. It's not from terminals that we actually are increasing versus last quarter. It's on services that we're slowing down slightly, and it has mainly to do what Per just described how the market is in a transition, and we are working to increase this ability to deliver more on services as well as orders are coming.

And as you've seen, we have actually booked a few already in this third quarter. So we are in a good spot, I would say. That's enough about revenue. I think we move over to profitability and EBITDA and EBIT. Here again, a strong increase versus last year, up 38% on EBITDA, but actually on EBIT, we're up 74%.

So a strong increase, I think we should be proud about that. And we're also maintaining margins basically versus 1 year ago. And here again, I would like to comment on the comparison this quarter to the previous quarter. You can see there is a reduction here and it's mainly based on 3 things. First off, we have a one-off impact of, you can say, cost periodization between the first 2 quarters. It has to do with timing of renewal of insurances. That's the only thing there. So that's a one-off. Otherwise, we have the lower revenue, but we are deliberately maintaining our satellite capacity in order to be able to grow, and that is, of course, costing us some, but that's an investment as we see it.

And we're also investing into way much more sales activities and also ramping up the sales and marketing organization, again, to win orders. That's why we are doing this. So I think this will pay off as we go along here. If we dive just slightly deeper into the P&L, we can also look at the profit for the period where we've done all the amortization and depreciation and also have had the ability to cover our interest costs.

You see here that it's actually up 86% versus last year. So SEK 41 million in profit for the quarter versus SEK 22 million then in the comparable period. And if you divide that number by the number of shares, that's an EPS of SEK 0.36 in this quarter. What's helping us here really is a lot is the refinancing that we did a couple of quarters ago, and we have way much lower interest cost now than what we've had in the past.

And worth mentioning, the Q4 in 2025 was a really strong quarter. We had a recognition of deferred tax assets there, which contributed a lot. And now we are recognizing those assets in these first 2 quarters. That's enough about profitability, I think. So let's move over to the cash flow and the balance sheet, which is really interesting and good numbers, I would say. No matter how you look at it, it's improving versus last year, definitely, it's SEK 96 million versus a negative SEK 69 million.

And also versus the previous quarter, it's much stronger. So we're really good at cash management and good in our contract negotiations, I must say. Then this has also led to -- we're doing some investments, but actually mainly into the Ovzon T8 terminal and also into our onboard processing capabilities which we constantly can develop and do investments into.

But with that said, we then have a free cash flow of SEK 66 million, which is way much better than the same period last year. And with that cash, we've been able then to amortize down our debt and also increase our cash position. So the net debt has really -- we really moved the needle on the debt situation in the company. So it's just north of SEK 100 million in net debt versus almost SEK 600 million a year ago. So I think we are in a really good position. And with that, I will hand it back to you, Per.

Thank you, Andre. Yes, we shouldn't dwell on this. This is a very solid presentation of our numbers and hopefully very clear to everyone that this is a very healthy core business.

As I said initially, our rolling 12-month revenue now stands at SEK 984 million and our EBITDA at SEK 407 million with a margin of 42%. So I think that shows that the core engine of this business is very, very solid. And we have to have that to play the long game, as I said before. But I think it's worth mentioning what Andre also talked about, the net debt that have been reduced by almost half, SEK 1 billion in 12 months.

And I repeat that's SEK 500 million. And for someone that has been in this business for quite a while and not have this position, I would say that you should view that key performance indicator as a very, very solid one for a healthy company.

And I think the order book provides solid revenue visibility into the second half of the year and beyond. And I think the numbers confirm that the strategy describes a scalable, profitable business with a strengthened balance sheet. So we're really well positioned for the next phase of growth as we see going forward.

And to wrap things up, what to expect as we move forward and what's the path forward here? Well, we have 3 main pillars that we measure ourselves on financial performance to deliver financial performance; secondly, ensure commercial success; and thirdly, actively scale up the company because that investment in a smart way needs to be taken a little bit before the commercial success arrives, et cetera, et cetera.

So this is a balance between these 3 pillars. They are all 3 very important. We don't want to disturb the healthy core business and the profitable growth that we're on. But at the same time, we need to fill up the order book to ensure commercial success. But that, in turn, requires an investment in an organization that are capable of dealing with multiple short, medium and lengthy sales cycles and procurement cycles with customers in both current markets and new markets, which we're doing right now.

And then last but not least, actively scaling up. And I think the Ovzon T8 terminal is a good example of that. That might be at volumes that we haven't seen before. So they need to go hand in hand, but you can't wait for the order to do it. You have to actually invest a little bit early. And Andre touched upon that when it came to our investments in the second quarter that we're in a smart way, I think investing in the right levers for us to be able to scale the company as we go forward.

So to summarize, I think the second quarter of 2025 is quite strong from an operational execution perspective. And the orders that came in late in the quarter and then early in this quarter, just before this webcast here today are a solid sign of that we're on the right path, and we're playing the long game. So I am not pleased with the order intake, but I am encouraged by that we do what we say and we say what we do.

And I think we have good visibility into the future. We're very excited about the continuation of the year, and we look forward to seeing everyone in new quarterly reports here during the year as well. So with that, I want to thank especially the employees, our people for an outstanding work with the execution.

And of course, our stakeholders, whether they are shareholders or partners for their continued trust and partnership and also for making sure that we can run this business and we can create an industrial champion out of Ovzon going forward. So with that, I'll turn it back to you, Mattias and go to questions and answers.

Thank you, Per and Andre, Industrial champion. That sounds really like something. So let's start off the Q&A by inviting Jacob Andersson, equity analyst at Danske Bank. Hello. Welcome, Jacob. Please go ahead with your questions.

I just have a few couple of questions. Starting off with the recent orders are quite short in duration. And I understand that annual budget cycles that they need to validate the service before committing longer term to drive that. But do you expect future orders and renewals to be longer in duration? And is that something you actively push for in your negotiations or...

Yes. Thank you, Jacob. Good to see you. Absolutely, good question, obviously. Yes, you're right. They are a little bit shorter in duration. You should see the first one that we took on June 30 as an extension of the one we got on December 19 in 2025.

So that then goes until the end of this year. You could draw the conclusion that has to do with budget cycles to do. So we're not promising anything, but we believe that, that actually rolls us then into a good situation for an extension of that.

And I would say that the natural length should be at least 12 months on those kind of services contracts that we have. So I think that's what to set some expectation.

The second order was also short -- think of that fairly short 6 months, but think of that as a new customer, and that's also a proof of concept. So it's quite sizable to be a proof of concept because it includes a number of terminals and so on.

So it's an entry point in that we're now working with that customer on building out the proof of concept and the use cases and hopefully bring that into a longer-term contract as well. And then the third order that we just saw come in yesterday is on terminals from a customer that we already have, which means it's a repetitive customer that sees the need to have inventory and use of our terminals which will then also drive the need for more services.

So I think they might not be the average normal norm of contracts, but I think you will see a mix of short, midterm and long-term contracts as we move forward.

Okay. Perfect. And just the second one. So as you described, the [ SATCOM ] service were down 9% quarter-over-quarter.

And you mentioned the renewals have taken longer than expected. But could you give us some sort of update on the Swedish contract that expired in February? What is causing the delay and when or if you expect it to be resolved?

Yes. I can mention a bit without going into the details I can't go into. But I would say that, that was something that I personally would have thought we would extend. But on the other hand, we also have in-depth conversations.

So it might have turned to a direct procurement rather than an indirect procurement through a partner, which also means that we're in deeper conversation with the customer and user group there of looking at what the experience was for the first year they had the service and how that could actually expand into other things.

So there are discussions ongoing. They take a little bit -- they have taken longer than we anticipated. But I have good hopes that, that will lead to something that is more extensive than what we have had, but I cannot promise any of that because the discussions need to be concluded and the business case needs to be concluded as well. That's what I can say.

Yes. Okay. And just the last one. So the new NATO customer order of SEK 40 million, that is based on the third-party capacity rather than Ovzon 3. But could you just clarify why did you not go for Ovzon 3? Was it a geographical coverage issue? Or how did the customer resonate there?

Also a very good question. To be clear about it, we could have used Ovzon 3 because it's in the area. It's a European NATO customer.

So we could have used it, but for the use cases that we saw, it was solid to use third-party satellite capacity. And also because of other things we're working on, we don't want to contract up Ovzon 3 if there are other things in discussions that might be more lucrative for that customer and for us in doing so.

So we make choices on this all the time to ensure that we have the right solution for the customer, but also the possibility to grow with the capabilities we have.

Thank you, Jacob, for that. And now I will invite Mikael Laseen, equity analyst at DNB Carnegie. Hello, welcome, and please go ahead with your questions, Mikael.

Yes. You mentioned in the report that this SEK 74 million renewal order is strategically significant and it's adding additional European NATO countries in some way. Can you elaborate what you mean with those comments and we have the right expectations?

Yes, I can. I will try to. I will attempt to try to, Mikael. Good to see you. Yes, I think up until now, as you know, that have followed us closely here for quite some time, we've done country by country or customer by customer, and they have, in all cases, actually have their own networks, their own sovereign networks, their own controlled networks that we manage for them.

In this case, it is as well, but there is also a further collaboration between Allied Nation to create an integrated network system where they can actually utilize -- they have an agreement between one another on if you, for example, move a beam, who has the right of doing that.

This has always been with the steerable beams and antennas we have on most of our satellites that we have access to. That has always been the key for customers to be able to say, I want to move it here. I want to move it here. I have to use it here. Now they have an agreement between a few countries that they will utilize a coalition network and combine their users on those, and they have an agreement on how to actually deal with a potential move of beams, et cetera, et cetera.

I think that's the significant portion here that it is a sovereign capability that can also lend itself to more integrated networks between Allied Nations and within NATO, for example. So I think if we can showcase that to NATO countries, it will be easier for us also to actually become a core aspect of a NATO capability. That's why it's important. That's why it was mentioned in the CEO word in the report.

Okay. And does that mean that you also will have to work closer with the defense primes or other companies in the satellite value chain to collaborate more closely as a sort of a part of a larger system?

Yes. But the first step will be -- I would say, the first step will be that we continue to do what we do and what we do very well to manage this for the customers.

But if you think about what's the big project in Europe is IRIS2, which is really a sovereign network for European countries for Europe and making sure that it's on European technology, et cetera, et cetera. This lends itself to be a proof point in that, that works and we could be plugged in basically in that capability in that solution that is already existing today instead of waiting until 2030 and beyond.

So I think we have the possibility of doing what you alluded to, but it's not a given yet. But this lends itself to do that. Yes.

Thank you, Mikael. And let's move on to Simon Granath at ABG Sundal Collier.

Good to see both of you. I had a question, do you have any assessment on why procurement processes are that much longer now? Is it a question of budgets, other market alternatives? Or could it be something else? And I'm particularly wondering whether the IPO of SpaceX has impacted these processes to an extent that -- whether the customers had them simply prolong the processes due to that?

I'll answer it this way. Simon, good to see you as well. I'll answer the question in the following to see if you follow this answer.

I think, one, when you chase new customers, it takes longer time. You're not in their system. You are not a proven supplier in their system. You might not even be in their enterprise system to click a button and say, yes, this is an already recognized supplier.

So just that process takes a little bit longer period of time. But I think the process leading up to that takes time as well. So it's 2 steps in that. So that's with new customers. With existing customers, if you're in discussions about scope, widening of the scope and how to utilize Ovzon's capability and communication platform, more organizations, more people and more decision-makers and more experts will be involved in that process.

That takes time as well. Some of it is educational. Some of it is fairness in procurement, which I think we all should applaud and that's the right thing to do. These are taxpayer money that you need to invest in things that are essential for a country or for armed forces, et cetera.

So I think that's the second. The third on your point about SpaceX, I would not say so with one exception. I think that has to do with the U.S. market because I think SpaceX or Starlink they've actually taken quite a number of contracts in the U.S. context.

So I think what you see is the geopolitical Europe for Europe, U.S. for U.S. You might see a little bit of that as well. This might also take longer times as we are competing maybe with the U.S., America first product, so to speak.

So all of these 3 in combination, I would say, are there. But I would say that SpaceX -- their major contracts have not been -- there have been more infrastructure launch capacity and other things in the U.S. where they won a lot of contract is in the commercial sector for aircraft connectivity, for example, for airlines.

They are basically taking over that market as we speak. I've seen 3 or 4 new airlines signing up for them. And we don't compete in that. So I think that just drives connectivity, which is positive. So it's a combination of all these 3 that actually drives it.

Very insightful answer. And we have also for now, for some time, seen strong period of terminal sales. And just last evening, you announced another order. And only 1 year ago, we spoke about this 30% of revenue perhaps being a bit elevated.

