Prevas Stock

So looking into the second quarter of 2026 for Prevas. Prevas delivered a stable revenue performance in a quite cautious market. We delivered SEK 405.1 million versus last year of SEK 408.8 million. That equals a negative growth of 0.9%. The EBITA was clearly below our ambitions. The EBITA adjusted for restructuring was SEK 23.1 million, 5.7%. During this quarter, we have made several initiatives in the group to reach a more agile and efficient organization, for future profitable growth. And we have taken restructuring costs of a total of SEK 8 million during the quarter.

We also, during this quarter, had a negative EBITA in Finland that affected the EBITA, of course. And that was due to the restructuring costs we have taken for a change program, which I will come back to later on in the presentation. We had postponed projects in Finland and also low utilization. Excluding Finland, Prevas as a group delivered improved EBITA versus last year. We delivered, excluding Finland, 6.6% in EBITA for the second quarter. The reported EBITDA was 3.7%, equals to SEK 15.1 million. The operating cash flow continued to be strong. We've delivered SEK 42 million in operating cash flow for the quarter compared to last year of SEK 49.6 million.

EPS, SEK 0.50 versus last year, SEK 0.73. But all in all, if we look into the second quarter, it was clearly below our ambitions. And to be honest, I'm not satisfied with what we are delivering. The quarter was mainly impacted by Finland and the restructuring cost of SEK 8 million. We have taken necessary actions throughout the group to increase efficiency and to reach improved profitability and growth for the future.

Looking into the business in Prevas as a total, we can see that the underlying business continues to improve. We have a continuous trend with increased utilization in the group in major parts of the group, I would say. And that is -- that is driven by operational improvements that we have been doing. One example is that we -- during the first quarter and also affecting the second quarter, we had three business units in Malmo, Lund area that we merged into two focused units. We also closed an unprofitable unit in Malmo. We have worked with adaptions to demand in several units in order to adapt the workforce towards actual demands in order to increase the efficiency of Prevas as such. But that is one part, the operational improvements.

Another important part is that we are growing as well. We are growing in several areas in Prevas, like in AI-based vision system, a clear niche where we have a strong position. The core of Prevas embedded systems software development is growing in Prevas in total. We are growing in defense. We are growing in enterprise asset management systems. We're growing in smart production. So we have many areas in Prevas that actually are growing. So if you combine the operational improvements and actions we have taken in that area, combine that with the growth we see, that drives increased utilization that we also see in major parts in Prevas for the second quarter.

Looking into Denmark, as it previously informed, we had a slowdown in demand in the Life Science sector, and that affected our Danish unit. So we have reduced the number of employees in Denmark, taking those kinds of actions. We have also focused on sales and growth, especially in cybersecurity area and industrial dealers in Denmark. What we see now is that the actions and the focus we have taken gives effect. We see a trend that is positive in Denmark. We had a positive EBITA in June, which proves once again that we are going in the right direction in Denmark.

Another positive thing is that we see a slow recovery in the life science demand, which affects Denmark in a positive way. But all in all, the underlying business in Prevas is improving, and we see increased EBITA for the second quarter in for the Group, excluding Finland. And looking into Finland, what are we doing in Finland? What we're doing right now is that we are repositioning our Finland -- Finnish operations to improve profitability. I would like to zoom out a little bit to explain more the context around Finland. We made the acquisition of Enmac in 2024.

Since then, the market dynamics has changed quite dramatically. It has been a weak market with slow demand in Finland more or less since then and most particularly in the pulp and paper area for quite a long time. And one example in this is a customer called Valmet -- in 2024, Valmet was the single largest customer in Prevas -- Prevas, Finland. That customer is now negotiating for temporary layoffs of 2,400 people in Finland. That is 40% of the staff. And changes like this actually affects the demand for external services that Prevas are delivering to customers like Valmet.

So what we have been doing in Finland and the team has been working very hard with is to change and to adapt to this more changed market dynamics that we have seen. And we have had good progress for six consecutive quarters, but what we have seen with positive figures. But what we have seen is that the margins that we present, that we are delivering in Finland have been too low. So in Q2, we decided to implement a change program. What we see in the second quarter is also that the EBITA was actually negative. That was due to the cost for this change program, the restructuring cost connected to the Change Program, but also due to postponed investment from our customers and low utilization.

Coming back to the change program for Finland, what are we doing? We are revising our organization when we have new leadership in place for our largest units, the unit that we have seen the largest challenges connected to the change in the market. So this unit is now designed and set for growth and higher margins after this change program. We have been focusing on areas with growth like in the defense sector, in energy sector, in the nuclear area, where there are nice demand in Finland.

We focus on new sales to new customers as well on top of the present ones, of course. One good example there is within Internet of Things. We have signed a breakthrough order in that area towards a global industrial customer that is a new customer to Prevas. So we opened up a new account through this. And it's not a huge order, but it's a breakthrough order because it's in IoT, it's in data collection, and we are delivering services in Finland that we historically are very strong delivering in Denmark and in Sweden. But this was the first time that we now are entering this kind of business also in Finland. So that's also part of the logic when we acquired Enmac to take the strength that we have in the rest of Prevas, also implementing that into, to Finland. And that we now have a breakthrough order in that sense.

So I'm very happy for that, of course. Generally, we see effects of the things we do. We had a very strong order intake at the end of the second quarter in Finland, a total of SEK 55 million at the end of Q2, including major orders from defense customers and not the defense customers we had in the past, for new customers in the defense area in Finland. And of course, that is very positive for the future as well. Adding those SEK 55 million in orders to the total backlog, we see that the total order backlog for Finland is actually larger now than one year ago. So we enter the second half of the year with a very strong foundation.

We have a new efficient organization in place. We have a driven team that are very, very focused on delivering, and we have an increased order backlog for Finland. So I'm really looking forward to what our team in Finland will do for the forthcoming quarters.

So with this, I ask you, Helena, to review a little bit about the cash flow and the financial position in Prevas.

Thank you, Magnus. Cash flow from operating activities amounted to SEK 42 million in Q2 compared to SEK 50 million last year. The decline was mainly driven by a change in working capital, reflecting different billing terms in projects compared with the corresponding quarter last year. The overdraft facility of SEK 100 million was used with SEK 24 million end of the quarter. Cash at the end of the quarter amounted to SEK 1 million compared to SEK 17 million last year. Net debt in relation to EBITDA rolling 12 was 1.06x. Prevas financial goal is not to exceed two over time. Equity ratio was 49.8% compared to 48.4% last year. And with that, back to you again, Magnus, for some market updates.

Thank you very much, Helena. So looking into the market, we see that it's quite a flat development that we have seen for quite many quarters now in our business. We see a high variation between different industries, between different customers in terms of demand. But what also has continued in this quarter is the continued strong demand from the defense sector and also in the cybersecurity area.

A new thing for this quarter is that we see positive signals in Life Science. Life Science is a big part of Prevas. We have a strong position in life science. What we see now is that investment decisions are being taken in terms of R&D. And our -- what we see is that they take more decisions and they are more forward leaning in the life science area. And that is very important for Prevas into the future because we have a very strong position, supporting these customers in R&D. We also see that the funding for start-ups in this area is slowly picking up. It has been more or less dead for years. But now we see that start-ups is starting to get money also in the life science area. And that's also something that will help the demand for Prevas actually.

I'm also pleased to see that the market activity in Finland end of Q2 has increased. And generally speaking, I would say that we see some positive signs despite the continued uncertainty we have in the global economy as such. One thing is the Swedish PMI for manufacturing. That metric increased to 58.3% in June, and that is actually the highest level since 2022, and that is above the historical average for a longer period. And this is indicating increasing demands moving into the second half of 2026 and also '27. I've been in the business for many, many years. And my view is that there is a correlation between the PMI for manufacturing and the actual demand for engineering services, although there's a time lag before we actually see the effect in the consultancy industry. But for me, that is an early positive sign.

Also, the European PMI is also increasing actually. It's now above 50%, indicating growth as well. So as a summary, continued flat market development. We have a strong variation between different customers, different segments. We have a continued growth in defense, and we see some positive market signs.

