Good morning, and welcome to AFRY's presentation of our results for the second quarter of 2026. I am Linda Pålsson.

I am CEO of AFRY, and as always, I will begin by sharing my perspective on the quarter before handing over to our CFO, Bo Sandström, who will take you through the financial results in more detail. Following the presentation, we will open up for questions.

Let's begin. In the second quarter, we have continued to make progress in the execution of our strategy.

As a result, we strengthened the order backlog further. It increased 8% year-over-year and now amounts to SEK 22.4 billion.

We also continue to improve the utilization rate, and after 14 consecutive quarters of decline, we have now delivered three quarters with consistent improvement. This is a strong validation of the actions we have taken.

In the quarter, we completed our restructuring agenda aimed at optimizing our portfolio and adjust capacity. Total sales was -2.4%, and the organic sales growth, adjusted for calendar effect, was -5.3%.

This reflects the strategic capacity adjustments we have implemented over the past year. EBITDA margin, excluding items affecting comparability, was in line with last year and amounted to 6.7%.

It is evident that our progress is not yet reflected in our financial results. We are now shifting focus to organic growth to capture profitability uplift from the actions we have taken.

We have reached several important milestones during this quarter that will improve efficiency and support organic growth going forward. I will come back to this later in the presentation.

First, let me take you through how our division performed during the quarter, and we will start with energy. The overall energy market remains strong.

It is driven by the global energy transition and the increase in electrification of society. Reflecting the high level of demand and the strong offering that we have in all our segments, we reported a record high order backlog in energy division this quarter.

In light of the geopolitical developments, the focus on energy security and reducing dependence on fossil fuels continues, which further strengthen demand for our solutions. Profitability remained at solid high levels, while growth was impacted by the phasing of execution in larger projects.

It is encouraging to see the market momentum and order backlog that we have in this division, and our full focus going forward is on delivering on the backlog and to drive growth. If we turn to industry, the market conditions here are broadly in line with the recent quarters.

We see strong demand in areas such as defense, mining, and metals, while sectors like pulp and paper and automotive are softer. We also see that a longer period of lower demand is contributing to weak price development in parts of the business, such as within the automotive industry.

The acquisition of AMC within mining and metal segments, which I highlighted last quarter, contributed positively to sales this quarter. It is encouraging to see how the addition of this type of high-quality business is already strengthening the division, enhancing our offering, and reinforcing our position within this segment.

The decrease in sales we saw was primarily a result of implemented capacity adjustments, and profitability was impacted by the lower sales volumes, combined with weak price development in parts of the division. If we move to transportation and places, we continue to see solid demand in transport infrastructure.

The real estate market continues to be challenging, with weak price development. We are seeing strong momentum in some of our selected focus areas, such as data centers, defense, and healthcare.

The effects of the restructuring and other changes that we addressed in Q1 are starting to phase out. The EBITDA margin remained at a stable level year-over-year, while sales volumes are lower, much due to the strategic capacity adjustment.

Moving over to projects, and one example of the growth opportunities in the infrastructure sector, I would like to highlight a key contract win during the quarter within our places segment. It's the new hospital in Helsingborg in southern Sweden.

This is one of the largest hospital projects in Sweden in decades, and AFRY has been entrusted with a key role. It's built on our expertise in complex healthcare environments.

Healthcare infrastructure is a strategic growth area for us. We see significant market opportunities, and we hold a strong position here.

We have also been selected by energy company Acelen Renewables to provide project services for its new biofuel plant in Brazil. The facility will produce renewable fuels, including green diesel and sustainable aviation fuel.

This is a great opportunity for AFRY to leverage on our chemical and biorefinery expertise while supporting the decarbonization of transport and aviation sectors. Finally, we signed a framework agreement with Ellevio, one of Sweden's largest power distributors.

As demand for electrification continues to grow, significant investments are being made to strengthen and modernize the grid infrastructure. With our long track record in the energy sector, AFRY will provide technical consulting services across a wide range of disciplines to Ellevio.

I would now like to take a moment to highlight another area where we are currently seeing strong momentum and where AFRY has a competitive and comprehensive offering, namely data centers. The demand for data center is growing rapidly, driven by cloud adaptation, digitalization, and investments in AI infrastructure around the world.

