Q1 2026 Systemair AB Earnings Call

August 27, 2026

Speaker #2: This call is being recorded.

Speaker #3: You're line is muted.

Speaker #2: Call recording is on.

Speaker #4: 26, 27. Report presentation. For the first part of the presentation, participants will be in listen-only mode. During the Q&A session, participants are able to ask questions by dialing the pound key 5 on their telephone keypad. Now, I will hand the conference over to the President and CEO, Robert Larson, and CFO, Anders Ulff.

Operator 2: 26-27 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to the President and CEO, Robert Larsson, and CFO, Anders Ulff. Please go ahead.

Operator: 27 August 2026 report presentation. For the first part of the presentation, participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key five on their telephone keypad. Now I will hand the conference over to the President and CEO, Robert Larsson, and CFO, Anders Ulff. Please go ahead.

Speaker #4: Please go ahead.

Speaker #5: Thank you very much. So, this is Robert Larson speaking, and with me, I have Anders Ulff, of course. We are very pleased to have you here.

Robert Larsson: Thank you very much. This is Robert Larsson speaking, and with me I have Anders Ulff, of course. We are very pleased to have you here, and we look forward to first making our presentation and then opening up for the questions and answers. We are now on slide number three. Many of you already know Systemair very well. The company was established in Skinnskatteberg, in 1974 by Mr. Gerald Engström, who today remains as the main owner and Vice Chairman of the Board. During these many years, the company has grown and has now achieved annual net sales of EUR 1.3 billion. Our core values, simplicity and reliability. We develop, manufacture, and market energy efficient, high quality ventilation products. We are proud of our wide product portfolio, and we are determined to meet our customers' expectations on reliability, availability, sustainability, and quality.

Speaker #5: And we look forward to first making our presentation and then opening up for questions and answers. So we are now on slide number 3.

Speaker #5: Many of you already know Systemair very well. The company was established in Skinnskatteberg in 1974 by Mr. Göran Engström, who today remains as the main owner and vice chairman of the board.

Speaker #5: And during these many years, the company has grown and has now achieved annual net sales of €1.3 billion. Our core values are simplicity and reliability. We develop, manufacture, and market energy-efficient, high-quality ventilation products. We are proud of our wide product portfolio, and we are determined to meet our customers' expectations on reliability, availability, sustainability, and quality.

Speaker #5: Today, we run our own sales companies in 51 countries, and our products are available in a total of 135 countries. We have 27 factories in 19 countries, and 7,600 employees.

Robert Larsson: Today, we run our own sales companies in 51 countries and our products are available in totally 135 countries. 27 factories in 19 countries, and 7,600 employees. Slide four, please. Oh, it has changed. Yes. Sorry. In Q1, we are pleased to see continuing growth and improved profitability. This happens in an environment with uncertain geopolitical situation. There is some cost inflation for commodities and freights, and markets that can be described as mixed, or in some cases, I would say even weak. However, we are more and more often receiving signals that may lead to improved market demand in the future. Continuing on financials. In Q1, we report adjusted operating margin of 9.9% or up 0.6 percentage points compared with the same quarter last year. This makes us firmly believe that we have the long-term financial target of 10% well within reach.

Speaker #5: Slide 4, please. Hi, it has changed, yes. Sorry. In Q1, we are pleased to see continuing growth and improved profitability. This happens in an environment with an uncertain geopolitical situation, some cost inflation for commodities and freight, and markets that can be described as mixed or, in some cases, I would say even weak.

Speaker #5: However, we are more and more often receiving signals that may lead to improved market demand in the future. Continuing on financials, in Q1 we report an adjusted operating margin of 9.9%, which is up 0.6 percentage points compared with the same quarter last year.

Speaker #5: This makes us firmly believe that we have the long-term financial target of 10% well within reach. Organic growth is, of course, always appreciated, but it is a bit extra pleasing to see double-digit growth in North America and Eastern Europe.

Robert Larsson: Organic growth is, of course, always appreciated, but it is a bit extra pleasing with double digits growth in North America and Eastern Europe. Our target to strengthen our presence in North America is built on organic growth, well above the average for Systemair Group, and then, if possible, add acquisitions on top of that. In Q1, we were very happy welcoming Temspec employees and customers to Systemair. Today, we also sent out a press release about an order for a data center project in Finland, just like we should do for all larger orders. We see the global and diverse customer base of Systemair as a key strength, and data center business adds to this. The major product release in Q1 was the new Geniox, with integrated heat pump running with a natural refrigerant, making it a future-proof alternative for our customers.

Speaker #5: Our target to strengthen our presence in North America is built on organic growth well above the average for Systemair Group, and then, if possible, add acquisitions on top of that.

Speaker #5: And in Q1, we were very happy to welcome Temspec employees and customers to Systemair. Today, we also sent out a press release about an order for a data center project in Finland.

Speaker #5: Just like we should do for all larger orders, we see the global and diverse customer base of Systemair as a key strength, and the data center business adds to this.

Speaker #5: The major product released in Q1 was the new Geniox with an integrated heat pump running with a natural refrigerant, making it a future-proof alternative for our customers.

Speaker #5: We believe the timing came out quite right for this product. Slide 6, please. From quarter to quarter, we don't expect to see much shift in share between regions. Western Europe is continuing as our largest region with 44%, with the other four regions fairly equal in size. Anders will share more details about the development in each region later.

Robert Larsson: We believe the timing came out quite right for this product. Slide 6, please. From quarter to quarter, we do not expect to see much shift in share between regions. Western Europe is continuing as our largest region with 44%, with the other four regions fairly equal in size. Anders will share more details about the development in each region later. It deserves to repeat it, one strength of Systemair is this global and diversified customer base. This gives us a solid foundation for profit and growth and also high resilience. With that, I hand over to you, Anders.

Speaker #5: It deserves to be repeated: one strength of Systemair is its global and diversified customer base. This gives us a solid foundation for profitable growth and also high resilience.

Speaker #5: With that, I hand over to you, Anders.

Speaker #6: Thank you, Robert, and a very good day to everyone. Our first quarter of the fiscal year 26/27 is covering the months of May, June, and July.

Anders Ulff: Thank you, Robert, and a very good day to everyone. Our first quarter of the fiscal year 2026-2027 is covering the months of May, June, and July. Q1 and especially Q2 are from a seasonality perspective, our strongest quarters of the year. As indicated in our last couple of quarter reports, we can still notice a bit of volatility between the individual months. The quarter started off a little bit slow in May, strong in June, and then more normal in July. Total net sales amounted to SEK 3.28 billion compared to SEK 3.09 billion last year. This corresponds to an increase in sales by 6%. The currency conversion effects were minor during the quarter. We can conclude that for the eighth consecutive quarter, we are reporting organic growth in a relatively slow market, as Robert indicated. Next slide, please. A bit more details on the net sales development.

Speaker #6: Q1, and especially Q2, are from a seasonality perspective our strongest quarters of the year. As indicated in our last couple of quarterly reports, we can still notice a bit of volatility between the individual months.

Speaker #6: The quarter started off a little bit slow in May, strong in June, and then more normal in July. Total net sales amounted to SEK 3.28 billion compared to SEK 3.09 billion last year.

