Good morning, everyone. I am Ole Falk Hansen, the CEO of Nekkar. Welcome to the presentation of our third quarter results for 2026. Nekkar is a long-term industrial company builder focused on ocean-based technology companies. The Nekkar Group consists of five operating companies, and FiiZK is now 100% owned and consolidated from the third quarter this year. The Nekkar operating companies are exposed to four main end markets, with defense and maritime being the largest. The target market revenue mix is also fairly balanced across these four end markets, providing a good diversification. Let me take you through the highlights of the third quarter. It was a pleasure to yesterday announce the award of the largest contract in the company's history for Syncrolift.
Due to ongoing work with the customer, I am not able to disclose neither the counterparty nor the exact size, but it is with a U.S.-based customer, and we have defined the contract as substantial, meaning it is above NOK 800 million. Work will commence immediately, with delivery scheduled for 2028. This will positively impact our coming quarter results, and we remain positive on further order intake in the coming quarters. More on this later on. Moving on, Globetech consolidated its Satco acquisition from 1st of August. Including Satco, Globetech revenue grew 40% year-on-year to NOK 32 million in the quarter. In Intellilift, two further Smart Connect contracts were signed in the quarter, bringing the total to four. For the financials, revenue came in at NOK 175 million against NOK 124 million in the same quarter last year.
EBITDA was NOK 11 million, up from NOK 3 million a year ago, giving a margin of roughly 6%. Net profit was NOK -3 million against NOK -5 million in the third quarter of 2025. Cash flow from business was positive with NOK 37 million in the quarter, ending cash at NOK 176 million in addition to our treasury shares with a cost price of around NOK 69 million. Third quarter revenue of NOK 175 million is up from NOK 129 million in the second quarter, mainly because FiiZK is consolidated from July. The quarter had very low Syncrolift project revenue. The EBITDA margin of NOK 11 million gives a margin of just above 6%, which is up from 3.6% in the second quarter. Order intake in the quarter was close to NOK 100 million.
However, Q4 has started extremely strong with the recently announced Syncrolift contract making the most out of the quarter-to-date order intake, which is currently at around NOK 950 million. The order backlog going out of the quarter was about NOK 1,100 million and is today of around NOK 2 billion. Moving on to Syncrolift. Order intake in the quarter was only NOK 30 million, all from aftermarket business. There were no new new-build awards in the quarter. However, yesterday, we signed the largest contract in Syncrolift history, which I will get back to on the next slide. Tendering activity remains high across both defense and commercial segments, and defense makes up the largest share of what we are bidding on, or around two-thirds of the tender pipeline. Third quarter revenue was only NOK 39 million against NOK 58 million in the same quarter last year.
New projects signed earlier this year are still in the startup phase, and also some aftermarket business were moved to later periods. The EBITDA was around NOK 0 million due to the low revenue. Execution on ongoing new-build and upgrade projects is according to plan, and the projects awarded in the second quarter are now in the engineering phase. Aftermarket activity was somewhat lower in the quarter, as some spare parts and inspection deliveries were shifted to later periods. As you know, after quarter end, Syncrolift was awarded a contract by a U.S.-based customer for the design and supply of what is the world's largest shiplift to be delivered. The contract value is undisclosed, but it is labeled as a substantial contract, which for Syncrolift is defined as above NOK 800 million, and it is the largest contract in the company's history.
Work will start immediately, with delivery scheduled for 2028 and onwards. The award confirms that our technology and track record are competitive, and it strengthens our position as a leading supplier of shiplift and transfer system to both naval and commercial shipyards worldwide, including the U.S. It is also a great validation of our competitiveness in the U.S. market. Further details about the project will be announced soon in agreement with our customer on this project. The Syncrolift order backlog stands at NOK 633 million at the end of September, and the U.S. contract comes on top of this and will be included in the fourth quarter order intake. Tender activity in the new-build and upgrade segment remains high. The total pipeline of tender is around NOK 8 billion.