According to our estimates, the market for engineering, project management, and advisory services that are related to data centers is expected to grow by more than 20% annually through 2030. What makes this particularly exciting for us is the breadth of our offering in this area, where we have the competence to support clients across the full data center life cycle.

It draws on expertise from across AFRY, combining advisory, architecture, engineering, and infrastructure capabilities. With our new structure and way of working across AFRY, we are very well positioned to deliver integrated data center solutions on a global scale and across the full life cycle.

I would like to highlight that our capabilities are particularly strong in areas such as site selection, localization, building design, combined with the deep expertise that we have in power supply and grid infrastructure. We also help clients to improve their sustainability performance through leading solutions for energy efficiency and for heat recovery.

To summarize, AFRY are well positioned to capture growth opportunities related to data centers going forward. It is a market with strong structural growth and a clear strategic fit, and one where we see opportunities to create value for our clients in the years ahead.

As I mentioned, a key driver behind data center expansion is the accelerating adaptation of AI. Let me give you a short update on our work in this area.

For us, AI is not about isolated tools or initiatives. It's about systematically redesigning how we operate across the business.

AFRY's strength lies in our deep sector expertise, our strong references, and our proven project delivery capabilities. By combining this strength with AI, we see significant potential to improve productivity, quality, and speed in our deliveries.

Our priorities are focused on two dimensions. It's the client delivery, and it's in the internal efficiency.

In addition to supporting our clients realize the value of AI and data in their businesses, we are designing an engineering delivery platform that connects our employees with tools and data to deliver projects more efficiently. Through standardized solutions and secure data architecture, we are establishing the foundation required to scale the adaptation of AI and future technologies.

We are also working with selected partners to explore new delivery models for scalable productivity, and we have several pilot initiatives on the way. When it comes to our own operation, we are increasingly using AI to improve efficiency in bid management, as well as automating routine tasks through AI agents and self-service analytics.

With the right implementation, AI can free up capacity from repetitive and low-risk work, enabling our engineers to focus more on advanced assessments, problem-solving, and closer client dialogue. As AI continues to evolve, we build the capabilities, platforms, and ways of working needed to capture the full potential over time.

It's an important area for us. With that, I would like to hand over to you, Bo, to take us through the financials.

Thank you, Linda. I will cover the financials for Q2 2026, and I'll start with the overview.

Quarter two showed net sales of SEK 6.5 billion and EBITDA excluding IAC of SEK 434 million. Adjusted organic growth remains in negative territory, around -5%.

On rolling 12 months, we're currently at SEK 25.2 billion on net sales. Rolling 12-month EBITDA margin remains at 7.3%.

The order backlog continued to develop favorably and is reported at SEK 22.4 billion, an improvement of 8% to last year and 4.2% sequentially. Again, the order backlog is the highest ever reported.

All divisions improved sequentially and year-over-year. The majority of the sequential improvement stems from the industry division, with some good wins in the quarter and also supported by the AMC acquisition, as their order backlog is now included in our reported numbers.

The backlog for the energy division now surpassed SEK 7 billion, leading to an 18% increase year-over-year. The division is now well set for increasing the growth pace in the upcoming quarters.

In Q2, with the net sales of SEK 6.5 billion, we reported total growth of -2.4% and adjusted organic growth of -5.3%. The organic growth continues to be pressured by our restructuring agenda, total growth has turned the trend following the AMC acquisition.

The market price pressure in some segments seen since the latter part of 2025 is still clearly visible in Q2. This is particularly evident for some segments within industry and transportation and places.

Structural effects in Q2 relate to the acquisitions of Reta during Q3 2025 and AMC completed in May 2026, net of smaller non-core divestments completed in the beginning of this year. The negative adjusted organic growth in Q2 was somewhat lower than last quarter's, with small sequential movements in respective division.

Global division Energy, again, show low but positive organic growth. Adjusted organic growth for the Industry division remain in the -6% to 8% territory, reflecting a continued challenging market in parts and capacity adjustments during the last 24 months.

Total growth for the division is -2.1% with the AMC acquisition as the main structural contributor. Transportation and Places remained at -5.4% in Q2 as a consequence of capacity adjustments in the end of 2025, combined with a continued weak real estate market.

