Q2 2026 Robit Oyj Earnings Call
Speaker #1: Ari Suokas, and we'll go through our Q3—Q2—figures for 2026. As always, we start with a disclaimer: and then heading toward the figures and past performance of Robit in the second quarter.
Speaker #1: Like we published during the first quarter, we had a really strong start to the year, and I'm extremely satisfied as the CEO that we were able to continue the good performance also through the second quarter of 2026.
Speaker #1: All in all, it's fair to say that the market demand is very strong, especially on the mining sector, but we've seen that throughout the industry that all in all the market is in good performance and gives Robit an opportunity to grow.
Speaker #1: We saw that the order intake increased by 10% from last year, and our net sales increased by 22.5%. Profit-wise, we were able to keep up the good performance of sustaining our healthy EBIT level, on the cash flow side we were on the negative side.
Speaker #1: Ari will tell a bit more of that in the coming slides. And when we look at the sustainability targets that we are targeting, we were able to improve and further improve the emission intensity targets that we have set for ourselves, and are reaching towards the targets that we have set in the past years.
Speaker #1: At the same time, it's fair to highlight that we have had poor performance on our lost time frequency index, and naturally as a company of focusing solely on having that as our key priority we're taking all actions in order to improve the future performance and ensuring that the performance of that index is developing positively.
Speaker #1: If we look on a broader side at the figures, the first half of the year has been a positive movement from the past performance of Robit.
Speaker #1: We were able to increase, like I said, our net revenue in the second quarter significantly from the year before. And all in all, the start of the year has been very positive.
Speaker #1: If we look from the SPU perspective, we've seen that our revenue in the top hammer side has slightly decreased, but on the down the whole side, and especially on the geotechnical side, we've had very, very positive growth during the past year.
Speaker #1: The EBITDA has, as well, improved from the past year. The net cash flow for the operations have been minus 4 million euros. The growth that we've seen has been coming predominantly from the geotechnical side.
Speaker #1: If we look at the regions and performance of individual regions, especially the Americas, has been performing very well. We have also had positive growth on the keep the market or keep the revenue in the Asia region.
Speaker #1: In Australasia, our revenue has decreased from the year before. Ari, if you say a few words about the financial figures.
Speaker #2: Thank you, Mikko. First of all, to give you the background, the price pressure continued to be very strong in the market, especially driven by the tungsten.
Speaker #2: And our net sales was very good. All in all, totaling to 24 million euros, and it was mainly due to three factors. One, our very active visits towards the customer and active activity towards the customer front.
Speaker #2: Secondly, our product testings and thirdly, our capability to provide the confirmation to our customers that our solution is working in different types of crowd conditions.
Speaker #2: Our EBITDA in Q2 increased to 7.3%. EBIT percentage in Q2 turned positive compared to last year, when it was negative. And Q2 26 result of the period increased, and was 0.5 million euros.
Speaker #2: All in all, when we look at the EBIT for the first half of the year, we are at the moment 2.4 million euros, and the net sales is 45.3 million euros for the first half of the year.
Speaker #2: Moving on to networking capital development, here it's good to understand two factors. One, there has been a rapid increase with the tungsten prices. Tungsten is a key raw material that is used with bits and the price of tungsten first was 7 to 8 times higher at the beginning of the year, and now has decreased and stabilized, but it's still 3 to 4 times higher than it was last year in the end of Q2.
Speaker #2: A second thing that it's good to mention when we look at the networking capital development, it is that now we are ramping up multiple multi-year mining contracts, and obviously that has a temporary impact to our inventories during the ramp-up phase.
Ari Suokas: Times higher than it was last year in end of Q2. A second thing that is good to mention when we look at the net working capital development, it is that now we are ramping up multi-year mining contracts, and obviously that has a temporary impact to our inventories during the ramp-up phase. Net working capital increased by EUR 4 million and totaled EUR 45.8 million. Our inventories increased to EUR 46.3 million, and this was driven by tungsten prices. Compared to last year, this is the increase of EUR 10 million. 80% of that increase is roughly driven by the price. The rest, 20%, is divided to FX and the volume. Our receivables increased to EUR 20.6 million, and our payables increased to EUR 21.1 million, and net working capital percentage of last 12 months of sales was 55.3%. Our cash flow before changes in net working capital was EUR 1.9 million.
Ari Suokas: Times higher than it was last year in end of Q2. A second thing that is good to mention when we look at the net working capital development, it is that now we are ramping up multi-year mining contracts, and obviously that has a temporary impact to our inventories during the ramp-up phase. Net working capital increased by EUR 4 million and totaled EUR 45.8 million. Our inventories increased to EUR 46.3 million, and this was driven by tungsten prices. Compared to last year, this is the increase of EUR 10 million. 80% of that increase is roughly driven by the price. The rest, 20%, is divided to FX and the volume. Our receivables increased to EUR 20.6 million, and our payables increased to EUR 21.1 million, and net working capital percentage of last 12 months of sales was 55.3%.
