Good morning, everybody, and welcome to Ferronordic's presentation of the fourth quarter of 2025. Start by looking at some of the group highlights.

Revenue in the quarter decreased by 10% in Swedish kronor to 1.2 billion. Adjusted for currency, the revenue was more stable and was down 4%.

Despite this, we increased gross profit by 12%, while at the same time increasing SG&A by only 1%. As a result, operating profit increased to 31 million, despite one-off costs in the quarter of 23 million.

Net finance costs declined by 24% to 26 million. Net profit improved to 15 million, despite further foreign exchange losses of 18 million.

Net debt at the end of the quarter decreased to 1.6 billion, and net debt to EBITDA improved to 3.4. Equity at the end of the quarter amounted to 1.3 billion, roughly translating to 90 kronor per share.

During the quarter, we worked to further strengthen customer relations and improve profitability across the group. Revenue was down 10%, but fairly stable adjusted for currency.

We saw increased revenue in the US despite continued currency headwind, offset by lower truck sales in Germany. Operating profit increased to 31 million or 54 million excluding one-off costs during the quarter, compared to 19 million excluding one-off costs in Q4 2024.

Finance costs were 24% lower year-on-year, and net debt to EBITDA improved to 3.4 compared to 5.2 a year earlier. We saw a strong quarter in the US with revenue increasing by 7% in Swedish krona and operating profit increasing by 13% despite significantly weaker dollar.

Lower revenue in Germany, mainly driven by lower truck sales, but with higher gross profit, lower SG&A including the one-off costs we took, and lower working capital. In Kazakhstan, we continued to clear old inventory, resulting in higher sales but lower margins.

Operating profit excluding one-off costs in Kazakhstan was around zero. Looking at the US, we see continued strong demand, good customer activity, good customer optimism supported by strong backlogs.

We see continuously high activity in various infrastructure projects, road construction, and a lot of new data center projects. The GPE market in our territory grew by 16% in Q4 and 9% for the full year.

Competition in the market remains intense when it comes to pricing, and price increases related to tariffs and the weaker dollar are only being implemented gradually. Equipment sales increased by 17% or as much as 26% in US dollars, partly then driven by tax incentives for investments that were introduced earlier in the year.

Rental utilization softened, normal for the season, but continued to improve year-on-year, and as a result of this, rental sales increased by 11% in Swedish krona and 20% in US dollars. Service and parts sales declined by 6% in Swedish krona, increased by 1% in US dollars.

Our cost level remained stable, and operating profit then increased by 13% to 73 million compared to 65 the year before. That was a 21% increase in US dollars.

We continue to focus on gaining market share and improving our aftermarket penetration. We still see plenty of potential to take a larger share of the potential business in our territory.

Operationally, we continue to work with various projects to make our business stronger, particularly when it comes to IT. We are implementing a new CRM system, and that is progressing well.

We are also taking steps then related to the CRM to relaunch our system for automatic lead generation. After the quarter, we closed the acquisition of Housby Heavy, the Volvo CE dealer in most of the state of Iowa.

That deal was completed on the 30th of January, since February 1st, Housby Heavy is part of our US segment. This was an asset deal where we bought the assets relating to the business, and we took over operational employees.

The transaction did not include any real estate. All liabilities relating to the business in the past remains with the seller, and all the corporate employees that were supporting this business remain with the seller.

This is now a fully integrated US branch supported by our corporate office in Louisville. When it comes to revenue and market size, this area is about 10% of our US segment before the deal.

Over time, we expect profitability and return on invested capital levels to reach the same level as our other branches in the US. Purchase price in total amounted to 17.7 million, of which 17.3 were basically machines and spare parts in inventory and rental fleet.

We do not expect to recognize any goodwill related to this transaction, which was then primarily debt-financed. Looking at the German business, demand overall remained soft, even though we see signs of recovery.

Customers continue to operate their fleets, and at some point, they will have to replace the trucks that they are using, so that is good. Registration in our area increased 8% in the quarter, the market is recovering.