We report a utilization of 73.5% for Q2, close to a percentage point higher than Q2 last year. Again, we see improved year-over-year utilizations for all divisions.

This is then the third consecutive quarter where we report an improvement to last year, and it is a continued important step for our strategic efforts to improve operational efficiency in AFRY. We will continue our focus on improving this metric to be one of the main drivers of profitability improvement over time.

Since the low mark of 72% on rolling 12 a year ago, we are now at 72.6% and well on our way to 74% being the set ambition in the 2028 roadmap. EBITDA excluding IAC is reported at SEK 434 million, with positive calendar effects of SEK 27 million.

The EBITDA margin was at 6.7%, reasonably in line with last year reported and calendar adjusted. With the business margin pressured by lower sales volumes, group costs were lower than last year, as we're now starting to see effects of the restructuring efforts related to support functions.

Looking at the EBITDA margin development by division, they are in general in line with last year. Energy, supported by improved utilization and strong backlog development, continue to report a strong EBITDA margin.

Global division Industry continued to improve utilization, but is pressured by significantly lower volumes and weak price development in some of its market segments. In addition, the division carried SEK 15 million of transaction costs for the AMC acquisitions in the quarter.

The margin in Transportation and Places remained pressured from restructuring effects and a soft real estate market. That said, in Q2, we clearly see the restructuring effects that we experienced in Q1 start to fade out, and we expect those to be fully phased out in the second half of the year.

We report SEK 54 million restructuring costs as items affecting comparability in Q2 and close our restructuring program fully in line with our guidance given throughout. During the program, we made significant progress in our efforts to reshape the portfolio, and we have in addition, made good progress on addressing the cost base.

This we will continue to do despite closing the program. From a full run rate perspective, effects are still offset by lower gross margin contribution given the currently lower sales volumes.

Following a moderate cash flow in Q1, the second quarter showed a very strong operational cash flow, close to SEK 500 million better than Q2 last year. We managed to release significant working capital outside what we normally experience in Q2.

On a rolling 12-month perspective, the operational cash flow is exceptionally strong as part of the strong cash collection seen in Q2 is normally seen in Q4. Available liquidity decreased to SEK 4.3 billion, and net debt increased to SEK 4.7 billion as we distributed dividend and closed the AMC acquisition during Q2.

Our financial position remains strong. With a strong operational cash flow in Q2, we managed to keep our leverage, including restructuring costs, at three times, closing the restructuring program.

We expect leverage to remain around this level for Q3, and then to close the year at or below our financial target as significant restructuring costs are phasing out of the EBITDA component, particularly in Q4. With that, I leave back to you, Linda.

Thank you, Bo. Let me now provide you with an update on our strategy execution.

Our Unlocking AFRY strategy sets the direction towards our 2028 targets with a focus on leading position in selected segments, deeper client relationships across the full life cycle, expand our presence also beyond the Nordics, and an improved efficiency through harmonization and simplification. Over this past year, we have been driving significant change at a high pace to position AFRY for profitable growth and long-term competitiveness.

As you know, we have introduced a new group structure. It's supported by a clear roadmap with concrete initiatives and actions.

We have executed an extensive restructuring agenda, which we now have completed. We have divested or exited non-core business, and we have completed two strategic acquisitions in mining and metals, one of our key growth areas, and we are well underway with the integration.

In addition, we have launched a new resource management platform. As we now move forward, we shift focus to organic growth, combined with cost discipline, to capture the profitability uplift from the measures already implemented.

Our priorities also include further implementation of the resource management platform towards a more consistent, transparent, and connected way of working across the group. We are also gradually scaling our global delivery center capabilities to strengthen project execution, improve access to skilled resource, and enable a greater cost efficiency.

These efforts will be key to realizing the full benefits of our strategy and to drive profitable growth towards our 2028 targets. With that, we would like to open up for questions.

Great. Thank you, Linda and Bo.

We will now open up the Q&A session, so please raise your hand if you have a question. First in line, we have Dan Heimer from SEB.

Please go ahead.

Yes. Hi, Linda, Bo, and Johanna.

Hope you can hear me well. Seems like it, so that's good.

