Good morning, everybody, and welcome to Framery's second-quarter 2026 results webcast. My name is Kati Kaksonen.

I'm responsible for investor relations here at Framery. Good to meet you all.

Today, as usual, will go through the results. First, a mandatory disclaimer that I'm sure that you have familiarized yourself with.

Our CEO, Samu Hällfors, and our CFO, Lauri Isotalo, will go through the results, the key highlights and financial performance for the period, and we'll follow that with a Q&A session. As a reminder, you can submit your questions throughout the webcast.

With that, over to you, Samu. Go ahead.

Thank you. Welcome to follow the webcast on my behalf as well, and we'll jump into the results of quarter two.

Starting from the revenue of quarter two, we hit the revenue of 51 million, which was 3.7% down from the comparison period. However, the underlying revenue growth, excluding the largest one key customer, was up 7% compared to year before.

When going into the profitability, our adjusted EBIT grew to 12 million euros, which was 23% of revenue. This was a significant improvement from the comparison period and a good result for the whole company.

The good profitability was also visible in the operating free cash flow, which was 14 million, up from 8 million year before. The earnings took a even larger leap, which was €0.14 per share, up from 2 cents per share year before.

This was mainly driven by the profitability improvements, also the tariff returns that we got from the US government, and also the interest rates in our financing and financing costs went down significantly. Similar picture paints the whole half one of this year.

The revenue was 110 million, which was down 1.9% from the comparison period, but the underlying revenue growth was plus 11%, being in line with our long-term and mid-term targets. The adjusted EBIT was 26 million euros, or 24% of revenue, in line with the half one year before.

Same story goes on the operating free cash flow, which was 19 million euros, up from 15 million euros year before. As for the quarter two, the earnings per share took a bigger leap to 27 cents per share, up from 14 cents year before.

Overall, the whole quarter was marked with good profitability improvement, which was driven by our price increases conducted in the late '25 and in the beginning of '26, and now, in this quarter, the full impact was visible in the numbers. If we take a look at the top-line figures and more in depth the market areas, we can see a slightly more diverse picture.

Starting from the positives and from the quarter two, our Americas revenue grew 4%, or in the underlying growth of 34%, which was especially strong and very satisfying. This was driven by good momentum in the whole market area.

There's a slightly different picture with EMEA and APAC, and which was slightly disappointing for the management, as the revenue growth was -4%, or underlying growth of -3%. In APAC, similar story, -21% in revenue, or in the underlying growth terms, -4%.

EMEA and APAC regions were impacted by the Iran War starting and some kind of shock from there, some orders postponing during the quarter two, on top of which we have seen slightly slower macroeconomic pace in the Nordics especially and in the German-speaking countries in Europe. The momentum hasn't been as strong as in North America, which was very strong.

Now, in the H1 full half year, the story is basically the same. In the North America market, growth was 25%, or in the underlying growth terms, 44%; EMEA, -1%, both in reported growth and underlying growth; and in APAC, -41%, or underlying growth of 3%.

In APAC especially, the comparison period has had many deliveries to our single largest end customer, which is now explaining the difference there. Slight recap on our growth strategy: we have continued to execute our growth strategy in all four projects that we are running, and if I go briefly through the whole picture, basically, our growth strategy is based on two different themes: the best smart pods and smart office solutions in the market, which is the offering part, which consists of two different projects, first of which is the further strengthen our leading product-market fit in all market regions.

Out of this project, the biggest highlight of this quarter is the launch of our new product line, which I will tell a little bit more later on. Secondly, to drive the adoption of smart office solutions, to scale the SaaS business of smart office.

In this particular topic, we have now launched the API platform for our reporting, which means that our customers are enabled to build their own solutions on top of our data platform, and we have started shipping our new smart sensors to end customers, which have given and gotten very good momentum and pace from the customers and attraction. The second topic of our growth strategy is the effortless global availability, which is then consisting of, again, two projects: third is the drive growth through the tailored go-to-market strategies, meaning that we will target all of our measured 44 different market areas with tailored go-to-market strategies, implementing the growth strategy, optimizing the sales network in all of these markets individually; and fourth is to deploy the smart Framery Subscribed model globally with dealers.

