Half Year 2026 AAC Clyde Space AB Earnings Call
Speaker #1: Hej och välkomna ska ni vara till kvartalsrapporter med Investor Studios. I dag med AAC Cloud Space, AAC Cloud Space släppte i morse sin andra kvartalsrapport för 2026.
Speaker #1: Ni som tittar live kan, som vanligt, interagera och ställa frågor till ledningen, och det gör ni i chatten. Vi kommer att hantera frågorna efter presentationen, och om ni inte hinner få svar på fråga så hänvisar vi då till AAC Cloud Space IR, Håkan.
Speaker #1: Carls rapporter med Investor Studios. I dag med AAC Clyde Space. AAC Clyde Space släppte i morse sin andra kvartalsrapport för 2026. Ni som tittar live kan som vanligt interagera och ställa frågor till ledningen, och det gör ni i chatten.
Speaker #1: Franchise, with new structures—not just tracking, but communications and other associated services. So we continue to do that, but as I said, there is strong demand, and a lot of our focus now is actually on delivering products and missions to customers—governments and commercial customers.
Speaker #1: Tybell. Och vi kan också säga att vi har fått in en del frågor på förhand som vi också kommer att ta i samband med presentationen.
Speaker #1: Vi kommer att hantera frågorna efter presentationen. Och om ni inte hinner få svar på er fråga så hänvisar vi då till AAC Clyde Space IR, Håkan.
Speaker #1: Som nu kommer att fortsätta på engelska, jag ska tillägga. Louise, nice to see you again. How are things in Glasgow?
Speaker #1: We continue to do that. We see strong demand for our products. So, if we go on to the next slide, we keep our full-year guidance.
Speaker #2: Hi, great to see you, Carla. It's actually a very nice day here in Glasgow.
Speaker #1: Tribel. Och vi kan också säga att vi har fått in en del frågor på förhand som vi också kommer att ta i samband med presentationen.
Speaker #1: Yeah.
Speaker #2: It's not a change.
Speaker #1: For a change. Louise, last time we spoke, you guided for a very busy second quarter, or a quarter ahead, and as far as press releases and figures are concerned, I would say that you've been proven right there.
Speaker #1: As I said, before we this Q2 was in line with our expectations, so we keep our guidance of 440 million SEC to 510 million SEC in net sales, for the year, with an EBITDA of 10% and an operational positive operational cash flow.
Speaker #1: So please, take it away.
Speaker #2: Thank you. Thank you, Carla. It was indeed a very busy quarter. We have, as I said, it was a foundational quarter, and if you take a look at the presentation, we have a slide on listing those.
Speaker #1: So, we continue to maintain that guidance. As I say, Q2 was aligned with our expectations, so we are very, very happy to maintain our guidance.
Speaker #1: And so this is, in summary, the quarter. I don't know if there are some questions now, but that's very much it. It was a positive quarter for us.
Speaker #2: So we have not only finished signing the second part of the sterner contract, and effectively the whole payload and avionics contract came into life during this quarter.
Speaker #2: So thank you for that. Short and snappy. And in summary here, if I can just recap the first slides—where you're referring to 'foundationals,' six months being 'foundationals' here.
Speaker #2: With the work starting, in earnest on all the parts of this contract, so it was a very busy quarter from that perspective. But also it's the quarter where we signed the next phase of inflection, for the 12 satellites.
Speaker #2: You're talking about two separate things that will be connected, so let me see if I got this right. Firstly, we have the external orders, strengthening the hardware side.
Speaker #2: This is when we really start the work to build the constellation, the work to actually start preparing all the services. So that's an extremely important milestone for us.
Speaker #2: And pros that you know operating on a much larger scale, which we can see that the figures here are delivering. And secondly, you have the launch of the Verion and progress with inflections, so.
Speaker #2: And of course, we have launched Virion 1 and 2 back in March. We're now going through their commissioning. We announced the first flight on Virion 1.
Speaker #2: Driving future data and service growth. So A, you have one part that is delivering, and another part that will drive the growth. Would you I mean, do you buy into my interpretation there?
Speaker #2: We are going through the process of focusing, calibrating that camera. While we work on Virion 2 also. And what we saw was growth on both business segments, both on the product submissions and on the data and services.
