Alimak Group AB (publ)

thank you and welcome everyone to our quarter 4 25 call and as always i have silva with me here turning page yeah recapping the group a little bit we are a diversified global industrial group focusing on vertical access and a leader in this segments that we are focusing on We have some fundamental drivers supporting our business like urbanization, electrification, regionalization, robotization also with our movable platforms and health and safety. Strong presence, long history, which means we have a lot of installed base around the world, which is great for our service business, which is a fundamental piece of each division. And we also run with the Capital Light operation, which means that it's a solid financial business. Turning page, our strategy. We started 2020 with what we call the new heights and that has served us well. And this is also what we talked more about in the Capital Market Day a couple of months ago. And we are now into the second phase of this and stronger profitable growth in the coming years. Turning page, we also upped our financial targets last time we spoke, and we have an average annual revenue growth target of 8 to 12%. And we also said that we should reach 20% adjusted to the beta margin by 2028. And also relevant for today, it's our dividend payout ratio policy of 40 to 60%. Turning page, so diving into Q4. yeah so happy to see we are continuing with a strong organic growth for the group but also a little bit disappointing with mixed profit performance in the quarter But the strategy continues to work well. We have four out of five divisions with strong organic growth. Facade access up 18%, HSBS 14%, wind 72%, and also industrial 4% in the quarter. While then, very disappointing, was construction, of course, which is down 29%, but driven by entirely by the difficult market condition. And also affecting the group heavily still, which has done for a couple of quarters, is the currency effect, the strengthening of the SEC. So in the quarter, we had negative impact of 9% on order intake, which is for 158 million SEC, but also significant negative impact on the beta of 26 million SEC in the quarter and also significant affect full year. EBITDA margin 16.8, disappointing as you understand. And again, construction is the one that pulls this heavily down, but also multiple smaller things within several divisions, which didn't provide any help in the quarter. But strong financial position and cash flow was 276 million SEK, giving a leverage of 176. Turning page, looking briefly at the full year. So, yeah, and, you know, we have delivered, I think, a strong order intake also for the full year. It's up 8%. even though it's been a challenging market from an external point of view. We have had many headwinds and one is the currency effect that Joste talked about. We also had the US tariffs which have impacted demand during the year and of course this global construction market which is remaining difficult. we also had the wind market which delayed order intake over a couple of quarters that the u.s administration put pressure on on that market but something we now see is has changed um and also full year four out of five divisions show strong organic growth on order intake hsps up six percent facade access 14 industrial 15 win 17 while construction division is then down 10 percent Happy to see that we're also lifting margin, even though, of course, we entered the year believing and feeling confident we should be able to do more. But with everything around us, I think it's been a year of consolidation and we've also continued to invest and we are absolutely ready for moving forward and taking the group to the next level. Strong financial position, which means that the board of directors propose a dividend of 3.3 sec, which is up 10% to last year. Turning page. Details of Q4, order intake was 1,808,000,000 sec, down 2% or up 6% organic. Good contributions then from facade excess, wind, HSPS, but also wind growing. Weak in construction, revenue was 1,692,000,000 SEK, down 7% or up 1% organic. And here it was HSPS and construction, which contributed positively in the quarter while we saw a decrease in facade excess and wind. Adjusted the beta, 284 down from 320, giving this margin of 16.8 versus 17.6. 11% decline year over year and here 8% is due to the currency but also of course the weak margin in construction and also in HSPS. Turning page, service remains to be of course a fundamental thing for the group for all divisions and order intake decreased by 5% but 4% organic increase to 604 million SEK Organic growth was driven by facade access, industrial and wind. Revenue decreased 8% flat organically to 658 million SEK and we saw good performance in wind and industrial. For the full year, organic order intake increased 4% and revenue increased 7%. Turning page, facade excess, order intake was 511 million SEC, up 6% or 18% of constant currency, so strong order intake. And also a positive book to bill here, which is the first time we have seen in some quarters, so it's a very good sign. We had good momentum in the Middle East. We saw refurbishment in Netherlands and also UK. We saw good momentum in the quarter. North America continued to do well for us, mostly driven by all our great initiatives with integrated