The Subscribed model has continued to scale outside of the home markets of Finland and Nordics, and the growth there has been approximately 10% year over year now in the second quarter. Now, jumping to the biggest highlight of quarter two in the growth strategy is the successful product line launch for North America and the product family of Framery Qradus.

Framery Qradus is built on three different products basically, consisting of all different use cases that offices usually need: one-person phone booths and pods, then one-person workstation, which is completely new type of product for us, and then small meeting rooms that will help people in the offices to have one-to-one meetings or small group meetings in the office. These products were launched in Chicago in June within the one of the largest industry fairs in the world, NeoCon, in North America.

The product line was very well received by the end customers, and we have started to get orders for the products from both end customers and for the showroom units for our distributor partners in North America, and the deliveries are expected to start in quarter three this year. Similar story goes for the production in the North American market.

We started to ramp up our factory in Michigan already during the summer, and when the first customer products will be shipped out from the factory, meaning the Framery Qradus products, that will mean also that the operation is up and running as planned in the North America. This is a very significant and important project for us, and to ramp up the facility and the production there, as the whole market area is growing rapidly and the strong momentum will be then supported by the new product line that is fully designed for the local design needs, the architects' preferences, and the end customer needs in particular.

We are expecting this to result in significant and meaningful numbers in the reporting earliest in the first half of '27. A little bit about the market outlook going forward: despite the current volatile environment and the macroeconomic softness in the EMEA and APAC, we are positive about the medium- and long-term outlook for our products.

The fundamental drivers for product demand and adoption hasn't changed at all, and the North America especially has very good momentum going forward. We're expecting to see positive numbers there and positive momentum in global scale as well.

That needs to be said that while the North America market is doing good, as mentioned, the EMEA and APAC are affected by the macroeconomic situation, on top of which we have some additional uncertainty due to the Iran War and oil prices globally affecting the global demand in office furniture sector. We are remaining extremely positive and optimistic about the mid- and long-term outlook.

With that, I will hand over to Lauri to go more in detail through the financial performance.

Very good. Thank you, Samu.

If we start with the revenue, as Samu mentioned, the second-quarter revenue reached 51.4 million, a slight decrease from last year. Of course, last year we had those extraordinary large shipments to that single large end customer, the growth without that particular customer was 7% in the second quarter.

This in this despite the volatile market environment, as mentioned. That meant that the first-half revenue reached 109.7 million, again slightly below the last year, but without the single largest end customer, the underlying growth was more than 11%.

The market is overall developing into the direction where we are expecting even even again, as mentioned, in this environment. As we can see in the top right-hand corner picture that paints a picture on how the overall market is developing in the last 12 months.

In the EBIT and adjusted EBIT, quite a few things going on. In the second quarter, the adjusted EBIT reached 12 million and was driven by both the price price increases we did, also the improved tariff environment, including the tariff refund we got, and as well as on the more favorable exchange rates compared to year before.

The second quarter last year, we had, of course, the US dollar weakening significantly. That meant that the adjusted EBIT reached 12 million compared to the 10 million year before.

Now when looking at the first-half adjusted EBIT, we reached 26.1 million, or close to 24% of revenue, a slight decrease from year before from 26.8 million, or 23.9% revenue of revenue. Of course, with that, the again the last 12 months adjusted EBIT percentage improving to 22.6%.

If we look at the KPI summary and here maybe especially highlighting the EBIT for the quarter of 14.6 million, or more than 28% of revenue. That shows on top of the aforementioned drivers also again the tariff refund, also the portion that was from the tariffs paid last year, which we adjusted out, but is of course visible in the EBIT numbers, as well as then certain IPO- and related costs from last year.

Hence, the almost tripling in the EBIT for the quarter. On top of that, if we look at the earnings per share, that increased percentage-wise even more as that was also improved by the significantly decreased financing costs following the IPO and refinance done at the time.

If we break it down a little bit to the different components, starting from the revenue for the second quarter. With last year's 53.3 million in revenue, we did ship quantity-wise less pods, hence the slight decrease from there, but that was compensated by price increases.

