Good morning and a good afternoon, everyone, and a warm welcome to Bufab's Q3 report. My name is Erik Lundén, President and CEO of Bufab Group, and together with me here today, I have my CFO, Marcus Söderberg.

This presentation will be recorded, and by attending to the meeting, you agree to the recording. I will start to take us through the highlights of the quarter.

Then I will leave the word over to Marcus for some financial highlights. After that, I will go through the performance in each of the regions before we sum up the quarter.

Let's start with the Q3 highlights. I'm overall very pleased to report another strong quarter for Bufab.

We deliver strong organic growth and achieved significant improvements and record margins on both gross and operating margin. We continue to execute very well on our strategy with clear focus on value creation for our customers.

We deliver a total growth of 16.6% with a strong organic growth of 6.5%, driven by market share gains and a somewhat stronger underlying demand in the market. The demand was particularly strong in electronics, mechatronics, electrification, digital infrastructure, aerospace, and defense.

The gross margin improved by 1.6 percentage points, reaching record high 34.3%. This ended up into a strong adjusted operating margin of 15.6%, and almost all our operating companies improve their results, with particularly strong improvements for our sisters in Europe West and Asia-Pacific.

I'm also very pleased with the start for DSIron, which we acquired at the beginning of the quarter. The company has developed very well.

It's early stage, but so far very good start, and integration process is progressing according to plan. I will now leave the word over to Marcus for some financial highlights.

Thank you very much, Erik. We start by turning to slide 6 in presentation, looking at the growth.

The growth trend continued in the third quarter. Net sales increased by 16.6% to 2,236 million SEK.

Acquisitions, meaning Novia in Q4 2025 and DSIron acquired in this quarter, contributed to 9.5 percentage point out of the total. Currency had a slight positive impact with 0.7 percentage points, and organic growth was strong, 6.5% in the quarter.

By reporting a strong organic growth also in this quarter, we marked the fifth consecutive quarter of organic growth for the group. Order intake was in line with net sales.

The organic growth was strongest in Asia-Pacific as well as in Europe West, but also UK/Ireland as well as North and East also contributed positively. It's basically only Americas where we had negative organic growth, and the reason for this is mainly due to one-time refunds of previously paid custom duties and as well as slight lower demand within the RV and automotive markets.

We turn to slide 7 in the presentation, where we see gross margin development as well as opex development. Looking at gross margin in the quarter, the margin reached a record level of 34.3%, up 1.6 percentage points year-on-year.

All regions improved their gross margin. The drivers remain the same basically as in the recent quarters: a better customer mix and product mix combined with more value-based pricing as well as some sourcing savings.

Opex amounted to 18.1% of sales. This was positively affected by revaluation of earn-outs amounting to 20 million SEK, but we also have a negative impact of 7 million SEK in connection with transaction costs for DSIron at the beginning of the quarter.

Adjusted for those items, opex ratio as percent of net sales was 18.7%, meaning a decrease of 0.2 percentage point year-over-year. We continue to see good cost control as we grow.

We turn page to slide 8 in presentation, where we see the operating margin development. I guess we can sum it up basically like this, that the strong top-line growth that we saw in the quarter, the high gross margin, and the good cost control in terms of opex resulted in a record high adjusted operating margin of 15.6% in the quarter compared to 14.2% last year.

Adjusted EBITA increased by strong 28% to 349 million SEK. Behind the increase, it's basically four of our five regions that improved their operating margin.

Only Americas not making a year-over-year increase, but they remained on a very solid or strong level of 20.8% despite the lower top line. We turn to slide 9 in the presentation, where we see the development of our cash flow in the quarter.

As you can see, cash flow from operating activities increased to 370 million SEK in the quarter compared to 293 last year. It's actually marking the strongest quarter so far in 2026.

The increase is mainly explained by what we already have talked about, meaning the improved underlying result. Working capital contributed slightly positive despite an inventory increase due to the organic growth we saw in the quarter.

Strong organic cash flow generation despite strong organic growth. We turn to page 10 in the presentation, where we see the development of our indebtedness and net debt versus EBITDA.

Net debt decreased by around 50 million SEK during the quarter to 3,444 million SEK, which includes leasing. This was achieved despite the acquisition of DSIron in the beginning of the quarter.

Adjusted net debt versus EBITDA improved to 2.2 times from 2.4 at the end of the last quarter, and it was also actually a year-over-year decrease with 0.1 percentage point. Also that when taking into consideration that we made quite a big acquisition in Q4 last year, meaning Novia, as well as the acquisition of DSIron in the beginning of the third quarter.

