Good morning, everyone, and thank you for joining us today. We are here to present the Q3 report, and hopefully we can give you some meat to the bone of that report. The positive order momentum we saw in the second quarter continued and was even strengthened during Q3. Order intake increased by roughly 12%, currency neutral, supported by strong inflow of small and medium-sized orders, as well as a few larger strategic projects across all four divisions. This development is particularly encouraging as it reflects the work, we do to broaden our position in new industry and potential new growth segments. Process Technology had a particularly strong quarter, with order intake up almost 32%, currency neutral. It's a big bounce back from a period with low order intake. Duct & Filter Technology also continued its positive development, with higher order intake, sales, and profitability.
In Extraction & Filtration Technology, order intake increased, supported by a stronger base business and also several larger orders. We're also seeing results from the investment we have made to strengthen our operational platform. We have invested significantly in manufacturing logistics in recent years, and we have a strong platform for improved margin as volume increase. The ongoing expansion and modernization of our facility in Charlotte further strengthen our position in the North American market. Sales and profitability remained below last year, reflecting the weaker order intake at the very beginning of the year. Both improved compared with previous quarter. At the same time, cash flow was strong. During the quarter, we saw clear results from our continued efforts to expand into new industries and market. That comes from defense, pharmaceuticals in Europe, to metal recycling in the U.S., and semiconductors in Asia.
Strategic orders showing how we use proven and acquired competence and technologies to enter new markets and creating growth opportunities. Overall, Q3 strengthens my confidence in the direction of the company. With the order growth seen in recent quarters, a solid order backlog, and a pipeline that continues to look promising, we see good prospects for volumes and consequently profitability to increase as the year draws to a close. With that, I hand over to Matthew.
Thank you, Sven. If we go through now a few of the key financials. Orders received, as Sven mentioned, a strong order received quarter in quarter three, 11.8% up organically, currency neutral, versus the same quarter last year. Those of you that can see the slides that are being presented, there's a chart in the middle of this current slide where you can see definitely the upwards trend is there. Nice organic growth, SEK 147 million in organic growth in this quarter alone. Year to date now, currency neutral positive 3.4% is also pleasing. There definitely seems to be a momentum on the market after this very slow January and February we saw at the start of the year. We've had seven, basically, very good months of order intake now. Highest quarterly sales so far this year as well in Q3.
1.7% currency neutral behind the same quarter last year. As Sven mentioned, that is a result of the order intake, largely a result of the order intake being slow in the first quarter of the year. But definitely an upwards tick. You can see, again, the chart in the middle, it is heading in the right direction. Given the order intake that we had in this current quarter three, we are rather confident that will continue the upwards trend in the fourth quarter as well. Moving on to profitability. It is the most profitable quarter of the year so far. We are still at SEK 131 million, EBITA is behind a very strong Q3 last year of SEK 166 million. Not yet where we want to be. It is 9.2%, operating profit is SEK 104 million, and earnings per share SEK 1.68 in the quarter.
Not where we want to be, but again, expectation for the fourth quarter is for the sales, and therefore profitability will clearly increase again. With the order momentum that we have right now, we are reasonably confident going into next year, although the forecasting there is less clear. Cash flow and net debt. Extremely good cash flow from operations in this quarter three. We have a tendency in the Nederman Group, it is just with the nature of our business, that the cash flow picks up throughout the year, and it is very pleasing to see that the cash flow from operations has gone up. At the same time, we do not see that quite so much on this slide, but the level of investments that we have seen in the last two years, two and a half years in fixed assets has reduced somewhat.
We are still finishing off some investments in the Charlotte premises and the facility there. But it will be not at the same levels as we have seen in the last couple of years that we have fixed asset investments. That will generate cash and reduce the net debt. We see the net debt has ticked down a little bit in the third quarter already here, which is clearly positive. But further cash generation should be or is a clear target of ours, and with the volume growth that we anticipate, that will clearly happen. We can go through the four divisions now, Sven, and starting with Extraction & Filtration Technology.