But now we have seen it for several consecutive quarters and you are continuing to announce new orders. Should we see this 30% of revenue as a normalized level? Or what do you think about the current run rate that you're seeing?

I think -- I mean, you've seen also that fluctuates quite a bit between the quarters depending on delivery, timing, et cetera.

But it's becoming a more and more significant portion, I think, of our business. And especially, I would say, with us some T8 coming to the market, that would be -- that will bring more volumes of terminals definitely, and that itself then brings more need for connectivity.

So I think it's you will hopefully see both growing, but there might be that the portion of satellite -- sorry, terminals might be increasing slightly. That's fine.

And just finally, is the cash flow profile relatively similar with the recent agreements as the one you announced last year, i.e., prepayments even?

Yes, exactly. It's the same beneficial payment terms that we are working with, yes.

Thank you, Simon. And let's move on to Finn Kemper of Cantor Equity analyst as well. Please go ahead with your questions Finn.

I would have a question regarding the margin once again. So maybe you can give us a little bit more flavor on what was driving the slightly lower margin in Q2. Was it the revenue mix shift towards the terminals versus SATCOM services, higher lease party capacity, FX? Or is there any other cost items that we should consider?

Yes. Good question. And it's, as usual, a mix of things. It is, as you say, we had -- the mix is as we saw that services came down a bit, but terminal revenues increased.

So there you have a mix that also impacts since margins are slightly lower for terminals versus services. And then as [indiscernible] said that even though we saw that revenue came down. We are deliberately keeping the capacity for services given that we have a healthy pipeline and want to make sure that we can deliver to customer promises.

So that is eating some of the margin as well. And I think very importantly also is to note that we have this one-off impact as well of cost distribution between the quarters that has a pretty significant impact actually. I think that those are the main things here.

All right. And maybe one more question. I mean we briefly spoke about the utilization on Ovzon 3, but now how should we think looking into the second half of the year and maybe even early 2027, is the share going to rise for leased capacity? And I mean, I assume that you can still grow meaningfully with lease capacity. But is there -- has there anything changed in terms of planning with maybe bringing up another satellite yourself in the near term? Yes, any flavor on that would be great.

Yes. I can take that question, Finn. Listen, I've said this for quite a while now that I think the right question to ask as you were asking it actually is the total available satellite capacity for us? Is it a growth constraint or not? It is currently not.

There are choices we can make. We can utilize Ovzon 3 on short-term contracts, but then it's occupied maybe for other contracts that -- or customers that we see a longer-term capability and solution with. So we're constantly making choices between what assets to use in -- with our customers.

And it depends on their use cases as well. So just in general, that's why, as Andre said, we've kept satellite capacity even though we didn't have a contract on part of it, but we have kept it because we see a growth prospect for it. So we knew we were going to take a little bit of a hit actually because we had the cost for it, but we didn't have revenue on it. We knew that, and we were working very hard to kind of minimize that impact by terminal orders and other things, right? So we saw this.

I think it's important for us to have third-party capacity for a foreseeable future that is balancing our portfolio of capability. And therefore, the contract with the new NATO customer, for example, is on third party. We could have, as I said before, utilize Ovzon 3 there as well.

But we see that in the visibility we have of what the possibilities are for us in this year and the beginning of next year, we want to ensure that we have enough of Ovzon 3 available so we could quickly turn on contracts and services.

And thereby, we know that our margin will also have a positive effect on that. So this is almost like our core engine of how we actually look at how to optimize both financials, customer performance as well as utilization of capacity and ensuring that we have a good balance between third-party capacity and Ovzon 3 capacity.

And yes, we see growth in the future. And we see that the ability for us to do smart financing solutions for more satellites, which is still in our objectives to make a decision on in the near foreseeable future. We need to showcase that we have utilized Ovzon 3 in a good way, so you can see return on investment there.

And then we can push the button to build more own satellite capacity and thereby not have as much dependency on third-party capacity. So long answer, but this is our -- if you come into our cockpit, that's exactly what we work with every day.

Makes sense. And maybe one last question regarding the pricing for the third-party capacity. I mean I assume that pricing has come down a bit now with higher volumes of LEO satellite constellations.

But what is -- I mean, how quickly do prices change in regards to the demand that you see? And what is the visibility over the next maybe 12 to 18 months, how stable the pricing could be?

Yes, really good question. Yes, it is true that the prices on [ Kujo ] capacity has come down. So we've reaped some benefits of that.

We have quite solid margins on third party as well, as you know from our numbers. So that has come down. I believe that there is more LEO satellites being built and launched as we speak, both from the normal suspects such as Starlink, OneWeb and also then Amazon LEO and Telesat to mention a few.

So there will be enough -- or yes, there will be a lot of LEO-based satellite capacity for consumer and other types of applications, aviation, as I mentioned, et cetera, which means that there is likely a positive market for us to buy third-party capacity at similar price points as we have today. And there will not be a shortage the way we see it currently.

Thank you, Finn, for your questions. And we are -- we have a bunch of questions from the viewers. So I will start off by this one saying, I would like to hear more about the Arctic and the tests going on there.

Yes. It's a cold and harsh place, honestly. No, but I think this was a strategic investment we did. It's not a big investment. We paid for it with operational expenditure.

I got a question on that from someone as well. It has been important for us to understand how far could we reach with Ovzon 3 and where would there be a degradation in the signal. For those of you that follow us, you know we have our Ovzon coefficient performance, meaning data throughput, mobility, movability of both the antenna, but also on the ground or in the air, on the water and then resiliency, meaning uninterrupted signal for any reason.

And we wanted to make sure and remember, our satellite is at 59.7 East. It's by the horn of Africa. So you have to reach with above the Nordic countries all the way into the high North and the Arctic.

And we have managed to do so. We've gone from -- in 3 expeditions further and further north. And we have literally had no degradation in the serve. We've proven to both ourselves and the customers that have followed these data points that there is actually an available capability through Ovzon already today. So you don't have to wait and invest to get to a certain point in the arctic, you can actually build a solution and a capability right now. That's what we've learned, and it operates in the most harsh environments.

That was not a joke in the beginning of my answer, where other things actually break. So both the terminals that have been used in those conditions as well as the satellite capability and signal and our onboard processing capability has proven to be very unique from a performance mobility resiliency perspective. So that's what we've tried to prove. We're now going to -- we have taken this or we're taking this to talk to those that have an interest in that region and for connectivity of it. So it's our own business case proof point that the solution is available today.

And what would you consider a typical order size for Ovzon? Is the scale of the FMB contract, a historical outlier that we should not expect to see repeated in the future?

A really good question. Let's balance this answer a little bit. The ambition, obviously, is to have those kind of contracts. So remember, that was a 2-year com networks and a quite large volume of terminals included in that and the managed service that we have, obviously.

So our ambition is to continue to build those kind of contracts, at least 12 months, but 12 to 24 to 36 months and beyond contracts. You won't get there, though, in the first go. You have to prove your point, you have to prove your case, you have to be a reference point. So you won't -- we won't get there country by country here and think that it's going to be popping up SEK 1 billion every second quarter, every year.

But the ambition and the goal is to get that. The average contract length, I think, to expect should be 12 months and beyond that. But if you enter a new country, you might, as the new NATO customer we have, get a first 6-month contract, work with them on building out the capability and the use case of it and then roll into longer-term contracts. So again, a mix of short to longer-term contracts.

Great. How should one interpret the fact that there are no extensions immediately after an order has expired? Is it a missed order? Or is it a negotiation going on?

Yes. Another very good question, something we also work with every day, obviously. In our case, I will answer in our case, there has not been any missed order yet.

We would tell you if that customer had not done so. The discussions we have on the renewals we have now, the longer-term renewals, I would say, are leading into more advanced discussions about size, scope and shape of the partnership with the customer.

And those might take longer time, as I alluded to in another answer here, where you have more people, decision-makers and funding needs involved in it. And that, in a way, takes time because the market is -- this procurement is not a classic and traditional one that have been done before. So it's -- maybe it is a classic innovator's dilemma that we are so advanced in the capability we have and until it's been tested and proven.

And when it has been, how do you then utilize it for other parts of the organization. So I think we'll see a little bit of this. But our goal is definitely not to have a renewal not renew on the date of the renewal or before.

Okay. Let's move over to the T8. Concerning Ovzon's T8 characteristics, when you say it has the lowest [ SWaP ] characteristics, are you comparing with your own products or the full market?

It's a very good question. I'm comparing with our own product, which is the industry norm for performance, mobility and resiliency. And we do not know of any terminal of that sort on them sort that is of that size, weight and power.

Good. How do you work with customer traffic when the order has expired? Do you let the customer continue to operate terminals during negotiation? Or do you shut down the service immediately?

Okay. So there are 2 questions in one there. The terminals these days are acquired by the customer. So if they have an inventory on terminals, they keep their inventory of terminals. It's their asset that they have. They can also buy service from us to repair it or replace it or so on or add another modem to it as we do with some.

So that's one thing. They own it. In our previous history, we bundled the trends into the service. Today, we don't in most cases. The second part of that question, remind me what that was.

You shut down the traffic.

Yes. If the customer says, we don't need it anymore, we will shut down the traffic. We're not a freebie or a research institute. We are a commercial business. So we do that.

However, we have some customers where we have letter of intent or memorandums of understanding that they need it and that they commit to potentially paying for -- not potentially that they commit to paying for the service when they sign for it, but it cannot be 6 months or so. It's got to be shorter-term aspect of that, where else we will have to shut it down.

All right. And time is up. So it's time for us to shut down the broadcast as well. Thank you so much, Per and Andre, for the presentation and all your answers.

Thank you, Mattias. Thank you for a good session.

Yes. And thank you to all the viewers as well.

Thank you.

Welcome all you investors out there to this live broadcasted Q1 report presentation with the SATCOM company, Ovzon. Presenting are CEO, Per Noren; and CFO, Andre Lofgren. A Q&A will follow in which investors can ask their questions via the live chat, and I will raise them during the Q&A. So welcome, Per and Andre.

Thank you, Mattias. Good to be here.

Nice to have you here, and congratulations to a very strong quarter. We are all eager to hear all about it. So please go ahead with your presentation.

Thank you. Yes, we're very pleased to be here for the first quarter of 2026, and talk a little bit about the company and the results that we've had in the first quarter. I will, before we jump in directly into the conversation here, maybe summarize the quarter, which is very strong, as I said. So number one is we had our best EBITDA and EBIT result ever in the company's history of SEK 120 million. It's the eighth consecutive quarter where we have improved EBITDA, which is very strong.

I'm also pleased to say that we got the U.S. Department of Defense or Department of War as they call themselves now, back as a customer in the quarter. It shows that we have a strong relationship. And when it matters, we get asked to provide our unique solutions. And last but not least, our ability to deliver with very high quality and high speed according to plans on the order backlog we have, I think it's the strength of a very healthy operation. And at the same time, we're scaling up all of the company as we go forward. So very, very pleased with the result, very pleased with the performance of the company and very pleased to see the U.S. back as a customer for us.

But let's take it from the highest level right now. Everyone obviously follows this on a daily basis, if not hourly basis, that we, in essence, have a new world order. It's a troublesome world we live in. It's very geopolitically fragmented, I would say. Sovereignty has become maybe the most popular word, and it also are followed by actions. Specifically, I would say, in the relationship between the United States and Europe, I think Europe has, in essence, is driven by driving essential European capabilities in all aspects of industry from energy to technology, including satellite communications, obviously, for us. But in essence, being self-sustained and autonomous is very critical.

Space is becoming one of the critical infrastructures for that. We'll go into that a little bit more. And when it comes to our core markets, you can see in the new world order that defense is being digitized. You can see it in Russia's full-scale invasion of Ukraine that Ukraine has actually been able to hold their ground, thanks to a lot of innovation, digitization and operational dependency on communication and unmanned vessels, et cetera. So it's fair to say that we live in a very, very new world order and era and connectivity is now a critical infrastructure and space is its backbone. If we take that down to where we stand as Ovzon, we have not changed our direction, our focus and so on. We believe in running a very healthy core business. We also believe that we're built for this critical infrastructure era. And our vision is the same. We see greater calling, connect and protect people, society and organizations for a safer world. And we believe that our integrated capability is absolutely essential with our SATCOM solutions for the markets we today serve, defense, national security and public safety.

I think it's fair to say that the results that we see of staying the course, being very focused and concentrated on our customers, on our technology and our solutions and deliver of those generates a strong performance for the company as we'll go deeper into. And we live very well in this quarter also on the fact that we have a very strong order book that we are delivering on. Our value proposition, as I alluded to somewhat here, continues to be the same. And I think in the new world order, in the situation we are in today in our core markets, specifically defense and total defense and civil defense to control each part of what we call the circle of life, meaning the terminal on the ground that ensures that people, vessels in the air, on the water and on ground actually functions perfectly with the resilient satellites and satellite networks that we build that is connected to Internet, to connectivity through secure gateways and that we can manage this service 24/7, controlling each part of this.