We're very happy with the strengthened balance sheet during the quarter, driven by increase in underlying results together with a strong cash flow that we have seen. With that said, I leave the word over to Erik again to go through the different regions.

Thanks, Marcus. We will then start with the performance in Region Europe North and East.

Net sales increased by 3.2% in the region, of which organic growth was 3.0%. Several companies continue to develop very well in region, particularly Norway, Poland, and Hungary, as well as BUMAX, supported by strong market share gains.

Demand in defense, digital infrastructure, electrification remained strong, while construction and furniture industries remain on a low level. The gross margin developed very well, increasing by 1.9 percentage points.

This was driven by improved customer product mix together with our continued focus on value-based selling. The region's cost level increased mainly due to foreign exchange losses on operating receivables, somewhat higher obsolescence cost, and also investments in growth.

Despite these higher costs, the improvement in gross margin more than offset the high expense ratio. As result, the adjusted operating margin improved to 15.6% compared with 14.6% in the comparative quarter.

If we then continue to Europe West, net sales increased by 39% during the quarter with very strong organic growth of 14.2%. The acquisition of Novia Group contributed by 25.2%.

The strong organic growth was driven by continued market share gains, improved product mix, and previously communicated larger projects, which are progressing according to plan. Looking at the demand, we saw particular strength in mechatronics, aerospace, electricity, and defense.

The gross margin increased by 2.4 percentage points, driven by improved product mix and a higher value added from new projects. The operating expense ratio, adjusted for the revaluation of contingent purchase considerations of 20 million, decreased to -12.8%.

The improved operating expense ratio was direct result of strong operating leverage on additional volumes, combined with solid cost control in the region. All in all, this resulted in significant improvement in profitability, with adjusted operating margin increasing to 15.4% compared to 12.7% in the comparative quarter.

Finally, the recently acquired Novia Group delivered a stable performance in the quarter for Europe West. If we then continue with Region Americas, they had a total growth that was negative by 6.6%, of which organic growth was -8%.

The negative organic growth was due to refunds of previously paid custom duties, lower demand in the RV and automotive markets, and a strong comparative quarter. Adjusted for the refunded custom duties, organic growth was -4.3%.

Despite lower volumes, there was a strong improvement in gross margin, which increased by 3.4 percentage points. This was primarily driven by a general price adjustments and our continued successful efforts to improve profitability within the CSG Group in the US.

The lower organic growth also resulted in somewhat higher cost level relative to sales, together with somewhat higher obsolescence cost for the region. Overall, the adjusted operating margin remained at a strong level of 20.8% compared to 22.2% in the comparative quarter.

Continue then with Region UK/Ireland. Net sales grew strongly by 20.2%, while organic growth was solid 5.4%.

DSIron, acquired at the beginning of July, contributed with 13.4% to the sales development for the region. TIMco continued to deliver robust sales despite the weak construction market, while rising stainless steel prices supported a slightly improvement for Apex.

We also saw strong improvement in gross margin, up 2.4 percentage points year-on-year. This reflected a better customer product mix, higher price on stainless steel prices, and the addition of DSIron, which has a somewhat higher gross margin than the rest of the companies in the region.

The cost level was somewhat higher, reflecting transaction costs for DSIron. Adjusted for these costs, operating expense ratio was 22.1% compared with 22.6% in the comparative period.

Altogether, this resulted in a strong improvement in the adjusted operating margin, reaching 13.8% compared to 10.7% in comparative quarter. Then finally, Asia-Pacific.

We saw very strong growth in the region with total growth of 22% and organic growth of 28.4%. The development was particularly strong in Bufab Shanghai and Bufab India, driven mainly by continued strong growth within energy, industrial, automation solutions.

Gross margin also improved significantly by 6.0 percentage points, reflecting continued value-based pricing, a better customer product mix, and also purchasing savings. At the same time, the higher volumes provide strong operating leverage combined with continued good cost control.

All together, this drove a substantial improvement in profitability, reaching an operating margin of 21.1% compared to 14.3% in the comparative quarter. I will then go through to group news, and I will start with a customer case.

Today, I will talk about our customer Knorr-Bremse. Knorr-Bremse is a market leader within rail and commercial vehicle braking systems, with operations in more than 100 locations globally.

They have a broad product portfolio and a relative complex C-parts and technical components requirements within their operation. When KB started to interact with Bufab, they had a clear mission to consolidate their broad supply base and to lower the total cost.