Speaker #6: This corresponds to an increase in sales by 6%. The currency conversion effects were minor during the quarter. We can conclude that, for the eighth consecutive quarter, we are reporting organic growth in a relatively slow market, as Robert indicated.

Speaker #6: Next slide, please. A bit more detail on the net sales development. We are happy to conclude on organic growth in all regions during the quarter.

Anders Ulff: We are happy to conclude on organic growth in all regions during the quarter. We completed the acquisition of Temspec in Canada on 23 July, but it will impact the income statement of the group with stock from August. The acquisition of NADI Airtechnics one year ago contributed 1% to net sales for the quarter. Finally, currency effects. The strengthened Swedish krona resulted in a negative effect on sales by -1%. These effects come from several currencies, but the major part relates to the conversion of Turkish lira, Canadian dollars, and Indian rupees. Next slide, please. Then we come to geographical breakdown, and I will comment on the organic growth rates here for each region. Starting with the Nordics, where we are happy to conclude on 8% growth in the quarter.

Speaker #6: We completed the acquisition of Temspec in Canada on the 23rd of July, but it will impact the income statement of the group starting from August.

Speaker #6: The acquisition of Nadi, one year ago, contributed 1% to net sales for the quarter. And then, finally, currency effects: the strengthened Swedish krona resulted in a negative effect on sales by minus 1%.

Speaker #6: These effects come from several currencies, but the major part relates to the conversion of Turkish lira, Canadian dollars, and Indian rupees. Next slide, please.

Speaker #6: Then we come to the geographical breakdown, and I will comment on the organic growth rates here for each region. Starting with the Nordics, where we are happy to conclude on 8% growth in the quarter.

Speaker #6: Sales in Sweden saw the greatest improvement, but all countries in that region had positive development in the quarter. Western Europe, our single largest region, had an organic growth of 3% for the quarter. Within the region, we experienced positive development, especially in Italy, Greece, and Ireland.

Anders Ulff: Sales in Sweden saw the greatest improvement, but all countries in that region had positive development in the quarter. Western Europe, our single largest region, had an organic growth of 3% for the quarter. Within the region, we experienced a positive development, especially in Italy, Greece, and Ireland. In Eastern Europe, we had again a very strong organic growth of 11%. Sales were especially strong in Czech Republic, Poland, Azerbaijan, and Serbia. We come to North America, where we saw the highest organic growth rate of 15%. We have experienced several changes in the tariffs between Canada and US recently, leading to price increases, which explains part of this increase. From the beginning of April, the tariffs were increased to 25% of the total product value, but start of June, they were revised to 15% for most products.

Speaker #6: In Eastern Europe, we again had very strong organic growth of 11%. Sales were especially strong in the Czech Republic, Poland, Azerbaijan, and Serbia. Then we come to North America, where we saw the highest organic growth rate of 15%.

Speaker #6: We have experienced several changes in the tariffs between Canada and the US recently, leading to price increases, which explains part of this increase. From the beginning of April, the tariffs were increased to 25% of the total product value, but at the start of June, they were revised to 15% for most products.

Speaker #6: Our conclusion is that the latest change here from Section 338 will have a minor impact on our sales. Our ambition is still to forward any additional tariffs further on.

Anders Ulff: Our conclusion is that the latest change here from Section 338 will have a minor impact on our sales. Our ambition is still to forward any additional tariffs further on. The acquisition of Temspec will affect the group accounts then starting from 1 August. In Middle East, Asia, Australia, and Africa, we had an organic growth in sales of 4%. We experienced a quarter with good sales development in Australia and Malaysia, but slower in Turkey and Saudi. All in all, the total organic growth amounted to 6%. Next slide. Our gross margin showed a slight improvement up to 36.5%. We see this as a sign of strength considering the recent price increases on several components and freight. As earlier communicated, we have introduced a price increase from 1 June. Overall, we are happy to see yet another quarter with strong gross margin.

Speaker #6: The acquisition of Temspec will affect the group accounts starting from August 1st. In the Middle East, Asia, Australia, and Africa, we had organic sales growth of 4%.

Speaker #6: We experienced a quarter with good sales development in Australia and Malaysia, but slower in Turkey and Saudi Arabia. All in all, the total organic growth amounted to 6%.

Speaker #6: Next slide. Our gross margin showed a slight improvement, up to 36.5%. We see this as a sign of strength, considering the recent price increases on several products. As earlier communicated, we have introduced a price increase from the 1st of June.

Speaker #6: Overall, we are happy to see yet another quarter with a strong gross margin. Our adjusted operating profit amounted to 324 million, or an operating margin of 9.9%, which is 0.6% above Q1 last year.

Anders Ulff: Our adjusted operating profit amounted to SEK 324 million, or an operating margin of 9.9%, which is 0.6% above Q1 last year. The adjustments in this quarter relates to our US operation and amounts to -SEK 13 million. Selling and admin expenses in comparable units increased by 5%. Next slide. Profit after tax amounted to SEK 229 million compared to SEK 193 million last year. Net financial items for the quarter were negative by -SEK 5 million. Currency effects on bank balances and loans were positive and amounted to SEK 7 million, and interest expenses were -SEK 9 million compared to SEK 12 million last year. The tax rate for the quarter came in at 25.2% compared to 27.3% last year's same quarter. Then slide number 11, cash flow development for the quarter. We achieved a free cash flow of SEK 69 million compared to SEK 108 million last year.

Speaker #6: The adjustments in this quarter relate to our US operation and amount to minus $13 million. Selling and admin expenses in comparable units increased by 5%.

Speaker #6: Next slide. Profit after tax amounted to SEK 229 million, compared to SEK 193 million last year. Net financial items for the quarter were negative by SEK 5 million.

Speaker #6: Currency effects on bank balances and loans were positive, and amounted to SEK 7 million. Interest expenses were minus SEK 9 million, compared to SEK 12 million last year.

Speaker #6: The tax rate for the quarter came in at 25.2%, compared to 27.3% in the same quarter last year. And then, slide number 11: cash flow development for the quarter.

Speaker #6: We achieved a free cash flow of 69 million, compared to 108 million last year. Within the working capital, there was a significant increase in trade receivables of 173 million, due to the increased sales, especially at the end of the quarter.

Anders Ulff: Within the working capital, there was a significant increase in trade receivables of SEK 173 million due to the increased sales, especially at the end of the quarter. Also, our inventory increased, affecting working capital negatively with SEK 113 million. The increase of inventory is due to higher safety stock of certain components. Net investments of SEK 114 million relates to production capacity investment made in Slovakia and Sweden. Our net debts increased to SEK 1.1 billion, which is SEK 270 million higher than one year ago, and the reason being is the acquisition of Temspec that has increased the debts. The leverage, net debt to adjusted EBITDA amounts to 0.65, and we have a strong balance sheet that enables us to further invest in organic and acquired growth. Then slide number 12, sustainability targets.

Speaker #6: Also, our inventory increased, affecting working capital negatively by 113 million. The increase in inventory is due to higher safety stock of certain components. Net investments of 114 million relate to production capacity investments, mainly in Slovakia and Sweden.

