Welcome to this presentation of the financial report for GomSpace of the Q3 results. I am Tue Østergaard. I will be the moderator today, and with me today, I have Carsten Drachmann, the CEO. We will spend approximately 20 minutes going through the Q3 and also the very interesting and important 2030 ambitions that you have today, Carsten. We are looking very much forward to that. Following that, we will have a Q&A, and you are very welcome to put any questions you may have on the chat below. I have seen some of you have been here before, so you know the concept. We will start with a brief presentation of 20 minutes, Carsten, and I will go out of the picture so that you are left alone. Welcome, everybody.
Thank you. Thank you, Tue, and welcome to you joining GomSpace here. So much appreciated. Yeah, financial report Q3. Let's get it started. I am going to give you an overview of our Q3 results, talking through that, and then I will share with you our 2030 ambitions, and I will also answer a number of questions along the way that I have seen you have online. First of all, the highlights of Q3. We grew quarter-on-quarter compared to last year 17%. It is a little bit below perhaps of what we wanted to have, but still quite an okay result in my book. EBITDA is good, quite a growth on EBITDA, and we are keeping up with the profitable growth, which has been important for us and what we have been striving for since the last three and a half years.
We have delivered a positive EBITDA now for several consecutive quarters. This is a 14% margin. It is actually pretty good also if you look at the industry, which is majority still not making any money. At least we are. Cash flow negative, free cash flow negative, -SEK 40 million. This is also as we had expected. We are investing into R&D activities. We are investing into launching our own satellites. We have also ramped up on the inventory. Actually, the inventory has gone up quite a lot, about SEK 30 million in the past, I would say, four or five months. This is also due to higher demand that we see, especially around our kit sales. We see that the demand is increasing, and in order to accommodate those questions or requests, which are often very time-dependent, saying you need to deliver fast, we have decided to increase.
Our inventory level has also gone up a lot, which is impacting this. We have about SEK 130 million in the bank at the end of September. Net profit is also positive for the quarter. That is good that that is adding to our equity. If you just summarize it on year-to-date level, 25% growth. This is within a reasonable growth rate. We have about SEK 44 million in EBITDA, so 12% roughly. This is also quite good. It is in the upper end of our guidance as it is right now. Negative cash flow, I just explained that, yes, we are investing in more in R&D. We are gearing up. We are also ramping up on more salespeople, and we are building inventory for faster response.
It is very clear that the demand in the market right now is: We like what you have. We want to have it, but we want to have it fast. You don't have two years to deliver it. If you can deliver on Friday, that would be great. We see that more and more. It's also costing some cash initially to accommodate that. For the year-to-date, three quarters, also positive net profit of about SEK 40 million. Let's dive into the business units here. Here you can see the revenue, so fairly slight growth on the orange lines, which is last 12 months trailing. You will also, by the way, see more of that going into the future.
We'll talk more about the 12 months trailing because the variation between quarters, there will be. It's not reflecting any kind of change in performance in the business, so we want to average it out a bit. Where is the money coming from? Is the revenue coming from Products? This is gross revenue, is by far the high runner now. This is also where we have good profits. You'll see that.
Satellite Systems has been a bit slower in this quarter. National & Defense Solutions, first time on the screen here, was zero last time, last quarter. So this is stepping upwards. North America is also starting to deliver higher revenue, so that's good. If you look at it from an EBITDA perspective here, you see a nice increase. Bit by bit, we are improving our profitability. That's exactly what we want to do. If you look at the distribution, it is Products that by far are delivering the majority of the profit here. Remember also the way that we've done it, we have this internal trading.
We think it's fair that the Products is the foundation of everything that we are doing. They are delivering to Satellite Systems, who in turn are delivering to National & Defense Solutions, et cetera. Therefore, we have an internal trading. So, Products is really important for us and generating a lot of our profit here. Satellite Systems is more reflective of, with the current level, this is roughly, we are competitive in the market. This is roughly what we can make, which means we need to get the volume up, then we will also see the increase in EBITDA here for that business unit. National & Defense Solutions, that would be higher margin. Advanced Missions would also hit slightly higher margins here. That's our expectation. But just want to repeat the dynamics in terms of the contribution margin. Products, good margin.