Yes. If we are starting with the largest division, Extraction & Filtration Technology, we start to dive into the third quarter. Actually, the orders increased, and there was a stronger base business in both EMEA and APAC, and we had some larger orders coming back into the Americas region. We actually had the highest sales quarter for the year to date, but it is still behind Q3, and that comes from the low, I would say extremely low, order intake in January, February, and that has impacted sales. Service and product sales are growing, and especially our focus on service business and building the continuous relation is pleasing to see that that continued to work well. In EMEA, the underlying base business has been positive, and we have seen some increase in the sales.
If we go overseas to Americas and APAC, we can see that the Americas order increased while APAC orders rose sharply, and that was especially Australia and China. China felt small for us in the division, but we got some orders here. If we continue to what are the key activities. One of course, is the integration of Fume & Dust Control in Australia. That will strengthen the position in certain growth industries. We are also going to move the Brisbane office to one consolidated office, preferably without the snake farm in the garden. New technologies were shown at the International Woodworking Fair in Atlanta, and we have here had focus on smart airflow control, energy efficiency, and dust management, and it was well-received. We booked more than 25 orders in the fair, which was also encouraging. Some more positive momentum in U.S.
Expansion and modernization of the manufacturing facility, Charlotte, is ongoing, and it's nearing completion. That will mean that we will continue insourcing more, and we will have a much more stable supply chain here, especially in this first period for our business in RoboVent, Detroit, but also continue with our woodworking business.
Briefly on financials then on Extraction & Filtration Technology. As Sven mentioned, very good order intake, 4.5% up versus the same quarter last year. Sales 2.8% down currency neutral versus the same quarter last year, which results in an EBITA margin of 11.3%. We expect the fourth quarter to be significantly stronger for this division given the order momentum that they have right now. Moving on then, Sven, to Process Technology.
Yes. For Process Technology, if we have, as mentioned before, the highest order intake quarter this year, and it's actually 32% increase versus last year, and it was supported especially with one big order, but also a number of mid-size good orders. The aftermarket business continued its positive trend. We continue to grow massively. We are building our capabilities. We are also supporting with newly developed product, exchange product that can increase the efficiency in existing installation. Well-received by the market. Strong order intake in Americas and in India. India performed very well as growth of both fiber and textile and foundry and smelters. Here we have introduced and taking, if I may say, German technology to India, manufacturing locally and handled by our very strong management team from Luwa supporting. We are also supporting them as sort of country lead here.
The profitability unfortunately dampened versus Q3 2025 due to sales mix and lower sales volume, mainly the latter. Order backlog continued to grow, providing a solid base for future sales growth, and that we are very happy for. Key activities is a continued focus to grow the service business, including the digital portfolio. Ongoing improvements to product lines and upgrade to test centers. We are continuing to use our data we have collected. We are using our innovation center, testing different dust material, et cetera, and we are using that knowledge to improve our product range.
Financials for Process Technology then. Orders received very strong, 32% up. SEK 45 million higher than the sales figure, which is sales are 5.6% down currency neutral versus last year. But of course, the division has then built SEK 45 million in backlog, which we can see on the chart on this slide, which bodes well looking forwards as well. Sven mentioned mix briefly, a little bit more on that than why the profitability is down. There is, of course, lower sales that doesn't help. When it comes to mix, we've got a positive mix effect here through more service business, but we have a negative mix effect in terms of the solutions that have been sold with more fiber and textile proportionally than the foundry and smelters business inside Europe. Foundry and smelters in Europe has traditionally been one of the more profitable parts of this business.
We see good potential for growing that, particularly in the U.S., in the coming months. And we've seen orders received already to support that. But quarter three, 7.4% adjusted EBITA is where we were. On to Duct & Filter Technology, Sven.
Yes. For Duct & Filter, we can say that orders received increased, driven by Nordfab U.S. and also the bit smaller Nordfab EMEA. Very good base business development, and it was then boosted with topping up, the icing on the cake was a number of reasonably large order here. Sales volume increased and profitability improved, supported by the recent efficiency investments in manufacturing and logistic, and that goes for both our North America and European business. U.S. and EMEA improved both order sales and profitability. Menardi, some decline in order intake in the U.S., while Menardi EMEA grew. Overall, profitability increased. Key activities for this division is the development that is ongoing of a new generation Nordfab's QTO. It's only engineers that can have such fabulous name on a tool that is crucial to make it easy to do business with Nederman and Nordfab.
