Thank you and welcome to all of you for this Q4 conference call. Overall figures: turnover ending at 22.6 billion Danish kroner, an increase of 4% compared to the same period last year.

As you can see on the donut on the left-hand side of the slide, a little bit more than a third of our turnover is outside Denmark. Very satisfactory year both in turnover and earnings landing EBIT at 1,177, 5.2%.

An increase in both turnover and EBIT compared to the year before. Going to the biggest segment, Construction, the picture you can see on the left-hand side is a school that Ístak is building in Reykjavík.

Has already started the works, roughly 9,000 m² to be built in the center of Reykjavík. Revenue almost 10.7 billion Danish kroner and an EBIT of 582 million, also an increase compared to the same period last year, and EBIT margin 5.5%, also a little bit better than we did last year.

Revenue growth 6%. As we said also earlier this year, we still see high activity level in the construction market, civil engineering market in Denmark, actually also outside Denmark.

Then Articon is also contributing to the results. As I said, EBIT 582 equals to 5.5%.

Relatively good market conditions both in Denmark and outside Denmark within civil engineering, infrastructure works. There we see high activity levels.

Also projects related to the green transition, district heating being one of those type of projects. Critical infrastructure, defense is also starting to see more projects.

The building markets is still on a relatively low level, but the renovation market we see an increase in projects especially in the greater part of Copenhagen. In the North Atlantic market, all three countries we also do see good market conditions.

Our three bigger ongoing building projects, Mindet and Mailboxen in Aarhus and Terminal 3 in Copenhagen are all progressing as planned. The picture you can see on the left-hand side is a new headquarter on the Faroe Islands for Smyril Line that we have also slowly started to build in the center of harbor of Tórshavn.

Also a very interesting project, yeah, both for Articon as a company, but also for the Faroe Islands. M&E Technical Solutions: the picture you can see is new hospital in Hillerød where Wicotec Kirkebjerg is in full swing with all the M&E, all the installation works.

Revenue bit more than 3.8 billion Danish kroner, an EBIT of 162, and an EBIT margin of 4.2%. On all three parameters, an increase to the same year before.

Revenue growth of almost 20%. As I said, EBIT of 162 on a high level and also EBIT margin 4.

4.2% where we see the last 3 to 4 years positive development continues to go in the right direction. Also here we see strong demand, high activity level within yeah both projects related to the green transition, hospitals, pharmaceutical sector is still on a relatively high level.

District heating: the picture you can see on the left-hand side is from the projects we have for Vestforbrænding where we have recently won two new projects, we now in total have four projects for Vestforbrænding. A cooperation between the Construction segment and the Technical Solutions segment, those works are also continuing to go in the right direction.

Yeah. Then on to Rail: the picture you can see is from Copenhagen Airport where we are building a new station, new Kastrup station next to yeah the hotels and Terminal 3.

A project that we have worked on for the last roughly yeah, a little bit less than 1 year. Revenue almost 2 billion, a little decline compared to the year before.

EBIT of 100 million and EBIT margin of 5%. EBIT-wise, an improvement to the year before and a little decline in revenues.

As I said, decline in revenue of roughly 11% and that's due to a lower activity level in especially Norway and also to a lesser extent in Sweden. EBIT margin 100 million in line with our expectations, compared or equals to EBIT margin of 5%.

The story is the same as we have said earlier this year that we do still see high activity level especially in Denmark. Also good market conditions in both Denmark, Sweden, and Norway, but we have been, due to the situation we have had in Norway and Sweden the recent years, we are more selective to what we tender for in Norway and Sweden.

Therefore we see a little bit lower activity level there, but in all three countries good market conditions. The picture you can see on the left-hand side is the rebuild of the Central Station in Aarhus, a project that we have worked on for also the recent roughly 1 year and a project that is progressing as planned as we see it right now.

Then to Ground Engineering: the picture you can see on the left-hand side is from Gothenburg, Masthuggskajen, a complex geotechnical harbor project that we have worked on for the last 3 years, a project that is nearing completion. We expect to hand over the project to the client within the next few months.

A project that we have planned to execute more or less as planned. Revenue 3.55 billion Danish kroner and an EBIT result of 91 million equals 2.6% in EBIT margin.

The revenue is decreased by 8%, as we also said on earlier conference calls this year. A challenging year for Ground Engineering in more of the countries that we are in, low demand of especially precast piles especially in Denmark, UK, and Sweden, resulting in low capacity utilizations both factories out in the fields.

That's basically the reason for only landing at 91 million in EBIT, 2. 2.6%.

It's in line with our expectations, but of course not satisfactory compared to what we believed earlier this year. As I said, low capacity utilization especially in Denmark, UK, and Sweden, and yeah, that's basically what drives the low EBIT results.

