Beijer Ref AB (publ)

Welcome, everyone. Christopher and Joel here. Looking forward to present the full year in Q4, and of course, some questions. So I guess we'll get straight into the numbers. Thanks. So just wanted to start a little bit talking about the year as well, and then we'll dig into the quarter. But all in all, We're very happy with the year. We're highlighting here on the slide a fantastic cash flow, which we surely will come back to. But we see the improvements coming through here during the year on the things we worked on for quite some time. It's very satisfactory. And of course, on the cash flow, it puts us in a very good position. continue on the m&a activity and we'll come back to that as well also very happy about the margin very good margins throughout the year despite you know limited growth in the business we'll continue to see progress and all the initiatives we're doing on the margin side and also in a solid year three percent organic growth and of course we expect that when The markets have proved a little bit to come back at a higher level, which puts us in a very good position, I would say. It's also done the record margin 10.7%, so solid margin developed for the year. We also have 4.4 billion of cash flow, which I think is 110, 110% cash conversion. So it's very good, which puts us in a strong balance sheet with a net debt of 1.7, you know, including all acquisitions there that we announced in Q4. So I think it looks very good. And then we have finally the dividend proposal of a growth of 7% at 1.50. So all in all, I mean, we continue to grow. The model continues to develop and we see a solid 2025 behind us and look forward to moving into 2026. So then looking into a little bit on Q4, and I think it's the same story as we had all year long on the business. Remember, also Q4 is our smallest quarter of the year, and we turn into more heating and other products. It's not a massive quarter for us, but the way we see the quarter stable across the board, we do have quite some high comps in US and APEC. US growing 11%. Thank you for last year and APEC 10%. And I think in the US, especially a lot of residential project that we saw in Q4 last year that we didn't see this year, but some other good development in the US that we'll talk about. And then also we lose the trading day in the quarter in most of our big regions, which does have a negative effect. on our business. We'll come back. I think Q1, it's going to be the same amount of trading days. So that's, of course, better than minus one. And then we almost had 7% organic growth in Q4 last year. So all in all, when we look at the Q4, it came in at a stable level, similar to how we've been trading during the year on the sales side. We do have, as I said before, nice development acquisition, four in Q4, two more. announced and then a very good pipeline moving in here to 2026 and a nice rollover so very positive on on that side uh you all talk a little bit on on the restructuring program uh also every day came in uh very good underlying margin nine and a half percent so solid uh quarter and we did have 25 million of acquisition cost of the acquisition we announced that what we're working on so a very active quarter on that side, but underlying solid performance across the group and very good, especially in the US and APAC. And we'll come back to that. The cash flow I had highlighted, I think it's worth highlighting again, because we're very nice to see that the flash through and an important part of our growth journey going forward. And we talked about the acquisition. So all in all, we're happy with the development in Q4 as well. If you go in a little bit more on the product groups, I think nothing revolutionary there. Fairly stable across the board. And we did see, as we said, starting to see an uptick on the OEM side, especially driven by our green OEM, which makes us happy because that's a signal we're going to grow. Strong development in our SM Frigo refrigeration side and also a nice growth in Fenergy and also Good pipeline going forward. So also a better position, I would say, in going into 2026 and 25. So very satisfying on that. HVAC, of course, more affected in the quarter of the trading days and also in the commercial industrial refrigeration. So I think the highlight here is stable underlying business for the year and quarter and also a nice little uptick starting to show in the OEM segment. If you then move in a little bit to the segments, starting with EMEA, a lot of things happening in the quarter. But if you start on the year, 3% organic growth versus zero the year before, so slight improvement. And again, in a stable market. Of course, EMEA spans across so many regions. from Southeast, West, North, down in Africa. So you have some ups and downs. But in general, a stable year, solid on the margin, good acquisition growth, good pipeline also in the acquisition going into 26. I think worth mentioning here also there's good OEM in SDM free energy that we talked about. We, of course, have some nice project growing in Q4 and orders. in there and then uh we are i guess you're all pretty much done from the strategic consolidation according to plan um so moving nicely also integrating airwave nice acquisition for us in in the baltics that we're going to continue to to leverage in our uh strategy around uh hvac um so all in all also a stable quarter on the margin side uh the year a little bit improvement compared to to the previous year and also highlighting the very good development on the green OEM side. If you move into APAC, of course, on the margin side, one of our stars for quite some time now, and it's very satisfying to see the margin development driven by our strategic initiatives. You can see in the quarter for the year, the margins are up in a nice way, continue to drive. I don't know if you remember, but we started three or four years ago saying we want to go over the 10% for the year in APAC. And it has step by step gone in that direction. And you can see now 10.6% in 2025. So I would say better than we expected and faster. So done a fantastic job in that region. Also, you know, a strong Q4 last year, plus 10%. So we lost the trading day and came in flat. So I would say it's still a good development in the APAC region. And also of course, Q4 is one of the key quarters as you have summer in Australia and New Zealand. So a lot of good activity in that region. We do have a little bit still challenging on the OEM side. We see nice project in South Korea. And the Asian market is very promising because it's not driven by regulation. It's driven by interest to switching over to this type of solution, which also means we're building up a training center now in South Korea to further leverage on that. And we see quoting activity in Australia and New Zealand picking up. So it'll be interesting to follow this during 2026. Also, of course, did some acquisitions there, strategic, and we also announced an acquisition in new zealand that's going through the competition authorities as we speak then moving over to north america also see here we start with it with a full year a nice year i think our organic growth of three percent uh is very solid in an uncertain market in the us so extremely happy how they delivered and executed during the year. Also starting to see the improvements here on the strategic side on the work we're doing on the margin side, despite having diluting M&A and branch openings. And also signing and closing two acquisitions in Q4 with a continued very good pipeline going into 26. So it looks very, very promising on that side. We do have, if you look in Q4, minus 4%, but it's also compared to 11% growth in Q4. last year. So still a solid underlying growth and I'm sure we'll talk about it, but a lot of project, presidential projects in Q4 last year that we didn't see this year, but on the other side, stable replacement and good activity on the repair side, which is part of explaining the very nice margin development in Q4 as we make more money, but less sales dollars. So the repair side for us, and of course it's creating pent up demand, uh in the market so also uh will be nice when i start moving forward on the replacement and also the uh the project business so all in all a very solid quarter and we continue to expand our branches and have a plan to further expand that in in 2026 uh private label continue to expand and it's also a key point as we move these into our new acquisitions uh going forward so I would say all in all a very good year in an uncertain market in the U.S. and a solid Q4 with good potentials as we move here in 2026. Here's a lot of numbers over the quarters. I think it's just worth highlighting is as we move into 2026, we'll start seeing a nicer tailwind from that. From the acquisition, so we expect this to pick up as we move into 26 as well as a nice rollover plus a good pipeline here in the beginning of 26. Then on the margin side, you can see here a similar margin as the last quarter, but if you look at adjusting for the M&A, it's a nice pickup despite one minus in organic and driven by the development we set in APAC in North America. So I think it's a very solid Q4. And of course, on the last couple of years, you can see the development on the margin side. So wrapping that up before I hand over to Joel, you can see the total sales growth just for the currency, 2% in Q4, organic minus one, EBITDA plus three and four on the EPS. But I think if you look at the full year, it's very solid year. I would say 9% growth, organic three, 11% EBITDA growth and 15% EPS growth. So putting all that together, we're happy with the year. and look forward as we transition into 2026.