Upcoming introduction of AGVs at the new XD Ducting facility in Thomasville. That will be a move towards a fully automated warehouse. That will be finalized by the end of Q2 next year. The AGVs are ordered, the layout are there, and that will make also the XD, which means large dimension manufacturing, highly efficient. We mentioned for some in Brisbane we had poisonous snakes in the office, and in Bangkok we had flooding, so that's good excuses for a lot of things. But we were lucky, even if there were a few days when we had no personnel in the factory due to impossibilities to get there, we had no damages.
Financials for Duct & Filter Technology are very strong, as everyone's understood. 8.1% organic growth. Sales at SEK 219 million in the quarter, which is 7.6% up versus Q3 last year, giving an adjusted EBITA of SEK 43.6 million. 19.9% is very strong, and this division now up at 19.3% for the year to date. Like you mentioned, Sven, these investments in the manufacturing and logistics facilities are among other reasons why we are so strong here. Monitoring & Control Technology.
Yes. During the quarter, orders increased with Americas the strongest region, and positive performance across all business units. The highest sales quarter so far this year, and the order intake also grew versus last year's Q3. Auburn engagement was positive, while NEO Monitors declined slightly due to lower order backlog in EMEA. We had the highest quarterly EBITA so far this year, and we continue to have good order intake in Americas. APAC secured the first direct semiconductor industry order, and that was very encouraging. We have spent a lot of resources, manpower, money to build up a service organization, finalize the test units both in Korea, Singapore, and in China. And we have now finally seen the first result, the first commercial order actually in Korea. But we also followed up this quarter, beginning of this quarter, with the second one going into China to the same customer.
So, we are pleased to be able to announce that. When it comes to EMEA, orders received was lower than Q3 2025. There were some larger orders that was not repeated this year. If we go to key activities, we had a breakthrough order, as mentioned, in the semiconductor industry. We had a very strong start of the GT7000 Telos with the several orders received following the launch in late Q2. So again, new product that has been on the market that has been well-received. Service business has been strengthened with the targeted activities aiming to the install base, the already existing install base. We are using our measurement and also adding the Olicem systems here. We continue to invest in digital solutions, product development, and upgraded service workshop. As mentioned in Singapore, it's actually also in Seoul, and we updated the one in Houston as well.
Financial for Monitoring & Control Technology order intake increased approximately SEK 5 million, currency neutral. That is exactly flat versus Q3 last year. Sales, as we mentioned, at sales and profitability, the highest quarter so far this year, 1.6% higher sales than 12 months ago. The adjusted EBITA was SEK 26 million, which is a 14% EBITA margin. It must be pointed out that this division is weighed a little bit down in the quarter with some costs of establishment in the APAC region, particularly in the setting up the Korean and Singaporean offices further. So 14% is definitely heading in the right direction, but we expect further improvements there, particularly with the order intake momentum that they have had in the past seven months or so.
Very briefly, financial calendar, this information is available in the report, but the year-end report will be released on February 12, where you will get a chance to speak to us there. Interim report for Q1 is on April 23, and the AGM is on April 27. Following that, interim reports two and three, I will let you put those dates in the diary yourselves. With that, Sven, I think we can open up for any questions that listeners may have for us.
Absolutely.
If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from August Flyning from Handelsbanken. Please go ahead.
Good morning, Sven and Matthew, and thanks for taking my questions. Two questions from my side, please. Starting with orders, we are now seeing two consecutive quarters of improving order momentum with organic growth here reaching almost 12% in Q3. Can you talk a little bit about the underlying activity you are seeing and whether you see enough in the pipeline to sustain this momentum going into 2027?
