Welcome to Hiab's third quarter 2026 results call. Our comparable operating profit grew strongly through executing our strategy.

My name is Aki Vesikallio, I'm from Investor Relations. Today's results will be presented by our CEO, Scott Phillips, and CFO, Mikko Puolakka.

As a reminder, please pay attention to the disclaimer in the presentation as we will be making forward-looking statements. Before handing over to Scott and Mikko, let's take a look at the highlights of the quarter.

Orders received continued to grow in EMEA, while acquisitions boosted orders received in the Americas. Comparable operating profit increased to €69 million, corresponding to 14.2% of sales, while comparable EBITDA margin was 15.5% in the quarter.

Cash flow was again strong at €98 million. We keep our outlook for 2026 unchanged.

Also, Environmental Vehicle Solutions acquisition was completed in the beginning of the quarter, hence it had significant impact on many of the key figures in the quarter. Let's then view today's agenda.

First, Scott will present the group-level topics. Mikko will go through reporting segments, financials in more detail, and then the outlook.

After Mikko, Scott will join the stage for key takeaways before the Q&A session. With that, over to you, Scott.

Thank you, Aki. Greetings from my side, everyone.

I would like to start today by highlighting some of our recent new product innovations, three of which we introduced within the quarter. Sorry about that, I surprised myself with that.

We continue to shape the essential industries with pioneering innovations, and the three that I wanted to highlight from the quarter are as follows: First, on the left-hand side of the slide, we introduce our next generation ProCare agreements. This is designed in order that we can help our fleet owners keep the equipment working by securing better uptime.

This will help secure lower total life cycle costs, and certainly help our customers to improve value from each and every asset. Then moving to the right, the second new product that I'd like to highlight are a combination of two new updates to our Moffett M8 series, primarily focused for the North American market, both of which were designed to increase our weight-to-payload by increasing capacity nearly 20% to 2.5 and 3 metric tons each.

In addition to the increased weight-to-payload ratio, we also come out with a proprietary technology which allows for single-side offloading, and this provides both enhanced safety, we have enhanced connectivity, and the new models will enable much faster delivery, improve productivity, and of course lead to lower total cost of ownership. Then third innovation I'd like to highlight, and really proud to say for the first time then with Environmental Vehicle Solutions within the Hiab portfolio, I'd like to highlight a new innovation that was introduced for our Leach brand series, which is a smaller 3-cubic-yard tailgate.

It delivers high-density packing of up to 600 kg per cubic meter, additionally allowing for a faster cycle time of 17 seconds. Now the combination of the lighter weight and shorter rear overhang will improve weight distribution and payload capacity on smaller chassis.

This will help some of our operators work much more efficiently while enabling a wider access reach for Leach within the market. Really excited about all three of these innovations.

Now turning your attention to the group financials, starting with orders as always, our orders received as well as our order book grew significantly within the quarter. Of course, this was largely supported by acquisitions in the Americas, and I'll take you through those details in the following two slides.

Starting on the left-hand side of the slide, you see where our order book has come from two years prior with a slight dip going into last year, and of course boosted this year, as mentioned, from our acquisitions within the Americas. Within the period, our orders received are €441 million against the comparison period of €351 million, that's 26% variance, which brings our year-to-date order intake at €1.28 billion versus €1.1 billion for the same period last year, that's 16% overall variance.

Now, of the €441 million, €87 million came from our Environmental Vehicle Solutions business as well as €14 million from ING, overall the two acquisitions contributed to €101 million of order intake, which had a 30 percentage point positive impact within the quarter. Currencies, however, did not have a significant impact on orders received.

However, our organic orders received decreased by 4% within the period. Year-to-date, however, is up 5%.

Now, one of the big drivers for the impact for order intake in the period was the fact that we versus the comparison period did not book sizable key account orders, and that's especially visible in the Americas as we booked no orders above €10 million within the quarter. Then, as mentioned previously, our order book has increased significantly with the inclusion of the Environmental Vehicle Solutions business.

