Sdiptech AB (publ)

Hello and welcome to our quarterly report, the second quarter. My name is Anders Mattsson, CEO of Stiptech, and I will be presenting it today together with our CFO Bengt Leidström. Before we start with the quarter, just a short intro to Stiptech for any new listener. We acquire, we develop, and we create a long-term home for niche companies within attractive infrastructure segments. Today we consist of 33 companies. We added two companies during the quarter and we operate in a decentralized structure and each company is responsible for the day-to-day operation. We divide the group into four business areas and each segment has a clear and structural underlying growth trends for the future. On the rolling 12, Diptech as a group has 4.7 billion SEK in revenues, 988 million SEK in adjusted EBD, and an adjusted EBD margin of 21.2%. And these are numbers for our core operations, excluding the companies that has been divested over the last 12 months. For today's presentation, I start lights of the quarter. On a strategic level, we are happy that we have completed the divestment program that we initiated last year in August. 11 companies plus our remaining elevator business have been sold. We have achieved a multiple around 6.5 times 2025 EBIT for the entire divestment program. And it's important to mention that the logic will be that the proceeds from the divestments will be allocated towards new acquisitions going forward. And that means for us that we are allocating capital where we find it more attractive for the future. From an M&A side, healthy M&A pace, two acquisitions in the quarter, and our pipeline has improved over the last 12 months, and it's now in a good shape for the future. We also experience a continued solid demand from our diversified portfolio within our attractive infrastructure segments. From a financial perspective, it's a positive momentum with a total adjusted EBITDA growth of 11%, organic adjusted EBITDA growth of 5%. Cash conversion in the quarter is 70%. And if we're looking at the last 12 months, it is at 90%. And this, of course, is important because we would like our own cash flow to be the primary funding for our continued M&A activity. And it's good to see improved momentum in supply chain and transportation. Energy and electrification and safety security is having a continued strong demand. water and bioeconomy is improving, but still negative development compared to last year. Coming into the financial development in the quarter, I should also mention here that the numbers we present here are excluding the divested companies for comparison reason. Net sales in the quarter came in at 1 billion 269 which is a plus 14% growth in the quarter. We had a strong organic sales growth of 11%. In the quarter, we had a negative currency effect of minus 2% and approximately 4.5% is coming from M&A growth. In the quarter, all our four business areas showed sales growth and especially strong development from supply chain transportation, energy electrification and safety security. The main reason for the solid sales development is not a specific business area or a specific company. It's more the continued structural trends that we see from our main segments, like electrification in general in society, and also improved safety elements in many different areas. If you look into the right side on the slide there, no significant change in our geographical distribution of sales with UK as our largest market. Proprietary products is increasing to 68% of total sales compared to 67% from last quarter. Then coming into our adjusted EBITDA, we came in at 258 million SEK, which is plus 11% growth in the quarter. We had a solid organic growth of 5%. In the quarter, we also had a minus 1% currency effect. And then roughly approximately or 6.5% is coming from M&A growth. In the quarter, three out of the four business areas showed growth in adjusted EBD. And again, the same business areas had a solid development supply chain transportation and electrification and safety security. We still have the negative development in water and bioeconomy, but improved performance compared to quarter one. And I will come back to that later in the presentation as well. Looking at the margin, adjusted EBITDA margin decreased to 20.3% compared to 20.9% last year. And that is primarily due to a growth in supply chain and transportation, which is our largest business area, but also in relative terms, the business area with lowest margin. And with that, I would like to hand over to Bengt.