design services, low complexity solutions, and also on the infrastructure side with a nice variation order in the nuclear segment. Revenue was 447 million SEK, down 15% or down 5% in constant rates, and it's reflecting the lower order intake in the previous quarters. EBITDA at 68 million SEK down from 82 giving still a strong margin of 15.1 versus 15.7 and it was a high comparable towards last year so I'm happy with this margin and yeah somewhat reduced fixed cost of observation due to lower revenue but also supported well by our continued operational improvements. Turning page. So the BMU market continues to be somewhat challenging and we only take what we really are comfortable with from contract and the margin perspective. But we had some nice wins in the quarter, especially in Asia. and then it's the strategy we drive with integrated design services infrastructure and also triple r or aftermarket which is continuing to also bring very nice orders for us and yeah positive outlook going forward Optimized manufacturing is also, of course, something that has been on our agenda for a while, as you know, and we are now in where we finalized the improvement and the cost down in the Coxcomull factory in Spain. And this is something that will also support us now into 2026 and onwards. We in addition made a cost of 40 million SEK related to closing down of one legacy project which has been painful and overall you could say you know historically the situation with facade access has been a bit painful but I'm very happy to see that we have very good progress in in fixing this division and operationally we are really on the on a good move now turning page construction again a challenging quarter and it's what we see that the willingness from our customers on the rental side and also on the construction companies for to drive capex investments into machinery when they're Yards are not fully utilized as it is, that's of course very difficult and also in the last quarter it was also the aftermarket was lower because machines are standing in the backyard and thereby underutilized. So order intake was 300 million SEK down 36% or 29% at constant rates. Revenue was 380 million SEK, down 5% or up 5% constant rates and supported by previously booked orders, but also some light equipment projects in UK and US. EBITDA at 36 million SEK, down from 44, giving a margin of 9.4 versus the 11.1. And the decline was primarily driven by the lower revenue, but also some negative mix effect. And this is, of course, well below what we would like to see and believe that this business can deliver. But in the current revenue situation, it is what it is. Turning page, we are continuing to drive and that's also what has been the essential piece of this division like with any other division since we started New Heights to take control of our own destiny. So we have focused heavily on product development, being closer to customers and driving new solutions and this has served us well. So if it hadn't been for this, the situation in the division would have been much worse as we speak. And we see some nice successes now coming on the SDS 300, the scaffolding transportation system. We are launching a new work platform also. And also in the quarter, we have changed EVPs. I'm very happy to have Karin Båte appointed as our new head of construction division. And she will start on April 7th. I would also like to mention that we start to see some few positive signs in the European market, not so far in the North American market, but in the European market and in the Nordics, we see and hear that some of the rental customers start to get back capex budgets. So there are some positive signs to maybe that we are at the bottom point of where we see the construction business. Turning page, height safety productivity solution, very pleasing to see, strong order intake after two soft quarters, meaning that our transformation works, but it's still a lot more to do here. Order intake was 358 million sec, up 6% or 14% organic. We had strong momentum in the Middle East and India on the elevator segments, but also North American market was good. uh we continue to see a challenging construction market and specifically in in europe which is then also affecting order intake negatively revenue was 312 million sec down two percent or up six percent organic and influenced by the software order intake in the previous quarters the beta 47 million sec down from 56 giving a margin of 15 versus 17.5 and the multiple effects and favorable product mix we have increased investments in product development marketing and sales and we also had some one-offs in the quarter putting pressure on the on the margin Turning page full speed in the transformation of this business. And really, as you know, it's been resilient from a profit perspective, but not growing. So that's what we are driving. And that also means some disturbance, of course, inside the organization and investment. So we are reorganizing sales that's ongoing both in Europe, in North America, and it's about getting closer and more aggressive in the market. We focus heavily on where we see high potential segments. We accelerate product development, more products in the making to come to be launched very soon. And we also, of course, drive operational improvement