Speaker #1: It is higher, but that was last year at the end of Q2. A second thing that is good to mention when we look at the networking capital development is that now we are ramping up multiple multi-year mining contracts, and obviously, that has a temporary impact on our inventories during the ramp-up phase.
Speaker #2: Networking capital in all in all increased by 4 million, and totaled 45.8 million euros. Our inventories increased to 46.3 million euros, and this was driven by tungsten prices.
Speaker #1: Net working capital overall increased by €4 million and totaled €45.8 million. Our inventories increased to €46.3 million, and this was driven by tungsten prices compared to last year.
Speaker #2: Compared to last year, this is the increase of 10 million euros. 80% of that increase is roughly driven by the price, and the rest 20% is divided to FX and the volume.
Speaker #1: This is the increase of 10 million euros: 80% of that increase is roughly driven by the price, and the remaining 20% is divided between FX and volume.
Speaker #2: Our receivables increased to 20.6 million euros, and our payables increased to 21.1 million euros, and networking capital percentage of last 12 months of sales was 55.3%.
Speaker #1: Our receivables increased to €20.6 million, and our payables increased to €21.1 million. The net working capital as a percentage of sales for the last 12 months was 55.3%.
Speaker #2: Our cash flow before changes in networking capital was 1.9 million euro, operating cash flow was negative 2.5 million euros, cash flow from investing activities was 0.1 million euro negative, and here it's good to understand that the investing is going according to Robit investment plans also.
Speaker #1: Our cash flow before changes in net working capital was €1.9 million. Operating cash flow was negative €2.5 million. Cash flow from investing activities was negative €0.1 million, and here it’s good to understand that the investing is going according to Robit investment plans as well.
Ari Suokas: Our cash flow before changes in net working capital was EUR 1.9 million. Operating cash flow was -EUR 2.5 million. Cash flow from investing activities was -EUR 0.1 million. Here it's good to understand that the investing is going according to Robit investment plans also. Cash flow from financing activities resulted to EUR 1.5 million. The cash flow impact, what we saw in Q2, we will see also, or we expect to see similar impacts also during Q3. Especially here there are the two reasons. The high tungsten price increases with the carbide price, and secondly, the ramp-up of the multi-year mining contracts. Our financial position, cash and cash equivalents at the end of Q2 were EUR 7.2 million and total interest-bearing loans and utilized credit limits were EUR 26.3 million, and that includes the IFRS 16 lease liabilities of EUR 2.8 million.
Ari Suokas: Operating cash flow was -EUR 2.5 million. Cash flow from investing activities was -EUR 0.1 million. Here it's good to understand that the investing is going according to Robit investment plans also. Cash flow from financing activities resulted to EUR 1.5 million. The cash flow impact, what we saw in Q2, we will see also, or we expect to see similar impacts also during Q3. Especially here there are the two reasons. The high tungsten price increases with the carbide price, and secondly, the ramp-up of the multi-year mining contracts. Our financial position, cash and cash equivalents at the end of Q2 were EUR 7.2 million and total interest-bearing loans and utilized credit limits were EUR 26.3 million, and that includes the IFRS 16 lease liabilities of EUR 2.8 million. Our net debt decreased and was EUR 19.1 million and net debt to 12-month rolling EBITDA was 2.64.
Speaker #2: Cash flow from financing activities resulted to 1.5 million euro. The cash flow impact what we see in Q2, we will see also or we expect to see similar impacts also during Q3, and especially here is there are the two reasons.
Speaker #1: Cash flow from financing activities resulted to 1.5 million euro. The cash flow impact what we see in Q2 we will see also or we expect to see similar impact also during Q3, and especially here is there are the two reasons.
Speaker #2: The high tungsten price increases with the carbide bits and secondly the ramp-up of the multi-year mining contracts. Our financial position, cash and cash equivalents at the end of Q2 were 7.2 million euros, and total interest-bearing loans and utilized credit limits were 26.3 million euros, and that includes the IFRS 6 lease liabilities of 2.8 million euros.
Speaker #1: The high tungsten price increases with the carbide bids, and secondly, the ramp-up of the multi-year mining contracts. Our financial position, cash, and cash equivalents at the end of Q2 were €7.2 million, and total interest-bearing loans and utilized credit limits were €26.3 million, which includes the IFRS 16 lease liabilities of €2.8 million.
Speaker #2: Our net debt decreased, and was 19.1 million euros, and net debt to 12-month rolling EBITDA was 2.64, and we have twice a year at the end of June and end of December financial covenant, and the threshold for that financial covenant is 3.5, and we are clearly below that one.