Thank you, Anders. And let's have a look a little bit more in detail on our cash conversion. On the top chart there, you see our free cash flow per share compared with our earnings per share. And compared to last quarter, we improved the cash flow and that's not the least from the business and operational side itself. However, we have The capex spending, which is also included in this KPI, the free cash flow, has been a little bit higher during the first half of the year compared to our target. We have an internal ceiling or ambition of 3% of sales. We're at 4% so far, but some of the investments are done in the beginning of the year. So we're still aiming for the 3%. on the yearly basis, but still an improvement from last quarter, which is good. The earnings per share improved compared to last year, but quarter by quarter, it's still a bit affected by some capital losses from the divestments. All in all, we had roughly about 20 million in net negative effect from these transactions, including adjustments of the earnouts. Looking down at the lower chart, you see the cash flow generation and the cash conversion. We want to be in that yellow marked area between 70% and 90%. And we were exactly at the limits of that. Through the quarter, we were at 70%. But on the last 12 months, we were at 90%. And as typically it is during the quarter two, it's a little bit weaker than the other. We often see inventories, even though that this year it was lower than last year, but still the build up was roughly about 30 million SEK to be prepared for deliveries to customers during the second half of the year. We also saw increased accounts receivables from the increased sales. All in all, that part of the working capital increased with 80 million roughly. But the sales again were up 150 million compared to last year. So that number is pretty much what you could expect with that increased sales. So all in all, good. And we typically see then an improvement on the quarterly cash conversions during the second half. Looking then on the Island Street debt, the leverage ratio was more or less the same as the previous two quarters, still at 2.8. That's all in, so that's all debt, including the provisions for future earn-out payments. We have as a ceiling there to be at or below 3, as you can see on the left-hand side of this picture. And even though we made two acquisitions in the quarter, we're still at the same level as before those acquisitions because of a strong cash flow coming in from operations and the increased profit EBTA all in all. So solid development there. And looking at the right hand side, we see some return KPIs, three different ones. If we start at the top, we have the return on the working capital, which, as you see, during a number of years have been very steady around the 80%. That's measurement of how efficient we manage our working capital, the inventory and the accounts receivables, etc. And then the next line is the return on the capital employed in the companies. So that's excluding any good wills and other intangible assets in connection with acquisitions that we have on the group level. So this is from pure operations. And also they're very stable around a little bit above the 60%. which is of course very good and you will see soon how it is split between the different business areas. And then the third and the lowest in number then is the total return on the capital employed, including all these goodwill and other things on the group level. And that's pretty slow moving object we have as a target to come up to 15%. We're still hurt a bit of having the capital losses from write-downs of Goodwill and also from the sales. That affects this number, but once that has been rolled out, these numbers will improve. And even though we will not reach the 15% this year, it's clearly our ambition, even though, as I said, it could take some time, but the direction is clear. So all in all, that looks very good as well. And then I hand back to Anders for the business areas.