Speaker #2: Okay.
Speaker #1: So, we very much have that bedrock of our business as hardware, but we see quite a lot of opportunities in the growth of our data and services business to expand the company, to grow the company.
Speaker #2: And overall, what this has given us is a backlog that is approaching 1.2 billion SEC. So a very busy quarter. And if we go on to the next slide, we can also see that it was a quarter where we achieved good numbers.
Speaker #2: We achieved good results. Very much in line with what we were expecting. So we have growth, about 51% growth on net sales in relation to last year.
Speaker #2: It's the same quarter last year. We achieved a positive EBITDA of 2.7 million SEC, again, quite a big growth in relation to last year.
Speaker #2: But importantly, it's another strong quarter in terms of EBITDA. And we have a very positive operational cash flow. Something that we would expect with a kind of contract we've got right now, but it is something that we had been working towards for some time.
Speaker #2: And as I said, an order backlog approaching the 1.2 billion SEC, it's very healthy. It means that a lot of our revenues are already in our order book.
Speaker #2: So that's actually a very good position to be in. If we go on to the next slide, we are now very much focusing on execution and expansion.
Speaker #2: So over the next few months, we continue to see strong demand for our products. And satellites, so we are working with potential customers. We are working through our pipeline of opportunities right now.
Speaker #2: But a lot of our focus is now on expanding our data and services. So bringing Virion 1 and 2 online, getting 7, 3, and 4 through their build, so that we can reinforce our maritime data intelligence gathering, and we can start monetizing those.
Speaker #2: And of course, focusing on the inflection program and growing our constellation on the maritime side. With new services, not just tracking, but also communications and other associated services.
Speaker #2: So we continue to do that. But as I said, we have strong demand, and a lot of our focus now is actually on delivering product submissions to customers, governments, and commercial customers.
Speaker #2: We continue to do that. We see strong demand for our products. So if we go on to the next slide, we keep our full year guidance.
Speaker #2: As I said, this quarter two was in line with our expectations, so we keep our guidance of 440 million SEC to 510 million SEC in net sales, for the year.
Speaker #2: With an EBITDA of 10% and an operational positive operational cash flow. So we continue to maintain that guidance. As I say, quarter two, it was aligned with our expectation.
Speaker #2: So we are very happy to maintain our guidance. And so this is, in summary, the quarter. I don't know if there are some questions now.
Speaker #2: But that's very much it was a positive quarter for us.
Speaker #1: So thank you for that. Short and snappy. And in summary here, if I can just recap the first slides where you're referring to foundationals, six months being foundationals here.
Speaker #1: You're talking about two separate things that will be connected, so see if I got this right. Firstly, we have the sterner orders, strengthening the hardware side.
Speaker #1: And proves that you now operating on a much larger scale, which we can see that the figures here are delivering. And secondly, you have the launch of the Virion and progress with inflections.
Speaker #1: So driving future data and service growth. So A, you have one part that is delivering, and another part that will drive the growth. Would you I mean, do you buy into my interpretation there?
Speaker #2: Absolutely. So we very much have that bedrock of our business that is hardware. But we see quite a lot of opportunities on the growth of our data and services business, to expand the company, to grow the company.
Speaker #2: So the first quarter, the first half of the year is very much a good example of how we operate. Building on our success as a hardware producer and then delivering on data and services as a growth engine for the future.
Speaker #1: So the first quarter, the first half of the year is very much a good example of how we operate. Building on our success as hardware producer and then delivering on data and services as a growth engine for the future.
Speaker #1: And would one or the other of those two developments be more important than the other?
Speaker #2: I'd say they are equally important. They're different ways. So when you look at something like sterner, it's a very large contract. It's technically challenging, but perfectly achievable.
Speaker #2: And would one or the other of those two developments be more important than the other?
Speaker #1: I'd say they are equally important. They're different ways. So when you look at something like Cerner is a very large contract, is technically challenging, but perfectly achievable.
Speaker #2: We have done a prototype before on the Arctic weather satellite. So we have very comfortable with the design and build of this constellation. So it's a big contract.
Speaker #2: But it is an important contract for Europe. It shows our ability in terms of hardware, our design, engineering. And then that is something that we will continue to do.
