Hello everyone and a warm welcome to the presentation of Alleima's Q4 and full year 2025 results. My name is Frida Adrian and I am Head of Investor Relations.

I'm joined by our President and CEO Göran Björkman and our CFO Johan Eriksson. Göran and Johan will take you through the highlights of the quarter and the year, and following the presentation we will open up for a Q&A session.

You're welcome to ask questions via the conference call or submit your questions through the webcast interface. The presentation materials are available for download at our website alleima.com.

As always, safety is a top priority for us and I trust that you're familiar with the safety procedures at your current location. With that, over to you Göran.

Thank you Frida. Hi everyone and thank you for listening.

To sum up the full year of 2025, which has been heavily affected by geopolitical tensions, trade barriers, events, all contributed to making it a difficult year to navigate overall. The biggest impact we've seen, it has increased the uncertainty amongst our customers and investment decision have been pushed into the future as rules of trade has been changing sometimes from one day to another.

At the same time, I believe we show some strength despite the turbulent environment. We deliver flat organic revenue growth in the year on total 18.6 billion, and we are clearly benefiting from our diverse exposure and the fact that we have strong positions in very niche markets.

Our global footprint, including local production in the US, has also enabled us to cope with the tariffs themselves by passing along the high costs to our customers. This means, however, increased costs for our customers, which also have a negative impact on their growth.

To continue with some positives, Oil and Gas remained solid throughout the year and we are especially positive towards the umbilical business. Activity level in Nuclear was on high levels and Medical continue its strong growth trajectory.

Towards the end of the year, we also noted the start of a market turnaround in Industrial Heating, which has been subdued for almost 24 months. We noted a weaker market for more short-cycle businesses, mainly the industrial and chem petrochem segments and especially in Europe and North America, where the backlog is short and it is affecting revenues, also with something we noted in previous quarters.

Asia showed more resilience. Adjusted EBIT amounted to 1.5 billion with a margin of 8.3% and is impacted by currency effects of 341 million year-over-year.

If I should exclude FX effect, adjusted EBIT margin for 2025 would have been 9.8%. Given the weaker climate, which is difficult for us to control, we have actively been working with what we can control.

In quarter three we announced a number of targeted measures for increased efficiency and strengthen the company long-term. Despite all the turbulence, we deliver free operating cash flow of 1.1 billion SEK, strengthening our balance sheet, which is a prerequisite for us to continue to execute on strategy that we are staying with, actively working with our order booking to maintain price leadership, while we proceed according to plan with our capacity expansions.

For example, the greenfield investment in Penang, Malaysia for the Medical segment and the capacity increase for nuclear steam generator tubes. Both these initiatives are expected to start deliveries by end of this year 2026.

Lastly, the board propose a dividend of 2.50 SEK per share corresponding to 71% of net profits adjusted for metal price effects and an increase of 9% compared to last year. Let's take a look at our financial targets.

I would say, in general, we are performing in line with our targets. Starting with organic growth, we have a target to deliver profitable organic revenue growth in line with or above growth in targeted end markets over a business cycle.

We grew 0% organically in '25. I think it's important to remind us that we don't want to grow in all pockets of our serviceable addressable markets.

We are aiming for growth in attractive niches to improve our mix long-term. This spans across most of our customer segments where it's a bit simplified, but the industrial segment is not a segment where we want to grow in line with the market as profitability in general is lower in this segment.

Over the four years we've had the financial target, total organic growth has been 5% on average and more than 7% if I exclude the Industrial segment. Looking at earnings, margin of 8.3% for the year, average of 9.5% for the four year we had the target and target is to be above 9% over the cycle.

Capital structure, net debt to equity of -0.05, and please note that the 0.3 times is a maximum target. Dividend, as I just said, the board propose a dividend of 2.50 per share corresponding to pay out ratio 71% of net profit adjusted for metal price effects and a average over the four-year period of 43%.

Let's zoom in on the quarter and look at the highlights for the fourth quarter. We are, as I said for the full year, we experienced a similar market situation as we did in quarter three with a lot of so-called wait-and-see attitude among customers and it is affecting especially the chem petrochem segment and the Industrial segment.