The same time, our truck sales decreased by 50% or 48% in euro. This should then compare to very high truck sales in Q4 2024, partly driven by inventory clearances taking place that quarter.

Service and parts sales remained flat in euro. Margins improved overall, but then from a low comparative quarter which included, as I said, clearance sales and impairments of inventory.

Service and parts sales are developing more slowly than we would like due to continued shortage of technicians, but we also need to focus on workshop productivity. We have a lot of newly hired technicians that need to become more experienced before they reach the required efficiency level, and in some workshops, we need to improve activity and improve utilization of the technicians we have.

The situation differs from workshop to workshop, and one thing that gives us optimism now is our new service organization introduced at the end of last year with a more clearly defined local P&L responsibility, which should lead to a lot of smaller improvements in each and every workshops will all in all will generate big improvements overall. We took measures to reduce our costs going forward in the quarter, and these measures are expected to result in 16 to 17 million annual savings going forward, but resulted in 17 million one-off costs in the quarter.

Including these one-offs, operating profit in Germany improved to -9 compared to -28 excluding one-off costs in Q4 2024. Now, this is of course still well below the potential we see and are working for in the German business.

Working capital on lower inventories and lower receivables reduced by 20 72% to 108 million, amounting to 7% of the last 12 months' revenue, something we are pleased with. In Kazakhstan, we saw continued market recovery supported by increasing activity in mining and road construction.

The GP market is estimated to have grown by 30% in the quarter, quite substantial growth. We continue to focus on clearing older inventory to improve inventory quality further.

Year-on-year, the inventory is now reduced by 55%, with very few old machines remaining. As a result, equipment sales increased 42%, but margins were lower than last year, while service and parts sales declined by 9%.

We recognize a 3 million kronor impairment loss in the quarter relating to inventory and some other assets. The operating profit then excluding the one-off costs improved to breakeven.

We now have a new management in place in Kazakhstan. We have a partly new and improved sales organization.

We have a much leaner balance sheet and a recovering market, we feel positive and well positioned for the year to come. Erik, I think that was it on the operational questions.

Thank you very much, Henrik. Turning to financial side of how that translate into the financial side of our business.

Starting by looking at the income statement and at 4Q, we can see, as you mentioned, Henrik, revenue down 10% to 1.2 billion, that's -4% adjusted for currency effects. Looking at the geographical revenue mix, we see two-thirds, 67%, coming out of the US, three-tenths from Germany, and 3% from Kazakhstan.

In terms of revenue mix with regards to the revenue streams, 56% equipment and trucks, 36% parts and service of the aftermarket, that is the stable part of our business, the percentage attributed to that varies more driven by what happens in the equipment and trucks segment of the business, and 8% rental, also an important part of our business, especially in the US business model. Gross profit up 12%, and gross margin increased by 3.5 percentage points to 17.7, and that's driven by improvements in all operating segments, improvements in Germany, Kazakhstan, and a small improvement year-on-year in the US as well.

SG&A increased 1% for the group as a whole, almost flat. On the back of slightly lower revenue than the SG&A as a percentage of revenue ticks up somewhat to 15% versus 13.4 a year ago.

Operating margin in the fourth quarter at 2.6%, a good improvement on last year, but still far from where we want to be with our operating profitability. In terms of Swedish krona, that's 31 million, and that is then after one-off costs in the quarter of about 23, 54 adjusted or excluding those costs and provisions that we would consider to be one-off and non-recurring.

Net income at 15 supported by lower financing costs, which in turn is partly driven by lower working capital and related to that, lower net debt for the group as a whole. We did have further FX losses mainly related to our US assets.

Moving over to the year to see where we landed the full year. Revenue on a full-year basis down 6%.

Again, adjusting for FX effects, most important of which were in the US, that would be flat, same revenue as last year if we would keep foreign exchange rates at the same level as last year. Mix relatively similar to the quarterly distribution: 64 US, 1/3 Germany, and 3% Kazakhstan.