With the booking this week, we have made significant progress in this year's booking, and we expect only minor contracts to be concluded before year-end. For 2027 and 2028, we continue to see high tendering activity, with about NOK 4 billion of contracts to be awarded in each periods. As mentioned, majority of the contracts, or around two-thirds, are driven by defense demand. Moving on to Intellilift. In the third quarter, Intellilift signed two further Smart Connect contracts, bringing the total to four, all with integration of various downhole third-party applications. Total awarded automation system remains at 17. The third quarter revenue was NOK 22 million, up from 17 last year, with a strong EBITDA of NOK 10 million and a strong margin of 45%. Improved profitability was supported by favorable revenue mix, including growing contribution from SaaS revenues.
On the operation side, installations timing under the 11x contract has been adjusted to the customer project schedules, so some installations move into coming quarters. At the same time, work installations is progressing on several rigs at the moment. SaaS automation software is now live on six rigs, and we expect two to three more in the fourth quarter. Smart Connect is installed and running on two rigs, with further startup planned in the fourth quarter for the remaining two in backlog. In Globetech, we continue to see good commercial activity, and the Satco acquisition is now part of the numbers from 1st of August. The contracted fleet ended the quarter at 261 vessels, up from 224 at the end of June, as the Satco bolt-on acquisitions added contracted vessels covering connectivity services to clients.
Third quarter revenue was NOK 32 million, up from NOK 23 million last year, but now also including Satco in two months. The EBITDA was NOK 6 million, with a margin of 18%. Hardware sales were lower in the quarter, which was offset by contribution from Satco. Globetech continues to grow with a meaningful share of recurring revenue.
Turning to Techano Oceanlift. We continue to tender within our core markets on known projects and risk. Our focus remains on repeat product deliveries, where we know the cost and also the associated risk. At the same time, we have not landed orders for quite some time. Third quarter revenue was NOK 15 million against 32 last year, and ongoing projects moved towards completion. EBITDA was minus five, and there were no new cost overruns on the ongoing projects, but lower activity weighs on the profitability, and the remaining backlog is somewhat limited.
The first 70-ton active heave compensated crane has been in stable operation since June with good feedback from the customers, and the second 70-ton crane has also been delivered. Production of the two remaining 150-ton contracts is progressing well, and we have also improved our execution and follow-up on these two remaining projects. Moving to FiiZK. The market interest in closed containment continues to build. The government incentives remain a positive structural driver, and the government is set to propose a new countrywide zero-emission scheme for aquaculture, which would strengthen the case for closed containment solutions further. The previous deliveries to Mowi has established a clear proof of concept for Protectus and FiiZK. At the moment, FiiZK has active dialogue with several Norwegian and international salmon farmers, and some projects are nearing decision. As a reminder, this is the first quarter with FiiZK fully consolidated in the Nekkar Group accounts.
Third quarter revenue was NOK 70 million, with EBITDA of 4.3 and a margin of 6% as the ongoing project progresses. The four-unit Protectus order to Mowi is progressing according to plan and will be delivered over the coming six months. Let's take a closer look at some of the key financial details. Revenue for the quarter came in at NOK 175 million, up 41% year-on-year. FiiZK contributed NOK 70 million in the first consolidated quarter. However, low activity level in Syncrolift and Techano impacted the revenue. The EBITDA ended at NOK 11 million. The drivers are Intellilift, with NOK 10 million of EBITDA and a positive first contribution from FiiZK. EBIT came in at NOK minus three after depreciation and amortization of about NOK 14 million, up from five, mainly due to the FiiZK consolidation.
This slide shows the key financial metrics for our operating companies, and a more detailed breakdown is also available in our quarterly Excel upload. The main changes to the balance sheet this quarter comes from the Satco acquisition, consolidated from 1st of August, and the first full quarter with FiiZK. Total assets came to NOK 1,008 million, up from NOK 941 million at the end of June. Satco added NOK 20 million of intangible assets, of which NOK 13 million is goodwill.
