Good morning everyone, and welcome to NOTE's year-end report. How do we summarize this year and quarter?

If we start with the quarter, it's it's a quarter where we made a very where we came back to the profitability that we are are are hoping and and expecting. Maybe we're on the higher end compared to where we have been and where and where our long-term objectives has been, but that is not a bad thing as I see it.

Profitability is very important for us because that builds a how shall I say, a foundation for what we want to do in the in the future. Profitability and cash generation is what what give us the opportunity to be aggressive in in the consolidation that is ongoing in the market.

This quarter is yet another quarter where we show our ability to adjust and adopt to to the to the current surroundings. Our top line were not were not that high.

We came in just barely in in our guidance. We had some delays and pushouts from the Defense area.

We are also seeing that in the first quarter. To be clear, those pushouts are not lost sales; those are delayed sales, and that means that currently we have some issues with especially test getting products through test.

That sounds very straightforward and easy, but these are really complex products with with a lot of different processes involved, so we we we see some delays there, and we have had some pushouts from our customers in from the from the fourth quarter and and from also now in January. We do expect the Defense segment to come in really strong for the year.

We have previously guided for for our expectations of plus 30% year-over-year until 2030. We do not see any reason why why that trend is broken.

We see our order order backlog in this segment is the at the highest ever. That means that we are fairly comfortable that we will see a very good Defense and Security & Defense segment development throughout the year.

Also, if we look forward beyond 2026, we also see that the projections from our customers is continuing to be really strong, and our projections for 2027 and onwards in this segment is yet even stronger. Yes, we see some pushouts from the fourth quarter.

We see some delays that is coming in in the first part of Q1, but for the year and for the quarters to come, we are expecting really strong development in this segment. Moving on.

Sales: 1 billion for the quarter, 3.8 for for the year. Profitability: our underlying OP 11.4%.

I think the best we have done before in in percentage is 10.6%. What I'm very pleased with is that we are getting the the result all the way down to to earn to to profit after tax.

3.04 Swedish per share is also one of the strongest we have ever presented. It's the best we have done underlying in both absolute terms, but also in percentage.

We have had some higher results in some quarters due to one one-time effects, but this is the best we have ever done. Operating cash flow: this is to me a bit I'm I'm this is the weakest cash flow quarter we have had in in I think nine nine quarters.

I don't see the the trend of of having a cash generation exceeding the the earnings after tax that that has broken. We had some yeah, we had some customers that were not paying as they should in the end of of of December.

Those are those have paid, we will expect Q1 to be stronger in relation to to Q4 then. This is just what some of the larger companies are are are are doing.

We try to prevent that from from chasing them hard. This year, we didn't succeed as well as we did last Q4, so that's why we see we don't see the operating cash flow coming in as we expected.

We are, as I said before, we still expect that we have another say 100 million in positive cash flow compared to our our yeah, our the normal cash cash generation that we have. Cash flow we do expect that that will remain strong.

What I'm very pleased with is for the year, we managed to to extend the Torsby site, continue to invest in in equipment and capacity, and on top of that, we did acquisition of Caston Electronics, and all of that we we managed to do with our own cash generation. I think that's a big sign of strength for us.

Also, where we stand on the cash position today, we are seeing that we can take an active part of the ongoing consolidation in in in in in the industry. I said that in 2025, I think it was it was the year with the most of of what do you call it, high-level acquisition that has been made in in in the industry.

We see some acquisition from our peers that have been quite sizable. We see see good momentum in in this sector.

However, I still see that there's plenty or several of of of targets that is out there and and are in in dialogue today. My projection is that we will see a continuous, quite steep consolidation period in in in 2026.

I think that NOTE has we are still in the position to take an active part in that consolidation with our with our strong balance sheet. 48% in equity after this acquisition is in my opinion fantastic.

I think we do a very good job in that area. Moving on.

If I look at what we have done in in in fourth quarter, the acquisition of Caston, it's a small company, sales of about £12-£13 million, very strong profitability, strong customer retention. I've been there a few times the the last quarter, and I think I've had five different customer meetings there, and every one of them are are are are targeting to extend the business with us.

We're really, really pleased with what we see from the generation of leads that is coming out of this this acquisition. This I think that this will will turn out to be one of the turning points when we look backwards for the for the group.

I think that is is something that we are very pleased with. We continue to invest in our expansion.

We we we took the premises in Torsby in in late November. We're now moving into the new site, 7,000 new square meters of production area.