A short view upon the growth in defense. For the second quarter, Prevas grew with 8% organically in the defense sector versus last year. The rolling 12 sales was around SEK 280 million, and that equals 17% of group sales. So we continue to grow in the defense area. We are growing on existing customers, but I'm very pleased to see that during this quarter, we also have signed new customers, if not a bunch of customers, but it's new customer in Sweden, Finland and Denmark in this quarter. It's not major orders for these customers, but it takes time to grow and you need to build the trust in the defense sector, all sectors, but most particularly, I would say, in the defense. And Prevas comes in with a strong heritage, strong references and now we're aiming also, of course, to come into new customers also in the defense area.

Then a little bit about some customer cases in Prevas. We signed a contract with Lunera Energi in Trondheim, Norway. A contract was -- the value for the first 6 years was SEK 20 million. This is an implementation of Octave Enterprise Asset Management. It's systems for improving asset management and maintenance in customers. And Octave is actually a part of Hexagon that was sold out from Hexagon. So our partnership with Hexagon is now a partnership with Octave instead. And what are we delivering to Lunera?

What we do is that we support the customer by optimizing maintenance operations within the customer, extending equipment lifespan and reducing costly downtime. So it's very profitable for the customer to work with these kinds of implementations that we support with from Prevas.

Another interesting case is Kahrs. It's a wooden tree manufacturer. In that case, we have delivered AI-based vision system for quality assurance, fully automized in production. And this is -- sounds easy, but it's not easy. It's actually truly complex, and it's possible now, thanks to the AI technology that we are implementing into this solution for this customer. So we have a clear connection with the rapid development in AI and new business in Prevas. And for the customer, what does this mean for the customer? They can maximize the value from each manufactured plank. So very positive. And I think these two cases, they are showing that Prevas are winning contracts in the strategic growth areas where we have strong positions, like in the AI area, vision area, like in defense, like in maintenance systems, et cetera.

So we see that where we have the strong position that Prevas continue to win contracts in those areas. And then a summary of the second quarter of 2026 for Prevas. Q2 was clearly below our ambitions. That was mainly due to Finland and restructuring costs. And these restructuring costs, we need to remember that. It's a consequence of the several actions we take in order to create a more focused and efficient Prevas in Finland and in the group for the future. So actually, in one way of thinking, we are investing in the future by doing these necessary actions in order to improve.

But it's also important to bear in mind that the underlying business in Prevas performs. The EBITA outside of Finland grew in Q2. We had a positive progress in Denmark, where we had a positive EBITA in June. So things are in motion. We continue to grow in the defense area, 8% of organic growth and now up to 17% of the total revenue of Prevas. And that is in an area where we continue to see strong demand. So we have a very good position in that area also for the rest of the year and all the years to come.

Prevas has a very solid financial position, as Helena was mentioning, and we generate a strong cash flow. This means that Prevas has the ability to take the actions that we need in order to build a long-term and a short-term fantastic company and enable future profitable growth. And as a summary, we now have an improved position for the second half of 2026. We have a more focused and more efficient organization in place. We have a stronger order backlog, especially in Finland. We have a continued growth in the defense area, and we have positive market signals in selected areas. As a summary, Prevas is entering the second half of the year in a much better position in order to improve our profitability and to reach growth. So for me, myself and my team, we already look forward to the autumn to show and to prove what we really can do in Prevas.

So with this, we move on to the Q&A session, and I hope and look forward to interesting questions this time as we normally have. Thank you very much.

Thank you, Magnus, for this presentation. We go further to the questions from the audience. What does management turnover in Finland look like? Is the challenging performance related to a significant number of senior managers having left the company?

No. Actually, it is like this. The turnover in our management team in Finland is very, very low. The core team that came in through the acquisition remains, and they are also shareholders. So we have a very stable management team in Finland. And the challenge we have in Finland is related to the market development as such, not to the -- that what can happen in the consultancy industry that you acquire a company and the team that managed the company disappears. And that is not the case in Finland. We have a strong management team very committed.

You mentioned that conditions are improving in the Life Science sector. What share of your revenue comes from Life Science? And how do you expect that to develop going forward?

Thank you. Very good question. The share of revenue to Life Science was 13% in the second quarter. So it is an important segment for us at Prevas. Regarding the future development, of course, it's quite hard for me to judge. But as I mentioned in the presentation, we see positive signs. We see that our customers take decisions for new R&D-related projects, which is positive for Prevas. And we also see that funding for start-ups is coming back again in this area. So all in all, we see positive signals. But as I said, it's difficult to judge the future in that sense.

Why did the telecom segment grew by 38% during the quarter?

Yes, it was -- it's not a big segment for Prevas. So the percentage changes are quite big. The reason for that was that we had a large order that we delivered on for automation to a data center project in Sweden.

You mentioned that you plan to recruit, which areas or competencies are you recruiting for?

We are actually recruiting in many parts of Prevas right now and in more or less -- not all of the competencies we have, but many of the different competencies we have in Prevas. Specifically, we see demands in like cybersecurity, in embedded systems. We have a very strong position in AI vision systems. We look for engineers with those kinds of experience as well, automation, electrical and power engineering and design. So in quite many areas, we see needs to recruit in Prevas right now.

Okay. Enmac had an EBIT margin of minus 16%. What happened with the turnaround in Finland? Could you -- could this became even worse?

So take the question again.

Enmac had EBIT margin of 16% -- minus 16%. What happened with the turnaround in Finland? Could this become even worse?

I put it like this. The turnaround in Finland, we -- as I said in the presentation, in 2024 when we came in, there was one kind of market situation. And then we had a very big change in the dynamics in Finland, which has affected our Finnish operation in that sense. And after that, we have been working quite hard to turn around the company. And we have also for six consecutive quarters, delivered positive EBITA. But what we have seen in Finland that we have not reached the profitability levels that we want to have in Prevas.

So we decided to make a change program in Prevas in order to set the structure for long-term profitability in Finland. And looking into the second half of the year, we come into the second half with a new and lean and efficient organization and a very high order stock as well. So in that sense, it's a very good foundation to come back to profitability ASAP in Finland. So I don't see this as a free fall. I see this as a necessary investment we do in order to put Finland back on track for long term.

One other question about Finland. How quickly do you expect the new changes to have an effect? And the SEK 55 million in new orders signed in Finland in June, what is the typical lead time from signed order to recognized revenue?

The typical lead time for orders like that can be quite short actually. In these cases, we will see effect directly after the vacation period. So we will come back to situation in Finland where we have work to do. So the team will start up with new projects. So that will affect the situation immediately after the vacation period. And then you had -- there were two questions. What was the first question?

The first question was how quickly do you expect the new changes to have effect in Finland?

The changes will start to affect immediately after vacation period. And then, of course, gradually during the second half of the year. But I expect that we will have a good progress rapidly in Finland after vacation.

Can you give more detail on the lack of revenue growth? Defense has been strong and Finland is relatively small percentage of sales. So where has the other weaknesses been?

It's actually a consequence that we have made decisions to optimize our organization. So we have reduced with, for example, in the southern parts of Sweden, where we have closed unprofitable unit and merged three units into two units. And as an effect of that, we also discontinued some business with very low or -- not negative margin, but very low margins. So that affects the revenue growth for the first -- for this second quarter as well.

And one last question before summer holiday, Magnus. Have all restructuring costs now been recognized? Or should we expect additional restructuring costs going forward?

We will not see the same magnitude of restructuring costs moving forward into the second half of 2026. Although in Prevas, this is an integrated part of what we do. So we will always work with efficiency in our organization, but I don't foresee restructuring costs for the second half of the year at the same magnitude as we had in the first half of the year.

So in that sense, we have taken the absolute majority in that sense of the restructuring costs.

Thank you, Magnus. And please, have you any final remarks for the audience for this quarter results?

Yes. The final part, I think from my point of view, what we have done is that we have now worked for the first half of the year with optimizing Prevas, we have set up a more lean organization, an efficient organization, combining that also with that we see that the market activity starts to move and especially in Finland, we come in the second half with a strong order stock, which, of course, will influence our ability to make a good progress in the second half of the year.