Also the OCTG business declined on back on high comparables, and order intake rolling 12 declined 4% organically. On the brighter side, our umbilical business within Oil and Gas as well as Medical segment continued their strong momentum, and while Industrial Heating continued to show signs of market recovery.

Revenues declined organically 5% year-over-year stemming from poor market in the aforementioned industrial and chem petrochem segments where order intake affects revenue. Parts of the Oil and Gas and Industrial business were also hit by the delayed ramp-up after the maintenance stop in quarter three.

We also noticed some timing effects in Nuclear affecting us negatively. The adjusted EBIT margin declined year-over-year to 8.1% and of course that is not satisfying the development, but it's heavily impacted by a significant FX headwind, diluting the margin with almost 300 basis point, indicating we would be around 11% excluding FX.

This is of course not an excuse, but it is the main reason for the negative development. With that said, we are acting and adjusting to current market condition.

In quarter three, we announced number of target measures to further strengthen our operational efficiency and long-term competitiveness. All of these actions are progressing according to plan so far.

Balance sheet is strong and we continue to generate a healthy cash flow, enabling us to stay with our strategy also in downturns. During the quarter, we inaugurated a new production line in Zhenjiang, China, further strengthening our local for local offering of premium tubular products in the region.

To give you some more details on the efficiency actions we announced in quarter three and a few reminders of what we will achieve. Firstly, we are consolidating a number of smaller units in Americas and in Europe where we see the opportunities to better leverage our global footprint.

Secondly, we are reducing staff. The permanent staff reductions are mainly targeted towards white collar.

Thirdly, we are adjusting our production capacity according to current market conditions. This will result in annual cost savings of approximately 200 million where roughly 75% will be permanent savings and 25% more volume related, all at a one-off cost of roughly 400 million of which we booked 342 million in quarter four.

An expected run rate is around seven no sorry, 60% savings achieved in the end of quarter two and 100% by end of the year. Moving to sustainability.

As safety always is a top priority at Alleima, we have for a long time continuously and actively implemented measures to make our workplaces more safe, and the development continued to trend in the right direction. The number of accidents are on record low levels.

Share of recycled steel remains high and remains over 80% both on a rolling 12-month basis and year-over-year, which I think is a high share given the product mix where we have more and more high-nickel products. Our CO2 emissions are steadily decreasing even though we noted a slight uptick in the quarter, but we are in line with our targets and the target is to reduce by 50% from the year 2019 to 2030.

Our sustainable product portfolio grew almost 25% rolling 12-month basis, which is also a all-time high level. Let's look a little bit deeper into the market development.

The market sentiment remains mixed and, of course, affected by the ongoing macroeconomic uncertainty. Demand stayed weak in Europe and in North America while Asia showed stronger resilience.

We continue to see solid momentum in several key segments, and I'll walk you through the development in each segment starting with Oil and Gas. Overall, our view on the underlying demand is solid, more so for umbilicals where the project list of upcoming tenders and potential orders remain strong.

For OCTG, the outlook is a bit more uncertain where we see that some projects are pushed a bit forward and where we, to some extent, also are negatively affected by the FX from a competitive point of view. Under Industrial, the European demand is still weak on low value-add products.

In North America, we noted an increase, but from really low levels, and much of this should be tariff-related effects. Chem Petrochem: Europe continued to be on low levels, same in North America, while Asia is better.

Industrial Heating: in quarter three, we noted a positive growth from low levels and that trend has continued into quarter four and especially in Asia, and it's for subsegments like electronics, semiconductors, and glass. Consumer: demand is still on a good level mainly driven by the white goods industry in the Strip division.

Medical: market remains strong driven by multiple factors. I think we have solid momentum across the product portfolio, and the integration of Endos is going according to plan.

Transportation: solid demand driven by titanium tubing for aerospace, which is strong, while automotive worsened. Mining and Construction: flat underlying demand year-over-year.

