AQ Group — Call Transcript 2026

Welcome to the AQ Group presentation for quarter one. Nice to see you all. It's already 9:01 A.M., so let's start. We will go to the first point here. Normally, I have this slide. It is why you should invest in AQ Group. We have an earnings per share CAGR of 14% over the past 10 years. We have made profit every quarter since the foundation in 1994. We are exposed to industrial market segment within underlying growth, electrification, including data centers, defense, and med tech. We have a long history of acquisitions. In a normal year, we buy two to four factories, and we have a very strong balance sheet with SEK 1 billion net cash position, excluding leasing. Some quick facts about AQ. We're 8,000 employees, SEK 9 billion in turnover for the last year. We have seven business areas, 15 plus market segments with manufacturing in 17 countries with 4,000 customers globally. We have made profit, as I said, every quarter for 31 years. We have, over the past 10 years, had a 14% earnings per share CAGR. We make acquisitions every year. We try and we are part of UN Global Compact since 2012, which is our sustainability initiative. For the first quarter, net sales increased by 3% to SEK 2.3 billion. It is a little bit better than last year. Operating profit increased with 5% compared to the last year, and also profit after financial items increased with 9% to SEK 223 million. Profit margin before tax was 9.4%, which is better than last year, and profit after tax was also better than last year with SEK 179 million. Cash flow from operating activities was SEK 339 million, which is much better than the year before. Also earnings per share was up to SEK 1.95 per share. Some highlights from the quarter. We are growing in data centers and defense. It is a strong growth in both of those segments, a little bit different depending on geographic market. In data centers, the main growth is coming from our inductive components business area. On the right you can see some different products that we deliver into different data center applications. The top one is for electrification of data centers. I think we will deliver more than 3,000 pieces of those components you see there over the course of 2026. It is made in one of our factories in China. The bottom part there is for heat or ventilation of data center, cooling you can say. It is to one of our American customers. It is a water-cooled inductor. The demand is increasing, and we will increase our output with 100% in 2026 versus 2025. We believe also that 2027 will be even better. In the quarter, we have doubled the output of these big transformers that I've talked about previously, not the ones on the picture, from our sites in Hungary and Czech Republic in quarter one compared with the previous quarter, which was quarter four last year. We continue to ramp up and we'll increase output in quarter two and quarter three as well. We will also do finished products of those ones also from our factory in Finland. We have doubled the net sales for defense from our three sites in the U.K. compared with the same quarter last year. It is a dramatic increase and we are growing with customers in U.K. predominantly, but also in Norway. Our factory there does wire harnesses and electromechanical components for different aircrafts, a lot in the air. We also see a strong growth from our defense sites in Northern Europe, and that is predominantly in Sweden. We also see strong growth from the marine sector, naval sector in the U.S.. As I said, we have 30% growth in inductive components for HVAC from our factory in Shanghai. We also have increased demand for parts for gas turbines that we do. We do very small cooling holes in gas turbine blades for the major gas turbine manufacturers in Europe and the U.S. from our site in Hungary. We see a strong increase in demand also from this, and it is driven by data center demand. In our U.S. transformer factory in Virginia, we have an extremely strong order intake in quarter one with $20 million in new orders, which is a record for us. As a comparison, this factory had a turnover last year of $35 million. This is not driven by data center because they are not so much into the data center. It is, however, driven by data center as well because data centers are sucking out all the capacity in the U.S.. We are delivering to other segments, but the capacity is not there. We are basically winning everything we quote. Operating cash flow is very good in the quarter. It is driven by high profit and also increase in accounts payables. We are ordering quite a lot of material, and we normally don't order a lot of material unless we see something to deliver going forward. We are also very proud in the quarter that we have promoted several internal leaders for its different factories. We will have a new managing director in Italy, Lucia. We have a new managing director in AQ Magnit AD, our transformer factory in Bulgaria, which is internally recruited. We have a new MD in our transformer factory in Enköping. Waldemar is promoted there. We have two new MDs also in Bulgaria, Anna Hristova and Ivan Koussarov. A lot of new leaders we are promoting internally that know our core values, know how to grow the business, and we also have some people retiring then, of course. It is fun with new leaders, and this is super important for you as an investor, more important than you think. When we have good leaders in our factories, we make profit, we grow, and we have fun. Some lowlights in the quarter. We see some weaker demand in the systems business for med tech and food packaging. For med tech, it's not plummeting at all, but it's not growing as it used to. It's quite kind of flat, even though we have won some new orders in Germany for med tech customers, which we are very happy about. Maybe come to it later. For food packaging, our customers' volume are going down a lot, but also we have lost some business there, and it was not super profitable for us anyway, so we're of course disappointed in that. We need to be in fields where there is actually money to be made. I'm thinking that this is okay. We have low capacity utilization in Mexico and Plattsburgh. This is in fact an opportunity because it gives us an opportunity to attract new customers and sell more. We are very happy that we have won a new order, and I will come to it later when I talk about our newly won customers and so on. We have a little bit lower sales for marine transformer compared to all-time high level in 2024 and 2025 from our factory in Finland. Of course, that factory is now very busy in ramping up in data center transformers. It is anyway a lower demand at the moment, even though it's not super low, but it is not as high as last year. Another lowlight is we didn't make any acquisitions in the quarter, and despite the hard work that our team is putting in, and we find really nice companies, but on the other hand, we cannot buy anything. It needs to be an attractive return also for us. If there is nothing left on the table then after we acquire them, then we will not do it. Sometimes it's better not to do deals than to do deals if the deal is too expensive. That's how we see it. We are working hard to do deals also in the future, and we believe that we will be able to do deals. We have a nice pipeline, I think, of interesting things that we're looking at, as always. Earnings per share has increased 14% over the past 10 years, same as the dividend per share. Our target is to double it, earnings per share every five years. Net sales development, as communicated in the report, organic growth is 6.3%. We have acquired growth from January, mdexx and the Michael Riedel is part of that, so it's 1.4%. We have a negative currency effect of -4.8%, which gives the net sales growth of 2.9%, which is kind of okay, I would say. Feels like we are taking market share, but I have no data on that. Organic growth, as I said, 6.3%, it's below our target of 10%. We see high demand in defense and data centers. It will continue to grow, we believe. Of course, we have no chance of knowing, but we believe that this will continue to grow for us. We have some low demand for vehicles in Mexico, food equipment, as I've said, med tech, I've said already, and transformers for ships in Europe, I've also mentioned. Some recent new customer wins then. AQ Rockford in the U.K. has won several actually new projects, but one new project in the quarter from a Norwegian defense customer for about GBP 2 million. We have been awarded several new parts for Epiroc from our factory in India to their factory in India for wiring systems and sheet metal parts. We've received the first order for med tech systems in Germany. It is a legacy AQ customer that has ordered parts from our newly acquired company, Michael Riedel, in Ilshofen in Germany. We are working together, our factory in Bulgaria, our factory in Uppsala in Sweden and AQ Riedel team in order to make a couple of good prototypes now. You can see a sort of 3D rendering of the product in the bottom right. We believe that it can be some good growth for us there delivering into this med tech customer in Germany. We are quite happy that we have won our first order from Solaris Bus in the U.S. for New York City buses from our factory in Plattsburgh, New York. As many of you know, who has been with us for a long time, Nova Bus closed down a factory in New York State a couple of years ago. We were delivering all the wire harnesses to that factory. Now Solaris will be a new customer for us, doing city buses for New York. Solaris is a big bus manufacturer, and we also have an opportunity now to get into that in Europe, which is good. Then we have received the first serial order from a U.S. customer for data center transformers in the quarter. It is ordered from our U.S. transformer factory. I said that the U.S. factory had a good order intake, and it's not data center, so a part of it is actually data center now as well. It is a new customer, not a completely new customer for AQ, but it feels like a new customer for my American friends. Acquired growth. As I said before, we have several recent acquisitions. We have been bidding for a lot of companies. We have declined to increase our bid, and we have lost several cases. Yeah, it is normal as well. We look at many cases every week, and we decline a lot, and then we do due diligence on some, but currently we haven't been able to close anything. It's a little bit of failure, I would say, but we're continuously to search for new potential acquisitions, and we are trying to buy companies continuously. We think it's fun, and it is a good way for us to grow. On the other hand, we cannot accept too high valuations either. If too much of the profit is already given to the sellers, then of course, how will it improve profit per share for AQ, in the short and long term? Because in the long term, you don't know how the company will develop if you have given away the profits 10 years in the future. Sometimes it's better to decline to buy than to buy. mdexx, I think it now develops according to plan. We have a very ambitious growth plan there, because we need