Fasadgruppen Group AB (publ)

Good morning everyone and welcome to Fasadgruppen presentation of the second quarter 2026. My name is Magnus Blomberg, Acting CFO and with me here in the room we have our CEO Martin Jakobsson. So Martin, will you please walk us through the report and after the report we will open up for some questions. So with that being said, Martin please go ahead.

Thank you, Magnus, and a very warm welcome and a good morning for me as well. And let's move to the first slide directly. And let me give you a quarter here in short. By our own standards, the earnings were weak. But a weak quarter and a weak business, I would say, are two different things. And we will show that today. So when I'm just at a beta level, we came in at roughly 108 million against 132 last year, which is down 19%. And I won't dress that number up. Remember here, we took Roughly 2000 colleagues in our organization took this business from we had minus 12 if you remember organic growth in Q1 up to broadly flat now here in Q2. And the margin came in at roughly 7.6%. And that's just a statement and I'm proud of the colleagues that did this. And I would say that the decline in the result is not widespread, it is concentrated. This is mainly in our Nordic contracting business and that's essentially in Norway. And I'll walk through the reasons later in the presentation. But every other part of the group I would say held its ground or improved. And that distinction matters because concentrated problems can be fixed. The other headlines we have here in the first slide is of course the organic order backlog, which was up 6.6% compared to last year, mainly driven then by Norway, Finland and the UK. Very strong increase in the Norway is noteworthy. And of course, we welcome new colleagues into the group here. We finalized this acquisition in August with Kro Rakene. So a very warm welcome to Kro Rakene. They are a roofing specialist, mainly focusing on industrial customers and also data centers. With that, we can move on. So if we just look on a rolling 12-month basis here, on our numbers. We see net sales of roughly 5.2 billion. We're at an adjusted EBITDA level of roughly 350 million with somewhat lower margin compared to the same period last year. And it's also noteworthy the cash conversion here is roughly 100%. So whatever else this year has thrown at us, we could say the business still converts earnings to cash. So, moving on. Looking at the net sales, it was down 1.8% in total. And of that, it was a broadly flat organic growth, minus 0.5. But remember here we had a divestment of Alnova that came in last year. And that also affected the quarter here. Then looking at our segments, I would say that the total solutions decreased by roughly 2.2%. And our specialist solutions increased by roughly 1%. And Clearline, our business in the UK, decreased by roughly 9%. But it's noteworthy here that if you remember, coming back to the organic growth, it was minus 12, as I said in the Q1, and now it's broadly flat. That's an important number for us that we are on the right path. I'd like to give an example. This is broadly like a hotel. The rooms that we had during the winter time cost money whether someone sleeps in them or not. And of course, now that the rooms have been starting to fill up again, we're making money in that instance. And as we see it, the earnings from those rooms arrive a quarter or two behind the guests. But with that said, Of course a number that stands out here is of course the decrease in clear line that's still affected by what we've told you before the building safety regulator delays still there. But that means that it's a queued demand and not a lost demand. And now we can extend just one last thing on the sales. I would like to stress here also In Sweden, we've seen housing cooperatives, property owners that have postponed façade renovations throughout the last couple of years are very active again. As we say, a façade doesn't care about interest rates. And what we've seen now is that with the With the lower interest rates level and a more, I would say, more confident market, we're seeing there's more projects to calculate on. And hopefully we'll see that in the numbers in the future as well, that Sweden is on the right path. With that, we can move on to the next one, please. Then looking on the adjusted EBITA, the earnings slide, I would say the one that matters most today. Looking at the segments and you see exactly where the problem lies. You see that total solutions more than came in at 3.3% compared to 6.6%. And I would say that this is mainly then focused on our businesses in Norway, which are A lot of them are in the total solution segments. And I would say that the two forces that have affected this, and I want to separate them. First, the market is weak. I would say that hand was dealt to us. But part of the decline is also self-inflicted, you could say. We've changed management. in several of our Norwegian companies in the last year or so. I would say different phases in a cycle demand different leadership. And a turnaround has its own requirements and we acted on that. So I want to be clear upon that. And changes like those always cost tempo and volume in this transition. But I would say that with the changes that we've made, we're confident in the future in Norway. So I mentioned earlier that the order backlog grew significantly in Norway, and that leads the way. So that's what we're going to keep track of ourselves, the volume increase, and