I would say that Ovzon is the only company that has both the terminal side, the satellite and network side and brings this into a managed integrated end-to-end service where we promise basically 100% connectivity to our customers 24/7, 7 days a week, 365 days a year. I think it's unique. It's our choice, and we continue to believe and show that I think that's essential in our unique value proposition that we have.

How does this work in today's world? Well, obviously, since we have chosen to serve the markets we have, defense, military defense and civil defense, national security and public safety, it's all about multi-domain operation, connect your assets, your people with the right information at the right time and basically on seconds and minutes to decide where to be to protect, connect and protect people and societies and countries and organizations. So all of these aspects, whether they're in the air, on the ground or on the water with people in the loop are essential for the current, not the future, for the current defense system or rescue missions that civil defense has. And we play in all of this. We'll come to the launch of our new mobile satellite terminal here in a while. But we believe that mobility plays a role, performance plays a role, meaning data throughput and real-time decision-making and resiliency, meaning uninterrupted signals for connectivity so that data, imaging, video and decisions can be made in real time to protect societies.

We also believe that there is a greater market for us out there. It's not only that space has become an essential infrastructure. The rest of the society's infrastructure also needs to be connected and protected. And more and more of the aspects of our society is being digitized as well as we can do most of our things on applications on our phones today. We believe that connectivity is the last mile delivery of an integrated protected and connected society. So any of those other aspects of society will eventually in the future, be a target for Ovzon. But we stay true to our course. We stay true to our customers, knowing the problems we're solving and delivering on those promises to those customers we have today foremost in the defense sector, but there's a big market in front of us as well.

Now I talked a little bit in the beginning about the new world order, and I'm not going to dwell too much on it because we can read it in the news daily and hear it on the news daily. However, I think geopolitics was a word that we didn't use that much just maybe 4 years ago. It's now maybe the geopolitical environment drives the geoeconomic environment, meaning how do you enable societies to function even though it is a harsher world out there, both from a civil and military perspective. But what it has led to is actually that defense spendings are up. So basically, all countries, not only the Western world, all countries are looking at higher defense spending. NATO is asking 5% of GDP from the alliance countries. That is -- it's a fact of life today. I think we play an essential role in that. If you go to the right here in this picture, what it means to us, I think that plays to our advantage as a company, delivering capabilities to that.

I think high North or Arctic is very strategically important, not only from protecting the societies and for -- obviously, for the Nordic countries, it's very important, but it's also for Canada, the U.S., which -- and U.K. and other countries, which means there's a lot of interest there. I'm pleased to say that we have recently had an expedition, our second expedition up there, and we can provide capabilities all the way up to 78 degrees north where our satellite actually functions really well. So I think stretching the imagination of what you can do with satellite connectivity to connect and protect societies is very, very important.

I think that we believe and we follow this, the explosion of unmanned vessels, vehicles in the air, on the ground and on the water is essential. Therefore, satellite connectivity to steer those unmanned and control the data and information flow from those becomes essential. It plays to our advantage with our ability. There are a few caveats to all of this defense super cycle and geopolitical situation. And it is that still in the Western world, procurement cycles are fairly long. They're not wartime decision processes. And they have to be. These are state money. Shareholders are basically those of us that pay tax in these countries. And it needs to be done in a very thorough way, so you know that you spend the dollars or the krona in the right possible way. But that means that sales cycles or decision cycles are fairly long. I think that's worth pointing out.

And the last component of this is really the interest and investments in space. So in the industry we're in, one company, in particular, SpaceX has announced they're going to do an initial public offering. And there's a lot of investments from them into low earth orbit satellites. There is a lot of investment in their rival, also in Amazon LEO. There is a lot of money going into that when it comes to a European player, Eutelsat that also has low earth orbit constellations. So it's fair to say that there's never been a higher inflow of investments. There's never been a higher inflow of innovation, and there's never been a higher interest in space as the next frontier for infrastructure. I think this kind of summarizes the strategic environment fairly well. And we are well positioned in that. I've touched upon that several times now, and we believe that we can reap benefits from all these aspects while still connecting and protecting our customers in what they do.

Now let's turn over to the first quarter. As I said initially in the executive summary, we had record earnings of SEK 120 million. Andre will go deeper into the numbers here. Eighth consecutive quarter with improved EBITDA. And at the same time, we're delivering on our order backlog, and we are essentially scaling the company as we go. I think that's a sign of a very healthy operation, a very healthy company. And I think the biggest aspect of what we do is to have the right people in the right roles, the appointment of one of our own that have been with the company for 18 years, Martin Eriksson to our CTO. It's a sign of strength, complemented by external key recruitment as well.

And I would say the progress in our sales pipeline and development of the sales pipeline is healthy. It's disciplined and we are on the targets 24/7 basically. As I said, procurement cycles are somewhat naturally floating, not inside the quarters at times and outside the quarters, but we are not seeing any degradation in the demands and needs for the remainder of the year. So it's more fluctuations. And again, the U.S. Department of Defense or Department of War, as they call it, back as a customer, even though a short-term contract, we have optimistic views on continuing to get back to the place where we were since 2014 with that as well.

And of course, last but not least, the launch of the Ovzon T8 terminal, which we'll talk to in a little bit here. And here it comes. And for the first time, we brought with us actually our portfolio of terminals that we have. So I'm going to show you that and speak for a few minutes about those. There are 2 sets of terminals. On-the-pause, which are more for control and command, not movable per se, but they can -- you can move with them as well. But -- and this is the Ovzon T6, it's our workhorse. And this is the Ovzon T7, the smallest in its class for on-the-pause terminals. You can fit them into a backpack or a brief case.

Secondly, on this side is our on-the-move terminals. This is the Ovzon P20, currently the smallest on-the-move terminal in the market. Today, you put it on vessels and they can move at very high speed and with very -- in very difficult conditions as well, also state-of-the-art. But our latest, of course, is the Ovzon T8, and you can see the difference in size here. This is the Ovzon T8 that we just officially launched. This is the radome on top of it, and this is the terminal. And you can imagine if you can continue to have high data throughput, mobility component, it's Ovzon's first developed on-the-move terminal. You put this on vessels, whether they're in the air, on the ground and on the water, and it can provide you with excellent performance, data throughput, mobility and resiliency. And we can see a whole array of new use cases for this. It's basically built with the customers in mind and their needs and discussions with us about where they are.

We have the first contract on this with one customer that is our development partner, meaning very fine that what we develop meets their needs. And we are going to deliver the first 10 prototype or the first prototypes this summer and then go into production, and we do all of this in our newly formed center of excellence for mobile satellite terminals. We're very excited. We think this opens up the market for unmanned, but also for other use cases that has previously not been there. So this is the birth of the Ovzon T8. Very pleased with that and very proud of our team that -- very proud of our team that actually have developed this. It's their design, it's their ambition. Phenomenal Swedish engineering technology in essence that only we can do. And it goes back to the circle of life, controlling what's on the ground in space and how you manage that integrated service sets us apart as an organization.

So with that, I'm going to hand it over to Andre for the numbers.

Thank you, Per. Yes, let's dive into the financials a bit, and we'll start with the revenue. You can see that looking at -- starting with the service revenues from SATCOM, you see that continues to increase. We're ramping up our delivery of services. And also, you can see on the top there, the orange part is the terminals. It's still at very good levels. It's not as good as in the previous quarter, but still at very good delivery volumes. So we are very pleased with this quarter as well. And as you can see, terminals are a bit more lumpy between quarters. But I think the main conclusion here is that our services are ramping up, and we continue to deliver terminals at a very good pace. And then if you look to the right here, you see what services means if we would analyze this number for the quarter for the -- as a full year number, then we're actually at record levels here as well, and that's about SEK 750 million on an annualized basis. So I think we're heading into something really strong here.

Moving over to the profitability portion. Here, what you see is the EBITDA and the EBIT, and they are both continuing to improve very solidly in both cases. The EBITDA is at SEK 120 million in this quarter, which is then representing a 46% margin. And that is thanks to, again, the delivery of terminals, the delivery of services, both via third party and from Ovzon 3, our own proprietary satellite, which is then helping us boost the margins in a really good way.

EBIT, the same reasons for this improvement. Here, margins are at around 30%. So that is also very strong. And in absolute numbers, that's SEK 80 million. So again, we are improving and increasing our profitability while we are ramping up our top line. So it is profitable growth that we are continuing to deliver. Then one more step into the profits. This is all the way down to the profit after tax. So then we have paid our interest rates and paid taxes if there were any. And as you can see, this is at very good levels as well, SEK 70 million in the quarter, and that is then an earnings per share by SEK 0.62. So again, very good levels.

The main reason for this ramp-up is, of course, the strong profits from EBITDA and EBIT, but also that we have been able to reduce our interest costs quite significantly. So that is helping us. And that started in Q4 last year, and you see the full effects of this also in this quarter and will continue as we go along here. One reason why the Q4 looks a bit better than this quarter is that we had a one-off impact -- positive impact in the previous quarter for tax reasons, which now actually have the reverse impact in this quarter. So underlying, it's a very strong development of the EPS and earnings here. So we're also very pleased with this development.

Let's move back into operational level and looking at the cash flow. It continues to be very strong. We are in positive territory and quite significantly into positive territory when it comes to operating cash. We have some investments into our beautiful Ovzon T8 and other developments, but it's not very big numbers. Our free cash flow is also very, very strong. To the right, you can see our financial position. It's -- the orange line here, it's our net debt, and you see that, that is decreasing. And that has to do that we -- with this good cash flow that's actually generated from really good negotiated contracts, which we now see the results of, we can use that cash and amortize down our debt. So we're not piling up a lot of cash that's not being used in the most efficient way, but we're actually reducing our debt position, which is more -- the net impact of that is much, much more beneficial. So we are below SEK 200 million in net debt as we speak. So I'm also very comfortable with that situation.

And here's a summary of the financials. I think Per, maybe you are most well-fitted to take those numbers.

I'm not sure I am, but we know them both of you fairly much inside and out by now. I think Andre points to the most important things here, profitable growth. We continue to grow top line, as you can see. Secondly, the cash. So we continue to be in a healthy situation with cash, and we're using them in a very intelligent way, I think. I also feel comfortable with how we do that, and we continue to operate positive cash from operations. And EBITDA, as we said, again, worth repeating, I think, the record quarter when it comes to EBITDA and -- but also the eighth consecutive quarter of continuing that. And it's part of our focus is basically profitable growth, and running a healthy core business and doing it while we also scale up is quite an achievement by the team, I would say.

So we feel we have a good business model. We have a good focused way of running the business. We can launch new products in the middle of actually delivering on that. And we have a strong order book that we deliver on as well. So very strong numbers all over, I would say. But if we're going to try to summarize then the situation and the quarter, I think there are probably a few things to repeat, but very strong execution, and we have a very clear path forward for where we're heading. You could tell on the numbers that we have improvement in profitable growth. We have a strong financial position. We have U.S. customer reestablished. Yes, the timing variability in order intake is actually noted by us, obviously. We work very hard on bringing things into the quarter. But if they fall into the next quarter and the full year and beyond that looks good, we are not nervous about that. We see that as a positive sign that we have good and deep dialogue in developing the sales pipeline.

And we're also in parallel building out. We're investing in building out our sales organization. We bring good people on board, and we reallocate some of our very, very good engineers to also do sales engineering and support in helping customers understand the use cases. How do we actively scale up? Well, I think the strong execution helps that we have solid financials and strong execution. There are -- there was a contract. We noted that in my notes to the report. We've had a contract that we've had for -- that we signed in December 2024 that started in 1st of March '25, that was for 12 months. It has not been renewed, but we are in dialogue with that customer around how they want to actually utilize the system going forward. So we think that's a healthy conversation to have, and we believe that there is an outcome there in one shape and size and form that will have a positive outcome in the future.

Organization is strong, as you can see on the strong execution. And of course, when your CFO says beautiful about one of your products, you know that you've done something right. We can innovate and scale up during a period of time of a very strong ramp-up of the business. So strong quarter, clear path forward, a strong team that actually continues to work around the clock to deliver to customers and deliver financial results and enable commercial success. So with that, I think we are done with our formal part of the presentation and look forward to questions and answers.

Thank you so much, Pat. And Andre, very, very, very satisfying quarter for you, of course. And thank you for showcasing the terminals. Very interesting to see them as well. I'm not sure if we have the equity analyst now, he's not on board.

So we'll start with some questions from some viewers. And with Ovzon's profitability and U.S. presence, is the Board considering a U.S. dual listing to better align with global defense peers and access deeper capital markets for future projects?