We more than double the site in capacity. This site looks really, really strong, and and what we also see is that we now are taking the the last steps to make this site a very defense production capable.

It was before, but we take more steps in this. This this will be one area where we expect good growth in that in that segment.

We also see that other segments in Torsby is doing well, Torsby we we do have a very positive outlook for not only in the in the Security & Defense, but also in other areas. We have some of our largest industrial customers are there, we have some of our largest medtech customers are there, and every one of them is is performing in line with expectations.

We will relocate in Lund. That will happen in the second quarter.

I don't know exact which date. I think we we will take the the building in the in April time frame, March/April time frame.

We will have a gradual move into that. That building is we have built it to to our our wishes, if you put it like that.

This this is a building that will be much more efficient than the current one we have. The current one we have is old, we have a lot of small rooms, it's not space efficient.

We are subleasing premises in the in the building next to us in Lund just to cope with with the with the steep demand we have there. This will be a very good opportunity for us to streamline that operation and and and continue with the efficiencies that we do in in that site.

We're also expanding our Finnish site. We will take that premises in I think August/September time frame.

We're in the last preparation of that move as well. In Finland, we are going from just below 2,000 square meters up to something 3,300 to 3,500, if I recall it right.

Also here, the the building is significantly more efficient than the current one. The current one we have is is quite narrow, it's L-shaped.

This will be a square box with with built to our needs in in that area as well. We have high expectations that this will be a very good step forward forward for us.

What we also see is that we continue to build our competences and and and technologies and processes to be stronger going forward. Our ability to to meet our customers' demands are really really aligned.

We see that the products that we make, especially in the Security and and Defense area, are quite complex, and we continue to invest in in processes to support that growth. I think most of of our peers that are in this area are doing very similar things, but we we see that our position and our capacity that we have in this area is is sizable.

We we we see that our customers are taking on big orders, and we we are trying to mirror that capacity growth that they are expecting in our factories, we can easily take on on the on the growing needs in this segment. That's one thing that we are also working heavily on.

Order backlog: 11% up. I've talked about it during the the last quarters that we see tendencies of growth in in this area.

We now we see that it's turn turning into good, positive numbers. What we also see is that if those has follow followed us during the component crisis in 2021, '22, and '23, we talked about the extension of the order backlog.

Today, the order backlog is normalized, we don't see that we have orders from industrial customers two years away. Therefore, we think the order backlog is a good indication of where we're heading for for the coming year.

The majority of our order backlog is is due for delivery in 2026. There are some defense orders that are are on the other side of '26, but most of of the orders are in '26.

That's also very important to keep in mind. We see that this is back to normal levels.

We also see that if you talk about deliver times on components and so on, there is no indications of of of of shortages if we exclude memories. The AI storage is is consuming a lot of the memories, we watch that space quite carefully because that is to me the next possible problem area when it comes to to limitation of of of of availability of components.

Looking ahead, our balance sheet, I talked about it, almost 50% in equity. 403 million in net debt, that went up.

We were actually debt-free if I recall it when we reported in Q3, we took on some debt in in the last acquisition. I think that we still have a very low net debt compared to peers and compared to industry, we we we would not be hesitant to take on more debt if that is needed.

We also think that our balance sheet is strong, we think our liquidity position is basically where we were some five quarters away, we we we don't see this as a limitation either. Good preparation for the year to come, good expectation of a continued cash flow, we we are quite active to or we're quite aggressive in the market that will will will will be lying in 2026.

I've talked about our operational excellence. When I say that our deliver performance is back back where it should be, that means that we're delivering above 96% on time in full.

That is a really strong strong message to our customers that we we will deliver what we promise. I was a bit annoyed in in the early part of '25 when we when this took a little bit too long to get there.

Now we are there. We have a few sites that are lagging, but the overall picture is very strong.

From a quality point of view, we are continuing to deliver aligned with for example, we we were meeting, for example, the automotive industry demands when it comes to PPM levels. We we are doing way above what our what we have in our agreements and what our customers' expectations are here.

This is an area that I'm very proud of because the most annoying as as a buyer is if your supplier don't deliver on time or if you have quality problems. Then you always discuss those rather than than extension of business.

I want to have these questions should be off the table, our our focus is to be strong, we should be better than the than than the industry. Therefore, we are also not targeting to have our inventory turns above five because we think that that will give us flexibility to to meet customers' demand.