Johan? All right. Thank you, Christopher. Good morning, everyone. As always, I will jump into our reported EBITDA, this time excluding items of comparability, which is amounting to 758 million. which reportedly is down 6% compared to last year. However, it is very important to keep in mind here that our EBITDA excluding items effect and comparability is impacted by 25 million of acquisition costs following, as Christopher said, the high acquisition pace here in Q4. In addition, as you know, we faced a pretty significant FX headwind in Q4 of 8%. So if you look at this on a currency neutral basis and also adjusting for the M&A costs or underlying, Q4 EBITDA is actually growing by 6% here in the quarter with an underlying margin of 9.5%. Our financial net continues to develop very well. It's another benefit of our strong cash flow generation and financial net came in at 106 million, which is 24 million below last year. And if you exclude currency effects and so on, I would say that the underlying interest costs remain around 35 million lower in the quarter compared to last year. Tax expenses excluding items affecting comparability of 151, which is an effective tax rate of 25%, slightly below last year. All in all, Q4 report net profit excluding items affecting comparability of 445 million, down 3% versus last year. But then again, adjusting for the FX translation headwind, the net profit is up 4%. Moving over to our EPS. EPS in the quarter of 0.87 reported down 2% compared to last year. But as already mentioned, on a currency neutral basis, it's an increase of 4%. And for the full year, reported plus 10, which is a good number despite the tough currency headwind. And if you adjust for that, our EPS grew by 15% during 2025. Moving over to cash flow, we continue to develop a very strong cash flow in Q4, 1.7 billion. Cash flow this year is around 400 million higher than last year, and the absolute majority of that is driven by lower working capital tied up as a result of our inventory and capital efficiency programs across the group. And for a full year, we print a record of 4.4 billion SEK, which is driven by the same development in inventory and capital efficiency in general. so over to the next slide i i don't have that many more comments on this slide i would say i think it's a great visualization of the path we're on in terms of cash cash generation and capital efficiency so a very nice development here for the last couple of years Moving over to leverage. Thanks to this strong cash flow, of course, our net debt measured against the EBITDA, excluding leasing and pension, is stable in the quarter despite the high M&A activity. And we end the year at 1.7, which is leaving us with a very strong balance sheet to continue to execute on our fantastic M&A pipeline. So with that, hand over back to Christopher.