to get out a lot of both railway transformers and data center transformers out of this factory in the quarters to come. We have bought new equipment. Some is already in place, but we need to buy more, so we have placed orders for that. We have recruited, I think, 50 people, additional blue collars in the quarter to cope with the increased demand coming forward. It is a collaboration between several sites to deliver these data center transformers that we have, but also to relieve a little bit our Hungarian factory from other customers, because they are the main data center supplier from our side. It's a hard work, but it's fun work. If we look at the earnings before tax margin development, it is very, very stable, above our target of 8%, and the margin in Q1 was 9.4%. Now we have 13 consecutive quarters above our target, which is great. I believe that our cost control is still very good. It is always good, and it will continue to be good. We still have a dilution from mdexx, but now one year has passed, so we can't complain on that anymore. mdexx is making profit, and the more volume we are getting in there, and we are, the better the margin will be. We believe that the margin for 2026, as I communicated earlier, will be in the range of the AQ Group target in 2026, which is a massive improvement coming from -7% to 8%. The team is doing a fantastic job with this turnaround, and I believe that we will get the money back on this acquisition faster than three years. That is great. We have some underutilized factories. I write about Mexico and New York in the report, we have also more capacity in our Bulgarian factories. We have more capacity in our Indian factories. We have more capacity in many of our factories. Of course, we can increase capacity as well. This is a potential for future growth. It is affecting the margin a little bit at the moment. The Mexico and New York sites are quite small, also the Indian one. The Bulgarian one is a little bit bigger. We are making profit, but we think we should be making more profit there. We have some work to do. That is fun. That's why we are here. Regarding inventory value and inventory turnover, it was SEK 3.2 billion in last quarter, now it's SEK 3.1 billion. We have done a lot of improvements in a lot of sites. However, we are increasing our capabilities to deliver out more, meaning we need a bit more goods. The way we calculate it is rolling 12 months backwards, so it is maybe an indication that more volumes is to come. We continue our improvement projects, and we continue to have a focus on this because we don't want to have bad inventory in our stocks. It is natural, but I believe we have a good organization for this now. We have a very strong person in Gregors to run this project, and it is a foundation for us to generate very good operating cash flow, which is in here. Net cash from operating activities is on a very high level in the quarter. It's not the record, but almost. Of course, then it gives us even more cash in our balance sheet. Our net cash position, including leasing, is almost SEK 700 million, and if you exclude the leasing debt, then we have SEK 1.1 billion in cash excluding leasing. This gives us a very strong foundation to continue to grow in these high growth segments, but also possibilities within M&A, of course. It is a good thing. We will continue to work on using this cash in a responsible manner to generate great returns for our shareholders also in the future, but also to help our customers when they need the ramp up. We can support them with that, which is great. That was my last slide. Why invest in AQ Group? We grow earnings per share 14%, and we will continue to do so. That's the plan. We made profit every quarter since the foundation. We have exposure to industrial market segments with a high underlying growth, and we have a long history of acquisitions. As I said, lastly, a very strong balance sheet. Should we move into questions? Let's see. We have Albin maybe first. Can you unmute yourself, or do I need to help you with that? Allow microphone. Here we go. Now you can unmute yourself. All right. Can you hear me now? Yeah, I can hear you now. Nice. Thanks, James and Christina, for that. Just to start off with mdexx. You're telling us it's profitable now, getting to 8% this year. Can you quantify where we are currently? I haven't really written it in the report, but what I can say is that on an EBIT level, they are doing fine. I would say if 0% would be the bottom and 8%, it's roughly 4%, I would say, the EBIT at the moment. Okay, current. That's for the quarter or for the rolling 12? That is for quarter one. All right. On the ABB, reported yesterday, 44% up on electrification orders. How do you think that we should read this into AQ and what does ABB tell you, et cetera? If you have any comments on that, it would be great. No, but I think I have communicated already the orders that we have in the data center part. We believe that we will get more orders and that that will continue to grow. I think we are trying now to double our capacity, and we delivered out roughly 60 units for these ABB parts in first quarter. We are trying to double that capacity now, and we are investing to do so. We wouldn't do that if we didn't believe the demand would come. Then, of course, ABB is not only data centers, but a lot of it is now driven by it. We see a very strong order intake also in our drives manufacturing facilities in Estonia and China. That will grow very fast also in Q2. Then again, ABB is only 10% of AQ. It will maybe be more this year because they are growing so fast, doing a fantastic job. I think we have other market segments as well, of course. Yeah, of course. Just to check the 60 pieces in Q1, that was 30 in Q4, right? Then doubling it again in Q2. Yeah, exactly. I think we doubled in Q1, and we will double again in Q2. That is the capacity, I would say, and output. That is the wish, yeah. All right, thanks. That's all from me. Thanks. Thank you. Let's see if we have anyone else raising the hand. We have Thomas here. Now you can unmute, Thomas. There we go. Can you hear me? Yeah. Great. Good morning, James and Christina. Just a couple of questions from me. First, on the defense supply chain, I remember you spoke about capacity constraints or supply chain issues in 2025, but then again also that the U.K. site doubled their output for defense now here in Q1. I was wondering if you could give some overall view on supply chain challenges, the potential here in 2026, or if we should expect accelerating growth in 2027 rather than near term? I can say like this, when things are growing fast, there will always be supply chain challenges. Anyway, the market has a tendency to overcome those challenges. Of course, we are part of that, and it's also part of our opportunity, of course, to grow more when our customers have challenges to find suppliers that can deliver. I would expect that this continues to grow in 2026. I'm, however, uncertain of the pace of the growth because our customers need to be able also to deliver out their goods. Even though we can deliver, maybe they cannot. It is a mix, but I believe our customers in these segments, they will continue to grow, and the weapon systems that we are delivering to, they will continue to grow. It will continue, but I'm reluctant to give any numbers on this because it's hard to predict. Do you think it's likely to grow more than in 2025, where you mentioned that you had a lot of? Yeah capacity constraints? I think so. Okay. Lastly, just on the M&A side, I was wondering, do you have any specific strategy or target here going forward, threshold multiples or something, considering that these multiples may stay elevated for some time? I think the multiples are very elevated, I would say, especially in the defense market. It is crazy multiples, I would say. It might be correct, or it might be wrong. We are, however, very careful with our shareholders' money, so I would say to go now. Normally, we try to run in the opposite direction of everybody else. We are currently trying to find some cases within med tech, for instance, and some other business areas where we are strong. To pay 10x EBT for companies, it's not healthy in our line of business. We don't have IP. Of course, you can have a strong position within defense, but you can't pay those multiples. That's at least not how AQ operates. I understand. Thank you. That's all from me. Thank you. Let's see if we have any other questions. Please raise your hand if you have a question. We have Jacob here. Oh, damn. No. Pressed the wrong button. There we go. Perfect. Thank you. I just have one question. You seldom talk a bit about the railway and rolling stock products that you have. We saw Alstom were out adjusting their targets and talking about product delays and execution issues. What do you see in the railway if we look at the railway markets in general, and how do you view your competitive position and so on? No, I think there is a lot of railway projects being developed. What you can say with certainty, though, is that the railway project is always delayed. It's nothing new for Alstom or for us. We are involved in several projects, I would say, mainly in Europe, India, China, and the U.S. I think there are for sure delays, but on the other hand, we have, I think, a quite strong project pipeline at the moment. I'm thinking it's going okay for us. We are making profit. Here, it's like with defense, it's very hard to predict when the projects will be delivered because we are very much dependent on our customers. They are always postponing, and then suddenly they catch up with their production, and then they want things faster. It is something that we have in our pricing models and with them, and we need to be very flexible in ramping up and down quickly with these type of customers. That's good that we have also other customers so we can be flexible with our staff and move them, because this is a lot we are doing for railway, is assembly, sheet metal. We have dedicated factories for that. We can mention, for instance, our factory in Estonia doing complex aluminum enclosures for railway with friction stir welding and so on. There we see a very good order intake and a very good project pipeline, and most probably we will need to expand that factory going forward in order to satisfy the demand, because they're delivering also a lot to Hitachi, this factory. I think railway is fun. It's very complex projects. It's always customized, and every time it's different. We like that kind of projects. Just to get a sense of the magnitude, is it fair to assume that railway or these type of projects at least could be somewhere around roughly 8% to 10%, would you say, of your business as of right now? I would say that it is below 10% because other segments are growing fast, and growing faster than railway. I would say, but maybe it could be 10% altogether. That's super. Thanks for taking my question. Thanks, Jacob. Do we have any other questions? Not on this one. Not here. Not here. Not here. Okay, last chance. Any more questions? Thank you so much. See you hopefully next quarter. Bye-bye.