Needs to be said, though, that the full impact of the price increases was slightly muted by the less favorable product mix. That's volatile from or changing from quarter to quarter.

With that, the revenue excluding the exchange rate effect was 51.6, and with the slight decrease from the exchange rate impact reaching the 51.4 million. Now on adjusted EBIT, there's quite a bit more going on.

If we walk it item by item, again, the combined impact from the volume, price, and the mix changes was negative of 1.8 million, but at the same time, the materials and services used was was less by about 0.8, hence compensating, as well as then the the tariff impact, which is then the second materials and services there, was 1.3 million less than year before. Then we had significantly less employee expenses of 5.5 million, but most of that, or 3.9 million, was from last year's one-off incentive programs and hence adjusted out from the adjusted EBIT.

Then on the operating expenses, altogether expenses were 1.4 million larger, meaning that there was again certain IPO-related costs visible there. Then lastly there, we booked the tariff impact that was from the tariff cost from last year into the other income, hence quite a bit more there, but again adjusted out from these quarters and this half's adjusted EBIT, hence the negative 2.7 million there.

Altogether, the adjusted EBIT excluding the exchange rates was 10.3 million, and as mentioned, last year the second quarter had a negative development there from the US dollar, this year that explains the 1.7 million more to the result of 12 million. Quite a few items there, but still, even with all that, the the 12 million well represents our current profitability level for the quarter.

Very similar story when looking at the full first half. Again, a slight decrease from less pods shipped, but that was compensated and more by the price increases compared to the last year, reaching the revenue before the exchange rate effect of 12.4 112.4 million and then after the exchange rate effect of 109.7 million.

Very similar bridge there when looking at the first-half adjusted EBIT compared to year before. Slight increase from the combined effects of volume, price, and mix; more impact from less cost of materials and services, meaning the cost of goods sold; slightly more tariffs paid, as of course last year's Q1 didn't have the tariffs in force yet; and then the aforementioned employee benefit, both the adjustment and the expense line; the operating expenses more than last year slightly; and again, the tariff refund then now in the second quarter visible there.

All that bringing the adjusted EBIT before the exchange rate impact to 25.1 million and with the exchange rate impact to 26.1. Just to open up the tariff refund a bit more: so starting from end of Q1, or February, when the US Supreme Court made the decision that at the time in force which was in force was the 15% IEEPA tariff, which was declared unlawful and to be returned to the importers with interest.

We applied for the refund and received it at the end of the second quarter, totaling 4.7 million. Out of that, 1.7 million was the tariff cost which was booked for first half of this year, and as such, the 1.7 million of the refund was used to counter counterweight that.

2.7 million was the tariff cost from last year, and as such, that was booked to the other income and then adjusted out from the adjusted EBIT. Then additionally, 0.2 million was used to decrease the remaining landed cost of the inventory where there was still this particular tariff.

Then additionally, as mandated by the Supreme Court, we also returned interest from the US government or customs of 0.2 million, which was then booked into the finance income for the quarter. This return now covered more than 99% of the total claim, not much is more is expected from that.

There were also changes into the US tariff environment after the quarter. Now on 24th of July, or last Friday, the temporary tariff of Section 122 ended, but was immediately replaced by the Section 301 tariff, which effectively didn't change much as the tariff rate stayed at the 10%.

Hence, at least for now, the tariff environment from our perspective remains stable. Then if we look at the a bit more onto the cash flow, a very positive cash flow for the year quarter of 14.4 million compared to 7.5 year before, and driven especially by the good profitability, the tariff refund, and also certain net working capital fluctuation.

Net working capital fluctuation is rather typical for the business. Compared to June '25, when the net working capital was rather high, then to the December '25, when it was quite low, and now somewhere in between, so that sort of a fluctuation is is very typical for the business.

That also explains in part of the cash conversion of 106% compared to the 65% year before. When looking at the first-half operating free cash flow, we reached 18.8 million compared to 15.4 year before.