And one final part as well, I would like to thank all of you for listening and also that you should have a very great summer. Thank you.

Thank you.

Hello, and welcome to today's presentation with Prevas. With us presenting today, we have the CEO, Magnus Welen; and CFO, Helena Burstrom. [Operator Instructions] And with that said, please go ahead with your presentation.

Thank you very much. Hello, everybody. My name is Magnus Welen, and I am the CEO of Prevas, and I welcome you to the presentation of the Q1 results for Prevas. The agenda for this short meeting looks like this. We will start with this introduction, then we will have a review of our financial performance for the first quarter. We will have a market update and finalize this meeting with a Q&A session. And I hope that you will bring in some interesting questions for us after the presentation. So how did we perform in the first quarter of 2026? During the quarter, we saw a stable revenue performance in a continued cautious market environment. We had a negative growth of around minus 1% and organically minus 2.9%.

The positive part for this quarter is that we see a continued profitability trend that goes upwards. Adjusted for restructuring costs, we delivered an EBITA margin of 9.3% for this quarter. The reported EBITA margin was SEK 35.7 million, which is in line with last year and EBITA margin of 8.4%, also that in line with last year. Another positive part for this quarter is that we, for the sixth consecutive quarter in a row, saw a positive development in Finland, where we had an EBITA of SEK 2.4 million compared to last year of SEK 0.6 million. So that means that we continue the positive development we have seen in Finland for quite a time right now. Looking into the operative cash flow, we can see that it was SEK 10.8 million for the quarter compared to SEK 32.2 million last year, and this was impacted by working capital effects due to larger engagements. Helena will review this more in detail later on in the presentation.

Looking into the EPS, we can see a decrease from SEK 1.75 to SEK 1.57, and that was mainly due to negative currency effects on loans that we have in euros. And of course, the underlying reason is that the euro and the SEK ratio has changed during this quarter. So all in all, I believe that we and Prevas during the first quarter has taken positive steps in the right direction to improve profitability, even though we still are in a present very cautious market. And if we zoom out a little bit, we can see that Prevas is a company focused to grow with profit. You can see that on this graph, where you see the rolling 12 figures that we have a continued growth in the company, although we can see that we have been flattening out in this cautious market we have seen during '25 and also start of '26.

Looking into the EBITA and EBITA margins, we can see that we now for 3 quarters in a row has performed increased EBITA or the same level of EBITA as the year before. So now we are in a different trend compared to what we have seen in the -- for 2024. So that, I believe, is a good step forward as well.

So with this, I leave to Helena to review a little bit more in detail related to our cash flow and our financial position.

Thank you, Magnus. Cash flow from our operating activities amounted to SEK 11 million in Q1, representing a decrease of SEK 21 million compared with the same period last year. The decline was mainly driven by a change in working capital, reflecting a different project mix compared to last year. The overdraft facility of SEK 100 million remained fully unused end of Q1. Cash at the end of the quarter amounted to SEK 10 million. And net debt in relation to [ EBITDA ] rolling 12 was 0.89, and our financial goal is not to [ exceed ] 2x over time. Equity ratio amounted to 53.1%. We have a strong balance sheet, and we have a solid financial position.

And with that, Magnus, I hand over to you again.

Thank you very much, Helena. I would like to spend a few minutes related to the development in Finland. As I said, we have now 6 quarters of improved results in Finland. And for the first quarter, we grew from SEK 0.6 million to SEK 2.4 million in EBITA. And also that comes with 5% of organic growth. But in Finland, we now see that the short-term uncertainty has increased. We see that decisions for investments has been pushed forward, especially late in the first quarter, we see this effect that we believe has a connection to the uncertainties we see globally in the world as well with the recent terrible wars in Iran, for example. And that is influencing Finland more than the rest of Prevas as our Finnish operation is more focused on projects that goes for investments.

But with this said, we see also that the general demand remains solid for our niche offerings in Finland and also for projects where we are more niche offerings. So in that -- those parts of Finland, we continue to see a solid demand as well. And what we focus in Finland right now is, of course, very strong sales focus to meet this quite competitive market that we see in Finland, but also this increased short-term uncertainty. And our way to meet that is, of course, to focus on sales. But I'm very pleased to see the long-term development in Finland and the Finnish team are working extremely hard in order to reach the expected margins that we want to see in Finland over time. Then a little bit of market update.

Looking at the market, we see a continued cautious market with high variation between industries and also customers in terms of demand. What we also continue to see is a very strong demand from the defense area, but also in cybersecurity, which is positive for Prevas. In Denmark, we see a slow market. We believe that, that is connected to the issues that Novo Nordisk have with the big downsizing activities that they have taken, which influences the general engineering market in Denmark. We see delayed decision-makings. We see projects pushed forward. So in Denmark, it's quite a tough situation right now. On the other hand, we see a trend where we see improved utilization in many of Prevas units, I would say, in Sweden. This drives actually organic growth and increased EBITA versus last year in those units.

And in those units where we see demands, we are now recruiting in selected areas towards the demands that we see, although, of course, we are balancing this expansion also with the profitability and the risk. But anyhow, we are in the recruitment mode in many of the units in Prevas. So if we summarize the market, we see -- we continue to see a cautious market, but also we see areas in the market with strong demands like in defense. Then I'm very happy to announce that we have signed a record contract within Enterprise Asset Management.

It's in Norway with a huge customer. We have signed a contract of total SEK 80 million with the implementation of HxGN EAM in order to improve this customers' way of working with their assets, with their maintenance. So it's a very exciting project for us at Prevas. It's the largest one we have ever signed, and it's a long-term partnership. In this case, it's 12 years of contract, including a recurring revenue of around 25% because in this kind of business, we also have license sales, we have support and other areas, not only consultancy services as such. So I'm very proud to be able to announce this today. Looking into the defense area, the first quarter 2026, we saw that the sales in defense grew with 22% and rolling 12, we now are at SEK 275 million in turnover towards the defense sector. And that is equal to 70% of the total group sales. And last year, that was 14%.

So in the areas where we see potential, we are growing in Prevas. A few words about AI. It's on everybody's map right now, of course, but also in Prevas. We use AI tools daily across Prevas. We work with it internally with our internal processes within finance, within HR. That is one part. But the big part is that we work with AI tools and AI-supported efficiency increases when we deliver to customers. The main area we see right now is within AI-supported coding, where we see clear efficiency increases in several use cases for customers. So this is a positive drive in Prevas right now. Generally speaking, when we talk about AI and the effect of AI upon our business, we see that Prevas strong domain expertise and our long-term customer relationships, we have been working with customers -- some of our customers since 1985.

If you combine the domain expertise, the long-term customer relationships and our expertise in delivering very complex solutions, we actually see that when we combine this with these efficient AI tools that we strengthen our competitive positioning in the market. We also see something new lately is that these new technologies actually open up new customer demands and new opportunities because we in Prevas, we are very keen, of course, on adapting new technology. And one area where we see this very clearly is in with AI vision systems that we have been working with in Prevas that we are working with in Prevas. One example is we work with a manufacturer of wooden floors. And we have implemented a solution to have an automized quality control of floor manufacturing. And this is organic matter, and we need to measure it on different layers in order to be able to do this quality assurance in a proper way. This was not possible a year or 2 years ago.

But now with a modern technology based on AI, we have the ability to solve new problems. So all in all, from Prevas point of view, we work intensively to adapt to AI and to see this as a huge potential for Prevas moving into the future. Then I would like to spend a few words about our transformation we work with in order to reach our financial targets. We are in a very cautious market right now and have been for a certain period of time. And that means that we need to be extremely agile. During the first quarter, we have taken the decision to restructure our business in the southern parts of Sweden. We are moving from 3 business units to 2 focused business units. This means that we will exit nonprofitable unit in Malmö. In the quarter, we have also made downsizing in Denmark in order to meet the reduced demand we see in Denmark right now. So we are taking the necessary actions in order to improve so we can reach our financial targets even in a cautious market.

