INVISIO – Præsentation af regnskabet for 2. kvartal 2026

Yes, thank you.

Thank you for that. Welcome. I will try to give you some of the important points from the second quarter. For us, it has been what we call business as usual, but of course, as always, a lot has happened during the quarter. We have seen good revenue development in line with our ambitions. We have seen some delays on various orders, including in the US, which I will come back to. Also a small impact on our gross margin in connection with the delivery of an order we received back in 2024. And then there was a new contract signed with UK MOD and a little at the end about our new products, which we have shown, including a small feature called Invisio Drone Aware, which has created a lot of attention. So regarding our sales, we are executing on the orders we have in the book. We are good at delivering. We usually deliver within one to two quarters on the order book we have. So revenue approximately 20% higher, and in comparable currencies approximately 23% higher than the same quarter last year. And that also applies to the first half. There we are approximately 24% over last year. It has primarily been in Europe, we have delivered a lot. We have seen strong development in Sweden as well, where we have now gained a good foothold in the Swedish army with some of the deliveries we have made here. So it looks reasonable on the revenue side.

Where we have seen some delays, I would actually call it, is on order intake and especially in the US. As you probably know, there was both in the fourth quarter last year and in the first quarter this year a partial shutdown of the administration, which means that you simply send people home, and you cannot place orders and get things moving as you otherwise would. So that just creates some delays. In addition, the new Trump administration has also made a complete reorganization of the Department of Defense or Department of War, as it is now called. And that means that a lot of people have gotten new roles, and therefore it just takes a little longer for certain activities to be completed. We have the great advantage that we have a large sales organization in the US, and they are of course on their toes now and are figuring out exactly how the new administration works and how we can get our orders through in the various parts of the US Department of Defense. But we actually think that this is mostly about timing. Unfortunately, none of our customers are interested in our financial quarters, so whether the order is placed in June or July is of no interest to them. But it matters to us. And we can see that order intake here at the beginning of July has been really good. And if it had fallen in June instead, the numbers would have looked different. So that's just how the business looks. But we expect to catch up in the second half. The pipeline for both the US and the rest of the world looks very reasonable. So we are confident about that. We also still have a good order book, and above all, we have a decent inventory so that we are able to deliver on short notice. We work with our customers in such a way that sometimes, if we have a relatively high certainty about a project or a potential order, we start building the products early so that we can deliver on shorter notice when we finally get the order. And since we primarily deliver standard products, this is a model we have practiced for a long time.

Some who know the company will know that back in 2024 we received a somewhat special order where we also undertook to deliver some communication radios as part of a package to a country in the East. And there was a part of that order that was back now in 2026 that had to be delivered. This radio order we then passed through with a very low margin. That has affected us, and that is what is affecting us now in the second quarter as well, with approximately 5% because the last part of this delivery has gone through. So the margin, the gross margin landed at 53 instead of 57, 58, as we had expected. And as said, it is about 5% that came from this last delivery on this radio order.

We sell in many different ways, one could say. We sell most directly to end customers, but sometimes a system integrator is in between. It can be large companies like Thales or Rheinmetall or others that are in between, and where we then have a lower gross margin when we sell that way. Sometimes we also sell through some resellers or local partners because that is what is wanted in that particular country. And that also gives us a slightly different gross margin. So gross margin is somewhat dependent on product mix and customer mix in a given quarter. And that is also why we actually do not have a public financial target for our gross margin. Instead, we have it on our EBIT margin. That is what we measure ourselves on. We will come back to that. On our costs, they are largely in line with the first quarters, slightly higher than last year. Our costs are primarily for development projects and for our sales personnel and our development personnel. So the growth we have seen in costs is mostly about hiring more people. And we do that of course because we need to be able to meet the activities in the market, and also the collaboration projects and ideas we get for new products and development of existing products, which are things that can generate revenue further down the line. So it is all in line with our internal plans.

The margin, the one we measure, our financial target is a revenue growth of approximately 20% per year on average. And then an EBIT margin of 20%. We increased that last year from 15% to 20%. And you can see now in the second quarter we are at 15.3%. If you look at rolling four quarters, we are at 17.7%. So we are somewhere between the old target and the new target. One could also say that at least in recent years, the second half has been better than the first half. So let's see how it looks this year. But we are certainly well on our way towards our EBIT target of 20%. And as we always say, you cannot judge a company on a single quarter. There is too much volatility in order intake and delivery, so you should preferably look at four quarters and judge on a rolling 12.

We have talked a bit about inventory. We have an inventory of approximately 300 million, and that is finished products, but also key components. We have no problems sourcing components, as it looks right now on the world market. And we constantly try to, if we can see that there are problems somewhere, or potential problems, we try to buy in so that we at least have enough for a couple of quarters, so we do not end up in a situation with either rising costs or problems finding components. Cash flow we usually do not talk so much about. We have a very simple business. What affects the cash flow here is really just that we have paid dividends in the second quarter in line with our financial targets for that.

And on the more operational side, we have a new headset, a hearing protection solution called the Invisio T30, which is truly state of the art and is now being launched on the market. And here we have introduced a new feature that we call Invisio Drone Aware. And it is about the fact that in the war in Ukraine, more people die from drone attacks than from artillery. And often, from the moment you are detected by a drone to the time you are hit by another drone, not much time passes. And what we can do with Drone Aware in our solutions is to give those close to the front a few extra seconds so that they can actually hear and detect the drone before they can see it. And then they have the opportunity either to try to shoot it down or to get away and hide so they are not hit by it. So this has created a lot of attention in a number of countries, also in countries that have problems with internal homeland security. So this is an important feature for our new products going forward.