All right, let's try and summarize this. Nothing new on this slide. I think it's somewhere in 25 with a stable growth, 9% with acquisition, good EVTA development, 11% growth, and also a record margin for us, despite not being strong markets out there. So I think that's also a sentiment to what we're doing. Cash flow gives us a nice, nice firepower as well moving into 26. And you can hear we're fairly, I guess, very positive on how we're going to use this money in 26 to continue to improve the business model. It goes hand in hand with the balance sheet. I think also if you We'll get the EPS growth in a year very solid, and even if you adjust for your currency, plus 15%, which I think is a nice development for the year. Seven-year acquisition integrated into the business and also set a good rollover moving into 26. So then summarizing Q4, I think we went through all of this. To be honest, I'll move more into a little bit how we see the general market out there and some updates. We are pretty much, well, we are down with our A2L transition in the portfolio in the US. That's business as usual now in there. We also believe that, or we see that our platform continues to develop in the US, both on opening new branches, launching private label, building the acquisition platform and capabilities is around there. So we're very happy with the trend there. And of course, also some uncertainty in the market, as you can see, if you follow the OEMs and other things. But I think we perform extremely well in these times. And of course, as the market picks up again, it'll be very strong development from our side. We talked about pipeline. in there that also looks very good in the U.S. and also in EMEA for 2026. I think one caveat I had, I just want to share here and I'm sure we'll get it on the Q&A, is I don't know how closely you follow some of us for the business, but knowing in the U.S., we have 120 branches that continues to grow. But we were completely shut down for two days with this winter storm running through with snow and ice down in Alabama and Tennessee as well. So we lost two full days of business. And we also have to continue to have branches shut down because of power outages in the business and also you have a lot of things to clean up. So we expect in January, we might lose three to four days of sales because of this. Hopefully we'll see it pick up as we move into the rest of the quarter. But right now, at least you should think about three to four days of shut time because of that. And I'm sure I get more questions and I can develop it. So with that, we would like to open up for Q&A. Thank you for listening in on the presentation.

If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Adela Dashian from Jefferies. Please go ahead.

Thank you, and good morning, gentlemen. Would it be possible to specify in greater detail what all these moving items actually contributed in terms of the organic growth or the organic decline? Like if we start with the trading day and then maybe also the lower volumes from the projects in the US and so on, whether potentially also if that's possible just to get an a view on what the magnitude is and how much of it could be phased into the coming quarters.

Okay, so is it two questions? One is around Q4 and the second one is just around what I told you about the EOS for Q1. Correct. Okay.

All right. So that we can compare. Yeah. Q4 versus Q1 effect and so on.

Yeah, so I mean, the trading day is relatively straightforward. I mean, one day in the quarter and Q4 is fewer trading days than the normal quarter. So that is roughly 2%, I would say. And then in the US, I mean, as Christopher alluded to, we are underlying business is not so different in Q3 compared to Q4. It is a tough market and the comms is primarily driven by a difference in in residential project sales but you also have of course in the general business in this type of environment the higher degree of exposure towards the repair as opposed to the replacement which is also affecting uh revenue dollars of course I think I would look at it this way is that of course the training days is straight up mathematical effect on on the business so it's fairly

Jone Peter Reistadler, is the well, you know if we have more projects or less projects in a quarter that's business right it's not it's part of the business how it runs, I think the only one worth calling out there is that what we saw down the line. Jone Peter Reistadler, market in the US will continue to have a strong development on repair, which you can see in the market. and fairly stable around the day-to-day replacement market in the US. So I think in general, it's not any big. What we want to portray, if it's worth it, is that the market continues to be at the levels we saw in the year in general. And then in Q4, also remembering both Q4 and Q1 are smaller quarters for us. So it's hard to make big conclusions on it. So in general, our view is it's a stable underlying market. And then we had some projects in the US that didn't come in and a development in repair that also drove the good margin development. So, I mean, it's a nice balance you have in your portfolio because we have so much on aftermarket spare parts in the US versus equipment. So we've built in our view, you know, a stable development in still tougher times right now, reading into OEMs and also other comments in that. So that would be on the Q4 and the Q1. You know, you only need to help me three, four trading days would be in the US about, for the quarter.