with that, the margin will recover. and of course that's something that we will have a look at closely at in the future and hopefully you will do too. Then I would say it's also noteworthy here that the clear lines strong result and the margin that increased from roughly 29% to 38% is of course a very an impressive number. And Clearline is working in a very disciplined way and delivering quality products every day to our customers. So we're proud of Clearline in that matter. Of course, it's good to see that we're on the right path. But with that said, we can move on to the next slide, please. Now, looking on the order backlog, as I mentioned, it increased here organically. And this tells a bit different story than the income statement. And of course, we see that it's mainly on the specialist solutions segment and on the ClearLearn segment that we see the increase. And I would like to stress here once again that It's especially in Norway, Finland, and the UK that we've seen a very strong uptick in the order backlog. So we are eager to convert this strong order backlog into sales. But just a noteworthy here is, of course, that we're having a close look on the Danish order backlog, which had somewhat of a hit the last couple of months here. But with that said, I'd like to come back to that in the future to see where we're heading. Yes, so I think we can move on to the next slide, please. Then on the cash flow, operating cash flow of 52 million compared to 181 last year. with working capital as the swing. I would say when the production accelerated hard in April after the late start to the season, we said working capital built sharply. But it's more like a normal breathing of a project business entering high season. And I would say that it's amplified this year because the season started late and then fast. So it's more of a timing and not a leakage question obviously. And the number to double check here is of course that 98% in the rolling 12 months. So as I mentioned earlier, we're still converting a lot of earnings into cash. But remember, it's mainly in the second half that seasonally converts. All right, next slide, please. We had a net debt here of 1.6 billion down from 2.2 a year ago. Leverage of 3.3 times adjusted EBITDA. The rights issue that was concluded in the second quarter did a heavy lifting so to speak. And from here, I would say the leveraging comes the old-fashioned way, earnings and cash conversion. Next slide, please. So, as I mentioned here in the start, we welcome a new company into our world, ProRakkene. ProRakkene, a roofing specialist situated in Oulu in Finland, and was acquired through our subsidiary Rovacate. ProRackerna had a long-standing collaboration with Rovacate in the Finnish industrial and data center segment mainly, I would say. I would say that there's three things I want you to take from this deal. First, the logic. We have two established players who already work together, industrial customers. want more of a one-stop shop, we provide them with that. So demand is pulling the acquisition, not the other way around, so to speak. Secondly, it's destructured. It was financed from existing cash with part of the consideration settled through a long-term co-ownership instrument in Rovacate. So The seller becomes a co-owner in the business they're joining. And I care a great deal about this. I think it's a very, very strong signal. Because in a group of entrepreneur-led companies, the best acquisition currency isn't cash. It's a shared ownership of the outcome. And we talked about that earlier, but people water the garden they own a piece of. I think that's something to take with you. And thirdly, then the direction deepens our exposure to data centers and the industrial customer segments. And of course, data centers is especially interesting. One of a few construction segments that is in structural growth, especially in the Norwex. Then moving on, Just some examples here from ProRakkene. Shows the range of the capabilities and it's the range I want you to notice first on the left hand side. Two million kronor roof done in three months and on the right hand side 45,000 square meter data center roof done in 32 months, which is a unique expertise. And it means that we can handle all types of projects on the under roofing side. So it's very, very glad to see ProRackeli join us and we're eager to help more customers in the future. Then some concluding remarks before we open up for questions then. Backlog, stronger, 4.5 billion, and it's growing the fastest where we need it the most, so to speak. Recovery through the quarter was also gradual. We saw the end of the quarter was strong here. And the profitability focus continues, especially in Norway, where new leadership and a field order book, the high seas are now in the midst of it, have to do their work together. And of course, we added ProRaken, as I just mentioned, which is a step in the right direction for us. So from here, I would say mainly it's an execution story and judge us on that. I would say that Sweden's volumes will reach their earnings lines and that Norway's volume increases in the margin as well. And that the Danish order backlog is filling up would also be something that we're looking on to execute them. And finally, I would thank our 2,000 employees, especially. And the backlog that we built is built in a difficult market, but it's a heck of a job that's been done. Now it's up to us to execute it. will do that together. So with that, we open up for questions.