The restructuring costs for the first quarter was SEK 3.8 million that we have taken in our financial results for the first quarter. The full effect of these actions will be from H2 in 2026. And I would like to emphasize that we will continue always to work with our internal efficiency and to be agile and adapted to the changes in the market. That is very important for Prevas moving into the future. And then a summary of the first quarter of 2026. I believe that we have taken clear steps toward our long-term profitability targets. The underlying EBITA for the first quarter was 9.3% and the reported was 8.4%. So we are moving in the right direction in terms of profitability. We signed a record contract within Enterprise Asset Management with a total contract value of SEK 80 million, which I believe is fantastic. For the sixth consecutive quarter in a row, we had positive trend in Finland in terms of [ EBITA ], also very good.

And we continue to take the necessary action to improve performance in units that do not meet our targets. And this, we will, of course, continue with -- it's a never-ending story to work with improvement of performance in Prevas. That is important for us. During the quarter, we saw a strong growth in defense. We had plus 22% in turnover versus the first quarter of 2025. So this means also that the defense customers, they trust us in Prevas and they give us more and more and more business over time. All in all, as Helena was mentioning, we have a solid financial position. We have a good strong market position. So in my book, we are well positioned for the remainder of 2026. And this was the final slide of this presentation.

And now I hope that we can have a lot of interesting questions from all of you. So thank you very much for listening.

Thank you very much, Magnus and Helena, for that presentation. And now let's open up the Q&A.

[Operator Instructions] And we'll start with the first question here. Could you please further explain the restructuring costs related to Denmark and Skåne and what operational changes you have done more specifically?

Yes. This -- the cost in the quarter was SEK 3.8 million, and that is due to that we have restructured. We went from 3 units in Skane to 2 units. One unit is focusing on advanced test and measurement systems. And one unit is focusing on -- is a development house, OIM Sweden AB, a part of Prevas working with complete R&D development projects. So we have focused our offering to the customers with this change. So that is one part. And the other part we have done also is downsizing in Denmark as well to reduce the workforce actually in order to meet the lower demand and maintain our cost base versus the market. And as a consequence of this, the number of employees has decreased in the Southern unit, of course, because when we closed this unprofitable unit in Malmö.

And a follow-up question to that. Should we expect additional restructuring costs in Q2?

We will continue to work with restructuring also in Q2. So yes, we will have some costs related to restructuring in Q2 as well.

Thank you. What are the key growth drivers for Prevas in Q1 in 2026?

The key growth drivers. I would say that the key driver for growth in the first quarter has been in the defense industry as we grew with 22% within the defense area, that is absolutely the main growth driver for Prevas in the first quarter. And we -- for the defense industry, we have been working in both our main areas, production development when we help the customer to grow capacity in the defense area, but also working within R&D, product development and other areas where Prevas are a strong company. So I would say the main driver is the defense industry in the first quarter.

Could you give us more information about how past acquisitions performed and how full your pipeline is now?

Yes. We have made a number of acquisitions over the years. And generally speaking, I would say that they have performed well. Then, of course, we have some of our acquisitions that have performed less well and some that are really, really stars. So generally speaking, my view is that we have been very good in acquiring good companies with a good cultural fit into Prevas that add additional value to our customers. So generally speaking, my view is that our acquisitions have performed well, generally speaking, with some, of course, some stars and some less good, but that is the way it works, I would say. So yes, I think that was a summary.

Thank you. And with the Iran war, Greentech is looking a little more promising. What's Prevas' exposure here? And how are you able to grow if it really picks up?

We didn't -- could you repeat the question?

Of course, of course. With Iran war, [ Greentech ] is looking a little more promising. What's Prevas' exposure here? And how are you able to grow if it really picks up?

Yes. Thank you. That was a very good question because as you say, given the Iran war and the situation regarding oil supply in the world, that might actually restart the Greentech revolution. And I would say that Prevas is very well positioned in energy area, but also especially in Greentech. One example is that we're working within the steel industry and supporting the steel industry to increase the efficiency for heat treatment of steel using more environmental-friendly solutions. And that, of course, will sort of be even more interesting moving into the future. So I would say that we have a strong position in green tech in that sense in Prevas. So it's an opportunity for us. And I hope to be honest, that we will move into a more green change in the climate for the future because it's important for all of us.

Thank you, Magnus. And I believe you already answered this, but maybe you could add some more color. How do you view current geopolitical tensions, including the situation in the Middle East? And does it affect your business at all? And what's your risk exposure here?

It is affecting the world because the uncertainty in the world has increased given the geopolitical situation. And as I mentioned, in Finland, we see that the decisions for investments are pushed forward, especially at the end of the first quarter, we saw that effect. So I would say, yes, we have seen some impact on Prevas in the short term, but in the first quarter, very minor. Then, of course, moving into the future, who knows, but we are an agile company, and we are very close to our customers. So of course, we monitor the development very close in order to be agile when and if we see any changes in that sense. But for the first quarter, a very minor effect, and we monitor this very closely together with our customers.

Thank you. We take one final question here. How do you view the opportunities for acquisitions in today's market?

As we mentioned in the presentation, we have a strong balance sheet, and we have made a number of acquisitions historically. And we have a good pipeline of candidates for acquisitions right now as well. So I see a positive view on acquisitions moving into -- continuing into 2026, and we have candidates that we are working with in that sense. But I would like to emphasize as well, we will not make acquisitions that is not truly in line with our strategy, our culture, our targets. So it's more important for us that it's really, really good acquisitions with a perfect fit in [ Prevas ] just for the sake of it. Hope just to create growth in that sense. So we are working very hard in this area as well related to acquisitions. So a long answer to a short question, yes, we have a good pipeline and we continue to work with acquisitions, yes.

Thank you, Magnus. And that concludes today's Q&A here. Thank you very much both for presenting with us here today, and wish you all a great rest of the day. Thank you.

Thank you all for listening and good questions. Thank you. Bye-bye.

Hello, and welcome to today's webcast with Prevas. With us presenting today, we have the CEO, Magnus Welen; and CFO, Helena Burstrom. [Operator Instructions] And with that said, please go ahead with your presentation.

Thank you very much, and welcome all to this presentation of the Q4 results for Prevas. This meeting today will follow this agenda. We will start with a short introduction. We will review Prevas's financial performance. We will have a market update and finalize this meeting with a Q&A session.

Okay. Looking into Q4 of 2025, how did Prevas perform? We actually made a quite stable revenue performance. We had a negative organic growth of minus 1.7%, and we had a positive growth due to acquisitions of 1.8%. So the net sales were slightly above last year for the quarter. Looking into the profits, we can see that Prevas has increased the profit from 32.6% last year up to SEK 35.1 million in 2025. This equals to an EBITA margin of 8.1% compared to last year of 7.5%.

And what is the underlying reasons for this improvement? One big part is that we, for the fifth consecutive quarter, improved the EBITA in Finland from last year SEK 0.1 million up to SEK 3.3 million in 2025. This is one part of the reason for the improvement, but also, of course, it's a result of all the actions that we take in Prevas in order to increase the efficiency. We have made numerous actions in 2025.

What we also see in Q4 is that the operating cash flow continues to be strong in Prevas. We delivered a cash flow of SEK 40.6 million, which if you compare it to the EBIT of SEK 35.1 million, really shows that we have the ability to create a strong cash flow in Prevas.

The Board is proposing a dividend of SEK 4.0 for 2025. This equals to 73% of the profit after tax for 2025, which actually is higher than our financial target of 40% to 60% over time. So all in all, I believe that we take -- we have during Q4, taking a good step forward in the progress of Prevas.

And then if we look into the year 2025, we can see that Prevas has performed a revenue of SEK 1.6 billion. That equals a growth for the year of 2.5% and an EBITDA of 7.5%. We also see that we continue to have a strong cash flow. So the operative cash flow for the year has also increased up to SEK 144 million -- almost SEK 144 million.

In my book, this year shows that Prevas has the ability to navigate in a more difficult market. During this year, we have seen quite tough market conditions, and we have really taken a lot of action in order to mitigate and to adapt Prevas and find new opportunities to -- also to meet when we see reduced demand. So all in all, for the year, 2.5% growth and 7.5% of EBITDA.