Nuclear: really high activity including also discussion on next-generation reactors, but one should remember this is an industry with naturally really long lead times. Hydrogen and renewable energy segment remains mixed, but overall negative, and I would say especially in the hydrogen-related businesses.

Order intake and revenue: order intake rolling 12 months to 17.7 billion SEK with a negative organic growth of 4%, mainly coming from the OCTG in Oil and Gas segment as well as a negative development in Chem Petrochem and Industrial. Looking at it from a geographical point of view, Europe and North America weak while Asia remains in better levels.

Medical, Industrial Heating grew and we continued to book good umbilical orders in the Oil and Gas segment. Revenues amounted to 4.5 billion with a negative organic growth of 5%.

Kanthal and Strip grew and Tube declined, where Tube was affected by the weaker market in Europe and North America as well as a delayed ramp-up after the maintenance stop. Biggest positive driver for the group came from the Medical segment.

Rolling 12 months book-to-bill is 95%. Let's take a look at the earnings.

Adjusted EBIT amounted to 364 million with a margin of 8.1%. Johan will dive into the EBIT bridge later on, but overall, I would say that there are some main reasons for the weaker result.

Significant FX headwind impacting the margins with 290 basis point, which is difficult to mitigate in the short term. The weaker market is affecting especially volumes in Industrial and Chem Petrochem.

This result in reduced gross profit especially from the more profitable Chem Petrochem segment, but also lower absorption in some of our factories. The delayed ramp also affecting both deliveries and absorption.

Free operating cash flow of 422 million, higher than last year, impacted by changes in working capital and lower CapEx, and Johan will provide more color on this as well. If we take a look at the divisions, starting with Tube.

Tube noted organic growth of -7% for the rolling 12 months period. Chem Petrochem and Industrial in Europe are the main reasons for the development.

North America: continued low levels and Asia on okay levels. Order intake was also affected by the OCTG business within Oil and Gas on high comparables.

Backlog for Nuclear and umbilical within Oil and Gas remain solid, and due to the more positive market in umbilicals, we are now increasing the output pace in the beginning of this year 2026. Organic revenue growth of -11% mainly driven by a negative development in short-cycle business due to weaker markets, production limitations to the delayed ramp-up affecting Industrial and Oil and Gas, as well as some timing effects in Nuclear.

Book-to-bill was 93% rolling 12. Adjusted EBIT on 8.4% affected by already mentioned variables, the weaker markets, FX headwind, delayed ramp-up.

The FX headwind was 97 million, which implies excluding FX, the EBIT margin would have been 11.1%. Kanthal: organic order intake growth for the rolling 12-month period of 9%.

Medical is continuing on its strong trajectory and also nice to see that we now again are growing in Industrial Heating, even if it's still from quite low levels. Applications like ceramic elements for electronics including semiconductors and glass industries especially in Asia are strong, and it's for these applications our announced investments in both UK and Japan are related to.

Revenues grew organically by 10% driven by both Medical and Industrial Heating. Book-to-bill grew to 105% rolling 12.

Adjusted EBIT margin was 16.3% in the quarter and 19.7% excluding FX. This is despite the rather low level volumes we have in Industrial Heating.

Moving to Strip. Strip noted organic order intake of -11% on the rolling 12-month basis.

Where the numbers are not really telling the whole truth as Strip in quarter four last year received a large order for pre-coated strip steel, which interferes then with the comparables. The development for the division's most important product, the compressor valve steel, was positive.

Organic revenue growth of 20% in the quarter driven by the Consumer, but also the renewable hydrogen segment. Book-to-bill rolling 12 91%, which is due to some timing effects from orders.

They book sort of annual orders and some of that will move from quarter four into quarter one. Adjusted EBIT margin improves to 9.5% despite the currency headwind.

Excluding FX, it would have been 11.5%. A nice increase from the Strip division if we look back a couple of quarters.

We mention quite often that with the strong balance sheet that we can stay with our growth initiatives also in more challenging times. To give a short update on what is going on, we show this slide, which comes from the capital markets day we had in November.