Well, if I understand right, we've seen that we have, and we've had for some time, a very strong pipeline, a long pipeline, where we get increased interest from our newly launched system products, et cetera. We hope that this momentum will continue in. We see in number of ads, there's still a strong pipeline. We have an increased activity among customers and potential customers. But it's very difficult to say because every morning there is on, not Twitter, but something else, some new follies going on that can have a short-term impact. But we look long-term, we see we are taking market share. We see that with all of our quality digitalization, not only offering but also the way we are using our digitalization to make it easier to do business with us is having a growing interest.
We also see that our capability around the EPCs, mainly the engineering companies, with different tools, including, what's it called now? Yeah, the different tool makes Nederman a more interesting partner going forward. I will not promise, but I sincerely hope and think that there will be a momentum also after this quarter.
What the numbers guy here could also add is if you compare, August, if you're looking compared to 12 months ago and how we were feeling in terms of market momentum, it is definitely stronger now than then. You've understood we're rather confident about quarter four, but there is definitely more market momentum. But whether that continues or not, we'll see. But we're more confident than 12 months ago.
Right. Perfect. Thank you very much. Onto service and ops market then, which continues to grow quite nicely here in the quarter, now accounting for around 23% of group sales in Q3. I know you mentioned this a little bit before, Matthew, but how should we think about this number going forward, and what are the key initiatives you're taking to drive that growth further? You mentioned building relationships, et cetera, but is there any other things to point to? Because the trend is clearly heading towards a positive direction here.
If I answer the numbers, then Sven can give more meat on the bones in terms of activities. The 23% is good. Of course, we want to grow. Over a sustained period of time, we want to grow the aftermarket faster than the solutions business. This 23%, if we are a little bit self-critical, is because our solutions sales are not at the level we would like them to be right now. We expect, and we think that we will be able to grow this over time, faster than the rest of the business. It is clearly the most profitable part of the business. Then there are activities that is going on to back that up and make it happen, Sven.
Yeah. We do not measure. The percentage units is not so interesting. We measure how much in dollars, euros, and kronas that we are growing.
Yeah.
For each business, because it can be skewed, as mentioned by Matthew, by low order intake in solution sales. Then, of course, the percentage of aftermarket is higher. But we are continuing to work on what kind of retrofit kits, and that has been one of the suggested offerings that has been giving us growth. We are working with different both products and systems to lower energy use. It is like Nederman SAVE, the monitoring capabilities here. That gives us a good confidence that we will continue. We are also adding manpower resources. One of the key elements being able to sell into the semiconductor industry as well as to the oil and gas and petrochemical industry in U.S. has been that we have invested heavily in manpower on-site with capability to do it. We continue to do that. I am confident that that portion will continue to grow.
Perfect. Thank you very much.
The next question comes from Anna Lagerlöf from DNB Carnegie. Please go ahead.
Yes. Hi, good morning, Sven, and good morning, Matthew. My first question is on the product mix effect in Monitoring & Control Technology. Could you tell us a bit on how it looks in sales and particularly in orders? Because even if the margins are down year-over-year, it is quite a solid sequential step up in profitability in Q3.
Inside Monitoring & Control Technology, you are referring to there, Anna, is that right?
Yeah, Monitoring & Control Technology. Exactly.
Yes. What can we say about the mix there? That division has significantly more margin to deliver. We have; even if they are at nearly 15% for this quarter. That is with less sales in the traditionally most profitable part of the business, which is in EMEA. Therefore, we are rather confident that with the modest volume growth, we will get an even better margin. At the same time, they have grown their service business, which again, is the most profitable part of that business, and also is, as Sven just mentioned in replying to August's question, this service business not only gives you good margins, but it gives you repeat orders and guarantees orders of the solutions or sales of instruments in the case of Monitoring & Control Technology.
But there is one, if we can say, very profitable low cost to sell is the portable units coming from Gasmet. They have continuously been hurt of the cut in spending in official or public spending, especially in U.S. where customs, et cetera, and school, university has reduced their spending significantly here, and that has been a continuous story during the year. So that is part of that. Then we have had initial higher cost when it comes to get into the Asian market. As mentioned before, we have spent time, effort to get introduced into this market. Therefore, it is so encouraging that we got the first two lighthouse orders, that we are working with the leaders in this field. So I am positive that we will see a return here, but again, the market is volatile.
