Welcome to LumenRadio's presentation of the second quarter 2026. My name is Sanna Svensson, and with me, I have our CEO, Hans Larsson.
Hello, Sanna.
We start with agenda and the introduction to LumenRadio for those of you who haven't heard so much of us. Then quarter two update, and we end with short-term outlook. No Q&As in this time.
Welcome to LumenRadio. What we do, what we deliver is ultra-reliable wireless connectivity with superior range for applications where communication failure is not an option. We have recently, at our Capital Markets Day, presented new financial goals. Our ambition is to have revenues above SEK 500 million by 2030, and we want to deliver this with a good profitability of more than 20% EBITDA over a business cycle. Sanna, how are we actually doing?
On this slide, we have tried to gather information that, in short, tells quite much about how we are doing. All the figures are last 12 months figures to give you annual feeling. Our revenue at this point of time, the last 12 months, is a little bit above a SEK 250 million , and our CAGR is around 25% the last five years. 70% of our revenues comes from something we call recurring-like revenues from design wins. A design win is when a customer decides to use LumenRadio's tech in its own products.
When it goes well for our customer, it requires continuous purchase of radio modules from us with our software. Currently, we show a very strong gross margin over 65% the last 12 months and an EBITDA around 18%. This year, we are growing adult 18 years since we were established as a company. We are located in five different countries with own sales offices, and we employ around 73 employees.
We have organized our business in two business area. The first one we call lighting control, and the biggest portion of lighting control for us is entertainment lighting. This is film, TV, stage, and performance. We are also active in architectural lighting, outdoor lighting, and indoor lighting. All of this we call lighting control. The other business area is called building automation, and here the biggest chunk of business is smart metering, which came into the company a couple of years ago with the acquisition of Radiocrafts in Norway. We also have wireless solutions for building control going into HVAC, so heating, ventilation, air conditioning, and we have some industrial automation. All of this packaged in the business area building automation.
We always try to show also a, let's say, a use case in every quarterly presentation, and this is a nice place called Smögen on the west coast of Sweden. A small fishing village, but today, I think a tourist magnet where it is extremely nice to go in the summer. In this coastal town, they have recently upgraded from old-type street lamps to current modern LED luminaires from a company called Polarlamp. These are, in a coastal town like this, the environment is very harsh. These are special luminaires for harsh environments with built-in wireless control from LumenRadio. Around 100 street lamps were upgraded and deployed. Through the LumenRadio app, you can set various scenarios how these lamps should work, not to disturb the public, it is a crowded place, but also to give safety and a nice ambient environment.
The big upside when you replace old luminaires and add, let's say, a good control, is also the energy saving. Here the energy consumption was reduced 72%. This is a bit of a typical project where our product, AirGlow, or our technology goes in. From that, let's move into what happened during quarter two for us. We'll start with the lighting control, some key takeaways. The net sales for lighting control amounts to SEK 42.1 million, and that's up 20.4% compared to the same quarter last year. Organically, it's actually 21.2%. This is a very nice increase. For those of you who remember last spring, you might remember that it was a pretty volatile spring where we had big effects from the trade war between China and the U.S.
Last spring, we had a good Q1, a little bit weaker Q2, pending the tariff situation. I think we should also look at the year-to-date figure, where we are 6.2% up organically, which is very much in line with our expectations. What is then driving this growth? As we all know, we are quite exposed to film and TV. Film and TV is not super strong in Hollywood yet, but we have pursued the Chinese market quite aggressively the last year. We have our own staff in China, and we are working with Chinese OEMs in the entertainment lighting segment. We have more and more design wins there, and that is then fueling our growth a bit when other markets are maybe a little bit weaker. All in all, we're quite happy with that.
Within lighting control, we also have our newer business with both the AirGlow, as we saw the example, and our wireless DALI for indoor and outdoor applications. That part has been a little bit weaker in Q2 compared to normally, and this is very much of a project business, so we just closed a little bit less amount of projects in Q2. But there is good activity, and we think we have a good fall ahead of us. If we move from lighting control to building automation, here the revenues amount to SEK 20.2 million, which is pretty much on par with the same period last year. We show an organic growth of 1.7%. This quarter has been quite heavily affected by this product mix change, which we have talked about earlier. We actually have a negative effect on the top line of about SEK 7 million.