I can answer that question. This is nothing that as management team, we have talked to the Board about. I think our listing on NASDAQ Stockholm is quite adequate. It's a very strong capital market to be on. So I -- that's my answer to that question. I think we have adequate availability of capital if needed, where we're listed today.

And also may just add, a dual listing comes with a lot of reporting requirements and costs, et cetera. So I'm not, I don't think it would be actually such a wise decision.

Okay. And if you -- if it's possible to get some more details on orders when it comes to Department of War order for evaluation is for Ovzon 3 premium services, or if it's a renewal of SATCOM as a Service?

Yes. Very good question. Thank you for that. No, this -- so first of all, we have to kind of come back again and say we have had this customer since 2014. That's a long period of time. They have a fairly large inventory of Ovzon's mobile satellite terminals that they -- that are in perfect shape and can be -- start to be used immediately. So basically, this is our old, old customer that needed to turn the network on to utilize it for their needs. So we normally don't sign that short term of contracts of 3 months.

But since this is a long-term customer, this was a reignition of that relationship and use. And it's not on Ovzon 3. It is on third-party capacity. They have Ovzon T7 terminals that are equipped with our onboard processor modem that can be used on Ovzon 3 for the onboard processor. They also have terminals that can be used on the Ovzon Pegasus Services, which is the non-onboard processor network on Ovzon 3. But we believe that you have to crawl before you walk, before you run here. So the reentry with the U.S. DoD and U.S. Department of War and the utilization of our SATCOM as a Service now will initiate more discussions on what's in hold for the future.

Yes. And a comment to that order, it's relatively limited in size and duration. How do you see your opportunities going forward here with this client?

I think this client is a huge client. The U.S. Department of War, U.S. Department of Defense, huge client. This is our core customer that knows us very well and knows the system very well. So I think that's a good sign of coming back in. And my view is that we should do everything we can to work with them on extending what they do today and expanding that. There are also other groups within the U.S. Department of War that I believe are clear targets for the kind of SATCOM Solutions that we have. So we're working intensely on those as well. But it starts with the reference point and then you expand from there.

Thank you. And here's another question from an investor, and it starts congrats for the new Ovzon T8 terminal. Being in GEO, do you think your OTM solution provides sufficient latency compared with LEO solutions? Or is this a limitation?

Very good question from a very insightful person that asked the question. Number one is, yes, we believe our GEO satellite services, GEO-based services are absolutely adequate given how we design networks, given how we have the terminals fitting those networks. So we see that as a strength. It complements any LEO. We also believe that latency is not a problem, specifically not if you use the onboard processor. So the connection of the Ovzon T8 terminal on-the-move terminal with the Ovzon 3 integrated SATCOM system that we have in space will not be an issue when it comes to latency.

There are differences in latency. Yes, LEO obviously is closer to earth and therefore, not as much latency. But we don't see that. There's a picture actually here on one of our slides that -- and that was the test we did with FMV, the Swedish Materiel Defense Administration up in north of Sweden with an unmanned vessel on the ground with going through Ovzon 3 and the onboard processor with very, very strong performance and very, very low latency. So we see that as an opportunity for us to continue to be specialized and GEO is actually a strong area to be in.

Very common question when it comes to Ovzon. What are the plans for more of your own satellites? And how do you intend to finance them if you do that?

Yes. That's a very good question as well. We have previously said all the way from our Capital Markets Day in September 2025 throughout the quarters that we have reported here that our goal is to have a fleet of owned satellites. We believe that is based on one thing, first of all, the success of Ovzon 3, the ability of the satellite to perform to the standards that we and our customers have set for it and the onboard processing capability, the regenerative signal ability.

So based on that, we believe we should have a fleet of satellites. We actually have a request for information out in the market where we look at what kind of satellite designs are there out there that meets the needs that we have and what we have learned from Ovzon 3 and the onboard processing, what's the cost of producing, what's the cost of launch and how are the lead times for this. So both technology, economics and solutions for customers. The RFP work is going very well. So we have a very good view on the market and what it can offer us. We believe that during 2026, can make a decision on more satellites. And the financing will come from the most adequate way of doing it, our own cash, regular bank financing, maybe a share issue, but it -- and customer financing. It depends on what fits the needs of the customer and us and our shareholders best. If you have any?

We're not bound to any of these solutions. We have the full [indiscernible] support of various ways of funding it, which is a really good thing, I think. So we can -- we will take the most optimal solution to our financing.

Great. You are now launching Ovzon T8. How does that differ from T7 and T6? And what do you expect existing customers to upgrade?

Yes. So that's another good question. So as I tried to explain in a very short period of time when I showed the terminals, this is the first development of a terminal that Ovzon has done in the on-the-move space. So Ovzon T6 and Ovzon T7 are on-the-pause terminals that we design and develop, and produce ourselves basically. This is the first on-the-move terminal. So it's somewhat different. It needs to have -- needs to track the satellite, point to the satellite at very high speeds and so on. So it's not going to replace the Ovzon T6 and Ovzon T7. It's going to complement that as you build an integrated SATCOM system between the satellites and the terminals. So you will actually need both. It might replace other on-the-move terminals that we have in our portfolio you are looking at. But that seems to be seen when we have developed the prototypes and how well they perform. But it looks to be something very unique that we have in development right now that we think complements our on the pause terminals and revolutionizes the on-the-move terminal market.

Okay. And could you point out what you think is the most important takeaway from the first quarter?

Yes, of course. I think the first takeaway is this company has a very strong ability to perform, to execute. We deliver on our promise of delivering a plan to our customers. We utilize the order book we have to do that. That's a key takeaway. Very strong financial results. We grew with 189% top line, and we have a record SEK 120 million in the quarter in EBITDA. Very strong financials, very strong execution, running a very healthy core business. Secondly, the reestablishment of the U.S. as a customer is very important in a time era where I think many companies have a hard time finding its path with the U.S. DoD and the U.S. Department of War. I think it's a very strong signal.

And lastly, I think you could trust that we have a core focus on driving profitable growth. We have healthy financials. We're spending them in the right way or utilizing them in the right way. And we're not less resting on our laurels because we can actually innovate and launch a new terminal while we scale up. So I think those are the takeaways. This is a very strong company operating at a very good high rate.

Thank you, Per. One last question. Can you please elaborate a little bit on the order backlog versus the order intake?

Do you want to talk about that?

Yes, sure. Yes, order backlog, that's what we have already booked and order intake, of course, what we are looking at or what we have in the pipeline and what will turn then into orders. I think we have a very solid backlog where we stand now with visibility into 2027. And I think, as Per mentioned, we see really good potential in the dialogues that we have. So it might fluctuate between quarters. Q1 is a seasonally slow quarter in bookings. So I'm comfortable with what we have ahead of us.

I think it's all about timing, as Andre said, we are not very nervous about the year. It's where does it fall in the quarter 1 or quarter 2 or quarter 3. I think we have a solid pipeline, and I think the order intake, you always have to be concerned with order intake when you run a growth business. We want to increase the order backlog to be at that level we had when 2025 ended. So that's our target, our goal, but it's also essential to win the right customers with the right solutions as quickly as you can, but not force it because then you might give up on your pricing premium. So I think stay the course, focus, work around the clock and good things will happen.

Okay. Great. So let me first point to the investors and viewers and say thank you for the huge interest in this broadcast. And of course, Per and Andre, thank you so much for the presentation, and we are already looking forward to the next quarter presentation.

Thank you so much, Mattias, for a well-run webcast.

Thank you.

Welcome, SATCOM company, Ovzon have published their year-end report for 2025 this morning. We will now be giving a presentation about results and activities. And this is done by CEO, Per Noren; and CFO, Andre Lofgren. After the presentation, there will be a Q&A by equity analysts and investors. And by that, welcome, Per and Andre.

Thank you, Mattias.

So arrows and graphs are pointing in the right direction. How would you, in brief, describe 2025 for Ovzon?

Thank you, and good morning, everyone. The year has been a systemic shift, I would say, a breakthrough for Ovzon when it comes to our financial performance, but also when it comes to scaling up the company. We saw 120% increase in revenue and a quite considerable increase in EBITDA improvement from basically plus/minus 0 in 2024 to SEK 291 million in 2025.

So it's been a phenomenal year and numbers are numbers, and they don't lie. However, I think the upscaling of both delivering on the big order we took in May in 2025 as both on the SATCOM services side, building networks and delivering services to our customers as well as scaling up the terminal side is the most prominent thing that stands out to me, and that's delivered good results this year.

Okay. Then please go ahead with your presentation.

Thank you, Mattias. Well, we're, of course, quite excited and delighted to be here today to talk about our fourth quarter and our full year 2025. But let's go back to the basics first and talk about who we are. Most of you are very familiar with this, of course, but we do see ourselves having a greater calling than, I would say, most other companies. We have a vision of connecting and protecting people, societies and organizations for a safer world. And one can easily say that with the geopolitical tensions that are in the world, this is a necessity today.

We operate in space. Space is our infrastructure to deliver a unique service. And we bring resilient, mobile and high-performing satellite communications to our customers that can be found in defense, national security and public safety sector. We have had a period of many years of heavy investments in our own satellite capacity and mobile satellite terminals that we are now turning into a strong growth -- profitable growth case with an order book of over SEK 1 billion, and you can see that on the graph in front of you here.

A little bit of the reminder of our uniqueness. Ovzon's value proposition is the one of an integrated communication solutions with very, very high performance, and ability to use it for both manned and unmanned people and vessels. We integrate the phone, the mobile satellite terminal with building very dynamic and strong networks. And we do that also by having partnership with secure gateways and then a dedicated customer support 24/7. So in essence, we monitor every signal, every terminal and every movement with our steerable beams on our networks to ensure that our customers get basically 100% connectivity wherever they are in the world.

Very few, I would say no one has this integrated capability. Satellite operators operate satellites and deliver bandwidth. Mobile terminal providers deliver mobile terminals. Gateway providers deliver gateway services and connection to fiber and Internet. We integrate all of that. And plus we have our own capability, both in space and on the ground to ensure that, that's guaranteed.

Where we do it, as I said in the beginning, is foremost in defense, but also for national security and public safety. When it comes to defense, the big trend right now and what we have learned from the areas that are in most attention today is that digitization is the driver of defense today. And when you digitize something, you need connectivity to transport information, data, video footage, et cetera, et cetera. And it needs to be multi-domain operations between in the air, on the ground, on the water, people and vessels and assets need that information in real time to make fast decisions to protect and connect what their missions are.

So we do this in all those domains with our unique technology and unique capabilities. That's on the defense side where we're the strongest today and where we've had our focus the last 4 to 5 years. However, it needs to be put in perspective that Ovzon's mission-critical connectivity is beyond defense, national security and public safety. So our growth prospect as a company is much greater than that. And our impact on connecting and protecting a society is much greater than that.

So we see opportunities in being very deliberate about being strong in the domains and in the areas we choose to serve, but also have an openness because we know our technology is so strong, so it can actually feed other types of domains in the society today. And this picture represents some of that as well. It's important to understand that the market is quite enormous for us.

Obviously, we all wake up every morning and follow every day what's happening in the world. But I want to put Ovzon in the context of the strategic environment that we operate within. If you think about geopolitics, which becomes geoeconomics as well, we are in what's called a super cycle for defense spendings. NATO sets a demand of 5% of GDP going into NATO and defense spendings. But also each country needs to build and they are building and investing in sovereignty and resilient capabilities and solutions. Alliances, could be between countries or within NATO, et cetera, et cetera, are looking at the same.

Obviously, Arctic and the high North is a very, very important area. We can follow that in media as well and between our political leaders. We have abilities in that area, but it will take some time to build a solution for that, obviously. And the conflicts that we see in the world are also driving an increased demand.

So we are in a troublesome situation for the world, but an opportunity for us to connect and protect for our customers. When it comes to policy and procurement, more money is spent, but procurement cycles are maybe not as fast as the money -- the availability of money today. And I think that's an important aspect to understand when you're in a business-to-government business as we are, that you have to have endurance, you have to think and act long term and you have to stay true to your core capability and solution to do that.

When it comes to the industry, there is a space race. You can see the likes of Elon Musk, Jeff Bezos, owning SpaceX, Tesla and others and owning Amazon investing in low earth orbit constellations. They have different business model for them, but that's about connectivity to make sure that societies are connected. We don't compete with that. We complement that with mission criticality. So we see that investment wave in the industry as a positive and a strong aspect of actually investment in capabilities and our position is very strong for that.

So you can see that there is also a growing interest in the space domain. And space is a big word. There's a lot of things in space. What Ovzon does and we do it very well, is that we use space as infrastructure for delivering a highly unique performance-driven, mobile-driven and resilient solution for connectivity for the customers we choose to serve.