So you have roughly 6-7% impact in the US potentially on that.

If you do it straight up, let's see if you get a pick up. And I guess that's about 2% on the full Q1, depending on how we see February, March developing. And we're just highlighting that out. It's hard for us to control that type of situation in the US.

I see, and that's very good colors. I appreciate that. But I guess it would be fair to say then that maybe you were caught a bit by surprise over the development because, if I remember correct, the comments coming out of Q3 were a bit more robust on the remaining months of the year.

Do you speak in general or on the U.S.?

Just market conditions in the U.S. in general.

Okay. No, I don't see so. We see the trading... And also more details per branch and the repair and all that. So maybe you could say, did I expect more projects coming through in Q4? Maybe, maybe not. Those things move around quite a lot. It's nothing that we have in our daily business reviews. You get more and it falls in, especially in smaller quarters. No, I think we expected this, you know, or I mean, I would say if you look at everything else you hear about the US market, we continue to do, in my view, better than anything else I see there. So I guess I'm still positive in how we're executing the US in the market. So I think a stable market development right now is a pretty good place to be. And of course, adding on the mix with repair, that's not bad. if you look at the margin development in the US as well.

Thank you. And just two more, if I may. Sorry if I missed, but did you specify how much you have left in terms of the refrigerant transition? Because you were nearing 10% at the end of the third quarter. So is that now completed?

Yes.

And then lastly, on your comment here on the margins, I mean, you have been a bit active on the M&A pipeline. lately, so should we expect some sort of dilutive effect now coming through in 2026?

Yeah, and I think if you, I would say maybe you can take that offline with you, and we'll come back and be more clear what it is, or if you want to take it right now.

Yeah, it is relatively similar. I mean, the acquisitions we have been pursuing is relatively typical of what we see in the market, where you have a few percentage points lower margin in that type of business. relatively short-term simple mathematics as well on the share of acquisitions at a few points lower margin so absolutely some some delusionary effects of that going into next year gradually disappearing on realization of synergies and of course we are working on improving the underlying margin in the core business of course as as always

Thank you so much, Joel. I'll step back into the Q&A.

Thank you.

The next question comes from Carl Ragnarstam from Nordia. Please go ahead.

Good morning. It's Carl here from Nordia. A couple of questions from our side as well. Starting on the working capital side, you released over a billion. As you also mentioned, is it possible to sort of give a split by market on that, where it came from?

Yeah, it is. I mean, we are working in this capital efficiency, of course, globally. We are, as we have mentioned, at a little bit different maturity levels across the business. And it is a gradual improvement. But I think it's fair to say that MAI is behind the largest improvement here. We are operating on a slightly more efficient level in general in the APAC region, obviously working there as well. And then in the US also improvements, but a lot of things going on there. So it's a little bit good opportunities ahead is also coming from moving third on the efficiency in the US. So a little bit more than what EMEA represents of sales comes from the working capital improvement in Europe.

Okay, that's very clear. So then it's fair to assume that the majority of the working capital release is driven by your new initiatives and incentives with the capital charges And how much do you think is more to come from those initiatives if we look into 26?

Yeah, it's a good point. Yes, it is. Absolutely majority of the improvement in working capital is related to inventory efficiency. We are far i mean coming away on the journey we are uh approaching uh or more or less on levels pre pandemic levels but i would say overall this is a long-term focus area for for bay ref and i think we should see uh improvements uh for a number of years to come in terms of capital efficiency

I think what we said before, right, Carl, is the ambition over the years now to generate, you know, let's call it at least 100% cash conversion as we improve the inventory situation and structurally do it. And, of course, 111 for this year, you get some more low-hanging fruit and you structurally need to work with it. But I think at least our ambition is to continue over the years to be at 100% and let's say we do more than that but at least have that as a guideline.

