Thank you so much, Operator. Good morning everyone to this Q2 call for Enea.

This is Teemu Salmi speaking, and with me in the room I have Ulf Stigberg, our Chief Financial Officer, as mentioned. In the next 20 minutes we'll take you through the Q2 and first-half report and numbers.

We'll end up with some questions at the end if there might be any, both written and verbal. As said already now, we have a short introduction going through taking you through the quarter, the highlights of the quarter.

We will make a deep dive into our financial result. We will end off the presentation with way forward and our outlook as well.

It's, of course, not written here, but there is going to be time for questions at the end as well. Right, let's jump straight into it and look at the Q2 highlights.

As you might remember, we have from this year started to report our offering in two portfolios: our growth portfolio and our classic portfolio. We have good development in our growth portfolio.

We are growing that part of the business with 11% in the quarter. We have a very strong operational cash flow in the quarter.

The operational cash flow adds up to SEK 88 million, which is actually more than the last four quarters together in total. We have a very good development there.

Then also, another highlight is that our government business is continuing to growing in a very good pace as well, and we have added one new customer in the quarter as well in that domain. If we continue with a little bit more details about the market and business development for us in the quarter, we have in the first half a currency-adjusted growth of 6% net sales growth.

In the quarter it resembles a 1% currency-adjusted decline. Still, since we had such a good start of the year with a strong quarter one, we are reporting a 6% currency-adjusted growth for the first half of the year.

In the quarter, we have added five new customers, whereof four is in our growth portfolio and one new customer in our classic portfolio. It actually pretty much resembles the sales split that we have as well between the portfolios, which is 80/20 growth and classic.

For the new customers, we have added two new customers in Traffic Management and DPI. We have added one new enterprise customer as solely DPI, and we have added one new Firewall customer.

Those are the four customers that we've added in the growth portfolio. We have also added one AAA customer in our classic portfolio during the quarter.

Like I said already a couple of minutes ago, our government sector is growing very well, and we have a very good momentum there as well. We are definitely building a new vertical for Enea to stand on when it comes to our future growth, which is absolutely in line with our strategy as well.

We have added an Asian government customer in the quarter, which we also communicated at the end or early July separately as well. Our strategy execution is accelerating, and it's going according to plan.

I would like to just take the opportunity to talk a little bit about our strategy execution and what we have actually done in the last quarter. If you might recall, we have divided our strategy into three pillars.

One we call market acceleration, which is basically about making sure that we increase our capacity to sell more. Our vertical expansion, which summarizes in the fact that we want to take our great existing solutions and bring them into new verticals.

Here, government vertical is the vertical that we are betting on. Offering evolution is our third strategy execution area, which of course has to do with the fact that we need to continuously stay ahead of the curve and be relevant to our customers and relevant to the market with our offering.

In the market acceleration, we have in the quarter now expanded our global sales team. We have added four new sales team members, and we are adding two new now in quarter three as well.

We are pretty much done with that step change that we want to do in our global sales team. It's kind of a fundamental need in order to accelerate the growth of the company and get us to where we want to be as part of our three-year strategy that we have communicated earlier.

I'll come back to that, of course, in our outlook slide as well at the end. The good thing is that our total funnel, when we look at quarter two last year and quarter two this year, has grown with 29% in our growth portfolio.

It just shows that we are having a relevant portfolio for both our existing customer verticals and the new customer vertical that we are building. This is good signs for the future, for future business to be closed.

In the vertical expansion, like said, we have a major government win in the quarter. We have also added more leads in the government space in the quarter.

Of course, we have also continued to develop our fundamental business in the telco space, and it continues to develop well as well. In the offering evolution, we are now accelerating our AI capabilities.

In particular, we're also doing some enhancements and updates and releases of new capabilities and functionality to cater for the vertical expansion into government business by adding national security and defense offerings to our portfolio. Just to give one example of those offerings that we are working with is, of course, the fact that we see the usage of UAVs increase around the world, both for civilian cases but also for military cases.

Of course, the UAV development has gone super fast the past couple of years and has been increased usage both in warfare and civilian cases. Today, UAVs do not any longer require line of sight, but can actually be maneuvered based on command and control, moving over to, for instance, mobile networks.

