Good morning, everyone. Welcome to Lagercrantz year-end report call.

We, as have our ending of our financial year end of March every year. We have just concluded our numbers and released them here this morning.

Welcome, everyone. Together with me here, we I have Karin with us as well, our our CFO, and we will try to do this together.

We usually end up having a 45-minute call or so, and we'll open up for questions at the end if you don't have any along the way. With that, I think we can get started.

Yes, a short I will start with a short introduction, and then we'll get get get right into the numbers, and then we'll look a little bit on where we are with the group and how we build the group for the future, and some some future priorities as we go move forward. Then we'll open up for questions.

Let's start with a little bit of an overview. I think you this slide and this perspective you've seen many times.

It's our an overview of the group where we have our five divisions, and and how we rephrase ourselves. We are a tech group with leading position in expanding niches.

We have currently some 85 companies, growing with some 10 to 12 new companies every year. We have, during the fiscal years, sort of passed 10 billion in in terms of of sales or are now approaching 11 here with 10.6 or so and moving 12 months, I think we have.

We are currently some 3,600 employees within the group. You can see over to the right where we have our needles, where we are located.

It's it's a lot in the Nordics and Northern Europe, but we also have footholds in the rest part of the world, as you can see all the way to the right there with with both in North America and but also in in in in Asia. We are a Nordic-based group, but but moving and and expanding in other markets.

We have definitely put our our our feet on the ground in the UK in the last few years, but are also now looking more into countries like the Netherlands and and Germany and other sort of mid Mid-Europe markets. Or yeah, still Northern, but still yeah.

Acquisitions is a central part of our business model. As I said, we require close some closing some 8 to 12 deals per year.

We have been on the Stockholm Stock Exchange since 2001, and before that, we were part of the Bergman & Beving Group and was listed already in 1976. We've been on the stock exchange now for 50 years as and under our own name in in during 25 years.

That's a bit of an overview. We posted another very strong and solid quarter.

We have the next one. There we are.

With with really some some good developments in in during the quarter. Even though we have we've seen quite a a volatile market and and a lot of uncertainty going on in the world with geopolitical situations and and and what what is happening in in different parts of the world.

That is, of course, in the in the long run affecting us as well. We have seen very limited effects during this quarter.

Hopefully, we we don't see any big things going forward either. We see some volatility in the markets when we talk about raw material prices and things like that.

We posted a very solid quarter and and continued our trajectory towards the 2 billion in terms of of profits as you can see over over to the right there. Another strong, solid quarter.

We commented in our report on the business conditions. We move to the next one.

We we see some volatility and some uncertainty in in different markets, but all in all, we still feel that we have a very diversified and strong portfolio of companies working in our niches. On an overall level, we feel felt that the market situation was continued to be stable also in the fourth quarter.

We we see a a strong development and strong growth in electrification, infrastructure, security, and defense-related businesses, while we see a a a a slower demand still in the construction sector. We everyone has been expecting a a a an uptick on a an improvement in that sector, and we've seen a little bit of that, but very, very limited so far.

We think that the construction sector remains weak, even though we see see some some improvements in some areas. The order intake, all in all, was then slightly higher than than the invoiced sales during the quarter and increased organically by some 5%.

Adjusted for exchange rate fluctuations which negatively affected the order intake by by 3%. You can see down here that we have continued our development over the years.

We see that we are becoming In the right one, you see that we are becoming more and more international. The Swedish part is is growing, but still, as a percentage of the total is is going down a little bit.

We see that other markets are picking up, especially the UK. Then you can see that is now the third biggest market in within Lagercrantz with with with 9%, similar to the Norwegian market, which is also 9%.

We also saw during the our key strategic focus has also been that we should increase the proprietary product share share of our sales, and now that reached 80%. I'll come back to that strategic aim of ours later on.

Stable market and good market conditions along the way. That's what we've seen.

Here, Karin, maybe you can comment on the actual numbers here.

