Good morning, and welcome to Cavotec's first quarter presentation 2026. I am David Pagels, CEO of Cavotec, and together with me today, as I have as usual, Joakim Wahlquist, my CFO at Cavotec. I would like to start with a short introduction of Cavotec for those of you who are not familiar with us yet. Cavotec was founded more than 50 years ago by three entrepreneurs in Sweden. Since the foundation, Cavotec has focused on delivering innovative engineered solutions that enhance safety, reliability, and performance in areas such as ports and other industries where our electrical cable reels or radio remote controls are needed. Our products enables the electrification of ports, mines, and other industrial applications. As part of its global expansion, Cavotec moved to Switzerland in 2007, but last year, we successfully completed the move back of our registered office to our roots in Sweden, in Stockholm.
As part of the transaction, we are relisted on Nasdaq Stockholm with our new Swedish parent company. These moves bring us closer to our shareholder base in Sweden and will enable us to become more efficient and agile. At present, we have roughly 700 employees across the globe. As you know, we report two business segments. Our service offering is reported into those two segments. The first segment is Ports & Maritime, which provides world-leading solutions for ports, ships, and other marine applications. We have a unique system, for example, automated mooring, shore power, crane electrification, and connection and charging systems. All those systems and solutions contribute significantly to improved environments and working conditions in ports worldwide. Our customers include ship owners, operators, ports and terminals, port equipment manufacturers, and shipyards. Ports & Maritime is our largest segment and represents the majority of the group's sales.
The other segment, Industry, has a unique selling point with its ability to drive productivity and contribute to the customers' operational efficiency, electrification, as well as occupational health and safety. The products include motorized reels, hose reels, radio remote controls, power connectors, spring-driven cable and hose reels. We have customers in a wide variety of industrial sectors such as cranes, energy, processing and transportation, surface and underground mining, as well as handling. As mentioned before, service is an important and growing part of our offering and now stands for approximately 30% of the group's revenue. It is an integrated part of our business segments, and we have service engineers across the entire globe. The service offering includes system integration, maintenance, sale of spare parts, inspections, refurbishments, as well as round-the-clock service agreements.
Our underlying market remains strong, driven by the need to reduce greenhouse gas emissions, improve port environments, and increase customer efficiency. This in turn, is driven by the strong mega-trend to electrify society that we all are aware of. At the same time, we see an increasing awareness globally to reduce noise levels in, for example, ports. The need to electrify society and improve the environments in, for example, ports, also manifests in the regulations and governmental requirements that affect our customers and drive their demand for our products. Over our 50 years, we have built a strong expertise and experience in these areas, and we have a strong and attractive offering based on leading technology. This gives us the ability to grow with both new and existing customers and thereby expanding our installed base.
We have built long-term customer relationships where we work together with the customers to develop the best solution for their unique application. The installed base is important because it provides us the opportunity to offer a comprehensive range of service activities. As we have said before, we operate in a large market with stable underlying growth. Everyone knows that we go to more and more electrification. Around 60% of our business is in Ports & Maritime sectors, and 40%, the other three fall under our Industry segment. Ports, where the need for global trade is only increasing year after year, so electrification, safety, productivity are key. Shipping cannot really be more global, with the large installed fleet of vessels and continuous growth to meet future needs.
In addition to that, the mining industry has a clear agenda to become more sustainable and automated, for tomorrow's increasing need for minerals. Within Industry, the mining industry accounts for around half of our business. Construction, another growth segment with high ambitions to electrification and increased efficiency. General Industry, a bit everywhere from our products, can play an important role in supporting electrification, safety and automation. In summary, the segments where we have been operating in over the last 50 years are now more relevant than ever. In Cavotec, we have four areas for our strategic priorities. Ports & Maritime. In Ports & Maritime, we intend to keep and achieve a leading position for our core products, increase innovation in existing products, and develop new products and launch them in order to complete our portfolio. We have also focused on growth strategies for prioritized product groups.
Within Industry, we want to grow with a more proactive approach and innovation co-developed together with our customers. To step in early with our customers, to design something that really fits perfectly into their products in the long run is the way to go. We also strengthen our strategic partnerships, and we are focused on growth strategies for prioritized product groups. Services. In services, Cavotec will grow the offering and realize the full potential in service from our large install base of Cavotec installations worldwide. Platform for acquisitions. We have and we are now creating a platform for acquisitions that can enhance our market position, strengthen our operation capabilities, and drive innovation. Coming into a little bit of Ports & Maritime here. During the quarter, we have presented several significant contracts in Ports & Maritime that demonstrates the strength of our offering.
