Good morning, everybody, and welcome to HAV Group's presentation of fourth quarter and interim full year financial results. Presenting together with me today is Pål Aurvåg, our CFO. Today, we have the usual agenda. First, I'll give you some highlights of the quarter, then a presentation of HAV Group. I will give you more details about each of the business segments. Pål will take you into the details of the financials, and afterwards we will also have a summary and an outlook on our perspectives for the future for HAV Group. As usual, we also have a Q&A session at the end of our presentation, and you can still send in questions using the link that was in the stock exchange announcement that we have sent out.
Q4 2025 was the best quarter, as we have guided previously. We had the highest revenue, EBITDA, and margin of the year. The revenue was NOK 268.1 million, and the EBITDA NOK 16.3 million. The Energy Design & Smart Control continued to deliver strong results, and we have ongoing initiatives to strengthen performance in other business areas. We had an order intake of NOK 146 million, which gave a solid order backlog of NOK 1,143,00,000 at year-end.
Far in 2026, we can mention contracts for ferry chargers to Fjord1 in the Energy Design & Smart Control segment, contracts for 10 ballast water treatment systems in the Water Treatment Systems segment, and an extensive contract for upgrade of previously designed vessel in the Ship Design segment. 2025 has been a year that has proven that the investments and measures implemented over time have given the expected returns. Q4 was the fifth quarter in a row with positive EBITDA, resulting in a year with significantly improved EBITDA results versus previous years. We also experienced a 5% growth in revenue, and the full year EBITDA margin was 2.8%. With the backdrop that two of the business segments were underperforming, this shows that we still have potential for further improvement.
As mentioned, the order intake in the quarter was NOK 146 million, and the order backlog NOK 1,143,000,000 at year-end. This order backlog does not include service and aftermarket revenue. As you see from the bar chart on the right, the order backlog to be delivered in 2026 is already NOK 970 million. This gives a good visibility for capacity utilization and results in 2026, especially in the Energy Design & Smart Control segment. Before I give an update on the business segments, I will give a short presentation of HAV Group. HAV Group is an international provider of maritime technology. We are enabling optimized vessel performance and safety and operating costs throughout the life cycle of the vessels, and our vision is a sustainable future at sea.
We have four maritime solution product providers in our group. HAV Design delivers future-ready ship designs, giving value, focusing on giving value to the ship owner in the life cycle of the vessel. Norwegian Electric Systems is a leading integrator of power, electric propulsion, automation, and navigation systems for future ships. HAV Hydrogen is a supplier of hydrogen-based energy systems, and Norwegian Greentech is an innovative supplier of water treatment system solutions to maritime and the aquaculture industry. We have approximately 160 employees, and our market cap as per yesterday was NOK 403 million. These are the main industry segments that we are focusing on. Presently, HAV Design has most activity within offshore wind, ferries, and aquaculture.
Norwegian Electric Systems are represented in most of the segments, and we see a growing interest from the short sea cargo segment, where electrification is a main driver, key driver now for reducing fuel consumption and emissions in that fleet. Also the aging fleet means that can be a very potential market onwards. Norwegian Greentech has got more interest now from the land-based aquaculture segment, which is driven by constantly stricter requirements for treating water both in and out of the fish plants. Now we'll give you a more detailed insight into each of the business segments. For the Water Treatment Systems segment, the revenue in Q4 was boosted by deliveries to aquaculture industry projects and was NOK 39 million. The EBITDA was NOK -0.1 million.
Norwegian Greentech successfully delivered their first orders to land-based aquaculture in 2025, a market with growth potential for the company. The aftermarket revenue is continuously increasing on the back of a growing installed base. The order backlog increased in Q4 with new orders to sea and land-based aquaculture, ballast water treatment systems, and freshwater production. Norwegian Greentech has received further orders in Q1, among others, water purification systems to isolated communities in Greenland and 10 ballast water treatment systems for different ship owners. They are also pursuing multiple opportunities in land-based aquaculture, where timing of awards for new plants remain uncertain, but where there is potential for orders with shorter lead times for upgrading existing plants. Richard Schofield started as a new Managing Director for HAV Design in January 1st.
He has been working on implementing actions for securing orders and for strengthening competitiveness and building foundation for long-term growth and profitability together with his management team. The revenue in Q4 was NOK 25 million with an EBITDA of NOK -4 million. This financial performance was in line with expectations given the current activity level, but with room for improvement as the measures to enhance performance is giving results. HAV Design's strengthened marketing efforts are converting into a stronger pipeline, and we are pursuing several opportunities also in aquaculture to broaden our market reach. We have also launched a targeted approach to grow the aftermarket revenue, and in the first quarter, we signed a contract to upgrade a previously designed vessel, a good example of recurring business and the long-term value of our design portfolio.