Even if I say that we have some 100 million still available to free up in our inventory, but that's about when when we have done that, I think we are aligned. Now we are in the midpoint or just below midpoint of our of our targets for inventory turns.

Very important: operational efficiency, operational excellence, and delivery performance is something that we we see that as a necessity. This this is one of the areas that we focus on the most.

Going into our segments: fourth quarter strong both in in in in for for the group. I think we we talk I think a lot of companies talk about their their profitability on EBIT or EBITDA level.

I think that for us, we also watch how how do we perform on the financial net and and and how do we manage to get the profit in after tax. I think that's often neglected in in in today's reporting that if you're just positive on EBITDA, then everyone is quite happy.

I think that we we work on all aspects of our of our P&L. I think for us to generate the cash we do, we we we need to be efficient in how we do with our financial activities.

I think our finance net went down this quarter partly due to low debt, but also due to that we work heavily on on assuring that we have the the right setup here. For the year, I think 10.1% underlying OP.

I think we have reported one year better than that. I think that was '22 we were slightly above this, but that was during a very extreme period of of of the EMS industry where growth were were just astro- astronomical.

We I think we ended that year with 42% growth or something. This is to me much more difficult to to do.

This is one of the I would say 2025 is to me probably our best year from a from an operational performance side. Cash flow, as I said, to be able to generate cash flow also after this acquisition of of Caston, the extension of Torsby, and the extensive CapEx program that we do on on our investment side, I think that is really pleasing to see.

Very proud of that. Moving on into our segments: I think this is also important.

We we were seeing that our Rest of the World has developed very nicely during the year, 8.2%. I think that is the best we have done in in in that region.

For Western Europe, 10.4%. We have been higher than that.

I I remember the number of 10.9% for I think that has also must have been 20 2022, but we're closing in on that, and the last quarter is higher. Yes, we expect that we we are we are where we want to be on on on this side.

If you look at at the different countries: Sweden continued to be strong, plus/minus zero. Yes, there's there's a lot of ups and down in that in that number, I can tell you, so it's not it's not a straightforward line here.

I think we do most activities in Sweden are are done fairly good. UK, we have talked about it before, 30% or so down.

We are expecting growth in UK for 2026. It's a bit like the EV segment.

We are we are at the level where it cannot go down, if I put it like that. Not only that, we see also good signals from from some of our largest customers.

The customer we talked about last year that has zeroed out their demand, we are forecasting for them to go up to a level of maybe £4-£5 million this year. That is a good recovery on on that customer alone.

We also see that other of our larger customers are coming in in with slight increases. UK, we have good expectations of that we will do a good turnaround in that country for for this year.

Rest of the World: yeah, good growth in in Estonia, fairly good growth in China. These numbers are also excluding or after currencies, the growth in local currencies are are quite much stronger.

For the year, I think we we expect some growth in in Estonia. I think China is a bit soft for for 2026.

We will see where Rest of the World will will end up during this year, but but Estonia looks good, Bulgaria looks good. Even though it's a small site, we have a lot of very interesting programs aligned for in the pipeline for for for for Bulgaria.

China is a bit yeah, I wouldn't say problematic, but we I would I would not be surprised if I see a few percentage down when I when I summarize China for for 2026. All in all, I expect Rest of the World to continue to grow, but with small numbers for '26.

Moving on: segments. If we take Industrial, that's our largest segment.

We saw slight growth in in the fourth quarter. I would say that we are still running this on a fairly flat level for the for Q3 and Q4.

There's a lot of ups and down in this in this segment. I am expecting this to normalize and that we gradually will start to see better and better growth number for the year.

Security & Defense ended up on the same level or slightly below. This is a segment that I think when I think I I showed a slide, I think I don't remember where it was, but we we had 92% growth in in 2000 in 2024, good growth in '23, and we we see that '25 is is some kind of flattening, but on the trend line, we still expect this to grow.

I said that our expectation is that 30% year-over-year until 2020 2030, that is still valid, and and our order book is supporting that growth in in in in the quarters to come. However, we are a bit cautious of the first quarter of of how much the delays that we see will affect us.

Communication: this has been this was NOTE's second-largest segment for many years. We have seen a decline.

We we see some hesitation from customers to invest. Now I see that some of our customers are are are indicating that this is is is a growing trend.

For example, one of our customers, Waystream, another listed company, they have they have announced a few wins. We see that the order book to them is is is growing and growing.