Maybe start with a question on profitability. You're taking now close to SEK 300 million restructuring cost.

I think you said 12 months payback on that, and your billing rate is up. The EBITDA margin just 7.3% now on an LTM base.

It's only marginally up versus a year ago. Help me first to understand why it's not following the improvements in the efficiency, where is the slack in the system, so to speak?

Yeah. I think it's of course a multifaceted question and answer to that.

I think the simple answer is that with the quite pressured organic growth that we see, the decline, in a sense, in gross margin contribution from that volume that we have, in a sense, deliberately taken out is then, in a sense, compensating for the efficiency effects that we see both on the utilization effect and as a consequence of the restructuring program. I think that's the simple answer to the question.

Of course, it's not easier experiencing a bit of market pressure, price pressure on top of that also affecting it. The main aspect is practically the very suppressed organic growth.

Understand. Maybe a follow-up on that, since now you seem to have a plan to accelerate organic growth from these levels, at least, and you have the order book in place.

Just how do you ensure that the ramp-up in organic growth lead to the anticipated improvements in profitability? Looking at 2021 to 2023, it was a special period, but you had relatively high organic growth back then, and your margins did not follow.

Yeah, just help me to understand why it's different this time when you probably need to ramp up recruitment as well, which initially could be margin dilutive.

No, it is exactly as you said. Historically, our growth has always come with a higher cost, so we haven't fully get the benefit of scale through AFRY.

Now, with the very necessary and structured approach that we have had, we have deliberately taken out volume. We have done a lot of cost implemented measures, very structured.

As Bo said, we do need now the organic growth to get the full benefit. We have pushed down cost.

We will continue to push down cost, but now we have a systematic approach of keeping it that when we have the growth then coming here on top. As you said, the growth is supported by the strong order backlog.

The timing, of course, of the projects in the backlog is a bit different. It varies from very small to extremely long projects over a period of maybe 10 years.

It will be a bit of a different phasing in this. We do see, within our strong areas, such as energy, defense, some part metal and mining, that the growth will come towards the end of this period.

Add to that, since you also referred to the 2021 to 2023, in a sense, growth that we had. That growth was primarily driven by acquired growth, not to the same efficient platform that we are currently moving into, a much more harmonized and efficient platform to add the organic growth to also reaping the benefits of that growth from scale.

Okay, perfect. Makes sense.

Maybe just two clarification questions from my side as well. The phasing and energy of larger projects, are you referring to a negative impact in this quarter that you expect to catch up, or how should I read that comment?

Also the SEK 15 million transaction cost for the AMC, that's not included in items affecting comparability, right?

I'll start with the last. No, it's not included in items affecting comparability.

It's included in the industry division's EBITDA for the quarter. To your first question, yes, in that sense, negative phasing effects on the sales side.

Looking at the relative low growth in the specific quarter for the energy division.

Perfect. I think that was all from my side right now.

Thank you very much, Linda and Bo.

Thank you, Dan. We have the next question from Adela Dashian from Jefferies.

Thank you, Johanna. Good morning.

Firstly, on the pricing pressure that you're experiencing, do you see any signs that this is stabilizing any time soon, or do you have any proactive measures to, I guess, get past that?

Should I start? Yeah.

As we reported now, we have seen some of the parts of the market where we have had pressure over a long time, or a softer market over a long time, leading to overcapacity in general. We see that in the price development, especially in automotive and to some extent also in the building part.

To address that, we are going into pockets where we see growth and where we see where we have a strong position. To be concrete, when we come to places and to buildings, for us, that means going even more into the hospital side of it, going even more into data centers, going more into defense-related buildings.

We are going to the parts of the building business where we are relevant and where we can find the right margins for AFRY going forward.

Okay. Thank you.

On the backlog, nice to see the improvement in the quarter. You did mention that you have a combination of larger and smaller orders.

Does it differ a lot from previous cycles? I think one of the efforts earlier on when you joined was to some extent increase your visibility with the orders.

Is it still very similar, or have we seen somewhat of a change to it?

Yeah, we have seen some changes. We have seen a larger part of sizable projects in our backlog, which is good.

They are also converted over a longer period of time. We do see a shift towards even more projects and more sizable projects in our backlog.

We're very comfortable with the margins of those projects.