Yes, absolutely. As you already mentioned, Jörgen, we are delivering another very strong quarter.

The revenues increased by 13%, and acquisitions was contributing with 12%, while the currency had a negative impact of 4. While yeah, and on the other hand, our organic growth improved and reached 6% in the quarter.

EBITA increased by 20% and improved steadily over the course of the year, quarter by quarter, and the EBITA margin expanded to 19% compared with 17.8% last year. Cash flow from operations was 20% higher than last year and ended up at 410 million Swedish kronor compared to 342 last year.

The profit after financial items and profit after tax both increased with 19% to 438 and 368 million Swedish kronor. When we conclude for the full year, we can see that we completed another very successful performance with the net revenue increasing by 13%, and we are now ending the full year with 10.6 billion Swedish kronor.

Acquisitions contributed with 13%, and currency had a negative impact of 3. The organic growth amounted to 3% for the full year.

EBITA improved with 17%, and the EBITA margin is still on a very high and a good level at 18.1% compared to 17.5% last year. Cash flow from operations remained strong for the full year, increasing by 14% compared with prior year and ending up over 1.5 billion.

Profits after financial items increased with 17% to 1.5 billion, and profits after tax increased with 18% to 1.2. Earnings per share share increased by 18% and ended up with 5.81 Swedish kronor per share, while the return on equity amounted to 29% and equity ratio at 35%.

Profit over working capital improved by 2 percentage units and ended up at 81%. For the full financial year, we completed eight acquisitions that corresponds to roughly 11% of the net sales for the group for the previous years.

Also during—and we will come back to that one—and during April this year, we completed four more acquisitions with a total approximate revenue of 300 million. Then also the board proposes an increase of the dividend with 14% to 2.50 Swedish kronor per share compared to 2.20 last year.

Then on a very, very high level just—and we will come back to this one, Jörgen will in short by division—in the fourth quarter, four out of five divisions reported solid growth and with a particularly strong performance in the International division, both organically and through acquisitions. Then from an operating profit perspective, three divisions—Electrify, Control, and International—delivered strong EBITA growth as well as margin improvements.

We would also like to highlight Niche Products, that this still remains on a very high level on 22.5 percentage. Then before I hand over to you, Jörgen, I think that we should highlight Electrify division that really increased their EBITA with over oh close to 40% in the quarter compared to to last year and has actually, the last three quarters, they have had an EBITA margin over 21%.

Yes, and as you can see here, all in all, we have five very strong divisions with really good margins and and good performance over the years. We are very happy with four divisions.

Tech-Tech is lagging behind a little bit, but improving a lot here in the quarter as well. We're we're very happy with where we are with our five divisions at the moment.

Just to have a few comments by by division then. Electrify posted some 8% revenue growth and and organically it was 9%.

Real really strong organic growth in Electrify division, driven by the the increased demand that we see within the electrification area, but also within the within the infrastructure, which is also a important part of of the division. The EBITA increased by 38%, really strong, and the EBITA margin was now at 21.8%.

They have established themselves above 20% now for some three consecutive quarters or so in within this division. Really strong quarter with with good growth and improved margins and and and we saw that especially within the companies like Elkapsling posted a really good year, Mastsystem, which we acquired a little bit more than a year ago, also posted a really strong quarter, and also Nordic Nordic Road Safety or NRS, El-Fak, and Elpress.

Big good companies, all of them, and performing really well at the moment. That that was a couple of comments on the Electrify.

We move on to the Control division, where revenues were up 9% and of of which acquisitions stood for 10%, organically 3%, and then they had some headwinds from the from the currency developments of minus 4, all in all 9%. EBITA grew by 15% to 68 million, and EBITA margin was at 18.9%, up a percentage point from last year.

Here here we see some some strong developments with within the companies that are related with the defend defense sector, and especially then CP Cases, but also Leteng in Norway had a really strong performance during the year and also in the quarter. Stegmarks and Radonova also showed showed good improvements in earnings during the period.