Speaker #1: Our net debt decreased and was €19.1 million, and net debt to 12-month rolling EBITDA was 2.64. We have a financial covenant twice a year, at the end of June and the end of December, and the threshold for that financial covenant is 3.5. We are clearly below that one.
Ari Suokas: Our net debt decreased and was EUR 19.1 million and net debt to 12-month rolling EBITDA was 2.64.
Ari Suokas: We have twice a year, at the end of June and end of December, a financial covenant, and the threshold for that financial covenant is 3.5. We are clearly below that one. Our equity ratio remains strong at 48.4%. The loan maturity loans from our financial institutions at the end of Q2 totaled EUR 23.5 million. We have a semi-loan amortization of EUR 1.5 million, and that's also biannually in end of June and end of December. We have also protected ourselves against the interest rate fluctuation. We have a EUR 10 million interest rate swap, which took effect on 24 July and ends 30 June 2030. Towards Mikko and outlook.
Ari Suokas: We have twice a year, at the end of June and end of December, a financial covenant, and the threshold for that financial covenant is 3.5. We are clearly below that one. Our equity ratio remains strong at 48.4%. The loan maturity loans from our financial institutions at the end of Q2 totaled EUR 23.5 million. We have a semi-loan amortization of EUR 1.5 million, and that's also biannually in end of June and end of December. We have also protected ourselves against the interest rate fluctuation. We have a EUR 10 million interest rate swap, which took effect on 24 July and ends 30 June 2030. Towards Mikko and outlook.
Speaker #2: Our equity ratio remains strong at 48.4%. The loan maturity loans from our financial institutions at the end of Q2 totaled 23.5 million euros, we have a senior loan amortization of 1.5 million and that's also biannually in end of June and end of December.
Speaker #1: Our equity ratio remains strong at 48.4%. The loan maturity loans from our financial institutions at the end of Q2 totaled €23.5 million. We have a senior loan amortization of €1.5 million, and that's also biannually.
Speaker #2: We have also protected ourselves against the interest rate fluctuation and we have a 10 million euros interest rate swap which took effect on July 24 and ends 30th of June 2030.
Speaker #1: At the end of June and the end of December, we have also protected ourselves against interest rate fluctuations. We have a €10 million interest rate swap, which took effect on July 24 and ends on June 30, 2030.
Speaker #2: Now, towards Mikko and Outlook.
Speaker #1: Yeah, like I said, the first half and the performance of the first half has been really course many positive things have happened in the background which have led to the fact that we've been able to sort of turn the negative revenue development of the past into a growth mode.
Speaker #1: Now towards Mikko and Outlook.
Speaker #2: Yeah, like I said, the first half and the performance of the first half has been really satisfactory, and of course, many positive things have happened in the background, which have led to the fact that we've been able to sort of turn the negative revenue development of the past into a growth mode.
Mikko Kuusilehto: Yeah. Like I said, the H1 and the performance of the H1 has been really satisfactory. Of course, many positive things have happened in the background which have led to the fact that we've been able to sort of turn the negative revenue development of the past into a growth mode. I always say that we are first and foremost a growth-oriented company. We need to be a growth company. The market size and the potential that the market offers us in those regions with those products that we are manufacturing, there's plenty of market for Robit to take, which means that our mindset has to be that we are a growth-oriented company. What needs to continue is the positive momentum that we are having in the fields.
Mikko Kuusilehto: Yeah. Like I said, the H1 and the performance of the H1 has been really satisfactory. Of course, many positive things have happened in the background which have led to the fact that we've been able to sort of turn the negative revenue development of the past into a growth mode. I always say that we are first and foremost a growth-oriented company. We need to be a growth company. The market size and the potential that the market offers us in those regions with those products that we are manufacturing, there's plenty of market for Robit to take, which means that our mindset has to be that we are a growth-oriented company. What needs to continue is the positive momentum that we are having in the fields.
Speaker #1: I always say that we are first and foremost a growth-oriented company and we need to be a growth company. The market size and the potential that the market offers us in those regions with those products that we are manufacturing, there's plenty of market for Robit to take, which means that our mindset has to be that we are growth-oriented company.
Speaker #2: I always say that we are, first and foremost, a growth-oriented company, and we need to be a growth company. The market size and the potential that the market offers us in those regions, with those products that we are manufacturing, there's plenty of market for Robit to take. Which means that our mindset has to be that we are a growth-oriented company.
Speaker #1: What needs to continue is the positive momentum that we are having in the fields. We have to be really, really active together with our distributors in ensuring that they are able to perform better, that they are able to grow, that they are able to penetrate into the markets with our products.
Speaker #2: What needs to continue is the positive momentum that we are having in the fields. We have to be really, really active together with our distributors in ensuring that they are able to perform better, that they are able to grow, and that they are able to penetrate into the markets with our products.
Speaker #1: We have to sort of ensure that the positive added value that Robit brings through its products is transferred from the presentations and from these speeches into real-life actions in the fields and of course that is something that we have to continue also in the future.