Speaker #6: Our net debts increased to SEK 1.1 billion, which is SEK 270 million higher than one year ago. The reason is the acquisition of Temspec, which has increased the debts.

Speaker #6: The leverage net debt to adjusted EBITDA amounts to 0.65, and we have a strong balance sheet that enables us to further invest in organic and acquired growth.

Speaker #6: And then, slide number 12: sustainability targets. For Scope 1 and 2 emissions, we are targeting a reduction of 42% by April 2031, compared to the starting point in April 2024.

Anders Ulff: On Scope 1 and 2 emissions for a reduction of 42% by April 2031 compared to the starting point in April 2024. in Q1, we achieved a reduction of 11% compared to the base year. We have continued to install solar panels, and in this quarter we achieved a record solar power generation with an increase of 17%. Our actions to reduce work-related injuries are continuing to be successful, and we achieved a 6% reduction in the quarter. Then finally, our target to achieve a minimum of 25% female leaders. We are currently on 23.2%, and we will continue to launch different activities to improve this KPI. One example is the female mentorship program that was just finalized before summer, and the new one is planned for the fall. By that, I hand over to you, Robert, to finalize the presentation.

Speaker #6: In Q1, we achieved a reduction of 11% compared to the base year. We have continued to install solar panels, and in this quarter, we achieved a record solar power generation with an increase of 17%.

Speaker #6: Our actions to reduce work-related injuries continue to be successful, and we achieved a 6% reduction in the quarter. And then finally, our target is to achieve a minimum of 25% female leaders.

Speaker #6: We are currently at 23.2, and we will continue to launch different activities to improve this KPI. One example is the female mentorship program that was just finalized before summer, and a new one is planned for the fall.

Speaker #6: And with that, I hand over to you, Robert, to finalize the presentation.

Speaker #1: Thank you. I switched to slide 13. So, Systemair acquired Temspec Incorporated on July 23rd, and in the picture you see Steve, who is to the left, running our North American business, and Mark, who is on the right side, of course, who is the Temspec president and second-generation owner.

Robert Larsson: Thank you. I switch to slide 13. Systemair acquired Temspec Incorporated on 23 July. On the picture, you see Steve, who is to the left, who is running our North American business, and Mark, who is on the right side, who is the Temspec President and second-generation owner. Temspec is a leading manufacturer of decentralized ventilation solutions for multi-family, residential buildings, and schools. Just like Systemair, the company has a strong company culture based on customer focus and entrepreneurial spirit. The product portfolio is focused on energy efficiency and low noise performance, addressing two key market trends in indoor environment quality. This is a well-established business, founded in 1971, headquartered and manufacturing location in Mississauga, close to Toronto in Canada.

Speaker #1: Temspec is a leading manufacturer of decentralized ventilation solutions for multifamily residential buildings and schools. And just like Systemair, the company has a strong company culture based on customer focus and entrepreneurial spirit.

Speaker #1: The product portfolio is focused on energy efficiency and low-noise performance, addressing two key market trends in indoor environment quality. This is a well-established business, founded in 1971, with its headquarters and manufacturing location in Mississauga, close to Toronto in Canada.

Speaker #1: The company has about 90 employees and annual sales of approximately $200 million, with an EBIT margin above the Systemair Group average. At Systemair, we have recently improved how we operate our sales and marketing in North America, and the Temspec acquisition is now benefiting from this. There are plenty of growth opportunities as we see it.

Robert Larsson: The company has about 90 employees and annual sales of approximately SEK 200 million, and with the EBIT margin above Systemair Group average. At Systemair, we have lately improved how we operate our sales and marketing in North America, and the Temspec acquisition is now benefiting from this, and there are plenty of growth opportunities as we see it. Next slide, please. The launch in June of the Geniox air handling unit with integrated heat pump running with propane or R290, as it is called, as a refrigerant, is a step up in value for our customers. It continues to be a product that is easy to configure and buy, easy to install, easy to operate and maintain. Now, in addition, it is future-proof for our customers since it contains a natural refrigerant, it is PFAS free, and it is also an improvement in efficiency.

Speaker #1: Next slide, please. The launch in June of the Geniox Air Handling Unit with integrated heat pump, running with propane, or R290 as it's called, as a refrigerant, is a step up in value for our customers.

Speaker #1: It continues to be a product that is easy to configure and buy, easy to install, and easy to operate and maintain. And now, in addition, it is future-proof for our customers, since it contains a natural refrigerant, it is PFAS-free, and it is also an improvement in efficiency.

Speaker #1: We also changed how we introduce new products to the local markets. It is now more orchestrated. Our local sales organization is really receiving better support, and with this orchestrated approach, they can better share learnings and experiences, and ultimately create more of a tailwind for each other.

Robert Larsson: We also changed how we introduced the new product to the local markets. It is now more orchestrated. Our local sales organizations are receiving better support, and with this orchestrated approach, they can better share learnings and experiences and ultimately create more of a tailwind for each other. Slide 15. Our opportunities in Saudi have continued to materialize after expanding our manufacturing presence. Ceer is a fairly new electric car brand in Saudi, and they are well-funded and very determined to build a strong position in the region. Currently, we are winning business due to the Made in Saudi status we have now, and it helps a lot. At the same time, we are facing challenges with logistics due to the war continuing in the region. Slide 16, please.

Speaker #1: Slide 15. Our opportunities in Saudi have continued to materialize after expanding our manufacturing presence. CEER is a fairly new electric car brand in Saudi, and they are well-funded and very determined to build a strong position in the region.

Speaker #1: Currently, we are winning business due to the Made in Saudi status we have now, and it helps a lot. At the same time, we are facing challenges with logistics due to the war continuing in the region.

Speaker #1: Slide 16, please. As already mentioned, today we sent out a press release about an order for a data center project in Finland, just like we should do for all larger orders.

Robert Larsson: As already mentioned, we today sent out this press release about an order for a data center project in Finland, just like we should do for all larger orders. We see the global and diverse customer base as a key strength for Systemair. You heard this already. A bit more of data center business would be a welcome addition. This project demonstrates that we can develop relationships with global and very demanding customers, and that the products we offer are competitive. In our product portfolio, we have a lot of ventilation products that are needed also in data centers. We have also some derivative products intended for data centers, but we have not seen that we should invest in very specific technologies or products only for use in data center applications. With this, we conclude our presentation and look forward to answering your questions.

Speaker #1: We see the global and diverse customer base as a key strength for Systemair—you've already heard this. And a bit more of data center business would be a welcome addition.

Speaker #1: This project demonstrates that we can develop relationships with global and very demanding customers, and that the products we offer are competitive. In our product portfolio, we have a lot of ventilation products that are also needed in data centers.

Speaker #1: We also have some derivative products intended for data centers, but we have not seen that we should invest in very specific technologies or products only for use in data center applications.

Speaker #1: With this, we conclude our presentation and look forward to answering your questions.

Speaker #2: If you wish to ask a question, please dial #Key5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial #Key6 on your telephone keypad.

Operator 2: If you wish to ask a question, please dial #5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial #6 on your telephone keypad. The next question comes from Lara Mohtadi from ABG Sundal Collier. Please go ahead.

Operator: If you wish to ask a question, please dial #5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial #6 on your telephone keypad. The next question comes from Lara Mohtadi from ABG Sundal Collier. Please go ahead.