A really really strong quarter there as well. We also have some smaller business units in especially in Norway and Denmark that are still struggling, which we have commented on earlier, and they're still struggling with the construction sector not really coming back as we had expected.

We are are taking even more measures in these companies as we move along now. Within the Tech-Tech divisions, revenues were up 21% and and 16% came from acquisitions, and organically up 10%, which is a really good number for Tech-Tech.

FX was against a little bit, minus 5 from FX. EBITA amounted to 96 million as opposed to 83 last year, a good growth there as well.

EBITA margin was up was at 14.4%, a little bit down from 15.1% last year. The division's largest company, PCP in Denmark and and yeah, Northern Europe, and the more construction-related businesses, Lauridsen, Door and Joinery, Principal Doorsets, and CW Lundberg, continue to be affected by the challenging market, that is the construction-related market.

The company I-Holland that we acquired, that is a new new area for us within medtech business that we acquired in November, had a good had a good start in the division. That also was was also a strong factor within Tech-Tech, the development within the Tech-Tech division.

Within Niche Products, the the the revenues grow by 1% and and and also and 10% actually was positive coming from acquisitions, but organically it was down 4% and FX was minus 5. The EBITA was up only 3% to 146 million, and EBITA margin still at a very good level of 22.5%.

Strong EBITA margin development, but some headwinds when it comes to the market development, and especially that is related to what we have seen within with currencies, with with raw material prices, and also with with with exposure that some of these businesses have toward the US, where we've seen the trade tariffs and stuff now coming into play a little bit along the way. Asept, Tormec, and Westmatic had had a a a had a a a weak development connected to what's happening in in the world and the geopolitical uncertainty going on.

The recently acquired Swedish company, Siktdirekt, and Ingenjörsfirman H. Dran, had a good start in the group or within the division as well.

Last but not least is the International division, then had a good development with revenues growing 31%, where 25% came through acquisitions and 12% organically, and FX was minus 6% within this division. EBITA was up 45%, really strong development, and EBITA margin on 19.4%, a really strong development within the International divisions.

We felt that the market here was overall on a stable level despite the negative currency effects. A strong quarter with good growth and improved margins.

Especially the marine businesses within Libra in Norway and also the DPCs in the UK continue to show strong performance. Here we also commented on that we we felt that that the seasonality that we have seen within the acquisitions we made starting from 1st of July last year with Epoke and Frigro-Akers with with a road and and winter winter treatment yeah, with salt spreaders and and and things like that, they have a low season here now in the in in the coming quarters.

That that and we didn't have we didn't have that last year, so that would probably affect the numbers going forward a little bit. That is the comment that we have down here below.

We have a usually a weaker spring and an early summer period that we didn't have an impact of last year that we will have this year. That will probably affect the the quarter going forward here.

A bit of a heads-up there. With that said, I think we've gone over most of the numbers.

Once a year, we also release the numbers in terms of return on working capital or profit over working capital per division. It's good to see and we release these numbers not on a quarterly basis, but on an annual basis, and you can see how that development have been over the years here.

Good development in most divisions, and and a very at a very good level, so that we having the whole group now above 80%, which is really good to see, and we see also that that the divisions are are performing very well, all in all, here. That is that is a very satisfactory to to have it like that.

We move on. We also have once a year, we also disclose net sales per segment.

This doesn't make sense to have every quarter, we think, to add all these numbers up, but we do it once once a year. Here you can see the developments over the years, not not not a huge changes, really.

We see that we have a very broad portfolio of companies in in in a wide set of sectors, which which then make make the whole portfolio very diversified. A couple of of things then is still that we see that the power and electricity distribution and the infrastructure is growing as a as a percentage due to organic growth, but also some acquisitions there.

The the Mastsystem acquisitions came in, and also the Tyco Flex acquisition came in within infrastructure, and that is adding to that that that exposure, which we think is very positive for us. You can also see that we are now highlighting the MedTech medtech business that is currently some 3%.