Mikko Kuusilehto: We have to be really, really active together with our distributors in ensuring that they are able to perform better, that they are able to grow, that they are able to penetrate into the markets with our products. We have to sort of ensure that the positive added value that Robit brings through its products is transferred from the presentations and from these speeches into realized actions in the fields. Of course, that is something that we have to continue also in the future. The other fundamentals remain the same. We have to be really active in the pricing sector. The tungsten development that has evolved during the last 12 months, of course, has been a major disturbance in the market and has created many challenges to the competitive environment, to the customers, with the uncertainty of understanding how the prices will develop.
Mikko Kuusilehto: We have to be really, really active together with our distributors in ensuring that they are able to perform better, that they are able to grow, that they are able to penetrate into the markets with our products. We have to sort of ensure that the positive added value that Robit brings through its products is transferred from the presentations and from these speeches into realized actions in the fields. Of course, that is something that we have to continue also in the future. The other fundamentals remain the same. We have to be really active in the pricing sector. The tungsten development that has evolved during the last 12 months, of course, has been a major disturbance in the market and has created many challenges to the competitive environment, to the customers, with the uncertainty of understanding how the prices will develop.
Speaker #2: We have to sort of ensure that the positive added value that Robit brings through its products is transferred from the presentations and from these speeches into real-life actions in the fields, and of course that is something that we have to continue also in the future.
Speaker #1: The other fundaments remain the same. We have to be really active in the pricing sector. The tungsten development that has evolved during the last 12 months of course has been a major disturbance in the market and has created many challenges to the competitive environment, to the customers with the uncertainty of understanding how the prices will develop, and that's of course something that we need to work on a daily basis to ensure that we are able to transfer the information of our prices but also transfer the information about how we expect or how we see that the future will evolve.
Speaker #2: The other fundamentals remain the same. We have to be really active in the pricing sector. The tungsten development that has evolved during the last 12 months, of course, has been a major disturbance in the market and has created many challenges to the competitive environment, to the customers, with the uncertainty of understanding how the prices will develop. That's, of course, something that we need to work on a daily basis—to ensure that we are able to transfer the information of our prices, but also transfer the information about how we expect, or how we see, that the future will evolve.
Mikko Kuusilehto: That's of course something that we need to work on a daily basis to ensure that we are able to transfer the information of our prices, but also transfer the information about how we expect or how we see that the future will evolve. Of course, the challenge with the tungsten is that the forecasting towards the future is really, really difficult. It's actually impossible, so we have to live on the daily figures where we stand. Fortunately, we've seen the situation that we've come down from the high peak that was seen earlier this year to a lower level. Naturally, we are still way above the historical sort of average levels that we've seen during the last years. Customer activity is the key for us. We have to be active in the front line. We have to be active in visiting the customers.
Mikko Kuusilehto: That's of course something that we need to work on a daily basis to ensure that we are able to transfer the information of our prices, but also transfer the information about how we expect or how we see that the future will evolve. Of course, the challenge with the tungsten is that the forecasting towards the future is really, really difficult. It's actually impossible, so we have to live on the daily figures where we stand. Fortunately, we've seen the situation that we've come down from the high peak that was seen earlier this year to a lower level. Naturally, we are still way above the historical sort of average levels that we've seen during the last years. Customer activity is the key for us. We have to be active in the front line. We have to be active in visiting the customers.
Speaker #1: Of course the challenge with the tungsten is that the forecasting towards the future is really, really difficult actually impossible so we have to live on the daily figures where we stand but fortunately we've seen the situation that we've come down from the high peak that was seen earlier this year to a lower level but naturally we are still way above the historical sort of average levels that we've seen during the last years.
Speaker #2: Of course, the challenge with the tungsten is that forecasting towards the future is really, really difficult—actually impossible—so we have to live on the daily figures where we stand. But fortunately, we've seen the situation that we've come down from the high peak that was seen earlier this year to a lower level. But naturally, we are still way above the historical sort of average levels that we've seen during the last years.
Speaker #1: So customer activity is the key for us. We have to be active in the front line. We have to be active in visiting the customers.
Speaker #1: That's what the base fundament for our future success and that work has to continue also in the coming quarters. Of course it's easier to have that sort of positive momentum in the background.
Speaker #2: So customer activity is the key for us. We have to be active on the front line. We have to be active in visiting the customers.
Speaker #1: It's easier to communicate this also throughout the organization, through our distributors that we are able to be successful. So that's of course a positive thing that we are able to carry us.
Speaker #2: That's the fundamental base for our future success, and that work has to continue also in the coming quarters. Of course, it's easier to have that sort of positive momentum in the background.