An order signed for the supply of MoorMaster automated vacuum mooring systems for a special application in North America, one of Ports & Maritime's largest orders ever so far, valued at approximately EUR 30 million. However, we have complex products and it takes time to deliver, so the deliveries for those are planned to take place in October 2027 to March 2028. Our MoorMaster system increased safety, speed up ship handling, reduce emissions, and help ports and marine applications to increase the capacity. With this important order, we strengthen our position as a leading supplier of automated vacuum mooring solutions in North America. We have also signed an order for shore power systems to be deployed across several ports in southern Italy, valued at approximately EUR 3 million. The system enable cruise, and container, and ro-ro ships to connect to shore power while at berth.
By enabling ships to switch off their diesel generators when in port, the system will contribute to reduce harmful emissions and improve air quality. Industry. Now we can look into some recent business wins within Industry. In the beginning of the quarter, we signed another order with Australian construction and engineering company, Civmec, for the supply of motorized cable reels and hose reels for Port Hedland in Western Australia, one of the world's largest iron ore export ports. Receiving another order from the same customer reflects the confidence that our customers have in Cavotec's technology, proven expertise in demanding industrial environments. After the end of the quarter, we also announced a significant order with a leading engineering company in India for supply of 14 motorized cable and hose reels.
The reels are part of the customer's first product for ship unloaders and will be used for unloading bulk material such as coal and limestone from vessels to shore. The order demonstrates our ability to deliver reliable, high-performance solutions for very demanding industrial applications. By this, I hand over to you, Joakim, for more commercial comments and the financial performance in the quarter.
Thank you, David, and good morning, everyone. We start with summarizing the quarter a bit on a higher level. In the first quarter of 2026, we had a very strong order intake, but lower revenue due to the weaker market in 2025. Order intake increased over 100% in the quarter to almost EUR 60 million and order backlog increased 30% year-on-year, landing on EUR 151 million. We have now had two good quarters in a row when it comes to order intake, and that's setting us up for a better continuation of 2026. Revenue decreased 15.3% to EUR 32.8 million, affected by the cautious approach among especially Ports & Maritime customers in 2025. The EBIT declined to EUR -2.8 million, where Ports & Maritime contributed negatively to this, while Industry was slightly lower than the same quarter last year.
In light of this, we have started a cost adjustment program that was initiated already in 2025 in the connection with the relocation of the headquarters from Switzerland to Sweden, and we are now increasing the speed of that program. We'll come back to that a little bit later in the presentation. Let's start then with the order intake. The order intake was up 109%, with a healthy growth in both Ports & Maritime and Industry. Ports & Maritime signed, as David said, one of the largest contracts ever with a value of approximately EUR 13 million, or equivalent to SEK 140 million. The order includes the delivery of MoorMaster automated vacuum mooring systems for special application in North America. Deliveries are planned to take place from October 2027 to March 2028.
It's also good to see that the Industry showed a positive order intake, mainly driven by the demand for motorized cable reel systems. Order backlog increased to EUR 151.1 million, 30% compared to the same period last year, and 21%, almost 22% compared to the fourth quarter of 2025. Revenue decreased to EUR 32.8 million, mainly reflecting the slower order intake in Ports & Maritime last year caused by the uncertainty in the market and following a very cautious approach by the customers in 2025. Industry had only a slight decline in revenue as the lead times are shorter, and they were also less impacted by the uncertainty in 2025. Geographically, we can see that the majority of sales in Q1 was EMEA, with 66%, and about a quarter of the sales came from Asia-Pacific, and only a smaller portion, 10%, from the Americas.
There's a slight impact from currency, minus 2.4%, during the quarter. Let us move on to EBIT. As said, as a result of the lower revenue in the quarter coming from the uncertainty last year, EBIT decreased to EUR -2.8 million and the EBIT margin decreased 10.5 percentage points to -8.6%. Ports & Maritime here contributed negatively due to the lower volumes. Industry had a positive impact on EBIT and profitability in the quarter. What we can see here is that it's been mainly January and February that pulls down the results in the quarter, and we're already back on good levels according to plan in March. Now over to the net result. Net result decreased to EUR -4 million and earnings per share decreased also, as we can see.