Customer see, customer like, produce, ship, collect cash, or maybe collect some cash first. It's also a good idea, which we are doing. But the margins are more healthy. It's more transactional business. Satellite Systems are, there's a lot more competition here. We are very competitive, we have a very strong structure, but it allows us to get a certain contribution out of that lower than for Products. But National & Defense Solutions is much more value-based selling. We're not selling satellites, we are selling solutions to a problem, solutions to a challenge that the defense or government might have. So this is not based on a very small revenue. That revenue should be much, much bigger in the coming years, and we will also see higher margin levels here coming from this business. Order intake. We have three orders I wanted to highlight here.
One new order that we are excited about, a new customer from EMEA. This is actually Advanced Missions, sorry, we should say Satellite Systems. This is getting a new customer on board. This is really important. We have a very high repeat customer. Customers are coming back. That is good for creating our foundation. Every time we add a customer, it is another customer that can come back and order more later. This is good. U.S. based customer for Satellite Kits, very good, SEK 23 million. That was a good deal. It is actually the biggest deal in North America in a quarter so far. Very, very good. Also we have for our Advanced Missions, the asteroid mission with RAMSES. This is a distribution of the order intake. We are ending up around SEK 400 million in external order backlog in total.
The SEK 500 million is a gross order backlog where we are trading internally as well. It dropped a little bit in the quarter here. It will vary quarter by quarter. It was much better than the previous quarter, but over time, of course, it needs to go up. You will see the changes, you will see it going up once we start closing bigger orders. The bigger orders take time always, and I know I have said it before, but they just do. It is just a fact of life. It does not mean there is no business, it does not mean there is no market. It just means that the larger deals take more time. When they happen, it is great.
You will have a completely different jump here. Our goal is to continuously renew. Every time we recognize revenue, we want to have at least the same or more in order intake. Then we have a steady business, and then step by step, we get the bigger deals that is going to push us to a different level. That is the dynamic of what we do here.
Let us take a step. Let us look a bit more into the future. I have not set any goals for the future before, so this is the first time we do it. Why do I do that? First of all, I think this is something that we can do, and I wanted to show you a little bit about investment in the future of space. I have shown this before. I want to repeat it. Repetition is important. There is absolutely a growth here coming out. Space is now frontline defense domain. That is undisputable. Space is part of defense. Investments are going into defense for very unfortunate reasons in the world, but it just is.
We are right in the middle of that. We are one of the oldest companies in this new space industry, and we are recognized. We are there. We have a brand also in Denmark, also in Ukraine, also in the U.S., also in Korea, also in Indonesia, also in Germany, w e are everywhere. We are recognized because we have been around for a long time, which means there is a big opportunity for us out there that we are now catering for. Governments are shifting from services to sovereign assets, all driven by Starlink slowing down speed in Ukraine. You can not really trust the behavior of Americans are driving a lot of this.
Basically, every government say, well, we have to be able to do something ourself. We simply cannot rely on that there is a few people or companies or nations that provide everything from space, because space is absolutely critically important. Therefore, we need to own it ourself. We see constant demands on that. Maybe some of you have maybe seen that Poland announced that they are going to build their own sovereign SATCOM network. Germany is going to. Everybody wants to build their own. Good for us, good for GomSpace, good for investors in GomSpace. End-to-end solutions is a key. It is not just about selling satellites, it is about selling solutions to problems. This is what people want. Many governments are not experts in satellites.
They cannot tell us what the satellite should look like or what it should be able to do, but they understand our dear customer in Indonesia that we are still working with, I will get to that. They need to protect their fishing industry. They need to catch those Chinese trawlers, but they do not know how to specify satellite. It is okay. That is our job. That is what we do. This is our National & Defense Solutions catering here.
We will see more multi-year constellations. By multi-year constellations, it means the amount of satellites that are required to create a coverage is going to go up. You can have one camera satellite taking pictures, that is okay. But if you want to have a reliable communication network, it is not going to happen with two or five satellites. It would be more. If you want to have a traffic management system monitoring airplanes on a continuous basis, you cannot do it with 50 satellites. You need actually 288 satellites to be precise in order to have a coverage. This is what we see as well. We are getting ready for that. Deep space and lunar missions are there.
It is evolving. We see also that our product revenue will grow. As long as the market grow, Products will grow because we are selling into everybody in the market, including our competitors. Volume scalability will become a competitive advantage. I know there are questions of, I say we are investing. We will get back to that in a second. We will also look at complementing the capital that we generate from our ongoing business. Our working capital needs to go up because you also have to be able to scale. You cannot win large business here without also showing that you can deliver. I will get back to what it is that is required. Roll-up and consolidation will happen in market, that is for sure. GomSpace is absolutely intending to roll up others and consolidate it into GomSpace over time. All right. What have we said?