Mikko Kuusilehto: That's the base fundament for our future success, that work has to continue also in the coming quarters. Of course, it's easier to have that sort of positive momentum in the background. It's easier to communicate this also throughout the organization, through our distributors, that we are able to be successful. That's, of course, a positive thing that we are able to carry out. That's easy to carry through the communication. Of course, the work needs to continue every single morning that we come to the office and every single day that we even meet our customers. That's basically the standpoint also for the coming months, that the hard work that we've done in the past has to continue, and we have to be even better than we've been in the past in order to ensure that we see a future growth momentum also in Robit.
Mikko Kuusilehto: That's the base fundament for our future success, that work has to continue also in the coming quarters. Of course, it's easier to have that sort of positive momentum in the background. It's easier to communicate this also throughout the organization, through our distributors, that we are able to be successful. That's, of course, a positive thing that we are able to carry out. That's easy to carry through the communication. Of course, the work needs to continue every single morning that we come to the office and every single day that we even meet our customers. That's basically the standpoint also for the coming months, that the hard work that we've done in the past has to continue, and we have to be even better than we've been in the past in order to ensure that we see a future growth momentum also in Robit.
Speaker #1: That's easy to carry through the communication but of course the work needs to continue every single morning that we come to the office and every single day that we even meet our customers and that's basically the standpoint also for the coming months that the hard work that we've done in the past has to continue and we have to be even better than we've been in the past in order to ensure that we see a future growth momentum also in Robit.
Speaker #2: It's easier to communicate this throughout the organization and through our distributors, which enables us to be successful. So that's, of course, a positive thing that we are able to carry with us.
Speaker #2: That's easy to carry through the communication, but of course, the work needs to continue every single morning that we come to the office and every single day that we even meet our customers. And that's basically the standpoint also for the coming months: that the hard work that we've done in the past has to continue, and we have to be even better than we've been in the past in order to ensure that we see a future growth momentum also in Robit.
Speaker #1: Then last but not least before we go into the questions, the guidance remains the same. We still estimate that the net sales will increase from 2025 as well as the EBIT profitability will also increase from last year.
Speaker #2: Then, last but not least, before we go into the questions, the guidance remains the same. We still estimate that net sales will increase in 2025, and EBIT profitability will also improve compared to last year.
Mikko Kuusilehto: Last but not least, before we go into the questions, the guidance remains the same. We still estimate that the net sales will increase from 2025 as well as the EBIT profitability will also increase from last year. Ari, do we have any questions online or?
Mikko Kuusilehto: Last but not least, before we go into the questions, the guidance remains the same. We still estimate that the net sales will increase from 2025 as well as the EBIT profitability will also increase from last year. Ari, do we have any questions online or?
Speaker #1: Ari, do we have any questions online or?
Speaker #2: Yes, now moving to thank you Mikko. Now moving to the questions and answers. Are there any questions voice-related questions? We have few questions in the chat functionality.
Speaker #2: Ari, do we have any questions online, or...?
Speaker #1: Yes, now moving to—thank you, Mikko. Now, moving to the questions and answers. Are there any questions—voice-related questions? We have a few questions in the chat functionality.
Ari Suokas: Yes. Thank you, Mikko. Now moving to the questions and answers. Are there any voice-related questions? We have few questions in the chat functionality. I assume not. Let's proceed so that I will read the question, and let's take a look after that one, which one of us will reply to the question. First question comes from Aapeli Pursimo from Inderes. How does your sales pipeline look like?
Ari Suokas: Yes. Thank you, Mikko. Now moving to the questions and answers. Are there any voice-related questions? We have few questions in the chat functionality. I assume not. Let's proceed so that I will read the question, and let's take a look after that one, which one of us will reply to the question. First question comes from Aapeli Pursimo from Inderes.
Speaker #2: I assume not. Then let's proceed so that I will read the question and let's take a look after that one which one of us will reply to the question.
Speaker #2: First question comes from Aapeli Pursimo from Inderes. How does your sales pipeline look like?
Speaker #1: I assume not. Then let's proceed so that I will read the question and let's take a look after that one which one of us will reply to the question.
Speaker #1: Yeah, we came out during the second quarter with announcements regarding multiple mining contracts that we've been able to sign and that's of course something fantastic to come up with or come out with that type of information.
Speaker #1: First question comes from Apeli Purisima from Inderes. How does your sales pipeline look like?
Aapeli Pursimo: How does your sales pipeline look like?
Speaker #2: Yeah, we came out during the second quarter with announcements regarding multiple mining contracts that we've been able to sign, and that's of course something fantastic to come out with, that type of information.
Mikko Kuusilehto: Yeah. We came out during Q2 with announcements regarding multiple mining contract that we've been able to sign, that's, of course, something fantastic to come out with that type of information. In that sense, when looking at the announcements that we made, when looking at the order intake that we've been able to collect, of course, the situation where we stand at the moment is, in that sense, better than it has been in the past. At the same time, of course, that work needs to continue to ensure that we are able to continuously increase our order intake. Naturally, these type of successes that we've had with these mining contract is something positive, but it's something that has to continue and has to develop day after day, month after month.