Political decisions impact more than it used to be doing a few years ago. Was that a fair answer to?
Yeah. If I understand you correctly, the portable units in Gasmet, that remains a challenge, but you've seen some other positive benefits that are starting to have a positive impact on product mix.
Exactly.
Yeah.
We have not seen a full return on the portables. We have some new potential routes for selling portables. For example, the military use is one that we think we will be able to drive up sales of portables further, but that has not materialized significantly yet, and has not affected margins positively yet.
Okay.
The purchasing time is very long. But we see a significant interest. We have the capabilities.
Perfect.
We also see a possibility on mercury measurement with new regulation giving us as being one of few, if not the only one, that can fulfill the technological requirement.
Okay, perfect. On the semiconductor-related orders in Asia, how much is that showing already in this quarter, and what are you expecting going forward?
Very little in this quarter. One order.
Yeah, there's one order in this quarter. No impact on sales yet.
Yeah.
Let Sven answer how much can we expect.
If we are successful, we can expect 10s of millions in Norwegian krone per annum if that is.
Right.
Because we are technologically superior, and we've got the first, as I say, two lighthouse orders, and we've been accepted by the leader in there, and we are now exchanging Japanese older equipment. Yes, it can be very positive, but again, we should not say that everything is in the end, deals are done. But we see we already get the second one, so yes, I'm very positive.
Okay, perfect. On the order situation in Process Technology, how should we think about timing of deliveries here? It sounds like some larger orders are back. How should we think about deliveries into Q4, instead of having delivery timing to 2027?
The Q4. The backlog, as you saw, is obviously better than it was 12 months ago, so their Q4 ought to be stronger than Q4 last year. The orders, when we are booking orders, the biggest individual one came in in the middle of the summer, which means the majority of the revenue for that will not be recognized in the fourth quarter. There will be some, but it will stretch into next year now.
Six to nine months normally.
Yeah, exactly. That is the average time you need to look at. An average for that division is six to nine months for the backlog delivery. You can look a little bit further back in time on order intake in that division if you are trying to forecast sales, than you can for Monitoring & Control Technology and Extraction & Filtration Technology and definitely for Duct & Filter Technology, which is just the, as you know, that is a very quick turnaround there.
Perfect. Just a final one from me, because you did mention a bit on Chinese competition in the report. Could you maybe elaborate a bit on sitting here and in what way and in which areas that has been a challenge?
Not really outside China, but in China, where we are not having the strength of a very strong organization, we have it varies from division to division there. We do have a very strong position in high-end supply within MCT, where we are so technologically superior that there's no alternative, but basically for certain application. Here, we still have a good growth momentum. If we look to the other divisions, we have a strong position as number two when it comes to fiber and textile in Process Technology. We are by far number one in India. We're a good number two in China, and here we also try to build a position with some other and increase the made content into the Chinese operation.
When it comes to EFT, in certain high-tech application, we fall Western European companies, we do have a competitive edge because we are capable of delivering a good effect, but the interest in these more workspace improvement products are not at the same level as they are in Europe and U.S. For other applications, we are capable in a number of niches, but we do not have the strongest organization in China. We are contemplating our way strategically forward in that region. We are definitely looking at further growing our position in neighboring countries like in Australia, et cetera.
Okay. Very clear. Thank you so much.
There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.
Okay. Then we try to wrap up this. To conclude, I would say we are quite encouraged by the continued strong order activity during the quarter. Positive momentum we had in Q2 strengthened even further, and we saw a fairly strong demand across our divisions. Our strategic direction remains very clear. We continue to elevate Nederman by strengthening our positions in our traditional markets, while quite successfully expand into structural growth industries like defense, semiconductors, and some others, food among that. At the same time, our growing service business and digital offering provide resilience, long-term customer value, and recurring revenues. With the order growth from recent quarters and a very solid order book, a strong pipeline, and the long-term need for cleaner, safer, and more efficient industrial production, we do see good prospect for volumes and consequently profitability to increase as the year draws to a close.
By that, I do thank you for taking the time, and I do thank you for your continued interest in Clean Air and in Nederman as a company. Thank you