Similar picture also in terms of the business areas: 53% equipment and trucks, 39% parts and service, and 8% rental, again, as it was in the fourth quarter. Gross profit up 2% year-on-year, again, despite the revenue coming down, and that is driven by a margin increase.

Here, if we look on year-on-year, that is driven by higher margins in Germany and Kazakhstan, partly offset by slightly lower margins in the US, as you can see. In the US for the year as a whole, we came down from 20.5 to 19.1 in terms of our gross profit.

SG&A up slightly to 724 million, that's 4%, and as share of revenue then a small increase as well, 4/10 of a percent there increase, largely flat as a percent of revenue. Operating margin increased for the year as a whole to 1.7%, and the operating profit to 77 million, up from 21, that is again with those one-off costs in the fourth quarter, without which that would have been 100 million Swedish flat.

We did carry on the year as a whole meaningful FX losses indeed, and that's again driven by mainly the US assets that we hold on the parent company level, but also to a smaller extent our investments in Germany. Moving on to the balance sheet for an overview there, we can see year-on-year PPE is down slightly.

Much of that is again FX driven, stronger Swedish krona making the assets we carry mainly in the US and to a smaller extent Germany smaller in our overall balance, but also a rental fleet reduction in Germany. In looking at working capital and then moving to quarter-on-quarter, versus the previous period, we have a increase in working capital in the US, and that's mainly driven by strong sales in the end of the year reflected in the revenue in the US, which drove up receivables in the business, but also higher inventories.

In Germany, increase in net working capital from 6% to 7% of long-term revenue, and that's mainly driven by the lower revenue rather than the asset side or the payables in the quarter. In Kazakhstan, net working capital decreased as we continued to clear inventory there, a result of lower inventories, but also higher payables as we start ordering for next year in Kazakhstan.

Net debt declined, partly also an effect of FX, but also of the result that we show in the quarter. Equity to assets, 1 percentage point up there from the previous quarter and 3 percentage points year-on-year.

Next slide, I'll jump through fairly quickly. It's a reminder to those that follow our company that in 2024, we presented the US segment differently from how we did starting from first quarter of this year.

In this report, that has been harmonized, it is like-for-like when you look fourth quarter '25 versus fourth quarter '24. If you would go back to the report released in fourth quarter '24, you would see a difference, and that's what we outline here.

The difference is in presentation and it's presentation only. Does not affect EBIT level.

It does impact to a smaller extent revenue, and it moves some costs from SG&A to COGS, it does impact also the gross margin, again explained on this slide here as a summary, and you will also find it on page 9 in the quarterly report. Moving to an overview of EBIT movement year-on-year.

As mentioned, we had improvements in all segments. US up 8 million Swedish krona on what was a strong quarter in the fourth quarter of last year, and without FX effect there, that 8 would have been 14 million.

It is a good result, but again, the foreign exchange is weighing on our translation of our US results. Germany up 12, so that also factors in, of course, this 20, one-off which is related to Germany.

There were one-offs in last year's period as well, but again, the delta there year-on-year, the improvement would have been bigger had we not carried those one-off costs, which however are investments into our future, it is I think important steps that we are taking there to put ourselves in a better position going into next year. Kazakhstan also up seven year-on-year.

There remind you also there were one-offs on the inventory side. We did take some impairments to clear out that inventory, and that was three, should have been three higher.

Now, going on to quarter-on-quarter, different picture, big increase in the US there really to a very strong finish of the year, especially on the top line in revenue. Germany, we were at breakeven EBIT in Q3 close to that, a decline.

Again, this delta of -27 includes that one-off of 20, seven would have been the difference otherwise. Then Kazakhstan also lower than in the previous quarter, for the group as a whole, we're down six quarter-on-quarter.

This slide, I usually share with you that follow the company, highlighting where our assets are on the balance sheet, and you'll see that the rental fleet is the biggest piece, the red part of it being the rental fleet in the US and the gray part being the one in Germany. Second would be our inventories, again biggest in the US, which reflects the scale and potential of that business.