If you wish to ask a question, please dial pound key 5 on your telephone keypad. To enter the queue, if you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Max Baco from Seb. Please go ahead.

Thank you, and good morning. Perhaps starting with Sweden, you mentioned a couple of times that Sweden is on the right path and that you are seeing increasing activity, especially on the renovation side here in Sweden. But if I understood it correctly, Sweden did not add to the growing order backlog here in Q2. How should we think about that? That you're seeing improving activity, but the order backlog is not improving.

Good morning, Max, and thank you for that. Yes, of course, it's a relevant question, but it's based upon the discussions we have with all our customers around in Sweden, and we're seeing around the corner what's coming. And of course, Sweden is working from a bit higher level on the order backlog side than let's say in Norway. So it's, the autumn is full in that instance, you could say, but we're always eager to fill it up even more. And I think with the current situation, we have the possibilities at least with the active customers to increase even more in the future. I would say that a bottleneck for us is of course still the amount of craftsmen and subcontractors that we have. And with that said, if the customer wants us to start immediately and we can postpone them, that would be to our benefit. But as we're seeing it now, at least, the demand is strong in Sweden. So hopefully we can grasp some of those outstanding offers in that instance, but we're seeing a lot of activity. That's the main thing here and very strong discussions with customers.

Okay, understood. And then on the same topic, I noticed that Clearlines order backlog declined 9% versus Q1. How should we think about that? Is it just that Q1 was very strong and perhaps some timing to it, or is there anything else in that number?

Nothing in particular in that number is still on a very high level. And we're looking into still 2028, 2029 now for Clearline. So I wouldn't say that that's something to worry about or so. It's nice that we're executing on sales, even though on a somewhat lower level compared to last year in Q2. but on the other side it's on a discipline level as we can see on the margin.

Okay, and then the final question, you basically touched upon it during the presentation when you stated that going ahead it boils down to execution more or less but all taken together with improving order backlog, regulatory delays, perhaps easing in the UK and so on and so forth. Going into the second half here of 2026, do you see better volumes and better profitability compared to the second half of last year? Is that a reasonable scenario or is there something that goes against that view? What's your thinking on that?

As you know, we don't really give any forecasts in that sense, but of course, very, very strong order backlog that makes us make the possibility at least to execute strongly in the second half of the year. So I think that the room for improvement is there. Understood.

That was all from me. Thank you very much.

Thank you, Max.

There are no more questions at this time, so I hand the conference back to the speakers for any written questions and closing comments.

Yeah, we have some written questions here as well, so let's begin with the first one. Have there been any changes or adjustments to Cleonide's revenue recognition or the policies? During which period? during Q2 to 2026.

Well, no. Well, it hasn't been to any other period either, but no.

And the second question is, has the BSR granted new Gateway 2 approvals to Clearline during the quarter, as seemed likely given the improvement permitting environment and higher approval rate in London towards the end of June?

Yes, we have received several approvals.

Thank you for that. And did Clearline Archive or recognize an unusual higher number of project milestones or has a possible novelty initial mobilization payment during Q2 2026? And did this contribute significantly to the exceptional strong EBITDA margin reported to Zegland. Long question, sorry for that.

I think it's connected to the margin of Clearline in Q2, as I read it. But I would say, well of course there was some... We ended some projects for Clearline in June, but that's nothing unusual in that sense, so... Nothing stands out on that, I would say.

Thank you. Moving on. Sweden looks to have turned and Finland is also growing. Could you also see growth in the second half for Norway and Denmark? Or is that more of a matter for 2027?

Yeah, it's back to the forecasts. And I think, as I mentioned to Max here, room for improvement in all countries, but we have a strong order backlog in that sense.

And what margin can we expect from Clearline going forward? Well... Since the margin has fluctuated?

Well, I think... If you just take the two margins that we see in this quarter, it's 38% in Q2 2026 and 29% in Q2 2025. That doesn't give you the full picture of the margin. But of course, it gives you a sense of how disciplined they are at Clearline and what kind of quality they provide. But I can't give you any more than that.

Thank you. Moving on here. The Danish revenue declined a bit in the second quarter and also for the first half year. Could you please elaborate on what's driving the decline in Denmark? Is it mainly related to timing, weather or are you seeing anything else?

So it's more of a mix effect in the sense of what kind of projects you're executing on. So it's no demand question per se. I would say it's still demand on a strong level.

And if you elaborate more on the Danish or the backlog?

Yeah, that's what I mentioned earlier. That's something that we are looking into and following closely and have some interesting prospects out there, new projects that we want to help customers with. Let's see if we can sign the contract as well here during the second half of the year.

If you continue on the Nordic here, how has the competition and prospective Projects margin in the Nordic development over the last 12 years more Well, I don't really understand so how has the competition and and Yeah, how was the competition being on the Nordic?

The last 12 months, okay well Competition is still there as always It's something that is always there. I don't really know if I understood the question, but I think we're competing every day with the competitors.

And you touched upon that already, but Clearline's order backlog is declining a bit. No new orders for Clearline or are you worried about that?

I'm not worried about Clearline.

Thank you, Martin. That's all written questions for now. I see we have some queue for some, yeah, for some speaking questions here. So please.