Capturing the momentum and outperforming the market. This is a financial goal that we have set ourselves for 2030. Let us take the first one, CAGR, compound average growth, so 30% average growth over time. That means some years where it could be higher, some years could be lower. In average, over the time until the end of 2030, it is 30%. To compare to the market, the market is growing around 14%, a little bit more than 14%, according to Extrapolate. This is where we are leaning against. If we did nothing but just doing an average job, we should grow 14% year- on- year. We, by the way, grown a lot more. We have grown 42% the past couple of years. That is an ambition. That translate into, you can do the math, to around SEK 1.6 billion in revenue in 2030.
That is absolutely the goal that we are setting for ourself. We are also saying that over time, towards 2030, we believe that we can do 20% EBITDA or more. Then I think we have a pretty decent business looking at that. It won't be a 20% EBITDA from the beginning. The whole point of this is also, it is a growth story. Growth also take time. We are hiring more sales people, we are hiring more business development people, we are investing. So it will eat a bit of the margin over time in the first years. That's absolutely what I expect. It is intentional to do that. It would be stupid of me not to do it, because we have to capture this growth to get to those levels. Now, transformation. So why am I doing this now?
Past three years, we have created a strong operating model with our business units. We have shown that we understand how to run a business. We have trained ourself to have the dynamic between Products, Satellite Systems, and then our go-to-market models with solutions. We have doubled the revenue rolling 12 months. If you count from Q3 2024 to Q3 2026, so two periods of rolling months, we have gone up about 42%. That is not necessarily a prediction of the future, obviously. I just wanted to show that the track that we are setting is fair enough. If you've been able to outperform the market the last two years, it's reasonable to believe we can continue to do that. We ended up at an EBITDA margin above 20% at the end of the period. You just saw 14% in Q3. So this is the premises.
This is a transformation that we have been working on, I've been working on. We are ready to go and rock and roll and do more than this, and we have the engine to do it, and that is an absolute key. Okay, so key assumptions for this. Looking at the business units. The business units is one of the core growth engines. Industrial scale, we need to be able to do more and more and more. It will be repeat business. We have a 95% repeat business in Products. Everybody's coming back. We can expand it to more regions, which we are working on. Our Satellite Systems, our ability to build satellites, repeat business also, core growth. As I said earlier, we had a new customer. It was SEK 42 million. It's an okay contract. Obviously, if you want to be bigger, it's not big enough.
But it's a new customer. We're building a relationship. They don't buy just one or two satellites just for fun and then they disappear. They, of course, has a business plan. So this is really important for us, and we see all the little deals, especially where we have new customers, are key. This is our constellation execution engine. This is where we, when the customers are coming and saying, can you build several in tens or hundreds of satellites? Is GomSpace able to do that? Yes, for the CubeSats, absolutely, and this is our engine. Advanced Missions, future growth opportunities, this is where we are looking forward. We're not really investing here. I want to highlight also here, it's not just about throwing even more money after R&D.
Actually, here we are very strategically, tactically going into different future solutions, be it lunar missions, be it Space Domain Awareness, be it Very Low Earth Orbit. We are tapping into programs, so we have funded R&D in missions. We still want to make a little money on it, but it is funded R&D. This is future growth. This is where, in a couple of years, we will see, hey, there is a new trend here, and we are in on that trend. Advanced Missions is our innovation and capability engine. Last but not least, National & Defense Solutions. I already said that this is our new growth pillar.
It does not make any sense talking about percentages since it started from zero intentionally, but this is really where we tap into these high-value sovereign programs. We are delivering a full solution. We are not just delivering a piece of technology. These are our assumptions for the growth. It is not just dependent on what business unit doing everything. It is actually fairly equally spread here, though with a notion that the National & Defense Solutions would generate the bigger order intake.
Markets. North America, which is also business units, we do a P&L, as you know here. Whatever we do in North America is on top of the previous two business units, to be clear. North America, increased market traction upside. We have been working on it for some years. We start seeing a bit more traction. You saw the larger deal I showed, SEK 23 million. Good. Hopefully there will be more of that. That is absolutely what we are looking at, what we are seeing. Latin America is also starting to emerge here. We have a salesperson, a BD person in Latin America also now. We see sovereign investments.