Speaker 1: Welcome to the AQ Group presentation for quarter one. Nice to see you all. It's already 9:01 A.M., so let's start. We will go to the first point here. Normally, I have this slide. It is why you should invest in AQ Group. We have an earnings per share CAGR of 14% over the past 10 years. We have made profit every quarter since the foundation in 1994. We are exposed to industrial market segment within underlying growth, electrification, including data centers, defense, and med tech. We have a long history of acquisitions. In a normal year, we buy two to four factories, and we have a very strong balance sheet with SEK 1 billion net cash position, excluding leasing. Some quick facts about AQ. We're 8,000 employees, SEK 9 billion in turnover for the last year. Welcome to the AQ Group presentation for quarter one. welcome to the aq group presentation for quarter one Nice to see you all. nice to see you all It's already 9:01 A.M., so let's start. it's already 9:01 a.m so let's start We will go to the first point here. we will go to the first point here Normally, I have this slide. normally i have this slide It is why you should invest in AQ Group. it is why you should invest in aq group We have an earnings per share CAGR of 14% over the past 10 years. we have an earnings per share cagr of 14% over the past 10 years We have made profit every quarter since the foundation in 1994. we have made profit every quarter since the foundation in 1994 We are exposed to industrial market segment within underlying growth, electrification, including data centers, defense, and med tech. we are exposed to industrial market segment within underlying growth electrification including data centers defense and med tech We have a long history of acquisitions. we have a long history of acquisitions In a normal year, we buy two to four factories, and we have a very strong balance sheet with SEK 1 billion net cash position, excluding leasing. in a normal year we buy two to four factories and we have a very strong balance sheet with sek 1 billion net cash position excluding leasing Some quick facts about AQ. some quick facts about aq We're 8,000 employees, SEK 9 billion in turnover for the last year. we're 8,000 employees, sek 9 billion in turnover for the last year We have seven business areas, 15 plus market segments with manufacturing in 17 countries with 4,000 customers globally. We have made profit, as I said, every quarter for 31 years. We have, over the past 10 years, had a 14% earnings per share CAGR. We make acquisitions every year. We try and we are part of UN Global Compact since 2012, which is our sustainability initiative. For the first quarter, net sales increased by 3% to SEK 2.3 billion. It is a little bit better than last year. Operating profit increased with 5% compared to the last year, and also profit after financial items increased with 9% to SEK 223 million. Profit margin before tax was 9.4%, which is better than last year, and profit after tax was also better than last year with SEK 179 million. We have seven business areas, 15 plus market segments with manufacturing in 17 countries with 4,000 customers globally. we have seven business areas 15 plus market segments with manufacturing in 17 countries with 4,000 customers globally We have made profit, as I said, every quarter for 31 years. we have made profit as i said every quarter for 31 years We have, over the past 10 years, had a 14% earnings per share CAGR. we have over the past 10 years had a 14% earnings per share cagr We make acquisitions every year. we make acquisitions every year We try and we are part of UN Global Compact since 2012, which is our sustainability initiative. we try and we are part of un global compact since 2012 which is our sustainability initiative For the first quarter, net sales increased by 3% to SEK 2.3 billion. for the first quarter net sales increased by 3% to sek 2.3 billion It is a little bit better than last year. it is a little bit better than last year Operating profit increased with 5% compared to the last year, and also profit after financial items increased with 9% to SEK 223 million. operating profit increased with 5% compared to the last year and also profit after financial items increased with 9% to sek 223 million Profit margin before tax was 9.4%, which is better than last year, and profit after tax was also better than last year with SEK 179 million. profit margin before tax was 9.4% which is better than last year and profit after tax was also better than last year with sek 179 million Cash flow from operating activities was SEK 339 million, which is much better than the year before. Also earnings per share was up to SEK 1.95 per share. Some highlights from the quarter. We are growing in data centers and defense. It is a strong growth in both of those segments, a little bit different depending on geographic market. In data centers, the main growth is coming from our inductive components business area. On the right you can see some different products that we deliver into different data center applications. The top one is for electrification of data centers. I think we will deliver more than 3,000 pieces of those components you see there over the course of 2026. It is made in one of our factories in China. Cash flow from operating activities was SEK 339 million, which is much better than the year before. cash flow from operating activities was sek 339 million which is much better than the year before Also earnings per share was up to SEK 1.95 per share. also earnings per share was up to sek 1.95 per share Some highlights from the quarter. some highlights from the quarter We are growing in data centers and defense. we are growing in data centers and defense It is a strong growth in both of those segments, a little bit different depending on geographic market. it is a strong growth in both of those segments a little bit different depending on geographic market In data centers, the main growth is coming from our inductive components business area. in data centers the main growth is coming from our inductive components business area On the right you can see some different products that we deliver into different data center applications. on the right you can see some different products that we deliver into different data center applications The top one is for electrification of data centers. the top one is for electrification of data centers I think we will deliver more than 3,000 pieces of those components you see there over the course of 2026. i think we will deliver more than 3,000 pieces of those components you see there over the course of 2026 It is made in one of our factories in China. it is made in one of our factories in china The bottom part there is for heat or ventilation of data center, cooling you can say. It is to one of our American customers. It is a water-cooled inductor. The demand is increasing, and we will increase our output with 100% in 2026 versus 2025. We believe also that 2027 will be even better. In the quarter, we have doubled the output of these big transformers that I've talked about previously, not the ones on the picture, from our sites in Hungary and Czech Republic in quarter one compared with the previous quarter, which was quarter four last year. We continue to ramp up and we'll increase output in quarter two and quarter three as well. We will also do finished products of those ones also from our factory in Finland. The bottom part there is for heat or ventilation of data center, cooling you can say. the bottom part there is for heat or ventilation of data center cooling you can say It is to one of our American customers. it is to one of our american customers It is a water-cooled inductor. it is a water-cooled inductor The demand is increasing, and we will increase our output with 100% in 2026 versus 2025. the demand is increasing and we will increase our output with 100% in 2026 versus 2025 We believe also that 2027 will be even better. we believe also that 2027 will be even better In the quarter, we have doubled the output of these big transformers that I've talked about previously, not the ones on the picture, from our sites in Hungary and Czech Republic in quarter one compared with the previous quarter, which was quarter four last year. in the quarter we have doubled the output of these big transformers that i've talked about previously not the ones on the picture from our sites in hungary and czech republic in quarter one compared with the previous quarter which was quarter four last year We continue to ramp up and we'll increase output in quarter two and quarter three as well. we continue to ramp up and we'll increase output in quarter two and quarter three as well We will also do finished products of those ones also from our factory in Finland. we will also do finished products of those ones also from our factory in finland We have doubled the net sales for defense from our three sites in the U.K. compared with the same quarter last year. It is a dramatic increase and we are growing with customers in U.K. predominantly, but also in Norway. Our factory there does wire harnesses and electromechanical components for different aircrafts, a lot in the air. We also see a strong growth from our defense sites in Northern Europe, and that is predominantly in Sweden. We also see strong growth from the marine sector, naval sector in the U.S.. As I said, we have 30% growth in inductive components for HVAC from our factory in Shanghai. We also have increased demand for parts for gas turbines that we do. We do very small cooling holes in gas turbine blades for the major gas turbine manufacturers in Europe and the U.S. from our site in Hungary. We have doubled the net sales for defense from our three sites in the U.K. compared with the same quarter last year. we have doubled the net sales for defense from our three sites in the u.k compared with the same quarter last year It is a dramatic increase and we are growing with customers in U.K. predominantly, but also in Norway. it is a dramatic increase and we are growing with customers in u.k predominantly but also in norway Our factory there does wire harnesses and electromechanical components for different aircrafts, a lot in the air. our factory there does wire harnesses and electromechanical components for different aircrafts a lot in the air We also see a strong growth from our defense sites in Northern Europe, and that is predominantly in Sweden. we also see a strong growth from our defense sites in northern europe and that is predominantly in sweden We also see strong growth from the marine sector, naval sector in the U.S.. we also see strong growth from the marine sector naval sector in the u.s As I said, we have 30% growth in inductive components for HVAC from our factory in Shanghai. as i said we have 30% growth in inductive components for hvac from our factory in shanghai We also have increased demand for parts for gas turbines that we do. we also have increased demand for parts for gas turbines that we do We do very small cooling holes in gas turbine blades for the major gas turbine manufacturers in Europe and the U.S. from our site in Hungary. we do very small cooling holes in gas turbine blades for the major gas turbine manufacturers in europe and the u.s from our site in hungary We see a strong increase in demand also from this, and