If we zoom out a little bit, we can see on the sales side that Prevas is continuing to grow, even though at a slow rate in 2025 due to the conditions that we have been in. But if we zoom out a little bit more, in 5 years, Prevas has more than doubled the net sales from SEK 772 million in 2020 up to SEK 1,627 billion in 2025. It's more than double the size of Prevas in 5 years. And of course, our strategy moving forward is to continue to deliver profitable growth.

Looking into the EBITA and the EBITA margins, you can see that on the other side of this slide. We can see that during H2, Q3 and Q4, we have a positive trend. We are actually higher than last year Q3 and Q4, which, of course, is very positive. Looking into H2 as a total, we have grown the EBITA with 10.2% compared to last year. So all in all, I believe we are moving in the right way with Prevas.

And with this, I would like you, Helena, to talk a little bit more in detail related to the cash flow and our financial position in Prevas.

Thank you, Magnus. Cash flow from operating activities increased by SEK 7 million to SEK 144 million for the full year. Cash flow from operating activities in Q4 amounts to SEK 41 million. The differences in investment activities and financing activities compared with previous year are mainly explained by the acquisition in Finland 2024. Cash flow for the period increased both in Q4 and for the full year versus 2024.

The overdraft facility of SEK 100 million remained fully unused. Cash at the end of the quarter amounted to SEK 21 million compared to SEK 44 million last year. We do have a strong balance sheet and a solid financial position that will support our continued growth journey. And with that, I hand over to you again, Magnus.

Thank you, Helena. You were mentioning Finland. And I would like to give you all an update of the progress we have done in Finland in Q4 of 2025. This is, as I said, the fifth quarter in a row with a positive trend in Finland. For this quarter, we actually had 19% organic growth and increased EBITDA from SEK 0.1 million up to SEK 3.3 million. It's been a tremendous change in Finland. And this is, of course, a consequence of the actions that we have taken.

We have reorganized the organization in Finland. We have adapted our workforce slightly. We have also increased the sales focus quite dramatically in Finland. What we see now for the Q3 and Q4 in 2025 is that the mix of the business has also changed. We see a higher share of project business, which impacts EBITDA positively.

And looking into the future, we can also see that we have larger projects that we will deliver in Q1 and Q2. So I'm positive that we will continue to have a good development in Finland moving into 2026 as well. Looking into the market, it's still competitive. It's still a quite tough market in Finland, although we have some positive signals. But generally speaking, my view is that we still have a very competitive situation in Finland.

And then a little bit about the general market update. What we see -- what we saw in Q4 2025 was more or less a similar market as we have had for the complete year 2025. We have very strong demands in defense sector, in cybersecurity. And outside of that, it's very different because we have some customers with increasing demand, some customers with decreasing demand. So it's been a significant variation in customer-specific demands also in Q4.

During the quarter, we have also seen a slowdown in Denmark due to, I would say, mainly the effect of Novo Nordisk that has now reduced with 5,000 employees in Denmark, that is affecting the industry. The direct effect for Prevas is quite small, but indirect effect when it comes out, a lot of engineers in the market, of course, affect us one way or the other.

And what are we doing in order to meet this slowdown in Denmark? We have taken actions. We have now decided in Q4 to make a restructuring so that we will adapt our organization to the actual market needs in order to reach good healthy EBITDA levels as well. We have signed some orders for Q1. The market is not standing still, but it's still quite challenging in Denmark.

Looking into Stockholm area, we have seen slightly improved market actually, where we have seen that the utilization levels for our largest region, Stockholm has increased at the end of 2025. So that is a positive sign, I would say, that we see a progress in Stockholm.

Looking into the industry breakdown, I would like to spend a few seconds related to that as well. What we see here is that defense has increased from 11% up to 16%. Energy has increased from 10% up to 12%. So it's been -- in those 2 areas, we have seen quite good increases. But we also have areas within Prevas -- within the different segments where we have reduced the portion of our sales.

Looking into Automotive and Transport has gone from 8% down to 6%. Steel and Minerals has been decreasing as well. And for me, this shows Prevas's ability to be agile in the market because we have a good proportion of the different segments, and we have the ability to change from areas with low demand to areas with increased demand. So I think this is a very good view of the situation for Prevas.

Then I would also like to emphasize that we have a very strong customer retention in Prevas. What do I mean with customer retention is that we have been working with our customers for a long time. Some of our customers we have had and we have been working with since 1985. 28 of the top 30 customers we have in Prevas are recurring. This means that they come back -- we had them as a customer in '24, we have them as a customer in '25. And that is the normal way of doing business in Prevas to have a strong customer attention. We have customers that come back and buy from us year by year by year. And that is, of course, due to the trust and the relationship that we have built with these customers over time.

But that is one thing to keep the customers we have and to grow on present customers, but you also need to have the ability to actually acquire new customers. And in 2025, Prevas acquired over 100 new customers that we have not had relationships before. And they equals an invoicing of SEK 100 million for 2025. And this, for me, proves that we have the ability to be very agile, and it's a fantastic platform moving into 2026 with strong customer retention and also many new customers that we can continue to grow also when we move into 2026.

Then a few minutes related to the defense industry. In Q4, we actually grew organically with 31% towards the security and defense customers in Prevas. You can see on the graph that we went from more or less like SEK 65 million in turnover in 2020 up to SEK 260 million in 2025. So we have a tremendous growth in the security area.

And also with these customers, we have been working with them for many, many years, even when it wasn't so piped in that sense, when the demand was lower, we continue to have a strategic partnership with defense customers. And of course, we can benefit of that relationship now in a situation like this when our defense -- important defense industry is growing a lot.

And what is the major challenge that our defense customer face? It's to increase capacity and to handle the rapid technological development. It happens a lot in the defense industry. And what are we supplying to our customers? We support these customers with actually their major challenges. We are helping them to increase production capacity to invest in new equipment in test systems and increase the production machinery, et cetera, in order to increase capacity for the increased demand we see -- that they see in the market.

And we also have a very strong delivery to these customers within R&D, where the technological expertise that Prevas has within vision systems, with embedded systems, with the software, et cetera, is a very good fit and support these customers in their journey as well. And we will continue to prioritize defense also in 2026.

One thing you might wonder is where are the reference cases. The thing is that I can't actually tell you more in detail what we do for this company because these customers, they have extremely high safety demands and regulatory demands for what they do. And so we can't tell in detail what we do for these customers.

Then a few reference cases. What are we actually doing in Prevas. Now I talked a lot about figures, about EBIT, but the thing is Prevas is actually about what we perform, the value we deliver to our customers. One customer is Foodhills. It's a company working with pea production. You know peas, yes. We have developed a production system for peas that take care of from sowing to harvest and also to production.

This system is actually integrated with [ SMHoi, ] and that means that we are gathering weather data from different databases in order to optimize the fields to optimize when to sow, when to harvest. So this is a fantastic system we have built together with Foodhills. And this old system is also handling the production planning, the order system for sorting, packaging and freezing. So this is an excellent case, I would say, that Prevas has been working with.

Another company we work for is CTC. They're working with heat pumps, and we have delivered a test and simulation system for them. We have delivered control and monitoring software, sensors and hardware for data collection. It's 2 climate chambers, a power control unit, extensive water circuit with tanks, valves, pumps, heat exchanger, et cetera.

With this system, the customer can actually simulate seasons, temperature, humidity and other environmental parameters to optimize their products. So once again, we use advanced technology to do good things. Bjorneborg Steel is another good example where we have built a scalable production control system, a MES system for steel manufacturing. We gather real-time data to support the customer to take the right decisions and improve efficiency in that company as well.

Last but not least, we're working with a customer called Haglunds. They are a Swedish-based company developing and delivering professional refrigerators. And we have been working with industrial design of their latest release. And we actually received together with this Haglund company, a Red Dot Award and also Grand Award of Design for the design work that Prevas has done for Haglunds.

So next time you go into a fancy restaurant, take a glance into the kitchen. When you see the brand Haglunds, you can think Prevas is inside once again. So these were a few reference cases of what we actually do in Prevas.