We have been working from an Enea perspective to build solutions where we help national security, defense, and mobile operators to actually get visibility of the UAV traffic in the networks, which has not been a possibility before. We are providing solutions that enable full visibility of UAV traffic.

With that, obviously, you can also control the traffic of UAVs in the mobile networks, which is, of course, critical in all cases so that you can differentiate the communication for UAVs from other type of IoT connections or normal traffic in the networks. We are going to continue to develop more solutions, and we already are other existing solutions with Traffic Management, giving traffic classification, traffic profiling to this government sector as well is going very well.

There's a huge need of that, both for criminal investigation cases and military use cases and other government cases as well. We will definitely see that this vertical that we have entered into and we are building is going to continue to grow for Enea in the quarters and years to come.

With this, I would like to end just by saying a couple of words about our numbers for the second quarter and the first half. Then I will hand over to Ulf, who will take you through the details of the numbers.

The net sales in the second quarter ended up at SEK 218 million, which is a reported decline of 3% and a decline of 0.8% currency adjusted. It's pretty much a flat quarter for us in the second quarter, year-over-year.

Our margin is declining a bit to 25%. There's a mixed bag of things there.

One major component in there is the investments we are doing in order to accelerate our strategy execution. This is part of the plan.

We have already communicated earlier that we will see a drop in our profitability in the short term, but this is needed in order to accelerate for the future growth that we are anticipating as part of our strategy period. As I said in the beginning, we had a very strong quarter when it comes to our operating cash flow, adding up at SEK 88 million, which is in fact more than we've had in total in the four previous quarters.

We've had a very good, and we continue to have a very good and tactical focus on securing our cash flow. This has also led to the fact that we've been able to bring down our net debt now at SEK 192 million in the quarter and also, of course, in the year.

We have significantly improved our EPS, earnings per share, from last year's second quarter, where it was -SEK 0.46 to +SEK 0.66 in the second quarter of the year. R&D spend, we continue to have the same amount of R&D spend in the company.

We have to do this in order to stay relevant and to bring new capabilities to the market and beat competition. On the half year, first half year, like I said, we have a growth in net sales, currency-adjusted growth of 6%, reported growth of 1%.

Our EBITDA margin is at 30% in 2026 first half compared to 29% in the first half 2025. Even though we are making the investments that we are saying, we are actually in the first half of the year still more profitable than we were in the first half last year.

The rest I will not comment. You can see that it's just an organic development from the first quarter to the second quarter.

With that, I would like to hand over to Ulf, who will take us through a bit more of the details of the financials. Please, Ulf.

Thank you, Teemu. Net sales, a slight decline of 3% reported and a -1% currency adjusted.

The rolling 12 months increase, we report a 4% number. Year to date, we can see a 6% growth for the period of six months in the year.

25% adjusted EBITDA margin for the quarter. This is a result of a bit of increased cost.

We have SEK 17.8 million high or lower EBITDA due to a number of items here. We have some currency impacts of SEK 1.3.

We have some net sales decline of SEK 1.8. The total cost in fixed currency was increased by SEK 14.7 million.

SEK 4.8 of those are referring to non-recurring items and SEK 9.9 recurring cost, mainly related to annual salary reviews and expansions in the global sales team. We report a 9% adjusted EBIT margin, we can see the same pattern.

The reported EBITDA was 11%, earnings per share improved compared to quarter two last year. That's mostly related to the improved financial net development.

Looking at the trends within our different product groups, we can see that we have a growing trend in our growth portfolios. In the classic, we have a flat development during the last quarters and a slight decline compared to the quarter two last year.

Put in figures, we can see that the new Traffic Management deals in the quarter has supported the growth within the Network Performance and Intelligence. We can see a 20% increase in fixed currency within that product portfolio.

We can also see that the DPI business continued to develop positively with both sales of current business and to new customers. The Network Access Control business is more mature and thus depending on fewer opportunities that varies between the quarters.

In this quarter, we can see a decline of 31% in fixed currency. For the first half year, we have a similar pattern, although for this period, we see that the Signaling and Messaging Security area has the biggest increase, and that's thanks to a very good outcome in quarter one this year.

We have less exposure in financial net thanks to reduction of exposure in currency holdings, which leads us to a currency net of -SEK 2.4 in this quarter compared to SEK 39 previous quarter or quarter two last year. This will actually help us when we look at the improved cash flow.