In light of the result 2025, we have intensified the scope of the cost adjustments we initiated already last year with the move to Sweden. The cost savings measures that we are taking now, they will be fully implemented during 2026 and will reduce our cost base by approximately EUR 3 million. Some of that effect will already come in the second half of 2026, and we will have full effect early on in 2027. The measures include, among other things, optimization of the organization structure and efficiency improvements in IT and administrative systems. The cost measures, as we said, is totaling EUR 3 million and will be taken ongoing during 2026 and reported as items affecting comparability starting in the second quarter of 2026. We move over to cash flow.
The operating cash flow and financial position were affected by the sales and profitability development in the quarter. We continue, though, to have a very strong focus throughout the organization on profitability and capital employed, and the cost savings measures are also aimed to improve both. Net debt amounted to EUR 8.8 million, unchanged compared to the end of 2025. The leverage ratio, although a bit higher than previous quarter, is still at good levels at 1.58. Let us now look quickly into the two segments' performance in the quarter. We start with the largest segment, Ports and Maritime. Order intake there increased with 243% to EUR 41.2 million, mainly driven by the good demand of shore power solutions in Europe and motorized cable reels in Asia and Europe.
Due to the strong increase in order intake, order backlog increased with almost 40% to EUR 128.6 million and up almost 24% compared to the fourth quarter 2025. Very strong development. Revenue decreased 25.7% to EUR 16.5 million, reflecting the slower order intake that we could see from last year in the beginning of 2025. Currency had a negative impact of 3.1%, and EBIT decreased to EUR -2.1 million. The margin also decreased to -12.9%. What we have to remember here, obviously, is that Ports and Maritime has a very product-driven nature, and the beginning of 2025, Ports and Maritime got impacted quite a lot by the uncertainty in the economy. Moving over to Industry. The Industry segment order intake increased with 11.7% to EUR 18.5 million.
Growth was mainly driven by a good demand for motorized cable reels in the mining industry in Northern Europe, as well as an improved service business. That said, the order backlog decreased with 6.8% to EUR 22.5 million, and revenue decreased with 1.4% to EUR 16.3 million, compared to EUR 16.6 million for the same period last year. No big impact of currency effects in the quarter. EBITDA amounted to EUR 0.8 million, compared to EUR 1.3 million last year. The margin declined slightly with 2.5 percentage points to 5%, compared to 7.5% last year. Although Q1 profitability was below last year, we believe that Industry is really improving long-term, and that the increased customer focus and customer activity will continue to deliver good results here in this segment.
We still obviously have more to be done here, in the Industry segment, but we're very pleased with the development, and we continue to see a big market potential in Industry. With that, I hand back to David for some final remarks.
Thank you, Joakim Wahlquist. Let me just quickly summarize some key points before we open up for questions here. In summary, we are targeting good, solid markets, and we have taken actions to lower our cost base with approximately EUR 3 million. In the first quarter, both of our divisions demonstrated a strong order intake and among the business wins we have announced, we have stressed the Ports and Maritime record order intake of EUR 13 million. However, our performance in the first quarter, which is normally a relatively weak quarter, when it comes to the top line and profitability, was impacted by the slow market development in mainly Ports and Maritime last year. As you know, we have long lead times, especially on our Ports and Maritime applications. We see that our markets are good, driven by the strong mega trends such as electrification, automation, and regulations.
At the same time, we lived in a world impacted by high degree of uncertainty, which might impact our customers' decision also in 2026. In light of the continued uncertainty and the fact that we have largely product-driven business with long lead times, it takes a long time to build our equipment between order and final delivery. We have taken measures to reduce our cost base to shape a stronger Cavotec, and we will be better equipped to create value as volume increases. With this, I would like to open up for questions. You can ask questions through the telephone conference or sending us questions online.
If you wish to ask a question, please dial #5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial #6 on your telephone keypad. The next question comes from Albin Barnevik from ABG Sundal Collier. Please go ahead.
Good morning. This is Albin at ABG. If we start off with the soft margins within Ports & Maritime, you mentioned that this is due to the lower volumes in the quarter and low capacity utilization, I assume. What fixed costs here can you adjust going forward? Because, as I understand it, the cost-savings program is mostly OpEx. Is that correct?