That's good to hear. Last one on industry, in pulp and paper, can we get a market update on that specifically?

Yes. On pulp and paper, we have reported also that it has been a weak global market, especially Europe has been weak.

We don't see any big shifts on the CapEx side on the European market. We do see continuous improvement of the operation on the existing facilities, there we continue to be very well positioned.

We don't see the big volume uptick on pulp and paper, especially not in Europe yet.

Great. That's all from me.

Thank you.

Thank you, Adela. Next question is from Julia Sundvall from ABG.

Yes. Hi, and good morning.

Just a first question on the order book again. We see the revenue is falling, but how should I think about the timing in the order backlog as it is growing that much, as 8%?

You say it's longer than before, but is it 2027 heavy or 2028, or just some more flavor how we should think about the order backlog and revenue together?

Yeah, I can start with the backlog and development. Yes, you are right.

It is spread in time more than maybe we have seen before. That means that the impact is still ahead of us.

We do see parts of the backlog already in position to start accelerate. We find them within energy, we find them within especially transmission distribution part of energy.

We do find it within mining methods, and we do find it within defense. The sequence is a bit different for our different segments, but we do have a couple that are ready to start converting this year.

The majority you will see going forward.

To build on that, on the latter part of your question, the phasing of the backlog is very different by division. Some being much more long cycle in nature.

As a rule of thumb, if you look at AFRY overall, you could estimate that in the next 12 months, we will carry approximately 50% of the backlog as revenue. It can differ a bit between the divisions.

The majority of the backlog is to be delivered before end of 2027 from where we are. With the continuous fill-up and take out from the backlog.

Yeah, perfect. That's a good answer.

Thank you. On the organic growth or decline, could you give us some flavor, how much of the decline is due to capacity reductions, and how much is end market softness?

I think you understand the question.

Yeah. I'll start on that.

If you look at the negative organic, so 5% in the quarter, the vast majority of that is volume driven. We don't have a positive effect from pricing in the quarter.

The vast majority of the decline is volume driven. I would say that the volume reduction that we've done is practically a part of the strategic reductions that we've done throughout the last year.

The big majority of that is related to our own decided efforts. They are, of course, looking at the different segments on our attractiveness in relation to it.

There's a market relation to it, but it's still conscious choice of reducing our capacity in those segments. It's difficult to distinguish between, in a sense, market-driven strategic capacity because they go into each other.

Yeah. Yes, I see.

A follow-up on that one. The number of FTEs is still down quarter-over-quarter, mostly in the corporate and support function, but also some in transportation and places.

How should we think about net recruitment from now on? You say you want to focus on the organic growth, but how should we think about net recruitment?

We are now shifting focus even more on the organic growth part. With that comes naturally also a higher recruitment pace.

Just want to emphasize that we have welcomed 1,500 new AFRY employees this year, and we will increase that pace even further going forward. You're fully right.

We are now accelerating our initiatives to recruit.

And from a-

Okay

From a divisional perspective, I would not expect the group functions FTE to increase, but rather to decrease. From a divisional perspective, typically, the energy division is the division which is the most geared for growth in a sense.

In terms of distribution between the divisions, that's where I would expect the most ramp-up over the upcoming year.

Perfect. That was all from my side.

Thank you.

Thank you, Julia. We have Johan Sundén from DNB Carnegie.

Hi, Linda and Bo. Thank you for taking my questions.

I stop a little bit on the kind of organic growth discussion we have had here. Can you just help us bridge how and how long it will take for you to start grow organically again?

If you just look at the number of FTE that you report here at the end of Q2 and compare to what you had in H2 last year, you are still at some 3%-4% below that level. When in, say, 2027, will you be able to start grow organically again?

Is it before mid-summer 2027, or is it earlier than that?

It's a good observation, Johan. Of course, looking at the, in a sense, the phasing of the FTE development over the last 18 months or so, you see that the biggest decline was at the later part of 2025, in a sense.

From that perspective, we will, throughout this year, always meet, in a sense, a bit higher comparables from a year-over-year perspective. Going into next year, we won't have that comparison in a sense anymore.