We also announced in in the spring of '25 that we are taking over all the supply to them, they they discontinued their their other source. That's one customer that we expect to see good growth over for for this year year and the years to come.

They have a very interesting product or product portfolio, I would say. Medtech: there's I said it before, there's just a few customers in the in this segment, maybe five, six that are sizable.

The overall picture is is fairly good. We see that we had some big deliveries in the Q1 and Q2 to one of them, and and those may not be be coming into this year.

They might come later on. We are seeing medtech that with flat or slightly negative outlook for the year.

That's related to one customer, I would say. Greentech: finally, 22% for the year, driven by a few a few customers, but especially we we introduced one new EV customer in in in the spring.

That is that customer alone is standing for at least half of the growth for this year. The underlying demand in this segment is not that strong even though it looks that that way here.

This is to me, I've said it before, without charging stations, without energy savings, and so on, I I think the Europe is struggling with with with with the productification of the of the of of of of the of the electrification. We see it.

I think the the companies, the ones that we supply to and the companies outside in this segment, they're not doing fantastic. There has to be there is no no real incentive for from from from the politicians to make this happening.

There's a lot of talk, but very few initiatives at the moment. I think Sweden tried to put in a new EV car contribution, but that was really a lot of conditions for it, we will see how much that effect that will have.

If this should have a big effect, I think that it needs to be a broad broad subsidized that covers more people than than what this will do to have an effect. We we are yeah, my outlook on greentech is probably that it's flattish or or slightly negative for the year.

When I look at this: Industrial, Security & Defense, and Communication is the areas there that I see more positive outlooks from related to the others. When I say more positive, I also see that the order book is supporting what I'm saying, so that's a bit a bit easy.

If you look at these graphs, what I've said before, if you grow 10%, you should grow your your your EBIT margin with 0.5% to 1%. That's just the net the nature of fall-through or drop-through or whatever concept you're using.

If you don't get that, you you should be really careful with what what you do. Then you can argue if you if you want to win new customers, you might go down on margin, and then that relation might might be broken.

Generally speaking, that is how how this industry is working. If you can push more business through your existing factories, that will give you a good fall-through.

That's just how it is. If you look at the first half of my two graphs, they are very closely linked together: good growth, good profitability increase.

Then we had the decline decline in sales, and that was mirrored with the decline in in in profitability. That's what I said, that I'm really pleased in that we have broken that that relation.

We managed to grow our profitability without growing our top line. That is significantly harder than than to grow your your your your margin without or or with the good growth.

What I see is that when our growth is coming back, that we expect, we also see a good good profitability development. I've said it before, I think we when I started at NOTE, we introduced that 15% of our sales increase should land on on bottom line.

Maybe for the low-cost countries, that number might be 12, but in some generic terms. That's what I mean with that if you grow heavily, your your your your profitability will grow.

That's basically what we are expecting, that we will turn back in into growth, and we will also see a good profitability development for for the year. That's that's what we are targeting internally.

I'm not said so much about acquisitions, but there is always I normally say that we yeah, we're talk about we talk with a few different targets. Some are more active than others.

I think that is is still valid. We we have a few very active dialogues, we have we have a few initial dialogues where where where we are assessing if we should go into more active discussions and so on.

My my expectation is, as always, to close at least one acquisition for 2026. I think our balance sheet is supporting that, and I know that our owners is is is expecting that we should be active in this area.

The question is always, how do you find the right ones? That is that is what is challenging because because there is a lot out there.

What we are looking for is probably a slightly more sizable acquisition than than small. Small is about the same type of work to to close them, and then the the additional values is is is lower.

I think Caston was one example of of this relatively small company, but good profitability. That added some extra things.

What we really like with Caston is that they have a such strong customer pipeline. They are doing small parts to to some customers, but but now we're in in dialogue to take over the the volume parts that they don't do for other sites.

I think that that yeah, my expectation of this acquisition is really strong not only for the acquisition in such, but for the pipeline that that they have generated. I was in UK last week and and participated in our our sales meeting for for for UK, and the pipeline looks really, really good.

Pipeline means the customers that we are in dialogue with or negotiation with and and so on. That is was really positive.

A and a good part of that pipeline is coming from the old Caston customers or dialogues. That's what we see.

As I can speak forever, but I will summarize now that we are we are expecting '26 to be a good year where we are seeing that our profitability is where we expect it to be. If we manage to get some growth on this, we will see good fall-through numbers for the year.