Yes, thank you. So coming into the business areas, we start with supply chain and transportation momentum with plus 16% in sales and plus 14% in adjusted EBITDA. We experienced an improvement from Q1, and it's good to see that we continue on this positive development in the business area. We had a strong performance from our companies, JR Industries, GEH and ELM. And JR Industries, as you might know, they are designing and offering roller shutter doors for the commercial vehicle markets, primarily in the UK. They have a very good market position, and we've been working with the spare part, improving availability, but also with the pricing of that. So that's part of the good development for JR Industries. GH used to be one of our top three largest, or they are still, or they is still one of the largest companies in the group. They are units for primarily delivery vans in the UK. We had a slower last year for them, but we saw the orders coming in and we were building up a good order backlog. And now we can see that we are delivering on that order backlog. So that's a stable business for us. It's continuously you need to replace and you need to update your fleets and you can work with the service element and the spare parts between those replacement cycles as well. So that's good to see for GH. ELAM, just to mention that ELAM is our Danish company, produce specific attachment to the forklift industries. They've been having a very good half year, 2026, and they have seen a bigger and larger demand for even more customized attachment. They have been quite bold in pricing those quite large customized solutions. And that's also what we see here. We see good development both in EBIT margin and also in revenue for ELM. So that's positive. On an adjusted EBITDA margin for the total business area, we see a slight decrease and that's primarily as a result of a product mix, GH, having lower margins in the business area and they've been growing in the quarter. You can also see return on capital employed is below the target of 50% for the operating units here. And that's mainly due to the acquisition in quarter two. When we calculate that KPI, we use the full balance sheet effect, but only one quarter of the profit. That's how we do it. So that's affecting in quarter two. Then we're coming in to the new acquisitions. And they belong into the supply chain and transportation business area. RSS or rail safety system. We mentioned it already in the Q1 report, but since April, they are now part of the group. They are based in the Netherlands and revenue 6.6 million euro. The company develops and supplies specific patent magnetic safety barriers, as you can see on the picture, instead of They have a magnetic system that you put on the rail itself. They have a strong position in the European market and sell primarily to different kind of rail operators. We own a company already, Mecno, in Italy, and they are making rail grinding solutions. We see here potential opportunities to actually open door for each other because they have different customers around the world, which could be something to work on for the future. Another new company is GLM. GLM design and produces specific industrial lifting equipment. And they are especially targeting vacuum lifters and smaller cranes. The company is based, as I said, in Denmark and annual turnover roughly 50 million Danish kroner. and GLM is strengthening our offering within efficient material solutions. We've been looking into that thanks a lot to ILM making the attachment that I described and all kinds of material handling equipment could be interesting for the future to look more into as well. Then we are moving on to energy and electrification. Energy and electrification has a solid quarter with plus 16% in sales and plus 14% in adjusted EVA. We see continued strong underlying market drivers, which create good momentum or growth drivers for the majority of the businesses in this business area, especially around electrification in general in the society and also energy efficiency is driving many of the companies in the business area. Phase 3, which are producing specific connectors to all kinds of applications. And also Rolek, who is our EV charging company, EV charging primarily towards business-to-business customers. So a fleet manager changing or improving EV charging for their, especially in the UK. Both of these two companies have performed well in quarter two with both sales and profit growth. We also see a slight margin decrease year over year, but that's primarily due to the product mix, but it's still at a solid level around 25% this area. Now we're coming into water and bioeconomy. We achieved an improved net sales development in the second quarter with plus 5% sales growth. On the positive side, we see good demand from purified water solutions, especially for cooling applications. And we have three companies somehow attached to these kind of strong trends. The business area, as we also said last quarter, continues to undergo operational investments to improve the businesses. And that has a negative effect on the adjusted EBITDA of minus 9% compared to the second quarter last year. And some of these investments are not just temporary. Instead, we see these improvements that are needed to secure long-term development. One example is that we're upgrading a product in the UK to meet the increased regulatory demands for how to treat chemicals, for example. And that's nothing that's going to be a quick fix. That's more improving for the future, which will drive some cost into that specific business. Then we're coming into safety and security. This business area showed again strong momentum with plus 15% in sales and plus 20% in adjusted EBITDA. We experienced a strong demand in all safety verticals, as we call it. Clean air in hospitals. We have our Swedish company Medicvent performing strongly. They've been successfully moving into new geographies in Europe as well, which is good to see. We have security around data center with our company Eagle that has been or continue to developing very good. And we have secure communication from our Swedish company Cryptify, which is also having a good quarter. Margin, as you can see, is at high 30% and improved profitability versus last year. And the primarily reason for that is a favorable product mix, but also a higher proportion of service and software compared to the previous year. And I think it's also worth to mention the high return on capital employed in the business area, and that's highest in the group. And it's, of course, one reason is that we have some software sales, but many of the companies here are quite disciplined in capital efficiency as well. We can learn from these companies within this business area to other companies in the group as well. Then we are coming into M&A. And from an M&A perspective, we are on track to increase our M&A activity for the year. As already described, we had two acquisitions that we closed in quarter two. Total EBITDA of around 35 million SEK. Our current cash position and also credit facilities are strong, but of course it's important for us to continue to be selective and very disciplined in the valuations going forward. And I also mentioned that we have been working hard on strengthening our pipeline over the last 12 months and we feel now we are in a good position that we need to be to accelerate M&A for the full year. And to end this presentation, I would like to summarize the quarter. We achieved a solid growth of 14% in net sales and 11% adjusted EBITDA, and that's including the organic growth as we described. We have completed our divestments and we can now fully focus on creating value for the businesses going forward. We also have an ambition to increase our M&A activity for the full year 2026, and we feel we are on track on that. And if you can see to the right here, I also would like to make a final remark on our strategic roadmap that we presented at our Capital Markets Day last year. What we said was that in 2025, we wanted to define new priorities and decided also to streamline our current portfolio. Now in 2026, we wanted to come back on the growth track with an improved balance sheet and new priorities for the group. And with new priorities, there was more focus on return on capital employed as a key metric in all decisions going forward. And then we also said that in 2027, we as a group should be performing according to our full potential and coming up to the plus 15% growth and slowly then also start to increase our return on capital employed, which is then a slower KPI to change, but definitely starting to improve that one going forward. And looking then based on the first six months in 2026, we still find this roadmap valid for us and we look forward to continue this journey that I just described. And with that, we are done with the presentation and we would like to open up for questions from the audience here today.