it is driven by data center demand. In our U.S. transformer factory in Virginia, we have an extremely strong order intake in quarter one with $20 million in new orders, which is a record for us. As a comparison, this factory had a turnover last year of $35 million. This is not driven by data center because they are not so much into the data center. It is, however, driven by data center as well because data centers are sucking out all the capacity in the U.S.. We are delivering to other segments, but the capacity is not there. We are basically winning everything we quote. Operating cash flow is very good in the quarter. It is driven by high profit and also increase in accounts payables. We see a strong increase in demand also from this, and it is driven by data center demand. we see a strong increase in demand also from this and it is driven by data center demand In our U.S. transformer factory in Virginia, we have an extremely strong order intake in quarter one with $20 million in new orders, which is a record for us. in our u.s transformer factory in virginia we have an extremely strong order intake in quarter one with $20 million in new orders which is a record for us As a comparison, this factory had a turnover last year of $35 million. as a comparison this factory had a turnover last year of $35 million This is not driven by data center because they are not so much into the data center. this is not driven by data center because they are not so much into the data center It is, however, driven by data center as well because data centers are sucking out all the capacity in the U.S.. it is however driven by data center as well because data centers are sucking out all the capacity in the u.s We are delivering to other segments, but the capacity is not there. we are delivering to other segments but the capacity is not there We are basically winning everything we quote. we are basically winning everything we quote Operating cash flow is very good in the quarter. operating cash flow is very good in the quarter It is driven by high profit and also increase in accounts payables. it is driven by high profit and also increase in accounts payables We are ordering quite a lot of material, and we normally don't order a lot of material unless we see something to deliver going forward. We are also very proud in the quarter that we have promoted several internal leaders for its different factories. We will have a new managing director in Italy, Lucia. We have a new managing director in AQ Magnit AD, our transformer factory in Bulgaria, which is internally recruited. We have a new MD in our transformer factory in Enköping. Waldemar is promoted there. We have two new MDs also in Bulgaria, Anna Hristova and Ivan Koussarov. A lot of new leaders we are promoting internally that know our core values, know how to grow the business, and we also have some people retiring then, of course. We are ordering quite a lot of material, and we normally don't order a lot of material unless we see something to deliver going forward. we are ordering quite a lot of material and we normally don't order a lot of material unless we see something to deliver going forward We are also very proud in the quarter that we have promoted several internal leaders for its different factories. we are also very proud in the quarter that we have promoted several internal leaders for its different factories We will have a new managing director in Italy, Lucia. we will have a new managing director in italy lucia We have a new managing director in AQ Magnit AD, our transformer factory in Bulgaria, which is internally recruited. we have a new managing director in aq magnit ad our transformer factory in bulgaria which is internally recruited We have a new MD in our transformer factory in Enköping. we have a new md in our transformer factory in enköping Waldemar is promoted there. waldemar is promoted there We have two new MDs also in Bulgaria, Anna Hristova and Ivan Koussarov. we have two new mds also in bulgaria anna hristova and ivan koussarov A lot of new leaders we are promoting internally that know our core values, know how to grow the business, and we also have some people retiring then, of course. a lot of new leaders we are promoting internally that know our core values know how to grow the business and we also have some people retiring then of course It is fun with new leaders, and this is super important for you as an investor, more important than you think. When we have good leaders in our factories, we make profit, we grow, and we have fun. Some lowlights in the quarter. We see some weaker demand in the systems business for med tech and food packaging. For med tech, it's not plummeting at all, but it's not growing as it used to. It's quite kind of flat, even though we have won some new orders in Germany for med tech customers, which we are very happy about. Maybe come to it later. For food packaging, our customers' volume are going down a lot, but also we have lost some business there, and it was not super profitable for us anyway, so we're of course disappointed in that. It is fun with new leaders, and this is super important for you as an investor, more important than you think. it is fun with new leaders and this is super important for you as an investor more important than you think When we have good leaders in our factories, we make profit, we grow, and we have fun. when we have good leaders in our factories we make profit we grow and we have fun Some lowlights in the quarter. some lowlights in the quarter We see some weaker demand in the systems business for med tech and food packaging. we see some weaker demand in the systems business for med tech and food packaging For med tech, it's not plummeting at all, but it's not growing as it used to. for med tech it's not plummeting at all but it's not growing as it used to It's quite kind of flat, even though we have won some new orders in Germany for med tech customers, which we are very happy about. it's quite kind of flat even though we have won some new orders in germany for med tech customers which we are very happy about Maybe come to it later. maybe come to it later For food packaging, our customers' volume are going down a lot, but also we have lost some business there, and it was not super profitable for us anyway, so we're of course disappointed in that. for food packaging our customers' volume are going down a lot but also we have lost some business there and it was not super profitable for us anyway so we're of course disappointed in that We need to be in fields where there is actually money to be made. I'm thinking that this is okay. We have low capacity utilization in Mexico and Plattsburgh. This is in fact an opportunity because it gives us an opportunity to attract new customers and sell more. We are very happy that we have won a new order, and I will come to it later when I talk about our newly won customers and so on. We have a little bit lower sales for marine transformer compared to all-time high level in 2024 and 2025 from our factory in Finland. Of course, that factory is now very busy in ramping up in data center transformers. It is anyway a lower demand at the moment, even though it's not super low, but it is not as high as last year. We need to be in fields where there is actually money to be made. we need to be in fields where there is actually money to be made I'm thinking that this is okay. i'm thinking that this is okay We have low capacity utilization in Mexico and Plattsburgh. we have low capacity utilization in mexico and plattsburgh This is in fact an opportunity because it gives us an opportunity to attract new customers and sell more. this is in fact an opportunity because it gives us an opportunity to attract new customers and sell more We are very happy that we have won a new order, and I will come to it later when I talk about our newly won customers and so on. we are very happy that we have won a new order and i will come to it later when i talk about our newly won customers and so on We have a little bit lower sales for marine transformer compared to all-time high level in 2024 and 2025 from our factory in Finland. we have a little bit lower sales for marine transformer compared to all-time high level in 2024 and 2025 from our factory in finland Of course, that factory is now very busy in ramping up in data center transformers. of course that factory is now very busy in ramping up in data center transformers It is anyway a lower demand at the moment, even though it's not super low, but it is not as high as last year. it is anyway a lower demand at the moment even though it's not super low but it is not as high as last year Another lowlight is we didn't make any acquisitions in the quarter, and despite the hard work that our team is putting in, and we find really nice companies, but on the other hand, we cannot buy anything. It needs to be an attractive return also for us. If there is nothing left on the table then after we acquire them, then we will not do it. Sometimes it's better not to do deals than to do deals if the deal is too expensive. That's how we see it. We are working hard to do deals also in the future, and we believe that we will be able to do deals. We have a nice pipeline, I think, of interesting things that we're looking at, as always. Earnings per share has increased 14% over the past 10 years, same as the dividend per share. Another lowlight is we didn't make any acquisitions in the quarter, and despite the hard work that our team is putting in, and we find really nice companies, but on the other hand, we cannot buy anything. another lowlight is we didn't make any acquisitions in the quarter and despite the hard work that our team is putting in and we find really nice companies but on the other hand we cannot buy anything It needs to be an attractive return also for us. it needs to be an attractive return also for us If there is nothing left on the table then after we acquire them, then we will not do it. if there is nothing left on the table then after we acquire them then we will not do it Sometimes it's better not to do deals than to do deals if the deal is too expensive. sometimes it's better not to do deals than to do deals if the deal is too expensive That's how we see it. that's how we see it We are working hard to do deals also in the future, and we believe that we will be able to do deals. we are working hard to do deals also in the future and we believe that we will be able to do deals We have a nice pipeline, I think, of interesting things that we're looking at, as always. we have a nice pipeline i think of interesting things that we're looking at as always Earnings per share has increased 14% over the past 10 years, same as the dividend per share. earnings per share has increased 14% over the past 10 years same as the dividend per share Our target is to double it, earnings per share every five years. Net sales development, as communicated in the report, organic growth is 6.3%. We have acquired growth from January, mdexx and the Michael Riedel is part of that, so it's 1.4%. We have a negative currency effect of -4.8%, which gives the net sales growth of 2.9%, which is kind of okay, I would say. Feels like we are taking market share, but I have no data on that. Organic growth, as I said, 6.3%, it's below our target of 10%. We