Turning from that more macro perspective, we're going to turn our focus more into the Q4 accomplishments. And it has been a focus on execution. And that execution has then led to, of course, an increased momentum for us in accelerating our profitable growth and our profitability. In the quarter, we had a complementary order of more mobile satellite terminals from the Swedish Defence Materiel Administration. This is a strong and good sign that when you have networks up and you have terminals in use, you start to see broader and deeper use cases for those and the need for more terminals which makes us more sticky also with the customers.

And then at the end of the year, we got a relatively large order from a European NATO customer on Ovzon 3-based SATCOM solutions, including mobile satellite terminals of SEK 240 million. We've also invested in our leadership team. My colleague, Andre Lofgren, joined us in 2025 as our CFO. Jeanette Irekvist joined us in the fall of '25 as our Chief Commercial Officer, both with external -- long and deep external experiences.

And we have the pleasure of appointing Martin Eriksson, who's been with Ovzon for 18 years and is one of our -- has been one of our lead technical leaders and engineers as our Chief Technology Officer as we cease to continue to strengthen our technology leadership. So we have a very, very strong, I would say, leadership bench and for future growth and capabilities.

Going back to 2 things that I want to mention here. I think there are 2 things you can look at. You can look, as you said, Mattias, graphs and arrows pointing in the right direction financially. That comes from an order book that is strong. It comes from an order intake that is strong in the year and also in the quarter. But it also comes from the ability of scaling up and delivering, having operational excellence and having an ability to execute and deliver on those contracts you get. And I think in the defense market, this is very, very important. There are sensitivities to when you work with government money, which is really tax money that I think as a company in that sector, we have an obligation to actually deliver on that and be cost effective and deliver on time.

So I think we have a very strong operational excellence. We've had a very strong utilization in the quarter of Ovzon 3, but also ensure that we have third-party satellite capacity that complements that because we see that the demand going forward for the specificity of Ovzon 3 is there.

So we want to keep enough capability ready for those customers that we are hopefully bringing on in the future. And as you can see, we have delivered mobile satellite terminals to a pretty large value in 2025 over SEK 208 million. And I think the core of what we do is to renew current customers and win new. And you only do that by delivering, by living up to your value proposition, as I embarked on earlier and that you build customer trust when you consistently deliver high quality, you have an organization that is integrated with clear accountability and you have strong execution, reinforcing customer confidence and building future growth opportunities with that.

Before I hand over to Andre, I'll just talk a little bit about the journey that we've been on. And I'm not going to do it in numbers per se. But to understand, we were in a very heavy investment period for a number of years. We managed to keep revenue at bay at fairly high levels, and we added some new customers and so on. But the investments were larger than the ability to create the margins needed to carry those. That has changed with the growth we've had, but growth doesn't come by itself. It comes with being smart about business models, being smart about commercial success and being smart about operational execution.

So with that, I'll hand it over to Andre to take us through the numbers for the quarter and for the year.

Perfect. Thank you, Per. Yes, let's start with the revenue. And as Per said, with these investments into our own satellite and also then securing third-party capacity, we can have had this growth in revenue, thanks to that because you see here is both service revenue that is increasing quarter-by-quarter and then also especially in this quarter, and you see a big chunk of terminal being sold in this quarter. So yet again, a very strong quarter for growth in revenue.

And if you look at the slide to the right here, you see we have zoomed in on the service revenue. So this is the run rate for, say that you have what you have in the fourth quarter and take that times 4, then you are at this above SEK 700 million annually in services revenue, which, as you can see, is a record high level. So it's very satisfying to see.

I'll move over to profitability. It's actually the same headline as we had in the previous quarter, but it's still the truth. We have profitability that continues to improve. And that has to do with the growth that we have in the operations in general, but also that we have really good cost control. So we can really expand margins, as you can see. We're now into the seventh consecutive quarter of EBITDA growth. And to the right, you see the 5 quarters in a row of EBIT growth.

Some might note that Q3 versus Q4, there is a bit of a moderation of the EBITDA margin, but that has to do with the sales mix of a lot of terminals being sold in this quarter, and they are at slightly lower margins than our services. So it's a mix effect here. I'll actually deep dive a bit deeper into profitability. This is a new slide from us. I think it's time to go all the way down to profit after tax and EPS for us as a company because it's the first year that we have black numbers for the full year when it comes to EPS and profit for the period.

You see a very strong Q4 here this quarter, SEK 90 million in net profit, representing SEK 0.81 in earnings per share. And in these numbers, it's -- what you see here is actually the first time you see the impact of the refinancing and the lower interest rate cost that we now have, thanks to that refinancing. And that is something that starts in this quarter and are continuing as we go ahead here. Another impact, which is more of a one-off impact is the tax impact from a recognition of deferred taxes which we now recognize as an asset because we have used the tax loss carryforwards in this year. So we're deducting that from the potential tax.

And then as we look ahead, we see that there's a very clear potential for additional recognition of these tax loss carryforwards. So that's why we are recognizing this in this quarter. And if you sum these quarters up to a full year, you see that we are delivering SEK 137 million in profit for the year after tax, really strong numbers. In these numbers, though, you have, first of all, the one-off effect, but also then you have a tailwind from currencies, which is then unrealized. It's translational in the balance sheet.

I'll move -- take the elevator back up to operational level and look at the cash flow, which is -- really glad to be able to present those today here as well as the previous quarter. You see that we continue the trend of -- well, first of all, very strong operations and the performance of operations, but also really interesting and good payment terms that we have with our customers.

They are really progressive and cooperating with us well on these terms, so we can continue the growth that we have and then invest in the company. That has also then helped us to reduce our net debt quite substantially. We have amortized a lot of the debt, but we have also then been increasing our cash position in the company. So it's -- we're ending the year on a very strong note when it comes to our financial position.

And if we are then summarizing this, when it comes to financials, it's a strong growth, and that is coupled with then a very strong growth in profitability. So it's a profitable growth that we are on to. And we are securing a strong balance sheet and also a very healthy backlog going into the years ahead here. So I'm very pleased with presenting these numbers for this year.

And Per, with that, I hand it back to you.

Thank you, Andre. Thank you for that. And I'm sure there will be some more questions coming your and our way in a little bit. But just staying on this for a little while. So for those that have invested in our company and follow us closely, I will say that these numbers don't come by itself. It requires long-term investment. It requires operational execution. It requires commercial sturdiness to understand that your value is strong.

You have to have a long-term view on what you do. And then you have to really work with your customers to ensure that the value that we promise to give is actually recognized. And that then turns into these contracts. So I think 3 things stand out to me. We're living up to the promise. We have a business model that is strong. We have strong commercial sharpness, and we have a very, very strong execution model that can scale for us.

Now before we go to a conclusion, I think it's worthwhile maybe -- and maybe this is too pedagogical, but to understand our business model somewhat. We divide it into 2 parts, basically, SATCOM services, Andre talked about that. Our run rate is up now over SEK 700 million. That's monthly service revenue from customer networks that we set up. They have high service margins and the cash flow that becomes predictable. And the more long-term contracts we create and sign and the longer-term relationships we have, the more predictable that becomes. And that's an important key performance indicator, I would say.

The second part is mobile satellite terminals. We have reasonably -- we have good margins on mobile satellite terminals. The model is that they are -- revenue is recognized upon delivery. So when the customer takes delivery of the terminal. And then the more terminals that are deployed, it drives the need for more networks and bandwidth. So it drives services growth, which you can then translate into the SATCOM services part. And then, of course, that then, in turn, drives follow-on and supplementary orders of more and more terminals. And maybe a comment on terminals. The smaller, the more use cases. The smaller, the more difficult to develop and have performance mobility resiliency. We can come back to that a little bit later.

And last but not least, it starts with the customer and ends with the customer. So deep customer relationships comes from delivering value, mission-critical performance, renew and have long-term partnership and support expansion of that. So I wanted to actually address that again so that everyone understands where the numbers actually come from.

And last but not least, what can be expected from Ovzon going forward with such a strong performance, as I would say we had in 2025. Well, we're embarked on a journey to continue to deliver financial performance, meaning profitable growth. That comes from number two, ensuring commercial success straight through to our value proposition, win -- renew customers, win new customers and expand into new application areas with our capabilities and solutions. And number three, we are operating on a higher level of scale as a company today, which means that we are also actively looking at scaling. And that scaling will not eat the profitable growth journey, but it will require smartness in investments in scaling the company up to that.

But we believe we have the model for it. I believe that 2025 shows that we do. And I believe that we have the possibility to continue to do so as we go forward and embark on the profitable growth journey. So I think with that, Andre and I thank you for listening to the presentation and are now ready to go to questions and answers.

Thank you so much, Per and Andre, for that presentation. And we will start off with equity analyst, Mikael Laseen at DNB Carnegie.

Okay. Hope you can hear me. I'll start off with a question on the gross margin. It was a good uplift year-on-year and better than I expected. Can you talk to us about the margin dynamics, which is primarily mix effects. So on the leased side and on your terminals, how we should think about that when we go into '26?

Yes, it's kind of the same situation as in this year, 2025. So as you said, Mikael, it's a mix of terminals, which have slightly lower margins and then you have third-party capacity of services, which is a little bit higher or higher than what you have on terminals. And then you have what's been delivered in gross margin when -- from our own satellite, which is a very, very healthy level. So that's kind of the indication we can give you. On exact numbers, it's hard to do. But it will always be the balance of these mix effects, and that's something that we're working also thoroughly with of mixing both third-party and our own proprietary satellite services.

Yes. But since the margin effects and the differences are so big, can you help us understand what type of mix you had approximately in Q4 between Ovzon 3 leased capacity on the service side. I guess it changed quite a lot compared to Q3.

Well, the biggest shift versus Q3 is actually the proportion of terminals versus services in general. But then there's also always a slight mix between quarters also on how much is from Ovzon 3 and what comes from third-party capacity. I can't go much into more details on that, actually.

I think just -- I'll make an overlay comment on it, Mikael. I think it's hard to predict, of course, for someone on the outside. We are working constantly with trying to maximize the utilization of Ovzon 3 where we can. But we also don't want to hold back on ensuring that we have third-party capacity so that we can fulfill contractual obligations and continue to work on actually the new contracts that we are working on as well. So I think the mix there has been strong and balanced between Ovzon 3 and third-party capacity. But on the terminal side, especially, I think that's where the biggest mix is in Q4. We've had a very, very strong quarter in delivering. And we do have healthy margins on the terminals as well. I think that's what you see in the uptick as well.

Yes, exactly. Yes. And another more technical question maybe before I have another one actually on the market situation, if I may. It's on the phasing of the current order book going into '26 and primarily the first half. And maybe if you can help us out with how much of the order backlog that will be delivered in 2027, so we can understand sort of that the mathematics.

Yes. And I think actually, you can view one of our summarizing slides on the financials where you see the mix of what is expected to come in the -- sorry yes -- what's in '26 and what's in '27. So it's a fairly big chunk here now in 2026.

You can see that on the lower right here. So 76% of the order book is in '26 as we have it now and 22% in -- 78% and 22% in 2027. And if you add more contracts going forward, you'll have that shifting over time, '26, '27 as well.

Okay. And then my final one, how would you describe the current customer funnel and the customer discussions compared to maybe 6 months ago?

Yes. I think I would say the following. We are in -- we continue to be in deeper discussions with a number of customers. I've made -- I've talked a lot about the timing of things, right? It takes time to both educate and demonstrate and deliver value in the phase of sales, but the sales pipeline is solid and increasing and with now a new Chief Commercial Officer, who is also ramping up the number of salespeople we have so we can cover more ground. I would say that it's solid what we have, and it will over the year -- it should, over the year, increase as well. So I feel comfortable with the sales pipeline, but cannot predict exactly when things happen.

And we move over to Simon Granath at ABG Sundal Collier. [Operator Instructions]

Congratulations on the strong earnings in 2025. As usual, we tend to ask questions about something you might not be able to give full insight into. But could you try to give us some more color on both the recent progress in terms of adding more satellites to roster. Also, we have spoken about different scenarios historically, whereas you could both do this through a partner or with proprietary funds. Is there anything that changes here that means that you lean towards either of these?

No. I think it's a very good question and very relevant for us to try to answer. And of course, before a decision is made, a decision is not made. However, we have -- we wanted to ensure that Ovzon 3 was operating, that we made the right technical choices, that we made the right operational choices that they deliver the value and the promise that we had set for it. And we believe, yes, that, that is done with 2025. We also believe that the commercial model for it, the business model for it and the prospect of growth and margins on it is also there. So we're starting to see that the return on investment horizon is there as well, number two. And so before -- and then number three, our own financial -- our ability to finance such a capability is also important.