Speaker #2: The next question comes from Lara Motadi from ABG Sundal Collier. Please go ahead.

Speaker #3: Good afternoon, Robert and Anders. You gave a monthly split for Q1: slow on May, strong June, more normal July. How has August developed?

Lara Mohtadi: Good afternoon, Robert and Anders. You gave a monthly split for Q1, slow on May, strong June, more normal July. How has August developed?

Robert Larsson: That we didn't say, really. We do not have as a strategy to disclose that at this point. So I don't have any comment on August figures.

Anders Ulff: That we didn't say, really. We do not have as a strategy to disclose that at this point. So I don't have any comment on August figures.

Speaker #4: That we didn't say, really. And I don't think we have — do not have — as a strategy to disclose that at this point. So I don't have any comment on August figures.

Speaker #3: Okay. Yeah. And on the gross margin, May was the one month without the price increases in place. Should we expect that to show, maybe, or are input costs still moving?

Lara Mohtadi: Okay. On the gross margin, May was the one month without the price increases in place. Should we expect that to show, or are input costs still moving?

Speaker #4: Yeah, I think input costs are still moving, and also, when we announced the price increase from the 1st of June, there's a bit of a lag in that implementation also.

Anders Ulff: Yeah. I think input costs are still moving, and also when we announce the price increase on 1 June, there is a bit of lag in that implementation also before it reaches all customers also depending on what kind of agreements and what kind of products we are talking about. So, yeah. It is a bit of a lag there as well.

Speaker #4: Before it reaches all customers, it also depends on what kind of agreements and what kind of products we are talking about. So, there's a bit of a lag there as well.

Speaker #3: Okay. And just a bit on the market: Western Europe still reported positive organic growth, but it slowed a bit to 3% this quarter.

Lara Mohtadi: Okay. Just a bit on the market, Western Europe, you still reported positive organic growth, but it slowed a bit to 3% this quarter. Germany wasn't mentioned as a strong geography or recovering geography this quarter. You were cautiously positive last quarter. Would you say that the German market has turned or is it maybe the sales and service restructuring that is weighing the momentum here?

Speaker #3: Germany wasn't mentioned as a stronger geography or recovering geography this quarter. You were cautiously positive last quarter. Would you say that the German market has turned, or is it maybe the sales and service restructuring is perhaps weighing on the momentum here?

Speaker #4: Oh, thank you. No, this is Robert here. Well, I don't feel worried about the German market. I think we are receiving a lot of, let's say, interest from our customers also going forward.

Robert Larsson: Well, thank you. This is Robert here. I don't feel worried about the German market. I think we are receiving a lot of, how to say, interest from our customers also going forward. Sometimes, I think there is a bit of up and down in the market and so on. To repeat, I don't see any concerns, and I don't for going forward. I don't think that restructuring has had an impact on these numbers. Would you comment any more on that one, Anders?

Speaker #4: Sometimes, let's say, I think there is a bit of up and down in the markets and so on. But to repeat, I don't see any concerns.

Speaker #4: And I don’t—for going forward, I don’t think that restructuring has had an impact on these numbers. Would you comment any more on that one, Anders?

Anders Ulff: Yeah, I think a little bit the message we wanted to send through here really with the demands being a little bit up and down, really. That also goes for a single quarter then. I think what you see here in Q1 is maybe not a shift in trend. We see the same signals as before in the market, and we have a fairly good demand in the market where we are present.

Speaker #5: No, I think a little bit, the message we wanted to send through here really, with the months being a little bit up and down, really.

Speaker #5: And that also goes for a single quarter, then. So I think what you see here in Q1 is maybe not a shift in trend.

Speaker #5: We see the same signals as before in the market, that we have fairly good demand in the markets where we are present. So, yeah.

Lara Mohtadi: Also, you mentioned the Finland order, and you said there is a bit more data center business that would be of a welcome addition. Could you maybe size that opportunity for us and maybe just quantify how large a part of the revenues data centers stand for today?

Speaker #3: Also, you mentioned Finland, or then you said there’s a bit more data center business—that would be a welcome addition. Can you maybe size that opportunity for us, and maybe just quantify how large a part of the revenues data centers stand for today?

Speaker #4: I can start, and then maybe you can add to the comments later on. Well, today, let's say data centers are not a significant business in Systemair.

Robert Larsson: I can start, and then maybe you add to the comments later on. Well, today, let's say data center is not a significant business in Systemair, I would say, from a size point of view. But having a broad customer base and being exposed to many different industries, it is healthy for us. We are happy to see that we are competitive, we have something interesting to offer. Then, of course, we may have more, there might be more, or you may see more of these orders going forward, but I still think it is not a change in strategy that we intend to make this a significant portion of Systemair. That is not what we try to communicate. Would you add something, Anders?

Speaker #4: I would say from a size point of view, but having a broad customer base and being exposed to many different industries is healthy for us.

Speaker #4: So we are happy to see that we are competitive. We have something interesting to offer. And then, of course, we may have more kind of there might be more or you may see more of these orders going forward, but I still think it's going to not go it's not a change in strategy that we intend to make this a significant portion of Systemair.

Speaker #4: That's not what we are trying to communicate.

Speaker #1: Would you add something, Anders?

Anders Ulff: I think that is spot on. We have sold products now and then into the data center industry for 10 years or so, but we have not really developed a new part or product portfolio, especially for that purpose outside of our core of ventilation, I would say.

Speaker #5: I think that's spot on. I mean, we have sold products now and then into the data center industry for 10 years or so, but we have not really developed a new part of the product portfolio, especially for that purpose.

Speaker #5: Outside of our core of ventilation, I would say.

Speaker #3: Okay. And Robert, you said that you're more and more often receiving signals that may lead to improved market demand. Could you maybe just be a bit more concrete about what these signals actually are?

Lara Mohtadi: Robert, you said that you are more and more often receiving signals that may lead to improved market demand. Could you maybe just be a bit more concrete about what these signals actually are? Is it maybe quotation activity or project pipelines? Maybe just talk a bit about which regions or segments that you see these developments.

Speaker #3: Is it maybe a quotation activity or project pipelines? And could you maybe talk a bit about which regions or segments you see these developments in?

Speaker #4: No, I don't want to quantify this in any way, but it is kind of clear that in some of the markets where we have seen very low, or even extremely low, market activity, we have the opinion that the, let's say, the actors—

Robert Larsson: No, I do not want to quantify in a way, but it is clear that in some of the markets where we have seen very low or even very low market activities, we have the opinion that the, let us say, the actors very early in the value chain, that could be consultants or architects, they seem to be working a bit more organized and firm on projects now than before. Still, it will take time before that materializes. That would be my comment.

Speaker #4: Very early in the value chain—that could be consultants or architects. They seem to be working a bit more organized and firm on projects now than before.

Speaker #4: Still, it will take time before that materializes. So, that would be my comment.

Speaker #3: Okay, that was very clear, and that's all from my end. Thank you very much.

Lara Mohtadi: Okay. That was very clear and that is all from my end. Thank you very much.

Speaker #4: Thank you.

Robert Larsson: Thank you.