see high demand in defense and data centers. It will continue to grow, we believe. Of course, we have no chance of knowing, but we believe that this will continue to grow for us. Our target is to double it, earnings per share every five years. our target is to double it earnings per share every five years Net sales development, as communicated in the report, organic growth is 6.3%. net sales development as communicated in the report organic growth is 6.3% We have acquired growth from January, mdexx and the Michael Riedel is part of that, so it's 1.4%. we have acquired growth from january mdexx and the michael riedel is part of that so it's 1.4% We have a negative currency effect of -4.8%, which gives the net sales growth of 2.9%, which is kind of okay, I would say. we have a negative currency effect of -4.8% which gives the net sales growth of 2.9% which is kind of okay i would say Feels like we are taking market share, but I have no data on that. feels like we are taking market share but i have no data on that Organic growth, as I said, 6.3%, it's below our target of 10%. organic growth as i said 6.3% it's below our target of 10% We see high demand in defense and data centers. we see high demand in defense and data centers It will continue to grow, we believe. it will continue to grow we believe Of course, we have no chance of knowing, but we believe that this will continue to grow for us. of course we have no chance of knowing but we believe that this will continue to grow for us We have some low demand for vehicles in Mexico, food equipment, as I've said, med tech, I've said already, and transformers for ships in Europe, I've also mentioned. Some recent new customer wins then. AQ Rockford in the U.K. has won several actually new projects, but one new project in the quarter from a Norwegian defense customer for about GBP 2 million. We have been awarded several new parts for Epiroc from our factory in India to their factory in India for wiring systems and sheet metal parts. We've received the first order for med tech systems in Germany. It is a legacy AQ customer that has ordered parts from our newly acquired company, Michael Riedel, in Ilshofen in Germany. We have some low demand for vehicles in Mexico, food equipment, as I've said, med tech, I've said already, and transformers for ships in Europe, I've also mentioned. we have some low demand for vehicles in mexico food equipment as i've said med tech i've said already and transformers for ships in europe i've also mentioned Some recent new customer wins then. some recent new customer wins then AQ Rockford in the U.K. has won several actually new projects, but one new project in the quarter from a Norwegian defense customer for about GBP 2 million. aq rockford in the u.k has won several actually new projects but one new project in the quarter from a norwegian defense customer for about gbp 2 million We have been awarded several new parts for Epiroc from our factory in India to their factory in India for wiring systems and sheet metal parts. we have been awarded several new parts for epiroc from our factory in india to their factory in india for wiring systems and sheet metal parts We've received the first order for med tech systems in Germany. we've received the first order for med tech systems in germany It is a legacy AQ customer that has ordered parts from our newly acquired company, Michael Riedel, in Ilshofen in Germany. it is a legacy aq customer that has ordered parts from our newly acquired company michael riedel in ilshofen in germany We are working together, our factory in Bulgaria, our factory in Uppsala in Sweden and AQ Riedel team in order to make a couple of good prototypes now. You can see a sort of 3D rendering of the product in the bottom right. We believe that it can be some good growth for us there delivering into this med tech customer in Germany. We are quite happy that we have won our first order from Solaris Bus in the U.S. for New York City buses from our factory in Plattsburgh, New York. As many of you know, who has been with us for a long time, Nova Bus closed down a factory in New York State a couple of years ago. We were delivering all the wire harnesses to that factory. We are working together, our factory in Bulgaria, our factory in Uppsala in Sweden and AQ Riedel team in order to make a couple of good prototypes now. we are working together our factory in bulgaria our factory in uppsala in sweden and aq riedel team in order to make a couple of good prototypes now You can see a sort of 3D rendering of the product in the bottom right. you can see a sort of 3d rendering of the product in the bottom right We believe that it can be some good growth for us there delivering into this med tech customer in Germany. we believe that it can be some good growth for us there delivering into this med tech customer in germany We are quite happy that we have won our first order from Solaris Bus in the U.S. for New York City buses from our factory in Plattsburgh, New York. we are quite happy that we have won our first order from solaris bus in the u.s for new york city buses from our factory in plattsburgh new york As many of you know, who has been with us for a long time, Nova Bus closed down a factory in New York State a couple of years ago. as many of you know who has been with us for a long time nova bus closed down a factory in new york state a couple of years ago We were delivering all the wire harnesses to that factory. we were delivering all the wire harnesses to that factory Now Solaris will be a new customer for us, doing city buses for New York. Solaris is a big bus manufacturer, and we also have an opportunity now to get into that in Europe, which is good. Then we have received the first serial order from a U.S. customer for data center transformers in the quarter. It is ordered from our U.S. transformer factory. I said that the U.S. factory had a good order intake, and it's not data center, so a part of it is actually data center now as well. It is a new customer, not a completely new customer for AQ, but it feels like a new customer for my American friends. Acquired growth. As I said before, we have several recent acquisitions. We have been bidding for a lot of companies. Now Solaris will be a new customer for us, doing city buses for New York. now solaris will be a new customer for us doing city buses for new york Solaris is a big bus manufacturer, and we also have an opportunity now to get into that in Europe, which is good. solaris is a big bus manufacturer and we also have an opportunity now to get into that in europe which is good Then we have received the first serial order from a U.S. customer for data center transformers in the quarter. then we have received the first serial order from a u.s customer for data center transformers in the quarter It is ordered from our U.S. transformer factory. it is ordered from our u.s transformer factory I said that the U.S. factory had a good order intake, and it's not data center, so a part of it is actually data center now as well. i said that the u.s factory had a good order intake and it's not data center so a part of it is actually data center now as well It is a new customer, not a completely new customer for AQ, but it feels like a new customer for my American friends. it is a new customer not a completely new customer for aq but it feels like a new customer for my american friends Acquired growth. acquired growth As I said before, we have several recent acquisitions. as i said before we have several recent acquisitions We have been bidding for a lot of companies. we have been bidding for a lot of companies We have declined to increase our bid, and we have lost several cases. Yeah, it is normal as well. We look at many cases every week, and we decline a lot, and then we do due diligence on some, but currently we haven't been able to close anything. It's a little bit of failure, I would say, but we're continuously to search for new potential acquisitions, and we are trying to buy companies continuously. We think it's fun, and it is a good way for us to grow. On the other hand, we cannot accept too high valuations either. If too much of the profit is already given to the sellers, then of course, how will it improve profit per share for AQ, in the short and long term? We have declined to increase our bid, and we have lost several cases. we have declined to increase our bid and we have lost several cases Yeah, it is normal as well. yeah it is normal as well We look at many cases every week, and we decline a lot, and then we do due diligence on some, but currently we haven't been able to close anything. we look at many cases every week and we decline a lot and then we do due diligence on some but currently we haven't been able to close anything It's a little bit of failure, I would say, but we're continuously to search for new potential acquisitions, and we are trying to buy companies continuously. it's a little bit of failure i would say but we're continuously to search for new potential acquisitions and we are trying to buy companies continuously We think it's fun, and it is a good way for us to grow. we think it's fun and it is a good way for us to grow On the other hand, we cannot accept too high valuations either. on the other hand we cannot accept too high valuations either If too much of the profit is already given to the sellers, then of course, how will it improve profit per share for AQ, in the short and long term? if too much of the profit is already given to the sellers then of course how will it improve profit per share for aq in the short and long term Because in the long term, you don't know how the company will develop if you have given away the profits 10 years in the future. Sometimes it's better to decline to buy than to buy. mdexx, I think it now develops according to plan. We have a very ambitious growth plan there, because we need to get out a lot of both railway transformers and data center transformers out of this factory in the quarters to come. We have bought new equipment. Some is already in place, but we need to buy more, so we have placed orders for that. We have recruited, I think, 50 people, additional blue collars in the quarter to cope with the increased demand coming forward. Because in the long term, you don't know how the company will develop if you have given away the profits 10 years in the future. because in the long term you don't know how the company will develop if you have given away the profits 10 years in the future Sometimes it's better to decline to buy than to buy. mdexx, I think it now develops according to plan. sometimes it's better to decline to buy than to buy mdexx i think it now develops according to plan We have a very ambitious growth plan there, because we need to get out a lot of both railway transformers and data center transformers out of this factory in the quarters to come. we have a very ambitious growth plan there because we need to get out a lot of both railway transformers and data center transformers out of this factory in the quarters to come We have bought new equipment. we have bought new equipment Some is already in place, but we need to buy more, so we have placed orders for that. some is already in place but we need to buy more so we have placed orders for that We have recruited, I think, 50 people, additional