The financial net, as you see in the marked row two here, is going from -SEK 39 a year ago to -SEK 2.4. We also can see a significant improvement in change in working capital, going from a negative quarterly reported figures to a +SEK 29.6 in this quarter, leaves us to a positive cash flow from operations of SEK 88 million this quarter.

This, of course, impacts our net debt that has developed from SEK 187. During the last quarters, we actually increased the net debt, but now in this quarter, we have reduced it from SEK 240-SEK 192.

This translates into our KPIs with a quite low leverage when it comes to financing for the company at this moment. That was the end of the financial part.

Thank you, Ulf. A couple of comments about a way forward and outlook, and after that, we will open up for questions as well.

I'm just going to highlight, come back to the Q2 highlights, excuse me, and reiterate them again. We see great momentum in our growth portfolio with the growth of 11% in the quarter.

Our strong operational cash flow, we are now working with releasing, like you see, the working capital that we have built up with investments in business in different parts of the world. Of course, we will keep on having that strong focus for the quarters to come as well.

Last but not least, our government business is growing and developing into a new customer vertical for Enea, which also then gives us better leverage and better or lower risk when it comes to the customer base that we are serving and the business that we are growing. Short-term outlook, you will recognize this from quarter one.

There is just one new comment in the short-term outlook, and that's the third bullet on this slide, which is that the geopolitical challenges in the Middle East are creating a little bit of unpredictability for us. We've seen deals where we thought that they would be closed in the quarter that have slipped.

That does not mean that we have lost the deals, but for obvious reasons, our customers in the Gulf, they have other priorities when there is a kinetic war going on. I would not say that it has created an uncertainty for our business because the geopolitical situation in the Middle East, in the discussions we are having with our customers, is increasing their necessity to invest in security.

In the very short term, when you are in a tough situation from a political perspective and you are in war, the priorities might change in short-term point of view. That is kind of the only change that we made to our short-term outlook.

Our guidance stays firm. We have not changed our guidance.

Our guidance for 2026 is that we will have single-digit growth in the year. We will have an adjusted EBITDA margin over 30%, and we will continue to invest in order to accelerate our growth, which is aligned with the strategy that we communicated in November 2025.

Finally, also then just mentioning a long-term financial ambition, also connected to our strategy that we communicated in the end of last year. We have not changed that at all.

We are only in the beginning of that, the acceleration and the execution of our strategy period. Our long-term ambition is to, over the next three-year period, which starts this year and ends in 2028, to deliver an average compounded growth rate of 10% or more.

I've said that from the beginning, this will not be linear. It will be a continuously increasing growth for the company.

It is much related to the long cycles that we have in sales, that where we are now investing in more sales capacity and capability, it will start yielding in business later on. We will see a continuous growth of our business for the years to come.

On the profitability side, we are looking at having an EBITDA over 35% at the end of this three-year period. When we exit 2028, this profitability should be there, supported also by the growth that is mentioned in the first part of the statement on the slide.

Good, Ulf. With that, we have come actually to the end of the presentation, we are now ready to take some questions.

Hi, Teemu and Ulf. I hope you're well, thank you for the presentation.

Initially, I would like to hear how you view the current market environment, particularly in the telecom side of your business, and whether you have seen any indirect impact on budgets et cetera, from the rising input component prices, which also, for example, Ericsson flagged about yesterday.

Yeah, thanks. Thank you, Simon.

Thanks for a good and super relevant question. Of course, with our telecom customers, this is a topic that comes up, right, continuously, honestly speaking, more and more now lately.

Of course, there we need to also be very innovative with our customers, saying that, you know, how can we look at utilizing existing hardware footprint, reutilizing already installed base for new deployments with our software. At the same time, we're also spending quite a lot of money in our R&D to reduce our hardware footprint so that the hardware footprint our customers need to deploy our solution is getting less.

To answer your question, if this is a topic that we hear in the discussion with our customers in the telco sector, yes, definitely it is. We have not seen we, of course, defend our software prices, right?

We have not seen so much impact yet. Is this a risk for us moving ahead?

Of course it is, we are trying to manage it like I said, from many different angles in order to also defend our software prices and margins moving ahead.

