Thank you very much, and welcome to all of the attendees. Let me first give you a short introduction to RTX. Some of you might know RTX, and some of you might not. So who is RTX? Well, basically, we have been working with developing wireless communication solutions and products for critical environments for more than 30 years. Our main specialty are three segments where we deploy our technology. So one is enterprise, where we deliver headsets and handsets to different environments such as warehouses and office buildings. One place where you might find our products is if you go to the local grocery store, you will find these push-to-talk headsets that really enable good customer service and safety for office staff. So that is where you will find our products. We also have a segment into healthcare, where we develop wireless infrastructure for monitoring of critical heart patients.
So really allowing heart patients to freely move around because they are connected to surveillance equipment wirelessly. It also allows the clinical staff to have a more optimized day-to-day work because you can do centralized patient monitoring. Then finally, we actually also deploy our technology as a chip where we enable our customers to building wireless solutions with secure and wireless technology, and that can be deployed in anything from defense, first responders, but also into ProAudio. We do all of this in an OEM model, so you will not find the RTX brand in the store. But you will find our partners' brands in the store. Partners that we have been working with for decades. The likes of HP, Cisco, Philips, Alcatel-Lucent Enterprise, that brings our product to market.
So that was the very quick flyover from RTX, and then I will hand over to Mille, who will lead us through the Q3 results.
Yes. Just in a few minutes, I will take you through the main results for RTX. The first nine months, revenue went up by 8%, corrected for constant currency. Gross margin increased to 54.8%, up 4.1 percentage point compared to last year. EBITDA rose by 35% compared to last year. I will dig a little bit deeper into those numbers just in a second. The last thing that happened in Q3 is that we extended the current share buyback program we had last year. We approved a share buyback program of DKK 20 million, and we extended that with another DKK 20 million in the quarter. So if we take the highlights, the next slide, yes. We see a revenue of DKK 150 million for this quarter and DKK 416 million for the full nine months.
You see in the graph on the right there, you can see the distribution between quarters and a relatively even distribution compared to last year, but an increased profitability. That leads me to the next slide, which is the gross margin, where we see an increase both when we compare to the third quarter last year and when we compare to the first nine months of last year and when we compare to the full year. The reason for this is the split between the segments. First, I will just take you through the development of the EBITDA, because with the business that we have, the impact of gross margin very much goes to EBITDA, because our capacity costs do not scale at the same rate as our revenue or EBITDA.
To understand a little bit better why this increased profitability is shown in this first nine months to the extent that it is, I will just take you through the development in the three segments. So we have, as Henrik mentioned, Enterprise, ProAudio, and Healthcare. ProAudio and Healthcare are the two segments with the highest margin. Enterprise is our biggest segment where we have the largest share of revenue, where we have got solid long-term partnerships, but it is also a segment where the growth in the market is lower than the two others. Therefore, when we see a different distribution as we had in the first nine months compared to last year, where ProAudio and Healthcare takes up a much bigger share, we see that reflected in the gross margin for the whole company.
ProAudio, a couple of years ago, decided that we wanted to focus on module business, standardized products, economy of scale, and that seems to pay out as we see here in the growth. Healthcare growth is one of our strategic investment areas, where we have also seen a significant growth in the revenue. This leads us then to the outlook, where we this morning increased our outlook for the year, and we increased mainly on the profitability markers, EBITDA and EBIT, but also a little on revenue. The reason for this is that basically now we have a solid 10 and a half months, a month and a half to go in the quarter, and we feel that we are relatively sure that the profitability that we can predict is there.
The reason that you can say the interval is still relatively large is the component situation, where delivery lead times of components is a big challenge that we are facing. But increase of profitability on EBITDA from DKK 35 million to DKK 65 million, up to DKK 50 million to DKK 75 million, and on EBIT from DKK 0 to DKK 30 million, up to DKK 20 million to DKK 45 million. With that, kind of support our long-term ambition. So will you say a few words about that?