Speaker #1: We have done a prototype before on the Arctic weather setup, so we are very comfortable with the design and build of these constellations. So, it's a big contract, but it is an important contract for Europe.
Speaker #2: It's something that we'll continue for the future. As I say, it's very much the foundational of the company, the foundation of the company. The hardware capability, the engineering capability.
Speaker #1: It shows our ability in terms of hardware, our design, engineering, and then and that is something that we will continue to do is something that we'll continue for the future.
Speaker #2: But then we see huge potential on the growth of data and services. And that, of course, is an area we are investing in. It's an area that we expect to grow.
Speaker #1: As I say, it's very much the foundational of the company, the foundation of the company. The hardware capability, the engineering capability, but then we see huge potential on the growth of data and services.
Speaker #2: And in the long term, we expect those areas to be about 50-50 of our business. And so this is we are in that journey right now.
Speaker #1: And that, of course, is an area we are investing in. It's an area that we expect to grow, and in the long term, we expect those areas to be about 50/50 of our business.
Speaker #1: And I have some complementary questions here regarding this from viewers here coming in. And Verion 2, is it doing well?
Speaker #1: And so this is we are in that journey right now.
Speaker #2: And I have some complimentary questions here regarding this, coming in from viewers. And Brian too, is it doing well?
Speaker #2: We're going through its commissioning. We are focused very much on Virion. Because we want to start service. So we are putting more effort into that.
Speaker #1: We're going through its commissioning. We are we have focused very much on Verion 1 at this stage because we want to start service. So we are putting more effort into that.
Speaker #2: Virion 2 is going through its. But the focus has been on Virion 1, because we want to start revenue. Satellites on quarter three.
Speaker #1: Version 2 is going through its commissioning, doing its tests as normal. So the focus has been on Version 1 because we want to start those satellites in Q3.
Speaker #1: So more to come. And then we have another viewer questions here. For the product and mission revenue, how much of the revenue came from sterner for the quarter?
Speaker #2: So more to come from Verion 2 then.
Speaker #1: Yes.
Speaker #2: And then we have another viewer question here. For the product and mission revenue, how much of the revenue came from Sterna for the quarter?
Speaker #2: A large amount. It was a big power big part of our revenue. But it was not the only one. But yes, it was. I couldn't tell you the immediate number.
Speaker #1: A large amount. It was a big it was a big part of our big part of our revenue, but it was not the only one.
Speaker #2: Top of my head. But it was an important part. And it will be the case for the rest of the for the next two years.
Speaker #1: But yeah, it was the number off the top of my head. But it was an important part, and it will be the case for the next two years—it will always be a big part of our revenue on four products.
Speaker #2: Always be a big part of our revenue on four products. Because it is our biggest it's our biggest contract, it is the dominant contract on our product business line.
Speaker #1: Yeah. And I can see that we have some questions about SCAL here. But I'm coming to that a little bit later, because I would like to stay on Verion satellites.
Speaker #1: Because it is our biggest it's our biggest contract, it is the dominant contract on our product business line.
Speaker #2: Yeah. And I can see that we have some questions about Scow here, but I'll come to that a little bit later because I would like to stay on Verion satellites.
Speaker #1: When will Verion start generating revenue following commission? And how would investors think about the commercial ramp-up for the first revenues to a more meaningful contribution?
Speaker #2: When will Verion start generating revenue following commission, and how would investors think about the commercial ramp-up for the first revenues to a more meaningful contribution?
Speaker #1: If you can elaborate a little bit of that, and then we'll jump into South Africa.
Speaker #2: So we expect revenues to start on quarter three. As I say, we already capturing imagery. We are already doing some of the work in preparation for our customers.
Speaker #2: If you can elaborate a little bit of that, and then we'll jump into South Africa.
Speaker #1: So we expect revenues to start on Q3. As I say, we're already capturing imagery. We are already doing some of the work in preparation for our customers.
Speaker #2: So we expect, as I say, Q3 to already start delivering some revenue. And then we expect a normal ramp-up on a project. We have customers lined up.
Speaker #2: We have people wanting to take on contracts on the satellite. So we expect a what would be a normal ramp-up on a data and services contract.
Speaker #1: So, we expect, as I say, Q3 to already start delivering some revenue. And then we expect a normal ramp-up on the project. We have customers lined up.