blue collars in the quarter to cope with the increased demand coming forward. we have recruited i think 50 people additional blue collars in the quarter to cope with the increased demand coming forward It is a collaboration between several sites to deliver these data center transformers that we have, but also to relieve a little bit our Hungarian factory from other customers, because they are the main data center supplier from our side. It's a hard work, but it's fun work. If we look at the earnings before tax margin development, it is very, very stable, above our target of 8%, and the margin in Q1 was 9.4%. Now we have 13 consecutive quarters above our target, which is great. I believe that our cost control is still very good. It is always good, and it will continue to be good. We still have a dilution from mdexx, but now one year has passed, so we can't complain on that anymore. It is a collaboration between several sites to deliver these data center transformers that we have, but also to relieve a little bit our Hungarian factory from other customers, because they are the main data center supplier from our side. it is a collaboration between several sites to deliver these data center transformers that we have but also to relieve a little bit our hungarian factory from other customers because they are the main data center supplier from our side It's a hard work, but it's fun work. it's a hard work but it's fun work If we look at the earnings before tax margin development, it is very, very stable, above our target of 8%, and the margin in Q1 was 9.4%. if we look at the earnings before tax margin development it is very very stable above our target of 8% and the margin in q1 was 9.4% Now we have 13 consecutive quarters above our target, which is great. now we have 13 consecutive quarters above our target which is great I believe that our cost control is still very good. i believe that our cost control is still very good It is always good, and it will continue to be good. it is always good and it will continue to be good We still have a dilution from mdexx, but now one year has passed, so we can't complain on that anymore. we still have a dilution from mdexx but now one year has passed so we can't complain on that anymore mdexx is making profit, and the more volume we are getting in there, and we are, the better the margin will be. We believe that the margin for 2026, as I communicated earlier, will be in the range of the AQ Group target in 2026, which is a massive improvement coming from -7% to 8%. The team is doing a fantastic job with this turnaround, and I believe that we will get the money back on this acquisition faster than three years. That is great. We have some underutilized factories. I write about Mexico and New York in the report, we have also more capacity in our Bulgarian factories. We have more capacity in our Indian factories. We have more capacity in many of our factories. Of course, we can increase capacity as well. mdexx is making profit, and the more volume we are getting in there, and we are, the better the margin will be. mdexx is making profit and the more volume we are getting in there and we are the better the margin will be We believe that the margin for 2026, as I communicated earlier, will be in the range of the AQ Group target in 2026, which is a massive improvement coming from -7% to 8%. we believe that the margin for 2026 as i communicated earlier will be in the range of the aq group target in 2026 which is a massive improvement coming from -7% to 8% The team is doing a fantastic job with this turnaround, and I believe that we will get the money back on this acquisition faster than three years. the team is doing a fantastic job with this turnaround and i believe that we will get the money back on this acquisition faster than three years That is great. that is great We have some underutilized factories. we have some underutilized factories I write about Mexico and New York in the report, we have also more capacity in our Bulgarian factories. i write about mexico and new york in the report we have also more capacity in our bulgarian factories We have more capacity in our Indian factories. we have more capacity in our indian factories We have more capacity in many of our factories. we have more capacity in many of our factories Of course, we can increase capacity as well. of course we can increase capacity as well This is a potential for future growth. It is affecting the margin a little bit at the moment. The Mexico and New York sites are quite small, also the Indian one. The Bulgarian one is a little bit bigger. We are making profit, but we think we should be making more profit there. We have some work to do. That is fun. That's why we are here. Regarding inventory value and inventory turnover, it was SEK 3.2 billion in last quarter, now it's SEK 3.1 billion. We have done a lot of improvements in a lot of sites. However, we are increasing our capabilities to deliver out more, meaning we need a bit more goods. The way we calculate it is rolling 12 months backwards, so it is maybe an indication that more volumes is to come. This is a potential for future growth. this is a potential for future growth It is affecting the margin a little bit at the moment. it is affecting the margin a little bit at the moment The Mexico and New York sites are quite small, also the Indian one. the mexico and new york sites are quite small also the indian one The Bulgarian one is a little bit bigger. the bulgarian one is a little bit bigger We are making profit, but we think we should be making more profit there. we are making profit but we think we should be making more profit there We have some work to do. we have some work to do That is fun. that is fun That's why we are here. that's why we are here Regarding inventory value and inventory turnover, it was SEK 3.2 billion in last quarter, now it's SEK 3.1 billion. regarding inventory value and inventory turnover it was sek 3.2 billion in last quarter now it's sek 3.1 billion We have done a lot of improvements in a lot of sites. we have done a lot of improvements in a lot of sites However, we are increasing our capabilities to deliver out more, meaning we need a bit more goods. however we are increasing our capabilities to deliver out more meaning we need a bit more goods The way we calculate it is rolling 12 months backwards, so it is maybe an indication that more volumes is to come. the way we calculate it is rolling 12 months backwards so it is maybe an indication that more volumes is to come We continue our improvement projects, and we continue to have a focus on this because we don't want to have bad inventory in our stocks. It is natural, but I believe we have a good organization for this now. We have a very strong person in Gregors to run this project, and it is a foundation for us to generate very good operating cash flow, which is in here. Net cash from operating activities is on a very high level in the quarter. It's not the record, but almost. Of course, then it gives us even more cash in our balance sheet. Our net cash position, including leasing, is almost SEK 700 million, and if you exclude the leasing debt, then we have SEK 1.1 billion in cash excluding leasing. We continue our improvement projects, and we continue to have a focus on this because we don't want to have bad inventory in our stocks. we continue our improvement projects and we continue to have a focus on this because we don't want to have bad inventory in our stocks It is natural, but I believe we have a good organization for this now. it is natural but i believe we have a good organization for this now We have a very strong person in Gregors to run this project, and it is a foundation for us to generate very good operating cash flow, which is in here. we have a very strong person in gregors to run this project and it is a foundation for us to generate very good operating cash flow, which is in here Net cash from operating activities is on a very high level in the quarter. net cash from operating activities is on a very high level in the quarter It's not the record, but almost. it's not the record but almost Of course, then it gives us even more cash in our balance sheet. of course then it gives us even more cash in our balance sheet Our net cash position, including leasing, is almost SEK 700 million, and if you exclude the leasing debt, then we have SEK 1.1 billion in cash excluding leasing. our net cash position including leasing is almost sek 700 million and if you exclude the leasing debt then we have sek 1.1 billion in cash excluding leasing This gives us a very strong foundation to continue to grow in these high growth segments, but also possibilities within M&A, of course. It is a good thing. We will continue to work on using this cash in a responsible manner to generate great returns for our shareholders also in the future, but also to help our customers when they need the ramp up. We can support them with that, which is great. That was my last slide. Why invest in AQ Group? We grow earnings per share 14%, and we will continue to do so. That's the plan. We made profit every quarter since the foundation. We have exposure to industrial market segments with a high underlying growth, and we have a long history of acquisitions. As I said, lastly, a very strong balance sheet. Should we move into questions? Let's see. This gives us a very strong foundation to continue to grow in these high growth segments, but also possibilities within M&A, of course. this gives us a very strong foundation to continue to grow in these high growth segments but also possibilities within m&a of course It is a good thing. it is a good thing We will continue to work on using this cash in a responsible manner to generate great returns for our shareholders also in the future, but also to help our customers when they need the ramp up. we will continue to work on using this cash in a responsible manner to generate great returns for our shareholders also in the future but also to help our customers when they need the ramp up We can support them with that, which is great. we can support them with that which is great That was my last slide. that was my last slide Why invest in AQ Group? why invest in aq group We grow earnings per share 14%, and we will continue to do so. we grow earnings per share 14% and we will continue to do so That's the plan. that's the plan We made profit every quarter since the foundation. we made profit every quarter since the foundation We have exposure to industrial market segments with a high underlying growth, and we have a long history of acquisitions. we have exposure to industrial market segments with a high underlying growth and we have a long history of acquisitions As I said, lastly, a very strong balance sheet. as i said lastly a very strong balance sheet Should we move into questions? should we move into questions Let's see. let's see We have Albin maybe first. Can you unmute yourself, or do I need to help you with that? Allow microphone. Here we go. Now you can unmute yourself. We have Albin maybe first. we have albin maybe first Can you unmute yourself, or do I need to help you with that? can you unmute yourself or do i need to help you with that Allow microphone. allow microphone Here we go. here we go Now you can unmute yourself. now you can unmute yourself