I think the refinancing we did in 2025 shows that there is adequate financing available whatever mean we choose to go -- where we choose to go. So all of these things are there, plus, of course, the customer verifying that the onboard processor and the satellite is delivering beyond what other capabilities does. So all of that, I think, is '25 gives us an indication that we should go for more satellite capability and capacity. We know it takes time. So we have somewhat of a sense of urgency. And what we do is that we have -- we are out talking to satellite manufacturers about what's available. There are actually quite a few new ones in the market, which is interesting. And then there are the traditional ones that are trustworthy in developing something.

So we're in the midst of that process doing a technical evaluation. Then we'll go to the -- and we know that the demand in the market is there. And then we go to the financial part of the equation and see if we can get it to work as a business case. So we believe that we have an ambition to expand with more than one, but I think the business case needs to be developed further and closed, and we believe that we will have to do that during this year.

Yes. And maybe just to add to that, it's not only prioritized satellites, it's also that we will still continue with third-party capacity correct. I mean it's -- that is needed as well to fulfill demand going forward. So it's going to be a mix of both.

We see that we operate on a level now where it's time to have the guts to actually go further.

And building on Andre's comment there, during the past 12 months, we have both seen you sign SATCOM orders on Ovzon 3 as well as third-party capacity. Is the aim -- main aim going forward to prioritize orders on Ovzon 3? Or could future orders here in the relatively near term also relate to third-party capacity?

It could relate to third-party capacity as well. It actually depends on where the customer is in the world, right? So Ovzon 3 is situated in an orbital position at 59.7 East, which is over the Horn of Africa. So it covers a good chunk of 1/3 of earth and can actually go also up towards the Arctic in coverage, which we have tested. So we have -- if customers are in that area and they want the specificity of Ovzon 3 and the uniqueness, we will go for Ovzon 3 there. If they are in other areas, we will have to rely upon third-party capacity. So I think you will continue to see a mix of all of that in it. But there is quite some interest in the uniqueness of Ovzon 3 with the onboard processor due to latency, speed, performance and mobility.

Perfect. And the recent NATO order that you signed or at least with a NATO customer, had this previously been a pilot customer? I'm trying to grasp the relatively short time frame of 6 months here. And if -- to understand if this is a first step with this customer, also taking, of course, the large share of terminal orders or part of this specific order in consideration.

Yes, excellent question. I think you should see it in the -- I would portray it in the following way. The more customers collaborate and do exercises together or mission-critical things together, the more reference points matters. So while it might not have been a pilot customer, it might be that a customer -- one customer has seen what another one has and in order for them to have combined connectivity, that drives -- that has driven this decision basically.

Very interesting. And just a final question, if I may. In Sweden, we have recently seen some positive news about more funds being allocated from the Swedish government to satellites. My impression is that the recent news are not specifically linked to your niche, but could you talk about some of the recent views from different governments and states on SATCOM?

Yes. I think it's become very clear that it's a critical aspect of a digitized defense, as I alluded to in the introduction here in the presentation. And I think the need then for guaranteed connectivity, SATCOM, becomes more imminent and the need is there, imminent and there right now. So I think that's the first trend that I see -- that we see.

And then you have to decide what you want to use it for. There are several use cases. One could be surveillance. One is pure video footage, et cetera. There are capabilities, so-called SAR satellites that can do that. They might actually need a mother ship, if we call it that, like an Ovzon 3 in order to reduce the latency and get faster performance on that. So I think in combination, these things are important. That's an architecture of utilizing the most advanced capabilities in space for a communication, surveillance and data and information architecture for a digitized defense today.

And let's welcome in Finn Kemper at Cantor Fitzgerald. [Operator Instructions]

Congrats on this very successful quarter. So I mean, lots of the things I wanted to ask were already covered. But one follow-up to Simon also is, I mean, if we assume that demand remains strong now and Ovzon 3 approaches full capacity utilization, how should we think about growth beyond that point, let's say, 2028, I mean, assuming that building a satellite takes 2 to 3 years. I mean, incremental top line growth should then primarily come from third-party capacity. But how should we think about the margin profile and top line growth rates in such a scenario compared to today?

Yes. Very good question, Finn. Thank you, and good to see you as well. I think you should think about it in the way you described it. I think we are after maximizing the utilization of Ovzon 3 and we complement that and have always done so with third-party capacity. So we will use third-party capacity for that. I think there's a third dimension that are still in its early stages, but that is also how you combine the usage of low Earth orbit capabilities and geo capabilities, meaning that where we operate in space. And I think we have -- there is more to explore and exploit there in order to build a full communication solution.

So I think with those customers that we have where we are in deeper discussions that might already operate in with us and they're looking at a broader generic communication solution with LEO, that is something -- it will take a little time. But I think that there is -- the solution will include multi-orbit capabilities, our specific Ovzon 3 and also third party in combination with both of those. So I think that helps us also to have a growth prospect quite beyond just Ovzon 3 or just third-party capacity. I think there will be a combination of things that are going to happen as also the customers and the market matures in the usage of SATCOM capabilities for specific use cases.

And also, I think one should not forget that we are also selling terminals. So I mean, that's a revenue stream as well that we see have momentum as well as you need more capabilities.

Okay. Great. One more question maybe on cash generation. So you said that there were some working capital headwinds. Maybe you can help us understand what specifically drove these headwinds. Was it primarily timing of customer payments, inventory build for the terminal deliveries or maybe something else. And as volumes then further scale in 2026, how should we maybe think of structural working capital intensity for this year?

Sure. The headwinds I talked about that was on currency impacts, translation impacts that are unrecognized in the EPS. So for -- it's definitely not connected to the working capital where we see tailwinds rather of -- first of all, the strong performance from the operations and then we have progressive payment terms, and we see that looking -- glancing into the future, we see that, that is likely to continue for quite some time.

Thank you so much, Finn. And let's sum up and read up some of the questions from investors. And let me start off by how does the current change in geopolitical alliances affect your overall business strategy?

Good question. Number one, I would say we've always been -- we are a Swedish company. Therefore, our home market is Sweden. Therefore, also Sweden's entry into NATO meant that the collaboration in the near area is important and the collaboration and the trend we see with America First and maybe European sovereignty also drives our focus to Sweden, the near area, Europe and the U.S. And I would say North America maybe in that sense.

So I think it doesn't change at all really what we have done, but it might change our focus on penetrating certain markets and areas where we see collaboration is more natural and flowing faster than trying to go after everything at the same time. So we remain focused, Sweden, the near area, Europe, North America, including the U.S.

Which measures do or can you do to take to minimize the risk of having customers at odds with each other?

At odds with each other, quite interesting. Well, first of all, we follow the Swedish state department rules of which countries we do business with. That should minimize the friction without question, I would say. We also follow the U.S. Department of State for that matter as well. They might be somewhat different at times.

So I think we're staying very true to those that are more allies if we go -- if you take the basis that we're a Swedish company and operating in Sweden. So I don't see that as a -- I don't see that as a big risk and issue. The friends and the allies and the work that's been done in 2025 between those, specifically in Europe are very, very clear. Some of them are our customers, some of them are not our customers. And therefore, they are on our list of presented customers.

And a question to Andre. You make around SEK 160 million in free cash flow during Q4, excluding changes in working capital. What do you expect the run rate to be in 2026. And by how many million Swedish kronas is Q4 boosted compared to other quarters?

Yes, it's a good question. And it's a bit difficult to answer actually because it all depends on -- I mean, the free cash flow is operating cash flow and then you deduct for investments. And as we have investment plans that are not really decided yet, but we're looking into that. So it could be that the free cash flow is extremely strong or we start then investing into additional satellites and then it will be still pretty decent, but it -- I mean more investment in satellites for future growth will eat some of that free cash flow.

And you touched upon this during the analyst call. But when can you outline the path towards Ovzon 4 or other new satellites?

I think we'll sum it up in the following way. We are actively working and evaluating all those aspects, as I said, when it comes to technology, capability, financing and so on of it. We do see that demand is there. So we're trying to do that as quickly as we possibly can. I think this year is an important year in determining the business plan for that going forward.

Okay. And one last question that I have here now. How -- what's your view on competition and also competition within our area geographically?

Yes. I think competition is good. It drives innovation and it drives sharpness in what you do. I think there are more complementary capabilities in general in the domain or the unique position we are in rather than anything else. I would say the following.

We do not really have a direct competition, but there are complementary things that is required for digital defense, cybersecurity, encryption, resilient communication, more data, so higher data feeds, but more security, more mobility, smaller terminals that can be used in unmanned areas. So I think it's more coopetition than competition that is the name of the game. And I do believe that there is an opportunity for us also to work more with the larger original equipment manufacturers, OEMs in ensuring that there is connectivity on vessels and on those type of solutions that are actually mobile for a digitized defense.

So I would -- and I will end with. I did mention low Earth orbit capabilities. We do not see it as a competition. We see it as a complementary. And I think most countries and defense organizations are looking at it the same way. So you use low Earth orbit capabilities for a certain aspect of your operation, and you then need Ovzon to drive your mission-critical operations.

Okay. Per Noren, Andre Lofgren, thank you so much for today's presentation and all the answers in the Q&A. It will be very exciting and interesting to follow and see how you will perform 2026 from this new position that you might say that Ovzon have elevated to. And thank you all participating investors and analysts. And by that, Per and Andre, thank you so much for today and good luck going forward.

Thank you, Mattias for a good session. Thank you.

SATCOM company Ovzon released their report for the third quarter 2025 this morning. We will now be giving a presentation of the results and activities in the quarter by CEO, Per Noren; and CFO, Andre Lofgren.

This is followed by a Q&A. Investors can ask their questions in the live chat. By that, let me welcome Per Noren and Andre Lofgren. Nice to have you here.

Thank you, Mattias. Great to be here.

Per, strong growth with profitability. How satisfied are you with this report?

A quarter is a quarter, but very satisfied, obviously, with where we are at and the projections we have for the future and how well we have delivered on the contracts and services we have and the black figures everywhere basically. So very, very happy and very satisfied with the results today.

Okay. So please go ahead with your presentation, and I will be back for the Q&A.

Thank you. Thank you. Good afternoon, good morning, and welcome to our third quarter report. I'm here with our Chief Financial Officer, Andre Lofgren.

And we're going to take you through the numbers and what's led to the numbers here today. So without further ado, I think we'll start.

First of all, let us talk a little bit about the company. So we see ourselves having a greater calling than the actual nuts and bolts that we do every day. And of course, the details are -- the devils are in the details of what we do, how we do it and how we deliver our specialized services.

But we also see a world where -- that is in turmoil, whether it's hurricanes over Jamaica, other natural disasters or geopolitical tensions and wars around the world. We see ourselves having a greater calling with connecting and protecting people, society and organizations for a safer world.

I think we all from management to employees, to customers, to shareholders see that as a greater calling and you have to play the long game if you're going to be in that business.

What we do is essential. It's very, very essential. So we deliver fully integrated high-performance satellite communication solutions with bringing resilient secure connectivity to the world's most demanding environments.

And it's true that we are focused on defense, national security and public safety. Our main focus is defense right now, but there is more and more drive and market demand from national security and public safety.

So we see growth prospect of that as well. And of course, it's all about playing the long game, driving profitable growth, ensuring that the company is healthy at the core and that we can continue to grow and deliver to our customers.

I'm going to take you through all those numbers today, but you can see on the curve here to the right that we are on a good trajectory and we had a good quarter here numbers-wise.

Yes. So is it relevant what we do? Or is it just us saying so? I believe or we believe that it's very important to understand that satellite communications today is basically the unbreakable link in a very fragile world.

So if we think about what the world looks like, over 60% of earth lacks reliable terrestrial connectivity. The market is large and growing, over SEK 100 billion by 2030 with a CAGR growing from 7% to 9% actually just in a few years.

And it's critical to anything that has to do with a country's sovereignty, alliances such as NATO, EU and of course, U.S. and other parts of the world for national security strategies.

So most countries today look at this and say, what do we do to secure our ability to have a functioning society despite the facts of those natural disasters as well as geopolitical tension.

One thing that I think is an important fact to understand is that it's a very fragile infrastructure we have today. 95% of our global data flows through undersea cables. And for those that follow media and happenings in the world, you know that they are under attack basically.

So the only resiliency you can get is actually from space if something would happen of nature of disaster recovery and so on.

So SATCOM operates independent of all of that and is up until this point, immune against certain disruptions, et cetera, et cetera. So it plays a more and more important role in the central architecture of communication. It's a piece of infrastructure that cannot be neglected anymore.

Security and sovereignty, our society that is more and more digitized cannot function without making sure that you have a secure and sovereign infrastructure for communication. Already this week has been a lot of news about GPS jamming and cyber disruptions, both targeted to companies, targeted to institutions, targeted to governments and targeted overall.