Very clear. Thank you so much.

On the deal slippage that you mentioned, are these deals that you anticipate close before year-end, or could it take longer than that?

Yeah, if I had the crystal ball, Teemu. Honestly speaking, I mean, you know the ones, because of course here I know exactly what we're talking about.

I cannot disclose it in the call, but we also know that the customers that we're talking about here, they have a necessity to deploy what, you know, the discussions we have. On these specific things that we discuss, I do not anticipate them to slip over the year.

I do expect them still to be handled and closed in the year. Having said that, you know it is a war ongoing in the Gulf.

I think I'm not going to comment or predict what's going to happen with that one. I'm not qualified to do that.

Of course, there's a risk, but I would see right now that the risk is on the lower side.

Very fair. Appreciate it.

It's a challenging question to answer. Predictions are always hard, especially about the future.

Finally, just on free cash flow, it shows good progress here, which is in my view, encouraging to see. Is your assessment that networking capital is now at a normalized level, or could we see further improvements?

Do you want to comment, Ulf?

That's a good question, Simon. We are still, I mean, betting and continue to do business in the Middle East area and the Africa area.

We will continue to see maybe longer DSO cycles in these areas. I would predict that we are lowering our working capital during the year, this is what we aim for, and this is possible to achieve, I think with the current conditions.

Just to add there, Simon, of course, you know, we started this acceleration actually just before I joined the company, a year and a half, almost two years ago. Of course, somewhere in that cycle, you also have to start taking out things that you started with, right?

You start converting the older business into cash, you know, once the deployments are done. Of course, there's an initial step on the ladder to take, somewhere in time, you also need to start cashing out.

I think that we are starting to see some of that coming through now, yes.

Thank you. I don't know if this is your final appearance, Ulf if so, good luck in your future endeavors and thanks for this time.

Thank you very much.

All right, good morning, gentlemen. I have a follow-up on the deal slippage.

I believe in Q1 you mentioned it was SEK 10 million-SEK 15 million, now you say SEK 7 million-SEK 10 million. I'm just curious what's going on there.

Thank you.

I think that what we see, of course, there, Rasmus, it's a good question. It's not always the same deal.

Some deals actually come through as well, which has been a slippage, you see, unfortunately, new slippage that you have calculated to be monetized in the quarter, right? I think it's a dynamic play that we're seeing, and it's super hard for us to estimate and predict based on what's happening on a daily basis in the Gulf.

One week, it can look like, okay, we are now getting to a conclusion and we're about to sign, suddenly something else happens that is out of our control, right? You know, we do have new business in the Gulf.

It's not stable or it's not zero and nothing, but there are different deals where we are looking at slippage over the quarters. Unfortunately, this conflict has been started in February, as we remember, which had an impact on Q1, it has continued now throughout Q2, which has now an impact on Q2 as well.

You know, from a quarterly perspective, there are differences.

All right, that's excellent. I have a follow-up question on the classic segment.

I believe you have had two quarters of almost a 30% decline year-over-year. I'm curious if there is anything going on in the comparison quarter that is making it a particular hard comparison, or if this is a growth level that is normal within the segment.

Let Ulf come back on the comparison quarter in just a bit, right? Before I hand over to Ulf on that, if we start with Operating Systems that is part of, I mean, we have two parts of the classic portfolio, the Operating Systems and the Network Access Control.

If we start with the Operating Systems, actually, we are where we're supposed to be on our budget. We have said many years before I even started that Operating Systems is in structural decline.

Operating Systems is, I would say, performing right now where we are expecting it to be, to be fair and to be honest. On the Network Access Control, we had anticipated a bit of a more heavy backend of the year.

Having said that, we would have also anticipated a bit further on at this point in time in the year. We are focusing now on accelerating the deals because we have deals in Network Access Control that will close in the second half of the year.

There is still a possibility for us to catch up. I and we would have wished to be a bit further ahead with that product group and the business development in the second quarter than what we are.

Ulf, can you comment on the comparability there?

If you look in the report on the trend graphs, we can actually see that the Q2 last year was a higher quarter than normal. You're right the comparability, put some extra challenges when looking at the decline compared to Q2 last year.

We had a good Q2, 2025, within Network Access Control that actually turns out the decline figure looks quite high.