Speaker #1: We have people wanting to take on contracts on the satellite, so we expect what would be a normal ramp-up on a data and services contract.
Speaker #2: We expect to be in full revenue for those satellites towards next year. So there will be a ramp-up from here until then. So it's difficult to go into that detail without going through the detail on contracts and customers.
Speaker #1: We expect to be in full revenue for those satellites towards next year. So there will be a ramp-up from here until then. So it's difficult to go into that detail without going through the detail on contracts and customers.
Speaker #2: But it's what I would expect a normal approach for a satellite data and services satellite. That we see also on our maritime side, for instance.
Speaker #1: And if we go back to press release from last week, I think, if you could elaborate a little bit about the SCAL project, what is SCAL?
Speaker #1: But it's what I would expect—a normal approach for a satellite data and services satellite. That we see also on our maritime side, for instance.
Speaker #2: And if we go back to the press release from last week, I think, if you could elaborate a little bit about the SCoW project. What is SCoW, and what should we expect going forward?
Speaker #1: And what do you expect going forward? And I have some detailed questions here. So we'll see how much you can answer here. But just in round things here.
Speaker #1: Is a large organization, as I understood.
Speaker #2: And I have some detailed questions here, so we'll see how much you can answer. But just in round terms here, this is a large organization, as I understand it.
Speaker #2: Yeah. So SCAL stands for Square Kilometer Array Organization. So Square Kilometer Array is a telescope that basically sets several antennas in places in South Africa and Australia.
Speaker #1: Yeah. So SKA stands for Square Kilometer Array Organization. So, Square Kilometer Array is a telescope that basically sets several antennas in places in South Africa and in Australia.
Speaker #2: We are focusing we are working on the one in South Africa. So we provide. Equipment. One part of that network of antennas and receivers for a specific band.
Speaker #1: We are focusing—we are working on the one in South Africa. So, we provide one equipment, one part of that network of antennas, and the receivers for a specific band.
Speaker #2: So the objective is to look at the universe and measure certain amounts of microwave radiation coming from different stars and different celestial bodies. It's a big international organization.
Speaker #1: So, the objective is to look at the universe and measure certain amounts of microwave radiation coming from different stars and different celestial bodies. It's a big international organization.
Speaker #2: So it's actually at quartered in the UK. But it's financed by many different countries. And as I say, the antennas the telescopes are based in South Africa.
Speaker #1: So, it's actually headquartered in the UK, but it's financed by many different countries. And, as I say, the antennas and the telescopes are based in South Africa.
Speaker #2: The ones we are working on. And we are supplying the feeds for those. We're building them in Gothenburg. It is a project that has been running for quite some time.
Speaker #1: The ones we are working on, and we are supplying the feeds for those. We're building them in Gothenburg. It is a project that has been running for quite some time.
Speaker #2: What we announced is that we shipped the first of those the prototypes of those feeds for to South Africa. But we are very much dependent on the timelines of that large international organization.
Speaker #1: What we announced is that we shipped the first of those—the prototypes of those feeds—to South Africa. But we are very much dependent on the timelines of that large international organization.
Speaker #2: So they have to build antennas. They have to expand their site in South Africa. So we have been working on that. And we have been very and we are very happy to have those feeds there.
Speaker #1: So they have to build antennas. They have to expand their site in South Africa. So we have been working on that. We have been very, and we are very happy to have those feeds there.
Speaker #2: They are now being tested. We will have results later this year. For those tests, but it just shows the progress that we have done, the design is pretty much done.
Speaker #1: They are now being tested. We will have results later this year for those tests. But it just shows the progress that we have made—the design is pretty much done.
Speaker #2: We are now in a phase where we are just waiting for our customers to say, OK, start delivering these units. And we have quite a lot of those units to deliver.
Speaker #1: We are now in a phase where we are just waiting for our customers to say, "OK, start delivering these units." And we have quite a lot of those units to deliver.
Speaker #2: So it's a great start. It's a great progress. But we are very much we are very much on the timelines of our customer on that.
Speaker #1: So it's a great start. It's great progress, but we are very much on the timelines of our customer on that.
Speaker #1: And we have a more granular question here regarding it. So I'll just read it through. You recently delivered the first pre-production band one feed systems to the observatory.