Now turning your attention to the regional perspective on orders received, our orders received grew in EMEA as well as in Asia-Pacific. However, the negative organic development in the Americas was a reflection of the key account orders situation versus the comparison period, as I mentioned previously.

Then diving a bit more into the regional composition, you see that we came from 56% of orders in the prior year comparison period to 46% this year. Then going clockwise around the donut chart, we increase from 38%, of course, to 48% in the Americas, primarily driven by or all driven by the acquisitions, and then Asia-Pacific then decreased as a consequence by 1 percentage point from 7% to 6%.

Orders in the period were €201 million for EMEA versus the comparison period of €195 million for 3% positive variance. Year-to-date, the variance is up 7%, €627 million versus comparison period of €587 million.

In the Americas, order intake increased to €214 million versus €132 million in the prior year for 62% variance. Year-to-date, order intake in the Americas is €571 million versus €435 million in the same period last year, or 31% positive variance.

In APAC, we have a good, stable situation with a slight increase in orders within the period versus comparison period of €2 million, or up 8%. Year-to-date, however, we're slightly negative 3%, or €82 million versus €84 million year-to-date.

Now taking a look into the environment, we still see a steady, continued market recovery within EMEA against quite a mixed picture, of course. At the same time, through the quarter, we saw a good, gradual improvement sequentially in our refuse collection vehicle orders, so that bodes nicely for future prospects.

On the other hand, in terms of the negative side, of course, we still have this elevated uncertainty in terms of overall global growth outlook. We have, of course, the price situation as well as the interest rates that certainly are delaying decision-making and moving those decisions to the right, as well as encouraging the sweating of assets as well.

Quite a mixed picture in terms of the negative part of the environment, quite stable from Q2 to Q3 in terms of the positive picture here. Now turning your attention to sales, happy to report that sales grew organically by 5% within the quarter.

Then as you can see compared to the prior two years, we have a nice improvement compared to where we were last year at €346 million. In the period this year, we're at €481 million, or a positive variance of 39%.

That brings us year-to-date to a little bit under €1.3 billion versus last year a little bit less than €1.2 billion, or a 9% variance year-to-date. Organically, we've grown 5% within the period, down unfortunately 2% year-to-date versus 2025.

Our share of services in the period was 28% versus 34% last year. Now, this is primarily due to the fact that the percentage of sales in both the acquired businesses are smaller relative to the continuing Hiab business, quite in line with our expectations there.

Then, as I mentioned from the order intake period, we give the specific details in terms of our acquired businesses in the Americas. Sales from our Environmental Vehicle Solutions business was €103 million, sales from our ING cranes were €13 million, which overall, €116 million, had a 35 percentage point positive impact within the quarter.

Now looking at that on a regional level, much like our order intake, sales within the EMEA region decreased due to the structural changes that we made in the business, going from 51% to 39% in the period this year versus last year. The Americas, however, increase from 40% to 56%, and then that mix change, of course, impacted the percentage of sales in the APAC region from 8% to 5%.

Looking into the numbers, EMEA represented €187 million of sales versus €178 million in the comparison period, or a 5% change. Then year-to-date, much the same, €606 million versus €573 million.

In the Americas, however, we see the big shift, €268 million versus comparison period of €140 million, or a 92% change, and then year-to-date, €584 million versus €508 million, or 15% change. In APAC, we had a decrease slightly in the quarter of €3 million, €26 million versus €29 million, which, of course, is reflective of converting order book in prior period.

Year-to-date, we're €2 million below last year comparable period, or 2% percentage point change. Our Eco portfolio sales within the quarter represented €161 million of sales versus €140 million, or 15%.

Year-to-date, €518 million versus €473 million. Now, as a percentage in the period, it represented 33%, however, excluding our Environmental Vehicle Solutions in the period was 43% versus the prior year period of 40%, like-for-like business had a 3 percentage point improvement versus prior year period.

Then year-to-date, we're at 41% versus 38% in the Eco portfolio percentage of sales, nicely on track with our targets there. Now, from the top-line development, turning your attention to the earnings picture, we had a significant improvement in the comparable operating profit as well as our EBITDA.