Within No-Dig, both in Denmark and Norway we see strong activity and good markets. Both in [Østerbro?]

and at [Dike?] in Norway, we see good market conditions.

Then we have recently acquired Styrud in Sweden, having the same competences as Steg and Østergaard in Denmark and being one of Sweden's leading specialists in No-Dig solutions, a company that we acquired earlier this year, 50/50 between Ground Engineering and Pipe Technologies. The picture you can see is also from Gothenburg, very close to Masthuggskajen, a part of the Västlänken project where we are building ground engineering disciplines for one of the underground stations.

Then onto Pipe Technologies: the picture you can see is from a renovation project in Skanderborg south of Aarhus. Revenue of almost 2.6 billion Danish kroner, EBIT result of 242 equals 9.3% in EBIT margin.

I think we can say on all three parameters all-times high, especially in the EBIT results. Revenue growth of close to 10% and an all-times high EBIT result of 242 million, 9.3%.

Contrary to Ground Engineering, Pipe Technologies is having very strong market conditions, good market conditions in all the markets we are in, and that's basically what drives high capacity utilization both in the factories and in the fields, and therefore a high EBIT results. Here we acquired a smaller company in addition to Styrud, which I mentioned before, Rohrsan Kanaltechnik in southern Germany, getting us a better position especially in the southern part of Germany.

The picture you can see is from a project in Germany, a very very large hose tube of I think close to 650 m that we have transported from our factory in Aarhus down to the installation site in Krefeld in Germany. Order backlog: order intake also on a all-times high level.

Order backlog almost 26.5 billion Danish kroner and order intake of almost 25 billion and basically positive in almost all segments. There has been no especially big orders this year, it's a mix of smaller- and medium-sized order intake.

That's also very positive because that's, as we have spoken earlier about, that's what gives the base of our operations. It's very positive that we have been able to get that high number of order intake during the year.

Guidance for the next year: I think there's a mistake in the headline. It says '24/'25, but it's of course '25/'26.

Sorry for that. We expect a revenue growth of between 6% and 11%, meaning a revenue in the range of 24 to 25.1 billion Danish kroner and an expected EBIT margin between 5% and 5.7% for the coming year.

That was a very quick run-through of the figures, and then we can go to questions and answers.

Thank you. A couple of questions from my side.

If we start with your guidance for the Construction segment, you're guiding for 4.5% to 5%. Looking at the results for the past 3 years, you have been above 5%.

Can you just elaborate on the logic behind guiding for a somewhat lower margin?

We can at least try, Kristian. It's correct that we have recent years landed higher than we guide for next year.

One of the reasons is, I think we have also communicated earlier, that the Fehmarnbelt project is taken in very conservative and that of course affects the figures for the coming year. That's at least one of the explanations.

Okay. Just to give some perspective on that comment, is the revenue contribution from the Fehmarnbelt project expected to be larger in the next fiscal year than it was in

the last? You can say the expectation is that we will start submerging the elements start of '26.

That will start to ramp up, Kristian. Yeah.

Okay. There is no change to the margin as such for that project, right?

It's more the mix effect you're alluding to, is that the way to understand it?

There will be more revenue on the project next year. EBIT-wise we are still taking in as conservative, yeah.

That is also how the project mix looks at the moment. That's also how do the projects develop no more during the year, but it's based on what we know at the moment, our guidance.

Sure. Fair enough.

Then on Technical Solutions, the order intake was quite strong in Q4. Maybe if you can elaborate on what has driven that, and also that is the segment where you then guide the lowest revenue growth for next year.

Those two elements. Just some perspective would be nice.

When it comes to order intake, there are some projects within the pharmaceutical sector that has been signed in the quarter. Then we also have some hospital projects where there have been some additional works added to some existing projects.

When you come to next year, I think we have had significant growth the last few years, we are at a high level. You can say when we compare with this year, next year we'll probably have around the same revenue on our two major projects within the hospital sector, and then we do not expect any increases with the revenue within the pharmaceutical sector.

We are at a very high level. That's really what is the reason behind not expecting that much growth next year.

As Mogens said, I think we have seen two-digit growth for the last 3 years in Technical Solutions, we're on a high level. Yeah.

Is there an element of this as well where you now say that there's a limit to how much more you can take in in terms of having available resources as well?

We also know that there are some clients within the pharmaceutical sector that are probably not investing as much in new factories as they have done over the last 2 years, and then there's also the timing on the next larger project. There'll be the next larger project that will come out for tender is Bispebjerg Hospital.

It's also some timing. Yes, resources is of course also a limiting factor.

It's more also the number of projects out there.

Sure. Makes sense.

Then my last question on Ground Engineering. I know historically foundations for onshore wind turbines was a decent part of your German business, and obviously that has come down.