Despite that, we have been able to catch up with the other business and be on par with the revenues from Q2 last year. This is something we're quite happy with. The other positive effect with this change, where we go from making, let's say, a very custom product with a low margin to more of a standard product, is a fantastically nice development on our gross margins from 36.8% to 63.9% in the quarter. We are quite happy with that. What is then contributing to this nice growth? Because year- to- date, we are up 28.4%. This is, of course, partly our smart metering business. You all know that we had a little bit weak spring last year, but then we finished last year very strong, taking our biggest order ever of $5.7 million .
We have started delivering on that order now in Q2, so we have quite a strong spring in the smart metering side. Also, within building control, we have good growth, especially driven by our wireless BACnet sales in North America. Those were a little bit of the soft things, but how does it look if we dive into the figures a bit more, Sanna?
Yes. Thank you, Hans. Here is a financial overview, and on the right side, we have two diagrams. We have colored all second quarters to increase the comparability between the years. In the upper diagram, you see the net sales in value the last two years per quarter. We see that quarter two has developed from last year's 55 to 62 this year. The lower diagram shows our EBITDA in value and percentage, the same period. Here we see that we have developed from the SEK 0.2 million last year to SEK 13.2 million this year, which is obviously a very good development. The table on the left side gives you some P&L figures, and if you compared the figures with last year, same quarter, all figures have improved, actually.
It is both the net sales, EBITDA, but also EBIT and net profit and earnings per share after dilution. Obviously, the cash flow also has grown in this quarter, and we have a very strong cash in bank, and we also have a very good balance sheet. If we move on to next slide, we see how lighting control, the one of our business areas, has developed in sales and gross margin three years back in time per quarter. Also here we have different colors to use the comparison. The business area is back to normal, one can say, after strikes and tariff turbulences, and the gross margin is really strong throughout the period, and we believe this shows that our customers are willing to pay for a quality product. Moving on to building automation.
It is the same, the last three years' development, and we can see here that smart metering is back in business compared to previous. We have to also realize that the last year's dark green has something in it, a customer that we do not have any more buying this equal product. As we have mentioned in our interim report, it was SEK 7 million last year in the same quarter. Actually, last year's comparable figure would had been only SEK 13 million compared to this year's SEK 20 million. Strong momentum and gross margin is trending upwards, making a better total margin on the group level when the share of building automation in the group wallet rises. On this slide, we put all together, so we can see both net sales in total and divided per business area.
Lighting control in light green and building automation in darker green, and top of the group gross margin. The volatility in margin mirrors the share of wallet and has always been stronger when lighting control has dominated. Moving onwards, we believe the volatility will shrink as the difference in the margin between our business areas will diminish. Finally, about the OpEx. Over time, our operational expenses are quite stable, still growing a bit, and we will continue to invest in our organization's development to secure future business opportunities. At the same time, we aim to keep the pace on the level that we can also deliver on our profitability target over time. I hand over to Hans Larsson so he can summarize also with the short-term outlook.
Thank you, Sanna . Let's wrap this presentation up with a bit of a short-term outlook. We often get questions on how we are affected by the turbulence in the world around us, and we are not especially exposed to Middle East as a market. We must say that so far we have not seen a lot of effects on our business when it comes to freight prices and other things. We are quite good in that aspect, so to say. This first half year has been business as usual for us, I think, and with a good growth. If we look then a little bit forward, we think we have good traction in the lighting control market. The markets are not super strong.
There is still a little bit of weakness, especially in the U.S., in Hollywood, but we have managed to compensate that with other geographies. We have invested in our organization, both in Europe and in China, which can then compensate a little bit for the weaker market in North America. When it comes to our newer initiatives with AirGlow and Wireless DALI, we have a strong interest in trade shows. We are doing regularly new projects, new installation. We learn and we build awareness. Still small numbers in the total, but promising for the future. In building automation, especially smart metering is back on track after a little bit of a weak spring last spring.
They were back on track in the fall, and we are staying on a good level right now, and we've started to deliver also on this $5.7 million order, which is a frame contract from an existing customer, and that should take us into Q1 next year. The other part of building automation, which we call building control, it's our wireless Modbus and wireless BACnet products. Here we focus on our wireless Modbus ecosystem, trying to add more design wins, more products into the ecosystem. This is a long-term plan, and with patience, it will ramp up.
As mentioned, wireless BACnet is getting a lot of traction in North America. We have many good distributors who score more and more projects. We expect a nice, good fall as well with new projects in the pipeline. Overall, we are quite optimistic. We have had a spring, which is business as usual. We are on our own internal targets, and we really hope that the rest of the year will continue in the same way. Thank you very much.
Thank you for listening, and good summer to you all.