We acquired we had some smaller businesses within that sector before, but we now have a a bigger one, which is the I-Holland we acquired here in November. That has been only part of the last year, but the MedTech will probably be bigger as we go move forward here as we are moving into that sector somewhat.

Some some developments here as well. You can also see all in all the the building and construction exposure, and you can see that especially the part that is the residential one is is still at is is where we where we see some some headwinds in the market, and that that you can see is is very small here all in all for for us and and is actually declining as well as part of the group.

I think we have a good balanced and and a very diversified portfolio of companies within the group. Moving forward, I think a couple of highlights here.

I think we are building our group with delivering on the 15% target every year over over a business cycle, where we feel that one-third of that should come organically and two-thirds from from M&A, and that corresponds currently to some to to some 8 to 12 acquisitions per year. Since 1st of April last year, we've actually made 12 acquisitions here.

We posted eight during the the fiscal year, and then we posted another four here in the in the in April. We are at the 12 acquisitions per year, adding some 10-12% of the group along the way, and then rest should come organically.

It's very satisfying to see that organic growth has picked up here in the last quarter. We have been struggling with 1, 2, 3 percentage points for a couple of years, and that was very satisfying to see the 6% here the last quarter.

The return on equity then should be at 25%, and we are currently at some 29% or so as we will see. We are should do this in a very profitable way.

We continue with with a very established and and and and well well-functioning business idea around what we're be doing. I think we are have shown that so many times now that the model is very, very strong and and it works.

A couple of other highlights. What we've been occupied in the last couple of years is then to scale Lagercrantz.

I think to to be able to deliver the 15 or at least 15% EBIT growth annually. I think it is about building the organization and culture.

It's about finding and delivering on the M&A opportunities, and and then to have the financing and get the flywheel to working, to get the cash flows out of the business in order to acquire more more and more businesses. That has been working very well for us.

We have been thinking quite a lot about this and how to develop that, and therefore, we also did the the reorganization some 5 years that I think is now part of why we're it's it's doing a a payback because we have now established our five divisions in these sectors and and they're up and running now in a very good way, all five of them. That is adding to our our our growth and profitability over the years.

We work in a very decentralized way, so it's good to see that this is functioning now on a divisional and company level. You can see that the divisions are somewhat similar.

Control is slightly smaller than the others, but but picking up along the way as well. Growing and and having the healthy margins there as well.

Building a positions in sustainable segments with underlying structural growth is what we're aiming for, and that we have proven here in the last couple of years that we are able to do as well with some really good M&A good M&A pace over some time now. That also made us, during the year, then update our financial targets.

The 15%, we reiterated, and that we should reach the 2 billion within 5 years, we also reiterated. We then set the EBITA target of 20% in 2 to 3 years.

It's very satisfying to see that we now had it at 19% for a quarter. We will see whether we'll be at that level going forward every quarter, but but because we have some seasonalities and stuff in in there.

I think we are really pushing to get to the 20% within 2 to 3 years. We communicated this this during the fiscal year, so that was in was it November or somewhere we've been or yeah, with no, it was in the Q3 report we communicated this, it's was in February, right?

We also then moved our profit over working capital from previously 45% up to 60%, and that is the target for existing and acquired businesses or when we're acquiring businesses, and we reiterated the return on equity target of 25%. We are sort of stretching ourselves a little bit here by also then adding the buying and building niche businesses as a tagline, a little bit on what we are trying to do.

We are trying to buy really good companies and making them great. The buying and building is is a key thing that we're really working with in our companies at even even even to a larger extent than before.

One strategic aim is then also to have the proprietary products up to 85%, and it's good to see that we communicated that that goal when we had surpassed the 75. You can see that it's been going up since then, a percentage points or two every year, and we are currently at 80%.

We will we'll hope that will we'll get to 85 maybe in 2 to 3 years' time or so. It's we're basic on that trajectory as well.