While the investments did increase to 2.6 million from 1.8 million year before, following the launch of the Qradus family as well as the beginning of the manufacturing operation, that's just as as well as the expansion of the Subscribed fleet, that just goes to show how asset-light the operation is even when expanding like that. That also brought the cash conversion for the first half to 64.8% up from 51.8 year before.

Certainly, the same story continues when looking at the return on capital employed: so high level with continued good profitability, low fixed assets, and even when including the certain net working capital fluctuations, still high at 104.2%. Capital employed steady from Q1, although increased from year before, currently at 47.8 million compared to 39.7 year before.

That brings us to the current financing status. The very low leverage and the strong financial position continues, and of course noteworthy is that we did pay the dividends now in May, but even with that included, the leverage was at 1.2.

Net debt, of course, decreasing from year before to 69.4 million. Then to conclude, as Samu mentioned before, we remain very confident in our mid- and long-term financial targets with growth of more than 10% annually on average using the last year as the baseline and the mid-term target of 25% in adjusted operating profit or adjusted EBIT in the mid-term and the leverage to stay below 2, and as seen, there's quite a bit headroom there.

Thanks to the excellent cash flow, we also keep the dividend policy as is, where we will pay 70% to 90% of the earnings and part of which may be executed through the share buybacks going forward. With that, I think we are ready for the questions.

Thank you, Lauri. Just as reminder if you still have more questions, please submit them through the webcast.

We'll start with Daniel Lepistö, Danske Bank: did the project-related delays due to the war in Iran already resolved during the quarter or is there any spillover effect to be expected for Q3 or Q4?

Yeah. We certainly saw when the start of the Iran War, certain delay or hesitation, none of the project cancellations that needs to be highlighted.

Of course, during the quarter, the situation improved significantly, but now we've of course seen a bit of increased volatility there in the Iran again. Remains to be seen how long the war continues and what the impacts are for the full quarter.

Much will depend on how long the war continues.

Yeah. Thanks.

Then we'll continue with Miika Ihamäki talking about the Americas growth rate in Q2, especially on a strong underlying basis: can you describe it in a bit more detail how the activity and the pipeline looks like in North America in general, and has there been any surprises to our initial expectations, and then maybe I'll jump into the follow-up because there's quite a few questions in the same line, if you want to start with Americas in general?

Yes, in Americas in general, we have seen a strong momentum for already couple quarters and even longer time period, and we are expecting the good momentum to continue as it's not coming from any single source, but actually quite broadly from the whole market area. What we are expecting to see is the adaptation of pods to offices to continue at same pace, or the growth rate to be very good in the future as well.

Now the new product line that we launched is very targeted to also meet the different expectations and different needs from different areas from the United States and the architectural design to fit to the more and more diverse offices. We expect the good momentum to continue, and we've seen the good momentum to continue already for a few quarters.

Great. Then maybe talking about the manufacturing and scaling up the Michigan site: can we give a little bit more specifics on the timeline on the expected full scale of operations there, and any potential impacts on profitability and potential gross margin differentials between the US and Finnish pods?

Yeah. It's going very well on plan, and we are already producing the first pods there, and we are able to ship them, as Samu mentioned earlier, from the Q3 onwards.

As for the question, it's more about how the demand develops than about our supply capability. We are very confident that we can supply the needed amounts already this year, and then especially more visible starting from first half next year.

As for the GM levels or more specifics, we're not going to give the specifics at the time, but we expect that the margins to be in line with the current portfolio.

Very good. Then jumping to Daniel Lepistö from Danske Bank: can we elaborate a bit on the cautious EMEA outlook and weaker macro?

Are we seeing any changes in the customer behavior, and how big is that impact compared to earlier this year or later last year?

The macroeconomic environment, as we know, has been quite challenging in the Nordics especially, not just in our industry, but in many other industries as well. No specifics about the fact, but usually the macroeconomic environment is affecting the amount of office renovations and office movings happening in the market area.

That being said, we are seeing already in all of these markets positive momentum in particular in our customer base and in our niche market area where pods are being implemented to offices despite the not-so-strong office furniture market.

Very good. Then we have six questions from Antti Kansanen, SEB.