Then turning your attention first to EBITDA, we in this year's period delivered €75 million, or 15.5 percentage points, versus €40 million, or 11.7%, in the comparison period, for a change of 85%. Then year-to-date, that brings our EBITDA to €189 million versus prior year of €168 million, for a 13% positive variance, 14.9% on a relative basis versus 14.5%.

In terms of our comparable operating profit, as Aki had mentioned earlier, we delivered €69 million, or 14.2% of sales, versus last year's period of €40 million and 11.4%, for a 73% change. Year-to-date, that's €181 million versus €166 million, for a 9% positive variance.

On a relative basis, the same, 14.3% versus 14.3% last year. Operative return on capital employed, our last 12 months, is at 20.2%.

Now, this decrease is mainly due to the higher operative fixed assets stemming from our acquisition that's now represented in our Environmental Vehicle Solutions business, so that's versus the comparison period of 29.8%. Now, certainly our acquisition of the Labrie business that's now Environmental Vehicle Solutions boosted our comparable EBITDA nicely to the 15.5%, and then drilling into or providing a bit of color in terms of the Environmental Vehicle Solutions business, our comparable EBITDA was in the high teens.

Now, giving a little bit more detail relative to our Environmental Vehicle Solutions, as we mentioned when we made the announcement, we believe that relative to our investment profile that we seek across the six dimensions, there's no doubt that the Environmental Vehicle Solutions represents perfect fit to our strategy and certainly supports both our top-line as well as bottom-line growth ambitions. Our integration process, I'm happy to report, is progressing nicely according to plan.

We have a couple of factors that are balancing our focus area for the integration. On the one hand, we want to make sure that we protect the ongoing business and add to the ability of this high-quality business to continue to deliver, make sure that we support and secure the focus of our distribution network, and ensure that the team is able to continue to execute on delivering the significant backlog.

At the same time, though, we of course have a keen focus on being able to deliver the synergies that have been called out, and I'll talk about that in just a few minutes. As I took you through earlier, the financial performance is enhancing our results, both in terms of the top-line orders received as well as sales, and of course with the strong comparable EBITDA, which was in the high teens, as I mentioned on the prior page, overall supports our profitable growth ambitions nicely.

Now, we think there's significant further upside potential in the business, and we'll take you through some more details about where we see ourselves in terms of the demand cycle. Certainly, we view this as an essential industry with long-term attractive market growth prospects.

As highlighted earlier, we expect the overall market to progress out for the next five years in the low single-digit CAGR, and certain parts of the business even slightly higher than that. At the same time, as we pointed out when we made the announcement, I think what we called out at that time was low double-digit levels of synergies that we were seeking, and so far through the first 100-ish days or so of the integration process, we're getting a bit more granular in terms of where we think the run rate will end up in 2029, at this point we're pretty comfortable from a combination of procurement cost synergies as well as sales synergies both in services and a bit in the equipment side to be represent an above €12 million run rate in 2029.

Now, as always, I'll wrap up on how are we doing relative to our long-term strategy target profile. We added a bit of a different twist here in terms of the arrows so that we do a better job then of indicating whether we're trending positive or negative.

Starting from left to right, in terms of our CAGR, we had a slight increase sequentially versus what we shared with you in Q2, our rolling 10-year average has increased 5%. From the comparable operating profit side, our last 12 months has increased slightly to 13.7%.

On the other hand, in terms of return on capital employed, our last 12 months return on capital employed has decreased to 20.2%, and we expect that trend to continue for a couple of periods to come. With that, I'll turn it over to Mikko Puolakka.

Thank you, Scott. Good morning, ladies and gentlemen, also from my side.

Before going into the segment numbers, just a reminder that EVS, i.e., formerly Labrie Group numbers, have been now included in our equipment and service segment financials from 1st of July onwards. Like on the Hiab Group level, the EVS acquisition is clearly visible in the segment financials.

As Scott already mentioned, despite the inorganic growth, it's good to note also that there has been a really nice, solid improvement both also in our equipment and services segments. Let me start with the equipment segment financial performance.