Speaker #2: The next question comes from Jakob Marken from SEB. Please go ahead.

Operator 2: The next question comes from Jakob Marken from SEB. Please go ahead.

Operator: The next question comes from Jakob Marken from SEB. Please go ahead.

Speaker #1: Yes. Hello, guys, and thank you for taking my questions. Firstly, you mentioned some negative effects on cash flow from building safety stock, and I'm wondering, in general, how do you see the current component situation? Can you elaborate a bit more on how you see it in the different geographies?

Jakob Marken: Yes, hello guys, and thank you for taking my questions. Firstly, you mentioned some negative effects on the cash flow from building safety stock, and I am wondering in general, how do you see the current component situation, and can you elaborate a bit more on how you see it in the different geographies?

Speaker #4: I didn't really catch the final part of your question there. There was something with the...

Robert Larsson: I did not really catch the final part of your question there. There was something with the

Speaker #1: If you can, also say if there are any differences in the different geographies.

Jakob Marken: If you can also say if there are any differences in the different geographies.

Speaker #4: In general, we have, let's say, from time to time, we experience that we have to do replanning and so on.

Robert Larsson: In general, we have, let's say, from time to time, we experience that we have to do replanning and so on. I think it is at the level, let's say, component supply, it is causing some irritation, but I wouldn't say that it is damaging. Could be that things get more challenges ahead of us. We don't know that. I'm really happy to see how the organization is managing this, because our ultimate target is to provide excellent service to our customers. I don't see that we really have a regional perspective on this. It's certain components that there is shortage of. And of course, prices for aluminum and copper has been very volatile lately. That has been a bit challenging to manage, but seems to be, I wouldn't say under control because it's not under our control, but we're managing it quite well.

Speaker #4: I think it is at a level, let's say with component supply, where it is causing some irritation, but I wouldn't say that it is damaging. It could be that things kind of get more challenging ahead of us.

Speaker #4: We don't know that. I'm really happy to see how the organization is managing this, because our ultimate target is to provide excellent service to our customers.

Speaker #4: I don't see that we really have a regional perspective on this. It's certain components that are short, that there is a shortage of. And of course, prices for aluminum and copper have been very volatile lately.

Speaker #4: That has been kind of a bit challenging to manage, but it seems to be—I wouldn't say under control, because it's not under our control—but we are managing it quite well.

Speaker #4: So, I'm happy with how the organization is responding.

Robert Larsson: I'm happy with how the organization is responding.

Speaker #1: Thank you, perfect. And then I'm just wondering about the recent acquisition that you also mentioned here. If you can just tell us if there's any large seasonality that we should know about.

Jakob Marken: Okay, perfect. I'm just wondering about the recent acquisition that you also mentioned here, if you can just tell us if there's any large seasonality that we should know about.

Speaker #4: Would you start commenting on that, Anders?

Robert Larsson: Would you start commenting on that, Anders?

Speaker #5: Seasonality related to Tempspec. Yeah.

Anders Ulff: Seasonality related to Temspec?

Robert Larsson: Yeah.

Anders Ulff: Yeah.

Speaker #1: Yeah.

Jakob Marken: Yeah.

Speaker #5: Well, a significant part of the products relates to where we are already present, meaning ventilation for schools. So, indoor ventilation units—and there is a seasonality in that, because most of them are installed during the summer period.

Anders Ulff: Well, a significant part of the products relates to where we are already present, meaning ventilation for schools, so indoor ventilation units. There is a seasonality in that because most of them are installed during the summer period, so lower season when it comes to December, January, and then ramping up production for installation during summer months.

Speaker #5: So lower season when it comes to December, January, and then ramping up production for installation during summer months.

Speaker #1: Okay, perfect. That's very clear. And then my last question: I'm just wondering, there's quite a large shift here in organic growth in the Nordics, and you mentioned Sweden, of course, as the standout.

Jakob Marken: Okay, perfect. That is very clear. My last question, I am just wondering, quite large shift here in organic growth in the Nordics, and you mentioned Sweden, of course, as the standout, but can you give any more examples of specific end markets that have turned and what you see from Q4 here into Q1 and what has been the big drivers for the positive numbers?

Speaker #1: But can you give any more examples of specific end markets that have turned, and what you see from Q4 here in Q1? And what's been the big driver for the positive numbers?

Speaker #4: Do you mean specifically for the Nordics, or?

Robert Larsson: Do you mean specifically for the Nordics?

Speaker #1: Yeah, for the Nordics.

Jakob Marken: Yeah, for the Nordics.

Speaker #4: No, I think I'm happy with how the organization is performing across the Nordics—all our sales organizations. And I think Anders phrased it well.

Robert Larsson: No, I think I am happy with how the organization is performing across the Nordics, all our sales organizations. I think Anders phrased it well. We are seeing very good development. You also know that we have made some efforts in changing how we operate and also leadership there. I think, to some extent, what we see is the impact from our own activities.

Speaker #4: We are seeing very good development. But you also know that we have made some efforts in changing how we operate and also leadership there.

Speaker #4: So, I think to some extent what we see is the impact from our own activities.

Speaker #1: Okay. So, would you say it's a very broad-based recovery, then, in the Nordics?

Jakob Marken: Okay, so would you say it is a very role-based recovery then in the Nordics?

Speaker #4: I would say so.

Robert Larsson: I would say so.

Speaker #1: Okay, perfect. Thank you. That was all from me. I'll get back in line.

Jakob Marken: Okay. Perfect. Thank you. That was all from me. I will get back in line.

Speaker #2: The next question comes from Adela Dashian from Jefferies. Please go ahead.

Operator 2: The next question comes from Adela Dashian from Jefferies. Please go ahead.

Operator: The next question comes from Adela Dashian from Jefferies. Please go ahead.

Speaker #3: Good afternoon, gentlemen. Just a few from me as well. If we go back to the data center topic—the order that you received—or maybe if we could start with the commentary around not wanting to, I guess, invest heavily into expanding your capabilities beyond what you already have in the data center space.

Adela Dashian: Good afternoon, gentlemen. Just a few from me as well. If we go back to the data center topic, the order that you received, or maybe if we could start with the commentary around not wanting to, I guess, invest heavily into expanding your capabilities beyond what you already have in the data center space. How comprehensive is the current product offering? Is it very much so, or entirely air handler based, or can you also go into, I guess, you would say the next gen data centers and become more liquid cooling compliant?

Speaker #3: How comprehensive is the current product offering? Is it very much show or entirely air handler-based, or can you also go into, I guess you would say, the next-gen data centers and become more liquid cooling?

Speaker #3: Compliance?

Speaker #4: Okay, thank you for that question. We are, let's say, very proud of our broad product portfolio targeting ventilation. Some of these are very useful for data center applications also.

Robert Larsson: Okay. Thank you for that question. Let's say we are very proud of our broad product portfolio targeting ventilation. Some of these are very useful for data center applications also. I said also before that we have a few derivative product that is a bit tweaked towards what data center applications and customers expect. We do not have specific technologies, or we have selected not to develop specific technologies and so on. I think we stick with that one. We believe that this is a healthy expansion of our, let's say, it is a healthy part of our product portfolio, and we are happy to announce larger orders whenever we get them. For us, 60 million SEK is a fairly large order. It is not a change in strategy.