Acquisitions then, let's talk about a little bit about the acquisition as we are posting closing the year. We we have now concluded some 12 acquisitions since April, 1st of April 2025, that add 1.4 billion then in in sales.

You can see that that's well above the the the the yeah, 10% that we're aiming for. It's is more like 14-15% of of of the group, it's it's it's a really good level.

We have made some and this is part of our DNA. This is where we would like to be, finding these nice, niche-oriented companies and building a group around that.

We can look a little bit about the more recent acquisitions, we move to the next one, which is I-Holland, I think we worth highlighting. We have, as when we're looking at different acquisitions, we have we've come across one or two bigger ones along the way, and this was one of them.

This is slightly bigger than the average of the group, it's £27 million in in in sales and an EBITA of 4 million, an EBITA level of 14-15%, as you can see down there. We are aiming then to to improve this a little bit by both working on on on sort of revenue side, but but also then working on on on the on the cost and and and yeah, making sure that we are we're charging the right thing for our products.

This will this will be a a major and and important add-on to the Tech-Tech division, and it will also be a good, new line of businesses that we will put in there also from a group perspective with adding the MedTech sort of area into the Tech-Tech. We are, yeah, that was one.

You can see what the During the quarter, we also then acquired Michael Smith Switchgear, which is another UK company, and is working operating in a niche with with around electrification, with different types of sustainable switchgears, low-voltage switchgears, and and doing different type of electrical distribution assemblies headquartered in Leicester. We acquired 100% of this in April.

You can see down there to the right that it's a very healthy company as well with some good margins there as well. Adding to the to to the Electrify division, and it's also the first acquisition the Electrify division is doing in the UK, it's also a bit of a geographical expansion for that division.

During the quarter or here in April, we also acquired Nivex Topsafe, a company that is similar to the to the Profsafe that we already have within the group. Really strong market position in Sweden and adds within safe storage with different types of of safe storage solutions.

Some 100 million in in sales, Swedish, and a 15% EBITA margin, doing it very well in in their niche. We acquired 100% of this in April into the Niche Products division.

The Hycon is another one we did here in April, which is then a supplier of high-performance hydraulic tools and power packs for cutting, drilling, and pumping in harsh environments. This these are then they are these tools are hydraulic, which is important, and and niche there where where we find some really strong special applications that that need this type of tools.

Here you can see a strong development as well. You can see that this is in Danish, it's around, yeah, 90 or so Swedish million, and and an EBITA of 20% or so.

Good acquisition and a good add-on today to the Control division from April. That was the the presentation we planned to have here.

This good to close another really strong year. I think we we had a strong performance in basically every aspect, with some 6% organic growth, with a new all-time high EBITA margin, and and an EBITA of 1.9 billion, you can see how the the the the figures are developing over time here.

Then EBIT above 1.5 billion and and a 17% EBIT EBIT growth of the year, and the return on equity is a very strong 29%, and an earnings per share at an all-time high, and an earnings per per share growth of 18% during the year. You can see how that develop year by year here.

Then a and also an increase in the dividend per share from 2.20 to to 2.50 kronor per share. We also are planning for some additional M&A going forward, and and having a a strong, but and a growth in dividend, but but not exceeding that that too large to an extent.

To build a strong balance sheet going forward as well. With that, I think we will round off and open up for questions.

Thank you, and hello Jörgen and Karin. Done here in the quarter.

A couple of questions from my side, if I may. Perhaps starting with not that surprising, but you highlighted here that you saw particular strength in electrification, infrastructure, security, and defense during the quarter.

Do you see any variances in terms of subsegments within respective end market or anything geographically that stands out that's worth highlighting, or is it broad-based? No,

it's broad-based. We are always looking into whether we see some really differences in between geographies or so, but this time it was very broad and, yeah, a lot of different sectors and geographies as well.

Understood. On the topic of your defense exposure, I didn't see that specific label in the end-market exposure that you included in the presentation this time.