We at Bufab saw in early stage a big opportunity to support KB on their journey and create peace of mind within their C-parts and technical components space. Today, we support KB with end-to-end solutions covering sourcing, quality, sustainability, and logistics.

We create clear value through tailor-made solutions that suits KB's needs on each site. We are today one of KB's three strategic global distributors, supporting more than 30 sites in total, with big opportunities for further growth into new commodities and also to more sites globally.

Hopefully, just the starting point with the growth journey together with Knorr-Bremse. I would also like to take the opportunity to welcome you all to Bufab's Capital Markets Day that will take place in Stockholm on December 10th.

Please register by sending an email to [email protected], and I hope to see you all in Stockholm in the beginning of December. Finally, I will end this call by sum up the quarter and say a few words about the priorities ahead.

To sum up, I'm overall very pleased with the performance in the quarter. We delivered a strong organic growth of 6.5% and record high gross and operating margin.

We have now seen strong year-on-year development in our gross margin for 13 consecutive quarters, and we expect the gross margin to continue to improve during the rest of the year. Looking at the market, the geopolitical uncertainty remains, but we saw some improvements in the market during the quarter.

We also see somewhat higher purchasing prices from Asia that we, of course, handle as we normally do in Bufab in a good way. Looking ahead, our priorities will remain the same.

We will continue to execute on our strategy, take the opportunity to gain market share, gradually improving our margins, and have good control over cost base, and of course, delivering a solid cash flow. We will focus to continue our value journey with clear focus on improving for our customers and also improving our product mix and also continue our work with implementing value-based pricing organization.

Overall, we have a very strong momentum in the organization, and I think we're very well positioned for the coming years to serve our customers in even better way. That was my final slide for today, and I will now leave the floor open for Q&A, please.

Hello. Hi.

Just a couple of questions from my end. You said that you expect the gross margin to continue to improve for the rest of the year, but as you mentioned, you also see higher purchasing prices in Asia.

Do you sort of mean it year-on-year or also above this Q3 level? Also, how quickly can you pass the Asian increases on?

As I mentioned, we expect the gross margin to continue. That, I think, is based on work we've done I would say many quarters and years back, actually.

It's not a short-term impact. It's a long-term working that our sisters have done to gradually improve our gross margin so that is sustainable.

When it comes to changes in the price level from Asia and also even before saw increases from Europe, that is something that is natural for us to work with and pass on to our customers. We don't see that impacting us in a negative way.

Okay. Very clear.

Are you maybe able to sort of split out how much of the organic growth that was price versus volume?

Normally, we do not go into that kind of details. The only thing that we can say is that it's basically a combination between taking market share, increased volumes that we saw a bit more now in this quarter maybe relative to the previous quarter 2026, as well as a price component as well.

We don't go into details when it comes to that.

Okay. On the duty refunds in the Americas segment, can you maybe specify what that EBITDA impact was?

Also, just on the broader market, are you seeing any signs of stabilization in the RV or automotive markets?

Sorry, can you repeat the first question? What did you say?

We lost you there.

The duty refunds, the EBITDA impact, could you specify what it was in the quarter?

Yeah. Basically, it's a [krona per krona?]

refund mainly. The actual impact on EBITDA level is not to be considered as significant at all.

It's basically a growth item mainly.

Okay. Also, my second question was sort of more on the broader market.

You mentioned that you haven't really been seeing signs of stabilization in the RV or automotive, is that correct?

Yeah. If you take overall, we see somewhat improved demand in the different markets.

When it comes to US market, where we have most of our automotive business, is still a low demand for automotive in US specifically. That's what I commented.

Okay. Also just sort of, you mentioned that your organic growth was, well, primarily it was a mix of things, but you mentioned market share gains.

Who are you sort of taking share from, and what is winning it for you? Is it sort of this service sourcing or pricing at this stage in the market?

Yeah. We are mainly competing with small local players, and our customers, specifically in the trading part of our business, they're helping our customers with consolidation of a big amount of suppliers, where we have a very strong offering compared to small local players.

We're mainly taking market share from local players, and we can see a good development market share-wise in several regions and in many countries in the quarter, very pleased with that performance. Then you had one more question here.

Sorry, can you repeat that one as well?

I think that was clear.

Thank you.

Thank you very much. That was all from my end.

Okay. Thanks, everyone, for joining this call, and once again, warm welcome to our Capital Markets Day in Stockholm in December.

Thank you.

Thank you.