Summary of the fourth quarter of 2025. We managed to increase the EBITDA with 8% versus last year. This is the second quarter in a row when we are increasing the EBITDA compared to last year. So we have actually, so to say, turned the trend and now we are moving in a positive direction for Q3 and Q4.

I'm also very pleased to see the development in Finland, where we once again increased the EBITDA substantially from last year SEK 0.1 million to up to SEK 3.3 million. And also, we see a 19% organic growth in Finland. So the team in Finland are now on the right track. It's very, very pleasing for me to see this.

We also had a strong growth in defense, plus 31% versus Q4 of 2024. So we continue to grow in the defense area. We have a solid financial and market position moving into 2026, which means that we have the financial position to actually look into opportunities like within M&A, for example, which we continue to search for different prospects. And we have quite a good pipeline as well in that area as well into 2026.

So all in all, I would say that we made good progress in Q4 for Prevas. We are on the right track. We're moving in the right direction, but I'm not satisfied because we're not meeting the financial targets of Prevas. So we have a journey ahead of us, but we are taking the right steps moving forward into 2026.

And that was the actual short presentation of the Q4, and now we move into the Q&A session, which I hope that you all join in and have some nice questions as well. So thank you very much for listening to this presentation.

Thank you very much, Magnus and Helena for that presentation. And yes, let's open up the Q&A section here. [Operator Instructions] And we have a caller in from ABG. We have Dafina Shehu.

I have a few questions. First, on cost. Could you explain more in detail what actions you've taken and how you think about the cost base going forward?

Regarding cost base, the major cost we have in Prevas is actually personnel. It's the absolute majority of our cost. And what we have done in 2025 is that we have been adapting our workforce related to the actual demands. And the consequence of that is, of course, the reduced cost base. But you should also remember when the market is turning and we are growing, then we will add cost because we will employ more people as well. So -- but that is one thing we have been doing with the cost.

But we have also been very cost conscious during the year as well in order to keep the general cost, so to say, on a low level as well. We have been -- we have not taken the same kind of conferences that we have done in the past and reducing costs in all different manners in order to maintain and fight for the decent margins that we have performed.

Okay. And on pricing in Q4, have you seen any change in market behavior? Or is pricing pressure largely unchanged?

I would say that the situation is rather unchanged because the market has still been quite tough. But overall, we have been able to slowly, slowly increase prices in Prevas, although at a very low rate.

Yes. And lastly, on defense, which continues to grow and is an exciting segment for you. Could you say a few words about typical project sizes, contract lengths and how this segment differs from the rest of the business?

Actually, I would say in many different aspects, it's quite similar because one part is when we run projects, it could be the customer needs to increase the capacity in a plant, then we can support them with actual delivery of production equipment. We support them with a project in order to actually deliver physical equipment and solutions for the increasing capacity. So that is one part. It's more project-based. And that can be from quite small, a couple of millions up to maybe like SEK 20 million, SEK 30 million or something like that for one project. So that is one part of the business.

Another part of the business is more general consultancy. And in that sense, it's very similar to other parts of Prevas as well where we have time and material consultancy services on site. And in those, you have the contract length, it's normally like 3 months, 6 months. But generally speaking, for the defense industry, the assignments we have are very long. So when you actually get into the defense industry, you normally have a very long assignment.

And then also, we run development projects from in-house projects for defense. And in those areas, it's a service we deliver. So it's not a product or a machine or equipment, but it's general engineering services shaped as a project. And those can be quite big as well in terms of number of hours. So it can be like 5,000 hours, 10,000 hours. So it's quite many millions actually in those projects as well. So we actually have many different ways of delivering to the defense industry.

And now let's move on to the written questions that we have received. Starting with the first one. How do you view future growth and potential acquisitions?

The strategy of Prevas is to grow with profits. The profitability is our main priority. But of course, we need to grow and we want to grow the company as well. And we see -- in the strategy, we have organic growth, but also to grow through acquisitions. And we work actively with acquisitions as well. And we have a pipe of M&A candidates all the time because it's quite long processes as well to build this pipe of interested candidates for M&A. So we work actively with M&A in Prevas right now as well, yes.

We'll move on to the next question here. Your proposed dividend exceeds your previously communicated dividend policy. What's the reasoning behind this?

Yes. Actually, the Board is proposing 73% of the net profit of 2025. It's correct. It's above the financial targets we have of 40% to 60%. And the rationale for this is that we have a solid financial platform. We have a solid balance sheet. We have very good cash conversion, very strong cash flow in Prevas. And also the Board has a very high confidence in our ability over time to generate profit and growth in the future.

Thank you. And we'll take one final question here before wrapping up. What are your priorities moving forward?

Our priority is to work on the profitability of the company. I'm not satisfied with the profit levels we have right now. So our top priority is to increase profit in the company. When we are reaching more healthy EBITDA margins, of course, we will aim for growth as well.

And that concludes this Q&A. Thank you very much, Magnus and Helena for presenting with us here today, and I wish you all a great rest of the day. Thank you very much.

Thank you. Bye-bye.

[Audio Gap] CEO, Magnus Welén; and CFO, Helena Burström, will present the report for the third quarter of 2025. [Operator Instructions] And with that said, I hand over the word to you, Magnus.

Thank you very much. Hello, everybody, and welcome to the presentation of the Q2 -- Q3 results of Prevas. My name is Magnus Welén, and I'm the CEO of Prevas. And with me today, I have...

Helena Burström, CFO.

And this meeting, we have -- here, we have a brief agenda of this meeting. We will start with a short introduction. We will review the financial performance of Prevas for the third quarter. We will have a review of the market, and then we'll finalize this session with a Q&A session. So looking into the third quarter 2025. Prevas has performed a moderate growth for this quarter. We delivered a net sales of SEK 355.2 million compared to last year of SEK 351.9 million. That equals a growth of around 1%. Out of this, acquisitions is 2% positive growth, and then we have reduced organic growth with minus 1%. So more or less, in total, we are on 1% growth for the third quarter.

Looking into the profit, I'm very glad actually to see that we now are increasing profit and EPS compared to last year. We are delivering an EBITA of SEK 30.0 million compared to last year of SEK 26.5 million. That equals a growth of 13% of EBITA. And we're reaching an EBITA margin of 8.4%, which is better than last year's 7.5%. And the main reason that we see this kind of increase is it is a result of all the actions we have taken in order to adapt Prevas to the present market situation, all the efforts we have made in terms of focusing on sales. So a lot of actions now is giving results also in the profit, which, of course, is very, very positive.

The majority -- the largest part of the increase is actually due to improved margins and profits in Finland. I will come back more in detail to that on the slide later on in the presentation. The operating cash flow for the month was SEK 21.3 million compared to last year of minus SEK 6.7 million. That is also, of course, a positive part for the Q3 results. And most important, of course, is the EPS. And what we see is that the EPS, the earnings per share increased to SEK 1.34 compared to last year, SEK 0.75. That is actually an increase of 79%. So all in all, if we accumulate the year, Q1 to Q3, Prevas is performing a 3.5% net sales growth with a 7.2% of EBITA.

And I'm very pleased to see that we now see that the actions and the hard work we are doing actually also shows in the figures. And then if we go more into the details, we can see that the EBIT for Q3 was SEK 26.1 million compared to last year of SEK 17.9 million. That is an improvement of 46%. And the reason that we see a big deviation in EBIT compared to [ EBITA ], a better improvement is that last year, we had quite high costs related to the acquisition of Enmac. That is explaining the increase in [ EBITA ] that was stronger than the [ EBITDA ] result. We can also move forward then to see -- if we zoom out a little bit, we can see that the net sales of Prevas over time is increasing. Prevas are growing. I looked into the figures and looking into 2020, the net sales for Prevas was SEK 771 million.

And now rolling 12, we are more than double the size. So Prevas is more -- has grown more than -- we are double -- more than double the size we were in 2020, and we continue to grow. We have also grown in this quite challenging market climate that we have seen right now, and we see that for a period of time. Looking into the EBITA and EBITA margins, you can see in the other graph that we have had a quite tough time, and we've been working very hard in Prevas in order to take the necessary action to adapt to the market, to the quite challenging market that we have seen. And you also see in Q2 that we also took some extraordinary costs related to restructuring in order to increase the efficiency of Prevas to the present situation.