Speaker #4: And as said, also before that, we have a few derivative products that are a bit tweaked towards what data center applications and customers expect.

Speaker #4: But we do not have specific technologies, or we have chosen not to develop specific technologies, and so on. So, I think we stick with that one.

Speaker #4: We believe that this is a healthy expansion of our—let's say it's a healthy part of our product portfolio. And we are happy to announce larger orders whenever we get them.

Speaker #4: And for us, SEK 60 million is a fairly large order, so it's not a change in strategy.

Speaker #3: Thanks for that. But are you able to be a bit more specific here? When you say ventilation products, are you able to dive into liquid cooling at all, or is that not really something that complies with your focus?

Adela Dashian: Thanks for that. Are you able to be a bit more specific here? When you say ventilation products, are you able to dive into liquid cooling at all, or is that not really something that complies with your focus?

Speaker #4: I would say that liquid cooling is not really a ventilation product.

Robert Larsson: I would say liquid cooling is not really a ventilation product.

Speaker #3: Yeah, that's what I was thinking. Great. Moving on to North America, or US versus Canada, the current debate. I appreciate the comments here about offsetting tariffs with price increases and expectations of this having—or the recent topics.

Adela Dashian: Yeah, that is what I was thinking. Great. Moving on to North America or US versus Canada, the current debate. Appreciate the comments here about offsetting tariffs with price increases and expectations of this happening or the recent topics having a minor effect going forward. Could you please remind us of your current production footprint in that region specifically?

Speaker #3: Having a minor effect going forward, but could you please remind us of your current production footprint, in that region specifically?

Speaker #5: The production footprint in North America was the question, or?

Robert Larsson: Production footprint in North America was the question, or?

Anders Ulff: Production footprint in North America was the question, or?

Speaker #3: Yes, correct. Because I believe you do have production both in the US and Canada, and you do use both for deliveries in either.

Adela Dashian: Correct. Because I believe you do have production both in the US and Canada, and you do use both for deliveries in either.

Speaker #5: Yeah. Actually, now we have three factories in Canada with the Tempspec addition, and also a factory in Kansas City in the US as well.

Anders Ulff: Yeah, actually now we have three factories in Canada with the Temspec addition there, but also a factory in Kansas City in the US also. I think we commented on that already in the past, that we have moved smaller volumes of production into US also, and that was planned already before the implementation of the tariffs. But we are considering if we should move more or not really, but we don't take any hasty decisions here. We would like to see how this develops and things are changing quite quick in this area right now. But we have the possibility. But you need to build up the competence, and you need to have the production capacity there. But the factory is there, and we are able to do it.

Speaker #5: And I think we have commented on that already in the past, that we have moved smaller volumes of production into the US as well. And that was planned already before the implementation of the tariffs.

Speaker #5: But we are considering if we should move more or not, really, but we don't take any hasty decisions here. We would like to see how this develops.

Speaker #5: And things are changing quite quickly in this area right now. But we have the possibility. But you need to build up the competence, and you need to have the, yeah, the production capacity there.

Speaker #5: But the factories are there, and we are able to do it.

Speaker #3: Okay, so you’re quite flexible there. That’s good to hear. And then, lastly, you commented more specifically about the cash flow development in the quarter.

Adela Dashian: Okay, so you're quite flexible there. That's good to hear. Lastly, you commented more specifically about the cash flow development in the quarter, and the component situation, and the build-up of safety stock. Do you think this is more a one-off in this current quarter, or do you feel the need to continue this strategy, I guess, in the coming quarters?

Speaker #3: And regarding the component situation and the build-up of safety stock, do you think this is more of a one-off in the current quarter, or do you feel the need to continue this strategy in the coming quarters?

Speaker #5: When it comes to trade receivables, I see that we peaked at the end of, or the second half of, the quarter.

Anders Ulff: When it comes to the trade receivables, I see that we peaked at the end of the, or the second half of the quarter, so that's more related to the volatility, I would say, on that. The inventories then and the safety stocks, that's a little bit harder to say right now because it's a difficult situation, what is happening to the freight situation in general and the prices of products and so on. But I would say in general, for the more important components like fans and so on, for us, the delivery time is very long right now. So the planning horizon is long. So it's hard to have a visibility on where this will go from here, really. Also we have seen some individual problems for separate suppliers and so on.

Speaker #5: So that's more related to the volatility, I would say, in the inventories than the safety stocks. That's a little bit harder to say right now because it's a difficult situation with what is happening to the freight situation in general, and the prices of products, and so on.

Speaker #5: But I would say, in general, for the more important components like fans and so on for us, the delivery time is very long right now.

Speaker #5: So the planning horizon is long, so it's hard to have visibility on where these will go from here, really. And also we have seen some individual problems for separate suppliers and so on.

Speaker #5: So we need to just monitor the situation and try to make sure we don't have a huge problem, building up a little bit of safety stock for a while.

Anders Ulff: We need to just monitor the situation and try to. We don't have a huge problem building up a little bit safety stock for a while. I guess that's the conclusion.

Speaker #5: I guess that's the conclusion.

Speaker #3: Yeah, I guess that was going to be a follow-up to that question. You mentioned here that we are facing delivery challenges with fans. Is there any other area that you're seeing shortages at this point?

Adela Dashian: I guess that was going to be a follow-up to that question. You mentioned here that we are facing delivery challenges with fans. Is there any other area that you're seeing shortages at this point?

Speaker #4: Yeah, no, I think Anders correctly put it away. Kind of the planning horizon is really long, and sometimes we need to do replanning. But I wouldn't say that we are facing, kind of, we are still, let's say, happy—"happy" is a strong word—but kind of, we still put focus on servicing our customers.

Robert Larsson: Yeah. No, I think Anders correctly put it away. The planning horizon is really long. Sometimes we need to do replanning, but I wouldn't say that we are facing. We are still, let's say, happy. Happy is a strong word, but we still put focus on servicing our customers. I think that is our top priority, and I hope that really that we will continue to do that. Yes, sure, there are other components also, but it goes very far and into very small details then.

Speaker #4: I think that's very—that is our top priority. And I think we will—I hope that really, we will continue to do that.

Speaker #4: Yes, sure, there are other components also, but it goes very far and into very small details then.

Speaker #3: And when you say the planning horizon is longer, are we talking about weekly delays, monthly delays—like, what does it look like at this stage?

Adela Dashian: When you say the planning horizon is longer, are we talking about weekly delays, monthly delays? What does it look like at this stage?

Speaker #4: No, I didn't specifically mention the delays. Let's say the lead times have increased a lot, so that means that the planning horizon is long as well.

Robert Larsson: No, I didn't specifically mention the delays. I said the lead times has increased a lot, so that means that the planning horizon is long also.

Speaker #3: All right. Thanks.

Adela Dashian: All right. Thanks.

Speaker #1: The next question comes from Anders Akerblom from Nordea. Please go ahead.

Operator 2: The next question comes from Anders Åkerblom from Nordea. Please go ahead.

Operator: The next question comes from Anders Åkerblom from Nordea. Please go ahead.