The equipment segment had a strong improvement across all line items during quarter three. Order intake was boosted by the EVS acquisition, as well as growth in the lifting equipment.

Delivery equipment orders declined slightly, as Scott mentioned, there were fewer key account orders in the US versus the comparison period. The order book increased by €310 million, this is thanks to the EVS acquisition, the organic order book was on last year's level.

Sales was €347 million, and here both lifting and delivery equipment sales grew, and then on top of that came the EVS and ING inorganic equipment sales growth. The quarter three saw a strong improvement in profitability.

Comparable operating profit margin improved from 8.8% to 12.6% for equipment. The underlying organic profitability improvement was boosted by the sales growth, but also combined then with lower fixed costs coming from the €20 million overall cost savings program what we initiated some quarters ago.

The EVS equipment contributed also to equipment segment profitability improvement. If we look the profitability trends in equipment segment, the last five quarters have demonstrated a very solid improvement in profitability, improving from now from last year's 8.8% to this quarter's 12.6%.

As the bridge illustrates, the sales growth of 50%, or in euros, €117 million, that was the biggest contributor for the profitability improvement. This growth was both organic and inorganic, as mentioned earlier.

We did not have any notable head- or tailwinds from tariffs or price increases during quarter quarter three, the gross profit margin was fairly stable during the quarter. The other contributor to the profitability improvement was also the fact that our fixed costs increased roughly 25% while sales grew 50%.

This fixed cost increase is solely coming from the EVS acquisition, while the organic kind of legacy Hiab costs have been coming down thanks to the cost savings program. Let me then have a look on the services profitability.

Services organic performance improved, and it was also complemented by the EVS acquisition. Service orders were €130 million, sales €134 million, these were up by 16% and 15% respectively.

Services grew nicely organically, and this growth was complemented by the EVS services. Like we have seen in the previous quarters, we continue to see really nice growth in the services recurring type of services, like spare parts and maintenance-related services.

The installation services revenues were flat year-on-year. The number of connected equipment and maintenance contracts continued to increase, and this is in line with our strategy to reach 90,000 connected equipment and 50,000 maintenance contracts by 2028.

The services profitability improved by €6 million to €33 million during the quarter, and this represents a margin of 24.6%. Services profitability improvement was driven by organic and inorganic sales growth.

Services has delivered a steady profitability margin over the past years, as you can see also on the picture on the left-hand side. The 15% sales increase is the main driver for the €6 million, or 110 basis points improvement in profitability.

The organic gross profit margin improved thanks to higher sales, and then it was also complemented by EVS services, nice, very nice development in services. Let me highlight a couple of financials then on total Hiab level.

As Scott already referred, our sales was €481 million, this was growing 39%, the organic growth with constant currencies was 5%. The comparable EBITDA margin increased by 380 basis points to 15.5%.

Comparable operating profit was €69 million, i.e., 14.2% of sales. The EBITDA and comparable operating profit improvement is driven by sales increase, and as mentioned earlier, also successfully executing the cost reductions actions, thanks to the actions what we have put in place in the previous quarters.

We are proceeding well towards the €20 million full year 2026 cost savings, the year-to-date September kind of organic Hiab costs were €12 million lower than in 2025. Our quarter three comparable operating profit of €69 million includes also now €5 million purchase price amortization, allocation amortization, and this is related to the EVS customer relationships, technologies, and brands.

Our items affecting comparability were €15 million during quarter three, and basically €6 million of this is related to the EVS order book amortization, and this amortization will take place during the next two years and then it's completed, and the rest of the items affecting comparability, €9 million, was related to the cost savings program as well as the EVS integration. Our year-to-date items affecting comparability was €37 million, and our full year estimate is €60 million.

Our year-to-date September tax rate was exceptionally high at 30%. We have treated some of the EVS acquisition-related costs as non-tax-deductible, and resulting then to this higher tax rate.

I would say that our normalized tax rate would be on the level of 24-25%, as we have communicated earlier. We had a really strong cash flow in quarter three, representing a 180% cash conversion.