What we see in Q3 now, if you look into this graph is that actually Q3 was better than Q3 of 2024 and more or less in line with '23. And I think this is a very positive signal. And as you can see that the EBITA margin is also increasing. So with this, Helena, could you explain a little bit more about the financial position for Prevas?

Yes, absolutely, Magnus. And as mentioned previously, we have had an increase in operating activities with SEK 28 million compared to last year. And this is mainly driven by a stronger result. Working capital contributed positively, improving by approximately [ SEK 19 million ], primarily due to decreased accounts receivable, lower personnel-related liabilities and higher accounts payable compared to the same period last year. In previous year, cash flow was negatively impacted as well by a calendar effect. Cash flow from investment activities decreased by SEK 170 million compared to the same quarter last year. This quarter, the acquisition of OIM impacted cash flow by SEK 17 million, while last year figures reflect the acquisition in Finland.

Cash flow from financing activities decreased with SEK 121 million compared to last year, affecting cash flow negatively compared to corresponding period last year. And last year, a loan related to the acquisition of Enmac in Finland was recognized. The overdraft facility of SEK 100 million were unused at quarter end compared to last quarter -- last year, SEK 10 million, and the cash at quarter end was SEK 7 million. Prevas remains well below the financial target, maximum 2x EBITDA and net debt in relation to EBITDA is 1.06x. And equity ratio amounts to 50% in Q3 2025. In all, Prevas had a strong balance sheet and a solid financial situation. So back to you again, Magnus.

Okay. Thank you, Helena, for updating about the financial position of Prevas. Now I would like to spend some time explaining more what has happened in Finland. What we see in Finland is extremely positive development. And why is that? The reason is that we have been working very hard. Our great Finnish team has been working. They have taken action. We have reorganized the organization in Finland. We have worked with temporary layoffs. We have worked with cost reductions. We have also reduced the staff in some areas. All of this in order to increase the efficiency of the operation in Finland. But we have also, and that is more important, focused a lot on sales.

And what we see now is the effect of all of this hard work that this team has been working with in Finland, all the actions we have taken is now showing off also in the figures. This is actually the fourth quarter in a row where we see a positive development in terms of EBIT in the Finnish operation. Actually, for the third quarter of 2025, Finland delivers 8.9% of EBITA and a 34% of organic growth. That is impressive and a very good step forward. It is not according to our financial target of 12%, but it's a good step forward. And for me, it proves that the great team we have in Finland, they have the capability and the ability to deliver. That is extremely important. But why then, more concrete, why can we see this kind of increase?

We see now that we have a higher share of project business in Finland. Our team in Finland, they are very, very good in running larger projects where we work with engineering, where we work with design, we work -- we also buy the material, and we also do commissioning of different solutions in Finland. And what we see now is actually the effect that when we ramp up projects like that in the Finnish operation. We right now are running project, for example, for Syklo in Finland, Syklo Oy, where we have the responsibility. They are building a new plant, a new manufacturing line within the recycling business, and Prevas is responsible for designing the control system, installing control system for this new manufacturing line.

Very, very good. Another big project we run right now in Finland is for the defense industry. Of course, I can't tell you what it is. But it's a very, very interesting project for our engineers, also bring a very high value to this defense customer we're working with in Finland. What we have seen during a number of quarters as well is a positive development in terms of the order backlog. This is in a very competitive market, and the business climate in Prevas is not superb. It's still a tough market. But thanks to the efforts this team has been doing, we have slowly, slowly, gradually increasing the order backlog into a more normal situation for the Finnish operation.

So that is very positive. We also now recruit in some of the specific areas in Finland where we have orders, and we need to recruit more people in order to deliver that. But generally speaking, the market in Finland is still very tough. So this increase, I would say, is not thanks to a huge increase in the business climate. It's more a result and a consequence of the actions taken by our great team in Finland. Then a little bit of view on the market. What we see in the market today is a very strong demand in the defense area and in the energy area. And looking into defense, as you can see in the industry breakdown, defense now is 15% of the total turnover of Prevas. So that is an improvement compared to last year of 13%.

Actually, the growth in Q3 has been increasing, and we delivered a growth of 33% in net sales to the defense industry in the third quarter. So it's a quite strong growth in that area where we see the demands. We are also growing in the energy area and the portion of our sales today are 12% for Q1 to Q3 compared to last year, 10%. So also in energy, we are growing. What we see is generally a flat market with quite high uncertainty. And we also have a significant variation in customer-specific demand. Some customers are growing. Some customers are very reluctant. They're pushing decisions forward. So it's a very dynamic market in that sense. And I wouldn't say that I see a strong upturn, and I don't see a big downturn.

So it's a quite stable market in that sense. What we see is a slowdown in Denmark, and that is related to one company, I would say, mainly, it's Novo Nordisk. Novo Nordisk is not a huge customer for Prevas, but we see that the effects in the industry in Denmark is quite dependent on Novo Nordisk. Now when they are reducing, they are saving money and reducing staff in Denmark. That -- so what we see now in Denmark is a slowdown. I would say that's mainly driven by the reductions that are done by Novo Nordisk because in that area, it's a little bit more tough. Then we see some positive signals as well from the export industry, some of the export companies, not the automotive industry.

As you know, Volvo Cars has been reducing quite substantially. So in that area, we do not see positive signals. But from other companies working on the export markets from the Nordic, there we see some positive signals. We can look into -- wait, I forgot one thing actually. What we also see positive signals from is actually within the life science area. We have some customers we've been working with for many, many years. And what we see now in at least 2 of our main customers in life science is that they are increasing the spend in R&D. That is a good signal, and that affects Prevas in a positive way. And also, you can see in this slide that the 5 largest customers in Prevas, Saab, Ericsson, ABB, Hitachi and Sandvik, they are less than 25% of our total turnover.

And as I know that you all that listen to this presentation, you are also listening to other companies' presentation, all of these have delivered quite good Q3 report as well. So there are some positive signals, although it's not a big upturn in the business, but we see some positive signals. Generally speaking, the demand for complex solution where Prevas really comes to its best, that remains strong in the market as such. We also still see a quite high competition in some parts of the market, for example, within the software area and general IT, it's not a big part of Prevas, but we still see that there are high competition in those areas.

So all in all, a flat market development, but there are areas that are growing rapidly like in the defense area, and we work agile, and we are growing in the areas where we see the demands. Talking about growth, I would like to explain to you a little bit about EAM in Prevas. EAM is enterprise asset management. Prevas has a strategy to grow in unique niches where we are creating unique value for our customers. EAM is one of those areas in Prevas where we have a unique niche. In this area, we are talking about value-creating asset management. We are a partner with Hexagon. Hexagon is developing and selling, I would say, the best software for EAM in the world. And they are partnering up with us for the Nordic market, and we are actually a value-added reseller for Hexagon.

This means that we are not only delivering expert services for implementation, but we're also a reseller of licenses. And in order to facilitate this area and to grow more rapidly, we have now shaped a Nordic organization. That means that we have people from different regions in Prevas that we have gathered together into a strong Nordic organization in order to enable a faster growth in this very, very interesting area. Recently, we have received quite large orders in this niche area from Nscale. Nscale, for example, that is a company building data centers for AI, growing rapidly on a global basis. It's a U.K. company. We have received order from Green Cargo for working with EAM implementation and more efficient maintenance within the train industry.

Trafikverket is another big order we received together with Chas, it's a partner of ours. Sysav is another -- is the fourth company that we received orders from, and they are working within the recycling area in the south of Sweden. So all in all, we see a good order intake in this niche area, and we look forward to continued growth. And why is this important? Then you might wonder, this is an area with a higher margin than the regular part of -- the average of Prevas. That is one reason. Another reason is our unique niche competence and the strong strategic partnership we have with Hexagon. And also the third reason is that when we have these orders, they are on a 3-year basis or 5-year basis because we are implementing changes and the software and then we have the responsibility over quite a long time in order to partner up with the customers.