Yeah, of course. Thank you, Mille. All in all, I think the first nine months is definitely pointing in the right direction, even though Q3 have been impacted by limitations in component supplies. We are seeing strong market trends in the segments that we also pointed out in our growth ambition that really should drive our future growth. Both the healthcare, but also the turnaround on the ProAudio business, and also as part of the enterprise business, our retail, these push-to-talk headsets are really showing a positive drive, and we see a positive market pull of these.
And, of course, happy to see also that we are able to turn this into both growth on top line, but very much seen from the first nine months on the EBITDA and EBIT, which I think is so important because that allows us to reinvest into the business, harvesting more of the future growth opportunities. Yeah.
Thank you, Mille and Henrik. Wow, what numbers you got here and an upgrade. Henrik, what are you most pleased with in the Q3 results?
Well, I think, of course, the underlying market pull, I think is the most really affirmative trends that we're seeing beneath our strategy and our growth ambitions. Of course, we are challenged by the component situation, the limitation of components, but I think that also shows some of our strength, that we are able to, even in difficult circumstances, both to increase our earnings, because it's not only on delivery capabilities, also pushing pricing on components. And that our team that are really working extremely hard in managing this, both with our customers but also with our suppliers in managing this different situation and still shown a nine-month growth trajectory. I think that is what I'm most pleased with.
But you could have sold more?
Yes. If we had unlimited capacity and unlimited component supply, yes, we could have sold more. We are managing that and trying to manage that also going forward in close dialogue with our customers, so we can align deliveries to customers over time.
How much more could you have sold in the third quarter?
Well, I cannot give you detailed numbers, but it would have, of course, delivered a better result than we are seeing on top line. But we are working diligently, really, to be able to deliver that over the next quarters.
And you are saying you are working on it for the next quarters, but will this problem continue the coming year?
Yeah, I think that is a reality. The root cause behind all of this, or there are more, but the main root cause is really the push for data centers, which is driven by the AI pull, and that really pushes the electronic supply chain to its utmost . So it pushes the ICs, the memory, and now even the PCB, so that is your printed circuit boards. And building data centers, they pay huge amount of money, so the margins on that is higher, and that is challenging us. And we are foreseeing that going into 2027 as well. Yeah.
How are you working with this?
I think there are three main elements that we are working. One is, of course, staying very close to our customers, because our customers, they are also major electronic suppliers and even producers. So being in close dialogue with them and also to manage the supply and making sure that we can still support their business is extremely important. Having longer forecast, because longer forecast visibility makes our supply team able to manage the situation much better. And then the second part , is really the close collaboration with our suppliers, the electronic manufacturers, and the sourcing being, yeah, very close to them.
But if I'm an investor, that's actually a good thing, because then you know what's going to happen in 18 months.
Yeah, exactly. Of course it is.
You know how much you can get and the price, I guess.
Yeah. Well, the price is actually a challenge because when you are in this situation, you get into something called allocation, right? So you put an order in, and that puts you in a position to, most likely you will get it. But there are uncertainties because situation change basically on a day-to-day basis. But I think that is also actually pointing to the strength of RTX, because we are working with some of the major manufacturers of the world, and our customers are some of the biggest companies in the world. And they kind of loan us their leverage so we can navigate in this. And also the flexibility in our asset light setup is, I think, even though it is a challenge, it is proving a strong point for RTX.
Mille just took us through the numbers. If we look at EBIT, you delivered around DKK 9 million in the first nine months. While your full year upgraded guidance is now DKK 20 million to DKK 45 million. That means that you need a very strong Q4. Mille, maybe you want to answer that. What makes you confident that business can deliver those numbers?
With the Q4, we need a revenue of DKK 170 million to DKK 200 million. That is something that we have done before. As Henrik mentioned, we have got a spillover or postponed orders from Q3. So on top line, we actually feel, even though the uncertainty is really high, we feel we are confident about the top level.
We have a structural issue that on the last quarter, summer holiday means that the capacity cost for staff is lower than the rest of the year. So we also feel quite confident on our capacity costs. As mentioned before, the split between the three segments also supports the gross margin, even though the share of enterprise is expected to be significantly higher here in the last quarter.