The next question comes from Lucas Mattsson from Indiers. Please go ahead.

Hi, guys, and good morning. Lucas here from Indiers. I have a couple of questions as well. I'm thinking about Norway, which remains your most challenging market. Could you give us some color on the concrete measures currently underway and whether there is any scenario in which you would sort of restructure or exit part of the operations?

Morning, Lucas. Yes, so Norway, I would say that it's a team effort underway. It's not a one-man job in that instance. We have a lot of experience and knowledge within the group, so we are collaborating on the issues at hand. As an example, we have people both from Denmark and Sweden assisting our companies in Norway. So we have full backup. Of course, as we mentioned, the new leadership is also in assistance of some support and that we are giving to them. So I think that's some flavor to what kind of things that we are doing. We're of course eager to execute on the very strong order backlog that has developed throughout the year here in Norway. And on your second part of your question regarding sales or so, it's nothing that you should take into your model at this time, I would say.

Okay, thank you, Oskar. And then perhaps one final question about Clearline as well. You have previously indicated that around 750 million SEK of clear lines or the backlog has been cleared for execution following regulatory approvals. Looking at H1, clear line generated roughly 260 million SEK in revenues, which would imply quite substantial acceleration in H2 if that figure were to be reached. Is that indication or how should we think about this?

It's of course, it's always a timing question and when you can really execute on a project is a lot of various variables on that to see exactly where that lands on a full year. I wouldn't say that there's an indication of exactly which revenue they will turn out on 2026, but what we can see is We have a very strong order backlog at Clearland, which we are eager to execute. Noteworthy is maybe that we received some orders that is not under the approval of BSR, which we are also eager to execute on, of course. But then we don't have the hassle, if you call it like that, to do the BSR process. Hopefully, that can also assist in the execution here going forward.

All right. Very clear. Thank you, and thank you for taking my questions. Thank you, Lucas.

The next question comes from Linus Allenton from Nordia. Please go ahead.

Hi, and good morning. A question from me here. You said competition remains present across the Nordic markets. Have tender pricing and prospective project margins changed over the past years? I'm particularly wondering about Sweden.

Good morning, Linus. Well, of course, it's a continuous process in that instance. I wouldn't say that... I think it was an unclear question where I talked about that, but with that said, I think competition is always looming above you. But I would say that it was more intense, especially if we take Sweden first, it was more intense a couple of years ago, but we've seen Plenty of bankruptcies in our sector throughout the years, and that has eased the competition somewhat. We've also seen several more prone to new production players that have started to work on the renovation segment, which has not worked well, if you put it like that. And then they have maybe dissolved or or gone back to the little new build there is. So I wouldn't say that that's... You could say it's not that tough in that sense. It was tougher before, if you put it like that. That's what we're seeing in Sweden. In Norway, I've said that before, that maybe they are a bit later in the cycle compared to Sweden. Remember, the interest rate levels are a bit higher in Norway as well. And on the new build side, there's also been tough, I would put it. So, of course, competition is still there. And yeah, maybe a bit off to Sweden in the cycle still also on that side. If that gives some flavor for you, Linus.

Yes, it does. Thanks. And just a question here on Clearline. I also noticed the sequential drop here in the backlog. Do you think you could give us a number perhaps on the order intake here in the quarter?

Yeah, we got the same question earlier here, but when on the order intake side, it's Nothing really that I have in front of me, but as I mentioned earlier, I'm not worried on the backlog side at Clearline. We're looking into projects that are to be done in 2028 and 2029 now.

And just one final question here. How should we think about H2 for Clearline going forward. I mean in the comparison H2 here, I guess that the full BSR is reflected, right? So how should we think about Clearline organically going forward?

Of course, it boils down to the execution and I know, Linus, you follow the BSR approvals closely. And I think they're on the right path there. We actually received some approvals before deadlines for the first time here a couple of months ago. So that was also the first time that happened. gives you somewhat of an, hopefully, an indication of easing of the BSR approvals. So there's, as I said earlier, room for growth here as well, room for improvement in that sense for Clearline. And I think continue to follow those BSR approvals. They're pretty interesting.

Yeah, I agree. I mean the legacy orders there are dropping and approval times are dropping as well for new approvals. Thank you very much for my questions and have a good day. Thank you, Linus.

There are no more questions at this time, so I hand the conference back to the speakers for closing comments.

Yeah, so as you heard, no more questions. And so thank you, everyone. And maybe a final words. Martin, over to you.

Yeah, thank you, Magnus. Very glad that you listened in. I'm eager to meet you all again in November when we will present our Q3 results. So looking forward to that. Thank you and have a nice day.