Speaker 2: All right. Can you hear me now? All right. all right Can you hear me now? can you hear me now

Speaker 1: Yeah, I can hear you now. Yeah, I can hear you now. yeah i can hear you now

Speaker 2: Nice. Thanks, James and Christina, for that. Just to start off with mdexx. You're telling us it's profitable now, getting to 8% this year. Can you quantify where we are currently? Nice. nice Thanks, James and Christina, for that. thanks james and christina for that Just to start off with mdexx. just to start off with mdexx You're telling us it's profitable now, getting to 8% this year. you're telling us it's profitable now getting to 8% this year Can you quantify where we are currently? can you quantify where we are currently

Speaker 1: I haven't really written it in the report, but what I can say is that on an EBIT level, they are doing fine. I would say if 0% would be the bottom and 8%, it's roughly 4%, I would say, the EBIT at the moment. I haven't really written it in the report, but what I can say is that on an EBIT level, they are doing fine. i haven't really written it in the report but what i can say is that on an ebit level they are doing fine I would say if 0% would be the bottom and 8%, it's roughly 4%, I would say, the EBIT at the moment. i would say if 0% would be the bottom and 8% it's roughly 4% i would say the ebit at the moment

Speaker 2: Okay, current. That's for the quarter or for the rolling 12? Okay, current. okay current That's for the quarter or for the rolling 12? that's for the quarter or for the rolling 12

Speaker 1: That is for quarter one. That is for quarter one. that is for quarter one

Speaker 2: All right. On the ABB, reported yesterday, 44% up on electrification orders. How do you think that we should read this into AQ and what does ABB tell you, et cetera? If you have any comments on that, it would be great. All right. all right On the ABB, reported yesterday, 44% up on electrification orders. on the abb reported yesterday 44% up on electrification orders How do you think that we should read this into AQ and what does ABB tell you, et cetera? how do you think that we should read this into aq and what does abb tell you et cetera If you have any comments on that, it would be great. if you have any comments on that it would be great

Speaker 1: No, but I think I have communicated already the orders that we have in the data center part. We believe that we will get more orders and that that will continue to grow. I think we are trying now to double our capacity, and we delivered out roughly 60 units for these ABB parts in first quarter. We are trying to double that capacity now, and we are investing to do so. We wouldn't do that if we didn't believe the demand would come. Then, of course, ABB is not only data centers, but a lot of it is now driven by it. We see a very strong order intake also in our drives manufacturing facilities in Estonia and China. That will grow very fast also in Q2. Then again, ABB is only 10% of AQ. No, but I think I have communicated already the orders that we have in the data center part. no but i think i have communicated already the orders that we have in the data center part We believe that we will get more orders and that that will continue to grow. we believe that we will get more orders and that that will continue to grow I think we are trying now to double our capacity, and we delivered out roughly 60 units for these ABB parts in first quarter. i think we are trying now to double our capacity and we delivered out roughly 60 units for these abb parts in first quarter We are trying to double that capacity now, and we are investing to do so. we are trying to double that capacity now and we are investing to do so We wouldn't do that if we didn't believe the demand would come. we wouldn't do that if we didn't believe the demand would come Then, of course, ABB is not only data centers, but a lot of it is now driven by it. then of course abb is not only data centers but a lot of it is now driven by it We see a very strong order intake also in our drives manufacturing facilities in Estonia and China. we see a very strong order intake also in our drives manufacturing facilities in estonia and china That will grow very fast also in Q2. that will grow very fast also in q2 Then again, ABB is only 10% of AQ. then again abb is only 10% of aq It will maybe be more this year because they are growing so fast, doing a fantastic job. I think we have other market segments as well, of course. It will maybe be more this year because they are growing so fast, doing a fantastic job. it will maybe be more this year because they are growing so fast doing a fantastic job I think we have other market segments as well, of course. i think we have other market segments as well of course

Speaker 2: Yeah, of course. Just to check the 60 pieces in Q1, that was 30 in Q4, right? Then doubling it again in Q2. Yeah, of course. yeah of course Just to check the 60 pieces in Q1, that was 30 in Q4, right? just to check the 60 pieces in q1 that was 30 in q4 right Then doubling it again in Q2. then doubling it again in q2

Speaker 1: Yeah, exactly. I think we doubled in Q1, and we will double again in Q2. That is the capacity, I would say, and output. That is the wish, yeah. Yeah, exactly. yeah exactly I think we doubled in Q1, and we will double again in Q2. i think we doubled in q1 and we will double again in q2 That is the capacity, I would say, and output. that is the capacity i would say and output That is the wish, yeah. that is the wish yeah

Speaker 2: All right, thanks. That's all from me. Thanks. All right, thanks. all right thanks That's all from me. that's all from me Thanks. thanks

Speaker 1: Thank you. Let's see if we have anyone else raising the hand. We have Thomas here. Now you can unmute, Thomas. Thank you. thank you Let's see if we have anyone else raising the hand. let's see if we have anyone else raising the hand We have Thomas here. we have thomas here Now you can unmute, Thomas. now you can unmute thomas

Speaker 3: There we go. Can you hear me? There we go. there we go Can you hear me? can you hear me

Speaker 1: Yeah. Yeah. yeah

Speaker 3: Great. Good morning, James and Christina. Just a couple of questions from me. First, on the defense supply chain, I remember you spoke about capacity constraints or supply chain issues in 2025, but then again also that the U.K. site doubled their output for defense now here in Q1. I was wondering if you could give some overall view on supply chain challenges, the potential here in 2026, or if we should expect accelerating growth in 2027 rather than near term? Great. great Good morning, James and Christina. good morning james and christina Just a couple of questions from me. just a couple of questions from me First, on the defense supply chain, I remember you spoke about capacity constraints or supply chain issues in 2025, but then again also that the U.K. site doubled their output for defense now here in Q1. first on the defense supply chain i remember you spoke about capacity constraints or supply chain issues in 2025 but then again also that the u.k site doubled their output for defense now here in q1 I was wondering if you could give some overall view on supply chain challenges, the potential here in 2026, or if we should expect accelerating growth in 2027 rather than near term? i was wondering if you could give some overall view on supply chain challenges the potential here in 2026 or if we should expect accelerating growth in 2027 rather than near term

Speaker 1: I can say like this, when things are growing fast, there will always be supply chain challenges. Anyway, the market has a tendency to overcome those challenges. Of course, we are part of that, and it's also part of our opportunity, of course, to grow more when our customers have challenges to find suppliers that can deliver. I would expect that this continues to grow in 2026. I'm, however, uncertain of the pace of the growth because our customers need to be able also to deliver out their goods. Even though we can deliver, maybe they cannot. It is a mix, but I believe our customers in these segments, they will continue to grow, and the weapon systems that we are delivering to, they will continue to grow. It will continue, but I'm reluctant to give any numbers on this because it's hard to predict. I can say like this, when things are growing fast, there will always be supply chain challenges. i can say like this when things are growing fast there will always be supply chain challenges Anyway, the market has a tendency to overcome those challenges. anyway the market has a tendency to overcome those challenges Of course, we are part of that, and it's also part of our opportunity, of course, to grow more when our customers have challenges to find suppliers that can deliver. of course we are part of that and it's also part of our opportunity of course to grow more when our customers have challenges to find suppliers that can deliver I would expect that this continues to grow in 2026. i would expect that this continues to grow in 2026 I'm, however, uncertain of the pace of the growth because our customers need to be able also to deliver out their goods. i'm however uncertain of the pace of the growth because our customers need to be able also to deliver out their goods Even though we can deliver, maybe they cannot. even though we can deliver maybe they cannot It is a mix, but I believe our customers in these segments, they will continue to grow, and the weapon systems that we are delivering to, they will continue to grow. it is a mix but i believe our customers in these segments they will continue to grow and the weapon systems that we are delivering to they will continue to grow It will continue, but I'm reluctant to give any numbers on this because it's hard to predict. it will continue but i'm reluctant to give any numbers on this because it's hard to predict