All right, excellent. Then I just want to ask you guys about the recurring revenue that you have started to disclose now in Q1 and now in Q2.

It seems like the recurring revenue piece fell 8% quarter-over-quarter. How should we think about this?

I think, Rasmus, I said this to you before, maybe some metrics we should not even report in a quarter because, of course, it has to do with what business dynamics we have in the quarter and what we're selling in the quarter, right? You should look at this from a longer perspective and longer timeframe, right?

Yeah, the business mix that we have in quarter two now makes our recurring revenues to be a bit lower, but in the longer run, I would not see a bit of a bigger dramatic shift there. I don't know, Ulf, if you want to comment on that further.

Also back to the Middle East Africa region, we have, I mean, taking in quite big deals during the last couple of quarters, they tend to take a long time to deploy. When these projects are deployed, we can activate the support and maintenance, that takes a little bit longer time than anticipated.

We have additions that come in, we have some decline in older terminated agreements that works in a negative fashion to our recurring revenue figures, of course.

All right. Then the final question for me is, I believe you said that you're going to post the buybacks for us to invest in your strategy.

Considering that you have a very good net debt level and so on, can you comment a bit more about why you are pausing the buybacks here? Thank you.

Thank you, Rasmus. I think, first of all, I think it is actually more a question to the board than to myself, honestly, the buyback topic, but I will try to shed some light on the buyback.

I mean, you know, we've said that we are investing for growth, and investing, you know, capital allocation is always a hard topic to, you know, decide on what to do. With capital, of course, and a good free cash flow, you have choices, right?

First of all, this quarter, what we have chosen to do with our good operating cash flow is to pay down our debts, right? We have actually come down to a debt level where we were one year ago.

Honestly speaking, you know, it's, you know, you can look at it from the perspective, it's not, we're back to where we started, right? Then we are betting now on that there are investment topics for us to do where we need some cash.

We have decided now to make sure that in order to cater for the growth that we are communicating to you and to the rest of the market, we will need some cash in the short term. That's why we have the decision that we have right now.

Obviously, this can change, right? You know, it's just a pause.

We've communicated a pause. When that pause will end, I don't know.

That's something that we will need to come back to in a closer discussion with our board.

All right, thank you very much for those details. That's all the questions for me.

I would like to take the time to thank you, Ulf, for this time. Good luck in your future endeavors.

Thank you.

Thank you, operator. I see that we at this point in time, we have one, or actually one person who have sent in three questions.

It's about Access Control falling off a cliff, especially including recurring revenue. Why?

I think we've answered that question already with the discussion with Simon and Rasmus. We also, I think, answered the last question, nice cash flow.

Thank you. Enea trades around 20% free cash flow yield.

Please restart your share buybacks as soon as possible as very attractive. I also think commented that, so I will not comment that further.

There's a third question. When will ramp-up in number of employees be visible in revenues?

You mentioned full effect in 2027, whereas previously you have talked about acceleration for second half 2026. I think it's a good summary.

It's exactly where we see it right now. I mean, we will see, I hope, an acceleration in the second half of 2026, but given the fact that our sales cycles are 12-18 months generally, even a bit longer could be in the government sector, depending on use case, I would say, and depending on where we stand, because we've seen much shorter sales cycles as well.

It will take. Now we have added four new sales team members in the first half of the year, or actually second quarter of the year, it will take them some time to get into Enea our product portfolio and to do the sales and to conclude sales.

That's why we're saying that the full effect now, when we are ready with the ramp-up of our global sales team, will take 12-18 months, thus taking us into the end of 2027 before we have the full effect in place. Does that mean that we will have no impact before that?

Of course not. We will see a gradual acceleration of our sales moving into the second half of this year and also into 2027.

The full effect of our investments in sales will be visible as of 2028. We are not an IKEA.

We are not an ICA with billions of transactions. We have fewer transactions, but they are larger in size, and there's a longer sales cycle as well.

That's kind of the dynamics of our business. Good.

We have no further questions on the call, operator. If there are nothing else, I would like to thank you all for your participation.

I would also like to take the opportunity to wish you all a great summer ahead. If not earlier, I'll, me and Ulf, or me at least, will speak to you in the end of third quarter report as well.

Thank you for now, bye bye.