We see the same pattern as in Southeast Asia. Also what I see in the Middle East. There is not a strong space industry anywhere, but everybody needs space, and they are looking for partners, and they are okay to look outside their own countries, and this is our option, and we have a good name in Latin America. Sales regions from EMEA and APAC. Remember, these are sales engines. They are generating the revenue and profit that is going into the other business units. EMEA, basically leveraging the European defense scale-up. Ukraine is concrete right now, also Denmark is there. All the money going in here. EMEA is also Middle East and Africa. We definitely see opportunities in the Middle East. We are now having from the beginning, and next year we will have a business development person also in Riyadh, in Saudi Arabia.
Why do we do that? Because these markets are about presence. You need to be there in order to build and capture the business. Excuse me. We are investing in this as well. There is no huge success without investment in terms of sales and business development. The market is there, the business is there, the money is there, but we need to aggregate it, and that is what we do. APAC, a lot about sovereign investments as well. To grow, this I have announced earlier, we now have, very pleased to announce that we have Anand Gulati, who is based in Singapore, who is going to work our Asia-Pacific region. Anand comes with a strong background, previously worked for Rheinmetall and from other larger defense companies. Very well-known in the region.
He travels from north to south in Asia, knows people in Korea, Japan, and is already building networks into the right people for our business here. Then we have Benjamin Hamel, French-Canadian living in Spain. Also, a background in space. Very strong salesperson with a network all over Europe for us to build more. I am very, very pleased we have these two quite senior people in to help us drive the business. Remember the four business units, repeat. Products, this is our industrial scale engine. Satellite Systems, constellation execution engine. National & Defense Solutions, sovereign value engine. Advanced Missions, this is our innovation and capability engine. Because the U.S. is the biggest market, we are also tracking that as a business unit. We have updated our outlook for 2026.
The revenue, we have said, we are probably going to be in a little bit of the lower end of the original outlook. Why is that, Carsten? There are orders that have shifted, and you have noticed it also. It is already there. You can just read the numbers. A little bit more than what we had anticipated. This is the dynamic of the business. It is very, very hard to control. We still believe those orders, none of them have sort of disappeared. They just seem to take longer. So, it has a slight impact on the full year revenue here. If you are looking at the EBITDA margin, we are pushing it up in the top end of our guidance, 10%-12%. Very pleased with that. This is a result of our ongoing execution and focus on how do we make money.
It really starts all the way from how to optimize our technology, how are we making the proposals, are we sure we are taking the deals where we can make money, do we have done a proper risk assessment of each project? Some of you will remember back, some three, four, five years back, there was very difficult. We had a lot of programs that were not making money. I canceled many of them when I came in in 2023. We took about SEK 250 million out of the backlog because I just couldn't see how we could make money on it. So, now we are getting to a level where, in average, everything we charge has an acceptable margin, and we execute well, and this is giving this result, which I think, guys, is a great result. Negative cash flow unchanged. We talked about that before.
A few selected topics here. Thank you again, everybody, for the questions you are sending in. I also appreciate some of you send it well in advance. It gives me a little chance to look at it. Let's see what I can answer here. Let's take Ukraine first. Yes, there has been a name change to OBRIA. It is the same program as before. The comment I would say is that we keep working on strengthening our position. It is a very dynamic market. Things are happening week to week. So, we have chosen to take a slightly different path with another partner, HIMERA. You have seen that. We have changed the name to OBRIA. You should look upon this as we are constantly understanding and working. We have a man in Kyiv right now. I just spoke with him this morning.
We are constantly adapting to the situation there, so we are sure that we will be, in the end, the ones being able to deliver this solution. Indonesia, I might use the statement with a smile, no news is good news. If it is off the table, I will tell you. When it is on the table, I will tell you. It is still ongoing. I am in weekly contact. This is purely a political process, has nothing to do with our technology. It is simply a political process that we are running through. But we have strong people, a strong partner on the ground every day working with us. There are questions about defense orders and pipeline. I am not commenting on pipeline per se, but I would draw your attention towards why am I doing this 2030 financial goals and saying an average of 30% growth.
I do not do that if I did not think there was anything in our pipeline that could enable that growth and that ambition. So, of course, it is there. There was also a very direct question saying, can you tell us when we can expect orders to come in? I wish I could. If it was that easy, you can all come and run the company. It is not that easy. The trick is to constantly work on all of those opportunities that we have and bring them to closure. Sometimes you just do not control that, especially when it is bigger orders. The smaller orders are actually a lot easier. They are more predictable. So, interpret my words here as I have set an ambitious for 2030, SEK 1.6 billion. I am not doing that based on nothing. I think you can assume that.