On the liability side, long-term provisions increased to NOK 98 million. This covers estimated payments for the remaining 33% of Globetech in 2028 and the remaining 40% share of Satco in 2029. Long-term interest-bearing debt of NOK 16 million is all in FiiZK. The equity ratio is at 40%, down from 47% at the end of June. Working capital stands at minus NOK 126 million, driven by customer prepayments. Turning to cash flow.
We started the quarter with NOK 167 in cash. Cash flow from the business was solid with NOK 37 million, driven by EBITDA of 11 and a positive change in the working capital of NOK 38 million. We spent NOK 10 million on share buybacks during the quarter, and the Satco acquisition had a net cash impact of minus 16. We ended September with NOK 176 million in cash. Nekkar retains a strong financial foundation with a cash of NOK 176 million and treasury share of NOK 69 million of book value. Bank financing is still available through our flexible framework with Danske Bank, tailored to each investment opportunity. Let me summarize. Yesterday was a big milestone with Syncrolift landing its largest contract ever and more than three times the size of the previous largest contract in Syncrolift's history.
Intellilift continued to deliver to its customer as the leading independent offshore drilling automation and integration provider. Our portfolio has grown with FiiZK in its first consolidated quarter and Satco joining Globetech from 1st of August, and neither required new bank financing in Nekkar. Thank you for listening, and let's round off with some Q&A.
Okay. Let's start with a question on Techano Oceanlift. This is another quarter in which Techano has made a negative contribution to the company's results. The situation does not appear to be changing. If the outlook remains favorable, are you considering divesting this asset?
Yeah, so I think with Techano, we have an obligation and a commitment to deliver our ongoing projects to our customers, and we are progressing with good execution on those four projects, whereby two are now delivered. In parallel with executing these contracts, of course, we have to evaluate strategic options, both signing new contracts with customers and also evaluating whether there are better places for Techano. This is still ongoing, and we expect to continue to progress this work over the coming months.
Thank you. Moving on to FiiZK. FiiZK is currently executing four projects involving the supply of containment systems. One might assume that such a workload would ensure adequate profitability for the company. However, it is posting a loss at the EBIT level. What is the reason for this loss given such a high volume of project activity?
Yeah, so I think on FiiZK, it is important to also say that historically, there has been large investments into technology and R&D, meaning there is a kind of a meaningful intangible assets which are depreciated through the EBIT figures. However, looking at the current run rate of investments into our R&D, they are quite limited, as we have done the majority of the developments in FiiZK. I think that is a comment to the difference between the EBITDA and the EBIT. I think secondly, of course, we expect the FiiZK execution in terms of contract margins to improve and progress. This will take place day by day as we are delivering further systems with more known costs and more known suppliers. Of course, we are also optimizing our supply chain, and of course, also looking into how we are pricing our products in terms of new orders.
Thank you. Moving to Intellilift. On the 11x automation award, can you elaborate a little on any updates to the calendar and phasing of installations, such as how many rigs has been installed or what we should expect for Q4 and into 2027?
Yeah, so in our third quarter reporting, in the graph on the page, actually all of the 11x are part of the order, the volume. We are currently at the moment installing the automation systems on several of these rigs. Of course, the quarter end cutoff can sometimes be somewhat misleading in terms of how well are we progressing. Having said that, there has been some delays on the customer side in terms of the rollout. However, we have now kind of stepped up in the installation phase with several rigs under installation.
Thank you. There is a question on, can you elaborate a little on the economics of automation and Smart Connect and how these differ?
Yes, so the automation software is a more holistic and comprehensive installation whereby Intellilift is implementing its drilling automation software products. So, of course, this has a more significant SaaS component as it has a larger product offering. For the Smart Connect, of course, the key product and the key feature is basically to provide integration of third-party software and tools a lot into the downhole applications software, whereby Intellilift is adding an integration layer and, of course, taking a subscription payments for that, but being less significant in terms of SaaS revenue.