Then trade and receivables from our customers as number three, and real estate, including, of course, IFRS 16 to your far left there in real estate. On the liability side of this bridge, you'll see the biggest piece being our VFS floor plan, of course reflecting inventory and also rental fleet.

Then to your far left here, the trade and other payables, also supporting our inventory position across the group. Then bank loans also underpinning the business, which gets us to an equity or NAV of 1.3 billion, which translates into 90 Swedish krona per share.

Finishing off with our financial objectives before handing it back to Henrik again. We are lagging our revenue target.

Part of this is again an FX effect. We started last year at or at least we were in February, I remember, at 11.2 against the dollar, and around nine now, so that is a big change in that foreign exchange environment.

On the operating margin, we are improving. We will continue to move towards our long-term target there, and again, year-on-year, we've made progress, but still have some way to go.

Similarly, on the net debt situation, a big decrease in working capital, especially in Germany and Kazakhstan, to make our use of capital more efficient and to increase our capital turnover and thereby enhance our return on invested capital. When we sort of pull that working capital back, we've also reduced our net debt, you can see here we're at 3.4, we were at 5.2 a year ago, so that's good progress on that side as well.

With that, I would hand it back to Henrik for a bit of outlook before we take Q&A from the audience.

Thank you, Erik. Looking at the future and the year ahead, we are optimistic about the US.

Of course, we recognize there is ongoing uncertainty when it comes to tariffs and the weaker dollar, but our customers do have very good backlogs and activity is high. Infrastructure spending remains at a high level, driving then not only construction work, but also various industries that are related to infrastructure projects, in particular then quarries and aggregates.

We see continued increased activity when it comes to data centers and various investments related to the tech industry and the AI boom. Overall, we see good opportunities for further development and expansion in the US.

In Germany, we expect the market recovery to continue, driven by the need to replace current fleets. Customers are using their trucks, and eventually, they'll have to change them.

The fact that the customers also continue to using their fleets also drives continued need for service and parts. We then need to ensure that we have enough resources to capture this need, while at the same time working on optimizing productivity across our network.

Now we have an even lower cost base, but we still maintain an organization that can handle bigger volumes. All in all, we remain optimistic when it comes to the German operations.

In Kazakhstan, we are also seeing signs of recovery. We have a new management in place, and we have a much leaner balance sheet, and all in all, we see good opportunities to increase sales and earnings in Kazakhstan.

Thank you.

With that, we hand back to the operator for Q&A.

Thank you, and good morning, Henrik and Erik. If we start with the US where you delivered a very strong performance, do you consider this an exceptionally strong quarter or are we seeing underlying structural improvements here?

It was a good quarter. I wouldn't say that it's sort of an extraordinary quarter.

A good quarter following the patterns that are in the US where you would have larger equipment sales at the end of the year, partly driven then by customers having tax incentives to boost up their investments at the end of the year. In terms of revenue and margins overall, I don't think it's extraordinary.

I think we manage well when it comes to managing costs, which then, of course, leads to improved results.

Right, understood. On that note, we've seen a rebound in the US ISM manufacturing PMI in January, which was well above the consensus.

Are you seeing corresponding improvement in trading so far in Q1?

I would just repeat what I said earlier. We see very good activity in our industry, a lot of infrastructure projects going on, and a lot of this data center constructions.

I see. On the German impairments, if the market were to remain subdued for longer, should we assume that most of the necessary adjustments have already been made or could there be additional one-offs generated going forward?

When it comes to impairments in Germany, we were referring to Q4 2024. That's when we made inventory impairments.

We have not made any impairments in '25.

All right.

If you refer to the

The restructuring cost,

yeah.

Exactly. That's what I'm referring to.

Exactly. Technically there was an impairment of the office that we use in Frankfurt, because it's booked as an IFRS, so that would actually qualify as an impairment.

It is restructuring, and I think we've taken in two big steps cuts to our cost base in Germany. We did so earlier also starting in 2023 and which was then implemented in '24, and we're taking sort of another cut now, and I think we really are getting to a very efficient base and more resilient in a weaker market if that would be protracted for longer.