For Norwegian Electric Systems, or NES, Q1 was the strongest quarter in several years, with revenue up 66% and EBITDA up 80% versus Q4 2024. Full year 2025 shows solid growth with revenues of NOK 592 million and an EBITDA margin of 11.7%. Operational performance remains strong, supported by improvement initiatives implemented in recent years. On the commercial side, we secured a system integrator contract with Fitjar Mekaniske Verksted for a live fish carrier. In Q1, we also won a contract of more than NOK 50 million to deliver two ferry chargers to Fjord1. The solid order book provides good visibility into 2026, and the positive development seen in 2025 is expected to continue in 2026. The global electrification trend gives further opportunities for growth in Norwegian Electric Systems onwards.
Electrification is a key driver for making vessels more energy efficient and for reducing emissions, while the industry awaits large-scale adoption of alternative fuels. The bar chart on the left shows that electrification already is a technology that has been adapted by the shipping industry. Several reports forecast strong growth in the electrification market with projected compound annual growth rates between 10% and 25% from now until 2023. NES see a great potential, both in increasing market shares as they already are in, but also in new markets as the short sea segment, where an aging fleet will require this technology, both for new builds and retrofits, to reduce fuel consumption and meet stricter emission requirements. As we experienced that the time for market for hydrogen-based energy systems is still unclear, we have, as previously said, scaled down the activity in this business segment temporarily.
In the meantime, responsibility for maintenance of technology and expertise, plus sale of the ZEPOD and other technology, has been transferred to HAV Group's Ship Design business. The cost spending in this segment will be at a minimum in 2026. I give the word to Pål, who will give you more details into the financials of HAV Group.
Hi, I will give you a introduction of the financial details. If you look at details for the quarter, it was the best quarter in 2025, both related to turnover and margins. The quarterly figures are in line with previous guidance and considerably improved EBITDA compared to Q4 last year and also significantly improved full year EBITDA versus last year. If you look at the figures, it's a NOK 268.1 million turnover in the quarter, EBITDA of NOK 16.3 million, EBIT of NOK 9.8 million, net finance NOK 0.6 million, net profit NOK 9.2 million, and corresponding EBITDA margin of 6.1% in the quarter. Then we also look at the full year.
We are NOK 803.1 million in operating income, EBITDA of NOK 22.4 million, EBIT of NOK 2.7 million, net finance of NOK 1.89 million, net profit NOK 4.5 million, and an EBITDA margin of 2.8%. If you look at the balance sheet, as in previous quarters, the main changes in the balance sheet are driven by operational activities. On the asset side, the current assets increased by approximately NOK 98 million year to date, caused by increase in receivables by NOK 148 million and a decrease of the cash of NOK 50 million. On the liability side, the current liabilities increased by approximately NOK 90 million year to date, driven by an increase in advance payments from customers by NOK 60 million. The cash balance is NOK 200 million at the end of the year.
If we look at the cash flow statement and notice this is the first column is compared to the last quarter, there we have a negative cash flow of NOK 68 million from third quarter. This is mainly driven by operating activities and this is caused by an increase in receivables, and is more a temporary or natural fluctuations due to our project-driven business. The net cash flow from investment activities was NOK -3.2 million, and this is related to investments in R&D. The net cash flow from finance activities is NOK 0.9 million, and that is related to repayment of the current debt.
The net change in cash this quarter then is NOK -72.3 million and cash end of the year of NOK 199.1 million. The net cash from financing activities for the full year is NOK 10 million, and we now have no long-term debt at end of the year. I will hand the word back to Gunnar to sum up and have a market outlook.
Thank you, Pål. Sum up the presentation so far, Q4 was the strongest quarter of 2025, fully in line with our previous guidance. For the full year, we delivered significantly improved financial results compared with 2024. Our Energy Design & Smart Control system segment continues to perform well, and we expect substantial growth in the maritime electrification market in the coming years. We have a solid order backlog of NOK 1.14 billion, providing good visibility for 2026. This excludes service and aftermarket revenues, which come on top of the reported backlog. Finally, we are implementing targeted measures to improve operational and financial performance in the non-profitable business areas. Looking ahead, the key global drivers are working in our favor. Stricter regulations and EU incentives make it increasingly valuable for ship owners to cut energy use and reduce emissions.