Yes, that is correct. The cost-saving program is mostly operating expenses. Having said that, we have shown a pretty good volume flexibility in cost of goods sold also, and we have improved that over the last couple of years.
We're continuously working with the flexibility in our production to maneuver lower volumes whenever that would happen. On top of that, obviously, we have a quite well-established cost-out program, where we are working with all our products, including the Ports and Maritime product. We continue to strengthen the margins.
All right. Yeah. Given the strong order intake within Ports & Maritime, how should we think about the path to margin recovery here if we look at the coming quarters?
First of all, obviously, you can't push forward your replacement need too long either. There's been a bit of hesitation in the market last year, obviously, but there is a replacement need, and there is a very active market within Ports and Maritime. It's good to see that the customers are now starting to take decisions, both in Q4 last year, but also in Q1 now. Good to see that the market is taking off again.
Yeah. If we perhaps move over into the margins within Industry, then we saw quite a contraction here as well on a sequential basis, because there has been a strong development in Q3 and Q4 2025 within Industry. Now declining. Are there mixed effects behind this, or how should we understand it?
Yeah. Partly mixed effect, and then obviously the Industry segment is also volume-dependent. We have an installed capacity that can handle bigger volumes, and Q1 is quite a low quarter, usually is a low quarter also for Cavotec.
All right. Yeah. On the large North American MoorMaster order that you received at the end of Q1 now, and the Italian one as well for that matter, have you started to see an inflection point now in demand picking up within P&M?
I would say so, yes. As Joakim mentioned, it was uncertainty in 2025. Everyone can understand the uncertainty when tariffs are fluctuating more or less on a daily basis, making it a little bit difficult for our customers to decide if they're going to invest in a certain port or another port. However, I think we need to understand it's going to be and it's going to remain a little bit of uncertainty happening over the next year or so. At the same time, when you're changing flow of goods over the world globally, then of course there are certain areas where there are a little more uncertainty, but there are other areas where the goods need to come in different directions.
I think we see a solid demand and an increasing activity on upgrading certain ports, expanding certain ports, and that's what we now see the effect of.
Right. Can you perhaps specify a little bit regarding the special application that you mentioned in the press release for the North American order, that is?
Yes. It's an inland project in the U.S., if you are sailing vessels from one lake to another big lake, you need to transport the ships in systems, and our applications is for those systems. Yes.
All right, thank you. Yeah, regarding the shore power order to the port in Southern Italy, what is the approximate timeline here of delivering those systems?
I would say, and this is important to understand, that between Industry and Ports, we have different lead times. When I say lead times, it's not lead times of ordering material, really. It's a matter of it takes time to actually build the products. Within Industry, we have certain products which are complex, like we just mentioned, the orders to Australia with Civmec, et cetera. That's also a little bit of a long lead time item. At the same time, there, we also have what we call the flow business, which is our goods that we deliver to our customers, Epiroc and Sandvik, for instance, where there is more of a serial flow of the production. When it comes to Ports & Maritime, it's the nature of the business is that it takes longer time to actually build those products.
It's complex machines, in many cases customized for various applications and requirements. At the same time, if you talk about the MoorMaster installation, for instance, with 20 or so MoorMaster vacuum units, the customer, of course, don't want to have it delivered one by one. They want to have it delivered in batches, and that also then increases and extends the lead time. There is a little bit of different natures of those two business areas.
Yes. I understand. On the order for motorized cable and hose reels in India, you describe it as the customer's first project for ship unloaders. Is there a reason to believe that there are more incoming orders from this particular customer? Also perhaps if we can get a ballpark figure of the value of deals like this?
Just, yeah, between them
I would love to give you a figure, but at the same time, we have some agreements with our customer, in this case, that we're not disclosing certain values there. You're definitely right. If we have a new customer, and of course, we are optimistic that that's going to lead to more business, because we all know that the bulk handling and the shipping of goods over the world is just increasing. Yes, for sure, we are expecting more things with the same customer.
Yes. All right.
I think it's good.
Sorry.
Can I add to David's note there that we are seeing very good activity in the Indian market also. Yeah.
Mm.
Where we have now established production and expanded our sales efforts. We expect that to continue to grow.
All right. Thank you. Just a final one, if I may. On the cost-saving measures then.
Mm-hmm
Is it possible to quantify the one-off arising now in Q1 following this restructuring or?
Yeah. The restructuring, the implementation cost for the program will be EUR 3 million.