To give some examples of what we expect to happen during 2026. With investments we do in the UK and US, we are increasing our capacity for products in silicon carbide, which is a product that has shown growth also during the time Industrial Heating have had a market headwind.

The investment in US will also allow us to offer shorter lead times on the American market. Additional vacuum remelting capacity will allow us to grow more in advanced grades, very often for application in segments like aerospace and medical.

We will during 2026 start ramping up the increased capacity for Industrial Heating in Japan, which will support the steady growth we've had in that market, especially for subsegments electronic, semicon, and glass. End of the year, we will start ramping up the increased capacity for nuclear steam generator tubes, and, of course, very satisfactory that we already today have a good backlog for this investment.

Also end of the year, we will ramp up the Malaysian unit for medical wire. With that, I'll leave over to you Johan to dig deeper into the financials.

Thank you Göran. Before we move into the details on this slide, I just want to comment on the targeted measures that Göran mentioned and that we communicated in our previous report.

Of the expected items affecting comparability cost of approximately 400 million, we have charged 342 million in the P&L in the fourth quarter and the remainder will come in 2026. The cash impact, which is roughly half of the 400 million, will be quite evenly distributed across the quarters during 2026.

For the savings, we have realized 10 million already in this quarter in Q4 2025 and we believe that we will be at 60% of the savings run rate at end of Q2 and have the full run rate effect realized from Q4 of 2026. Now let's talk through the bridge to the right.

Order intake for the rolling 12-month period amounted to 17.7 billion corresponding to an organic decline of 4%. Total growth was -9% impacted by currency and alloy effects with a stronger SEK and lower metal prices accounting for 6 percentage points.

Quarterly revenues reached 4.4 billion with a negative organic growth of 5% and that includes a positive 90 basis points from US tariffs. The revenues were held back by weak market conditions in Europe and North America as well as delayed ramp-up affecting parts of the Oil and Gas and Industrial segments.

Currency effects, primarily from a stronger SEK against the US dollar, had a negative impact of 6%. On the alloys, alloy effect impacted by -2% on quarterly revenues.

Based on metal prices and currencies at the end of December, we see a continued negative alloy effect in the coming quarter both on rolling 12-month order intake at -2% and quarterly revenues at -1%. Here it's worth noting that the recent trend of increasing nickel prices can of course have a opposite effect, but that on the other hand is offset by the trend of a stronger SEK, making those two neutral.

On structure, we have some positive contribution from Endos, although here it's rounded off to 0, and the integration is going according to plan. This was the last quarter that Endos affected comparability.

I'll get back to adjusted EBIT in a short while, but the reported EBIT declined to 15 million, and here we see the effects from the items affecting comparability of 342 million. We are also impacted by the lower revenues and the delayed ramp-up.

Net financial items for the quarter amounted to -1 million compared to -22 million last year, mainly driven by valuation of derivatives. Normalized tax rate ended up at 24.9% for the quarter while the reported tax rate amounted to 185.5%, and that is of course affected by then some non-deductibles and that's amplified by the low reported profit.

Free operating cash flow ended up at 522 million SEK in the quarter, which I'll get back to in a coming slide. Finally, adjusted EPS for the quarter ended up at 1.06 SEK, impacted negatively from the lower adjusted EBIT.

Looking at the bridge, and starting with the graph to the left showing adjusted EBIT bridge for the quarter, it decreased 220 million compared to last year. The biggest variable here is being a significant FX headwind, as Göran pointed out.

Of course, also a negative organic development coming from absorption effects, both from the mentioned weaker market and from the delayed ramp-up. Let me give you some more flavor on the FX effect by putting it basically into three buckets.

First, we have the translation of local results, profits made in other currencies than SEK. Here we have had almost -40 million.

Secondly, we have the transaction effects, transactions in other currencies than in foreign currencies, and the transaction effects are netted off by some hedges, almost 40% was netted off by hedges and ended up at -90 million, 9-0. Finally, we had -35 million in bridge effects, from revaluations of open positions in foreign currency at the end of the quarter.

We got -23 million of that in the P&L for this quarter, and for the same quarter last year, it was +12. This -23 is due to the strengthening of the SEK late in the quarter, and this is something that we actually could have done a bit better, I think.