I think it is actually also, I think what we are looking at is seeing the effect of our business model in itself because, with the asset light setup we have, we can scale the revenue without scaling the capacity cost. So compared to last year where I think we did DKK 141 million, we are looking into a significantly improvement in that. That is what we are guiding. So delivering that will actually also, the top-up revenue compared to last year, a large portion of that will actually trickle down to the bottom line. That is also why we see and clearly expect a good impact of the additional revenue in Q4.
I know you have been working with scaling up. Are you now reaching the point where you will earn more and more, the more you sell? Earn more per one DKK or $1 or whatever.
Of course, you can say that, but of course, we are also investing into the business. You can also look at the numbers that we are significantly investing in the business because growth doesn't come for free. So we have to invest in building up customers, building up markets, building up capacity and capabilities as, for example, we have done over the last year in healthcare. We are seeing that kicking in, and of course, we also have the expectation for that to continue.
Yeah. You have more than doubled your investments in development from DKK 31 million to DKK 72 million. What are you investing in, Mille?
We are investing in healthcare. A couple of years ago, we made a contract with one of our key customers in healthcare, taking over the full responsibility for the products. That came with also taking over the development of the product so that we have the full ownership. That's the biggest part of the change. The other is that we are investing in a next-generation platform for enterprise, which enables us to both have a more secure, more future-proofed, and more efficient platform to build.
For those who are listening and who does not know what next-generation platform enterprise means, can you tell us what it is?
Well, I am a finance person, so I will try to do it from my point of view.
Maybe Henrik can help us just so everybody understands what is that.
Basically, what I understand is that if you develop software individually and hardware for each individual customer and do not reuse anything, you spend a lot of time and money. If you create one platform and small add-ons or small apps like we know, then you can still have a customized product, but not at the same cost and at a higher security, so it is easier to maintain.
So you can produce more for less. Is that, if you should
Well, we can actually support more customers on the same platform. Then of course, I think as many of the attendees also know, the requirement for cybersecurity keeps up to make sure that we still keep our technology edge in an enterprise business that we've been into for more than two decades. So of course, we need to make sure that we still support and secure that business so we're able to grow with existing customers and also bringing on new customers while being prepared for the context that we live in, where cybersecurity is a part of our daily life right now.
Back to the investments that we were talking about from DKK 31 million to DKK 72 million. When do you seriously expect those investments to turn into growth?
I think we are seeing aspects of it. You see the growth rates of 50% year-over-year from healthcare. That is definitely one of the areas where we expect over the next two, three years to really to see that payback. We see the platform approach that we introduced in ProAudio, where we really have a scalable business, and we see that trajectory going off. Then we're also seeing in the retail segment where we also with one of our major customers have really done a close development partnership and bringing that to market is really driving growth. So I think we'll see some of the investments are longer term. I think most investments we'll see kicking in over the next two to three years.
Mille, we are talking about how you are becoming more profitable, and you are making more money on what you sell. That is actually the baseline for this quarter. The gross margin has increased from 50.7% to 54.8%. Can you tell us more about this improvement, and will it continue in the coming years?
What I can say is that what we expect in the coming years is that the share of enterprise of the total revenue is going to decrease because both ProAudio and healthcare is going to grow more than enterprise. Since they are the two segments with the higher margin, we are expecting that to drive also growth in gross margin to a certain limit, of course.
Okay. If we look at the elephant in the room, that is enterprise. It is going the wrong way. How is the future looking for enterprise?
But-
That is headsets, and when you are in JYSK or Lidl, for example .
But I think yes, even though in the first Q3 and where enterprise is today, yes, we colored it yellow.
Yeah.
But we still see a strong-
Green future?
coming back even in Q4. And we see as, I think as Mille also say, we have strong belief that enterprise is a growth market. Maybe not double-digit, but single-digit growth. And because we have the position that we have where we clearly are the technology leader, we also have the opportunity to find those growth segments or niches as we've done in retail. So we do believe that we're able to also grow, and also profitably, the enterprise business.
And for you who is watching, we can see the questions are coming in. Please keep them coming. Now is the time to ask Mille and Henrik a lot of questions, or just one question. We are happy to answer them here. This back to enterprise, are you seeing signs that enterprise could return into growth to be a growing business?