Speaker #2: And we have a more granular question here regarding it, so I'll just read it through. You recently delivered the first pre-production Band 1 feed systems to the observatory.
Speaker #1: As a part of the 12 million euro contract. How much revenue remains for the project? What can you say?
Speaker #2: As a part of the €12 million contract, how much revenue remains for the project? What can you say?
Speaker #2: I would say that there is still substantial revenue on that program. We have done the design phase. And the production of the first unit.
Speaker #1: I would say that there is still substantial revenue on that program. We have completed the design phase and the production of the first units.
Speaker #2: So the bulk of the production is still to be done. So I would go into the detail of the numbers, but I would say that a large amount of the revenue is still to come.
Speaker #1: So the bulk of the production is still to be done. So, I would go into the detail of the numbers, but I would say that a large amount of the revenue is still to come.
Speaker #1: And coming into the future here, though, a large European satellite programs, like IRIS2, are increasingly moving towards well positioned would you say that AAC Cloud Space power and data handling products would be for a larger LEO and MEO platforms?
Speaker #2: And coming into the future here, though, a large European satellite programs, like IRIS 2, are increasingly moving towards procurement. So how well positioned would you say that AAC Clyde Space power and data handling products would be for a larger LEO and MEO platforms?
Speaker #2: I think the ideal spot we will only do that work if it's actually profitable. What we have seen in many of these very large constellations and very large programs, is that they are actually quite margins are usually expected to be quite low.
Speaker #1: I think they would be the ideal spot. We will only do that work if it's actually profitable. What we have seen in many of these very large constellations and very large programs is that the margins are usually expected to be quite low.
Speaker #2: They are usually very commercially aggressive. They also tend to attract lots of people, of course, lots of suppliers. So there is a huge competition because they are seen as large programs.
Speaker #1: They are usually very commercially aggressive. They also tend to attract lots of people—of course, lots of suppliers. There is huge competition because they are seen as large.
Speaker #2: What depresses margins? And we have walked away in the past from one or two of these opportunities because when we get to the negotiation, the discussion with the customer effectively, they want to do as they want us to do that at ridiculously low margins.
Speaker #1: Programs. What depresses margins? And we have walked away in the past from one or two of these opportunities because, when we get to the negotiation, the discussion with the customer, effectively they want to do us.
Speaker #1: They want us to do that at ridiculously low margins, to barely pay our costs, and if there are any problems—any issues on the design—we could actually lose money.
Speaker #2: That would barely pay our costs. And if there are any problems, any issues on the design, we could actually lose money. So although the promises is good, the reality is that in some cases, this is just not what it seems.
Speaker #1: So, although the promise is good, the reality is that in some cases, this is just not what it seems. So we will—of course, we are in the discussions.
Speaker #2: So we will, of course, we are in the discussions. We are talking to the potential customers. But we'll only actually do that if the business makes sense.
Speaker #1: We are talking to the potential customers, but we'll only actually do that if the business makes sense. It has to make sense. And in some cases in the past, for these kind of things, we prefer to negotiate, for instance, a license agreement with the customer.
Speaker #2: It has to make sense. And in some cases, in the past, for these kind of things, we prefer to negotiate, for instance, a license agreement with the customer.
Speaker #2: If they are going to build a lot of satellites, they might be more interested in doing these things themselves. The production themselves. So these are things that we are in discussion right now.
Speaker #1: If they are going to build a lot of satellites, they might be more interested in doing these things themselves—the production themselves. So these are things that we are in discussion about right now.
Speaker #2: But as I say, we are part of this conversation. We are talking with the different potential customers. And so we are in that phase.
Speaker #1: But as I say, we are part of this conversation. We are talking with the different potential customers, and so we are in that phase.
Speaker #2: But as I say, we will only do it if it's actually if it makes sense for us. I think we have a very strong product, actually probably the best for what they are looking for.
Speaker #1: But as I say, we will only do it if it actually makes sense for us. I think we have a very strong product—actually, probably the best for what they are looking for.
Speaker #2: But we'll have to see if the business makes sense.
Speaker #1: But we'll have to see if the business makes sense.
Speaker #1: So not well, coming away, not having an order doesn't necessarily mean mean that you will not suffer margins going forward.