On a year-on-year comparison then, excluding the FX margin, we would have been at 11% EBIT margin. The organic development was particularly noticeable in Tube while all three divisions are impacted by FX, and that in particular for Kanthal.

Structure refers to Endos, and that is reported in Kanthal. The operating leverage in the quarter was -24%, which is quite decent level given the challenges that we've mentioned.

For the full year that you have on the right-hand side, the development is mainly explained by FX headwind, but also the weaker short-cycle business and the delayed ramp-up affecting revenues and earnings, where margin declines in total from 9.9% to 8.3%, but would have been 9.8% if we exclude the FX effect. Moving over then to the balance sheet.

The net working capital decreased in absolute terms year-over-year mainly due to volume and currency effects, but increased as a percentage of revenues to 35.5% due to lower quarterly sales. To continue on inventory, they are lower in value both sequentially, which is as per normal seasonality, and year-over-year coming from both lower volumes in inventory and lower metal prices, and that's influenced by currency as well.

Capital employed excluding cash decreased year-over-year to 15.7 billion mainly driven by lower net working capital. The return on capital employed excluding cash, which is based then on reported operating profit, including then metal prices and items affecting comparability just to be clear, was 5.8% for the rolling 12-month period, down from 9.5% last year, coming from the lower reported operating profit due to the aforementioned reasons.

Looking at cash flow, the free operating cash flow amounted to 422 million, which is higher than last year, and that comes mainly from the lower net working capital and a slightly lower CapEx spend compared to last year. The non-cash items that typically refers to, for example, provision or provision releases in the operating result that have no cash flow impact, and in this case, is offsetting the items affecting comparability that we had in the EBITDA.

Positive impact from lower working capital, mainly from lower accounts receivable and inventory. On the CapEx side, as I said, we have a lower CapEx spend in this quarter compared to the quite high quarter last year, and we were expecting to be lower than the comparable quarter, but we also had some project delays and some positive effects from sales of asset in this quarter.

The amortization of lease liabilities is slightly more negative this year. If we look on the graph on the right-hand side, we can note a healthy cash flows in the last two years while running more growth investment, like Göran pointed out, and which I might remind you that these investments are in segments that are more profitable and less capital-intense and will start yielding in the coming years.

Overall, and as Göran also pointed out, our financial position remains strong where we are well below our financial target of a net debt to equity ratio below 0.3 times. At the quarter end, we were at -0.05 times.

Net pension liabilities decreased to 589 million from last year's 820, mainly as a result of higher discount rates. The leasing liabilities was on par with last year.

Our cash position continues to be strong and we have a net cash position of 864 million, which will come in handy as the board proposed the dividend of 2.50 SEK per share to the AGM in April. Looking at the guidance we gave ahead of the quarter.

CapEx for the full year came out at 1.1 billion, and the full year guidance was 1.2. Currency transaction and translation effects came out at 182 -182 million in the quarter where we guided for -150.

The total bridge effects, which I alluded to earlier, including then hedges and revaluations, was -163. The main reasons for the fairly high effects is, of course, the stronger SEK and the revaluation effects due to SEK movements late in the quarter.

Metal prices affected us negatively with 8 million, which is very close to the neutral effect we guided for, and normalized tax rate came out at 23.9% for the full year, well in line with the guidance of 23% to 25%. Looking at the guidance for Q1 and full year 2026, and I feel I need to comment that a few of these key metrics are quite volatile at the moment, which makes it difficult to give guidance, but we will continue to give it based on the rates and prices at the closing of the latest quarter.

Please have that in mind. The full year CapEx, we maintain at the level that we came out of 2025 with, meaning 1.1 billion also for 2026.

In that, we deliver on the projects of steam generator tubing capacity increase in Sandviken as well as Industrial Heating capacity in Japan and Medical capacity in Malaysia. On the currency for Q1 2026, based on the rates per end of 2025, the transaction and translation effects are estimated to -240 million on the back of the stronger SEK.

