Q2 2026 GomSpace Group AB Earnings Call

August 26, 2026

Speaker #1: Welcome to today's event, where we have the pleasure to present GomSpace. As we can see here on the front page, the Q2 and H1 report is in focus.

[Analyst] (Inderes/HC Andersen Capital): Welcome to today's event, where we have the pleasure to present GomSpace. As we can see here on the front page, the Q2 and H1 report is in focus. Today, I guess we will also share some views on the sector, I guess, where the world is changing every quarter. As I see it, Trump decreeing a nuclear power plant on the moon and so on, and SpaceX. Very likely to hear some of your insights in this sector, Carsten. As always, we are joined by Carsten Drachmann, CEO of GomSpace, to take us through the results, the presentation, and answer questions in the end. As always, there is a box down below where you can ask your questions. A lot have already come in, so see if something is answered, but do feel free to ask questions through all the presentation.

[Analyst] (HC Andersen Capital): Welcome to today's event, where we have the pleasure to present GomSpace. As we can see here on the front page, the Q2 and H1 report is in focus. Today, I guess we will also share some views on the sector, I guess, where the world is changing every quarter. As I see it, Trump decreeing a nuclear power plant on the moon and so on, and SpaceX. Very likely to hear some of your insights in this sector, Carsten. As always, we are joined by Carsten Drachmann, CEO of GomSpace, to take us through the results, the presentation, and answer questions in the end. As always, there is a box down below where you can ask your questions. A lot have already come in, so see if something is answered, but do feel free to ask questions through all the presentation.

Speaker #1: Today, I guess we will also share some views on the sector. I guess that the world is changing every quarter, as I see it from the decreasing nuclear power plant on the Moon and so on, and SpaceX.

Speaker #1: So, very, very likely to hear some of your insights in this sector, Carsten. And, as always, we are joined by Carsten Brackmann, CEO of GomSpace, to take us through the results, the presentation, and answer questions at the end.

Speaker #1: And as always, there's a box down below where you can ask your question. A lot have already come in, so see if something is answered, but do feel free to ask questions throughout the presentation.

Speaker #1: But we will take it in the end. But for now, I will hand the stage over to you, Carsten.

[Analyst] (Inderes/HC Andersen Capital): But we will take it in the end. For now, I will hand the stage over to you, Carsten.

[Analyst] (HC Andersen Capital): But we will take it in the end. For now, I will hand the stage over to you, Carsten.

Speaker #2: Thank you, Michael. And yeah, welcome everyone to our first half-year report for 2026. Like Michael said, please do ask questions. I repeat, I am leading the chat forums.

Carsten Drachmann: Thank you, Michael. Yeah, welcome all here to our H1 report for 2026. Like Michael said, do ask questions. I repeat, I am reading the chat forums. I am seeing everything that you are writing. Please ask questions. I will try to answer the best I can. The picture here, I think it is a fantastic picture, maybe starting with that. 10 years on Nasdaq in Sweden. It is a long time. It has been a very ambitious time. It has been turbulent times. It has been up and down. I think, I hope you will agree with me, the Q2 and the H1 results here for 2026 is trending towards definitely in a better end and towards more stability. So 10 years, ups and downs, and now we are moving forward to a brighter future, I believe. Let us take a look at it. First of all, Q2 results.

Speaker #2: I'm seeing everything that you are writing, and please ask questions. I will try to answer as best I can. But the picture here, I think, is a fantastic picture.

Speaker #2: Maybe starting with that—10 years on Nasdaq. In Sweden, that's a long time. It's been a very ambitious time. It's been turbulent times. It's been up and down.

Carsten Drachmann: It has been turbulent times. It has been up and down. I think, I hope you will agree with me, the Q2 and the H1 results here for 2026 is trending towards definitely in a better end and towards more stability. So 10 years, ups and downs, and now we are moving forward to a brighter future, I believe. Let us take a look at it. First of all, Q2 results.

Speaker #2: I think, and I hope you'll agree with me, that the Q2 and first half results here for 2026 are definitely trending toward a better end and more stability.

Speaker #2: So, 10 years of ups and downs, and now we are moving forward to a brighter future, I believe. Let's take a look at it. So, first of all, Q2 results.

Speaker #2: Our revenue, compared to the same period last year, went up 17%, to 112 million. We have delivered a positive EBITDA of 13%. It's pretty good percentage-wise, because this is significantly better than most of the industry. And please remember, many are still not making any money, but we understand how to make money.

Carsten Drachmann: Our revenue compared to the same period last year went up by 17%, SEK 112 million. We have delivered a positive EBITDA of 13%. It is pretty good percentage-wise because this is significantly better than most of the industry and many are. Please remember, many are still not making any money, but we understand how to make money. Our cash flow is negative. This is according to our plan. Also, I know there are some questions on what are we doing. Well, we are investing in developing more technology. We are creating more platforms of different sizes of our satellites. Then I thought, stepping aside here so you can see that. This is also what some of your money has gone into, what we have spent. This is a vibration table, fairly big one. It is much larger than we had before because we start building bigger satellites.

Speaker #2: Our cash flow is negative. This is according to our plan. Also, I know there are some questions on what we are doing, where we are investing in developing more technology.

Speaker #2: We're creating more platforms of different sizes of satellites. And then I thought, stepping aside here so you can see that. So this is also what some of your money has gone into.

Speaker #2: What we have spent this on is a vibration table—a fairly big one. It's much larger than we had before, because we're starting to build bigger satellites.

Speaker #2: So we have invested in this, and the whole vibration is a pretty important part of our process of building and testing satellites. And the vibration is about when you put the satellite on the rocket and it goes off.

Carsten Drachmann: We have invested in this, and the whole vibration is a pretty important part of our process of building and testing satellites. The vibration is about when you put the satellite on the rocket and it goes off. There is a lot of vibration. It has to sustain that. Once it is in space, no vibration, but a lot of rules and procedures, and it is much more efficient for us to have it here. Some of the money of the -SEK 42 million is sitting right here behind me. It has not just vanished into blue space. Bank account looks healthy. We have a bit more than SEK 180 million in a bank account at the end of June. Looking at the half year summary, we are looking at 30% growth on revenue. Also very good. Remember, the market is growing 14% to 15% on average for our business segment.

Speaker #2: There's a lot of vibration. It has to sustain that. Once it's in space, no vibration. But there are a lot of rules and procedures, and it's much more efficient for us to have it here.

Speaker #2: So, some of the money of the minus $42 million is sitting right here behind me. So it hasn't just vanished into blue space. Bank account looks healthy.

Carsten Drachmann: Some of the money of the -SEK 42 million is sitting right here behind me. It has not just vanished into blue space. Bank account looks healthy. We have a bit more than SEK 180 million in a bank account at the end of June. Looking at the half year summary, we are looking at 30% growth on revenue. Also very good. Remember, the market is growing 14% to 15% on average for our business segment.

Speaker #2: We have had more than 180 million in the bank account at the end of June. Looking at the half-year summary, we are seeing 30% growth in revenue, which is also very good.

Speaker #2: Remember, the market is growing 14–15% on average for our business segment here. We're growing 30%. This is well in line with what we have predicted for the year.

Carsten Drachmann: Here we are growing 30%. This is well in line with what we have predicted for the year. EBITDA at SEK 25 million, about 11%. Again, I am very happy with hitting that number. This is where we want to be and still better than the market on average. -SEK 100 million in cash flow expected. Well, the bank account is the same as the previous one. Also note the bottom line net profit is positive with SEK 28 million. There have been some transactions, financial transactions that have helped that. We actually have a situation. We have a positive EBITDA, we have a positive EBIT, and we have a positive net profit also. That is good. The net profit helps us also adding to our equity value. Taking a look at other events that had happened, I wanted to highlight, first of all, Peter Hargreaves. Thank you, Peter, again.

Speaker #2: EBITDA at $25 million, about 11%. So again, I'm very happy with hitting that number. This is where we want to be, and still better than the market on average.

Speaker #2: Minus $100 million in cash flow is expected. And, well, the bank account is the same as the previous one. Also, note the bottom-line net profit is positive, at $28 million.

Speaker #2: There have been some financial transactions that have helped with that. So, we actually have a situation where we have a positive EBITDA, a positive EBIT, and a positive net profit as well.

Carsten Drachmann: There have been some transactions, financial transactions that have helped that. We actually have a situation. We have a positive EBITDA, we have a positive EBIT, and we have a positive net profit also. That is good. The net profit helps us also adding to our equity value. Taking a look at other events that had happened, I wanted to highlight, first of all, Peter Hargreaves. Thank you, Peter, again.

Speaker #2: So that's good. The net profit helps us, also adding to our equity value. Taking a look at other events that have happened, I wanted to highlight, first of all, Peter Hargreaves.

Speaker #2: Thank you, Peter, again. He has converted—he's had a lot of warrants in connection with the previous loan agreements we've had. He's converted that to shares. That's good.

Carsten Drachmann: He has converted. He has had a lot of warrants in connection with the previous loan agreements we have had. He has converted that to shares. That is good. Why? Concretely, on a balance sheet, it has increased our equity ratio to 41%. Remember, we need that when we are doing the government business, we need to have a strong balance sheet. Also when we are playing for the bigger deals, we need to be more solid. This is helping us a lot. The other thing is, the issue we had with those warrants is that every time the share price goes up and you investors are happy with what we are doing, it has a negative impact on the net profit. When the share price goes down, it has a positive impact. It does not make any sense.

Speaker #2: Why? Well, concretely, on a balance sheet, it has increased our equity ratio to 41%. Remember, we need that when we're doing the government business.

Speaker #2: We need to have a strong balance sheet, and also, when we are playing for the bigger deals, we need to be more solid. This is helping us a lot.

Speaker #2: The other thing is, the issue we had with those warrants is that every time the share price goes up and you investors are happy with what we're doing, it has a negative impact on the net profit.

Speaker #2: And when the share price goes down, it has a positive impact. So it doesn't make any sense. Luckily, Peter had no problems taking those warrants off the market and converting them to shares.

Carsten Drachmann: Luckily, Peter had no problems taking those warrants off the market and converting them to shares. He is not selling, just converting to shares. This is good. This has helped us. Somebody called it the elephant in the room. It is not an elephant, but we do have an outstanding receivable that is still here. It was from 2025. We reduced it with a customer by simply reusing material. A reminder, they had owed us a big amount of money for some time. We control the assets. We have not sent anything to them, and we have different collateral agreements in place. In this context, we simply chosen now to reuse some of the material for other projects and also reduce our exposure. The customer is in a fundraising period. It is taken a long time. I said before, they are playing for big bucks, not peanuts. It is taking some time.

Speaker #2: He's not selling. He's just converting to shares. This is good. This has helped us. Somebody called it the elephant in the room. It's not an elephant.

Speaker #2: What we do have is an outstanding receivable that's still here. It was from 2025. We reduced it with the customer by simply reusing material. A reminder, their order is a big amount of money for some time.

Carsten Drachmann: A reminder, they had owed us a big amount of money for some time. We control the assets. We have not sent anything to them, and we have different collateral agreements in place. In this context, we simply chosen now to reuse some of the material for other projects and also reduce our exposure. The customer is in a fundraising period. It is taken a long time. I said before, they are playing for big bucks, not peanuts. It is taking some time.

Speaker #2: We control the assets. We haven't sent anything to them, and we had different collateral agreements in place. In this context, we've simply chosen now to reuse some of the material for other projects and also reduced our exposure.

Speaker #2: The customer is in a fundraising period. It's taken a long time. I've said before, they're playing for big, so it's taking some time. I am in daily contact with them, and I'm confident that they will be successful in the end.

Carsten Drachmann: I am in daily contact with them, and I am confident that they will be successful in the end. It is a question of timing, but we have understood how we manage this situation. Further, it was after the Q2 closing, but on 1 August, the agreement we had was that if they had not paid at that time, we will take over a significant amount of shares in that company. So we are now sitting on 30,000 shares in that company. It is not a security per se, it is simply now we control those shares, they are ours, and it is a future upside. Obviously, if the company is worth nothing, which I do not think they will be, this is not worth anything. If the company is successful going forward, well, there is an upside sitting here for GomSpace, and we have a right to convert those shares into cash.

Speaker #2: It's a question of timing, but we have understood how we manage this situation. Further, after—it was after the Q2 closing, but on August 1, the agreement we had was that if they hadn't paid at that time, we would take over a significant amount of shares in that company.