Is it still below 5% of the group, or has it climbed above, if you have any comments on that? All

right. I think it is around 5% at the moment.

I don't think it's used to say that it's 3-4%, and I think it's climbed a little bit, but not significantly. It's still a fairly small part of what we're doing.

It depends on how you define things as well. I think we are not doing very much of active sort of weapons and stuff.

That we don't do, but we do a lot of supporting materials and supporting equipment around yeah, building things around the defense sector. It might be

yeah,

the CP Cases business, for instance, they're making cases for sensitive equipment to be transported.

Understood. Then turning to the Electrify segment, as you mentioned yourself, very nice profitability improvement here in the quarter compared to Q4 last year, but at the same time, fairly in line with what we have seen during the last two quarters, somewhere between 21-22% margins.

Would you say that that is the new normal level for that segment, of course given a continued strong market, but if it's fair to assume roughly those levels going ahead as well?

I think we are trying to establish the whole group at 20 and above, and I think it's good to see that we have seen that about 20 in Niche Products for some time now, and I think our next goal is to establish Electrify above 20% sustainably as well, and I think we're about to do that now. They have still some more project-related businesses like Mastsystem, for instance, that I think we've discussed a couple of times and so they have some project-related businesses that might vary over time.

All in all, I think we are definitely on the track to establish them permanently above 20% or sustainably.

Sounds promising. Then the final short question.

I noticed in the report that you highlighted that two of the more recent acquisitions, Epoke and Frigro-Akers, if I understood it correctly, had a nice contribution here in Q4 as well as it was in Q3, but you highlighted that it would be a bit softer most likely here in Q1 due to the seasonality in the business. Do you expect this to have, on a group level, would this have an impact, do you think?

It's a bit difficult to say, and they're not huge on a group level, but they might affect the division and they might affect the margin slightly. I think it's worth highlighting.

The seasonality in that business is pretty strong, it's something we need to account for going forward. As you're suggesting, it's mostly in Q1 or maybe a little bit in Q2 as well.

Understood. Very good.

That was all from me. Thank you very much.

Thank you, Max.

Yes. Good morning.

It's Gustav here from Nordea. I thought maybe just to build on Max's question there on the profitability in Electrify.

Is it possible to give any sort of indications of how much of the 480 basis points year-over-year margin delta here that is driven by Mastsystem and if there are any extraordinary projects that you are delivering on currently?

I don't have that numbers on the top of my head, but it is fairly broad-based. We are highlighting in our comments here that it's both Elkapsling, Mastsystem, Nordic Road Safety, El-Fak, and Elpress.

Those companies are all big and significant for us, I think most of what we see is improvements in these companies, but then on top of that, we're getting Mastsystem. We have not sort of derived sort of what exactly Mastsystem stands for here.

That we have not disclosed. It is a big company, and the business there will be chunky or project-related also going forward.

They had some deliveries here during the quarter, they have elevated the number somewhat.

That's very clear. Thank you.

Then on Nordic Road Safety, when you press released that acquisition, it had a margin of roughly 14%. Is it possible, or is it fair to assume that this contributes actually positively on the year-over-year delta, meaning that it is slightly above 17% or something like that now,

or? It is.

NRS has been a really strong performance since we acquired them, they have improved their numbers since we acquired them, definitely. Yes.

Perfect. Thank you.

Then on Tech-Tech, growing 10% organically here in a quarter, yet you still comment on sort of a weak construction-related end market. Should we assume that it is, however, stable on low levels, the construction end market, or is it still on a year-over-year decline, would you say?

No, it's stable or slightly improving, but not at the pace that we expected earlier on.

Perfect. That's very clear.

Just the last one here for me as well, halfway through sort of Q1. You highlight sort of the weaker seasonality in International, but is there anything else that you want to highlight, or is it fair to assume that it's continuing on a stable pace here?

It is. We are living in an uncertain world, but it looks, as we're saying, we're cautiously optimistic also going forward.