On the metal price side, based also at the end of December metal prices and currency rate, particularly nickel and US dollar then, we have anticipated actually a negative effect of 50 million for Q1. Here it's worth reminding about the dynamics that the price increase for nickel or even for molybdenum or chromium, but nickel being the most significant one, over time, this leads to positive metal price effects, a price increase in those, while a stronger SEK, which we are seeing now against the US dollar, has the opposite effect.

Please have that in mind. Tax rate for the full year 2026, we expect the normalized tax to stay in the range of 23% to 25%, just like we had said before.

By that, I hand back to you Göran for outlook and summary.

Thank you Johan. Outlook for the first quarter.

The general economic environment was continued uncertain during the fourth quarter, and also given the recent development, we don't see that that will change during Q1. We maintain a solid backlog in several key segments, which provides good visibility into near-term deliveries, mainly in umbilicals in Oil and Gas, Nuclear, and Medical.

We also see challenges in the more short-cycle customer segment, particularly in Europe and North America, which already have affected and is expected to continue to affect short-term deliveries. We expect some dilution effects related to delayed ramp-up to affect also first quarter profitability, even though that equipment performs much better in the end of quarter four, but still some effects also in Q1.

Product mix is anticipated to remain broadly in line with the fourth quarter. As Johan just explained, we expect a significant currency headwind also in the first quarter, and finally cash flow tends to be lower in the first half compared to the second half of the year.

Which moves us into the summary. We are affected by the continued uncertainty stemming from geopolitical turbulence.

Customers are postponing their investment decisions. In all of this turbulence, I believe we are clearly benefiting from our diverse exposure and global footprint.

Revenues were flat organically for the full year 2025, but the short-cycle business was weak mainly for Chem Petrochem and Industrial segment, while segments like Medical, Nuclear, and parts of Oil and Gas remain strong. Earnings were affected by significant FX headwind, absorption effects from weaker markets, as well as delayed ramp-up.

Despite this being a difficult year to navigate, it is a strength that we continue to generate healthy cash flows. That, combined with our strong balance sheet, creates foundation for continued strategy execution, and I'm confident that will make Alleima a more resilient and more profitable company long-term.

With that, I hand it back to you Frida.

Great. We will now begin the Q&A session.

Please feel free to ask your questions via the webcast or directly through the conference call. Operator, please go ahead.

Yes, hello. A couple of effects I wanted to ask about regarding Q1 specifically.

You mentioned the ramp-up delays after maintenance stops. If I remember correctly, you had previously guided that those stops would have 80 basis point margin impact in Q4.

Are you able to give a similar quantifying metrics for Q1 as to how much that will impact?

I will not give you a number, but I will try to explain the situation and why that is a bit difficult. It's right that we gave you a guidance on 80 basis point for the quarter four.

I think we came in maybe in line with that. I think maybe even a little bit worse, but it's one of the biggest impacts it has is that it has a negative absorption effect in some of our factories.

Absorption effect, it's sometimes difficult to see if it comes from this problem or that we in some of the cases have lower volumes due to the market. It's a combined absorption effect.

Then you won't have a number, but I would say that it is at least 50% of what really happened in quarter four because the machine is working much better now, but not perfectly.

Thanks. That's helpful.

Then also on Q1 and the FX guidance, which I appreciate is especially hard to give now, but 240 at Q4 end rates, again, I remember you said that for Q4 you had roughly half of that being hedged, but is that the case going into Q1 as well, that the 240 is excluding hedges, on end of Q4 rates, it would be 120 actual effect? Is that fair?

No,

it's not that high hedge effect. The hedge effect sort of is falling off as we quarter by quarter, and as if you recall what I said when I tried to explain the effects then on the transaction side, we were able to offset in quarter four, it ended up to be about 40% of the transaction effects we managed to offset.

I think that that effect sort of falls off for every quarter going forward.

Understood. Then on a more general note, tube orders continued to sort of come down, and previously you've been fairly confident that the backlog in Oil and Gas has supported solid growth ahead despite that.

Would you say that that's the case still, or is the Oil and Gas backlog starting to become thinner now?