Speaker #5: Yeah. Hi Robert and Anders, thanks for the presentation. It's Anders here. I first wanted to ask about—so, the other week we got this announcement about EBM Pops being acquired by Madison Air.

Anders Åkerblom: Yeah. Hi, Robert and Anders. Thanks for the presentation. It's Anders here. I first wanted to ask about, so the other week we got this announcement about ebm-papst being acquired by Madison Air Solutions. I know it's early stage, but do you have any sort of view on what the potential impact on, say, supplier availability in that market will be as a result of that?

Speaker #5: I know it's early stage, but, I mean, do you have any sort of view on what the potential impact on, say, supplier availability in that market will be as a result of that?

Speaker #4: Okay. That's a good question. We know EBM as a competent and long-term supplier to us. I think we have both benefited from this long-term relationship.

Robert Larsson: Okay, that is a good question. We know ebm-papst as a competent, a long-term supplier to us. I think we have both benefited from this long-term relationship. We have also heard from ebm-papst that they will continue to operate the company, honoring customers agreements and all of these things. We are very happy with that. Of course, we have many suppliers, but ebm-papst is definitely an important one.

Speaker #4: We have also heard from EBM that they will continue to operate the company and serve online customers, agreements, and all these things. So we're very happy with that.

Speaker #4: Of course, we have many suppliers, but EBM is definitely an important one. The rest—let’s say we still have almost six months to go before this deal would close.

Anders Åkerblom: Okay.

Robert Larsson: The rest, let us say we have still almost 6 months to go before the deal would close, and a lot can happen, of course, but this is what we know for now.

Speaker #4: And a lot can happen, of course, but this is what we know for now.

Speaker #5: Okay. No. That makes sense. Thank you for the answer. The other question I wanted to ask, and not to challenge you on this, but I thought sort of the guidance seemed quite confident on the 10% EBIT margin target sort of being well within reach.

Anders Åkerblom: Okay. No, that makes sense. Thank you for the answer. The other question I wanted to ask, and not to challenge you on this, but I thought the guidance seemed quite confident on the 10% EBIT margin target being well within reach. Obviously, to some extent, you have incorporated the expectations of supply chain inflation and potential margin compression from that. Obviously, you have raised prices to compensate, but if that inflation does not come through in the way you are seeing now, also from a tariff perspective, is it fair to say that there should be upside in that margin target then at 10%? Did you get my question? Sorry for the long elaboration. I hope you get my question.

Speaker #5: I mean, obviously, to some extent, you've incorporated the expectations of supply chain inflation and potential margin compression from that. Obviously, you've raised prices to compensate, but, I mean, if that inflation doesn't come through in the way you're seeing now, also from sort of a tariff perspective, I mean, is it fair to say that there should be upside in that margin target then at 10%, if you get my question?

Speaker #5: Sorry for the long elaboration. I hope you understand my question.

Speaker #4: Yes, this becomes about discussing a new financial target, which, as you know, is also a board decision. But let's say what we would like to do is to firmly state that we have reached the financial target.

Robert Larsson: Yeah. This becomes about kind of discussing a new financial target, which you also know is a board decision. But let us say, what we would like to do is to firmly claim that we have reached the financial target. And when we have done that, we are looking forward to a healthy and also inspiring discussion, what would be the next target for us to achieve. But, on top of that, I would like to make further comments. I think you had all the variables in there.

Speaker #4: And when we have done that, we are looking forward to a healthy and also inspiring discussion about what would be the next target for us to achieve.

Speaker #4: But on top of that, I would like to make some further comments. I think you had all the variables in there. We could easily make one calculation saying, well, you had—was it a 9.3% adjusted operating margin last year? And now you add 0.6.

Anders Åkerblom: Yep.

Robert Larsson: Well, you could easily make one calculation saying, "You had, was it 9.3% adjusted operating margin last year, and now you add 0.6." Yes, there is a seasonality with some quarters being stronger and some are weaker, but it seems like 10% is where you are now. You could argue that, but then, of course, we should

Speaker #4: Yes, there is a seasonality, with some quarters being stronger and some weaker. But it seems like 10% is where you are now. You could argue that, but then, of course, we should be able to deliver for a full year also.

Anders Åkerblom: Definitely

Robert Larsson: we should be able to deliver for a full year also. It hasn't happened yet.

Speaker #4: So it hasn't happened yet.

Speaker #5: No.

Anders Åkerblom: No, that makes sense.

Speaker #4: But that makes sense, yeah. But we think that the target is well within reach.

Robert Larsson: Yeah. But we think that the target is well within reach.

Speaker #5: Yeah, okay. Great. That's actually all from me. I'll stick to two questions. Thank you. Thank you very much for the answers.

Anders Åkerblom: Yeah. Okay, great. That is actually all from me. I will stick to two questions. Thank you very much for the answers.

Speaker #4: Thank you.

Robert Larsson: Thank you.

Speaker #1: As a reminder, if you wish to ask a question, please dial the pound key followed by five on your telephone keypad. The next question comes from Anna Woodstrom from DNB Carnegie.

Operator 2: As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. The next question comes from Anna Widström from DNB Carnegie. Please go ahead.

Operator: As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad. The next question comes from Anna Widström from DNB Carnegie. Please go ahead.

Speaker #1: Please go ahead.

Speaker #3: Yes. Hi, Robert and Anders. I will keep it very short. I just have two sort of follow-up questions, maybe to get some clarification. From the component availability perspective, has this impacted the backlog situation for you at all during the quarter?

Anna Widström: Yes. Hi, Robert and Anders. I will keep it very short. I just have two sort of follow-up questions. Maybe to get some clarification from the component availability, has this impacted the backlog situation for you at all during the quarter?

Speaker #4: Okay. Well, it depends on how you define backlog now. I don't want to be but let's say it has we have been kind of we have been kind of I know from a fact is that we are from time to time we have to reshift and replan our orders.

Robert Larsson: Well, it depends on how you define backlog now. I do not want to be But let's say, I know from a fact is that we are, from time to time, we have to reshift and replan our orders, so it does not bring us the ultimate efficiency. That is quite clear. This is what typically happens. But on a greater scale, has it really impacted us? Minor, I would say. So that is why I said before, irritating but not really damaging. Yeah.

Speaker #4: So, it doesn't bring us the ultimate efficiency—that's quite clear. This is what typically happens. But on a greater scale, has it really impacted us?

Speaker #4: Minor, I would say. So that's why I said before, irritating but not really damaging. Yes.

Speaker #3: Okay, perfect. That's very clear. And also, just a follow-up on North America, because I seem to find that there are some different trends noted in subsegments, etc.

Anna Widström: Okay, perfect. That is very clear. And also just a follow-up on North America, because I seem to find that there is some different trends noted in Americas for different peers and sub-segments, et cetera. So could you maybe highlight what is the overall most impactful trends for your business in the quarter?

Speaker #3: So, could you maybe highlight what are the overall most impactful trends for your business in the quarter?

Speaker #4: I think our business performance in the US—yes, there seems to be a kind of healthy demand, all other things equal.

Robert Larsson: I think our business performance in the US, yes, there seems to be a kind of healthy demand, all other things equal. But, we are also just like in Sweden, we have done changes in how we address the market, how we present ourselves, how we serve our customers, and all of these things. And also there was a leadership change a year ago, something like that. And I think most from what we see is due to these actions. So it is not really the external environment changing.