Good balance sheet, strong equity. We are prepared to take on more acquisitions and and continue our investments in the future.

We also see that our order backlog that we have struggled with with a bit in in the in the last year is starting to increase and and is coming in more and more into our expectations. Good ending of '24 or '25, and and and and I am very positive in for for '26.

That's basically where where we stand. I close there, and I open up for questions.

Should we, as always, start with questions from from this room and then I move on to to the web? Anders?

Thank you, Johannes. I was wondering first on the Security & Defense end market.

Yeah. In the quarter, you saw some deferrals driving 17% year-over-year drop in the segment.

Yeah. Is your view that this was pretty much exclusively deferrals, or is there some sort of lumpiness in Caston that we should consider?

No, Caston came in just spot-on to what they said, this is purely due to our Security & Defense customers. Okay.

That, in turn, that's not driven by sort of customers dual or multisourcing to a greater extent? No, that is not to our knowledge.

We are pretty good to understand who is producing because if the products is hard to make for one, the customers have a tendency not to dual source, to be clear. Makes sense.

You're guiding kind of for softer start to '26 in this segment. What's your sort of visibility, would you say, on what customers are doing?

I would say that we have orders for the majority of '26 in this segment in the defense part of this segment. The security part is slightly shorter, that is more normalized, but in the defense area, we see for this year.

If we would deliver what the customers have ordered, we will see very good growth for this year. Okay.

Finally, we've discussed this before, but sort of normalized drop-through levels in terms of particularly Western Europe, as you scale up defense, how should one interpret that in terms of what the sustainable margin is for Western Europe going forward? Maybe a follow-up on that is, Rest of the World has been the profitability driver in recent quarters, right, in terms of margin development?

Should that continue, or will there be a historically normalized level between Rest of the World and Western Europe in terms of profitability? I think that if I look at the numbers, I backed up to this slide.

If we say that we do, say, 8% in Rest of the World, I think that's good. That is a level if we can continue to improve that with maybe 0.5% per year if we continue to grow, I would be really pleased.

Western Europe, with the current mix we have, we can probably do yeah, a bit more than where we are. In this quarter, I'm looking at Frida here, but I would say that we were doing probably 11.5% to 12% in OP in Western Europe in Q4.

I don't have that number in front of me, but because I think we were roughly at 10.1% after three quarters, it should be in that range. 11.9% in Western Europe in Q4.

Yeah. Good.

Then my mathematics skills were okay. On point.

Yeah. Okay.

Now, if we continue with the mix, I think there's no reason why Western Europe should not continue to deliver good numbers. I think it's fair to say that Rest of the World should have lower OP because we have lower margin of the material, there's much more material in the sales in that region.

I think the relations say that if we can do 11% on Western Europe and 8% to 9% on Rest of the World, I think that would be a good assumption. If we would get all the backlog out in this year in Western Europe, yes, I think that we can do even better.

Very hard to say because it's a lot of ifs and buts. My expectation is that we will not decline on operating profit this year compared to '25.

Yeah. Thank you, Johannes.

Thank you.

Thank you. Good questions already.

Just to follow up on the backlog here, which tend to be a pretty good indicator, as you said, of next quarter's sales and also sort of next two quarters' sales, in relation to the deferrals you mentioned in Security & Defense, is the backlog positively impacted by new orders coming in defense, and it's just a delivery issue for sales on top line from defense in Q1 2026?

Yes. Yes, our order backlog is growing by the quarter and by the month, we see the same as our customers are seeing.

We have had issues to get a few of this program to run smoothly, if I put it like that. We should also remember that I think Q4 in '25 was our second-best quarter in actual terms, but Q4 last year was extraordinary strong.

It's not by definition a weak quarter. We are still unhappy with what we delivered.

We had significantly higher orders than we managed to get out.

Thank you. Could you just elaborate on the other drivers of the order backlog improvement in Q4, what and how much was driven by defense?

I don't have that number, but I would say that defense grew more than the other areas, but I don't have the number.

Thank you.

Yeah. Go ahead, Anders.

If no one else. Just two more questions.

Firstly, in terms of your view of consolidation and the industry, which I agree with, how are you working to ensure that you're not and you will not overpay for targets and kind of integrate them in a sustainable, good way? To exemplify it, could you maybe elaborate a bit on how you're working with Caston in terms of integrating it into NOTE in Western Europe?

I will answer this question in two ways. I think the first question, there is a slight increase in multiples in the industry.