Reduction in inventories and accounts receivables were the main contributors to the high cash generation, and I would like to also highlight here that EVS also contributed to the above 100% cash conversion during the quarter. Let's then have a look on some of our balance sheet metrics.

Our gearing increased to 67% at the end of September, and this is solely driven by the €900 million debt what we raised in the beginning of the quarter for the EVS acquisition. Our cash balance was €324 million at the end of September.

This 67% gearing is in line with our projections made before the EVS acquisition, and actually this is slightly better than originally projected thanks to the solid cash flow in quarter three. Also going forward with the solid organic as well as inorganic cash flow profile, we should see a gradual reduction in gearing in the coming coming quarters.

We repaid the last bond of €150 million during September, and basically now the rest of the outstanding debt is related to the EVS acquisition, as well as the normal IFRS 16 lease liabilities. We have kept our full year outlook unchanged, and expect to deliver a 14.5%, over 14.5% comparable operating profit margin for the full year.

This outlook is based on the following assumptions: Firstly, our year-to-date September comparable operating profit margin was 14.3%. Secondly, certain orders what we have booked during the first half of this year will be delivered in quarter four.

Then, as mentioned already earlier, we have progressed well on the €20 million cost savings program. With that, then I would like to hand over back to Scott.

Thank you, Mikko. Wrapping up, I'd like to leave you with four key takeaways.

I'd say, firstly, we're excited about the fact that Q3 was our first quarter in three years with organic sales growth of 5%, as Mikko pointed out earlier. Number two, I think we're well on track to deliver our strategy, and the execution is going quite nicely despite the market uncertainty and turbulence that we've experienced.

We estimate that by the end of the year, we'll reach our highest profitability in Hiab's history, we're quite pleased about that. As I mentioned earlier, the integration with Environmental Vehicle Solutions business is progressing quite nicely and according to plan, and to reiterate that we expect to achieve a run rate of synergies above €12 million on the operating profit level basis.

With that, I'd like to invite Aki back on stage.

Thank you, Scott. Let's also get—

Or Mikko.

Mikko back to the stage so that we can get ready for the questions. Operator, please, we are ready.

Thanks for taking my questions. I have three.

Firstly, starting from the EBIT contribution of Labrie, you said that on EBITDA level it was high teens. Has it declined from what it was a year ago, and is the PPA higher I remember we discussed in July that it would be consolidated at around 17% margin?

Do you want to take that?

I would say that the EVS profitability in quarter four—quarter three was a bit lower than in the past quarters, but this is actually due to some conscious decisions what we made during the quarter. We took over with EVS acquisition roughly €87 million of inventories, and we wanted to conduct a full stocktake in all EVS manufacturing locations.

Due to this, there has been some production stoppages during the quarter, and this has impacted our volumes during the quarter as well as the profitability. Overall, we see no reason why the EVS profitability would be very different what we have been communicating earlier.

During the quarter, as mentioned, we have basically booked €5 million PPA amortization above the comparable operating profit, and then €6 million below the comparable operating profit in items affecting comparability, and this €6 million is related to the order book amortization, which takes place during two years' time.

To add, the PPA amortization was in line what we disclosed in the second-quarter interim report.

Yeah.

Yes, thanks. My second question was on guidance, which implies that the margin in Q4 will be higher, and you kind of already partly answered to that.

I was going to ask whether there is seasonality in Labrie, but you indicated that the Q3 was a bit softer due to temporary reasons. Can you give any more color on the Q4 expectations, why it should be clearly better?

I can start with that, Panu. Q4, as Mikko highlighted earlier, we booked some nice orders earlier in the year that we anticipate to convert within Q4, and due to that conversion, we expect a nice sequential development on the top line that should, with our operating leverage, translate nicely from an operating profitability perspective.

Of course, I think you asked a question related to the seasonality in Labrie. I'd say that, yes, there's some seasonality on the order side.

I don't think that necessarily translates, however, into the way that the order book as a consequence is executed, the execution is largely stable. It's more of a consequence of the mix of the units and then the lead times that result as consequence, which are quite variable.