Looking at the auctions in Germany, that has picked up tremendously. You can say the pipeline of future onshore wind projects in Germany looks much brighter.

To what extent is this something you can tap into, and to what extent is that something which could even hit your revenue already here next year?

We already saw it this financial year. We had a few wind projects, onshore wind projects contributing to this financial year we just closed.

You're right that the pipeline is looking much better than it have done in the past. At the same time, you have also the infrastructure plan in Germany.

What we hear is that the consultants are very busy, so that should hopefully materialize in some projects maybe '25/'26, but at least the coming financial year.

I think we can say, Kristian, that the pipeline looks pretty good in almost all the countries for Ground Engineering. Bearing in mind what we have seen this year with postponed projects and canceled projects, we are a little bit careful about how fast that will move forward in Germany.

In general, we would expect Ground Engineering to have a stronger second half than first half. I think that's our view at the moment.

Yeah.

That's a good way to say it. Yeah.

Okay. Makes sense.

Excellent. That was all for me.

Thank you.

Thank you.

Hi Jesper and Mogens, and thank you also for taking my questions, and congratulations on another record year. For a start, Jesper or Mogens, could you just confirm, it's my understanding that the new district heating contracts for Vestforbrænding, they are not included in the Q4.

Is that correct?

That's correct, yeah.

That's in Q1.

That would be a Q1 booking,

yeah.

Perfect. Then as a follow-up to the discussion with Kristian on the Ground Engineering.

In the quarter, fairly good activity both in terms of order intake, P&L performance, and also guidance next year is suggesting a margin normalization in the segment. As I remember Q4 last year, it was also fairly solid and it didn't turn out to set the tone for the subsequent quarters.

Maybe you talked a bit about it before, but what are your thoughts around this segment and how much conviction do you have at this point that the worst is behind?

I think we can repeat that pipeline going forward looks quite good in almost all the countries we are in. We of course also can see what we experienced this year that even though that we also earlier this year said that there was a good pipeline, we still saw projects being postponed, some projects being canceled very late, low demand for the precast piles.

I think we can say that the pipeline still looks good, but of course we are a bit cautious about based on what we have seen. This year we have just went out of and that's I think we can also say that out of the five segments, Ground Engineering is the segment where we have the biggest uncertainty.

Yeah. That's fair.

Is it also fair to say that this cautiousness that you allude to, it's also partly reflected in the guidance you give for the year?

Correct.

Yes, yeah, correct it is. Correct.

Super. Then a question on capital allocation.

You pay out a dividend of 12 kroner. I don't see you mentioning anything about the buybacks, which you're nearing the end of the current program.

Has anything changed in your thinking around capital allocation and buybacks? Is there anything to read into that you're not mentioning that in the annual report, or is it simply not the time for you to address that thing?

Basically we have a program that is running until spring. It will be a subject either on the May or maybe February board meeting whether to extend the program or establish a new one.

It's basically a question about when the current program expires. That's the reason why not mentioning.

You will hear more either in our Q1 or Q2.

Okay. No, that was all for me.

Thank you so much for taking my questions.

Thank you.

Yes, thank you so much for taking my questions. Just on Pipe Technologies, you have a long-term margin target of 7%.

Over the past 6 years, you've delivered around 8% on average. I think 1 year you've been at 7%, that was during the inflation crisis in '22.

You delivered above 9% in '25 and you're guiding 7% to 9%. Sort of given that it seems that you've seen a structural improvement in the market and the margin, is there anything to suggest that the margin should contract in Pipe Technologies going forward?

It's always difficult to say. As Jesper mentioned, the market conditions are very good at the moment in almost all our markets.

We see more money floating in. We have invested a lot in our product technology and development and basically we are seeing now the result of all the investments we made, we are in a very good position.

I think we raised our long-term target in 2024 and so we thought it was a bit too early already to adjust it in '25. We are in a very good place, Alexander.

I think it's also highly attributable to the investments we have made over the

That we have no fallout of any countries. I think that's also need to be seen in that respect.

Especially as we mentioned, Germany is a very important market for us. It's the largest market where we are present and the conditions down there are quite good there at the moment.

It's also proving to be the right this about being more regional. I think we talked about it before that we are moving into more regional structure.

We can see that's also starting to pay off. We are putting even more focus on that because it's the right way to do it down in Germany.

Thank you. That's very clear.

Then just maybe a follow-up on the Fehmarnbelt. There's been a lot of, we can say, articles in the media focusing on a few issues on the project.

Just so I understand correctly, could you maybe put a few words on the status of the project, and seeing that you mentioned before that you are beginning to lower the elements in 2026, does that mean that the issue regarding the depth of the trench has been resolved? Or how should we think about that?