The electrification is the fastest and most cost-effective way to achieve this while the industry waits for a large-scale adoption of alternative fuels. This creates strong and growing demand for the technologies delivered by NES and the wider HAV Group. Despite the geopolitical uncertainty, the shipbuilding market remains stable, and our solid order backlog gives good visibility into 2026. Based on these market drivers and the improvements we saw in 2025, we expect continued positive development with revenue growth and improved margins in 2026. That ends the presentation. I hope we gave you good insights into what has happened in Q4 and also what we think about the outlook for this year.
Now we see that we have got some questions from you that we will try to answer to the best of our knowledge in the Q&A session. Pål, what are the questions that we have got?
Yes, let's run through them. Yes. Let's see. Yeah. Industry report points to strong retrofit growth in Europe. Are you seeing increased tender activity from ship owners in your core segments?
I would say that we have a very sound tender activity from the different segments. As I mentioned earlier, we expect, for instance, in the short sea cargo segment, that the amount of tenders and amount of ship owners either going for new builds or retrofits will increase. Since they are rewarded by taking measures to reduce fuel consumption and are also punished in the future, especially in EU, if they continue to give emissions as in the level that they are doing today. We are positive for the tender activity also in Europe this year.
Can you provide an overview of the difference that overlap between Siemens and that's a competitor, and HAV Group's offering customer segment mix and business model?
Yeah, Siemens is one of our good competitors together with others in the electric integrator segment, deliveries segment. Most of them are quite similar with regards to offering. Some of them are in a larger group with us as also NES is with offerings on the side. With particular in regards to Siemens, they have chosen to go deeper in the value chain so they have some of the hardware that we have chosen not to have in our system. We are focusing on designing and integration rather than having the hardware, so we are more asset light so the business model is a little bit different, but at the same time not so different between the different integrators, I would say.
Yes, thanks. In competitive tenders of energy systems and ship design, where do you see HAV Group's main competitive advantages today?
I would say that one of the advantages is, of course, that we have both the ship designer and the integrator. The designer always have a total picture on all the different elements in designing the vessel, from the hull form to the machinery to power systems and everything.
Based on what gives value to the ship owners in a life cycle perspective, designing the best vessel. When you're close to the system integrator, which takes care of the whole energy system and electrification, then you also have some advantages by cooperating closely between those two. I say, I would say that is one of the key aspects to competitiveness against our competitors.
Yes, thanks. The Norwegian market is often seen as a technology front runner, but relatively small in volume. How important is the broader European market for the HAV Group's growth?
I would say that the Norwegian market has always been very important for Norwegian suppliers and Norwegian technology developers. That is because we have a very strong shipping business with strong ship owners in very many different segments, and they are working closely together with Norwegian suppliers to develop technology. Technology developed together with Norwegian ship owners is the best technology that you can develop and also give us a good platform for exporting this. After Norway, of course, Europe is the main and most important market also for the different business segments in HAV Group.
Europe is a big potential for us to go further into and expand our market shares in Europe, in addition to Norway and other segments or geographical markets that we are already in.
Yes. You are guiding for both growth in margin and growth and margin improvement in 2026. What specifically will drive the margin uplift beyond Energy Design & Smart Control continuing to perform strongly?
Of course, energy design and smart control will be the carrier of HAV Group also in 2026. We have invested also a lot of measures or taken a lot of actions in the other two business areas in HAV Design and in Norwegian Greentech, in order to utilize the possibilities they have in the existing technology, developing new technology, and entering into new markets. I would say that it will be like a consolidation and also a growth, starting of a growth for the two other business segments. The backbone of the financial results also in 2026 for HAV Group will be Norwegian Electric Systems and the energy and design and smart control segments.
Yep. The Ship Design still shows negative EBITDA due to low utilization. What needs to happen in the market for the segment to return to normal profitability?
We see good development in the markets that HAV Design is focusing on. We have been working very hard and Jon also with regards to the new team, Richard with his new management team, have started new actions with regards to reaching out to new customers, be more targeted and precise in marketing the advantages of HAV Design. That is, I think, the main things that needs to be done in order to increase the pipeline, increase new orders, and also increase the activity level in HAV Design. Hopefully, during the year, we will see good results of this and that the order book will pick up, and we see a positive trend also within the Ship Design segment.
Yeah. Water Treatment is showing improved activity and new contracts after year-end, but profitability remains weak. What gives you confidence that 2026 will be different from 2025 for this segment?
Again, it's the long-term working into new products and new markets. The strong foundation or the strong base of Norwegian Greentech was from the start of the ballast water treatment systems. Now we have added on fresh water production systems. We are entering into new areas within aquaculture, land-based aquaculture, and it takes time. As I said, especially land-based aquaculture, the lead time for new orders can be longer than we are accustomed to. We see also there is a great market for retrofitting and upgrading of systems on the land-based aquaculture that is already existing. For instance, the small-scale salmon production that we have, or small-scale salmon production that we have for the fish farms in the sea, there's a lot of them in Norway.