Speaker #2: So, not well. Coming away not having an order doesn't necessarily mean that. Well, it could mean that you will not suffer margins going forward.
Speaker #2: Yeah. As I say, we have in the past, we have been approached for other constellations. We have been asked to bid and technically, we, of course, offer a very compelling offer to the customers.
Speaker #1: Yeah. As I say, in the past we have been approached for other constellations. We have been asked to bid and, technically, we of course offer a very compelling offer to the customers.
Speaker #2: But the kind of prices they are looking for, the kind us are such that it becomes it's a risky business. And you can actually lose quite a lot of money.
Speaker #1: But the kind of prices they are looking for, the kind of conditions even that they impose on us, are such that it becomes—it's a risky business.
Speaker #2: So in those cases, we walked away. We've got a few others that we are ongoing, not on IRIS2. We've got a few other discussions ongoing on products for constellations.
Speaker #1: And you can actually lose quite a lot of money. So in those cases, we walked away. We've got a few others that are ongoing, not on IRIS2.
Speaker #1: We've got a few other discussions ongoing on products for constellations—of tens, probably not hundreds, but tens of satellites. But again, it has to make sense.
Speaker #2: Of tens, probably not hundreds, but tens of satellites. But again, it has to make sense. It is something that it's very appealing because the number is very large.
Speaker #1: It is something that is very appealing because the number is very large. But a lot of revenue with a loss makes no sense. So that's what we are always looking for.
Speaker #2: But a lot of revenue with the loss makes no sense. So that's what we are always looking for. Does it actually make sense for us to bid on this or to win these things?
Speaker #1: Does it actually make sense for us to bid on this or to win these things? So that's always a discussion. And we'll see what terms and what conditions we are offered.
Speaker #2: So that's always a discussion. And we'll see what terms, what conditions we are offered and then we'll decide.
Speaker #1: And then we'll decide.
Speaker #1: And we have another question here regarding this quarter and the EPS Sterna projects. And I think that you are partly already replied to on a previous question.
Speaker #2: And we have another question here regarding this quarter and the EPS Sterna projects. I think that you have partly already replied to this in a previous question.
Speaker #1: But and the question is, how much revenues during the quarter is related to the EPS Sterna project? But could I just add and say, are you happy with the contribution so far in comparison with other revenue streams on the EPS Sterna project?
Speaker #2: And the question is: How much revenue during the quarter is related to the EPS Sterna project? And could I just add, are you happy with the contribution so far in comparison with other revenue streams on the EPS Sterna project?
Speaker #1: Well, this quarter and so far?
Speaker #2: Yes. So target. On Sterna. So in general, yes. We are where we plan to be. With Sterna, and we expect that to continue. So yes, I'm happy with that.
Speaker #2: Well, this quarter, and so far.
Speaker #1: Yes, so we are broadly on target on Sterna. In general, yes, we are where we plan to be with Sterna, and we expect that to continue.
Speaker #1: So yes, I'm happy with that.
Speaker #1: And I'll tie in that to another question, which is easier perhaps to say than answer. And what is the full revenue potential for Verion One?
Speaker #2: And I'll tie that into another question, which is perhaps easier to ask than to answer: what is the full revenue potential for Version 1?
Speaker #2: That would be giving too much information about our business plan. So I will not answer that one. But I would say that it is it makes economic sense.
Speaker #1: That would be giving too much information about our business plan, so I will not answer that one. But I would say that it makes economic sense.
Speaker #2: So of course, we only invest in it because we believe that it will actually make us quite a good revenue. And quite good profit.
Speaker #1: So of course, we only invest in it because we believe that it will actually make us quite good revenue and quite good profit.
Speaker #1: OK. And you are reiterating your full year guidance as you did in the previous quarter. And that's just to remind people, 440 to 510 million SEC.
Speaker #2: OK. And you are reiterating your full-year guidance as you did in the previous quarter, and that's just to remind people—440 to 510 million SEK.
Speaker #1: And a margin of 10%. So I was asking more or less the same question as I did the previous quarter. What gives you the confidence in the guidance?
Speaker #2: And a margin of 10%. So I was asking more or less the same question as I did the previous quarter. What gives you the confidence in the guidance?