Then overall, you see then the normal Hiab seasonality, where, of course, as we've highlighted in all of our prior discussions, we tend to have a 10% to 15% seasonality in Q3, and that's due to the number of working days that hits us both in equipment as well as services. Then, of course, we recover some of that in Q4 in terms of working days, and then we have this additional benefit of the backlog.

Thanks. Is it possible to quantify the maybe negative impacts on Labrie in Q3 that you described?

We have not disclosed that, but I would say that we are talking still a fairly, let's say, visible impact. We are talking about some weeks of production stops, and that impacts, of course, top line.

We have not quantified the exact amount.

I would just reiterate, as Mikko said earlier, Panu, if you think about on a normal delivery basis, then the EBITDA percentage should be well in line with what we communicated previously.

Thanks. My final question is on the Americas orders.

It seems that they were down like 15% organically without the acquisition. I understand there is timing of the large orders, but what are you seeing in the market overall?

Is the recovery postponed? Are there new headwinds due to interest rates, or what should we expect going forward?

We still see a market that's impacted largely by the same factors that we've discussed before. Of course, you still have the uncertainty around where cost levels will settle out, so that still has an impact.

I know there's a lot of visibility in terms of the truck OEM production levels and of course the mix of the changes in production level as well as sales levels have not necessarily translated into increased volume uptake on our side. Combination of a couple of factors: one is the timing-wise, and so there's certainly the lag.

Two, if you look at the mix, then if the increase in production have very little causality, if you will, in terms of volume impact on our side, in that regard, that's stayed quite stable. I'd say then, three, it's largely a combination of the higher interest rates, the impact that that's had on housing as well as refinancing-driven renovations and remodeling, that has created a bit of softness.

You do see, however, some pick-up on the rental side of the business and utilization rates, but that's probably largely driven by the proactive management that they're doing in terms of the fleet volumes, so that hasn't necessarily translated into faster decision-making or an uptake in our volume levels as well. Then most importantly would be the fact that versus the comparison period, we didn't realize any larger key account orders within the quarter period, and so those are often hard to call in terms of timing.

Thank you. That's all from me.

Thank you. Good morning, gentlemen.

Good morning.

A couple of questions. To start off with, continuing on Panu's question there, I'm just wondering how you think about the outlook there overall.

We have seen truck orders improve. We are hearing truck OEMs increasing production, I would assume that that should start to show in your orders as well at some point in time.

How do you think about that relationship? Also, how do you think about the overall fleet that you see out there in terms of the age of the fleet?

Do you see increasing replacement needs, or how would you think about the dynamics here?

Yeah. As we'll have to stick with our storyline that we have in the past in terms of truck chassis development.

Of course, I think the first contextual attribute that's important to note is, of course, compared to '24, the volume levels are still a bit muted in most of the classifications of the truck chassis, with the exception overall of the Class 8 chassis. Then within Class 8, you have the many types of applications, if you will, and so the applications that have been most positively impacted are those that are more on the tractor-type chassis and different applications as compared to the use cases for our type of product.

Having said that, though, then there also is this time lag between the impact of the volume on the truck side versus when we might see that materialize in our demand. Then, my apologies, you asked a second part of that question.

Mikael, can you repeat then the rest of that question?

Sure. Sure.

No, I was just asking about how do you view the fleet age if you think about your kind of target

there. If I think about that both from the continuing or the legacy Hiab business as well as the Environmental Vehicle Solutions business, the fleet age is, of course, at a point where we have a high level of confidence that the replacement cycle will have to pick up in both parts of the business, so that bodes well long term.

I think more mid-term and long-term, no question about that, it's a matter of timing when we start to see a better pick-up from the fleet replacement. The economics are still quite attractive for our customers to do that.

Okay. All right, okay.

Then just continuing on the EVS and the refuse market overall, you saw a pick-up in orders there. How do you think about the outlook there, into the end of the year, into 2027?

Is there anything in terms of the market dynamics there that you would like to flag?