Receivable from a large customer, I am not allowed to swear online, but yeah, this is annoying. It is still here. We are managing it. I am talking every week with the customer. We have a great relationship. They are working on raising capital. I know everything that they are doing, and then they are doing a lot. So, I am not worried about that part of it. Of course, it is dragging out now. We have received a little money, but nowhere near enough what we wanted to. But at the same time, we have these reuse cases. We have reduced the receivable exposure with about 20% from end of last year up until now. So, we are constantly chipping away by saying, well, we control all the technology. Everything is in our warehouse. So, we are starting to sell the bits and pieces elsewhere to reduce our exposure.
I am not going to tell you this is a great story. It is not, but I am telling you, we are managing it, and this is not an outcome of a huge conflict and a courtroom. Not at all. On the contrary, we have a very good relationship, and I have all the assurances I need that eventually we will get paid once they get the capital. There was a question also in terms of what happened to those shares that we have as It is not really collateral, but we have a right to shares. They are still there, but because of the companies waiting to raise capital, we have decided not to post the full value of the shares. So, we have posted a significantly lower value just to be fair, not to have a weird, huge number.
But we still have those shares, and when that customer gets success in raising, as I have told you, a significant amount of capital, you will see that showing up. But they are still there. Market dynamics in general, things are going fast. Things are going fast in Europe. Things are changing quickly in Asia. Also, things are changing around Starlink, new messages all the time, and it also impacts the share price. I do not want to comment on the share price, but it is a very, very dynamic market as we here have it right now. Okay, coming to an end. So, a summary. Q3 numbers, it is still growth and profitability. Good.
National & Defense Solutions order intake is actually from Ukraine. Small order, initial order here, so that is good. North America with the largest order intake quarter to date. New sales executives in place for EMEA and APAC. I am personally very, very happy about that. This is a big help for us.
We have narrowed the outlook for revenue and EBITDA for 2026, and the financial goals for 2030 have been set. CAGR 30%. Some years will be higher, some will be lower, some quarters will swing a bit. The average growth is 30% that we are aiming. This is about double of the market. It will result in SEK 1.6 billion by 2030, and we believe that we are going to generate a very, very healthy business at that time with 20%+ EBITDA. That is what I have for you today. I have one last slide, though, is that stay up to date. We are introducing a new investor newsletter. You can go in already now and sign up online. It will be published four times a year.
We try to time it in between quarterly reports to get more information out to you. It will summarize relevant communication, press releases that have been, but also across platforms, because I know actually our digital presence is really, really big. We have had a great success with our LinkedIn and all the posts, and we are growing every day, having a lot of followers. But I also appreciate my LinkedIn scrolling is so full, I just cannot follow everything. It is really, really difficult. So, what we do, this is also a service to you, that we are going to summarize what we have put out over a three-month period. We put it in here in condensed version, so it is easy for you to read, and we will repeat the latest quarterly results, et cetera, so you can follow. So, hope you will appreciate that.
I encourage you, go in and sign up to help yourself have a better insight into GomSpace, the great company, GomSpace. With that, thank you very much, and back to Tue.
Thank you very much, Carsten, and you have been through a lot of the questions. I am afraid there is a little bit of echo, but we will have to live with that for a second. But Carsten, we have divided the Q&A session into three things: the 2030 plan, some geographies, which you have addressed, and then there will be some other questions. But let us start off with the 2030, and if you have any questions related to that, please put them in the chat. But I will start. So, you have decided to go out right now with these ambitions that are, I must say, very ambitious. So, is there anything that made you feel really comfortable with executing this plan that you can relate to?
Yes. After having now established over the last three years, as I said, those business units, and we start to understand the dynamic, we have the last 12 months done quite a lot of strategy work, really understanding what are the dynamics, what can we do with Products, what can we do with Satellite Systems, how does it work with solutions. So, it is really based on that for each business unit, we have built this up, and then looking at a 15% or 14% average growth for the market, and we are saying, but we are still at a size that we should be able to grow more than that. That is statement number one. Statement number two, we have identified how to grow. So yes, they are ambitious. At the same time, I think you should be.
There are not that many markets right now that you can invest into that has this kind of growth and this kind of attention. You have to admit that when you are looking at it. It is all over the news every single day. There is not one day you do not open the news and hear the words Starlink and slowdown and problems. That is our cue for success.
Yeah. Carsten, I think we will take a small break. I hope for your understanding, we will just take a break to cancel this echo. So, we will be back in a second, I am afraid. Sorry for that.