Speaker #1: And what are the key things that you would like us to look for and that you need to happen in the second half?
Speaker #2: And what are the key things that you would like us to look for, and that you need to happen in the second half?
Speaker #2: So largely, where we are is we are delivering on our plan. So second quarter was quite good. Gave us confidence that we are delivering as expected.
Speaker #1: So, largely, where we are is, we are delivering on our plan. So, the second quarter was quite good and gave us confidence that we are delivering as expected.
Speaker #2: The third quarter continues to deliver. So that's what is giving us the confidence on the guidance. And we'll continue we expect to continue to deliver.
Speaker #1: The third quarter continues to deliver, so that's what is giving us confidence in the guidance. And we expect to continue to deliver.
Speaker #2: We've got the backlog. We've got a strong backlog with most of the revenue already booked. If not close to all, but a large part of the revenue is already on the books.
Speaker #1: We've got the backlog. We've got a strong backlog with most of the revenue already booked, if not close to all. But a large part of the revenue is already on the books.
Speaker #2: So we have a few more things to do throughout the year that we need to do. But we are pretty confident on where we are right now.
Speaker #1: So, we have a few more things to do throughout the year that we need to take care of, but we are pretty confident in where we are right now.
Speaker #1: And would you be so bold so you could give us an expectations of revenue for 2027? Is that your question?
Speaker #2: And would you be so bold as to give us an expectation of revenue for 2027? It's a viewer question.
Speaker #2: No. Not yet. Too early for that one. Too early for that one.
Speaker #1: Not yet. Too early for that one. Too early for that one.
Speaker #1: OK. And then I will come back here on products and customers here. How well positioned would you be would you think that AAC Cloud Space would be for the UK coastal maritime ISR service procurement?
Speaker #2: And then I will come back here on products and customers. How well positioned would you think AAC Clyde Space would be for the UK coastal maritime ISR service procurement?
Speaker #2: We are always well placed. It depends very much. Many of these things have different have a variety of different technologies that are required. So we can actually deliver part of those.
Speaker #1: We are well placed. It depends very much. Many of these things require a variety of different technologies, so we can actually deliver part of those.
Speaker #2: Together with others, together with other partners, we can deliver full solutions. So yeah, we would be placed to be part of that. But we would have to see we would have to see what exactly requirements we are being asked to do.
Speaker #1: Together with others, together with other partners, we can deliver full solutions. So yeah, we would be placed to be part of that, but we would have to see—we would have to see what exactly the requirements are that we are being asked to meet.
Speaker #1: And in which parts it makes sense for us to invest in development and development of capability.
Speaker #2: And in which parts it makes sense for us to invest. Development and development of capability.
Speaker #2: So, it's a little bit of the IRIS2 here. You are discussing, and you think you're well positioned. But it takes two to tango, you know, here as well.
Speaker #1: So it's a little bit of the IRIS2 here. You are discussing and you think you're well positioned. But it takes two to tango in well, here as well.
Speaker #1: It depends. Most of these solutions are, first, if you look at inflection, that is already part of that—part of that type of technology.
Speaker #2: It depends. Most of these solutions are first, if you look at inflection, that is already part of that. Part of that type of technology.
Speaker #1: If you look at Inflection, we have different partners delivering different parts of the system. So it depends very much on the requirements—if the demand on us is there, we can fulfill it all ourselves.
Speaker #2: If you look at inflection, we have different partners that delivering different parts of the system. So it depends very much if the requirements, if the demand on us, we can fulfill it all ourselves.
Speaker #1: If we need to work with partners, it's about partnership with someone. So, it depends very much. There are discussions that are always happening, and in some cases, we can lead.
Speaker #2: If we need to work with partner, in partnership with someone. So it depends very much. These are discussions that are always happening. And in some cases, we can lead.
Speaker #1: In some cases, we can actually be a follower. We can work with someone else. These are all part of live discussions. And until a contract is defined, it's something that we have to—we just have to continue talking and discussing.
Speaker #2: In some cases, we can actually be a follower. We can work with someone else. These are all part of live discussions. And until a contract is defined, it's something that we have to we just have to continue talking and discussing.
Speaker #2: And just as more or less a wrapping-up question here: when you said you have to continue discussing, could you just give us a feel for the timeline from, let's say, initial discussion to actually signing on the dotted line?