Yes. Clearly. So enterprise as whole, I think it is going to be a growing business. The core will be steadily growing. But seeing that we are exposed with these customers like HP, Cisco, that are globally, that has broad solution portfolio. We have the ability to seek those growth sub verticals. And I think the best example of that is actually the retail headsets, which is part of enterprise. It is based on the enterprise platform that we are using. We just made it dedicated for the specific use in retail stores, and we will see more of those. So I do believe combined. So there will be sub segments that might go a bit down, but we will see. We will have opportunity to grow other sub segments as we have done historically.
I know you are one of the largest in Europe actually, making those.
Yeah
Business to business for stores.
Yeah, for retail.
Yeah, for retail.
Yeah.
Do you want to be the best in the world?
Yeah. For sure.
Yeah.
Yeah. But I think we have the right technology. If you look into that market, there really is a technology trend. In many countries across Europe, across U.S., if you go in, they have walkie-talkie or call buttons in there. That really is not fit for the future retail store, which is much more an omni-channel. So where you actually both have the online warehouse, but also the physical store where you can go in and get good customer service. That actually requires a different type of teamwork between the employees in stores. They need to have that hands-free, being able to move around, having crystal clear voice, being able to integrate the voice into their backend systems. There's a technology transformation going on in that, and that's what our technology is actually leading. Yeah.
Clearly, I think with our key partners, we are in the right position really to grab that position as the leading provider there.
Then we have the growth engines. Henrik, healthcare is growing by 51% and ProAudio by 42%. Are we beginning to see a more fundamental shift in where RTX growth and earnings will come from those two segments of the three in the future?
Yeah, I think so. That's also if you look at our annual report, that's actually our strategy, is really to secure the strong foundation base in our enterprise business. But building a really scalable business model in ProAudio, which we've seen the strong signs that we are delivering on that. Then healthcare as both the leading in profitability growth, but also in top line growth. I think we are seeing good signs of that, and we are delivering on that. There's a lot of stones that has to be crossed and jumped over before claiming success. But I think we are seeing good signs on it. I also think, but for sure, it will also require more investment over time, that we invest in the right products in the right markets.
But if you should choose healthcare or ProAudio, which one would you go with? You could only have one of those.
Yeah. But then you shouldn't work at RTX because RTX- No, but really, what RTX is really about, we have strong technology. We know how to build secure, reliable wireless communications, and that is needed in many segments. So I think when you buy into RTX, you also buy into that we are very focused in a number of segments where we believe we can be the winner. And that we can, I think we are the winner in enterprise. I'm sure we can be in healthcare infrastructure for patient monitoring and also in ProAudio, where we can focus on the critical communication part. So I think that is actually the strategy. It is that we have more than one growth bets and more than one growth vertical. And I think that hopefully also provides some solidity or robustness into our growth strategy.
Okay. Healthcare, if we look at that one, we've been talking a lot about that in your annual report and the reports before. Healthcare, you're moving into the U.S., and it's the communication, monitoring patients at the hospitals. When are you in the hospitals, and when are you earning money in healthcare?
So-
When is it growing? When is it a big part of RTX?
I think it is. I would say it is becoming a big part. We are in the U.S. with our customers. In the segment for monitoring critical cardiac patients, we have close to a 50% market share with our customers in that segment. That segment in itself is growing, and we see with our investments, we have a WSB access point that we are launching next year. We are doing trials this year. Is what's going to extend that and really extend that market. I think we are present in the U.S., and we're going to grow that market. There's also a European market. I think over time, for me, it's about building a broader portfolio, and I think we are on the way on that. We have spent-
Can I ask you when? It takes time.
Yeah, but-
The business has to be patient or-
I would say actually today, if you look at our organization, healthcare is a big part of RTX because we've really built competencies on that. If you look at revenue, it's moving close to 20% of our revenue, right? I think it is becoming so. I think really within the next 2-3 years, we will see that healthcare is, and I do actually believe it is today, a big part of RTX and who we are becoming.