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, operator, and hello, Anders and Beng. Thank you for taking my questions, and well done here in the quarter. perhaps starting with the water and bioeconomy segment. You said here during the call that it's not a quick fix. But still, we saw this slight improvement in profitability versus Q1, which was also what you communicated in Q1. Do you still see, despite everything going on, that the profitability should gradually increase throughout the quarter. Is that still the expectation from your side?

Yeah, hello Max and thank you for the question. Yeah, I think it's not that we're going to see now a gradual improvement of the margin. We foresee it's going to be around 21, 22% now as a level going forward. We, of course, then have potential to growing this segment and some companies are having a great potential to continue to grow and increase margin. But no, we foresee this more as the level going forward for the business area.

Okay, understood. And then turning to the safety and security segment, which saw a nice improvement here in terms of profitability of the quarter. And you mentioned it was driven by better product mix with a higher proportion of service of software. That mix change would you describe it as temporary or is it more of a structural change within the segment?

In this business era we foresee that we will continue at the higher level so we have done not only improvements in the let's say software and and service sales, but in general, some of the companies have been coming up to, let's say, a higher level, and that's the aim to continue for this higher level.

Okay.

Sounds good.

Yeah. And then the final question from my side, you touched upon this partly within the supply chain and transportation that mix is explaining the slight decrease in margins here in the quarter but for the group as a whole have you seen any impact from cost increases on input materials, freight costs and so on and have that impacted anything so far and on that topic how do you intend them to potentially and adjust with price increases and so on towards customers. I know we have spoken before about a bit more proactive approach to pricing and so on throughout the group.

Yeah, in supply chain, I think we haven't seen any specific price increases on, let's say, raw material side. Not substantial, at least. Of course, freight cost, depending on the oil prices, has been fluctuating a bit. But in general, This business area is quite large. It's important to continuously work with the pricing and the purchasing activities, which I think many of the companies now do in the business area. But as you also said that we have been working on pricing initiative, how to price bear pod, how to price our service offering better. And with these kind of effects or... achievements, let's say, we will try to continue as a stable margin around this level for the business. But it's, again, it's, of course, it's a lot of work that needs to go in to protect them, to try them to improve the margin. So it's not an easy work here. Definitely not.

Okay, understood. That was all from my side at the moment. Thank you very much.

The next question comes from Simon Johnson from ABG Sundal Collier. Please go ahead.

Hello guys, thanks for taking my questions. First on the segments here and maybe on supply chain and transport specifically. Just to follow up on JR, the strength that you're seeing right now, should we view that as a new stronger base with orders continuing to develop well, or were the livers here maybe a bit unusually high to sort of catch up with the backlog, if you understand me?

JR is one of our most stable companies. They have a strong position in the commercial vehicle market in the UK and it's all the replacements, they're getting the orders and when new fleets is coming in and being replaced. So JR should not be our star company. I think what they have done now on looking at the spare part, improving the margin, that's not So they have been, let's say, raising the bar. And now it's more about continue to continue at this little bit higher level than from a margin perspective.

All right. Thanks for that. And then moving to some more financial questions on the cash flow. I think you answered part of my question Bengt already on the free cash flow you had some higher capex here in the first half and was that the main reason we say for the lower generation compared to last year and or were some impact from you having now a higher organic growth you will say inventory was not a big problem here though but yeah what do you see there