projects like lean in the factories to ensure that we also utilize our resources in the most effective way. And of course, we win some nice ones, and that's also good to see. Turning page, industrial. Order intake 439 million sec at 1% or 4% organic. We had strong equipment order intake in America's Asia Pacific, but offset by some timing of some projects in Europe. Several projects, one within power, mining, oil and gas. So these are strong segments for us and continue to be. And we also had a stable aftermarket in the quarter. Revenue, 415 million SEK, down 2%, up 1% organic. Solid equipment deliveries, despite some project delays. EBITDA at 1 of 6. Million SEC down from 108, giving Stril a very strong margin of 25.5 versus 25.7. slightly diluted by some mix effects but also put under a little bit pressure from the century acquisition which as you know we said was according to group margin levels but not fully at industrial margin levels so that's something we feel comfortable we will be able to lift and the important contribution going forward turning page We focus on also here, you know, taking control and mining and Latin America has been an important focus for the division as many other things. And very nice to see we are investing and it's also paying off. We are also investing, of course, in the aftermarket and have launched a new e-learning for operators, which would also generate more revenue streams within the aftermarket going forward. Turning page to wind. Very strong order intake after two softer quarters and the order intake was 209 million sec up 59% or 72% at constant rates. Strong recovery in US and also solid performance in Europe. APEC continued to be important and high performing for us. And here we also clearly see we are taking market share gains, working with our strong Chinese partners in the Asian market. Revenue was 150 million SEC, down 10% or down 2% at constant rates. And it's reflecting the lower order intake in the previous quarters. And that was again put under pressure due to the US administration. EBITDA at 28 million SEC down from 29, but giving a strong margin of 18.7 versus 17.4. And again, supported by excellent operational activities with price management, cost management, and operational efficiency. While at the same time, we continue strong investments in R&D. Turning page, the wind, the market globally going forward is being slowly and steadily pushed upward. So it looks good in the years to come. This will remain an important energy source. And we put high pressure, of course, on developing products and solutions. It's a market very automotive driven, where it's a cost down pressure from our customers all the time. So we need to really be on our toes, and that's what's really also making us great, because we are able to do that in a good way. With that, we turn page to profit and loss, and I hand over to Sylvain.

Thank you very much, Ulle. Good morning, everybody. So in the quarter, adjusted EBITDA decreased by 11%, 3% organically, while revenue decreased by 7% and grew slightly organically. So we see a quarterly adjusted EBITDA evolution, which is slightly worse than the revenue evolution, and that is primarily driven by the lesser absorption of SG&A costs. And I'll come to that on the next slide. I'd like to mention that on a yearly basis, adjusted EBITDA performs slightly better than revenue. And so we see a small margin expansion to 17.4%, although that is still short of our expectations. Items affecting comparability in the quarter relate to the Facade Access Division. The main component, 40 million SEC, is a non-recurring loss with respect to the last remaining legacy project. And the rest comes from the restructuring activities, which are not fully completed. The plan was... executed within the total 60 million SEC cost which we had announced, and we still expect 30 million SEC of annual cost savings. The quarterly amortization is in line with the previous quarters and our expectations, and the decrease versus Q4 2024 relates to some Tractel-related intangible assets which are now fully amortized. And looking forward, we should see a similar level in 2026. Finance net in the quarter is up versus Q4 2024. That's coming mainly from foreign exchange favorable effects, which we had in Q4 2024 and were not repeated in Q4 2025. We are still slightly above the expected level of 40 million SEC per quarter in 2025. And that is due to our investment in Skyline Robotics, which value was decreased in the quarter to reflect their financial performance. But we are still very confident in the future of robotics for the Facade Access Division. Taxation rate in the quarter was 25.3% versus Q4 2024. And that's coming from the country mix. But 25.3 is close to our expectation of around 25% for the group. So in the quarter, net earnings come down by 91 million SEX. That's a 47% reduction. And the main contributor to the decrease is ISE. For the full year, the net earnings decreased by 3%, and if one excludes ISE and the related tax effort, it's a small increase of 3% in the year versus 2024. So we now move to gross margin and operating expenses. Excluding ISE, gross margin went up in the quarter from close to 40% in Q4 24 to 41.6, excluding ISE in Q4 25. And Facade Access and Wind are the two divisions which