I'll start with the first one and then break it one by one. The impacts of the war in Iran were momentarily visible, but customer behavior normalized during the quarter is direct quotation from our report.

Can we quantify the impact in Q2, and would we be expecting a recovery in Q3 or second half of the year in EMEA and APAC from this impact in general? Yeah.

First maybe on the quantifying, of course very hard to say any specific numbers how we analyzed that we had a moderate impact of single-digit millions, but that would be the ballpark. As for the normalization, that very much depends on how the actual situation develops in Iran.

As we all know, now the oil price has increased again, and uncertainty continues, but for how long, that's a bit difficult to say. Then

there's a second question referring to the larger client in H2 last year and regarding which regions' sale contribution was most substantial, but you can actually see it from the slide, a breakdown of the underlying growth on a regional basis, but anything that you want to expand on?

On the next half, it was more based in the Americas.

Great. Then jumping into the European demand or weak macro: has the demand environment worsened throughout the first half or second quarter, and is it substantially below last year's H2 levels?

Again, very much situation remains volatile, and even in EMEA, it's a bit region-based. Like said, the macro in Nordics and in the German-speaking Europe has been weaker than, for example, in the West Europe.

Difficult to give such a short-term guidance on a specific market at this point.

Yes. Then talking about the order book development in Q2: how did that compared to the Q1 situation?

Overall, the market regions performed, as Samu mentioned, with the better results in the Americas than EMEA and APAC, and of course comparing Q1 to Q2, from that perspective, we also need to take into account certain seasonality that we see. Typically, there's more in Q2 than in Q1, but we're not giving out specific order books as a part of the financials.

Super. Then talking about the Qradus product line introduction in the Americas: do we expect to see any temporary negative impact on the product launch, meaning clients waiting for the new product to come in and postponing orders for that reason?

That's not expected as usually in our market, the product is specified to a specific project, usually 6 to 8 months before the actual project deliveries, and in our case, we are now basically able to take orders and ship the products if customers so choose. It's more about our products to getting first to dealer showrooms, then the architect specking them into the new upcoming projects, and then the projects realizing in approximately 6 to 8 months from the specking moment at the dealer showrooms.

Usually this is how it turns out. Customers usually don't switch to one product to another or wait for another product to come because usually these products are delivered as part of a full office renovation project, and thus they usually not willing to wait for any specific products.

Great. Then finally, last question from Antti regarding the profitability: should one expect further improvement on net of inflation pricing during the second half of the year, and are price increases visible on gross margins of Q2?

Is there any more tariff refunds expected in one-offs in the second half of the year?

Starting from the tariff refunds, no, we don't expect any significant tariff refunds anymore for the second half. As for the price increases, they are well in the Q2 figures already.

Hence, the margins more driven again by the revenue than things of that nature.

Very good. Then moving on to Tuomas Westerholm from Inderes: how would we estimate the overall market development in our category during the second quarter in the EMEA and APAC regions, and is the declining underlying growth a sign of market share losses or solely market-level shrinkage and weakness of demand?

Our estimation is that the market as whole has now performed under our expectations in EMEA and APAC region, and we haven't seen any significant or changes in our own performance compared to competing manufacturers. We estimate the market as whole to be performing below our expectations at the moment.

Not a competitiveness issue, but a weak demand environment in general. Then jumping into Miika Ihamäki question regarding the order book: what does the order book look like for the second half from the largest single customer?

I guess this is a question whether the underlying basis is moving when we go into the second half of the year. Secondly, is our broader customer base compensating sufficiently for to sustain the double-digit underlying organic growth excluding the largest customer impact?

Yeah. When talking about the largest customer, they keep on ordering, and we keep on shipping to them.

It's just that the levels are more normalized to the level of any big end customer. It's more about the last year which was the exception than this year.

As for the other customer base, like we saw in the first half with the underlying growth of 11%, we do see that that's the same driver for the mid-term targets of more than 10% growth.

Very good. Then jumping back to Tuomas from Inderes on customer behavior: based on our discussions with customers, is the return to office trend still ongoing or has it stabilized?