Speaker #2: So we are now sitting on 30,000 shares in that company. It's not a security per se; it's simply that we now control those shares. They are ours, and it's a future upside. Obviously, if the company is worth nothing—which I don't think they will be—then that's a different scenario.

Carsten Drachmann: So we are now sitting on 30,000 shares in that company. It is not a security per se, it is simply now we control those shares, they are ours, and it is a future upside. Obviously, if the company is worth nothing, which I do not think they will be, this is not worth anything. If the company is successful going forward, well, there is an upside sitting here for GomSpace, and we have a right to convert those shares into cash.

Speaker #2: This is not worth anything. If the company is successful going forward, well, there's an upside sitting here for GomSpace, and we have a right to convert those shares into cash.

Speaker #2: Basically, it's called a put option. We can put it back to the company, and they will have to give us cash. Once they raise the capital, that should be no problem.

Carsten Drachmann: Basically, it is called a put option. We can put it back to the company, and they will have to give us cash. Once they raise the capital, that should be no problem. It is a little bit a compensation for annoying, clearly, that this receivable has been outstanding so long. We have handled it. We do not have to take any write-downs. We have reduced the exposure by reusing the material, and we have a lot more material in control that we could reuse other places if we have to. Then as a compensation, a future upside on holding shares in that company. You can read in the report the current share price valuation is about $949. Convert that to SEK, 250-plus odd SEK today. There is no guarantee, I am not saying that is the value in the future, but this is as it is valued right now. Okay, moving on.

Speaker #2: So it's a little bit of a compensation for the annoyance, clearly, that this receivable has been outstanding so long. We have handled it. We don't have to take any write-downs.

Speaker #2: We have reduced the exposure by reusing the material, and we have a lot more material in control that we could reuse in other places if we have to.

Carsten Drachmann: We have reduced the exposure by reusing the material, and we have a lot more material in control that we could reuse other places if we have to. Then as a compensation, a future upside on holding shares in that company. You can read in the report the current share price valuation is about $949. Convert that to SEK, 250-plus odd SEK today. There is no guarantee, I am not saying that is the value in the future, but this is as it is valued right now. Okay, moving on.

Speaker #2: And then, as a compensation, a future upside on holding shares in that company. You can read in the report, the current share price valuation is about $949.

Speaker #2: Convert that to SEK—250 plus odd SEK today. There's no guarantee. I'm not saying that's a value in the future, but this is as it's valued right now.

Speaker #2: Okay, moving on. So, just to repeat: remember, we are executing in the four business units here. It's important. I see there are some questions: how are we going to make money in the future?

Carsten Drachmann: Just to repeat, remember, we are executing in the four business units here. It is important. I see there are some questions, how are we going to make money into the future? How are we going to grow? So I just want to do a little recap on these business units. If you start with product, industrial-scale engine, the revenue come by high volume sales, so thousands of products of standardized products and subsystems to different kind of integrators. The profit is driven by our manufacturing efficiency, supplies, being able to scale supply chain and repeatable production. So we keep doing more of the same, so this is good for us. I have said to you before, the margins here are good, and the cash flow is really, it is driven by inventory turnover. So this is also a business where we have to have fast delivery times.

Speaker #2: How are we going to grow? So I just want to do a little recap on these business units. If you start with product, industrial-scale union, the revenue comes by high-volume sales.

Speaker #2: So, thousands of standardized products and subsystems to different kinds of integrators. The profit is driven by our manufacturing efficiency and supply. We've been able to scale the supply chain and repeatable productions.

Speaker #2: So, we keep doing more of the same. This is good for us. I've said to you before, the margins here are good, and the cash flow is really—it's driven by inventory turnover.

Speaker #2: So, this is also a business where we have to have fast delivery times. We really need to manage our supply chain and inventory, and then we can turn it quickly into revenue and cash.

Carsten Drachmann: We really need to manage our supply chain and inventory, and then we can turn it quickly into revenue and cash. As products, it is a baseline for everything we do, and you will see that also in a later slide. It is really a core. This is all the core technology sitting here. Satellite systems is about putting together satellites on contracts. A customer wants a satellite and wants it to be read, to speak, and do this or that. This is what we do. We have to do that efficiently. This is, amongst others, where this vibration table comes in, that once we put the satellite together, it goes on this table, and we have to check that nothing falls off and everything is okay. Revenue will be the growth come, of course, from number of deals that we can close, but also driven by constellations.

Speaker #2: Products is a baseline for everything we do, and you will see that also in a later slide. It's really a core—this is all the core technology sitting here.

Speaker #2: Satellite systems is about putting together satellites on contracts across MR1s. A satellite: I want it to be red, this big, and do this or that.

Speaker #2: This is what we do. We have to do that efficiently. This is, among other things, where this vibration table comes in. Once we put the satellite together, it goes on this table, and we have to check that nothing falls off and that everything is okay.

Speaker #2: Revenue will be, the growth comes, of course, from the number of deals that we can close, but also driven by constellations. We're working towards getting larger program contracts that will run over a longer period of time.

Carsten Drachmann: We are working towards getting larger program contracts that will run over a longer period of time. We are not in a service business. We are in a hardware-software business, so our repeatable revenue over time is getting bigger contracts, which, of course, we are working for. In order to do that, we need to be able to do repeatability. We need to standardize our platforms more so that once we get the larger deals, we can also execute efficiently. Cash flow here is much more driven by milestones. Contracts have a certain lifetime, 12 months, 2 years, 3 years, and then there are privy milestones. Our job is to make sure that we are always cash flow positive, which we are in the majority of the contracts. National and Defense Solutions. This is where we see the pipeline going up a lot. We will talk a bit more about that.

Speaker #2: We're not in a service business; we are in a hardware-software business. So our repeatable revenue over time is getting bigger contracts, which, of course, we're working for.

Speaker #2: In order to do that, we need to be able to achieve repeatability. We need to standardize our platforms more so that, once we get the larger deals, we can also execute efficiently.

Carsten Drachmann: We need to standardize our platforms more so that once we get the larger deals, we can also execute efficiently. Cash flow here is much more driven by milestones. Contracts have a certain lifetime, 12 months, 2 years, 3 years, and then there are privy milestones. Our job is to make sure that we are always cash flow positive, which we are in the majority of the contracts. National and Defense Solutions. This is where we see the pipeline going up a lot. We will talk a bit more about that.

Speaker #2: Cash flow here is much more driven by milestones. Contracts have a certain lifetime—12 months, 2 years, 3 years—and then there are payment milestones.

Speaker #2: Our job is to make sure that we're always cash flow positive, which we are on the majority of the contracts—national and defense solutions.

Speaker #2: This is where we see the pipeline going up a lot. We'll talk a bit more about that. It's really driven by multi-year, mission-critical programs and contracts.

Carsten Drachmann: It is really driven by multi-year mission-critical programs and contracts, very much focused on sovereign customers, so different nations, Denmark, Germany, Indonesia, France, US. So very much driven also by defense. The profit is coming from we do more value-based selling. We are not selling satellites, we are selling solutions to troubles or problems, challenges. Our Indonesian project, which is still alive, is about protecting the fishing industry. So we are selling protection of fish and information about Chinese trawlers. We are not selling satellites, two different things. Same thing with the opportunities in Ukraine I will talk a bit about later. It is also about solving a specific problem, not just selling a satellite. Also here, the cash flow is driven by payments, where we are looking for to have advanced payments, which is normal, so that we are always cash flow positive on these programs, provided, obviously, the customer is paying.

Speaker #2: Very much focused on sovereign customers, so different nations: Denmark, Germany, Indonesia, France, US. So, very much driven also by defense. The profit is coming from—we do more value-based selling.

Speaker #2: We're not selling satellites—we are selling solutions to troubles, problems, and challenges. Our Indonesian project, which is still ongoing, is about protecting the fishing industry.

Carsten Drachmann: Our Indonesian project, which is still alive, is about protecting the fishing industry. So we are selling protection of fish and information about Chinese trawlers. We are not selling satellites, two different things. Same thing with the opportunities in Ukraine I will talk a bit about later. It is also about solving a specific problem, not just selling a satellite. Also here, the cash flow is driven by payments, where we are looking for to have advanced payments, which is normal, so that we are always cash flow positive on these programs, provided, obviously, the customer is paying.

Speaker #2: So, we are selling protection of fish and the information about Chinese trawlers. We're not selling satellites—those are different things. It's the same thing with the opportunities in Ukraine.

Speaker #2: I'll talk a bit about that later. It's also about some specific problem, not just selling a satellite. Also, here, the cash flow is driven by payments, where we are looking for.

Speaker #2: So, I have advanced payments, which is normal—so that we're always cash flow positive on these programs, provided, obviously, the customer is paying. But this is how we drive it.

Carsten Drachmann: This is how we drive it, and this is where we see the pipeline. If I look into the pipeline, it is growing for all the different business units, but this is where we see by far the largest deal sizes. This is also part of the strategy from last year that we said, "Okay, we are going to focus more on this, and we are getting better." We are recruiting more people who have more skill sets in doing these solutions, and eventually it will pay off. Advanced Missions. Remember our innovation, our capability engine here also, revenue driven by securing strategically important high-complexity missions, something new, something more difficult, tapping into the European Defence Fund budgets, ESA budgets, looking at things that are becoming the next big thing into the future.

Speaker #2: And this is where we see the pipeline. If I look into the pipeline, it's growing for all the different business units, but this is where we see by far the largest deal sizes.

Speaker #2: And this is also part of the strategy from last year that we set up. Okay, we're going to focus more on this, and we are getting better.

Speaker #2: We are recruiting more people. We have more skill sets in doing these solutions, and eventually, it will pay off—advanced missions. Remember, our innovation, our capability engine here is also revenue-driven by securing strategically important, high-complexity missions—something new, something more difficult—tapping into the European Defense Fund budgets, ESA budgets, looking at things that are becoming the next big thing in the future.

Speaker #2: It can be lunar missions. It could also be this very low Earth orbit, or it could be other technology that we see becoming dominant in the future.

Carsten Drachmann: It can be lunar missions, it could also be this very low Earth orbit, or it could be other technology that we see becoming dominant into the future. North America, this is about market presence. This is about tapping into that enormous budget that they have in the US and really focusing and hiring. We are hiring more people. I think we have about 10 people now in the US working on capturing initially some smaller mid-size deals, getting some product sales, which is a bit easier to get, and then working towards booking into some launcher programs, be they commercial or government. There is also much more commercial activity in the US, and Silicon Valley is booming with money right now, and everybody who wants to do a new service in space can get money. They are our customers, and we are focusing on that. Business unit numbers.

Speaker #2: So, North America—this is about market presence. This is about tapping into that enormous budget that they have in the US, and really focusing and hiring.

Speaker #2: We're hiring more people, as we have about 10 people now in the US working on capturing, initially, some smaller mid-sized deals, getting some product sales—which is a bit easier to get—and then working towards booking into some larger programs, be they commercial or government.

Speaker #2: There's also much more commercial activity in the US, and Silicon Valley is booming with money right now. Everybody who wants to do a new service in space can get funding.

Carsten Drachmann: There is also much more commercial activity in the US, and Silicon Valley is booming with money right now, and everybody who wants to do a new service in space can get money. They are our customers, and we are focusing on that. Business unit numbers.

Speaker #2: They are our customers, and we are focusing on that. Business unit numbers. So, on the back of that, let's dive into it. Well, first of all, revenue: 112, up about 17% from the quarter last year.

Carsten Drachmann: Well, first of all, revenue, SEK 112 million, up about 17% from the quarter last year. If you look at the distribution here, products came in at about SEK 40 million of that. Satellite systems, SEK 50 million. Advanced Mission, SEK 22 million, and North America, SEK 11 million. This is zero, and I get that question, "Hey, why do you have a business unit that has zero?" Well, the explanation is we are really focusing there, and this is where the pipeline is driving. I am cautiously optimistic about that zero won't stay there very long. Once we start getting some of those contracts in, the numbers will be quite different. We still keep it on this level here. As you can see, all the units are actually growing compared to last year. Where's the EBITDA?

Speaker #2: If you look at the distribution here, products came in at about $40 million of that, satellite systems $50 million, advanced mission $22 million, and North America $11 million.

Speaker #2: This is zero. And I get that question: "Hey, why do you have a business unit that has zero?" Well, the explanation is we are really focusing there.

Speaker #2: And this is where the pipeline is driving, and I am cautiously optimistic about that. Zero stayed there very long. Once we start getting some of those contracts in, the numbers will be quite different.