I'd say a couple of key factors to note here, and I'll try to be careful as I'm still relatively new here, but a couple of key factors that I can share and highlight. One, as pointed out earlier, sequentially through the quarter, there was a bit of pick-up, and there's been a consistent, nice level of, let's say, inquiries, similar story that we've been talking about from time to time in the legacy Hiab business, so that bodes well always.

Then secondly, then talking about the market dynamics and what we've seen here in the past year, maybe a little over a year, you've got three key factors that have influenced the market dynamics, two of which created a bit of unusual inventory situation. On the one hand, you had the supply chain bottlenecks and then the subsequent lengthening of lead times from all refuse collection vehicle OEMs as well as the truck OEM suppliers, and then that created a bit of bottleneck in terms of order backlog.

That order backlog now has been delivered nicely not only by Environmental Vehicle Solutions, but then other competitors within the industry, which then causes a catch-up on the inventory side. Then the second factor that's at play here is there's an impending regulatory change in terms of emissions, there was an anticipation of pre-buy effect relative to the emissions change that was pending the beginning of 2027, some of which materialized, some of which hasn't materialized.

The net effect of the two factors are a bit of inventory build-up that needs to be worked through the system. Then thinking more longer term, mid to longer term, there we still stand by the fact that within this industry, the structural characteristics are quite attractive.

Waste per household is still expected to continue to rise. The trend towards multistream and more recycling versus general waste, we expect to continue to develop over the next five years.

The mid to low single-digit CAGR still seems to be quite relevant. It's consistent with what the competitors are saying as well, all of which are soon to report, as I understand it, in the US market, it'd be interesting for you to be able to get additional data points there as well.

Overall, we expect in the mid to long term a nice, consistent growth picture, especially given the fact that in the future, as the market gets a bit more certain or we get more stability around the cost and interest rate picture, and then a combination of working through the inventory levels that have been built up from these two, let's say, ordering bubbles, if you will. Relative to the current cycle, you could say '24 was a bit of a peak year, but we see this as just a short-term development once inventory levels get to a more normal level.

Just a follow-up on that, that's very good color, thanks for that. Just a follow-up on the inventory commentary, do you have any visibility now on where we are and the inventory's being cleared?

I'm just listening to some of the peers actually saying that the overcapacity has already been absorbed. You're still seeing some inventories that needs to be taken down, or how do you view the market?

We just see that there's still inventory that's being worked through on the distributor side, and we can only assume that the same is true for our industry peer group as well.

That's clear. Thank you.

Then just finally a couple of housekeeping questions to Mikko. I just wanted to ask on the amortization.

How should we think about that on a kind of quarterly or yearly basis going into 2027, the levels that we should assume for that? Also, if you could repeat what you said on the cost savings.

I didn't quite hear that, sorry about that, and what kind of incremental effect you expect from that in Q4 and also into 2027, thanks.

Yes, thanks for the questions. If we start from the amortization, like said, during quarter three, we had €5 million above the comparable operating profit, and this is related to the longer-term amortization.

We are talking here about 10, 15 15 years, and this €5 million per quarter is related to trademarks, brands, technologies. Then in items affecting comparability, we reported €6 million per quarter during quarter three, and this is related to the order book amortization, and here the amortization period is two years.

Mid-2028, it would be then fully fully amortized. These are the preliminary purchase price allocation calculations.

According to the accounting rules, we have 12 months time to complete it. I don't anticipate that it will dramatically change from these numbers what we have now reported here in here in quarter quarter three.

Maybe to add to that, of course we have also some PPA related to ING acquisition and other former acquisitions, in total, it was 12 12.6 million within the quarter, as reported. Then

what comes to the cost savings, year-to-date September, our kind of organic costs excluding ING and EVS were €12 million lower than in 2025, and we anticipate that the full year organic fixed costs will be €20 million lower.

Okay. All right, thanks.

Just on so there's but is there kind of a year-over-year effect spill from that coming into Is that a €20 million run rate, or is it kind of fully in the books kind of in 2026, the €20 million? How should we think about that into 2027?

As

some of these actions were not implemented from 1st of January 2026 onwards, we anticipate that the impact for 2027 will be somewhat higher than this 20 €20 million.