Then we have ProAudio. That's a little bit blurry for some of the investors and the people reading about RTX. I remember something about the football fields, the sound at concerts, defense. It's a big, broad, blurry thing for some people. What are your plans for ProAudio?
I think for ProAudio, it's a clear plan, and that's what we have been implementing. It is to deliver standardized chips or modules that fits many markets and allow our customers to address those markets, whether it's solutions for football VAR or if it's Formula 1 pit crew communication, or if it is tactical teams in deployment. I think that is actually the strength because you're right, it is a lot of different markets. There I think the smart thing about our business model is that we've actually focused it on the same standardized product because that allows us really to scale it without huge investments. So that is really what we've done, and you also see, I think, the impact of that really kicking into the ProAudio business that has a strong growth and also a strong growth in-
In the future. And how big part of RTX will that be, Mille, when you look forward?
Let's see. I think what we see is that healthcare, as Henrik is saying, is our main growth segment.
Yes.
We see verticals, sub-verticals where we see potential, and not all of them are going to spin out, but some of them are going to spin out. I think we will see highest growth in healthcare, second growth in ProAudio, and then as enterprise, as a pool, the lowest growth, but still growth.
What could be the biggest obstacle looking the coming years, Mille, for RTX?
As a whole?
I think to actually continue to succeed on the growth in healthcare. Actually establishing ourselves in the healthcare market together with our customer and other customers. I think it is, combined with that, really driving the usability of our technology like we have done in retail. So using our technology to make a change, translating technology, if you will, to problem-solving. There I think we have got a really huge potential.
But also, it was the obstacle I asked about, the biggest obstacle the coming years.
The biggest obstacle, I think it is the market. How do we actually understand and address the market? How do we move closer to our customers, to our use cases? I think RTX has a really, really strong technology base, and we want to become even better at understanding customer needs, acting on customer needs, prioritizing based on market needs.
And what are you thinking about, lying at home at night, thinking about RTX? I know you are trying to look ahead.
No, no.
You came with a strategy in December. What could change that plan?
I do not know what can actually change that plan because I think that is actually the most important for RTX, is actually to have a clear direction and to be determined in the verticals and the markets and the positions that we want to be in healthcare, in enterprise, and the sub-segment of retail, in ProAudio with the critical communication. Because wireless communication can be used anywhere, and we can solve a lot of problems. I think getting that direction and determination really to grab that, to get, as Mille said, closer to our customers and really owning the solutions to specific problems and the determination that actually takes. It is not an easy journey, but I think it very much lies in our own hands in terms of we have a strong team, and we are building that team.
Having that clear direction and the ability to execute on it, I think that is. It lies on us to do so, and I think that.
Is that the hardest thing to execute?
Yeah. To be honest, I think it is easier to make a strategy. It is harder to make the strategy reality. Strategy is a PowerPoint, right? A market survey and stuff like that. But getting it executed and turning it into action that you can actually see both in financial results but also in milestones, in customer wins, getting it transformed into and getting the full organization aligned behind that. I think that is clearly the hardest part.
Back to the numbers, Mille. EBITDA has increased by 35%, you showed us before, to DKK 30.1 million, even as you are investing, as we talked about before. What does this number tell us about the underlying profitability of RTX?
The growth or the actual EBITDA?
The growth.
Yeah.
The increasement by 35%.
I think that the increase on 35% when we, you can say, only have DKK 30 million of EBITDA, the percentage probably doesn't say that much, because 35% of 30 is not so significant. But I think what it does say is that when we reach a revenue of around 600, that's when we start really being profitable and being able to invest in our future. So, as we surpass that, then we have even more to invest in future growth.
When do you reach DKK 600 million?
Who knows? Maybe this year. It is within our guidance.
Maybe. Within the guidance.
Yeah.
Then you will turn into a profitable super engine.
That is our firm belief and hope, yes.
Yeah.
All right. Let's talk about the share buyback program. You increased it from 20 to 40. Why?
We have a capital policy which says that we should have DKK 80 million to DKK 100 million in cash. The reason for that is that we need, both because we've got big customers and they look at our solidity and liquidity ratios, and because there are changes in the market. Like the component situation, where we need to be easily flexible and have capital ready. You probably also saw that we had DKK 135 million at the end of the quarter, which is more than that, and that's basically why we are initiating or extending.