Mikko Kuusilehto: Yeah. We came out during Q2 with announcements regarding multiple mining contract that we've been able to sign, that's, of course, something fantastic to come out with that type of information. In that sense, when looking at the announcements that we made, when looking at the order intake that we've been able to collect, of course, the situation where we stand at the moment is, in that sense, better than it has been in the past. At the same time, of course, that work needs to continue to ensure that we are able to continuously increase our order intake. Naturally, these type of successes that we've had with these mining contract is something positive, but it's something that has to continue and has to develop day after day, month after month.
Speaker #1: In that sense when looking at the announcements that we made when looking at the order intake that we've been able to collect, of course the situation where we stand at the moment is in that sense better than it has been in the past.
Speaker #2: In that sense, when looking at the announcements that we made, when looking at the order intake that we've been able to collect, of course, the situation where we stand at the moment is, in that sense, better than it has been in the past.
Speaker #1: At the same time of course that work needs to continue to ensure that we are able to continuously increase our order intake and this naturally this type of successes that we've had with the mining contract is something positive but it's something that has to continue and has to develop day after day, month after month.
Speaker #2: At the same time, of course, that work needs to continue to ensure that we are able to continuously increase our order intake. Naturally, this type of success that we've had with the mining contract is something positive, but it's something that has to continue and has to develop day after day, month after month.
Speaker #2: Thank you Mikko. Second question from Aapeli and you partially replied to this one. Already but could you describe how does your pricing works regarding tungsten price in a rapid upward or downward pressure what we have been seen lately?
Speaker #1: Thank you, Mikko. Second question from Apeli, and you partially replied to this one already, but could you describe how your pricing works regarding tungsten prices in a rapid upward or downward pressure, which we have been seeing lately?
Ari Suokas: Thank you, Mikko. Second question from Aapeli, you partially replied to this one already, could you describe how does your pricing work regarding tungsten price in a rapid upward or downward pressure, what we have been seeing lately? Now it was a headwind in Q2 and probably will be also in Q3, is there going to be a tailwind for Q4 if the price remains around current level?
Ari Suokas: Thank you, Mikko. Second question from Aapeli, you partially replied to this one already,
Speaker #2: Now it was headwind in Q2 and probably will be also in Q3 but is there going to be a tailwind for Q4 if the price remains around current level?
Aapeli Pursimo: Could you describe how does your pricing work regarding tungsten price in a rapid upward or downward pressure, what we have been seeing lately? Now it was a headwind in Q2 and probably will be also in Q3, is there going to be a tailwind for Q4 if the price remains around current level?
Speaker #1: Now, it was a headwind in Q2 and probably will be also in Q3, but is there going to be a tailwind for Q4 if the price remains around the current level?
Speaker #1: Yeah, I won't go into details how the pricing mechanism works for the tungstens but of course the situation is that there's always a market price for the products and now what we've seen during the last six to nine months is that there's large fluctuation within markets and within different product groups with that sort of market price due to the fact that the competitive environment is living in different cycles and some companies are taking more risks, some companies are taking less risk with the tungsten price development.
Speaker #2: Yeah, I won't go into details about how the pricing mechanism works for the tungstens, but of course the situation is that there's always a market price for the products. What we've seen during the last six to nine months is that there's been large fluctuation within markets and within different product groups regarding that sort of market price, due to the fact that the competitive environment is operating in different cycles. Some companies are taking more risks, some companies are taking less risk with the tungsten price development.
Mikko Kuusilehto: Yeah. I won't go into details how the pricing mechanism works for the tungstens. Of course, the situation is that there's always a market price for the products. Now what we've seen during the last six to nine months is that there's large fluctuation within markets and within different product groups with that sort of market price due to the fact that the competitive environment is living in different cycles, and some companies are taking more risks, some companies are taking less risk with the tungsten price development. Our job is, of course, to ensure that we are safeguarding the profitability of the company and do the utmost to ensure that we are able to transfer that price development into the unit prices of our products.
Mikko Kuusilehto: Yeah. I won't go into details how the pricing mechanism works for the tungstens. Of course, the situation is that there's always a market price for the products. Now what we've seen during the last six to nine months is that there's large fluctuation within markets and within different product groups with that sort of market price due to the fact that the competitive environment is living in different cycles, and some companies are taking more risks, some companies are taking less risk with the tungsten price development. Our job is, of course, to ensure that we are safeguarding the profitability of the company and do the utmost to ensure that we are able to transfer that price development into the unit prices of our products.
Speaker #1: Our job is of course to ensure that we are safeguarding the profitability of the company and do the uttermost to ensure that we are able to transfer that price development into the unit prices of our products.