Speaker #2: But we still keep it on this level here. But as you can see, all the units are actually growing compared to last year. Where's the EBITDA?

Speaker #2: We are measuring each business unit as a standalone entity. So we are also measuring and sharing the EBITDA with you. We had 14 million overall.

Carsten Drachmann: We are measuring each business unit as a standalone entity. So we're also measuring and sharing the EBITDA with you. We had SEK 14 million overall. You can see here that the vast majority is actually coming from products. It's not a surprise. We're also doing so that our satellite systems actually have to pay something to our product business unit, which is only fair because if you don't buy it in-house, we buy it externally. So that is why we structured it like this. I've said before, remember, products, that's a higher margin. It's a different kind of business. It's customer see, customer like, order, production, ship, collect cash. Maybe collect cash first is a good idea. We do that as well. It's a very different animal where we have different margins. Satellite systems is contract business. You can have certain margins there.

Speaker #2: And you can see here that the vast majority is actually coming from products. It's not a surprise. We're also doing it so that our satellite systems actually have to pay something to our product business unit, which is only fair, because if you don't buy it in-house, you buy it externally.

Speaker #2: So that is why we've structured it like this. As I've said before, remember, products are higher margin. It's a different kind of business.

Speaker #2: It's customer C. Customer, like, order, productions, ship, collect cash—maybe collect cash first, that's a good idea. We do that as well. So, very different animal where we have different margins.

Speaker #2: Satellite systems is a contract business. You can have certain margins. They are not as high as in products, but the volume is there. You have quite a big revenue to get that.

Carsten Drachmann: They're not as high as in products, but the volume is here. You have quite a big revenue to get that. You will see better EBITDA once that volume goes up, simply by the scale of things. National & Defense Solutions right now, not making money, obviously, since they have no sale or revenue. We see that changing also. We're also expecting to see better margins here compared to satellite systems. It's okay. It's just a different game, and that's how we see it. Advanced Missions, our margins will vary a bit with what we are entering into. Overall, I'm satisfied with the EBITDA here, it's in line with what we have projected and also what we're trying to keep a profitable growth, which we have succeeded with in this quarter. Looking a bit at order intake, went SEK 240 million.

Speaker #2: You will see better EBITDA once that volume goes up, simply by the scale of things. National and Defense Solutions right now are not making money, obviously, since they have no sales or revenue.

Speaker #2: We see that changing also. We also expect to see better margins here compared to satellite systems. And it's okay. It's just a different game.

Speaker #2: And that's how we see it. For advanced missions, the margins will vary a bit depending on what we are entering into, but overall, I'm satisfied with the EBITDA here.

Speaker #2: It's in line with what we have projected and also what we're trying to achieve with profitable growth, which we have succeeded with in this quarter.

Speaker #2: Looking a bit at order intake, it went to 240 million. Yes, it's less than I thought; there were some comments on Q2 last year, but that's also where we had a large order intake.

Carsten Drachmann: Yes, it's less than I saw there were some comments on Q2 last year. That's also where we had a large order intake, so not surprised. What I'm more looking at two things. It's better than it was in the first quarter this year, and also it is higher than our revenue, which means when it's higher than our revenue, which was SEK 112 million compared to SEK 140 million, it means our backlog is going up. Backlog going up is a good thing because it gives more predictability into the future. Looking at what are the key deals, we had two more microsatellites from Unseenlabs, SEK 50 million. We had a big product order for kit sales. Remember, the kits is the IKEA bag.

Speaker #2: So, not surprised. What I'm more looking at is two things: it's better than it was in the first quarter this year, and also it is higher than our revenue. Which means, when it's higher than our revenue—which was SEK 112 million compared to SEK 140 million—it means our backlog is going up.

Speaker #2: Backlog going up is a good thing because it gives more predictability into the future, looking at what are the key deals. We had two more microsets from Unseen Labs.

Speaker #2: Fifty million. We had a big product order for kit sales. Remember, the kits are the IKEA bag. We take everything you need to build your own satellite, put it in a bag with a little description and some screws and cables, and send it to the customer. Then they can do it themselves.

Carsten Drachmann: We take everything you need to build your own satellite, put it in a bag with a little description and some screws and cables, and send it to the customer, and then they can do it themselves. This is a first. We have had some orders on this before. This is the biggest deal we have had so far on this. If you compare it to revenue, I think you saw it is at SEK 47 million for H1 for products, and then look at this order. You can see we start seeing a differentiation a bit in the order sizes in products. We still have a €5,000, €10,000 sale. This is more frequently going. Then we start seeing some bigger ticket items. Cost a bit more unpredictable, but when they are coming, they also have a big impact on the company results. Very happy with that deal.

Speaker #2: So, this is the first—we have had some orders on this before. This is the biggest deal we've had so far on this. And if you compare it to our revenue, I think you saw it was SEK 47 million for the first half for products, and then look at this order.

Speaker #2: So, you can see we start seeing a differentiation a bit in the order sizes in products. We still have €5,000, €10,000 sales.

Speaker #2: This is more frequently ongoing. And then we start seeing some bigger ticket items. Costs are a bit more unpredictable, but when they're coming, they also have a big impact on the company results.

Speaker #2: So, very happy with that deal—more CubeSats to Unseen Labs and also Ramses ESA, European Space Agency, another asteroid mission. To remember, we still have a little satellite, Juventus, flying out.

Carsten Drachmann: More CubeSats to Unseenlabs and also RAMSES, ESA, European Space Agency, another asteroid mission. Remember, we still have a little satellite, EURENUS, that is flying out. It still has to fly for some time before it gets to the asteroid, 180 million kilometers away. We are entering now more on a consulting basis in another program, which is, what is it called? Apophis or something like that. It is another asteroid that is coming close to Earth in, I believe it is in 2030 or very soon. It is going to go very close to Earth. This is a rapid mission to try and get something of it flying so we can study what does that asteroid look like when it is much closer to Earth than before. It is also a very cool mission coming in here. I have not showed you this one before.

Speaker #2: It still has to fly for some time before it gets to the asteroid, 180 million kilometers away. We're entering now more on a consulting basis in another program, which is—what's it called?

Speaker #2: Morpheus, or something like that. It's another asteroid that's coming close to Earth in—I believe it's in 2030 or very soon. It's going to go very close to Earth, and this is a rapid mission to try and get something up and flying so we can study what that asteroid looks like when it's much closer to Earth than before.

Speaker #2: So, it's also a very cool mission coming in here. Now, I haven't shown you this one before. It's in the report, but we're just looking a little bit differently at how it is distributed on order intake.

Carsten Drachmann: It is in the report, but just looking a little bit differently, how is it distributed on order intake per business unit. You can see SEK 47 million for products, SEK 74 million from satellite systems, advanced missions, and North America. Overall, our order backlog is going up. You can see where the order backlog is sitting. Right now, the largest is still in satellite systems. That is understood. That is where we have contracts that are running over a longer time. The backlog for products will never externally be. It should be a lot higher because if it gets too high, much higher, then we are not fast enough in delivering. That will always be turning quickly, whereas the satellite systems, we would like to see that it is growing for predictability.

Speaker #2: Per business unit, you can see 47 million for Products and 74 million from Satellite Systems, Advanced Missions, and North America. Overall, our order backlog is going up.

Speaker #2: You can see where the order backlog is sitting. So, right now, the largest is still in satellite systems. That's understood; that's where we have contracts that are running over a longer time.

Speaker #2: The backlog for products will never—externally, it shouldn't be a lot higher—because if it gets too high, much higher, then we are not fast enough in delivering.

Speaker #2: So that will always be turning quickly, whereas the satellite systems do like to see that it's growing for predictability. Now, here you can see what I'm saying—why we have structured it the way we do between the different product units, and actually, satellite systems and the others are shopping from products.

Carsten Drachmann: Here you can see what I am saying, why we have structured it the way we do between the different product units, and actually satellite systems and the others are shopping from products. Externally, we might have a SEK 42 million backlog. If you count all the obligations that are internally to the other business units and to on customer contract, it is a lot higher number. I better read myself, SEK 134 million. It is significantly higher. This is to imply also and show this is actually the activity level that is there in the business units. This is how we need to scale our manufacturing capacity and our supply chain. It is actually to the SEK 134 million, it is not to the SEK 42 million alone.

Speaker #2: So externally, we might have a $42 million backlog. But if you count all the obligations that are internal—to the other business units and on customer contracts—it’s a lot higher number: $100, and I better read myself, $134 million.

Speaker #2: So it's significantly higher. And this is to imply also and show this is actually the activity level, let's say, in the business unit. This is how we need to scale our manufacturing capacity, and our supply chain is actually to the 134.

Speaker #2: It's not to the 42 alone, so that's also why we do it like this. And there's some internal trading to make sure that there's a fair compensation in the products, in order to keep up the supply chain and everything going.

Carsten Drachmann: So it is also why we do it like this, and there is some internal trading to make sure that there is a fair compensation in the products in order to keep up the supply chain and everything going. Conclusion on that. So our order backlog has gone up SEK 28 million since Q1, and the order intake is outperforming the revenue for the quarter. I am pleased with that. So outlook for 2026 unchanged. Still believe that we will hit inside the range. You can ask us, and why you are not narrowing it down now. There is a lot of dynamics going on. Things are moving quickly. There could be some large product orders coming that we can ship quickly. They could also come a bit later. I just do not know now. It is hard to predict, but our best estimate is that we are hitting inside of this range with a good probability.

Speaker #2: In conclusion, our order backlog has increased by €28 million since the first quarter, and the order intake is outperforming the revenue for the quarter.

Speaker #2: I'm pleased with that. So, outlook for 2026 is unchanged. Still believe that we will hit inside the range. You can ask us, "Why are you not narrowing it down now?"

Carsten Drachmann: So outlook for 2026 unchanged. Still believe that we will hit inside the range. You can ask us, and why you are not narrowing it down now. There is a lot of dynamics going on. Things are moving quickly. There could be some large product orders coming that we can ship quickly. They could also come a bit later. I just do not know now. It is hard to predict, but our best estimate is that we are hitting inside of this range with a good probability.

Speaker #2: There's a lot of dynamics going on. Things are moving quickly. There could be some large product orders coming that we can ship quickly.

Speaker #2: They could also come a bit later. I just don't know now. It's hard to predict, but our best estimate is that we are hitting inside of this range with good profitability.

Speaker #2: You can take the first half, as we are definitely on the right track here. So, unless we totally falter in the second half of the year, there's no reason to believe that we are not doing well in this area here.

Carsten Drachmann: You can take the H1 as we are definitely on the right track here. Unless we totally falter in the H2 of the year, there is no reason to believe that we are not doing well in this area here. And the cash flow remains negative, as already projected. We see strong opportunities, particularly within National and Defense Solutions. This is where we see the big-ticket items. You will see that the business is going to be a continuous business of products. There will be some swings up and down, but that is a solid income and contribution, a margin stream there. Satellite Systems also have different deals. We announced some, SEK 50 million for Unseenlabs. For Unseenlabs, we have VirtuaLabs in Italy the previous quarter. So we will have these SEK 20 million, SEK 30 million, maybe up to SEK 80 million deals coming on a regular basis.

Speaker #2: And the cash flow remains negative, as already projected. We see strong opportunities, particularly within the national and defense solutions. This is where we see the big-ticket items.

Speaker #2: You will see that the business is going to be a continuous business of products. There will be some swings up and down, but that's a solid income and contribution.

Speaker #2: Margin stream there. Satellite systems also have different deals. We announced some €50 million for Unseen, €24 million for Unseen. We have virtual labs in Italy.

Carsten Drachmann: Satellite Systems also have different deals. We announced some, SEK 50 million for Unseenlabs. For Unseenlabs, we have VirtuaLabs in Italy the previous quarter. So we will have these SEK 20 million, SEK 30 million, maybe up to SEK 80 million deals coming on a regular basis.

Speaker #2: The previous quarter, so we will have these $20 million, $30 million, maybe up to $80 million deals coming on a regular basis. That's our bread and butter.

Carsten Drachmann: That is our bread and butter. And then we all want, I know you want, I want, we all want the same thing, the big-ticket items, and they will very much be coming through the National and Defense Solutions. That is my expectation. Now let us take a look at market momentum. So I am going to show you a slide you have seen before. I think repeat is good for clarity, and then I want to put some more markets trends and comments on this. So pay attention here. I think I will answer a number of the questions I see in the chat forum also. First of all, we are here. Satellites are redefining what is happening in the world now. Space is now frontline. Space is defense. Defense is space. That is undisputable. This is what is happening. Governments are shifting to a large extent towards sovereign assets, enabling end-to-end solutions.