That's very clear and I think on I mean we have seen rally in many of the raw material inputs both to the AC units but also I mean related to your component distribution such as the copper that used to be I mean, a quite big earnings driver for you historically when it moved. I mean, with the quite steep rallies we've seen in those materials, how do you see that impacting your business in 26? I mean, it could be a tailwind, of course, it could be a headwind depending on how you manage it.

Yes, so for us, I would describe in this way, and it's early days, right, in January, and they are processing a structure on, because mostly what I'll be looking at is, you know, we, of course, if you take copper, for example, we also trade copper and sell it. I mean, that price is always moved with the information you have on the stock, but it's not a major driver in in our business. But of course, copper and these things is components into HVAC and in refrigeration product that you alluded to. So, you know, the clearest example we have of announcements, and if you follow the OEM, is that there will not a price increase coming in the U.S. market of anywhere from five to seven, eight percent. rolling into in the end of Q1. That's the signals we're getting on that side of the fence. In Europe, we're right now seeing normal price increases on the refrigeration side. There's still very little information on HVAC. And HVAC in Europe, I'm not giving you more details, or you already know this, is more a price increase discussion around mid-April before the season in that sense. And then if you fly over in being Australia and New Zealand, it's the middle of the high season. We haven't seen any big price changes there yet from the OEMs, but the market is pretty active. So all in all, if those type of translate into the market in a way with increased prices from OEM, it's a good thing for Bayreuth.

Amazing. And the final one, if I may, is on OEM. We saw a slight sequential acceleration in the organic growth. It would be great to hear more what you see in, I mean, more specifically in the green part of your business, because you still have the tough comps, right, in the rest. So when those comps are easing, what kind of growth are we looking at in the underlying operation then?

Sky's the limit, Carl.

no but what do you see in orders and uh sorry

no i i get the question and i think what we've been saying is this oem segment today is the 50 55 is the green which is related to fannagin sm free going mainly and if you look at vanity right it's a european platform and they continue to grow double digits uh last year and we expect that to continue throughout this year with a nice pipeline and orders moving into germany and other places SM Frego, as you know, the other Corel and other component delivery into us has a strong backlog and also grew double digits in 25. Both those companies have a better backlog in 26 than they had in 25. And then it's also seeing that the comps and the rest of the OEM business starts easing up. So I think at least our view is that we'll have a better OEM. a growth in in 26 and and the green will continue to grow you know good double digits number and and we can clarify a little bit man as we move in i think the only area where we we still haven't seen that progress on on the green oem related to sm free goal is is a business australia new zealand that's been very muted over the last two three years more flattish type of development. We do see quoting activities picking up quite nicely in those markets, but it's too early to say when quoting moves into order. So in general, we're more positive on the M side here in 26 than we were in 25. So we expect it to continue to improve.

Very clear. Thank you. Thank you.

The next question comes from Carl Boakvist from ABG Sundahl Collier. Please go ahead.

Thank you. Good morning. First one on the number of branches. I believe you said 120 in the US, but it would be interesting about the total number.

Yeah, I don't know, Tommy, because I had to put KRS and Denny's supply in. So I mean, offline, I can give you exact numbers. We have the data, but 121? All right.

All right. Fair enough. We'll discuss it later. But then on the refrigeration side, just looking at it from a multi-year perspective, we have regulations supporting the transition there on the F-gas and many stores needs to replace these types of equipment. Yet just organically, it's been a couple of years now with lower growth. So just out of curiosity, how you view the replacement cycle that we have been potentially waiting for because of regulatory changes?

Yeah, I think it's fair. I mean, it's two ways of looking at it. When we talk, you know, that's driven on the system side, it's more an SEM free go discussion. You know, the solution they're selling based on the CO2, which is growing 10% plus. And as I said, backlog. I think if you go back on the SEM free go discussion, Two years and after the pandemic, most of food retail was very slow. They pushed out a lot of CapEx, which then affected. Now we have very other good segments, SM, Frigo. So they were doing better, I would say the most. of the competition. So you started to see the pickup in SM Frigo order book and orders coming into, you know, Q1 2025. And after that, it's just been accelerating. So also 26 looks very good here to have a strong growth in SM Frigo. If you then take out where we report the commercial refrigeration, that's been more the... you know the one to three percent growth uh that i don't see that accelerating to you know five ten percent but you do have also technology in there that we're waiting on this technology shift to start giving a tailwind in that segment but i think in general we we separate those two and the main driver for this regulation will fall in into the ovm sm frigo segment all right understood uh that would be all thank you thank you

The next question comes from Carl Dienberg from DNB Carnegie. Please go ahead.