We have highlighted the Epoke and Frigro-Akers effect, but we have not highlighted anything else. I think the rest you should expect to be as normal.

We have been very stable over many years, we hope to stay that way.

Perfect. Thank you very much for taking my questions.

Thank you.

Morning, Jörgen and Karin, and congrats on the strong report. I have a question regarding the Tech-Tech division and the profitability there.

I'm interested to hear how you view it from a strategic point of view. Are you happy to wait for a cyclical return in the construction markets, or are you taking any actions to improve the profitability within Tech-Tech?

No,

we are taking quite a lot of actions within the Tech-Tech. The development has been a bit of a disappointment, and therefore, we are increasing pressure to do more.

We had also expected the construction sector to bounce back more than it has, therefore, I think we also need to adjust for that. We have some of the companies there, yeah, that you see on page 10 in my deck here.

We've got some companies that have a high dependency on the construction sector, and when they see some headwinds in the market, it is hard to outperform themselves. It will improve as the market gets better, but we are all taking serious measures in the meantime.

Very good. Then another question on the acquisition you did within Electrify in UK.

How are you viewing the possibility to add more acquisitions within Electrify in that particular market?

I think it looks good. I think we are well-positioned.

I think companies that are within that sector see that we have a cluster of companies addressing that market, and that they could see that we would be a good home when they sort of look to sell their company. They will fit right in with the structure and how we're all set up.

I think that was the case with Switchgear. They felt that we have some companies doing really well in that sector, and that we can see also some benefits from being in the same group.

Therefore, they decided to go with us. I think there are more of those in the UK, but also in other markets.

It's also fair to say that this is a market that is developing really well now, there's also some competition when we're looking and acquiring into that space.

Very good. That sounds promising.

That was all for me. Thank you.

Thank you.

Yes. Good day, and thanks for taking our questions.

A couple of follow-ups from me. Again, in Tech-Tech with the good organic growth and your comments that construction is relatively stable, but no improved margins.

Can you give a bit more color on the dynamic in the quarter on the margin side? Yeah.

I think it varies in between the companies. We also have some seasonality with some of the companies.

Some of the installations are doing more in the summer or yeah, not in the wintertime. There's also some seasonality to the whole thing, and how that plays out varies between the years.

We have some really good performing companies within that division. We have the Frictape, for instance, in Finland is doing really, really well, and we have, yeah, Idesco in Finland did it also really well, while a couple of the bigger ones that we've highlighted here and the door manufacturing companies have seen some headwinds in the market.

I think what you see in the EBITA margin development is more of a mix and seasonality effect than anything else.

Understood. Back to the International segment with Epoke and Frigro-Akers, you highlighted pretty clearly on the seasonality, and I'm just wondering if you could comment further on how their margins have looked during this period of time before you owned it during the low season.

Do they make a profit during that period, or is it maybe single-digit margins?

I think they have a strong seasonality, I think the pattern has been more that they're making losses in the weaker part of the year. Then they're sort of earning their money is in the fall and in the wintertime.

Of course, we're trying to sort of balance that out over time and change a few things in the companies, the seasonality effect won't be as strong. Looking further back before we owned them, then I think the seasonality meant that they're making losses in some parts of the year, a couple of 2-3 months there.

Very very clear. Thank you.

Lastly from me on Niche Products, which saw of course a very strong margin despite some organic headwinds. Could you explain a bit more on the margin strength despite the weaker top line?

Yeah. It's a good question.

I I think we have some companies that that really moved up and and performed really well. I think we've highlighted those in in our company in in our in our in our comments here, with the Truxor, Waterproof, and CS, especially CS in Finland has really outperformed themselves for a while.

They also have a strong seasonality in this in this part of the year, it's that that has an effect as well. I think the ones that are struggling is the more US-related with more US-related sales.

The Asept, the Tormec, and the Westmatic we have highlighted here, and and those companies are struggling have been struggling a little bit with margins over over time here as well. I think it's it's a mix effect for the other companies that is adding to the improved margin here in the quarter.