Speaker #2: And then we all want—I know you want, I want—we all want the same thing: the big-ticket items, and they will very much be coming through the national and defense solutions.

Speaker #2: That is my expectation. Now, let's take a look at market momentum. So, I'm going to show you a slide you've seen before. I think repetition is good for clarity.

Speaker #2: And then I want to add some more market trends and comments on this. So please pay attention here. I think I will also answer a number of the questions I see in the chat form.

Speaker #2: First of all, we are here. Satellites are redefining what's happening in the world now. Space is now frontline. Space is defense. Defense is space.

Carsten Drachmann: First of all, we are here. Satellites are redefining what is happening in the world now. Space is now frontline. Space is defense. Defense is space. That is undisputable. This is what is happening. Governments are shifting to a large extent towards sovereign assets, enabling end-to-end solutions.

Speaker #2: That is indisputable. This is what's happening. Governments are shifting to a larger tank, towards extent, towards sovereign assets. Enabling end-to-end solutions. Like I say, we're not selling satellites.

Carsten Drachmann: Like I said, we are not selling satellites, we are selling solutions to problems, challenges. And we will also see that we should start eventually, we will see some contracts from all our efforts over the years that are multi-year in nature. So it is not just in and out, and then we have to get more sales. We always have to get more sales, but longer contracts is good for us. Now let us reflect a little bit on what we see here. Ukraine, pay attention. So we now have the satellite for the so-called UASAT, the potential satellite operator ambition in Ukraine. We have the first satellite, which is intended as an IOD, in-orbit demonstrator, where we are going to look at frequencies, measure different things to prepare for a larger constellation. Now, there is a long road to go.

Speaker #2: We're selling solutions to problems, challenges. And we'll also see that we should start—eventually we'll see some contracts from all our efforts over the years that are multi-year in nature.

Speaker #2: So it's not just in and out, and then we have to get more sales. We always have to get more sales, but longer contracts are good for us.

Speaker #2: Now, let's reflect a little bit on what we see here. Okay, Ukraine, pay attention. So, we now have the satellite for the so-called UA-SAT, the potential satellite operator ambition in Ukraine.

Speaker #2: We have the first satellite, which is intended as an IoT-in-orbit demonstrator, where we're going to look at frequencies and measure different things to prepare for a larger constellation.

Speaker #2: Now, there's a long road to go. As I've shared before, there are budgets in the EU and funding from Europe that are very positive to go to Ukraine for this.

Carsten Drachmann: As I have just shared before, there are budgets in the EU and funding from Europe that are very positive to go to Ukraine for this. We are talking directly with the Ministry of Defence and the government in Ukraine around this, but it is a process of there needs to be funding. A service operator for running it, similar to Starlink, needs to be set. It has to be in Ukraine. When that structure is in place, that customer will be our customer, who will then order satellites from us. So here we are really, truly showing you what solution selling means and market making means, because in the end, we want to sell the satellites for you as well as investors. But we have to do a lot of work to lobby to make sure that the money is flowing in the right way, and this is what we are doing.

Speaker #2: We are talking directly with the MOD and the government in Ukraine around this, but it is a process—there needs to be funding as a service operator for running it.

Speaker #2: Similar to Starlink, it needs to be set up—it has to be in Ukraine. When that structure is in place, that customer will be our customer, who will then order satellites from us.

Carsten Drachmann: When that structure is in place, that customer will be our customer, who will then order satellites from us. So here we are really, truly showing you what solution selling means and market making means, because in the end, we want to sell the satellites for you as well as investors. But we have to do a lot of work to lobby to make sure that the money is flowing in the right way, and this is what we are doing.

Speaker #2: So here, we are really, truly showing you what solution selling means and what market making means because, in the end, we want to sell a satellite for you as well as for investors, but we have to do a lot of work to allow you to make sure that the money is flowing in the right way.

Speaker #2: And this is what we're doing. The first technical step on that is to get that satellite up and flying. Right now, it's been called—as it's called.

Carsten Drachmann: The first technical step on that is to get that satellite up and flying. It is right now, it has been podded, as it is called. It has been through the vibration here, and it is on the way to the launch site, and will go up with the next Starlink or SpaceX launch in the beginning of October. So this is progressing. I know everybody wants to hear what are the numbers or when is it happening. We are working on it. It is a complicated process, as you can imagine. Ask yourself the question, when is the war in Iran ending. If you can answer that question, you can answer when this is happening also. When is the war in Ukraine ending. If you can answer that question, you can see how fast this is going.

Speaker #2: It's been through the vibration here, and it's on the way to the launch site. It will go up with the next Starlink or SpaceX launch at the beginning of October.

Speaker #2: So, this is progressing. I know everybody wants to hear what the numbers are and when it is happening. We are working on it. It's a complicated process, as you can imagine.

Speaker #2: Ask yourself the question: when is the war in Iran ending? If you can answer that question, you can answer when this is happening also.

Speaker #2: When is the war in Ukraine ending? If you can answer that question, you can see how fast this is going. It's not an impossibility, but it is a process.

Carsten Drachmann: It is not an impossibility, but it is a process, and we are taking the steps and the measures, and we are well-positioned here. Ukraine is more than that. This is one opportunity that has gone somewhat to public before. There are other opportunities that we are working with the Ukrainian government. Asia is another area speaking into those four bullets that I am mentioning here. Yes, Indonesia is alive. No, I will not answer when it is closing, but yes, Indonesia is alive. And that is for years what does cast mean. It is a project around illegal fishing in Indonesia. It is still there. We have the commercial contract is still valid. There is no end date on it, and the next step is still that the financing, direct governance, the government financing from Denmark is happening. But Indonesia has to ask for that, and this is still the process. So sorry, guys, long process.

Speaker #2: And we're taking the steps and the measures, and we are well positioned here. Ukraine is more than that. This is one opportunity that has gone somewhat to public before.

Speaker #2: There are other opportunities that we are working with the Ukrainian government. Asia is another area, speaking to those four bullets that I'm mentioning here.

Speaker #2: Yes, Indonesia is alive. No, I will not answer when it's closing, but yes, Indonesia is alive. And that's for your 'What does Gaza mean?' question.

Carsten Drachmann: No, I will not answer when it is closing, but yes, Indonesia is alive. And that is for years what does cast mean. It is a project around illegal fishing in Indonesia. It is still there. We have the commercial contract is still valid. There is no end date on it, and the next step is still that the financing, direct governance, the government financing from Denmark is happening. But Indonesia has to ask for that, and this is still the process. So sorry, guys, long process.

Speaker #2: It's the project around illegal fishing in Indonesia. It's still there. We have the commercial contract—it's still valid. There's no end date on it.

Speaker #2: And the next step is still that the financing, direct government-to-government financing from Denmark, is happening. But the Indonesians have to ask for that.

Speaker #2: And this is still a process. So, sorry guys, it's a long process. I'm not going to give up. We'll keep at it, and eventually we will see results from that.

Carsten Drachmann: I am not going to give up. We will keep at it, and eventually we will see results out of that. But Asia in general is a key market, I have said that before. Because there is not that much local industry. There is some industry in the different countries, but not really, not so much in Indonesia, not in the Philippines, not in Malaysia. Singapore has something, but actually we are the biggest provider of satellites to Singapore right now. So there is a need out in Asia, especially Southeast Asia, that is there. You can say, "But, oh, it is also big in Europe." Yes, it is. We will talk a bit about that. But in Italy, for example, Italians have a tendency to buy from Italians, and France buy in France, et cetera. So while there are bigger budgets there is also a local industry that they are keeping alive.

Speaker #2: But Asia, in general, is a key market. I've said that before because there's not that much local industry. There's some industry in the different countries, but not really.

Speaker #2: Not so much in Indonesia, not in the Philippines, not in Malaysia. Singapore has some activity, but actually, we are the biggest provider of satellites to Singapore right now.

Speaker #2: So there is a need out in Asia, especially Southeast Asia. That is there. You can say, "But, oh, it's also big in Europe." Yes, it is.

Carsten Drachmann: So there is a need out in Asia, especially Southeast Asia, that is there. You can say, "But, oh, it is also big in Europe." Yes, it is. We will talk a bit about that. But in Italy, for example, Italians have a tendency to buy from Italians, and France buy in France, et cetera. So while there are bigger budgets there is also a local industry that they are keeping alive.

Speaker #2: We'll talk a bit about that. But in Italy, for example, Italians have a tendency to buy from Italians, and in France, they buy from the French, et cetera.

Speaker #2: So while there are bigger budgets there, there is also local industry that they're keeping alive. But in Asia, not so much—not in Southeast Asia.

Carsten Drachmann: But in Asia, not so much. Not in Southeast Asia. So that's a key area for us, and you'll also see some revenue streams from there. If you go north, South Korea is very aggressive, ambitious here. We have a lot of product sales in South Korea, so that's good. And we see more programs coming from there. We have a good name in South Korea. Lars and Morten, our founders, were there when they were students. They were teaching at a university. Everybody knows Lars and Morten and GomSpace in South Korea, so that's helping us. Japan is opening up. Japan has been a fairly closed market. They're trying to do their own industry. They've done okay, but actually they haven't done as well as they should. They don't have a sovereign network for communication. They're missing capabilities.

Speaker #2: So that's a key area for us. And so you'll also see some revenue streams from there. If you go north, South Korea is very aggressive, ambitious here.

Speaker #2: We have a lot of product sales in South Korea, so that's good. And we see more programs coming from there. We have a good name in South Korea.

Speaker #2: Last and modern, our founders were there when they were students. They were teaching at the university. Everybody knows Last and Modern GomSpace in South Korea.

Speaker #2: So that's helping us. Japan is opening up. Japan has been a fairly closed market. They're trying to do their own industry. They've done okay, but actually, they haven't done as well as they should.

Speaker #2: They don't have a sovereign network for communication. They're missing capabilities. So we see an opening there also, and that is something we are starting to focus on.

Carsten Drachmann: So we see an opening there also that we are starting to focus on, and we've got to put more boots on the ground in Asia, meaning we will hire people in the Asian market to be closer. Denmark, ongoing. What to say? I think across Europe and in Denmark, I see a couple of things. The understanding of what investing in space for defense is there. The political understanding is there, and I believe the political will is there. The budgets are being put forward across Europe, also in Denmark. What's missing right now is the procurement processes have not really changed. So while the political process and budgeting process has actually moved forward, there is a lot of money flowing. There is a political will. And I'm not blaming anybody, don't take it wrong. But there is a procurement process that hasn't really changed.

Speaker #2: And we've got to put more boots on the ground in Asia, meaning we will hire people in the Asian market to be closer. Denmark.

Speaker #2: Ongoing. What to say? I think across Europe and in Denmark, I see a couple of things. The understanding of what investing in space for defense is there.

Speaker #2: The political understanding is there, and I believe the political will is there. The budgets are being put forward across Europe, also in Denmark. What's missing right now is that the procurement processes have not really changed.

Speaker #2: So, while a political process and budgeting process have actually moved forward, there is a lot of money flowing. There is political will, and I'm not blaming anybody.

Speaker #2: Don't take it the wrong way, but there is a procurement process that hasn't really changed. You can discuss why, or who's responsible for that, but it doesn't really matter.

Carsten Drachmann: You can discuss why and who's responsible for that, but it doesn't really matter. The fact is that it's sort of a ravine. It's rolling. First, the politicians understood this is needed. Government decision-makers, this is needed. And after some time, there was budgets. Now there's budgets. Now the procurement processes need to happen. So we are patiently working on here also in Denmark. I'm mentioning Germany because we have been focusing on that for some time now, trying to understand what's our place. There are some opportunities we see in Germany where we can play. Remember, it's a €35 billion investment from the government into space for defense in Germany. I just heard that it's been expanded to €42 million. It's a lot of money. It's more than the German industry can handle by themselves.

Speaker #2: The fact is that it's sort of a landslide. It's rolling. First, the politicians understood this is needed. Government decision makers, this is needed.

Speaker #2: And after some time, there were budgets. Now there are budgets. Now the procurement processes need to happen. So we are patiently working here also in Denmark.

Speaker #2: I'm mentioning Germany because we have been focusing on that for some time now, trying to understand what our place is. There are some opportunities we see in Germany where we can play.

Speaker #2: Remember, it's a €35 billion investment from the government into space for defense in Germany. I just heard that it's been expanded to €42 billion.