Good morning, guys. A couple of questions from my side. First of all, I wanted to come back a little bit to the US and if we could talk a little bit about the private brands rollout. We talked about this in Q3. You seem very happy with the sort of initial shipments. Yeah, so just general update there. How many branches are you with there? And maybe if you could allude a little bit on your expectations here into the new year. Thank you.

Yeah, it's still evolution versus revolution. Just had a board meeting yesterday and then we went over it. It's still early days, but The indication we're getting in this rollout is that we did a couple of orders in for the 26 on the ducted. We're also launching the ductless. in uh 2026 on that product portfolio also high expectations on that it but if you know the market deal was 85 is that the 15 is ductless so i would say that and it's continued to trade very well in december i mean we're in the winter season now right so it's it's it's building up the capabilities for 2026 and for the summer season. But also now when we made acquisitions of KRS and Denny's Supply, we're going to launch these products into their portfolio as well and preparing for that. We have some other pipelines in the acquisition pipeline. We're going to try and get cleared out before the season and do the same thing. So I would say in general, And, of course, we can attack the transactional part of the market segment. We're not very strong in our platform. It's a nice margin. Of course, it also is part of our margin evolution here in Q4. But it's more when we roll out to the summer season. I won't go into the dollars and cents right now. It's the building up these capabilities. But I would say maybe in 2025, we had it active in... 30 branches and and of course now we're rolling out to 70 80 branches for uh for this year plus the acquisitions we made so pretty high expectation on that segment but too early to say it's going to drive the business in 26 but it's a nice it's a nice tailwind and we have high expectations for it

Very well. Then I wanted to ask also further on the US, I mean, the acquisition pipeline, you seem to be quite happy here entering the new year. And I'm just curious a little bit on the mix here. I mean, you've done a couple of acquisitions in refrigeration. You talked a little bit about the, at least the initial sort of margin dilution from that.

uh but um yeah curious to hear on sort of the pipeline and maybe the mix you're uh sort of looking at here uh going forward uh you know eight track relative uh refrigeration yeah it it it comes a little bit in uh you know as the reason when we say just to take a step back we're positive you know we talked about this i think in q3 and of course we can track yellow eyes usually then we know that we're going to close them timing is different especially on you know you buy family-owned companies things takes time to explain put together but we like these companies for us these are the the jewels that we want to go after and these all built by personal relationships uh and that we like you know a lot uh as well it may take a little bit longer but we we think it's the right strategy and and then of course we we talked a lot and if you look at the us or refrigeration Part of the business is a smaller part, but it's growing very nicely and it's because we can roll it out in more and more branches. And as we, KRS and Denny's are a strong refrigeration platform. Then we had Young Supply and now we're expanding that into other ones. We built relationship now stronger and we're launching with Bitzer in the US. We're working with Downforce, Copeland. So it's going to continue to be a strong strategy for us using this platform to organically grow. And it looks very good and we are investing in it. And if you don't turn to your question on acquisitions, it changes right but but most of the companies if you look for an acquisition platform Etc is majority of HVAC because it's such much bigger bigger part of the business so that will go in in cycles we're looking at both uh Journeys and of course as we build more capabilities in refrigeration we get more relationship and contacts because those companies know the other companies in refrigeration etc so it will move in both directions but majority sales if i just take a view in 26 will be hvac expansion in the us very clear uh finally i just wanted to to hear you out awesome and this is obviously very early days but uh

On the OEM side, we've obviously seen quite significant consolidation with Palomarine acquiring Atlantic in France. And again, of course, that's haven't been completed yet, but that's an important partner for you in the US. And I just wanted to hear sort of, you know, would you see opportunities with them now going into Europe with quite a strong platform in France or, yeah, any thoughts around that given your current relationships with them?

Yes. It is a very strong. It's our strongest partner in the US. Our relationship is really, really good. It's not only the Paloma, right? It's the Fujitsu that they also are closing out where they have a portfolio for the US. And of course, you have this. So we do speak. We have agreement. Our agreement with Reem is global. and we built it in that way together so it's two as you said early but these are the levels we we're always talking to them you know also have a strong platform in Australia looking at their water heating business that fits in so for us this is good news okay exciting yeah uh thanks guys I'll stop there

As a reminder, if you wish to ask a question, please dial pound key 5 on your telephone keypad. There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.

Thanks for a good discussion. Thanks for listening in. I'm sure we'll keep in touch and we'll move forward now. So thank you very much and have a good rest of the day. Thank you very much.