So we provide a capability that actually can operate in a GPS-denied environment and in a contested environment. So the importance of that cannot be understated, I believe. And last but not least, this is the continuity layer of a digital world.

It enables operations when all other things are disrupted and all other networks are out of service. So we play a very important role. We are a specialized provider of very high-performance satellite communications and we believe that that has a very high value, higher and higher value in a world where you also have low earth orbit satellites such as Starlink, Eutelsat's OneWeb and so on.

And that's good for connecting consumers and people in the world in remote areas. But if you want real resiliency and real solutions for real-time mission-critical operations, Ovzon is the answer.

Next, please. It's me. Our value proposition is very, very clear. We are the only provider that controls what we call the circle of life, the integrated satellite communications capability from the mobile terminal, think of it as a phone on ground that connects to a satellite or a satellite network rather, that sends a signal, I want to have internet connectivity or connectivity, goes down to a secure gateway.

And the gateway then connects to fiber. The signal goes up to the satellite again and down to the mobile satellite terminal and you have connectivity. Wherever you are, we will guarantee that that happens.

And we do this on a 24/7 basis, 365 days a year because we have a setup operations and service center that manages all of our networks, all of our terminals for all of our customers without missing a heartbeat. So very, very unique specialized integrated services that we have.

How does this work? Well, this is a defense and military picture. It could be society at large as well, obviously. But you can see that if you really want to have a network-centric operations and you really want to make sure that you connect both assets, people, decision-making with video, content, voice, communication for integrated operations, you have to have connectivity.

So this is part what we are talking about in terms of how can you ensure that. It cannot be nice to have. It has to work all the time and between all these assets.

So it's a systems of systems architecture that is needed and Ovzon's technology and solutions are at the core of that. And we believe that the growth and demand coming in the future will be even greater.

Now let's turn to quarter 3 and the accomplishments. So during the quarter, one of the most significant events we had was that we completed a refinancing.

We have a new loan facility with Danske Bank and it reduces our debt quite considerably. And Andre will go through that a little bit later, but it's significant for us to strengthen our financial platform for how we can continue to drive a healthy core business and grow for the future, huge step forward for Ovzon.

We're also strengthening the organization. We are in a scale-up phase. We need to strengthen both in terms of how we structure our scale-up, how we focus on execution and performance and deliver financial results, ensures commercial success and also scale the company up.

We are fortunate to be able to appoint Jeanette Irekvist as our Chief Commercial Officer. She brings many years of broad and deep experience from the technology -- international experience from the technology and telecom sector.

And we're not going to put too much pressure on that, but we are going to organize everything we do in how we touch the customers under one organization here and bring that forward to have a more predictable sales and growth prospect going forward.

We had 1 new order during the quarter. We had an additional order from the Swedish Defence Material Administration for additional mobile satellite terminals, which is a very good sign that the use cases are continued to be developed.

And we see that that is actually helping us also scale that part of the business with satellite terminals. I'll get back on that later.

In conjunction with bringing Jeanette Irekvist onboard, we have also established a number of strategic -- external strategic advisers that are helping us working through our go-to-market abilities in key markets such as Sweden, Nordic, Europe and the U.S.

So we're very pleased with that. They are treeing into the commercial organization to mobilize everything under one umbrella.

Let's turn to the order book. Order intake in the quarter was, as you can see, SEK 72 million attributable to the order from the Swedish Defence Material Administration of additional mobile satellite terminals.

The order intake for the rolling 12 months is -- corresponds to -- from U.S. dollars to Swedish almost SEK 1.4 billion. And the order book amounts to SEK 1 billion plus today.

So this is obviously very strong. You can see how the order book has developed here from Q3 a year ago to where we are in Q3 in 2025. Maybe something to mention here so we don't forget it.

Being in business to government takes a long time to sell and work with the customers to get contracts done. So we will likely see -- not see such a big order as we had with -- in May every quarter now.

But as we scale up, we believe that that is the possibility. We will likely see a number of string of pearls of orders coming in starting to build up a more predictable stream of orders, but we have a very strong order book that we are now delivering on.

I think it would be wrong of us and me not to mention why the financial results are as strong as Andre will show us in just a minute here. But it's all about delivering on our commitments.

It's all about operational execution. It's all about having an integrated model for how you actually deliver. So one way of growing, of course, is to sell a lot. But then as the business model works, you actually have to deliver on that.

So part of why we see the results we do today is that we have a superb model where we have third-party satellite capacity, the services layer, but we can mix and match that, of course, with our own satellite, Ovzon 3.

And we have done that during the period in this quarter as we ramped up the third-party capacity. And that can be -- you can see that in the margins that we are delivering now. And it also gives us a chance to actually utilize the asset of satellite capacity in as optimal of a way as possible.

And then, of course, it's about delivering the mobile satellite terminals that connect to the networks and uses the satellite capability that we have available for our customers. And we've had a very, very strong scale-up and delivery during Q2 and now Q3 with those terminals.

It's according to plan with all the contracts and commitments we have and we continue to then deliver according to that plan. So that's a little bit different. That's about resilience in the supply chain. That's about ordering components, assembly at the right time, quality assure and deliver to the customer at the right time.

So you -- I would say that I am very, very pleased with how our organization have a very predictable and reliable performance in terms of delivery. It's shown in the numbers. It's shown in how we operate.

And it also builds confidence with the customers. So we have the opportunity to continue to both deliver today, expand with current customers, renew contracts and also sell to new customers as this becomes a reference point.

And the defense industry suppliers -- as a defense industry supplier, I think it's incredibly important for us to deliver on time to meet the requirements for those mission-critical customers that we have. And we're very proud to do so in this quarter and we aim at continuing that journey going forward.

With that, I'll hand it over to you, Andre.

Thank you very much, Per. Okay. Let's look at the financials a bit more into details here then. I'll start with the revenue.

And as you can see, it has been increasing for a couple of quarters and it has definitely increased also in this quarter and then especially driven by our service revenue. As you can see, it really bumps up quite a lot in this quarter.

But also, we have solid delivery of terminals also in this quarter. We had a really strong Q2, but also now in Q3, it's at really good levels.

So it's very pleasing to see that we see an increase in the top line. But I think what's most important is to look at the services, which is kind of the foundation of our recurring revenues.

And to the right, you see here the graph of our run rate of service revenue. So it's basically the last quarter times 4, you see what is it on an annualized basis. And as you can see, it has really popped up quite a lot here in this quarter.

So that was the top line. Let's look at the profitability, which is way more important, I would say. And here, it's also very pleasing to see that it's improving and not only this quarter, it's actually improving for 6 quarters in a row now when it comes to EBITDA.

And that has to do that with, of course, that volumes are up, but it also has to do that we have a really healthy mix of income streams when it comes to that gross margin that they are producing. So both from our own satellite, but also from the lease capacity and then from the terminals as well.

So when you mix that together, you are at these kind of levels in EBITDA margins, which is 45% -- 47%. So it's very strong and you see it has been built up over a few quarters now.

If you look to the right here then you see the EBIT. So then when we have absorbed the depreciation on our satellite with the volumes we have now and the profitability we're generating, we are profitable also on EBIT level and has now been for 2 quarters in a row and has been improving for 4 quarters.

So also here, you see that it's consistent improvement that we're delivering. And you cannot see it here on the graph, but if you look into the report and look at the bottom line, the net profit and earnings per share, it's also improving and it has been now profitable for 2 quarters in a row. So we are delivering good here as well, I would say.

Okay. I'm moving over to cash and net debt. Starting with the cash flow from operations. I recall in the Q2 call that I was looking forward to show this Q3 number because we know that there will be prepayments coming in from customers and that you can see now in the Q3 that that has been delivered.

So really strong cash flow from operations. And since we are not investing heavily into a satellite, it's up there. It's been there for a year. All of that cash flow is almost running all the way down to the bank account, which then supports, as you can see, the net debt on the right-hand side here.

We have a strong cash position in the company. We have also amortized some of the debt while we did the refinancing, which I'll get into a bit more on the benefits of that. But that leads to a net debt that is significantly lower than what you have seen in the past. So it feels good to be CFO for this company for the time being.

Speaking about the refinancing, we signed and we completed this deal with Danske Bank then in -- during this quarter or during September. And it's not only lower cost what I will get into, but it's also a good solid foundation for us with some flexibility in this setup with the term loan and the revolving credit facility.

We have not drawn everything on the revolving credit facilities. We actually done some amortization in this quarter. But most important of all is that we now have an interest rate that is way much lower than what it has been in the past.

So it will from starting Q4. So we haven't actually seen it in the numbers yet. We have done it, but the impacts of it, you will see going forward.

And we're estimating it to be almost around SEK 70 million per year in reduced interest costs, which means that goes all the way down to the bottom line. So this is a profit booster, I would say.

And with that, I would like to hand it back to you, Per, for some summary and closing remarks.

Thank you, Andre. Excellent work, obviously. Well, Andre took us through the numbers. And as I alluded to when we started the presentation, of course, if we start on the lower right quadrant, the order book is very, very important.

But to point out here is that the order book actually now looks into 2027. So we have started to have this predictability of an order book to deliver upon. And I'll talk a little bit about it before we close for Q&A here as well.

But the order book is very, very strong. Of course, a company like ours, our ability to deliver, as I also talked about, is second to none. So you can win business and you can try to boost your sales, et cetera.

But if you cannot deliver your numbers, your revenue will not go up, your EBITDA will not go up and your operating cash flow, if you don't deliver, will actually not go up either. So if you look on these other 3 quadrants, we have this saying that you have to run a healthy core business, meaning deliver on your commitments.

You have to do it in a timely manner and high-quality manner to those customers we have that are dependent on that. So you can now see that we drive profitable growth in all aspects of profitability and revenue.

So it's not only about gathering revenue, it's also about driving profitability so we can both reinvest in the business and do other things with the profit that we generate. And of course, you can never run out of cash.

So it's all about finding those progressive business models, work with customers that you partner with that then you have smarter solutions with that you can actually deliver faster and better and then increase your cash position.

And of course, Andre and his team drove this project with refinancing. And as he noted, that hits on bottom line, but it also improves our ability to plan the business going forward.

So on all fronts there, very strong growth and continued improved profitability and an order book that looks into 2027.

Now before we close, I think we wanted to talk a little bit about the business model. Andre talked about this as well. But if you look on the picture to the right, there are 3 components to the integrated SATCOM solutions we deliver to our customers.

It's the terminals. That is a very discrete business. It requires a resilient supply chain. You have to do final assembly, you have to design and quality assure and then you have to deliver its logistics.

So it's a very physical value chain that is a necessity in our integrated service. The other part, of course, is to have enough satellite capacity, both third party and your own that you can mix and match for the best performance for the customer, but also for the best performance of the business, meaning growth and profitability.

And thirdly, it's about managing this on a 24/7 basis and not leave any customer behind. So our model for doing that is our center of excellence for global service delivery that we have. That in itself then drives the services revenue.

Andre talked about that as basically the platform for everything we do, the run rate we have. So every customer network we have generates monthly service revenue. Invoiced monthly, we deliver the service.

Profit goes through service margins. We can see that with utilization of Ovzon 3, the margins go up. But we have a mix of that and we can continue to have that going forward. And then positive cash flow and progressive payment terms, if you sign orders where they want faster delivery as customers, we can then invest earlier in our inventory and in our supply chain.

Very strong aspect of our business, important. And for every new customer we get, that lays on top and on top and on top. And the longer contracts we get, the more predictability we get on the services and margin side.

The terminals, as I said, the revenues and profits are generated when we deliver. So you have to be both just in time, but you have to be actually a little bit earlier. So you have to have good control over your financials in order to invest in a resilient supply chain.

And larger orders allows for more cost-effective supply chain and inventory, being ready to invest earlier to deliver earlier. And last but not least, it's all about the value to the customer and the customer satisfaction.

So longer-term contracts and ensuring that we deliver on our promises then helps us renew and it helps us to upsell and cross-sell. And then it helps us be more predictable in our planning, investment and scale up of the business.

So I don't think we've ever actually shown this as an understanding of how actually the revenues, the profits, the cost and the cash flow functions in that business model.

Going forward, we'll continue to do what this quarterly report has shown. It's all about delivering financial performance. And we do that by ensuring commercial success and the commercial success includes delivery on our promises as is the fundamental of this report.

And then we also work actively in scaling up, strengthening the structure, leadership, expanding, but also adding brilliant people to the mix and mixing people, processes and tools in order to scale up and to take -- to play the long game and to take longer and bigger contracts with customers that are in need of our solutions and capabilities.

And with that, if we go to the last slide, I think we want to thank our employees and our partners and our customers for working so closely together. That's why the results are what they are. We don't leave any stone unturned in order to deliver on the promises we make and that's going to help this company run a very healthy core business for years to come. So thank you very much.