Speaker #2: Our job is, of course, to ensure that we are safeguarding the profitability of the company and doing our utmost to ensure that we are able to transfer that price development into the unit prices of our products.
Speaker #1: Sometimes it works better than in other cases but like I said it's then in the end it is the market price that's demanding the market price that then dictates the level of possibilities of pushing it fully or in some other extent.
Speaker #2: Sometimes it works better than in other cases, but like I said, it's then in the end, it is the market price that's demanding the market price that then dictates the level of possibilities of pushing it fully or in some other extent.
Mikko Kuusilehto: Sometimes it works better than in other cases, like I said, it's then in the end, it is the market price that then dictates the level of possibilities of pushing it fully or in some other extent.
Mikko Kuusilehto: Sometimes it works better than in other cases, like I said, it's then in the end, it is the market price that then dictates the level of possibilities of pushing it fully or in some other extent.
Speaker #2: Thank you Mikko. The next question also is around the same topic. Can you discuss a bit how has the competition situation developed lately and has tungsten price development affected it?
Speaker #1: Thank you, Mikko. The next question is also around the same topic. Can you discuss a bit how the competition situation has developed lately, and has tungsten price development affected it?
Ari Suokas: Thank you, Mikko. The next question also is around the same topic. Can you discuss a bit how has the competition situation developed lately? Has tungsten price development affected it?
Ari Suokas: Thank you, Mikko. The next question also is around the same topic.
Speaker #1: Yeah, pretty much also answer that one in my previous comment but all in all I wouldn't say that the competitive environment has changed. It has always been something always be tough.
Aapeli Pursimo: Can you discuss a bit how has the competition situation developed lately? Has tungsten price development affected it?
Speaker #2: Yeah, pretty much also answered that one in my previous comment, but all in all, I wouldn't say that the competitive environment has changed. It has always been something—always been tough.
Mikko Kuusilehto: Yeah, pretty much also answered that one in my previous comment. All in all, I wouldn't say that the competitive environment has changed. It has always been tough. It'll always be tough. We're no different business from any other business. There's always competition in the market, and you need to live with that, and you have to be able to be successful, not just price-wise, but also quality-wise. Like I've said in the past that if we position ourselves just purely on price, not on performance, not on quality, then we are fighting in the wrong type of field.
Mikko Kuusilehto: Yeah, pretty much also answered that one in my previous comment. All in all, I wouldn't say that the competitive environment has changed. It has always been tough. It'll always be tough. We're no different business from any other business. There's always competition in the market, and you need to live with that, and you have to be able to be successful, not just price-wise, but also quality-wise. Like I've said in the past that if we position ourselves just purely on price, not on performance, not on quality, then we are fighting in the wrong type of field.
Speaker #1: We're no different business from any other business. There's always competition in the market and you need to live with that and you have to be able to be successful not just price-wise but also quality-wise and like I've said in the past that if we position ourselves just purely on price, not on performance, not on quality, then we are fighting in the wrong type of field.
Speaker #2: We're no different business from any other business. There's always competition in the market and you need to live with that and you have to be able to be successful not just price-wise but also quality-wise and like I've said in the past that if we position ourselves just purely on price, not on performance, not on quality, then we are fighting in the wrong type of field.
Speaker #1: But clearly of course when the business environment, especially on the mining side, is very strong and the forecasts also for the future and the mining sector is very positive.
Speaker #1: It means that there are existing players and new players trying to enter the market and the competition is always there. So it has been tough.
Speaker #2: But clearly, of course, when the business environment, especially on the mining side, is very strong, and the forecasts also for the future in the mining sector are very positive.
Mikko Kuusilehto: Clearly, of course, when the business environment, especially on the mining side, is very strong and the forecast also for the future in the mining sector is very positive, it means that there are existing players and new players trying to enter the market, and the competition is always there. Has been tough, will continue to be tough. Then, of course, the fluctuation with the tungsten price is something that has, of course, been then disturbing that competitive environment even more for everyone in the market due to the fact that so-called market price has been a bit harder to understand due to the fact that different companies are living in a different sort of time zone in terms of implementing those tungsten changes into their product prices.
Mikko Kuusilehto: Clearly, of course, when the business environment, especially on the mining side, is very strong and the forecast also for the future in the mining sector is very positive, it means that there are existing players and new players trying to enter the market, and the competition is always there. Has been tough, will continue to be tough. Then, of course, the fluctuation with the tungsten price is something that has, of course, been then disturbing that competitive environment even more for everyone in the market due to the fact that so-called market price has been a bit harder to understand due to the fact that different companies are living in a different sort of time zone in terms of implementing those tungsten changes into their product prices.
Speaker #1: We'll continue to be tough and then of course the fluctuation with the tungsten price is something that has of course been then disturbing that competitive environment even more for everyone in the market due to the fact that so-called market price has been a bit harder to understand due to the fact that different companies are living in a different sort of time zone in terms of implementing those tungsten changes into their product prices.