Of course, organic growth would then be a combination of being successful in the market on pricing, but also then just putting the capacity there from a year-over-year perspective in terms of FTEs, because of all the backlog we have in that sense. Already going into next year, we have much a better starting point for actually being in positive territory next year.

It will be much more difficult throughout this year, just based on the phasing of the structural takeouts that we've done.

You mentioned 1,500 new recruited people. Any comment on employee turnover over the last quarter?

Yes. In a business like ours, it's a people business.

It's absolutely crucial that we are an attractive employer and that we are working with the right type of projects, and that we're driving the development in the direction that we want. I think that is shown in our ability to also attract and recruit people.

In a business like this also, people are leaving us. We are basically net zero so far, looking over the year.

We are seeing a positive trend from Q2 going forward. We will accelerate that as we said.

Our general attrition level is on a healthy level, and in line with how it has been historically, going forward as well. No big shifts in our attrition curve.

It was very stable in Q2.

Yeah.

Thanks for the clarification. I had a couple of questions on the AMC acquisition as well.

Do you expect significant synergy potential on either revenue or cost that we should be aware of?

We are expecting synergies from that acquisition. It links and matches very well into our Metals and Mining segment, from a global perspective.

I think it is a very complementary acquisition in that segment for us. We will have some synergies, both on the revenue side, strengthening our lifecycle offering across Metals and Mining, and we will have some on the cost side.

A good balance in between. The overall perspective on the AMC acquisition is that it is a really good company.

It has a very good strategic match for us, and it complements our offering in a good way. It should be a good synergy case, but not the material part being either on the revenue or the cost side.

A bit from both.

Can you give some kind of indication what kind of post synergy multiple you have paid? Because when I read the kind of acquisition analysis, it seems like a pretty rich multiple for the revenue level and EBITDA as it is today.

It's always a very successful company, with good growth opportunities. You pay a bit of higher multiples than you would for a turnaround case.

I don't see that we paid any elevated multiples for the AMC acquisition.

The kind of priorities on capital allocation as of now, going for buying AMC for, from my perspective, rich multiple versus buying back shares. How has those discussions developed or been?

I think we said all the way through that we will be careful in making acquisitions, but when we find the right target, even though we are in a phase of focusing very much on creating the basis for profitability uplift, then we will do that acquisition. AMC was just that example, a very good fit into the company.

I think you can always make that balance in between, but the M&A side of things is that, when you really find the attractive target, then you have to act on it, in a sense. Otherwise, it will pass.

Clear enough. Thanks a lot for answers.

I get back in line.

Thank you, Johan. We have Fredrik Lithell from Handelsbanken.

Please go ahead.

Thank you very much. Thank you for taking my questions as well.

I'm coming back to the backlog a little bit. Actually, what's the definition of the backlog?

If you say it's growing 8% year-over-year, and the growth is improving, but if the duration of the backlog is pushed out in time, it's a little bit weakening that number. Is there a duration stop, or could it be that the 8% growth is sort of contracts you will deliver on five years from now all of a sudden?

How should we think about that? I understand, Bo, you said that think about 50% of it within the next 12 months, but what's the definition?

The definition is projects sold, not yet delivered. That is the definition for us.

For a framework agreement, it's not booked into the backlog until we have an actual signed call off from the framework agreement. That's how we work with it.

As you said, rule of thumb. We have a clear ambition that to support our growth ambition, we will continue to increase our order backlog.

We have said that we want to push it towards SEK 30 billion in this strategy period. The mix, healthy mix, but we will guide even further on the conversion rate, but rule of thumb, still half of it-

Yeah

-in the next year.

I would-

The more we push it up, the more we have to.

Yeah, still to give you some guidance, kind of indirectly on the question, the 8% year-over-year increase, it's an actual increase of the order backlog. It's not compensated by just pushing the backlog out in time, even though that's a bit of a part of it.

We don't have a time stop on the backlog, so it can practically be a 20-year project, even though that's quite uncommon. Practically, it can be.

Okay. That's very clear.

Thank you. A question on the non-billable FTEs and what you have done there, and what you have done with the structural capital so far the last 12 months.

How much you feel the new platforms you're moving on top of, and so on, how much more of efficiencies you can reap out of that in terms of non-billables and lower costs for platforms and so on going forward?