Right, exactly. Good.

Hi guys, thanks for taking my questions. Unfortunately, missed part of your presentation, bear with me if I ask you to repeat some of the stuff.

Coming back to the Environmental Vehicle Solutions orders on the third quarter, I wanted to understand better, Scott, you mentioned that it probably has a similar type of order seasonality than your business, but then again, I guess you flagged out a sequential increase in the order intake. Perhaps a bit color on that.

Is this kind of an 80, €90 million order level something that we should now think about as a run rate where you then grow whatever the market helps in the next coming years?

Thanks for the question, Antti. The seasonality piece is probably in the EVS business much more related to the composition of the customers, which are largely municipalities, around budgeting.

We're still learning how that will look going forward. Having said that, then on the sales execution side, you shouldn't see really as much of an impact on seasonality as you do in the legacy Hiab business because of the difference in perhaps the days that we lose in Q3 compared to Northern Europe, if you will.

Then you asked about the level of orders on a go-forward basis. That's something where what I can say is, as stated earlier, we expect over the mid to longer term, thinking about from '26 to '30, that low single digits overall.

Then, as shared previously, we think that the automated side loader piece is an opportunity to grow slightly faster than that. Therefore, we'll stick to that type of guidance relative to expectations moving forward.

All right. Then maybe a question on the country split in Labrie or EVS segment.

Could you open up a lot the share of sales coming from US versus Canada? Then maybe a follow-up on then if you look at Labrie's distributor network in the US, how do you feel about that and what kind of actions would you imagine to kind of do to maybe expand that or replace some of the distributors that might have been lost in the past years?

You want to take the mix?

The country mix, I don't have now that in my head, and actually I don't think we have provided

that.

Of course, the main markets are Canada and US, and that has been in the past the stronghold of EVS.

I would say that as you would assume, the majority of the sales are in the US, but still a nice balance between both Canada and the US. The market share positions are higher in Canada versus the US, also as you might anticipate.

Then

on the distributor network?

Yes. On the distributor network, I guess some of the numbers are we have roughly 33 distributors at this point in time.

As needed, it would be wonderful to add more as the need materializes. At this time, we don't anticipate any change in mix of distributors, and similarly, we really are focused on doubling down on the existing distributors' ability to maximize the potential within the Labrie or the Environmental Vehicle brand portfolio.

At this time, no plans to start cross-selling the brand portfolio within Environmental Vehicle Solutions with the existing Hiab dealers, if that's part of the question. That's something that we'll evaluate over time.

Probably the more near-term opportunity would be examining would it make sense to do so in the inverse, where perhaps it would make sense, as already happens on a limited basis, to have the Galfab brand, let's say, more accelerate the scale of sales of Galfab brand through the existing Environmental Vehicle Solutions distribution channel. Then, of course, the big opportunity for us as well is to grow the services business from the existing low double-digit level to up to double that level, getting that business more in line both with industry peer as well as the legacy Hiab business.

Okay. Then the last question for Labrie is that you mentioned that there was a bit of a peak years in demand, and very helpfully provided some reasons why it's so.

I've also understood that in certain kind of key provinces in Canada, there has been some regulatory changes on the refuse collection side which has created a bit of a kind of a tailwind for orders and sales in, let's say, '24, '25, especially on the Ontario segment. Has this been kind of a supporting the business in Canada in the past few years?

Oof. We'll have to come back to you on that.

That, I can't say that it's had a material impact. I think I'm pretty safe to say not a material impact, but there could be slight tailwinds in that regard.

The biggest, definitely the biggest driver or contributor has been this COVID-driven supply chain bottlenecks, which have been then kind of the ketchup bottle has then opened after the supply chains have been normalized, so...

That and combined with the 2027 emissions changes, which I think is more south of the border in the US.

Yes.

All right, thank you very much.

Yep.

Thank you for questions and thank you for answers and the presentations. We will come back with our fourth quarter results on 12th of February 2027.

We published our financial calendar yesterday evening, you can find out our publication dates for the upcoming year now. Thank you so much, and have a good day.

Thank you. Thank you.