Speaker 3: Do you think it's likely to grow more than in 2025, where you mentioned that you had a lot of? Do you think it's likely to grow more than in 2025, where you mentioned that you had a lot of? do you think it's likely to grow more than in 2025 where you mentioned that you had a lot of

Speaker 1: Yeah Yeah yeah

Speaker 3: capacity constraints? capacity constraints? capacity constraints

Speaker 1: I think so. I think so. i think so

Speaker 3: Okay. Lastly, just on the M&A side, I was wondering, do you have any specific strategy or target here going forward, threshold multiples or something, considering that these multiples may stay elevated for some time? Okay. okay Lastly, just on the M&A side, I was wondering, do you have any specific strategy or target here going forward, threshold multiples or something, considering that these multiples may stay elevated for some time? lastly just on the m&a side i was wondering do you have any specific strategy or target here going forward threshold multiples or something considering that these multiples may stay elevated for some time

Speaker 1: I think the multiples are very elevated, I would say, especially in the defense market. It is crazy multiples, I would say. It might be correct, or it might be wrong. We are, however, very careful with our shareholders' money, so I would say to go now. Normally, we try to run in the opposite direction of everybody else. We are currently trying to find some cases within med tech, for instance, and some other business areas where we are strong. To pay 10x EBT for companies, it's not healthy in our line of business. We don't have IP. Of course, you can have a strong position within defense, but you can't pay those multiples. That's at least not how AQ operates. I think the multiples are very elevated, I would say, especially in the defense market. i think the multiples are very elevated i would say especially in the defense market It is crazy multiples, I would say. it is crazy multiples i would say It might be correct, or it might be wrong. it might be correct or it might be wrong We are, however, very careful with our shareholders' money, so I would say to go now. we are however very careful with our shareholders' money so i would say to go now Normally, we try to run in the opposite direction of everybody else. normally we try to run in the opposite direction of everybody else We are currently trying to find some cases within med tech, for instance, and some other business areas where we are strong. we are currently trying to find some cases within med tech for instance and some other business areas where we are strong To pay 10x EBT for companies, it's not healthy in our line of business. to pay 10x ebt for companies it's not healthy in our line of business We don't have IP. we don't have ip Of course, you can have a strong position within defense, but you can't pay those multiples. of course you can have a strong position within defense but you can't pay those multiples That's at least not how AQ operates. that's at least not how aq operates

Speaker 3: I understand. Thank you. That's all from me. I understand. i understand Thank you. thank you That's all from me. that's all from me

Speaker 1: Thank you. Let's see if we have any other questions. Please raise your hand if you have a question. We have Jacob here. Oh, damn. No. Pressed the wrong button. There we go. Thank you. thank you Let's see if we have any other questions. let's see if we have any other questions Please raise your hand if you have a question. please raise your hand if you have a question We have Jacob here. we have jacob here Oh, damn. oh damn No. no Pressed the wrong button. pressed the wrong button There we go. there we go

Speaker 4: Perfect. Thank you. I just have one question. You seldom talk a bit about the railway and rolling stock products that you have. We saw Alstom were out adjusting their targets and talking about product delays and execution issues. What do you see in the railway if we look at the railway markets in general, and how do you view your competitive position and so on? Perfect. perfect Thank you. thank you I just have one question. i just have one question You seldom talk a bit about the railway and rolling stock products that you have. you seldom talk a bit about the railway and rolling stock products that you have We saw Alstom were out adjusting their targets and talking about product delays and execution issues. we saw alstom were out adjusting their targets and talking about product delays and execution issues What do you see in the railway if we look at the railway markets in general, and how do you view your competitive position and so on? what do you see in the railway if we look at the railway markets in general and how do you view your competitive position and so on

Speaker 1: No, I think there is a lot of railway projects being developed. What you can say with certainty, though, is that the railway project is always delayed. It's nothing new for Alstom or for us. We are involved in several projects, I would say, mainly in Europe, India, China, and the U.S. I think there are for sure delays, but on the other hand, we have, I think, a quite strong project pipeline at the moment. I'm thinking it's going okay for us. We are making profit. Here, it's like with defense, it's very hard to predict when the projects will be delivered because we are very much dependent on our customers. They are always postponing, and then suddenly they catch up with their production, and then they want things faster. No, I think there is a lot of railway projects being developed. no i think there is a lot of railway projects being developed What you can say with certainty, though, is that the railway project is always delayed. what you can say with certainty though is that the railway project is always delayed It's nothing new for Alstom or for us. it's nothing new for alstom or for us We are involved in several projects, I would say, mainly in Europe, India, China, and the U.S. we are involved in several projects i would say mainly in europe india china and the u.s I think there are for sure delays, but on the other hand, we have, I think, a quite strong project pipeline at the moment. i think there are for sure delays but on the other hand we have i think a quite strong project pipeline at the moment I'm thinking it's going okay for us. i'm thinking it's going okay for us We are making profit. we are making profit Here, it's like with defense, it's very hard to predict when the projects will be delivered because we are very much dependent on our customers. here it's like with defense it's very hard to predict when the projects will be delivered because we are very much dependent on our customers They are always postponing, and then suddenly they catch up with their production, and then they want things faster. they are always postponing and then suddenly they catch up with their production and then they want things faster It is something that we have in our pricing models and with them, and we need to be very flexible in ramping up and down quickly with these type of customers. That's good that we have also other customers so we can be flexible with our staff and move them, because this is a lot we are doing for railway, is assembly, sheet metal. We have dedicated factories for that. We can mention, for instance, our factory in Estonia doing complex aluminum enclosures for railway with friction stir welding and so on. There we see a very good order intake and a very good project pipeline, and most probably we will need to expand that factory going forward in order to satisfy the demand, because they're delivering also a lot to Hitachi, this factory. I think railway is fun. It's very complex projects. It is something that we have in our pricing models and with them, and we need to be very flexible in ramping up and down quickly with these type of customers. it is something that we have in our pricing models and with them and we need to be very flexible in ramping up and down quickly with these type of customers That's good that we have also other customers so we can be flexible with our staff and move them, because this is a lot we are doing for railway, is assembly, sheet metal. that's good that we have also other customers so we can be flexible with our staff and move them because this is a lot we are doing for railway is assembly sheet metal We have dedicated factories for that. we have dedicated factories for that We can mention, for instance, our factory in Estonia doing complex aluminum enclosures for railway with friction stir welding and so on. we can mention for instance our factory in estonia doing complex aluminum enclosures for railway with friction stir welding and so on There we see a very good order intake and a very good project pipeline, and most probably we will need to expand that factory going forward in order to satisfy the demand, because they're delivering also a lot to Hitachi, this factory. there we see a very good order intake and a very good project pipeline and most probably we will need to expand that factory going forward in order to satisfy the demand because they're delivering also a lot to hitachi this factory I think railway is fun. i think railway is fun It's very complex projects. it's very complex projects It's always customized, and every time it's different. We like that kind of projects. It's always customized, and every time it's different. it's always customized and every time it's different We like that kind of projects. we like that kind of projects

Speaker 4: Just to get a sense of the magnitude, is it fair to assume that railway or these type of projects at least could be somewhere around roughly 8% to 10%, would you say, of your business as of right now? Just to get a sense of the magnitude, is it fair to assume that railway or these type of projects at least could be somewhere around roughly 8% to 10%, would you say, of your business as of right now? just to get a sense of the magnitude is it fair to assume that railway or these type of projects at least could be somewhere around roughly 8% to 10% would you say of your business as of right now

Speaker 1: I would say that it is below 10% because other segments are growing fast, and growing faster than railway. I would say, but maybe it could be 10% altogether. I would say that it is below 10% because other segments are growing fast, and growing faster than railway. i would say that it is below 10% because other segments are growing fast and growing faster than railway I would say, but maybe it could be 10% altogether. i would say but maybe it could be 10% altogether

Speaker 4: That's super. Thanks for taking my question. That's super. that's super Thanks for taking my question. thanks for taking my question

Speaker 1: Thanks, Jacob. Do we have any other questions? Not on this one. Not here. Not here. Not here. Okay, last chance. Any more questions? Thank you so much. See you hopefully next quarter. Bye-bye. Thanks, Jacob. thanks jacob Do we have any other questions? do we have any other questions Not on this one. not on this one Not here. not here Not here. not here Not here. not here Okay, last chance. okay last chance Any more questions? any more questions Thank you so much. thank you so much See you hopefully next quarter. see you hopefully next quarter Bye-bye. bye-bye