They also need upgrade because the requirements for water treatment, both inlet water and outlet water, is becoming stricter. Hopefully that market can fill up something in the meantime while we are working with the more long-term markets within aquaculture on land.
Yes. Results have improved, but operating cash flow is negative and accounts receivable have increased. How do you view development in working capital and when should we expect cash conversions to improve? Yes, the accounts receivable has increased, but that's more or less due to less than normal cycle in our project business. We expect improvement in margins for next year, and then it's natural for us that also the working capital will improve. We have no long-term debt at the end of 2025. We expect that also, of course, related to improved margins, and we will see an increase in working capital.
Yeah. Q4 was strong, but order intake was only NOK 146 million and book-to-bill 0.54. Is this merely quarterly noise or does it indicate something about activity level going into 2026?
Yeah, quarterly noise, I think is a good description because the order intake from quarter to quarter can vary quite a lot when we have this project driven business with quite large orders and in one quarter, suddenly you can fill up the order book and the next one it's a little bit slower. For 2026, the order book for Norwegian Electric Systems is already very, very high and we need to fill up in the other ones. But we don't see any negative trends with regards to the sales pipeline. We are working continuously to feed the pipeline, and hopefully you will see that also in the order book in the coming quarters this year.
Yes. Has HAV Group eliminated all the debts and how much debt was reduced in Q4? Yes, we have all eliminated all the long-term debt, and we reduced it by approximately NOK 1 million in Q4 and NOK 10 million in total in 2025. You highlighted the backlog does not include service and aftermarket revenue while also pointing to aftermarket as an important margin driver. Can you quantify revenue and EBITDA from this in 2025?
Yes. Normally, on the aftermarket has good margins, often better margins than you have for new sales. We see that the portion of aftermarket and service revenue is growing constantly. We have not published any specific numbers, so I cannot do that either now. I can say that all the business segment, they are targeting aftermarket, both because it gives quicker returns in revenue, but also, as you point out, that the margins are very good there. We see a potential in all of the companies to increase even more the activity towards the aftermarket and we hope to see a continuous growth in that business segment.
Yeah. Why does HAV Design introduce new design series during periods of low activity?
Good question. Even though there has been fewer orders than we would like the last couple of years, we are working very heavily with customers and offering new designs to the customers. We have not been publishing particular new series, but we are targeting the shipowners and the markets that we find attractive directly with our new designs. If that will change in the future, I'm not quite sure. Richard has a lot of ideas on how to improve our market presence, how to be more targeted, and how to get new orders. Maybe you will see some new ideas also with regards to that. Rest assured that we have not been sleeping in the meantime.
We have been designing a lot of new SOs and offer them directly to the customers.
Yeah. Why aren't Asia and other markets important for HAV Group?
Asia has been important, is important, and will continue to be important. We see, for instance, that Norwegian and European ship owners are building a lot of vessels in Asia, in India, in Korea, in China. We have also traditionally been following the European and Norwegian owners to Asia, and we will continue to do that. We will also strengthen our presence in the important markets in Asia. This is a focus that we have had and will continue to have onwards.
What type of margins do you expect on the backlog compared to historical projects? What is realistic margin level for the next 2-3 years?
For those who has followed us now the last couple of years, you've seen that we have one type of guiding. We are guiding for what will happen in the present year, and now we have started guiding for 2026. What we say, based on especially the order book but also the market trends, is that you can expect a positive development both on revenue and margins for 2026. That is what we have guided so far, and I cannot guide any more either in this webcast.
What concrete measures are you implementing to improve margins in Ship Design and Water Treatment?
Key issue there is, of course, sales and to increase activity. Both those companies are efficient and organized, and they have the technology, so we just need to strengthen sales. We have done that. We have done a lot on how we are approaching the customers, how we are approaching the market, how we present the technology. I'm quite sure that you will see results from that in our order book in the coming quarters in 2026.
Do you consider any strategic review of some of or all your business segments in order to streamline and maximize shareholders' value going forward?
That would be a decision of our board and not something that we will publish in a webcast. In case something like that has been done, of course, that will be published. We have no information about anything like that presently.
Yeah. I think that was all of the questions that we have received.
Yes. Pål, and the audience, thank you very much for watching. Thank you for providing good questions. I hope you will continue to follow HAV Group. We will do our utmost to deliver on what we are promising and to constantly work for generating value for our shareholders. Thank you very much.