I think we can answer in that way that it's correct, as we can see in media, that there are different issues on the projects. I think that's also what we have communicated earlier in Q1, Q2, and Q3.

We are in, as we have also communicated earlier, we are in a good and constructive dialogue with the client, Femern A/S, trying to resolve these different issues. That dialogue is still both good and constructive.

We are continuing to see if we can find solutions on those issues to the benefit basically both for the project and the parties involved.

Okay. Is it fair to assume that you apply your usual, you can say, conservative income recognition on a large project of this type?

Yes. We are conservative in the intake of EBIT.

Great. Just one more question from my side.

I appreciate it's hard to comment too concretely on the defense projects given the sensitivity of the projects, but could you maybe put a few words on how you see the defense space coming along in terms of timing and the size of the market? Is it, yeah, going as fast as you've previously expected or are you seeing anything different?

No, I think we can still see an increase in demand. We are getting more and more contacts from different clients.

I think it's developing almost as we expect, yeah.

We have received the first orders, it's not just talk, it's also contracted.

We have got the first contracts, yeah. Although that they cannot be mentioned, but we have been awarded the first contracts.

That's very clear. That was all for me.

Thank you so much.

Thank you.

I will say like that, it was still too low. It was better in Q4, especially in Sweden we saw improvement.

Also in Denmark due to a specific project. It was still too low if you look at the overall picture.

We are still not happy in Q1. I think we can say like that, and that's also reflected in the guidance.

As I said, we expect a better second half year than first half year. Also to add one more comment, that we have also said earlier that the prices were too low.

That's also part of the better result we saw in Q4, that we have managed to increase price levels not to where we want to be, but at least in the right direction.

It's starting to improve, but not

Yeah. not yet.

As I said, we have a significant investment Okay. That's fair.

Yeah. I suppose, the 8% margin you deliver in Q4 for the Ground Engineering segment, also looking at your historical performances, that is pretty close to peak, I would assume.

Say if you were to return to normalized utilization rates at the current pricing level and at the current cost base, what sort of margin could you expect from the Ground Engineering segment? You can say we have significant investment in the Ground Engineering, in order to deliver the return on invested capital, we need to be at least 6%, 7%, 8% for a total year.

We need to have a fourth quarter times four, then we are starting to be happy, and that's also achievable with that complexity in those projects we are taking. When the factories start to get more volume, then it's really a volume business as well in the factories, especially in factories is a volume business, but also of all the equipment we have.

That's also a volume business.

Many many rigs in the field,

yeah. We need to have more of these complex projects where we can add our special know-how, and then we need to have more of the bread-and-butter business coming back.

We saw it partly back in our fourth quarter, but if you also look at our history, our Q1 and Q2 has always been the weak ones, and we need to improve those. I suppose that the current backlog in the Ground Engineering segment, that the margin profile of this backlog, should we assume this to be better than last year, or do you expect it to carry similar margins and then it all depends on capacity utilization?

It's improving, it's better, but not where we wanted to be yet. To single out, yes, it's also a capacity that will help.

That's where we said when we look at the pipeline, it will be more in the second half than in the first half. We will hopefully see an improvement also in the first half, but when you compare with last year, that's also achievable.

That was not a good first half year. Okay.

Thank you very much. If I may move on to a question on M&A.

You've made some larger acquisitions this year and it's my impression that you may still have appetite for more additions. I was wondering if you're able to share your thoughts on what areas additional M&A could be of interest?

Are there any specific geographies or segments where it could be particularly relevant?

I think we can answer as we have done in the past that we are maybe looking for new geographies and new competences, and you can say mostly in our specialized segment. It's basically what we have communicated earlier.

That's the same strategy.

Yes, you can say Rohrsan in Pipe Technologies is a good of the geography, that we have strengthened our position in the Stuttgart area. You can say Styrud is a good example of getting new technology in.

It's things like that that we are looking at. All right, thank you very much.

A last question from me on the cash flow. Congratulations on your improvement on the working capital here in Q4.

Are you able to share your expectations for the upcoming year? Should we expect similar levels, or what is the cash flow looking like for next year?

We were positively surprised about our fourth quarter. Normally we consume working capital, but so that was a positive surprise.

I think I've said earlier that in the long run we would expect between 5% to 7%, 8% of our working capital due to the type of business we're doing. I think we are around 5% now, so that's probably in the low end.

It's really also depending on the large projects. That could bring it further down if we secure some large projects with down payment.

I would not expect significant improvement from the level we are at now. If we can keep it, I would be happy.

That was very clear. Thank you very much, Jesper and Mogens.

That was all for me. Thank you.

Thank you from our side. Thank you for your interest in our company and thank you for the many good questions.

I hope that you got good answers back, but thank you for today and have a good day.