I think that is fair to say. I think if we see the last acquisitions that has been made and if you look at Cicor's acquisition of Delta Nordic, quite high multiple depending on how you look at it.

If you look at one or two years ahead, maybe not so high, but on current performance. There is also, I would say, a trend line between if it's an industry or a company that are supplying to, say, industrial customers, maybe that those multiples are not extending that much.

If it's into the Security & Defense area, yes, those multiples are going up. There is always a potential that you overpay.

The tricky part is always to see how sustainable is the business that is currently in a target, because you don't know the customers because you haven't worked with them. If the customers that we have internally at NOTE that we have had for five, 10, 15, 20 years, we have a pretty good idea where they are heading.

If you acquire something, you have two months of due diligence to get to learn them, and then it's very hard to say, okay, did we really understand what happens beyond one or two years away from today? Yes, that is always a risk, and we try to be very selective, especially when it comes to assessing the customer side at our targets.

The rest, I think you can fix, but if you acquire something that are start to decline in top line, that's much trickier to fix. The second part of the question is that what we do when we acquire Caston is that we try to get to know their customers.

Me and our VP of UK, we are visiting the customers. We invite them, we want to get to learn the Caston's customers.

That's the biggest and most important integration that we can do. That's what we do, and I think that is something that we have learned over time, that the value of doing this is significant.

If we fail to do that, that's when we are having problems with acquisitions. If we don't get to learn the customers, that's when we're failing.

The rest, we are trying to buy companies that are doing well. We try to buy companies that have a profitability that is fairly much aligned with us.

Caston was doing better, we're not going to push over our way of working into their way of working because they do it really good internally. In this case, we do a very what can I call it, low-intensity integration because we want them to continue as is in many ways.

We just want to get to know their customers and try to see, can we get more out of them by offering the full NOTE offering? Is that answering your questions?

Absolutely. Yeah.

Thank you.

Thank you. Any other questions in the room?

Otherwise, we move on to to to from the web. Then we have one from Jon Hyltner.

"You mentioned that delays in defense were due to products not going through the test phase. Were you referring to test of products you make, or are you referring to other products in the value chain that your customer needs to get through test before the orders are..."

No, this was related purely to our internal production. We we we we don't comment on our customers' ability to get them out on the market when we have delivered.

This is products that we are starting up internally that we have too high high errors in the test system, and then we want customer wants to upgrade the systems rather than to have to increase the test content, if you put it like that. Then we have from Torbjörn at DNB.

"Are the deferrals solely related to testing, or are you also seeing the bottlenecks else in in the production phases? Is this concentrated among one or a few customers or more broadly across defense programs?"

I would say that this is first, I would say that we don't have any bottlenecks when it comes to capacity of producing. I think we have overcapacity in in our in our defense producing facilities.

We can do a lot more. We have prepared ourselves to meet the demand that we see three, four quarters away from today.

We can probably do 50% or more in the in the Security & Defense area from a capacity point of view, so that I don't see any problem whatsoever on. The second question is it's a few customers, and it's a few programs.

It's not it's not all products; it's a few of the programs that we make that we have a significantly reduced output due to due to this. We still expect to deliver these orders in in in the near future.

Again, delays, not not lost sales. Going over to Henning.

"How do you currently evaluate the the Waystream partnership due to their weak financials, apparently poor sales performance, and the possible risk for the Lund plant?" Good question.

Yes, Waystream is a small company, and and we are working together with them to to ensure that we do we have the optimal capital allocation to to run this business as efficiently as we can. We are we are seeing upon them as a very they have very good products, and and I think the position on the market is is strong, and we are also seeing that their order book is is growing in value.

We we're not we're not that concerned. They're still making money.

They're still making positive cash flows. We see the order book for them is is increasing in a good way, not that afraid at the moment, and we evaluate the partnership good.

I I like customers that are moving production back from China to Sweden and and are very clear on that. From that respect, I really think that they are they are leading the way in in the reshoring that we have talked about a lot.

"How large CapEx investment should we expect in 2026?" When it comes to equipment, machines, and others, I think we will invest somewhere in the range of 100 to 125 million Swedish.

Then there will be some building investments that are are are coming on on top of that. I don't have that number in in my head, but in say another 20 million or so, give or take.

Then from Alexander. "Could you please elaborate a bit about Caston's profitability given that it's much higher than your organic profitability?"