Thank you. Moving to Syncrolift. First on the pipeline, is the NOK 8.1 billion already net of the U.S. award? Can you elaborate a little on the moves from last quarter's tender pipeline with respect to NOK 1 billion moving from 2027 to 2028 and beyond, and the NOK 100 million left for 2026?
Yes. So, we have taken out the U.S. awarded contract in the figures presented in the tender pipeline. I believe last quarter when we reported the figures, we included that contract in our 2027 values, which were around NOK 5 billion. Of course, that is now been reduced to around NOK 4 billion. In terms of 2026, we do not see any larger contracts which we believe will come to a conclusion before year-end. Of course, that is still hard to estimate, but that is why we have reduced our year-end estimate for this year to somewhat around NOK 100 million. Overall, of course, the tender pipeline with the award is growing from last quarter in total.
Thank you. For Syncrolift, the won-lost chart shows one additional lost newbuild since Q2. Can you say anything about which project it was, region, and whether or not it was a defense project?
Yeah, there is a contract in the U.S. whereby Bardex Corporation was awarded one shiplift contract in the quarter. That's the one adding to the figures.
On the U.S. market, do you see winning in the U.S. market as a one-off, or has the U.S. market evolved for Syncrolift?
I think we see a stronger momentum in terms of opportunities in the U.S., which is still not fully reflected in our tender pipeline. But we see that with what the U.S. is doing now, especially on the defense side, there will be more opportunities coming up. Of course, we are now strengthening our presence in the U.S. We have also hired a senior sales representative in the U.S. in order to target this market. Of course, we also believe that the signed and soon to be officially announced U.S. order as of yesterday will help us in that kind of marketing and branding in the U.S.
Then there is a question asking, what is the largest shiplift contract Syncrolift has won in the past?
Yeah, in the past, it is the Indian Navy Vizag project, which I believe originally was signed back in 2018 or around that period of time, which is about, or at that point was about close to NOK 300 million.
Perfect. Then there is a question, does revenue on the U.S. contract for Syncrolift follow your typical newbuild phasing, or does it look different given the size and timeline? Also, how should we think about engineering and supplier capacity?
Yeah, I would say, of course, it has a somewhat compressed timeline compared to a, what should we say, a completely regular delivery. But, of course, also the size of the contract makes it significant. But I think it is fair to say that the execution will follow somehow the normal progress recognition curve. We have, of course, during the tender phase, been heavily involved with our supply chain network, and we have secured capacity for the key production items with suppliers for this contract. And, of course, due to the timeline, also the work will commence immediately in order to deliver on the customer's demand.
On the contract, is the contract fixed price, and how should we think about its gross margins compared to historical performance in Syncrolift?
I would say it's a normal fixed price turnkey contract, as Syncrolift always delivers. Of course, as I mentioned, we have secured capacity and prices on the main production items, which will be passed on. On the scope of work, it's of course a huge delivery with a huge of steel and steel work to be done. So, of course, it also has a larger share of steel work and into the delivery whereby, of course, also the margins on such a steel work pass-through is somewhat lower than kind of a more heavily technology-influenced contract. In total, we would expect that the gross margin on the total size is somewhat lower than if the scope were more limited and only focused on the key shiplift technology component items.
Here we are also producing, for instance, the shiplift platform, which is of course a huge piece of steel going into the shiplift.
On the customer, without naming the customer, could you give any color to whether or not the end use is naval or commercial, and if the facility is in the U.S.?
Yeah, it's a U.S. facility with a U.S.-based company for a dual-use shipyard. We are expecting soon to make a formal announcement jointly with the customer on this important project.
Thank you. The last question is, more generally, what is the outlook for further acquisitions and M&A activity in Nekkar? Are you currently working on any projects at earlier stages and/or considering bolt-on acquisitions?
Yeah, that's a continuous work. We have processes and dialogues on several opportunities, and of course, we will announce when things are being firmed up.
There are no further questions.
Thank you all.