Very very clear. Thank you.

That's all my questions.

Mhm.

Good morning. This is Albin standing in for Karl at ABG.

I believe you already answered some of our questions, but if I may, another one on Electrify. This segment of course posted very strong growth and margins in the quarter.

As the electrification and infrastructure projects that you mentioned continue to scale, are you seeing any bottlenecks on the customer side here?

I think it's always when you ramp up, you see some type of bottlenecks. I'm not sure that that's strong.

I think for a while there, a couple of years, 2-3 years back, we saw bottlenecks in improvements, approvals of yeah, different type of infrastructure projects to get started. I think some of that we've seen.

Now we're building more, and I think that the bottleneck now is really installers. They are struggling to find the right people and the right sort of resources to do all the installations that are planned for.

That, of course, is hampering a little bit on our growth and the need for our components that is usually used when they're building this type of infrastructures. I'm not sure it's significant, but if there is one, that is probably the one.

Understood. Thank you.

That's all for me.

Thank you.

Hi. Good morning.

It's Emil from Kepler Cheuvreux here. I have a couple of questions.

First, I was wondering about the order intake that was organically up 5% here in Q4. Could you please give us any color on where the order intake and book-to-bill is the strongest, and whether there are any divisions where order intake is lagging invoiced sales here?

I think we've all in all have had that level of order intake and book-to-bill ratio for some quarters now. I think we see some growth, and it's coming back, but it's not huge or sort of double-digit or that is not what we're seeing.

We see sort of single-digit, but at a good level. That is what we see.

We are growing in the pace that we would like to do. I think that we see the trends that we've seen earlier on in the year continue.

We see that it is still the infrastructure, the electrification, the defense. Those are the strong ones, and that's where we see the increased order intake and the strong book-to-bill figures as well.

We've seen an improvement in the Tech-Tech division in terms of They have been lagging behind earlier on, but they have filled up a little bit more now lately with some projects that is going to be delivered in the coming 1 to 2 years. They have a bit of a longer lead time there.

I think it corresponds very well to what our comments in general when it comes to where we see the sort of stronger growth versus the weaker growth.

Perfect. That's clear.

On Niche Products, it has faced some headwinds here from US-exposed companies over the recent quarters. Could you give us a sense of the US drag going forward?

Do you see any signs of a stabilization here or improvements heading into the new financial year?

I think that we will see more of a balance, more of a little bit of a calmer sort of I think since the Liberation Day or when the tariffs and everything was shaken up a bit, I think we will see things sort of yeah, calmed down a little bit and we will adjust to where we are, and therefore, we'll go back to sort of normal circumstances along the way. I hope the big drama is over.

Okay. Thank you.

It's hard to know what happens, but as it looks right now, it is a little bit more stable along the way. That opens up for adjustments, and then we can continue growing like we normally have done.

Yeah. Perfect.

Thank you. That's all for me.

Okay. Thank you.

Yes, thank you. We have one.

We have one more question written, which is, "Do you still expect to meet your margin ambition to be possible in this market environment?" The answer to that is yes.

I think we have a broad-based, strong portfolio companies. I think looking back, we used to have one or two or three or four or five companies that stood out really strong for us, but over the last few years, we have really built a stronger set of companies.

Now it's more 20-25 companies that I consider being the really core parts and really strong parts of what we have within the portfolio. The quality of the portfolio have increased, and thereby also the opportunities for us to work in different markets and to still drive the margins.

We have an ambition to get to the 20% within 2 to 3 years, and of course, the general market will affect how fast that will happen, but all in all, I think the 2 to 3 years is still very doable. We will aim for that and continue to do that also in this market environment.

With that, I think we can conclude. I think we had a really strong set of numbers this time.

I think we outpaced our own expectations in basically all aspects. I think we have a good M&A engine going on, and we have also had some organic growth here in the quarter, a strong quarter, and we are looking forward to the future.

Thank you everyone for listening in.