Yeah. Okay.
The equivalent of the yearly savings. Yes. That will be-
All right. Yeah. Okay.
Taken during the next three quarters.
I see. Great. Thank you. That was it for me.
Thank you.
As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad.
Okay.
There are no more questions at this time, so I hand the conference back to the speakers for any written questions and closing comments.
Okay. We have a number of questions in our chat here. Let's start with the first one. The order backlog grew strongly. What are the lead times in the order book, and when will the order book be delivered? I think David took part of that question already. He answered to Albin here. It depends quite a bit, depending on the type of orders and within the different segments. In the Industry segment, we have usually between 3-6 months if it's not bigger projects. In the Ports and Maritime segment, we have a little bit longer lead times with up to 1.5 years. Okay. Do you have any upcoming product launches in the pipeline to get excited about?
Yes, we have. I'm pleased to see that we have really increased our efforts on product development over the last couple of years. Therefore, we are launching. I think we launched the all-time high number of products last year, and we're going to continue in the same pattern to launch new products also for the coming quarters here. Worth mentioning as well is that when we have launched, which we already presented, we present our new radio design for next generation radio, which has been very well received by the market. We have a lot of orders for that. However, you should know that when we are delivering an order for radio equipment to a customer, they want to have a couple of prototypes, units first so that they can test it before they go into serial delivery.
Therefore, it takes time to launch new products before we actually see them in the market. As soon as the customer is pleased and satisfied, then all of a sudden the flow business ramps up in the serial delivery. Keep your eyes open. We will have new products to be launched, within the quarters to come, also 2026.
Next question here is, many mining companies has had good growth. What is your exposure to mining?
I think you mentioned that roughly before, half of the Industry is mining, and Industry is roughly 40%, so 20%, you could say. We have a very tight relationship together with the mining OEMs where they're producing. We are on board developing our equipment to fit into their machines of tomorrow. At the same time, we also then produce and sell and deliver based on their order intake forecast and their predictions there, which is again, of course, the way you should work, the tighter we are working with them in order to optimize our designs, it fits into their customers' needs. We have created and shown it many times. We will create this win-win-win, that everyone wants to have, win for the end customer, win for our customer, and win for us.
That is only achievable when we are opening up and sitting close with our engineers and their engineers to solve a specific technical issue or concern or problem.
Okay. Let's see. We have one more question here. Can you comment more on the Industry segment and what you expect from the changes and improvements that you are making?
I can say I'm really pleased. If you look back now, a few years for you who have been around, we had the segment was called Airport and Industry. We sold off the airport business, which was the right thing to do differently. What we then discovered is that we had the mining industry, which got better visibility and better attention. What we have done since then, we have headed up with new management on the Industry side. We have also hired and also increased our activity on the sales network with sales activities. I must admit, I'm impressed where we are going in and interacting with customers. There is a strong need for our products. The more you work together with a customer, the more they open up for similar or surrounding applications or problems, which our product can help them to solve.
We are working on solutions with our Motorized Reels. We have also other applications there for everything when you want to twist a cable into applications, such as production lines or whatever, when you need to have a cable turning more than several turns, then there are different solutions there, which we are actively working on. Not to mention as well, of course, again, the radio business, where we see a clear and a strong activity and momentum and interest for our products. I must say, I'm really pleased with the development we've seen, and I'm also pleased with what I see in the pipeline and the activity that we have also for the Industry segment going forward.
Okay, one last question here. What do you expect from the continued development in 2026 and the results? I think we have a number of good things in pipeline here. We have had two good quarters of order intake. We can also see now that after a little bit weaker January and February, we're really up to plan in March. We have a good order book in hand. We have the cost savings program that we're implementing, and we're going to see effect of already here in 2026. It's good activity in the market, like David said here also, and obviously also the customers cannot postpone the replacement needs forever either. Both David and I believe here looking quite positive on the remaining quarters of 2026, and we still believe in the plan that we have for 2026.
Yeah, I think we have the right setup. We have the right momentum in the organization. We have the right interaction and context to our customers, and we also then have, due to the fact that we have developed new products, we have the right offering to our customers, which is important. Yes, quarter one usually is a weaker quarter for us. At the same time, I'm confident for the outlook and for the 2026 going forward, definitely. I think we are well positioned for a good 2026.
Okay, I think that was all the questions we had today. If there was no other questions, then we thank you for your participation and