Speaker #1: And just as a more or less a wrapping up question here. When you said you have to continue discussing, could you just give us a feel for the timeline from, let's say, initial discussion to actually signing on the dotted line?
Speaker #2: Are we talking six months or six years?
Speaker #1: Are we talking six months, six years, and?
Speaker #1: It depends. It depends very much on the type of it depends very much on the type of contract, the type of customer. It can be very quick.
Speaker #2: Depends. It depends very much on the type of depends very much on the type of contract. The type of customer. It can be very quick.
Speaker #1: It can be very long. So, contracts like Sterna, as everyone knows, take a few years to actually happen. From first discussion up until you've got a contract, it can take quite a long time.
Speaker #2: It can be very long. So contracts like Sterna, as everyone knows, take a few years to actually happen from first discussion up until we've got a contract, it can take quite a long time.
Speaker #1: Other contracts with pretty commercial customers can be much quicker. I would say one year is a good average—one to one and a half years between first discussion and a contract.
Speaker #2: Other contracts with pretty commercial customers can be much quicker. I would say one year is a good is a good average. One to one and a half years between first discussion and a contract.
Speaker #1: So that's an average.
Speaker #2: Yeah. Of course. Of course.
Speaker #2: So that's an average.
Speaker #1: But there are quite extreme cases, particularly if it involves government and government organizations. It's not unusual to have a two- or three-year timeline between first contact and actually having something in black and white.
Speaker #1: Yeah, yeah. Of course. Of course.
Speaker #2: But there are quite extreme cases. Particularly if it involves government and governmental organizations, it's not unusual to have a two, three year timeline. Between the first contact and actually having something black and white.
Speaker #2: Yeah. On the other hand, it's more a question of, if it takes a long time to negotiate, particularly with the state, if you have it, then you know you have it.
Speaker #1: Yeah. On the other hand, it's a more or a question. If it takes a long time to negotiate particularly with the state, if you have it, then you know you have it.
Speaker #2: And you know you have a solid customer who would actually pay the bills.
Speaker #1: And you know you have a. A solid customer who would actually pay the bills.
Speaker #1: Exactly. And that's why we do it. Because ultimately, that's why we actually like those contracts, and we like to work with government. Because ultimately, they are good customers.
Speaker #2: Exactly. And that's why we do it. Because ultimately, that's why we actually like those contracts. And we like to work with government. Because ultimately, they will they are good customer.
Speaker #1: And once we actually—although the negotiations can take quite a long time, as you point out—usually, you know very early on if you are the one that has been selected.
Speaker #2: And once we actually although the negotiations can take quite a long time, as you point out, usually you know very early on if you are the one that has been selected.
Speaker #1: And then you just have to go through the process. But those are good, it's good business.
Speaker #2: And then you just have to go through the process. But it's those are good it's good business.
Speaker #2: Excellent, thank you for that. Last time, you predicted a very busy quarter. Should we expect a very busy coming quarter as well?
Speaker #1: Excellent. Thank you for that. And last time you predicted a very busy quarter. So could we expect a very busy coming quarter as well?
Speaker #1: There will be busy. Very rarely do we have a quarter that is not busy. If it's not new contracts, it's delivering on the ones that we've got.
Speaker #2: There will be busy. Very rarely we have a quarter that is not busy. If it's not new contracts is delivering on the ones that we've got.
Speaker #1: So yes, Q3 will be busy. Q4 will be very busy. So we expect the momentum to continue.
Speaker #2: So yes, quarter three will be busy. Quarter four will be very busy. So we expect the momentum to continue.
Speaker #2: All right. Okay. Thank you for that, Louis. And we will thank anyone who asked questions. If you feel that you need more meat on the bone, please contact the company and its IR.
Speaker #1: All right. OK. Thank you for that, Louise.
Speaker #2: Thank you.
Speaker #1: And we will thank anyone who asked the questions. And if you feel that you need a more meat on the bone, take contact with the company and its IR.
Speaker #2: So with that, I would say thank you so much. Tack ska ni ha. And see you later. Bye.
Speaker #1: So with that, I would say thank you so much. Tack ska ni ha. And see you later. Bye.