It's a yes on both questions. I think umbilical we are very positive on, not that the backlog is extremely split in two and three quarters, but that also makes us flexible to book more orders.

We're at least so positive for the rest of the year on umbilicals that we are increasing the production pace and the output pace now in the beginning of the year. Confident there.

OCTG, we have backlog maybe three quarters. I think the order booking is a little bit slower than we want, so that might be a risk on OCTG end of the year, but there are still some big contracts out there.

I mentioned in my comments also FX hit me. The main competitor sells or have their cost in Japanese yen, of course that has an impact on sort of our competitiveness in the OCTG.

Understood. One final question on Kanthal and regarding Industrial Heating where you sound more positive on the outlook and the arrow even points up now in your arrow slide.

What has really changed there, because overall industrial activity remains fairly subdued? Is it a specific end market driving that improvement?

It's a good reflection. I think first of all it's both end markets, but it's also geographical.

It's really Asia supporting this. Europe is still soft, and it is segments like electronic, semicon, glass.

Glass also very much related to electronic, it's those segments and it's mainly Asia.

Understood. In that case, that's all for me.

Thank you.

Hi guys, thank you. Just a few questions from me.

You mentioned that timing-related effects in Nuclear contributed negatively during this quarter and that some of that should sort of spill into Q1 instead. Can you give us a rough figure of how big that effect should be?

I'm looking at Johan if he has the numbers, but I can start to explain what it is, because we are so positive in Nuclear and then we come and say it's negative timing effect. Of course that could always happen since this is normally large contracts and they don't sort of invoice every week.

I think the main effect we saw in quarter four is that in some cases, in some contracts, because this is a very long internal value chain, we have the possibility to invoice before sort of the tubes are ready before shipping. We have some steps in the value chain where we can invoice.

We had such a contract last year, we didn't have that this year. There was some invoicing from sort of intermediate tubes last year that we don't have this year.

That's the main reason.

That's clear. Thank you.

Maybe another question on the Oil and Gas part. You said some of the outcome during this quarter was sort of due to production limitations from the delayed ramp-up.

Can you maybe split how much was due to that versus the sort of overall weakness within OCTG, meaning how much should we sort of extrapolate going forward?

I think all the impact we saw in quarter four was related to the delayed ramp-up, because we have full order book for two, three quarters. It was a lack of supply of extruded hollows to the cold working operations.

All impact came from that.

Thank you. Is there anything you can say about the sort of timeline on reopening the Sandviken plant and how soon can we sort of expect to see any sort of contribution from the increased nuclear capacity there?

We said end of the year. I think what sort of stipulates the timing is lead times of equipment.

I was there walking through the factory a couple of weeks before end of the year, and now I think most things are supplied and now it starts to be built up. I don't think we're changing the timing.

It will be end of the year. If any of the production could start a little bit earlier, I think that's too soon to conclude.

We do what we can to start as soon as possible.

Great. Just one last one.

You very briefly touched on pricing, how potential price hikes and how that sort of impacts your customers. Can you maybe comment on how much, if any, of the sort of order decrease was pricing-related?

No, I cannot do that. Now that's a good question, but that would be to speculate too much.

I think about it, I think I've been quite transparent before, at least when it comes to the tube flow. Of course this depends on what grade it is, but on a cold working product, we've said that price increases needed is around 10% to 15% to compensate for the 50% tax, because it is a tax we pay on the imported bar.

Of course, 10% to 15% price increase, that's a lot. I cannot speculate the percentage how much that impacted.

Sorry.

Okay. Thank you.

That's all for me.

Yes, hello. Thank you.

Firstly, I was wondering about just high level. Previously you've mentioned maintaining order booking discipline several times.

Now with book-to-bill below 0.9 in the quarter, could you quantify a bit more how much volume you're actually walking away from to preserve pricing?

No, I understand why you ask the question Anders. I cannot tell you that because you never know if we lower prices, maybe the others also lower prices.

You don't know where you end up. I don't want to speculate on that.