Speaker #2: There's a lot of money. It's more than the German industry can handle by themselves. The interesting part for us is that we're saying, okay, where do we play?

Carsten Drachmann: The interesting part for us is that we're saying, "Okay, where do we play?" We start seeing some openings. I want to reference a large prime. Let's just call it that. We met with, we're meeting with a lot of potential partners in Germany, who came to us and say, "Let's talk more." And say, "Okay, let's talk more. Why do you want to talk to us?" They say, "You know what? When we analyzed the whole German market for the type of satellites that you're representing and building, you are actually more mature than most of the rest of the German market." So you can imagine we were smiling and saying, "Okay." So this is also playing a bit into the old Indra case. I know you want some news on that. They're still working on budget, so there's not a lot of progress there.

Speaker #2: We are starting to see some openings. I want to reference a large prime—let's just call it that. We met with, we're meeting with a lot of potential partners in Germany.

Speaker #2: They came to us and said, "Let's talk more." And we said, "Okay, let's talk more. Why do you want to talk to us?" And they said, "You know what..."

Speaker #2: When we analyze the whole German market for the type of satellites that you're representing and building, you're actually more mature than most of the rest of the German market.

Speaker #2: So you can imagine we were smiling and saying, okay, so this is also playing a bit into the old intra-case. I know you want some use on that.

Speaker #2: There is still work being done on the budget, so there's not a lot of progress there. But remember, back in the day, some of you had disputes with India.

Carsten Drachmann: But remember, back in the day, some of you disputed Indra. They did not like what we were doing. Big subdued are not nice. In the end, they came back after a year and a half, and paid us 20 million SEK and said, "Actually, we have been around the world. You guys are actually pretty good, and we are sorry, and now we want to work more," which resulted in we have launched their satellite with them. This is an example also. We were happy to hear that, and encouraging us to go even more towards Germany. You can ask me, when are you closing deals? I do not know. But what I do know is that the pipeline is growing and opportunity is also there in Germany. Next one is deep space. I talked about the ESA RAMSES asteroid mission. Remember, Blue Origin is here also.

Speaker #2: They didn't like what we were doing. Big to-do—down, not nice. And in the end, they came back after a year, year and a half, and paid us 20 million SEK and said, actually, we've been around the world.

Speaker #2: You guys, we're actually pretty good. And we are sorry. And now we want to work more, which resulted in us launching a satellite with them.

Speaker #2: This is an example also. We were happy to hear that, and it encouraged us to go even more towards Germany. You can ask me, when are you closing deals?

Speaker #2: I don't know. But what I do know is that the pipeline is growing and there are also opportunities in Germany. Next one is Deep Space.

Speaker #2: I talked about the ESA RAMSES asteroid mission. Remember, Blue Origin is here also—not to forget all the good things we've been doing. We announced the first phase with Blue Origin earlier in the year.

Carsten Drachmann: Not to forget all the good things we have been doing. We announced the first phase with Blue Origin earlier in the year, and obviously we are expecting there will be a second phase as well for a lunar mission. This is run out of Luxembourg. It is also funded from the Luxembourg government, actually. So this is pretty cool. Well, why is it that Luxembourg is investing in lunar missions? Weird. Well, the lunar mission is about mapping out the minerals on the Moon for potential future mining. What is Luxembourg? If you go back in history, some of you are strong on that. Pick it up on the chat forum. Luxembourg is actually the mining heart of Europe. So they have a vision to say, "We used to be great. Our biggest income is from mining in the past.

Speaker #2: And obviously, we are expecting that there will be a second phase as well for a lunar mission. This is run out of Luxembourg and is also funded by the Luxembourg government, actually.

Speaker #2: So this is pretty cool. By the way, Pop Chris, why is it that Luxembourg is investing in lunar missions? Weird. Well, the lunar mission is about mapping out the minerals on the moon for potential future mining.

Speaker #2: What is Luxembourg? If you go back in history, some of you are strong on that. Pick it up on the chat forum. Luxembourg is actually the mining heart of Europe.

Speaker #2: So, they have a vision to say, 'We used to be great. Our biggest income was from mining in the past. Let's make it so in the future.'

Carsten Drachmann: Let us make it so in the future." So that is why they are investing. It is a bit curious why it is Luxembourg, but they do. They are serious about it. So there you go. There is more opportunity here. Products, I have also said that we will see there will be more product revenue coming, because when the whole market is growing, and since we are catering to the whole market, also our competitors, sheer by growth and keeping our market share and our brand out there, we should see a growing revenue stream here. The large kit order we got, the largest we have had so far, is a confirmation of that. If you can imagine, I said that 34 million out of the current revenue of 50 million in a half year, it is a pretty big deal, and they come with good contribution. So we need more of those.

Speaker #2: So that's why they're investing. It's a bit, why is Luxembourg? But they do. We have a series about it, so there you go. There is more opportunity here.

Speaker #2: Products. I've also said that we will see there will be more product revenue coming, because when the whole market is growing and since we're catering to the whole market, also our competitors, sheer by growth and keeping our market share—our brand out there—we should see revenue, growing revenue stream here.

Speaker #2: The large kid order we got is the largest we've had so far—it's a confirmation of that. You can imagine I said that's 34 million out of current revenue, or 50 million in a half year.

Carsten Drachmann: The large kit order we got, the largest we have had so far, is a confirmation of that. If you can imagine, I said that 34 million out of the current revenue of 50 million in a half year, it is a pretty big deal, and they come with good contribution. So we need more of those.

Speaker #2: It's a pretty big deal, and they come with good contribution. So we need more of those. There will be a bit more lumpy—some will come in one quarter and then nothing.

Carsten Drachmann: They will be a bit more lumpy. There will come some in one quarter and then nothing, and then there will come two in the next quarter. So it will be a bit more lumpy, but nevertheless, once they are coming, they are very good for us. Then volume scalability will become a competitive advantage. We have to be able to scale our production. We can do a lot, and we can still do. We have a lot of capacity here. We just built our vibration table for larger satellites. But going into larger satellites, if we really pick up on larger deals. We need to have a more scalable supply chain. We need to understand, we have to invest more in also managing supply chain inventory. We will have to expand eventually our production capability. It goes without saying. So therefore, what is a negative cash flow, Carsten?

Speaker #2: And then there will come two in the next quarter. So it’ll be a bit more lumpy, but nevertheless, once they’re coming, they are very good for us.

Speaker #2: Then volume and scalability will become a competitive advantage. We have to be able to scale our production. We can do a lot, and we still have a lot of capacity here.

Speaker #2: We just built our vibration table for larger satellites. But going into larger satellites, if we really pick up on larger deals, we need to have a more scalable supply chain.

Speaker #2: We need to understand that we have to invest more in also managing supply chain inventory. We will have to eventually expand our production capability. It goes without saying.

Carsten Drachmann: We need to understand, we have to invest more in also managing supply chain inventory. We will have to expand eventually our production capability. It goes without saying. So therefore, what is a negative cash flow, Carsten?

Speaker #2: So therefore, what's a negative cash flow cost? And well, it is related, among others, to this also—the investment. And now we have proof. It's here.

Carsten Drachmann: Well, it is related, amongst others, to this also, the investment, and now we have proof. It is here, so I am not lying. Actually put some millions into this one. But we need to be able to scale. It is not just about the physical production capacity, it is also how do we handle our supply chain, how do we make sure that long lead items are critical components, that we can get them also in volume when those deals comes in. Last one, roll-up and consolidation will happen. We have a plan to be the ones that are rolling up and consolidating others, and I do not see any reason that we need to be consolidated at this stage. I think we have much more good time in front of us than looking for that right now. Okay. I hope you pay attention.

Speaker #2: So I'm not lying. Actually, we put some millions into this one. But we need to be able to scale. It's not just about physical production capacity.

Speaker #2: It's also, how do we handle our supply chain? How do we make sure that long lead items and critical components—that we can get them, also in volume, when those deals come in?

Speaker #2: Last one, roll-up and consolidation will happen. We don’t—we have a plan to be the ones that are rolling up and consolidating others, and I don’t see any reason that we need to be consolidated at this stage.

Speaker #2: I think we have many good times, much more good times in front of us than looking for that right now. Okay. So, I hope you pay attention.

Speaker #2: I'm trying to answer a lot of your questions and give you an idea of where the revenue will come from going into the second half of the year and also into the coming years.

Carsten Drachmann: I was trying to answer a lot of your questions and give you an idea of where will the revenue come from, going into the H2 and also into the coming years. Okay, so summarizing it so we can get to questions. We keep our forecast and our guidance for the year. We have a 30% growth year-on-year in the H1. EBITDA is a nice 11%, with a net profit of $28 million. Remember, the market is growing with 15%, 14%, so anything above that is better than market. Right now we are double, so quite okay with that. Cash flow negative as anticipated. We have money in the bank at the end of the quarter. Order backlog improved from quarter to quarter here, from Q1 to Q2.

Speaker #2: Okay, so summarizing so we can get to questions: we keep our forecast and our guidance for the year. We have 30% growth year-on-year in the first half of the year.

Speaker #2: EBITDA is a nice 11%, with a net profit of $28 million. Remember, the market is growing at 15%, 14%. So anything above that is better than the market.

Speaker #2: Right now, we're doubled, so we're quite okay with that. Cash flow is negative, as anticipated. We have money in the bank at the end of the quarter.

Speaker #2: Order backlog improved from quarter to quarter here, from Q1 to Q2. And we have the higher, obviously, because we had a higher order intake than we had revenue.

Carsten Drachmann: We had a higher, obviously because we had a higher order intake than we had revenue. Balance sheet improved. Again, thank you to Peter Hargreaves for supporting GomSpace, all of you investors. This is a good thing for you. So now we have a solid 41% equity ratio. Michael, over to you.

Speaker #2: And the balance sheet improved. Again, thank you to Peter Hagrid for supporting just GomSpace, and all of you investors. This is a good thing for you.

Speaker #2: So, now we have a solid 41% equity ratio. Michael, over to you.

Speaker #1: Yeah, but you have already made my job much easier, Carsten. I think you took a lot in advance. There's a question about the statement.

[Analyst] (Inderes/HC Andersen Capital): Yeah, but you have already done my job much easier, Carsten. I think you took a lot in advance. There is a question about STETMAN. You talked there was which milestones, technical, contractual, and financial. Financial, that is the funding from EU and so on, if I should understand that correct.

[Analyst] (HC Andersen Capital): Yeah, but you have already done my job much easier, Carsten. I think you took a lot in advance. There is a question about STETMAN. You talked there was which milestones, technical, contractual, and financial. Financial, that is the funding from EU and so on, if I should understand that correct.

Speaker #1: You talked that there were milestones—technical, contractual, and financial. Financial, that's the funding from the EU and so on, if I understand that correctly.

Carsten Drachmann: Yeah.

Speaker #1: Technical—that is, you ship it up and show that it will work before that. And then maybe contractually, this joint venture, you might see you are selling a service provider.

[Analyst] (Inderes/HC Andersen Capital): Technical, that is you shipping it off and showing it, that it will work before that. Then maybe contractual. This joint venture, you might see you are selling a service provider. Can you elaborate a little bit on, is it the joint venture who will be a service provider or

[Analyst] (HC Andersen Capital): Technical, that is you shipping it off and showing it, that it will work before that. Then maybe contractual. This joint venture, you might see you are selling a service provider. Can you elaborate a little bit on, is it the joint venture who will be a service provider or

Speaker #1: Can you elaborate a little bit on whether it is the joint venture that will be the service provider, or could you provide a little bit more understanding there?

Carsten Drachmann: Yeah

[Analyst] (Inderes/HC Andersen Capital): maybe a little bit more understanding there.

[Analyst] (HC Andersen Capital): maybe a little bit more understanding there.

Speaker #2: Yes. Yeah, let me clarify. So no, the joint venture is not the service provider. The service provider would be something like Starlink. Those of you who are familiar with Ukraine know there's a company called Kyivstar, but you can compare it to Telenor here in Denmark as an operator.

Carsten Drachmann: Well, let me clarify. So no, the joint venture is not the service provider. Service provider would be something like Starlink. Those of you who are familiar with Ukraine, there is a company called Kyivstar, but you can compare it to Telenor here in Denmark as an operator. So that would be the operator, and that needs to be set up, and this is where the money is going to flow in. Money flows into the operator.

Speaker #2: So, that would be the operator, and that needs to be set up. This is where the money is going to flow in—money flows into the operator.