Yes, we don't we don't go out with the with the specific numbers, but what we see is that Caston is running a lot of their production in what I call call single-piece flow or one one-piece flow. That means that they have a production setup that is is basically adjusted for customers with with with very small series.

They have a they have a very efficient way of producing this these one to five board series. That is what is driving their profitability, because they are they're very good in something that a lot of companies are not that good in.

Many of our peers wants to make larger series, and then you have a production process that is set up for, say, 100-plus boards in series. Here we do one to five is is the normal batch size.

They have adapted to that way, and they have the so they have a few lines that are running running volume products and they have a few a few lines that are running small series. Their and their way of setting this factory up is very well mirroring their their demand, and that's why they are are performing so well.

They are then on the on on top of that, they're really efficient in what they do, have a high technical competence, so they have a lot of The customers are evaluating their or putting a high value on on on the offering that they do. I would not say that we overprice, I would say that we are that we are aligned with others, but we are significantly more efficient than than what we would have been in if we would have done the same products in in some other of our factories.

They're simply doing it very good. A question from Johan.

"Was Caston consolidated from October 21st, the date the transaction closed? Is Caston included in the order backlog comparison with the with the prior year?"

First question, I think we consolidated Caston from October 1st, we had them in the full quarter. Secondly, I would say no, we were looking like-for-like, I think we put in in the report.

That means that Caston is not in included in the order backlog or they are included in order backlog, but not in not in the 11% up that we see. Then one from Johan.

"How are rising copper pricing affecting your margins? Are you absorbing the increase or passing it through to clients?"

We are running most of our customers with what we call open books. That means that any price increases we see on on the raw material, we will pass on to our customers.

That is how the how this equation is working. The same goes when the price goes down, that we pass those over to the customers as well.

We will pass most of it over to our customers. Then I have one from Grunde.

"Given your investment in Torsby, when do you think that facility will approach full utilization?" I would say hopefully sooner than later, but we have doubled the capacity.

I would say that we we can we are doing around the 1 billion Swedish in sales from the site, and we can probably do 2 to 2.5 at at the moment if we just look at the facility's ability to to to deliver. That our plan is that it should take at least five years until we're there, but when we extended the site in 2021, we expected that to last for five years, and we were run out of space in two years, but that was very strong two years there in '21 and '22.

I don't have an answer. I I I hope that we will extend it again.

We we we bought some land in in the acquisition as well, we can probably double the site from where we are today. When we're there, I would gladly do that as well.

We have a lot of trees as well at the at the moment. No, jokes aside, but no, we we think that we will we will grow we will grow into the into the site gradually over the over the coming years.

It's also, space is a very interesting measurement in in what capacity you have, because normally you run a lot of processes in single shift. Often you run your machines that are expensive, those you run in two or three shifts, but you often run your your your assembly in in one shift; in some odd occasions, you run them in two shifts.

You can say that you can often double your your output just by adding a full shift. There's a space is a very bad measure of that.

Then again, the cost of of of the cost of square meters are often lower than to run, for example, a night shift, so it's often more efficiently or more more cost-efficient to extend the building rather than than to run full night shifts. There's there's also a balance, but I would say that we are we are we're not expecting to run out of space in Torsby in the next five years at least, if I put it like that.

We are expecting to grow into the site very well in the coming, say, two to three years at least. We are expecting good growth for this year, we're expecting even better the year the years to come.

How should I say, the customer's feedback is very positive upon this this this extension. That was my last question I have here.

If there's no more questions from the room, I would, with a few closing remarks, say that we we I think the market is looking better and better. I think we see that the that the demand is slowly, but gradually coming back.

There are, as always, some geopolitical disturbances around, but, those we have learned to live with, as someone that I think I read that in in in Dagens Industri a few days ago, that that is the new normal. Let's just cope with it as best as we can, and and build robust processes to overcome the the the the bottlenecks of this.

I think what we will continue to do is to to is to work with our flexibility, work with our operational performance, continue to to grow relations with customers, and and we are we are expecting this year to be a good step-stone for for for the future to come. We are also showing here that we we continue with our investment program with with extending our capacity for for the for the volumes that we that we are expecting to come.

I also think that the consolidation of the industry will will will will continue, and we have good good what should I say, good hopes that we will do at least one more acquisition for the year. That's what we see.

If there is not any more questions, I I thank everyone for coming. I think it's a new time record with all these questions, but I like I like them, continue with submitting them and ask them.

Thank you for coming, and thank you for listening.