We've been again very cautious not to sort of in any way hurt and to the extent possible instead develop and continue to grow our service organization. We continue to hire mechanics.

I think, yes, Albin, we are now in a very good position to both capture a growing market, but also being more resilient if the market remains a bit weaker for longer.

All right. I hear you, Erik.

Regarding group costs, they've been kept at a lower level now two quarters in a row. Is this a structural change or were they unusually low this quarter as well?

I think, Albin, there are two two effects. On the one hand, yes, we try really to look at costs where we can pull them back and do So, there are some of these costs that are indeed structural, I would call them.

Then there are effects also of provisions that we make in the first half, including bonus provisions that we make in the first half of the year, and where if we're not reaching our targets, then you pull them back or reverse them in the second half of the year. You have some of that which is then more you could argue a temporary.

It's structural as well because if you don't reach targets then you wouldn't have those costs. A little bit different I think in how you would look at those costs.

All right. Lastly, it was encouraging to see you executing on your stated bolt-on strategy now with the Housby acquisition now in Q1.

Can you give some color on how you perceive the M&A potential going forward? Can we expect more of this?

Of course, there are certain debt constraints, but could you give some color on this?

I think this was an important first step in expanding our US platform, and we continue to look for opportunities, but when and how and where and so on is not something we can go into in detail. We follow a strategy that we have that we want to expand the business.

All right, that was all for me. Thank you.

Thank you.

Thank you, Albin.

We'll start with questions coming online. We have one question, I think you may be best at addressing, Henrik, with regards to the competitive landscape in the US, and specifically how we compete against giants such as United Rentals, an example the person brings up in the question.

Okay. When it comes to the overall competitive landscape when it comes to the manufacturers and brands available and so on, it's very similar to Europe.

Of course, it's a good question in the sense that US is special when it comes to the big rental companies, because in Europe, we don't really have these continent-wide rental companies. I wouldn't really say that we compete with these companies.

We fill different roles in the markets. They are big companies that do rent-to-rent only, and they buy immense fleets of fairly simple and standardized machines to make money on their volumes, and being able to replace them very quickly.

We also have a rental business in the US, but it's more focused on rent being a first channel before sale maybe, more than rent-to-rent. As a dealer, we focus more on more complex machines that require much more service and parts support and in more complex solutions rather than more standardized products.

I wouldn't say that we compete with the rental companies. Maybe in some deals, and to a certain extent, they are our customers, but it's more like we complement each other in the market.

Thank you, Henrik. Another question, which I'll try to take on regards capital allocation and how we reason and the person who asks the questions takes the example of the Housby acquisition versus buybacks, given that our stock trades below book value, and says that that's maybe a board decision, and I would deflect that way.

Yes, I would say it is a prerogative of the board. I think we can also say that we do look at, of course, what we believe are in the best long-term interest of our shareholders.

This acquisition that Henrik outlined a bit of in this presentation is very much in line with the strategy that we see in the US. This is an adjacent state to us.

We can apply our corporate functions and overheads and leverage the capacity we have there in this expanded area of sales and business to us, and really scale our business and get better returns on the fixed costs we have. I think this is very much fitting what we want to do and want to achieve.

I would maybe add to that also that the specifics of this transaction, which is an asset deal, really what we're buying is inventory, and that's something that we do all the time. Here we require a large bit of inventory that we will probably need to buy anyway, and especially when we do that in an environment where there has been pressure on the dollar and uncertainties about tariffs, these are attractive assets to have in our view.

With that also comes that you can arrange basically inventory financing for this, which isn't certain that you would have the same terms for if you would use the capital for other purposes. In addition to that, there is also liquidity on the stock that we would consider, of course.

With that, I hope I've addressed that question. I think that's it.

I'm going to see if there's anything new online here, but I see no more questions online. Henrik, is there anything you want to say to wrap up or should we give it back to the operator?

We give it back to the operator. Thank you very much for listening to us.

Thank you very much for your interest in Ferronordic, and we give it back to the operator. Thank you.