[Analyst] (Inderes/HC Andersen Capital): Yes.

[Analyst] (HC Andersen Capital): Yes.

Speaker #2: The operator needs something to operate—I need satellites. Okay, so they will go out and buy satellites from GomSpace, together with Statman or potentially others in this joint venture.

Carsten Drachmann: Operator needs something to operate and need satellites. Okay. So they will go out and buy satellites from GomSpace together with STETMAN and potentially others in this joint venture. The reason we have a joint venture is that it needs to be anchored in Ukraine, and while we

Speaker #2: The reason we have a joint venture is that it needs to be anchored in Ukraine. And while these. Yeah. And while we do the first satellites in a very lucky out of our production here in Aalborg, over time it is supposed to be a Ukrainian sovereign asset.

[Analyst] (Inderes/HC Andersen Capital): In Ukraine. Yes.

[Analyst] (HC Andersen Capital): In Ukraine. Yes.

Carsten Drachmann: While we do the first satellites, very likely out of our production here in Aalborg, over time, it is supposed to be a Ukrainian sovereign asset. So we also want to move a production to Ukraine using our technology. The vision is also this is needed now where Ukraine is in peril and in a very difficult situation. But it is also a vision to be a future operator, so there is going to be future business for Ukraine. We are part of setting this up. It is a fantastic job to do. It is hard, it is hard, but the demand is there and the willingness from EU is there. But again, we are talking big bucks, so it is not

Speaker #2: So we also want to move production to Ukraine using our technology. And the vision is also—this is needed now, when Ukraine is in peril and in a very difficult situation.

Speaker #2: But it is also a vision to be a future operator, so there's going to be future business for Ukraine. We're part of setting this up.

Speaker #2: It's a fantastic job to do. It's hard. It's hard, but the demand is there and the willingness from the EU is there. But again, we're talking big bucks.

Speaker #2: So, it's not solved in one day. But we are on track now to get some technology flying for the future.

[Analyst] (Inderes/HC Andersen Capital): Yeah

[Analyst] (HC Andersen Capital): Yeah

Carsten Drachmann: solved in one day. But we are on a track now to get some technology flying for the first time.

[Analyst] (Inderes/HC Andersen Capital): The contractual part is actually maybe more surrounding the service provider right now, if I should understand.

[Analyst] (HC Andersen Capital): The contractual part is actually maybe more surrounding the service provider right now, if I should understand.

Speaker #1: So the contractual part is actually maybe more surrounding the service provider right now, if I should ask.

Carsten Drachmann: First set of service provider needs to come up and running, and it will take some time, but once they are up and running, then they can start placing orders for satellites.

Speaker #2: First, the service provider needs to get up and running, and that will take some time. But once they're up and running, they can start placing orders for satellites.

Speaker #1: And what you're telling me—new, or maybe not—the investors who follow you very, very closely, is that this could actually be a European-run Starlink.

[Analyst] (Inderes/HC Andersen Capital): What you are telling me, you, and maybe not the investors, they follow you very, very closely, is that could actually be a European run Starlink.

[Analyst] (HC Andersen Capital): What you are telling me, you, and maybe not the investors, they follow you very, very closely, is that could actually be a European run Starlink.

Carsten Drachmann: Yeah, a Ukrainian run. No, Ukrainian run Starlink. Yeah.

Speaker #2: Yeah, but the Ukrainians run. No, the Ukrainians run Starlink.

Speaker #1: Yeah, Ukrainian run, but it could actually be selling to all of Europe if we feel that they are our backbone of defense in Europe.

[Analyst] (Inderes/HC Andersen Capital): Yeah, Ukrainian run, but it could actually be selling to all of European.

[Analyst] (HC Andersen Capital): Yeah, Ukrainian run, but it could actually be selling to all of European.

Carsten Drachmann: Yeah.

[Analyst] (Inderes/HC Andersen Capital): If we feel that they are our backbone now.

[Analyst] (HC Andersen Capital): If we feel that they are our backbone now.

Carsten Drachmann: Absolutely.

[Analyst] (Inderes/HC Andersen Capital): Defense in Europe.

[Analyst] (HC Andersen Capital): Defense in Europe.

Speaker #2: Absolutely. The Danish government could buy services as well. It's just a question of the number of satellites that you send out. But the initial focus is to cover Ukraine.

Carsten Drachmann: The Danish government could buy services as well. It is just a question of the number of satellites that you send up.

[Analyst] (Inderes/HC Andersen Capital): Yeah.

[Analyst] (HC Andersen Capital): Yeah.

Carsten Drachmann: The initial focus is to cover Ukraine.

[Analyst] (Inderes/HC Andersen Capital): Of course

[Analyst] (HC Andersen Capital): Of course

Carsten Drachmann: with a certain amount of satellites that I am not commenting on, but a certain amount of satellites. Go Google how many satellites are needed to run a network over a country. People can do set ChatGPT, and then if you want to have a global coverage, you need more obviously, but that is step two.

Speaker #2: With a certain amount of satellites, that I'm not commenting on, but a certain amount of satellites. Go Google how many satellites are needed to run a network over a country.

Speaker #2: People can use ChatGPT, and then if you want to have global coverage, you need more, obviously. But that's step two.

Speaker #1: Okay. And then, of course, I think you already answered this on the EDRA and the STARS call. As we say, they are starting to be a more vertically integrated company.

[Analyst] (Inderes/HC Andersen Capital): I think you already answered this on the Indra and the Startical. As we say, they are starting to be a more vertically integrated company. But the question here is could you still be a platform subsystem supplier when Indra scales in the future? So the direct question is that still a possibility even if they are going more vertically integrated?

[Analyst] (HC Andersen Capital): I think you already answered this on the Indra and the Startical. As we say, they are starting to be a more vertically integrated company. But the question here is could you still be a platform subsystem supplier when Indra scales in the future? So the direct question is that still a possibility even if they are going more vertically integrated?

Speaker #1: But the question here is, could you still be a platform subsystem supplier when Indos scales in the future? So the direct question is, is that still a possibility even if they're going more vertically integrated?

Speaker #2: Yeah, let's divide it up. Indo is definitely a potential customer for us in the future as well, delivering technology or full platforms, whatever. It depends—the question is a bit about the direction they go.

Carsten Drachmann: Yeah, let us divide it up. Indra is definitely a potential customer for us into the future as well, delivering technology or full platforms, whatever. It depends, the question is a bit the direction they go. Just to be clear that the customer we have is called Startical. Startical. And they are a joint venture between Indra and I believe it is the Spanish port authorities. So that is a joint venture, and this venture needs money in order to progress what we have been doing. But Indra is behind it, and the question is, will they take over? Are they going to say, "Okay, we are going to do this. We are going to fund it"? Somebody has to fund it. Somebody needs to commit to build this network. And we are still there. We are in a dialogue. Our satellite is flying, it is working, it is being tested, and we are in a regular conversation.

Speaker #2: Just to be clear, the customer we have is called Starcycle. Yeah, Starcycle. And they are a joint venture between Indra and—I believe—the Spanish airport authorities.

Speaker #2: So that's a joint venture. And this venture needs money in order to progress what we've been doing. But Indra is behind it. And the question is, will they take over?

Carsten Drachmann: But Indra is behind it, and the question is, will they take over? Are they going to say, "Okay, we are going to do this. We are going to fund it"? Somebody has to fund it. Somebody needs to commit to build this network. And we are still there. We are in a dialogue. Our satellite is flying, it is working, it is being tested, and we are in a regular conversation.

Speaker #2: Are they going to say, okay, we're going to do this, we're going to fund it? Somebody has to fund it, right? Somebody needs to commit to build this network.

Speaker #2: And we're still there. We're in a dialogue. Our satellite is flying, it's working, it's being tested, and we are in regular conversation. But again, as with many of these larger programs, it's about budget.

Carsten Drachmann: But again, as many of these larger programs, it is about budget. Either you are a commercial startup operator like our good customer, hope customer for many years, has not yet paid. They are working to get capital for commercial startup. When it is government business, an air traffic control is very likely going to be funded from a government. It just takes time. Look at Denmark, how long time it takes. These are the processes we are in. But our job and what we are doing right now is we are preparing for all of that. We are making sure we have technology, the competencies, we are out talking to everybody, and we are also starting to build this trusted relationship where we are actually helping shape what should Ukraine buy, and they are starting to ask us, as an example.

Speaker #2: Either you are commercial startup operator like our good customer, hope customer for many years hasn't yet paid. They are working to get capital for commercial startup.

Speaker #2: When it's government business and they have traffic control, it's very likely going to be funded from a government. That takes time. Look at Denmark, how long it takes.

Speaker #2: So these are the processes we are in. But our job, and what we're doing right now, is we're preparing for all of that.

Speaker #2: We're making sure we have the technology, the competencies, we have to talking to everybody. And we're also starting to build this trusted relationship where we are actually helping shape what Ukraine should buy, and they're starting to ask us.

Speaker #2: As an example.

[Analyst] (Inderes/HC Andersen Capital): Perfect. Then, of course, a lot of questions surrounding this receivable and so on, and the collateral you took in here. I think actually, I am not really sure how much more you can add there. So maybe a little bit on the valuation part. Is that because you kind of know they are in a funding process, so you kind of know some valuation? So when you say you have this amount of shares, the value here, and then the question, of course, all surrounding how do we get it? If I understand you correct, you had a put option that actually would let the company, if they get funded, buy back the shares. But a little bit on the number you put up here.

[Analyst] (HC Andersen Capital): Perfect. Then, of course, a lot of questions surrounding this receivable and so on, and the collateral you took in here. I think actually, I am not really sure how much more you can add there. So maybe a little bit on the valuation part. Is that because you kind of know they are in a funding process, so you kind of know some valuation? So when you say you have this amount of shares, the value here, and then the question, of course, all surrounding how do we get it? If I understand you correct, you had a put option that actually would let the company, if they get funded, buy back the shares. But a little bit on the number you put up here.

Speaker #1: Perfect. And then, of course, there are a lot of questions surrounding this receivable and the collateral. You took in here—I think actually I'm not really sure how much more you can ask.

Speaker #1: There's maybe a little bit on the valuation part. Is that because you kind of know they are in a funding process, so you kind of know some valuation?

Speaker #1: So, when you say you have this amount of shares at that value here, then the question, of course, is also surrounding how will you get it?

Speaker #1: And if I understand you correctly, you had a put option that actually would let the company, if they get funded, buy back the shares.

Speaker #1: But a little bit on the number you put up here—is that because there are some indications when they are picking up, when they are fundraising right now? So there will always be some numbers swimming around on the valuation.

Carsten Drachmann: Yeah.

[Analyst] (Inderes/HC Andersen Capital): Is that because there are some indications when they are fundraising right now, so there will always be some numbers swimming around on the valuation?

[Analyst] (HC Andersen Capital): Is that because there are some indications when they are fundraising right now, so there will always be some numbers swimming around on the valuation?

Speaker #2: Yeah. So let me answer that with a disclaimer. I cannot give any guarantee that these shares will have any value in the future. But it is an upside, and I want to separate it—it's not a security for what they haven't paid.

Carsten Drachmann: Well, let me answer that with a disclaimer. I cannot give any guarantee that these shares have any value in the future, but it is an upside, and I want to separate it from, it is not a security for what they have not paid. We actually hold assets. There are actual satellites that they have not paid for. We control those. So that is actually our collateral. That is why we are not taking a write-off, but we keep it alive.

Speaker #2: We actually hold the assets. There are actual satellites that they haven't paid for. We control those, so that's actually our collateral. That's why we're not taking a write-off, but we keep it alive.

[Analyst] (Inderes/HC Andersen Capital): Yeah.

[Analyst] (HC Andersen Capital): Yeah.

Speaker #2: Those shares are basically a bonus. They haven't paid in time by August 1, so big bonus for everybody, including you investors. But we don't know what it will be.

Carsten Drachmann: Those shares are basically a bonus. They have not paid in time by 1 August. Big bonus for everybody, including you investors, but we do not know what it will be. You are right, in terms of it is described on page 33, so you can read more about it there. There is a share price of $949 per share. This is how they have been. They have been raising capital. It is not like they have received nothing, but they have not received enough. We have a documentation. This is the current share price and valuation. That is of course what we are looking at. If you look specifically for the H1, we have recognized a few shares. Page 33, you can read it. We put them in at value at $949. Disclaimer, I cannot guarantee you that it will be that in the future.

Speaker #2: And you're right, in terms of—it's described on page 33, so you can read more about it there. There is a share price of 949 per share.