Speaker #4: But we are also, just like in Sweden, making changes in how we address the market, how we present ourselves, and how we serve our customers.

Speaker #4: And all of these things. And also there was a leadership change a year ago, something like that. And I think most of what we see is due to these actions.

Speaker #4: So, it's not really the external environment changing.

Speaker #3: Okay, perfect. That was all for me. Thank you so much.

Anna Widström: Okay, perfect. That was all for me. Thank you so much.

Speaker #1: The next question comes from Anders JAFS from SB1 Markets. Please go ahead.

Operator 2: The next question comes from Anders Jåfs from SB1 Markets. Please go ahead.

Operator: The next question comes from Anders Jåfs from SB1 Markets. Please go ahead.

Speaker #5: Yes. Hi, Robert and Anders. Just a quick one from my side here. Obviously, you touched upon the Western European markets, but maybe you could give some extra color on how you view the German market currently.

Anders Jåfs: Yes. Hi, Robert and Anders. Just also a quick one from my side here. Obviously, you touched upon the Western European markets, but maybe you could give some extra color on how you view the German market currently. Obviously, you have commented previous quarters that you at least see some kind of flattish market over there. But how would you view that currently and looking ahead maybe for next quarter?

Speaker #5: Obviously, you have commented in previous quarters that you at least see some kind of flattish market over there. But how do you view that currently?

Speaker #5: And looking ahead, maybe for next quarter, once again, we don't—

Robert Larsson: Well, once again, we do not make forecasts, so

Speaker #4: But let's say I don't see any major kind of shift in market dynamics in Germany. It's still a fairly slow market—a bit kind of on and off, and so on.

Anders Jåfs: Yeah

Robert Larsson: but let's say I do not see any major kind of shift in market dynamics in Germany. It is still a fairly slow market. A bit kind of on and off and so on. But I think our organization has demonstrated that they know how to operate. So I look forward to the next visit when I go there. So I do not have these concerns. There is always a certain volatility and some ups and downs, but I know that our sales team is confident. So nothing very much has changed, I would say.

Speaker #4: But I think our organization has demonstrated that they know how to operate, so I look forward to the next visit when I go there.

Speaker #4: So I don't have these concerns. It's, let's say, kind of—there is always a certain volatility and some ups and downs, but I know that our sales team is confident.

Speaker #4: So, nothing very much has changed, I would say.

Speaker #5: Understood. Understood. And maybe you could also give us some color on how you view the Middle East currently, and how that has developed since the very turbulent spring we had over there.

Anders Jåfs: Understood. Maybe also get some color on how you view Middle East currently and how that has developed since the very turbulent spring we had over there.

Robert Larsson: Yeah. Let's make sure that we define the Middle East into the Gulf region, which I think is the most affected one. Seems like business is continuing in the region because we are getting orders and these things, but we do have challenges in deliveries. Bringing components in and also for some complementary products. Shipping is a big topic, really big topic. I really hope that the freights and the shipping can start again in a proper way, and we get the normalization. I think that would be really nice for us. The other comment is that it has been beneficial for us to expand our manufacturing operations in Saudi. It has helped a lot. Still some challenges. As you know, we have not been able to have the official inauguration because of all these tragic events in the region.

Speaker #4: So let's make sure that we define then the Middle East into kind of the Gulf region, which I think is kind of the most affected one.

Speaker #4: It seems like this is continuing in the region because we are getting orders and these things, but we do have challenges in deliveries, bringing components in, and also for some kind of complementary products.

Speaker #4: Shipping is a big topic. Really big topic. And I really hope that the freights and the shipping can start again, in a proper way.

Speaker #4: And we get the normalization. I think that would be really nice for us. The other comment is that it has been beneficial for us to expand our manufacturing operations in Saudi.

Speaker #4: It has helped a lot. Still, there are some challenges. As you know, we have not been able to have the official inauguration because of all these tragic events in the region.

Speaker #4: We're looking forward to that one. But all in all, I think there is business continuing in spite of having this sort of—a bit of—it's a terrible situation for many people there, but I hope it will be resolved.

Robert Larsson: We are looking forward to that one. All in all, I think there is business continuing in spite of having this sort of a bit of It's a terrible situation for many people there, but I hope it will be resolved.

Speaker #5: Okay, understood. Thank you, Robert. That's all from me.

Anders Jåfs: Okay, understood. Thank you, Robert. That's all from me.

Speaker #1: There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.

Operator 2: There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.

Operator: There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.

Anders Ulff: All right. We got also two questions in the chat here, and the first question is regarding to naming competitors in the different regions and also from China and so forth. I think that's a little bit too wide for this forum, so I would encourage you to contact us separately on these issues, and we can go through that because it's a very wide question. The second one here is regarding the multipliers for acquisition of Temspec and if they have any export into US. Do you want to comment on that, Robert?

Speaker #2: I think we also have two questions in the chat here, and the first question is regarding naming competitors in the different regions, including China and so forth.

Speaker #2: I think that's a little bit too wide for this forum, so I would encourage you to contact us separately on these issues, and we can go through that, because it's a very wide question.

Speaker #2: The third one—or the second one here—is regarding the multipliers for acquisition of TempSpec, and if they have any export into the US. Do you want to comment on that, Robert, or...?

Speaker #4: The multipliers.

Robert Larsson: The multipliers?

Anders Ulff: Mm-hmm. Indication of range.

Speaker #2: Indication of range.

Speaker #4: No. Let's say we haven't disclosed the, let's say, the transaction price. So that means that we don't disclose the multipliers either. So...

Robert Larsson: No. We haven't disclosed the transaction price, so that means that we don't disclose the multipliers either.

Speaker #2: We can say under 10 at least. That indicates something. Export into the US.

Anders Ulff: We can say under 10 at least.

Robert Larsson: Okay, that's fine.

Anders Ulff: Because that indicates something. Export into US.

Speaker #4: Yes, they have exports to the US.

Robert Larsson: Yes, they have exports into the US.

Speaker #2: All right. I think that was all the questions that came through the chat, then. And with that, I think we are done.

Anders Ulff: All right. I think that was all the questions that came through the chat. By that, I think we are done.

Speaker #4: So, thank you very much for your time and attention. I look forward to seeing you again soon.

Robert Larsson: Thank you very much for your time and attention. Looking forward to seeing you soon again.

Speaker #2: Yeah, absolutely. Q2 is one of our most important quarters from a seasonality perspective. So, I think we need to prove ourselves here in the coming quarter.

Anders Ulff: Yeah, absolutely. Q2, one of our most important quarters from a seasonality perspective, so I think we need to prove ourselves here in the coming quarter. It will be really, really interesting. Thanks for calling in, and now we go for our annual general meeting here with somebody.

Speaker #2: It will be really, really interesting. Thanks for calling in. And now we go to our annual general meeting here at Queens Capital.

Speaker #4: Yes. Thank you very much. See you soon.

Robert Larsson: Yes. Thank you very much. See you soon.

Operator 2: The host has ended this call. Goodbye.

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Q1 2026 Systemair AB Earnings Call

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