No, the quarter in itself, I think, was a quite normal quarter. As you said, perhaps slightly. I think the quarter was better than last year, the quarter in itself, and also on a 12-month basis when it comes to the cash conversion rate. excluding the capex and amortizations, including that then affecting and becoming a little bit lower than compared to at least a half year ago, but still better free cash flow per share than last year. So I wouldn't say it's any specials. It's more variations within the normal business. And when it comes to build up of inventory, as I said, it's quite typical this time of year, our most seasonal companies, the hilltip with our road maintenance equipment for winter roads, salt spreaders and snow plows and salt, they need to manufacture their equipment. BEFORE THE SEASON BECAUSE THEY CANNOT CATCH UP WITH THE ORDERS THEN WHICH WILL TICK IN IF THEY DON'T SO THEY BUILD UP INVENTORIES AND ALSO HEAT WORK IN NORWAY WHICH PROVIDES HEATING SOLUTIONS TO REDUCE FOR EXAMPLE FROZEN GROUNDS AND GROUND WORK WITH ROADS OR BUILDINGS OR SO SO THEY'RE ALSO VERY SEASONAL SO So that has an impact on the whole group level still. But I wouldn't say it's any unusual things.

All right, that's clear. And if we instead look a bit ahead here to the second half, of course, you had very strong cash flow last year. And as you also said earlier, it's a better season, of course. But what do you feel now looking into the second half of this year compared to last year for the And also given that the capex levels where they were here in the first half.

Yeah, the capex should be a little bit more modest second half. And when it comes to cash flow from operations, we had a very strong Q4 last year. And that was perhaps not what you could expect for this year. But of course, that's still typically high. So it will be hard to beat that one. But still, it will be better during the second half than first half.

Okay, clear. Thanks for that. Just lastly on M&A, very well done with the divestments and good to hear about the pipeline and recent activity. I also note slightly lower multiples paid here for recent acquisitions compared to history. think that multiples will you know generally be a bit lower going forward or were those deals a bit temporary?

I think it's fluctuating a little bit but we when we increase the pipeline and we work I would say closer together with the business areas we create the bigger Thank you very much. We prefer to continue. It's nothing that we can guarantee because some of the companies we also see bigger potential to grow with. And then we also are willing to pay a little bit more. But again, it's about discipline and increasing the number of companies you talk to. So you have the possibility to be selective in the valuation as well.

All right. I understand. Very good, thanks for that, and that's all from me.

The next question comes from Anton Ingves from Nordia. Please go ahead.

Thanks. Hi, and good morning, Anders and Bengt. Congrats on a strong quarter here. Good questions already, but a bit of a follow up. On this strong organic growth, Can you elaborate a bit on how much was volume and how much was price? For example, you alluded to ELM being quite aggressive in pricing in certain products.

I think it's important that we work or that we have that demand, the increasing demand. We have seen, I think, some previous years that when we have taken out costs, we've been growing the EBIT, but maybe not the revenue, the top line so much. So I think the focus now definitely to make sure that we have Thank you very much. pricing initiative we did we did it with four companies in the group only so to say the most larger companies that we did that initiative with it was well performed so I think we we have learned a lot from that and again it's not really rocket science it's about splitting up the different products different segments the different customers and see where you dare to increase your prices to be more bold and I think that's That's where ELM has been very successful. I mean, they have a unique offering. They are quite fast designing exactly what the customer wants, putting that in production and deliver that quite fast. And you can charge for that. It's some very specific attachment, for example, that they are selling. So it's nothing unusual as being more bold in what the value actually is for what you can deliver for ELM, for example. I hope that answers the question.

Yeah, for sure. It sounds promising as well. And sort of just on the momentum here during the quarter, did you see any change within the quarter and sort of the momentum here heading into H2?

I think... The general momentum is good, but some companies wanted to reduce the backlog a little bit, so they pushed quite hard in Q2 to be able to improve lead time, for example, to get the backlog down. That, of course, we're not going to see for the same companies in Q3, for example, but I mean, then we have other companies that have a good potential. So the good thing here is with the portfolio that some were pushing out because they wanted to reduce the backlog, but other companies have now perhaps a better potential now. So again, I think it's the portfolio thinking here that is proven to be good for us as well.

Okay, that's very clear. And I think that was all for me. Thanks for taking my questions.

Thank you.

The next question comes from Stefan Knudsen from Red Eye. Please go ahead.

Good morning, Andersson. Thanks. Good progress here in the quarter. Just a follow-up on supply chain and transportation. What was the organic development in the quarter? Maybe I missed it or you didn't mention it.