Is it hard to balance giving capital back to shareholders and investing?
You can say this is basically a broad priority to say when are we investing. But as long as we have a capital policy, and that's the idea of having a capital policy, that it's transparent for investors what do we do with our excess cash.
Yeah.
All right. The decline in the component shortages, how long do you foresee ? That was the headlines of today's news about RTX. When do you think they will finish?
Well, I don't have a crystal ball, but I think the signs and trends that we are looking for, it's going to be part of 2027, at least. I think it is going to be part of what you can say normal business in 2027 to manage that, to manage longer lead times, both to customers and to suppliers. It is definitely something that we are, of course, already have taken into account in the end of year guidance. It's also that we are looking into going forward into next year, how to navigate that. I think, even though it is a challenge and we'd rather have it without, I think we are in a good position to manage it anyway.
Okay, let's look at some of the questions that came in here. There is one: Have any orders that we were expected in 2025/2026 slipped into next year, the coming financial year, due to the component shortages, capacity limitations?
Well, the short answer is yes, but it's of course, something that we are in close dialogue with our customers about. Because to me, that's actually what matters most, is that we're able to supply to our customers so they can service their customers and have a running business, because I think that's how you drive business over time. I think we are seeing good dialogues and good understanding of that. I think, again, we are about to manage. But yes, there are orders slipping in.
For another question for customers, does this change anything about lead times, component availability or delivery commitments?
Well, I think again, that's part of the conversation that we do have with our customers. I think you can say we've gone from a few months of delivery lead times for some components, to 12 months, even longer. So it definitely has changed significantly. It's not all components, it's specifically the three categories I mentioned earlier that are challenging, that has significantly longer lead times. That's gone from few months to close to a year.
Mille, if investors should take away just one number or one financial development from this quarter, Q3, what should it be?
Well, you should never just take one number for a growth company. You should look at the revenue, and you should look at the profitability. What we are trying to do is to increase our revenue and at the same time increase our profitability. That is because we want to take advantage of the knowledge that we have and the technology we have, and convert it into revenue and profit.
Henrik, if we are sitting here again a year from now, what needs to have happened in RTX for you to be pleased?
Well, I think it is very much back to the strategy execution. It is actually continuing on the momentum and the traction that we do have. Getting our investments that we have been building over the last year or so, getting that to market, starting to getting customer interaction, servicing customers on that. Of course, driving business on it. So it is continuing the growth trajectory in healthcare. It is really seeing the positive trend in ProAudio, continuing that with strong profitability.
It is the sub-segment of retail with the push-to-talk headsets, really to see that continuing to grow, and again, capturing that market and really seeing a solid, steady growing healthcare business coming back based on us controlling the component situation. I think it is about really keeping the momentum, because I think what we are doing today and the signs that we are seeing in the first nine months is really where we want to go.
Keeping that trajectory, I think, is the most important.
Do you feel some pressure from the investors? Because I know that the stock slipped before you started. We were at the bottom in December 2024. You started in March 2025. Since then, it has gone off.
To be honest, I wouldn't call it pressure. Of course, there's pressure, but I think the dialogues I have with investors are actually more in the terms, because we have a shared target. We want to see RTX grow. If RTX grows and we are profitable, well, I'm quite sure that over time stock prices will rise, and we will all be happy. I think we have a joint goal, and I think the conversation is actually more helpful and giving specific input on how to do, and then we might have a different sense of patience on when to deliver results. And it's my and Mille's business to drive this business, not only on quarter to quarter, but on the long term, because that's what we're here for, long-term value creation.
I think it really is constructive dialogues that we're having with investors that has a shared interest in making RTX as great as possible.
Thank you, both of you, Henrik Mørck Mogensen and Mille Tram Lux. And thank you all for joining us today. A recorded version of this webcast will be on the website soon, and you will also get a link. And thank you for all the questions we got. Thank you and goodbye.
Thank you.
Bye.
Bye.