Speaker #2: It means that there are existing players and new players trying to enter the market, and the competition is always there. So, it has been tough, will continue to be tough, and then, of course, the fluctuation with the tungsten price is something that has, of course, been disturbing that competitive environment even more for everyone in the market, due to the fact that the so-called market price has been a bit harder to understand due to the fact that different companies are living in a different sort of time zone in terms of implementing those tungsten changes into their product prices.
Speaker #2: Thank you Mikko. The last question that we have on the chat functionality is when you expect cash flow to turn positive still in H2 or will it take into 27?
Speaker #1: Thank you, Mikko. The last question that we have on the chat functionality is when you expect cash flow to turn positive—still in H2, or will it take into '27?
Ari Suokas: Thank you, Mikko. The last question that we have on the chat functionality is when you expect cash flow to turn positive, still in H2, or will it take into 2027? I can take this one. There's two elements with the cash flow that it's good to understand. One is the tungsten, and a second is obviously the ramp-up of the mining contracts, what I highlighted. Robit is a growth company. Our target is to grow, like Mikko highlighted very clearly. The tungsten price has stabilized now. If we assume that the tungsten will remain on the similar level, it will not create such a disturbance to the market continuously, and that will obviously help with the positive development. That will not help us already in Q3, but that will help us in Q4, so that will be the latter part of 2026.
Ari Suokas: Thank you, Mikko.
Speaker #2: I can take this one. Now there's two elements with the cash flow that it's good to understand. One is the tungsten and a second is obviously the ramp-up of the mining contracts what I highlighted.
Aapeli Pursimo: The last question that we have on the chat functionality is when you expect cash flow to turn positive, still in H2, or will it take into 2027?
Speaker #1: I can take this one. Now, there are two elements with the cash flow that it's good to understand. One is the tungsten, and the second is obviously the ramp-up of the mining contracts that I highlighted.
Ari Suokas: I can take this one. There's two elements with the cash flow that it's good to understand. One is the tungsten, and a second is obviously the ramp-up of the mining contracts, what I highlighted. Robit is a growth company. Our target is to grow, like Mikko highlighted very clearly. The tungsten price has stabilized now. If we assume that the tungsten will remain on the similar level, it will not create such a disturbance to the market continuously, and that will obviously help with the positive development. That will not help us already in Q3, but that will help us in Q4, so that will be the latter part of 2026.
Speaker #2: Now Robit is a growth company. Our target is to grow like Mikko highlighted very clearly. The tungsten price has stabilized now. If we assume that the tungsten will remain on the similar level, it will not create such a disturbance to the market continuously and that will obviously help with the positive development but that will not help us already in Q3 but that will help us in Q4 so that will be the latter part of 26.
Speaker #1: Now, Robit is a growth company. Our target is to grow, like Mikko highlighted very clearly. The tungsten price has stabilized now. If we assume that tungsten will remain at a similar level, it will not create such a disturbance to the market continuously, and that will obviously help with positive development. But that will not help us already in Q3; that will help us in Q4.
Speaker #2: Obviously we are targeting to grow incoming quarters and if we continue to grow we need to ensure there's availability of our products. And that might a bit disturb the cash flow during the rapid growth phase.
Speaker #1: So that will be the latter part of '26. Obviously, we are targeting to grow in the coming quarters, and if we continue to grow, we need to ensure there's availability of our products.
Ari Suokas: Obviously, we are targeting to grow in coming quarters, and if we continue to grow, we need to ensure there's availability of our products, and then that might a bit disturb the cash flow during the rapid growth phase. Obviously, we monitor continuously the cash flow, but it's good to understand these few limitations that there are also with the cash flow. Are there any more questions? I don't see at the moment in the line. In that case, thank you very much for participating to our webcast.
Ari Suokas: Obviously, we are targeting to grow in coming quarters, and if we continue to grow, we need to ensure there's availability of our products, and then that might a bit disturb the cash flow during the rapid growth phase. Obviously, we monitor continuously the cash flow, but it's good to understand these few limitations that there are also with the cash flow. Are there any more questions? I don't see at the moment in the line. In that case, thank you very much for participating to our webcast.
Speaker #2: But obviously we monitor continuously the cash flow but it's good to understand these few limitations that there are also with the cash flow. Are there any more questions?
Speaker #1: And that might disturb the cash flow a bit during the rapid growth phase. But obviously, we continuously monitor the cash flow. Still, it's good to understand these few limitations that there are also with the cash flow.
Speaker #2: I don't see at the moment in the line. So in that case thank you very much for participating to our webcast.
Speaker #1: Are there any more questions? I don't see any at the moment in the line. So, in that case, thank you very much for participating in our webcast.
Mikko Kuusilehto: Yeah. Thank you.
Mikko Kuusilehto: Yeah. Thank you.