In the quarter, we were also approved by UK MOD under a large framework agreement that includes many different parts of the communication system, also some things that are not related to us. So it is a very broad contract, and it can amount to, I think, 8 billion pounds over seven or eight years. But the important thing for us here is that since we have a company in the UK that we bought five or six years ago, we are now fully established and we are now able to, it is like a license to operate. We have been approved to be able to deliver to the UK. So when they have a need, when they send out a tender, we are pre-qualified to bid on it in the future. So that is important for us, and it is in line with our desire, as the UK is a home market for us because we have our own company there. We have nothing guaranteed, neither volumes nor anything else under this. It is like a license to operate, one could call it.

In June, the world's largest defense exhibition took place in Paris, outside Paris, Eurosatory 2026. It was the largest ever with, I think, over 30,000 exhibitors and about 150,000 visitors. It was extremely busy for about five days. And we still have the impression that we are very well positioned in relation to the trends in our market. And also in relation to competitors, we are very well positioned and have a fantastic product portfolio. It is very much about digitalization. It is about products that need to be able to work together on a soldier, but also connected to the vehicle. There can be sensors, and there can be unmanned systems, where everything needs to work together in a large system and share information with each other. And we have products and solutions that fit very well into this. So we are at the forefront of these things. So there is a great interest also for a number of the products we have launched during the year, where the Invisio T30 headset is one of the most important for us. The next is the Invisio Link, which is a wireless intercom system, and that was the one we got a large framework agreement with the US Coast Guard just before Christmas, which we will now deliver on over the next 10 years. And then there is what we call HCI, some data hubs that can integrate many different types of equipment that a soldier has on his body. So we are ready for this, and we are building extra production capacity now in the latter part of the year to meet the demand we see, especially for our T30 headset.

So in summary, one could say a reasonable quarter. A bit low on order intake, but it looks fine for us. We have a good pipeline. July has started well. There is still a lot of activity in the market, and the structural things happening in our industry are ongoing and will continue for a number of years. So we are in a good position, and we are confident that we are looking into a good second half and of course also into 2027. So with that, I will conclude here and of course gladly take questions.

We have a very simple business model because we buy products from our suppliers, the factories we work with, and then we sell them on. And we actually have 30 days with the supplier and 30 days with the customers, and everyone pays on time. So it is super easy. So what really does it is timing. So if we, for example, invoice a lot in the last 14 days of the quarter, then we only get paid 15 days into the next quarter. So there will be some overlap between quarters. So that is what is constantly reflected in our cash flow. But as said, it works really well. Everyone pays on time, and it is 30 days. So the wheel keeps turning.

Well, it is simply how it has been for the last 20 years that I have been here. At least the last 15, where we have gotten the company going. So that is just how it is. We usually say jokingly that customers are quite indifferent to our financial quarters, so they do not try to pay or place orders by June 30. It comes when it comes. And unfortunately, that is the reality we have. That is also why we constantly hammer in that you should look at 12 months at least to get a smooth picture of how it looks. So we have just lived with that volatility, and it sometimes hits, for example, if it hits in the fourth quarter, if we have a large order that suddenly slips into January instead of December, then it can affect a whole year, but you just have to take a slightly longer perspective when looking at it.

Yes. That is because we can see our pipeline, it is still intact. Nothing of it has been, and we also know that their budgets are also intact, but a lot is happening in the US right now, and they are also involved in the Middle East, so some have their heads a bit elsewhere than on the daily business in the US Department of Defense. So it is a bit, a lot is happening, as said, the money is there. And we hope and believe that the third quarter here will be reasonable, because it is the last quarter of their fiscal year. They run September to September, so there are probably some funds that need to be used now in the next quarter before the year ends. But into next year again, they have increasing budgets in the US. So again, it is also just a part of the volatility we have seen for a long time.

One could say at a high level, there is a great interest, and that means we are sending a lot of units to customers for testing. And it is not because many will say we need it and we want to order it immediately, but then there are processes where there needs to be a budget, and someone needs to approve the order and so on. So even if someone says they want it right now, there are just some things that take time before it goes through the system. And that is also why we have said that we are starting to build more production capacity already now. So that when the orders come in, we do not have to start from scratch. So we are starting a second factory here in the third quarter to produce the T30, so we have two factories running. And there we can also expand to run more shifts and put more people in and so on. So it is something we can expand continuously into 2027 and beyond, so we can deliver very large volumes when it becomes relevant.

Yes, again, one could say we have a very simple business model with external manufacturing, and that means that in certain quarters, for example, the fourth quarter of 2025, we think we were up around 30% EBIT. That just shows that if we get the orders in on time, we can actually increase EBIT quite quickly. So again, it has a bit to do with timing. But our main focus right now is to take as many orders as we can and get a good foothold in all the different markets we operate in. Then EBIT comes a bit in second place. It is like the next step. We of course need to have a good EBIT margin, but in this market where a lot of money is coming into defense, it is the part that is most important for us, that we are really everywhere there are opportunities.

Yes and no. I can say that July started well, without giving any numbers on it, so it started reasonably. And if those orders had just come a week earlier, they would have gone into Q2, and then it would have looked completely normal. So it is just the volatility. We do not guide, and that is simply because of these timings we see back and forth, we would guide incorrectly almost no matter what we say. So we refrain from that. We focus on getting orders in instead. So the pipeline is very good both for this year and next year. And if we just get a significant part of that pipeline in, then it looks reasonable.

Thank you. Have a good summer.