Of course we can book tons into the steel plant. I think I would say now it's been down for some while.

Some of the factories are running on a bit lower volumes. This is the time when it hurts the most to have this strategy.

If it starts to move in the other direction, we have short backlog, prices will be better, I think now it's sort of very important to stay with the strategy we have. Also saying, of course, this is not binary.

It's of course that books some orders sometime, but I cannot give you a number. I can say I don't have the latest updates, looking table here, I think we communicate before that we're running roughly the steel plant at 20% lower volumes than we did 2019.

That does not imply that we could book 20% more, but I think, as I said, right now is when it hurts the most, but now we need to be cool and keep on our strategy. We don't want to have price wars to get some low value-add products.

No. Makes sense.

Really appreciate that answer. Makes sense.

I would also like to know a bit with regards to then obviously Industrial and Chemical and Petrochemical. Could you share anything in terms of how confident you are in sort of a demand recovery trajectory in 2026 for these markets?

What I just said was that sometimes you can argue if it's the segments or the sort of geographical market. It's these segments that hurts the most in Europe and North America.

I would claim that it's mainly Europe that is weak and that industrial investments are sort of lagging. That is I think what is happening.

I think even since quarter two we have seen that sort of order intake is low and it affects revenue, and it happens again. It would have been nice to say I think those times are over.

They are not. We will see this also in quarter one.

Then of course, mathematically we will start to sort of meet lower comparables, but that is more mathematical than sort of dollars.

Yeah. In short-term

I don't see turnaround short-term.

Right. I appreciate that.

I didn't mean to push to repeat yourself. I was more wondering about because you did not really touch previously upon kind of the CBAM or tariffs that the EU is implementing.

Some in the market are discussing that. What's your view of that for your business?

I would say that overall, I think EU is taking a good decision even though we are both a company and a country that prefer sort of free trade. You cannot sort of stay with that politics if others don't do that.

I think it's good that Europe is taking that decision. That is sort of to secure that we will have a steel industry in Europe.

With that said, I think it's much more related to, let me call it, bulk steel industry in Europe. Swedish steel industry has since pretty long time become very more specialized.

I think we are less impacted in a positive way than others. With that said, I think we also have some of the more low added value products, for instance, in Tube.

I think on the margin it will be positive for them. It's more for sort of the other part of the European steel industry.

For Europe, I think it's a wise decision.

You don't want to quantify that impact for your part?

No, I can guarantee you that I've asked Tube the exact same question and they cannot quantify it. It's not big.

Okay. Thank you.

That's all the questions from my end. Thank you.

Thank you. I just want to confirm, did you Göran said that the lead times for the umbilical business is two to three quarters or two to three months?

Backlog is I maybe I said months, that was a mistake in such. It's two to three quarters backlog.

It's two to three backlogs for umbilicals and three quarters for the OCTG business?

Yes.

Thank you. Then I just want to if you can give us some sort of, to understand better understand the Tube division that declined 11% organically in revenues and and order intake was down 7%.

Were there any larger orders in Q4 last year or or can you say anything how we should think about that the coming quarters as well?

I would say mainly that there are some tough comparables in OCTG, some tough comparables on Nuclear, because they booked steam generator tubes quarter four 2024. Then they're impacted by the weaker market in especially Europe, but also North America.

Okay. I see.

In Q1 yeah, this year or last year, should we take into account any significant or large orders there as well or how should we think about that?

Not sure we had any large order. We had Nuclear in the quarter one last year.

We had a big nuclear order quarter one 2025.

Okay. Yes, thank you.

In terms of

That was close over 500 million, that order.

Okay. Thank you.

In terms of Chemical and Petrochemical, do you have any view when this segment is starting to have easier or lower comparables?

Of course that would start to meet lower comparables, I think mathematically we will start to look better, but I think we need to see a turnaround on industrial investments in Europe and also in North America.

Okay. Thank you.

That was all for me.

Do we have any further questions?

Thank you very much. Thank you all for calling in and thank you for very good questions.

This concludes the call. Thank you very much and have a good day.

Thank you. Bye-bye.

Thank you.