It really depends on the market area that we are speaking, and it really happens in different phases in different markets, even different phases in different industries. As whole, it has stabilized in global aspect quite well to 3 days from office.

That being said, the mandates or the shifts within individual companies keep on going as we're seeing different companies to react and adjust their working habits through the organizations. Maybe US market being the most actively now doing these changes and pushing towards working hybridly or more from the office as well.

Very good. Then maybe continuing on the first customer impressions from the Qradus line: how is the initial demand looking like, and do we expect Qradus to be a clear growth driver in the Americas region, or more of a margins hedge against the volatile tariff situation?

The new product family was very well received by the architects and dealers and end customers who visited our showroom in Chicago during the launch fair. We had hundreds or more than 1,000 people coming in and checking the product from the industry, it was a super successful launch, and we expecting to see good momentum for the product.

That being said, it's still early to say the full performance and timeline of the launch as the market really reacts to products first getting into dealer showrooms, then getting tested by the end customers and the architects, and then being specked to projects. We are very confident of the success of the full product line.

It seems to be a successful product.

Excellent. Then jumping back to Miika Ihamäki and the underlying cost base development: are we seeing any material inflation pressure there that would require further pricing actions going forward?

Secondly, how should we be thinking about the R&D investments related to the North American product launches, and were these costs already expensed throughout the P&L in Q2, or is there any further negative impact coming in the second half of the year?

Yeah. If we start with the material inflation, certainly it's a part of the life, and of course some components or materials are more energy driven, hence the Iran War might have a impact through there.

Still, at the bigger picture, we see that as a normal business in a way that in the industry typically the price increases are done once a year at the beginning of the year. We don't see at the moment any, let's say, extraordinary inflation that would require something else.

Then

on the question...

The R&D.

R&D. When it comes to the R&D, of course, most of the costs are our own R&D personnel, and those are expensed as they come, the impact is already visible in that sense.

As for the investments, of course, the overall investment level needed for the new product family as well as the new manufacturing site is rather low considering the volumes, and most of that has already come in, considering that, of course, we are taking orders and beginning shipments shortly.

Yes. Majority of the impact came in already in the Q2 numbers, and you can also already see that there's no further meaningful negative impact coming in the second half of the year, right?

Right. Then

coming back to the impact of the war in Iran: did the project delays already resolve during the quarter or is there any spillover effect to be expected in the second half of the year? Yeah.

As mentioned, we did see that situation normalize as it seemed that the Iran War would come to an end, and now that it has sort of reignited, we haven't seen any immediate effects, but if it prolongs and oil prices stay high, it's a risk that we see those delays coming back.

Very good. Then a question regarding the inventory development: the inventory levels have increased quite a bit from a year ago.

What kind of impact do we expect to see from the new US assembly plant coming online, and is there any impact on the working capital from that as well? Yeah.

The inventory levels do fluctuate from quarter to quarter, depending on in which markets we see demand and overall on the current forecast. As for the Qradus specifically of course, the US manufacturing means that there's less inventory we need to ship from Finland to US, and once it's up and running, we do expect a certain inventory and with that net working capital reduction, but that more in the next year.

Good. Then

final question through the webcast at the moment, unless you still have a burning question on your mind, you still have a couple of seconds time there: have we faced any resistance from customers on accepting the price increases, or do we think that they've had any impact on the demand whatsoever? Is the softer product mix in Q2 temporary, or should it be extrapolated for the future as well?

Maybe on the price increases, no, we didn't see any resistance or let's say that we've seen any project getting canceled or losing more, because we did our price increases well in line with what the market and the competition did as well. That's all good.

As for the product mix, there is some quarterly fluctuation rather than a trend that we are seeing. That certainly we can sometimes see the fluctuation again, but not that should be taken as the baseline.

Very good. We don't have any questions from the webcast at the moment, maybe over to you, Samu, any final words?

Thank you. Thanks for the great questions in the webcast.

We are confidently going towards the end of the year, and we'll see again next quarter and the results then. We're super excited about driving the growth strategy and the business forward.

Thank you for joining today.

Thank you. Have a good day.