Speaker #2: This is how they have been raising capital. It's not like they have received nothing, but they haven't received enough. So we have documentation.

Speaker #2: This is the current share price and valuation, so that is of course what we are looking at. And if you look specifically at the first half-year, we have recognized a few shares.

Speaker #2: Page 33, you can read it. And we put them in at that value at 949. Disclaimer: I cannot guarantee you that it will be that in the future.

Speaker #2: It could be nothing if they are not successful; they have a different story. It could be a lot more if they're very successful. I just don't know.

Carsten Drachmann: It could be nothing if they are not successful, they have a different story. It could be a lot more if they are very successful. I just do not know. Look at it as a nice upside.

Speaker #2: So, look at it as a nice upside.

[Analyst] (Inderes/HC Andersen Capital): Nice upside.

[Analyst] (HC Andersen Capital): Nice upside.

Speaker #1: Not nice upside. And you have the collateral in the satellites, and maybe that's also why we're seeing your inventory go a little bit up.

Carsten Drachmann: Yeah.

[Analyst] (Inderes/HC Andersen Capital): You have the collateral in the satellites, and maybe that is also why we are seeing your-

[Analyst] (HC Andersen Capital): You have the collateral in the satellites, and maybe that is also why we are seeing your-

Carsten Drachmann: Correct

[Analyst] (Inderes/HC Andersen Capital): inventory go a little bit up. Perfect. I think that is kind of, you alluded to this. They ask you to name the company and so on, so people can feel more comfortable. I am not sure you want to.

[Analyst] (HC Andersen Capital): inventory go a little bit up. Perfect. I think that is kind of, you alluded to this. They ask you to name the company and so on, so people can feel more comfortable. I am not sure you want to.

Speaker #1: Perfect. I think that's—kind of as you alluded to—this. They ask you to name the company and so on, so people can feel comfortable.

Speaker #1: More comfortable I'm not sure.

Carsten Drachmann: No. I want to also say I speak with them every day, including some of their large investors. So we are very close to them. We understand what they are doing. I know where they are today. I know where the CEO is, and I always talk to. So we are very close to them. We have no interest in sharing that because we are going to go public, and that might jeopardize their capital raise for whatever reason. We have no interest. It is not in your interest either to know.

Speaker #2: Oh, we believe— I want to also say I speak with them every day, including some of their large investors. So, I'm very close to them.

Speaker #2: We understand what they're doing. I know where they are today. I know where the CEO is. I know who he's talking to. So we're very close to them.

Speaker #2: We have no interest in sharing that because it's going to go public, and that might jeopardize their capital raise, for whatever reason. So we have no interest.

Speaker #2: It's not in your interest either to know. Just take it as an upside, and then let them be successful—and they will be successful.

[Analyst] (Inderes/HC Andersen Capital): No, no.

[Analyst] (HC Andersen Capital): No, no.

Carsten Drachmann: Just take it as an upside, and then let them be successful, and they will be successful.

Speaker #1: Yeah. Then there's a question: When do we see the best development for one of the four business units for next year? We're looking into it.

[Analyst] (Inderes/HC Andersen Capital): Yeah. Then there is a question. When do we see the best development for one of the four business units for the next year? Looking into it. Not that we are asking you to guide in each area, but where do we see the best opportunities? Are these national defense

[Analyst] (HC Andersen Capital): Yeah. Then there is a question. When do we see the best development for one of the four business units for the next year? Looking into it. Not that we are asking you to guide in each area, but where do we see the best opportunities? Are these national defense

Speaker #1: Not that we are asking you to guide in each area, but where do we see the best opportunities? Are these national defense?

Carsten Drachmann: National and Defense Solutions.

Speaker #2: National defense, yeah. Let me say, not the best—let's say the biggest, the big ticket items are national defense solutions. There are lots of good opportunities also for satellite systems, for advanced missions.

[Analyst] (Inderes/HC Andersen Capital): involved, so.

[Analyst] (HC Andersen Capital): involved, so.

Carsten Drachmann: Yeah. Let me say not the best. Let us say the big ticket items is National and Defense Solutions. There are lots of good opportunities also for satellite systems for advanced missions. We talked a bit about Blue Origin. There is going to be a continuation of that contract. It is no secret, it is out in the press release. That is what we are expecting. We also see product pipeline keeps evolving and growing. But like I say, every time we close something, we ship in a quarter or faster, and then we add it again. So we see good opportunities, many places. The big ticket items are in National and Defense Solutions. I think the way to look at it is that what you see now is bread and butter. I am very happy with the Q1 because, at the H1, because we are really delivering on target.

Speaker #2: We talked a bit about Blue Origin. There's going to be a continuation of that contract. It's no secret—it's out in the press release.

Speaker #2: That's what we're expecting. We also see the product pipeline keeps evolving and growing. But every time it grows, there's something we ship in a quarter or faster, and then we add it again.

Carsten Drachmann: But like I say, every time we close something, we ship in a quarter or faster, and then we add it again. So we see good opportunities, many places. The big ticket items are in National and Defense Solutions. I think the way to look at it is that what you see now is bread and butter. I am very happy with the Q1 because, at the H1, because we are really delivering on target.

Speaker #2: So, we see good opportunities in many places. The big ticket items are in national defense solutions. And I think the way to look at it is that what you see now is bread and butter.

Speaker #2: I'm very happy with the first quarter, and the first half, because we're really delivering on target. But all of that is coming from these, let's say, small to mid-size deals, and we're just starting to sniff at the larger deals.

Carsten Drachmann: But all of that is coming from these, let's say, small to mid-size and slightly sniffing at the larger deals. But we can keep a growth on that. And of course, we are waiting patiently. I know you are impatient, so am I. But we are waiting patiently for the big ticket deal that is going to give us a jump and change the dynamics. But they take time.

Speaker #2: But we can keep a close eye on that. And of course, we are waiting patiently—I know you're impatient; so am I—but we are waiting patiently for the big-ticket deal that's going to give us a jump and change the dynamics.

Speaker #2: But they take time.

Speaker #1: And actually, maybe we should stop asking these questions because if I understand, you're building the company. You have something as a base, so if you need to scale up your production, you need some kind of a base case going—a base tune, I would say—to the products and the satellite systems, and then being prepared for potential big ticket items that can come in some of the others.

[Analyst] (Inderes/HC Andersen Capital): And actually, maybe we should stop asking these questions because if I should understand you are building the company, you have something as a base. If you need to scale up your production, you need some kind of a base case going.

[Analyst] (HC Andersen Capital): And actually, maybe we should stop asking these questions because if I should understand you are building the company, you have something as a base. If you need to scale up your production, you need some kind of a base case going.

Carsten Drachmann: Yeah.

[Analyst] (Inderes/HC Andersen Capital): A base tune, I would say, through the products and the satellite systems, and then-

[Analyst] (HC Andersen Capital): A base tune, I would say, through the products and the satellite systems, and then-

Carsten Drachmann: Yeah

[Analyst] (Inderes/HC Andersen Capital): being prepared for potential big-ticket items that can come in some of the others. I guess, is that how you kind of think of your setting of the company right now?

[Analyst] (HC Andersen Capital): being prepared for potential big-ticket items that can come in some of the others. I guess, is that how you kind of think of your setting of the company right now?

Speaker #1: I guess—is that how you kind of think of setting up the company right now?

Speaker #2: Yes, yeah, absolutely. And that's also why we show this. It's interesting, right? The external backlog for our products was, I believe, 49 million—47 million.

Carsten Drachmann: Yeah, absolutely. That is also why we show this interesting ride that the external backlog for our products was, I believe, SEK 49 million, SEK 47 million. But if you look at it internally, the demand from the other business units

Speaker #2: But if you look at it internally, the demand from the other business units is actually quite high. So that's showing how we need to manage the supply chain.

[Analyst] (Inderes/HC Andersen Capital): Yes

[Analyst] (HC Andersen Capital): Yes

Carsten Drachmann: is actually quite high. So that is showing how we need to manage the supply chain. Some items are expensive or longer lead times, et cetera. So it is becoming really a supply chain game very much so. So we have to look at our pipeline and understand that National Defense Solutions will take a big contract, but it has a consequence for everybody in the company. It is not just isolated there.

Speaker #2: Some items are expensive or have longer lead times, etc. So, it's becoming really a supply chain game very much. So, we have to look at our pipeline and understand that national defense solutions will make a big contract.

Speaker #2: But it has a consequence for everybody in the company. It's not just isolated there.

Speaker #1: No, no, no. And then, actually, on the defense solutions, and I don't know, one of you could go into—you're indicating good margins, better maybe than satellite system.

[Analyst] (Inderes/HC Andersen Capital): No. Then actually on the defense solutions, I do not know, want to go into it, you are indicating good margins, better maybe than satellite systems. Why not better than products also? At some point in time, you will mention and we need to model it, I guess solutions

[Analyst] (HC Andersen Capital): No. Then actually on the defense solutions, I do not know, want to go into it, you are indicating good margins, better maybe than satellite systems. Why not better than products also? At some point in time, you will mention and we need to model it, I guess solutions

Speaker #1: Why not better than products also? At some point in time, you will, and we need to model it. I guess solutions, if it's a total solution, must always carry better margins than—I don't know whether you want to go so far and indicate to us—and then as long as you don't have any in the books, maybe you don't want to front-run that.

Carsten Drachmann: Yeah

[Analyst] (Inderes/HC Andersen Capital): because total solution must always carry better margins than I do not know whether you want to go so far and indicate to us, and I know as long as you do not have any in the books, maybe you do not want to front run that, but us thinking about it, solutions must carry higher margins or is that wrong?

[Analyst] (HC Andersen Capital): because total solution must always carry better margins than I do not know whether you want to go so far and indicate to us, and I know as long as you do not have any in the books, maybe you do not want to front run that, but us thinking about it, solutions must carry higher margins or is that wrong?

Speaker #1: But us thinking about it, solutions must carry higher margins or longer.

Speaker #2: Yeah. No, no, no, no. And that's what I've been saying also. I wouldn't compare it to products, because products are very transactional, like I said.

Carsten Drachmann: Yeah. No. That is what I have been saying also. I would not compare it to products because products is very transactional. Like I said, it is a different dynamic. You also have bigger overhead. Our largest R&D is in the product side.

Speaker #2: You have it in a different dynamic. You also have bigger overhead. Our largest R&D is on the product side. Products have production capacity.

[Analyst] (Inderes/HC Andersen Capital): Side, of course.

[Analyst] (HC Andersen Capital): Side, of course.

Carsten Drachmann: Products have a production capacity, then you run supply chain. So it is a little bit of a different dynamic. But when you are in solution business and the National Defense Solutions, you have to think about it as solving a problem. It becomes more value-based. In Indonesia, what is the value of a satellite network that could save USD 1 billion per year in lost GDP on the fishing industry in Indonesia? So it is a different animal, simply. When you can bring value, then you price the value. When you do satellite systems, it is often much more comparable to either it is a tender process. There are five other bidders that are bidding something, and then you have to have the best price. So it is becoming a little bit harder to make the high margin.

Speaker #2: They need to run supply chain, so it's a little bit of a different dynamic. But when you are in the solutions business and the national defense solutions, you have to think about it as solving a problem.

Speaker #2: It becomes more value-based. In Indonesia, what is the value of a satellite network that could save $1 billion per year in lost GDP in the fishing industry in Indonesia?

Speaker #2: Right? So it's a different animal, simply. When you can bring value, then you price the value. When you do satellite systems, it is often much more comparable to either a tender process—there are five other bidders that are bidding something, and then you have to have the best price.

Speaker #2: So it's becoming a little bit harder to make the high margins. But here, it's a capability we need to have because national defense solutions are also going to bring volume.

Carsten Drachmann: But here it is a capability we need to have because National Defense Solutions are also going to bring volume plus a lot more. But that volume will ripple down in the system, and we have to be able to do that in satellite systems. So it is a different dynamic. We are competing. We have clever engineers that the customer is buying satellites. Okay, so they will always be scrutinized. You can get to a certain level, and then it is very transparent what it is costing and comparing. But when you do solutions where you are selling value, it is very different business.

Speaker #2: Plus a lot more. But that volume ripples down in a system, and we have to be able to do that in satellite systems. So, it's a different dynamic.

Speaker #2: We are competing on—we have clever engineers at the customers buying satellites, okay? So they will always be scrutinized. You can get to a certain level, and then it's very transparent what it's costing and comparing.

Speaker #2: But when you do solutions where you're selling value, it's a very different business.