Yeah, I think we made a lot of efforts during the last year. With that said, there's still some way to go.

What we're practically doing is that we're doing what many companies have done over a very long period of time. We're doing that in a significantly shorter period of time.

What we have done is that we've organized ourselves structurally, in a sense, the functional support domains, both from a group function perspective, but also in the business, in a sense. Started to work much more on harmonizing processes and finding efficiencies throughout.

At the same time, we are pursuing a lot of platform investments that we've done over a long period of time, working with ERP transitions, process harmonization, diving in towards utilizing AI in those processes at the same time. Those things will, over time, they will take a bit of time.

We progress quite a bit, but there's still significant potential for us to move forward practically in the couple of years to come.

That will lead to that, the non-billable staff and other types of costs will be a lower share of your total revenue going forward for the coming two years. Will you see a decline in that going forward?

It's two very different parts of the non-billable part. It's the more pure support part, and it's a non-billable part that is then connected to the business, as such.

Those are quite different in their nature. One which is much more sales and delivery oriented, and one which is much more support oriented.

We are expecting to further decrease those costs, particularly as a share of revenue, in a sense, to actually get the scale effects that we haven't been able to get previously, to actually get that this time around as we are now shifting towards driving organic growth.

Just a final one, Linda, you talk about the resource platform that has been in place now since the 1st of June, I think it is. We talked about this on Small & Midcap Seminar we had.

Can you give some sort of feedback on how it's progressing and do you see any effects from it this very early in?

Yeah. We have been working with the implementation now for some time.

The early effect you actually see in the improvement of our utilization rate, because this is part of our tool to visualize and enable understanding of where we have the projects, where we utilize our resources. That's the first, I would say, sign that you see is the improved utilization rate.

Moving forward, adding more and more intelligence and AI on this platform, we will be much more efficient in our tender work, but much more efficient in the staffing of our projects. There you will see over time an uptick both in lower cost, as we talked about, but also in higher project margins over time.

It's three dimension that we look. The first one, it's related to utilization rate.

We have the bid side of it, and then we have the execution side. Sales side of it, and then we have the execution side of it, where we will see impacts in all three over time.

Very clear. Thank you very much.

Thank you, Fredrik. The next question comes from Johan Dahl, from Danske Bank.

Yes. Good morning, everyone.

Just two brief questions. Firstly, on the order backlog, Linda, you talked about good profitability in the order backlog and a fairly swift invoicing, half of the backlog being invoiced in 12 months.

Just trying to understand what's your visibility of that profitability, because if you look on the restructuring that AFRY has done now, several KPIs moving in the right direction, such as billing ratio, group common cost. Now you talked about price pressure.

I'm just thinking, everything indicates that the backlog you're starting to invoice on, especially in the industry, is perhaps deteriorating profitability. Why is that the wrong way of looking at it?

I can start. The weaker price development we see is very much connected to the parts of the market where it has been challenging for a long period of time.

It's very much connected to automotive. We know that that business is going through a transformative change.

We also have seen it in the building. It is the short-term conversion of conversion projects related to those parts of our business.

It's not a general price pressure. It is quite connected to parts of our portfolio.

Just to add to it, for your understanding, when we talk about price pressure, it's mostly seen then in the very short cycled business. The short projects or even ranging towards the professional services business.

Whereas what goes into the order backlog is then primarily projects and projects of longer characteristics. There we have very meticulous, in a sense, profitability checks, particularly the bigger the project is, the more we require in terms of securing that the profitability margin of that project is at the right level.

Where in the business are you seeing internally that the order backlog is contributing to profitability in AFRY? Is it happening in energy in certain places, or where do you actually see it?

We see it in energy. We see it in, especially, I would say, in hydro and nuclear parts of energy so far.

We expect it in transmission and distribution as well. I would say that it's most evident in hydro and in nuclear so far.

Got you. Just a final question.

Bo, you talked about the phasing of restructuring in buildings, as that would impact the second half. I wasn't sure I followed you there.

What exactly did you mean?

I'm not sure what you refer to, actually.

We'll take that offline later. Thanks.

Okay, thank you. That was all the questions we had for today.

Yes. Okay.

We would like to thank you all for listening in today, and we wish you a wonderful summer. Thank you.

Thank you.