No, we don't talk about the specific organic development in the different business area. We talk about organic development on the group, but then on total sales and EBIT growth for the business area. But if you're looking at the numbers there, it is solid organic development in the business area. We had, of course, some some M&A coming as well, but it was also a solid organic performance for supply chain, especially for, as we said, the GH, the ILAM and the JR, they were driving the organic part in supply chain.

Very good. And can you also talk a bit more about the integration process of your two new business units? Has it been successful? What have you seen so far?

Sorry, you said... Didn't you hear me? Yeah, I can hear you now, Stefan, again.

Okay, just a little bit on the integration process of your two new acquired units in supply chain and transportation.

Definitely. GLM, the Danish company coming in, we have had a discussion in the group as well that it can be good that you have other companies in the group supporting. Sometimes it's quite new to coming into the group or in a new group for an entrepreneurial smaller businesses. And then GLM has been a support for them. So they also have a SPARING OR SOMEBODY TO TALK TO AS WELL REGARDING REPORTING AND HOW THEY HAVE DONE STUFF, ET CETERA. SO FROM THAT PERSPECTIVE, IT'S GOOD. AND THEN ALSO, I THINK, COMING INTO THE AND STARTING THE DISCUSSION ABOUT POTENTIAL GROWTH AREAS, WE'RE LOOKING FOR GLM, FOR EXAMPLE, COMING CLOSER INTO THE POLISH MARKET. SO THAT'S Definitely interesting areas to grow with GLM. If we look at RSS, the rail protection company, I think it's very interesting to see the opportunities with MECNO. MECNO has not a completely, but quite a lot different customer base around Europe, but also more international. I think just mentioning what kind of solutions do you have when you're securing the rails during the service, we can open up doors for RSS as a smaller company and not that well-known in other markets. So, all in all, a good start for these two companies coming into the group.

Very good. And lastly, from me, you mentioned the healthy pipeline. Yes, you acquired two companies now in supply chain and transportation. Is that where you see the biggest opportunities, or is that just a coincidence that it happened to be in the same business area?

I think we've been successful within the supply chain, and one reason is because it's quite broad, so it's easy to find different areas that we could find interesting companies. So that's one reason, but it's definitely a push from all business areas. From a pipeline perspective, it's not that supply chain is standing out as more than others. It's quite evenly spread actually, but about finding the right one to the right valuation and also that What we talked a lot about is for the entrepreneurs, for the companies to feel that stiptech knows something about this industry. They know something about how to develop and support in discussions. And I think we are becoming more and more attractive in that sense. And that's, I think, also showing from supply chain that we are having some knowledge around the areas as well.

Okay, very good. Thank you. That was all for me. Thank you.

As a reminder, if you wish to ask a question, please dial pound key 5 on your telephone keypad. The next question comes from Carl Korsheden from DNB Carnegie. Please go ahead.

Yeah, good day there, Anders and Bengt, and thank you for taking my questions. Just thought I would circle back a little bit more to the supply chain and the transportation segment would it be possible to give any sort of numbers on the current I guess order backlog I think you mentioned on a question a little bit earlier there that some companies might have been yeah quite good in getting deliveries out this quarter and sort of eating a bit of the order backlog is that how we should interpret it that book the bill was maybe below one this quarter for that segment overall and potentially also on the group level if you have any comment on that.

I think it's Not a big risk there that we see. It's primarily was ELM and JR that wanted to perhaps reduce the backlog more from a perspective that customer are not happy if the lead time is becoming too big. But we don't give any exact numbers for that. But GH have a very strong backlog or order backlog for the full year. Certus, our company within... Container terminal automation have also received some nice orders that will be delivered over the year. and also Hiltip. We didn't mention Hiltip so much in this call. It's been, as we talked about, they have problems in the US to be able to deliver efficiently from the new factory with higher cost and investments going in there. They also have a quite strong order backlog and that's also where it's more and more about how to deliver that in an efficient way going forward in the second half of the year. No, we don't foresee that. We've been eating too much and now we have more, let's say, less ammunition for the second year. That's not the feeling in the supply chain business area.