have driven that increase. And in both divisions, that reflects improvements in operational efficiencies. In Facade Access, we start to see the benefit of the restructuring program. And in Wind, the quarter was supported as well by some favorable product mix effect. To be complete on that, we saw slight margin degradation in the HSPS and construction divisions. As a percentage of revenue, operating expenses, excluding AC, went up in the quarter. And again, the same two divisions drove the increase, Facade Access and WIN, and that's due to some investments, particular product development in WIN division. But overall, at group level, the SG&S share of revenue has grown faster than the gross margin expansion. And that has resulted into the small EBITDA, adjusted EBITDA margin expansion, degradation, sorry. And that means, you know, the work we do on cost efficiency is even more critical. We don't plan any additional restructuring program at this stage. We do surgical work. We hunt waste. We hunt cost inefficiencies. And at the same time, we will continue to invest in some expenses. Again, typically R&D, sales and marketing to fuel the profitable growth. And I'm now coming to results for the period in EPS. So the result for the period was 103 million SEC versus 194 million SEC in Q4 2024. That's a 47% reduction. Excluding ISE, the results were 164 million SEC versus 200 million in Q4 2024. That's an 18% reduction. EPS was 0.98 SEC versus 1.83, 47% reduction. We've had the same number of shares adjusted for ISE and acquisition-related amortization. EPS was 1.64 SEC versus 2.21, and that's a 26% reduction. We have generated solid cash flows in the quarter. This has been the best quarter in 2025, and that's mainly coming from the working capital reduction of close to 120 million SEC. And you surely remember that Q4 2024 was exceptionally high. If we look at the full year, we saw a small or somewhat working capital increase of 90 million SEC, and that's primarily coming from the construction division. This is due to some increases in stocks in some geographies in a voluntary way to be able to seize commercial opportunities, but we were affected as well by the softer revenue. Although it's not impacting operating cash flows, I'd like to make one comment on CAPEX, which this quarter included the acquisition of the century premises. That was an opportunity to establish ourselves long-term in Houston and regroup the operations of the construction industrial divisions locally. Excluding this purchase, CAPEX is well in line with our expectations, the historical practices of Alimak, and this is 2.3% of the 2025 full-year revenue. So in short, cash generation is and will continue to be in very high focus. The net debt at the end of Q4 2025 was 2.4 billion SEC, down from 2.6 million SEC at the end of Q3. And the decrease comes from the operating cash flows partially compensated by the Interlift acquisition and the CAPEX. Leverage at the end of the quarter is 1.76, slightly down versus Q3, and that remains well within our target of being below 2.5. As I already said, we will continue to focus on cash generation in order to contribute to future deleveraging. Our capital allocation priorities remain unchanged. We will invest in organic growth, as I've commented a few times, and typically R&D, sales and marketing. We continue to actively work on acquisition opportunities. And we have room for maneuver with our relatively low leverage. So we have generated a tripod here to make those acquisitions. And we are committed to delivering our dividend policy, and you have seen that the board proposal for this year is again within that policy. One final comment on ROSI, which is an important matrix for us. It decreased in the quarter to 24.7% excluding goodwill, 10% including goodwill, to be compared with 26.1% and 10.6% respectively in Q3 2025. And that decrease is driven by the lower profit margin in the quarter. On that note, I will hand over to Ole for some concluding remarks.

Thank you, Sylva. We turn to the summary slide. New Heights continue to serve the group very well. We end the year with strong organic growth, which we have seen throughout the full year. Up 8%, as I was saying, the organic growth for the year. Profit somewhat mixed and a bit disappointing in Q4, but full year we are increasing and that I'm happy to see. So it's maybe a year of a little bit consolidation before we also continue our step up towards the financial targets of 20%. We see the geopolitical tensions around us in the world. We are sure we'll drive local and regional investments, which will be an important piece, of course, also for us going forward, short term. Construction market will remain subdued, at least for the first half, even though we believe that maybe we should start to see some improvement towards the second half and that we are most likely at some turning point. We see some positive signs in Europe at the beginning of the year. Strong financial position for the Group, which means that we are well set to continue to take the Group to new heights. and deliver on our both financial and sustainability targets going forward as we have done. So with that, I would like to thank all our employees, customers, partners, shareholders for their support, and we turn page and move to Q&A.