Thank you, Per and Andre. And let's start -- move over to the Q&A. And first off is Simon Granath at ABG Sundal Collier.

And big congratulation on the strong numbers. I'd like to start on from a broader market perspective, could you share your thoughts on the current status in terms of satellite capacity? Is it fair to say that it's currently a scarce supply?

And if so given recent geopolitical tension, demand for SATCOM is certainly increasing. Does it mean that this dynamic help the pricing in the industry?

And that is a broad and deep question. So let's see if I can put my laser pointer maybe on a few answers to that question. So one, we don't see a scarce supply of satellite capacity.

However, the market changes somewhat. So there are mergers now. We have seen the big geostationary satellite providers such as Viasat and Inmarsat merge and also now SES and Intelsat now called SES as one company.

They have the majority of the geo satellites in space. Most of that has actually been used for media, broadcast, et cetera, et cetera. That's tilting more and more over to government as we have laid out here.

So I don't know that they necessarily will need all their capacity, which helps a buyer of third-party capacity to get access to capabilities and capacity at fair market prices.

So somewhat of a buyer's market there. I think we've been very fortunate and smart and good in how we have acquired that and how we have tied that satellite capacity to our customer contracts.

So we don't have a big inventory of that, that kind of burdens our results. So I think it's a mixed bag. A lot of things also move over to the low earth orbit satellite constellations, such as Starlink and OneWeb and Lightspeed by Telesat and others.

So more and more of the more generic connectivity capabilities are moving over to that and more and more of the geo is moving to more specialized, where we believe we have the leading position. And therefore, we also can get access both price-wise and capacity-wise to third-party capacity. I hope that answered the question somewhat.

It certainly did. As always, I appreciate the color for answer. Moving on, can you share your view on the FMV order going forward in terms of the mix and match between Ovzon 3 and the leased capacity?

Is it reasonable to expect some more leased capacity than what was the case in Q3 and perhaps slightly lower margins as such is reasonable, not taking any future orders in consideration, of course?

Yes, it's a very good question. And we both talked a little bit about the use of Ovzon 3 in any delivery really because if it's not sold and under contract with someone, we would like to utilize it when it adds a lot of value, both to our company economically, but also to the customer.

From September -- basically from end of September, we have all third-party capacity signed up for that delivery. So we will see that being used in that delivery. We also have a number of contracts that uses Ovzon 3 as well.

But we also are in continuous dialogue with a number of customers where we believe Ovzon 3 would fit well. So hopefully, the coming months here, we'll be able to utilize our own satellite in advanced customer contracts with others because we have enough third-party capacity to now deliver on that order that we got. I don't know if you want to add something.

But maybe just on your point there on the margin impact. I mean, since we now have those networks all up and running end of this quarter, we have that full cost base as well then. So it's make it easy for you to estimate where margins are heading.

Very clear. And on the U.S., about 1 year ago, the U.S. DoD bought some T7 terminals, a relatively large order. And now for some time, that entity has not been utilizing these given that there are no active SATCOM services.

So if we see a rebound in activity with that customer, I'm wondering, is it fair to assess that they lack of better words, have the platform, i.e., the terminals in place? Or should we expect the future order to comprise both more terminals and SATCOM?

It's a very good question. So let me answer it very sincerely and honestly. Absolutely, it's a strength for us that there is an inventory of highly capable Ovzon mobile satellite terminals.

They will most likely be used by the U.S. DoD and the U.S. in any future orders. But it depends a little bit on which part of the U.S. DoD. We are in dialogue with a number of parties.

Of course, the U.S. government shutdown slows down processes here a little bit. We're in discussion with a number of units where some will probably utilize what's already in inventory, but some will also add additional.

It is hard to predict exactly the volumes of that. That's part of our supply chain inventory work here. But there will be some terminal contracts, I think, in when we rewin the U.S. DoD, but it depends a little bit on which units within the U.S. DoD that are using it.

Makes perfect sense. And a follow-up on the terminal sales. The SATCOM backlog is certainly very strong. Could you share any details on the dynamics of the terminal backlog as well?

Yes. I think this is where scale-up is happening as we stand here and as we speak today, right? So you have followed the company quite a long time and many of our shareholders have as well.

We've been really good in doing just-in-time delivery. And now we're scaling it to very different volumes and levels. So we are actually working on how would we increase that ability, both in the supply chain of parts and how early we order.

We have a good backlog. We have delivered, as you have seen in Q2 and Q3 on the larger order we got from the Swedish Defence Material Administration. We still have a backlog of that that goes into next year in Q1, I believe, is the end point of that delivery.

And then for any additional orders, we have to build a little inventory, so we're not just empty, so to speak. So we're building an inventory because we believe we have some opportunities ahead of us that we don't want to be without terminals.

So we're both building inventory for delivery from now until end of Q1 and we're adding on for the opportunity we see going forward, not the full batch as it might be, but a portion of that and we continuously build that and track that on at least monthly basis for ourselves.

And I think if I do the math correctly, we had the FMV order of SEK 220 million in terminals and then we had this additional order of SEK 72 million. So almost SEK 300 million in terminals to be delivered.

And as you see -- saw in the presentation, we have delivered shy of SEK 194 million. So there's more to come. And it's actually then extended into '26 a bit longer than the first quarter since that add-on order had a little bit longer duration.

And maybe add to that also, that also gives us the ability to order and negotiate terms and so on for the subcomponents, et cetera, that we're using. So this is a pure scale-up game for us with a supply chain and production ability that might not be easy, but we're on it quite well, actually, and we have the experience on the team to do it.

Very encouraging stuff. A final question for me would be on the highlight in the report that you have engaged a number of strategic advisers in key markets. Is that usually how you gain footprint in new regions? Or should we not read too much into that?

I think it's a very, very good question. It's a delicate question actually. I think our model of going to market is basically to have people on our own team responsible for a geographical market or a specific customer group, right?

And we're building up that team now with new leadership and structure and focus on those geographical markets. However, when you win in a market like the one we are in, you have to touch a lot of stakeholders from the end users that want to know exactly how things work, you train them, you test and you trial and you show how it works both on unmanned and manned vehicles and with people and how you can build this integrated communication model for your unit or your organization.

But on top of that, you have to work both with the procurement agencies. You have to work with the -- in our case, mostly the defense leadership, the branches of defense and even the budgets that comes from the governments, et cetera. And in order to do so, you cannot expect one single person to cover all of those layers and aspects of business.

So the strategic advisers are there to support in specific markets and regions the approach to that market and helping us understand how they are different, how they're similar and how we should approach them to improve the speed of execution for our go-to-market.

And we move on. Many investors have order intake on their radar. Could you put some color to that?

Yes. I think this report talks about our ability to deliver. So that's very strong. We've repeated that now and we can see it in the numbers that Andre presented.

And of course, order intake is, you're not better than the last month or the last quarter of winning a contract and so on. Our market is -- takes time. Business to government is complex. As I laid out for Simon on his question, it's complex. It takes time.

You have to build trust. Trust is built and you have to educate in many cases. So it doesn't suit well for a quarterly snapshot of a mandate and so on. But the long game we're playing is to win all the essential countries and customers for our specialized integrated services.

So they take time. We have to roll with it. We have to have a strong financial engine in the company in order to win those longer-term, larger-term contracts. So we are not particularly worried about the order intake.

But it doesn't mean that we're not -- we're resting on our laurels. We're actually working our -- everything around the clock actually to -- in order to actually win more contracts in each of the quarters to come.

So that's part of why we strengthen also the go-to-market sales and commercial organization and business development organization with more people that can help us do that.

Okay. And there are some more questions from investors. How do you experience negotiation with the U.S. DoD under the current administration? When they are not locked down?

Yes. No, I think it's fair to say that we don't necessarily knock on the big door to get in. We are specialized. We know the organizations that have -- we think we know most of the organizations that have the greatest need.

So we go directly to them. And then we support them in building their internal business cases in going up the ladder to get budget allocations. So I think we don't necessarily see -- it's complex, right?

It's the government shutdown. There's no budgets floating, the administration is not working. The bureaucratic system is not working. So it's hard for our end customers to operate as well.

But we stay very close to them. We build partnership, we build dialogue, we build business cases. We use this time also to expand how we're going to use our capability -- how they're going to use our capability.

So I think we're probably avoiding a little bit of the noise and concentrated more on sniper approach to working with the real customer that has the real use cases. And I think that's going to take us to a better place eventually, but it's very unpredictable. You do not know when that is going to happen. But that's how we work it.

That's how it works. And when it comes to building an ecosystem, are Ovzon terminals locked to the Ovzon satellite services?

The Ovzon terminals are locked to the Ovzon satellite services and networks, yes. We don't sell terminals as stand-alone. There are other companies that do that. We don't sell them as stand-alone. We sell them only as part of our integrated circle of life solution. Yes.

And when it comes to the margins you were talking about using third-party capacity versus Ovzon 3, can you say anything on how much that difference is?

Well, there is a difference. I cannot get into the details of the actual difference. But of course, we don't have the leasing cost on our own satellites since we own it.

So that makes, of course, big difference. So there's a stronger margin in our own satellite, of course. But it also has required investments. So we need to have that covered, yes.

Of course. In September, you held your first ever Capital Markets Day and it was very interesting. I watched the whole thing. What was the key takeaways for the market during that day?

Thank you for listening in. And the whole -- we felt very good about doing this for the first time. We will continue to do it. We believe that the investor market wants it, needs it and we should provide more clarity on our direction.

The key takeaways, I would say, is what we've said here today. First, deliver on your promises. Second, really drive sales, more predictable sales and predictable order intake, larger contracts. So we have a good financial engine so we can reinvest in the business.

And the third component, I would say, is that how do we scale, how do we grow going forward? What's the prospect of that? So we laid out how we intend to proactively secure satellite capacity so we're not constrained by that, which include also plans for our own proprietary satellite capacity, meaning more satellites and also a little bit how we think about the financing of those because I think there is a way to do customer financing of those because of our specialized capability that is needed.

But we also believe that we can do that through a combination of our own cash and financial ability.

Okay. Speaking about...

Would you add something to that?

Well, I mean, it's -- the growth that we see ahead of us is both securing even more third-party capacity and then also looking into new satellites of our own. But to make that happen, of course, we've got to make sure that we have filled the first satellite that we have and then also have pre-capacity on a new agreement so don't go out with full market risk on those.

And again, come back to financing, I think it's -- as Per alluded to, there are probably customer interest that could be part of funding or funding the whole of it. But if not, I mean, given how the cash flow looks like and what we are projecting, I think we can cover a lot of it with our own cash and some loans as well, additional loans. So I mean, if we're going to do this, it's going to be in a controlled way.

On our own [indiscernible].

Okay. And Andre, while we're at it, you did the [ refinanciation ] that was very successful. What was the key reasons that you were able to come down that much on interest?

It's so many parts in this. I think, first of all, that just the trends in society when it comes to acknowledging that defense is actually part of being sustainable nowadays, realizing that makes society sustainable.

So that has opened up new doors. And then also planning this contract with FMV, of course, helped with visibility for us, but also for potential creditors. So going into those negotiations with numerous banks and then ending up with ones were very forward-leaning, I think that made the trick. It's not only about the cost. I mean, there are things that's got to match as well. So I think we're suited well now with this cooperation.

And new hire, you appointed a new Chief Commercial Officer, Jeanette Irekvist. What will she bring to the company?

First of all, this is a team sport. So we brought Andre on board a few months ago. We also have a strong team that has been with us for a very long time.

What we're trying to do is to build a very strong team with a dynamic experience, both broad and deep in technology, business to government, sales and delivery as well as different perspectives.

So I think we can be -- we're very specialized in a lot of things we do. But I think the broader sense of building a company and scaling a company requires experiences that are not only satellite industry or not only defense or not only -- it requires us to be very open.

So I'm trying to lead through leaders that bring that perspective, both those that we have had for a long time that are really, really good and bring new blood in with experience from international markets and business. And I think that's going to help us in the short, mid and long run to be very successful.

And one final question. What should investors look out for in the near future?

I think investors should continue to look upon us and demand from us that we continue to deliver on our commitments so that the financial results continue to be what they've been the last 2 quarters and especially this one. So that's our promise.

Secondly, I think the investors should look at us building up the order book so we have a more longer-term predictable ability to deliver. And thirdly, I think they should look upon us as being -- with the ambition to being the leader in advanced satellite communications globally.

Okay. That will end the interview for today, and I want to address the audience and thank you so much for joining us today. And most of all, Per and Andre, thank you so much for all your answers and your time.

Thank you, Mattias. It's been a pleasure. Thank you.

Thanks.