All right, got it. That's clear. Could you say anything about the development of your data center-related businesses in the quarter? Do you expect to also, I guess, take part in data center projects in the Nordics, or are you predominantly exposed to more of the Irish and the UK markets? I'm referring to IGEL in particular there.

No, Eagle is nothing specific for them. I think we talked about it the last quarter that it's interesting with the data center market and many of the contractors and installers. They are based in Ireland and then they are expanding with the customers globally for the different sites. And Eagle is then following along with those contractors that they work closely with. So they are In Asia, quite a lot of work at the moment. And that's actually where we see the biggest growth with the data center right now. But again, they are tendering all kinds of projects globally where they need these specific solutions for the gates. That's clear.

And on M&A, I think you added roughly 50 million CX here in EBITDA during 2025 and you mentioned that you want to do more in 2026 and you are now at roughly 35 million, I think your slideshow there earlier. How large do you realistically believe that the 2026 number might be when also taking your, I guess, leverage situation into consideration?

Yeah, I can step in there. No, I think we have guided somewhat before that since our total target is a 15% profit growth on a 12-month basis. And yeah, 5% as we had now. So organic profit growth is perhaps something you could use as a guess. And then we need to acquire another 10%. And that would mean roughly $100 million for this year and as you mentioned so far 35 but we are optimistic that we will be able to complete transactions during this year that will end up in a hundred million sec run rate basis and we can manage that still having the balance sheet in good order and not go above these three times in leverage so Even though it's only two acquisitions first half, we're still aiming for reaching that before year-end.

That's clear. And just finally from my side, not sure if I missed that somewhere in the report, but as for the extraordinary items of the 21 million this quarter, did you provide any breakdown of that or is it possible to disclose that?

I think we mentioned in the text that firstly it was some capital losses with the divestments when we do summing up everything on the group level with how holding companies etc has been affected and then we had some on the positive side we reduced some of the expected earnouts for the future and then some other smaller items so all in all it was minus 20 million. 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, and I can continue there. I see we have three questions in the chat so far. We have touched slightly upon them already, but I can perhaps just add a few things. First, talking about demand from data centers, and Anders mentioned how it is in the safety security with EGIS, should also mention that in the energy and electrification We have good demand also for companies like Phase 3 and IDE Systems, which provide temporary electricity solutions or connectors, not the least for backup electricity at, for example, data centers. So there are a number of companies within the group that benefit from that demand, but it's not that it would be a strong negative game changer if it wouldn't be there. But so far it looks good. Also, and as an additional effect that we're quite late in the processes. So if someone announces that we're going to build a big data center in the Nordics, we are not the first one on site taking the revenues from that. We're quite late during those projects. So that is still to be seen when those data centers are being built and constructed. So hopefully we will get some more business in the Nordics on those as well. Then we have some questions about the water and bioeconomy and the current margin. I mentioned that you could expect roughly 21-22% going forward. Some ups and downs, but we said that already last quarter that the highs that business areas have had in the past or up to 26 or so, that's not the normal level. So you could expect it to be more or less where it is. Then we had also another question talking about M&A and if we could expect continued M&A activities during second half or if we need to improve the balance sheet. But as mentioned just recently that with the balance sheet is in good shape and we have a strong pipeline so we achieve the 100 million on a run rate basis in acquired EBITDA for the year. And then also a fourth question here regarding proforma net debt EBITDA level. Anders also mentioned that the numbers we report are not proforma. We take the full effect on the balance sheet when we acquire something, but then slowly, bit by bit, the profit is rolling in and improves that so so the proforma should be a little bit stronger than the reported since we would have more profit than compared to the net debt at that moment but we have chosen not to use the proforma that could be discussed and we can evaluate but it's because the proforma is a proforma you never know what will happen in the future but yeah You can also, if you want to do that calculations yourself, see them since we disclose how much the run rate of the companies we have acquired, what they are, so you could increase profits with quarter by quarter, what has not yet been rolling in from that run rate number. I hope that was an answer on that question. Yeah.

Thank you Bengt. Any more questions up there? No more in the feed? No. Okay. Then I think I would like to thank you all. Very good questions and good discussions and I wish all of you a good summer and see you in Q3 then for a new report and hopefully further Good discussions going on for us as a group. Thank you all.