So it's long-term projects and also a part is recurring revenue. So a very interesting initiative that we are focusing right now moving into 2026. Then I would like to talk a little bit about AI. It's on -- everybody is talking about AI. What we do in AI in Prevas, we have a quite broad adoption. We are working with AI in support and increasing the productivity in software coding and test. We're working with agents, coding tools, et cetera, to increase the productivity. We also work with AI for our -- using the large language models for documentation, for analysis, review of legal agreements, et cetera. So quite broad use in Prevas. But that is one part. But when it really, really gets interesting is when we use AI to bring customer value to our customers.

And I would like to explain to you a little bit about a case for a company called SweTree Technologies. SweTree, they have developed a method for somatic embryogenesis. It's a technique in which embryos are grown from tree cells in automated bioreactors. We have developed a solution based on a platform called Prevas Intelligent Vision Platform to quickly identify the most viable embryos using AI and vision. In order to sort them, they are extremely small, I promise you that. So we use image treatment in order to sort which ones, then we have built an automation in order to actually do the physical picking. And actually, these plants are then cultivated into strong disease-resistant tree seedlings. It's fantastic. It's amazing.

And this case is so great because it combines everything that Prevas is about using advanced technology for doing good. We are combining the fantastic expertise of SweTree working with somatic embryos with AI, with advanced vision systems, with robotics and automation. It's magic. It's a very good case. We are working with a customer in power supply. It's a customer that has developed systems in the past for power supply. It's critical systems, and they need to run with a very, very high upturn. In this case, the customer has a legacy code, 35,000 lines of code actually in this case, and they needed to move into a modern platform with this code and also adding new functionality to the code.

And in this case, we have been working with code agents and code tools based on AI to do this work. And what we see now is that the models has improved so much. So actually, we are using these coding tools to increase productivity also in cases where we have very extremely high demands. And the reason that we can do that is that we have the domain knowledge in this area. And in this case, we see productivity increases of 50%. So it's a massive increase in productivity using AI, and we work with it all over Prevas right now. We also have internal initiatives to spread the knowledge and experience within Prevas to be better, so to say. And my view is that Prevas is very well positioned moving into the future, also utilizing the possibilities within AI.

We have the domain knowledge. We have worked with these customers since 1985 in some areas. So we are a trusted partner, and we have the senior expertise needed in order to utilize these kinds of tools for industrial purposes. So we look forward to grow in the AI area as well moving into the future. All right. And then a summary for the third quarter. I'm very pleased to see that we are increasing the EBITA, 13% better than last year as a direct consequence of the actions that we have taken of the sales focus that we have. And of course, thanks to all the fantastic customers that we are working with. I'm also very pleased to see the progress we make in Finland.

Now the Finnish team have proven that they can and they will deliver. For the third quarter, they delivered 8.9% of EBITA and grew 34% organically. That is impressive. I'm also proud to say that we are agile in Prevas. In this quarter, we actually increased our net sales to the defense industry with 33% versus last year. It's a good step forward. And it also proves that we are an agile company, and we are adapting and we are taking the actions needed in order to be strong also in a more difficult market climate. I'm glad to see that the integration of OIM Sweden now is up and running. We consolidated the company and the team into Prevas from July 1, and we have already made new business together. We're starting to learn each other and to find new possibilities together.

So the acquisition of OIM that we announced has now been consolidated and integrated into Prevas, and we're working together on new opportunities. And as Helena was mentioning, Prevas has a solid financial position. So we are ready to act on possibilities that pops up in a market situation like we have today. But all in all, I believe we made good progress in Q3. I'm not satisfied when we do not meet our financial targets, but we work hard, and we will continue to improve in Prevas for the future as well. So I look forward to the fourth quarter and also, of course, to 2026, which is very close right now. And with this, I would like to move into the Q&A session, and I hope that you have a lot of interesting questions for us. Thank you.

Thank you so much for the presentation there. And as you mentioned, we will now carry on with the Q&A session. [Operator Instructions] But with that said, we start off with some questions that has been sent to us. And the first one is, can you comment on how you're adapting your workforce and operational focus across segments, especially in those showing the strongest growth like defense and cybersecurity?

Yes, I can comment on that. What we are doing is actually that we are working across the regions we have in Prevas. So when we work, for example, with the defense industry, we have offices that is quite low from a geographic point of view to some of these customers. But in order to grow, we're utilizing the complete network of Prevas in order to be able to take in larger projects. So that is one way that we work in order to be agile and to grow in the areas where we see -- where we actually see the demands.

Finland delivered strong organic growth and a turnaround in margins. Could you explain on what drove this mix shift toward more project deliveries and whatever you expected the trend to continue?

Yes. I will start with answering that we do not give forecasts. So I can't actually give a forecast of the progress and how it will look in the future in Finland. But what I can say is that we have a very good trend in Finland and had that for 4 quarters. We have a fantastic team working very hard in order to adapt into the very -- quite tough market we see in Finland. So I'm -- in that sense, I'm very positive because we have a good team, and I'm very glad to see that for this quarter that they have now also delivered financially.

Have you noticed any shift in the market recently, for example, around demand pricing or customer willingness to initiate new projects?

I wish I could say yes. Now we have the turnaround. Now we have the high demands. Now it's happening. And I wouldn't say that we see that. It's not a bad market, but it's quite stable. As I said in the presentation, it's quite dynamic. Some customers are doing very well. Some customers are very reluctant. So my view is that I don't see any big trend shifts actually right now. But given the signals we see from the reports from the -- you can see the stock market development, there are -- and also [indiscernible] index, these indicator -- key indicators, they are showing actually a positive trend, but we still need to see it in the actual demands in a stronger way before I can say that we see a big upturn.

How has Prevas managed to increase its profitability despite relatively modest revenue growth during the third quarter of 2025?

That is a consequence of the work we have been doing before this quarter, I would say, because we have been working in optimizing our workforce to the actual demands. That is one part of it. And we have a very strong cost control in Prevas, very strong actually right now in order to really, really focus on operational efficiency in order to improve the margins. I would say that is the majority of the background that we see an increase this quarter.

In Q2, you mentioned you were optimizing with personnel away from low demand sectors. Is it a lot more to do when it comes to the right amount of people in the right segments right now?

I would say, put it like this. This is a normal part of our business to always be agile and always adapt. And we -- as I said, the market is quite dynamic. So I can't promise that we don't do any more changes because I can promise you that we will do more changes. That is a normal way of how we do business. And we will continue to optimize our operations all the time. But yes, so the answer is we will continue to work with improving our efficiency all the time.

Moving on to the last question here. What is the strategic significance of the acquisition of OIM Sweden and the partnership with Syklo for strengthening Prevas' future market position within the medtech, cleantech and sustainable industry?

Oh, that was a long question.

Yes, pretty long one.

But we can start with OIM. OIM is a great team working with product development. It's a development house working for medtech customers from idea through all the different industrial design, the mechanical engineering, the embedded systems, also compliance, and they have ISO 13485, which means that they have the ability to develop medtech products. And that is, from a strategic point of view, very important for Prevas to have this kind of capability. We have it in Prevas in the past, but we strengthened our position dramatically with the acquisition of this team, OIM. So that was one part of the question. And the other part, could you repeat that, please?

Yes, of course. The other part was, could you -- what is -- I can take it all once from top. What is the strategic significance of the acquisition of OIM and the partnership with Syklo for strengthening Prevas' future market position within medtech, cleantech and sustainable industry?

Yes. Take Syklo as an example. This is a company working within the recycling industry. And in that sense, we are strengthening our position as we are building reference cases in the industry. And that, of course, is positive for the future. So in that sense, working with customers like this, also this company in the south of Sweden, Sysav is also a recycling company that we will work with in the future. So we have a position. But as it works, you need to deliver, you need to build references and then you can continue to grow and strengthen your market position. So that is how at least we work in Prevas. And that's why I think it's so important with those cases like Syklo.

Thank you, Magnus. That was the last question we had. So thank you so much, Magnus and Helena, for presenting here today, and thank you all for tuning in. We wish you a pleasant weekend when it starts.

Thank you very much. Bye-bye, everybody.