Speaker #1: Then there's a question on the timeline for the order in Indonesia. I think you answered that very clearly.

[Analyst] (Inderes/HC Andersen Capital): Then there is a question, timeline for the order in Indonesia. I think you answered that very clearly.

[Analyst] (HC Andersen Capital): Then there is a question, timeline for the order in Indonesia. I think you answered that very clearly.

Carsten Drachmann: Yeah. I do not know. It is still alive guys. It is still alive. It is not dead. Timeline, well, I still as I joke, so far, Indonesia is working faster than Denmark, so let us just say it like that.

Speaker #2: Yeah, I don't know. It's still alive. Guys, it's still alive, it's not dead. Timeline. Well, I still—as I joke—so far, Indonesia is working faster than Denmark.

Speaker #2: So, let's just say it like that.

Speaker #1: Yeah, perfect. Then there's a little bit about the margins and the sustainability, and what were you showing right now? Should we see—is there something special in this quarter if we look at the margin side, in any of the areas, or in your total margins?

[Analyst] (Inderes/HC Andersen Capital): Yeah. Perfect. Then there is a little bit about the margins and the sustainability and what were you showing right now.

[Analyst] (HC Andersen Capital): Yeah. Perfect. Then there is a little bit about the margins and the sustainability and what were you showing right now.

[Analyst] (Inderes/HC Andersen Capital): Is there something special in this quarter if we look on the margin side in any of the areas or in your total margins? Is there anything special, or should we kind of, in the H1 report, start to see a picture about the margins and the gross margin in the different areas in your type of the business?

[Analyst] (HC Andersen Capital): Is there something special in this quarter if we look on the margin side in any of the areas or in your total margins? Is there anything special, or should we kind of, in the H1 report, start to see a picture about the margins and the gross margin in the different areas in your type of the business?

Speaker #1: Is there anything special, or should we, in the half-year report, start to see a picture of the margin and the gross margin in the different areas and in your type of business?

Speaker #2: Yeah. Obviously, as I explained, there's a difference between the different business units—what the margins are—and there will be some fluctuations quarter by quarter.

Carsten Drachmann: Yeah. Obviously, as I explained, there is a difference between the different business units, what the margins are, and there will be some fluctuations quarter by quarter. If you have a very strong revenue quarter for products, that contributes a lot more. If it is satellite systems, then the percentage margin will be lower. I think it will vary a bit, but it is also why

Speaker #2: If you have a very strong revenue quarter for products, that contributes a lot more. If it's satellite systems, then the percentage margin will be lower.

Speaker #2: So, I think it will vary a bit, but that's also why.

[Analyst] (Inderes/HC Andersen Capital): Actually, there is a question here on the advanced mission, who delivered it. Is that a product mix or is that

[Analyst] (HC Andersen Capital): Actually, there is a question here on the advanced mission, who delivered it. Is that a product mix or is that

Speaker #1: So that’s a question here on the advanced mission—who delivered it? Is that a product mix?

Carsten Drachmann: No, that is a result of the number of things that has happened in that business unit in terms of executing products or contracts. I would not take that as an indicator that you can calculate the margin on that, but it is just a happenstance here. It is probably going to be less in the next quarter, but then you will see products perhaps doing more. But overall, I am really focused on the average percentage of everything. We are now hitting this 10%, 11%, and over time, obviously, our ambition is to go higher. But hey, 11% is pretty good in this market.

Speaker #2: No, I wouldn't, yeah. That is a result of the number of things that have happened in that business unit in terms of executing products or contracts.

Speaker #2: I wouldn't take that as an indicator that you can calculate the margin on that. It's just a happenstance here. It's probably going to be less in the next quarter, but then you'll see products perhaps doing more. But overall, I'm really focused on the average percentage of everything.

Speaker #2: We are now hitting this 10, 11%, and over time, yes, the ambition is to go higher. But hey, 11% is pretty good in this market.

[Analyst] (Inderes/HC Andersen Capital): Yeah. I think you covered most of the questions, so you have done a lot of my job. There is a final one, and let us start by this, share price

[Analyst] (HC Andersen Capital): Yeah. I think you covered most of the questions, so you have done a lot of my job. There is a final one, and let us start by this, share price

Speaker #1: Yeah, I think you covered most of the questions, so you've done a lot of my job. There is a final one, and let's start with this.

Speaker #1: Share price swing up and down. There's a question here. Why don't you go out and speak and tell the market that it's going as you expect and plans and I don't know how to ask it because that's what you're doing here today by confirming your guidance.

Carsten Drachmann: Yep

[Analyst] (Inderes/HC Andersen Capital): swing up and down. There is a question here, why do not you go out and speak and tell the market that it is going as you expect and planned? I do not know how to ask it because that is what you are doing here today by confirming your guidance. I know there is a range. Every company has a range. You told us about the market and the developments and the plans.

[Analyst] (HC Andersen Capital): swing up and down. There is a question here, why do not you go out and speak and tell the market that it is going as you expect and planned? I do not know how to ask it because that is what you are doing here today by confirming your guidance. I know there is a range. Every company has a range. You told us about the market and the developments and the plans.

Speaker #1: I know there's a range—every company has a range. You told us about the market and the developments and the plans, so yeah. And I guess I would actually not feel comfortable owning a share with a CEO commenting on the share price.

Carsten Drachmann: Yeah.

[Analyst] (Inderes/HC Andersen Capital): I guess I would actually not feel comfortable owning a share with a CEO commenting the share price. I understand the feeling when you get hit by the share. Any comments to this request, Carsten?

[Analyst] (HC Andersen Capital): I guess I would actually not feel comfortable owning a share with a CEO commenting the share price. I understand the feeling when you get hit by the share. Any comments to this request, Carsten?

Speaker #1: So, I understand the feeling when you get hit by the share. But yeah, any comments to this request, Carsten?

Speaker #2: Yeah. Well, like you said, I think the golden rule number one for CEOs is you don't comment on share price—unless you're Elon Musk, who is above God, and he does it.

Carsten Drachmann: Well, like you said, the golden rule number 1 for CEOs, you do not comment on share price unless you are Elon Musk, who is above God, and he does it, but I do not. It is not my job. My job is to create that transparency, and if people feel, I have noticed if some people feel you are not communicating enough, do not expect me to comment on the share price. I really try to share as much as possible. We had a Q&A just before the summer. I think we are sharing quite a lot in these sessions and trying to talk about what is happening. I would say, and maybe in the chat forum, you can help each other, do the market analysis. Take a look at how the market has gone up and down for space. A lot of this is related very likely to general fluctuations in the space investment.

Speaker #2: But I don't. So it's not my job. My job is to create transparency. And if people feel—I've noticed that some people feel you're not communicating enough—don't expect me to comment on the share price.

Speaker #2: I really try to share as much as possible at a Q&A just before the summer. I think we're sharing quite a lot in these sessions and trying to talk about what's happening.

Carsten Drachmann: We had a Q&A just before the summer. I think we are sharing quite a lot in these sessions and trying to talk about what is happening. I would say, and maybe in the chat forum, you can help each other, do the market analysis. Take a look at how the market has gone up and down for space. A lot of this is related very likely to general fluctuations in the space investment.

Speaker #2: So I would say, and maybe in the chat forum, you can help each other do the market analysis. Take a look at how the markets have gone up and down for space.

Speaker #2: A lot of this is related, very likely, to general fluctuations in the space investment. So do that analysis yourself. Don't ask me.

Carsten Drachmann: Do that analysis yourself. Do not ask me. I will keep, of course, reporting to you how we are doing. The quarterly result here is good. I am talking to you about National Defense Solutions are building a pipeline. I know it would be lovely, would not it, to know the exact timing on everything. I would like to know that. My job would be a lot easier, but it is not how it works. I am telling you that we are seeing good pipeline growth. We are delivering. We have totally on track with our plan that we set out 3 years ago, turn around the company. We did cash flow positive in 2024. Now we are not, because we are investing more on purpose, and obviously customers owing us a bit more money than we had planned. But we are managing that. We have a positive EBITDA. We are performing above the industry standards.

Speaker #2: But I would, of course, keep reporting to you on how we're doing. The quarterly result here is good. I'm talking to you about national defense solutions; we are building a pipeline.

Speaker #2: I know, it would be lovely. We'd need to know the exact timing and everything. I'd like to know that—my job would be a lot easier.

Speaker #2: But that's not how it works. I'm telling you that we are seeing good pipeline growth. We're delivering. We are totally on track with the plan we set out three years ago.

Carsten Drachmann: We are delivering. We have totally on track with our plan that we set out 3 years ago, turn around the company. We did cash flow positive in 2024. Now we are not, because we are investing more on purpose, and obviously customers owing us a bit more money than we had planned. But we are managing that. We have a positive EBITDA. We are performing above the industry standards.

Speaker #2: We turned around the company. We were cash flow positive in 2024. Now we are not, because we're investing more on purpose, and, obviously, customers owe us a bit more money than we had planned.

Speaker #2: But we are managing that. We have a positive EBITDA. We are performing above the industry standards. They are growing 15%; we're growing 30%. And we're delivering that positive profit.

Carsten Drachmann: They're growing 15%, we're growing 30%, and we're delivering that positive profit. Not even EBITDA. My ambition was just a positive EBITDA. We have a positive EBIT and even a net profit. As far as I'm concerned, we are really on a good track and there is a positive outlook that I've given to you.

Speaker #2: And not even EBITDA. My ambition was just positive EBITDA. We have a positive EBIT and even a net profit. So as far as I'm concerned, we are really on a good track, and there is a positive outlook that I have given you.

Speaker #1: You know, I think that's a very good place to stop here, Carsten. So, thank you for taking us through your results and answering questions.

[Analyst] (Inderes/HC Andersen Capital): I think that's a very good place to stop here, Carsten. So thank you for taking us through your results and answering questions and-

[Analyst] (HC Andersen Capital): I think that's a very good place to stop here, Carsten. So thank you for taking us through your results and answering questions and-

Speaker #1: And taking us through a lot of the smaller steps and the different markets, I think that helps kind of to understand it. And I think everybody understands that some of the larger contracts, that is, yeah, that can have a longer timeline and can have a shorter timeline.

Carsten Drachmann: For nothing.

[Analyst] (Inderes/HC Andersen Capital): Taking us through a lot of the smaller steps and the different market. I think that helps to understand it, and I think everybody understands that some of the larger contracts that can have a longer timeline and can have a shorter timeline, nobody really knows. So thank you, Carsten, and thank you to the audience for listening in and getting a very lively debate through the questions. May everybody have a nice day.

[Analyst] (HC Andersen Capital): Taking us through a lot of the smaller steps and the different market. I think that helps to understand it, and I think everybody understands that some of the larger contracts that can have a longer timeline and can have a shorter timeline, nobody really knows. So thank you, Carsten, and thank you to the audience for listening in and getting a very lively debate through the questions. May everybody have a nice day.

Speaker #1: Nobody really knows. So, thank you, Carsten. And thank you to the audience for listening in and generating a very lively debate through the questions.

Speaker #1: May everybody have a nice day.

Speaker #2: Yeah. And as a reminder, keep writing on the chat forum. I see it, I'm taking notice, and I'm learning. And check in on our social media. Please connect so that you get a lot more information.

Carsten Drachmann: Yeah. Reminder, keep writing on the chat forum. I see it, I am taking notice, and I am learning. Check in on our social media. Please hook up so that you get a lot more information. I know there was a question on LinkedIn hires.

Speaker #2: I know there was a question on LinkedIn hires also.

[Analyst] (Inderes/HC Andersen Capital): Yeah, sorry, that I-

[Analyst] (HC Andersen Capital): Yeah, sorry, that I-

Speaker #1: Yeah. Sorry that I.

Carsten Drachmann: Yeah, we are hiring because we are growing. So we need more people to do different things, and we are investing more, so that is why.

Speaker #2: Yes, we are hiring because we're growing, so we need more people to do different things. And we're investing more, so that is why. Anyway, thank you.

[Analyst] (Inderes/HC Andersen Capital): Perfect.

[Analyst] (HC Andersen Capital): Perfect.

Carsten Drachmann: Anyway, thank you.

[Analyst] (Inderes/HC Andersen Capital): And then actually you did my job one more time, Carsten. Thank you for that. Have a nice day.

[Analyst] (HC Andersen Capital): And then actually you did my job one more time, Carsten. Thank you for that. Have a nice day.

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Q2 2026 GomSpace Group AB Earnings Call

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