GomSpace Group AB (publ) (GOMX.ST) Earnings Call Transcript & Summary

Welcome to today's event where we have the pleasure to present GomSpace. The occasion is, of course, the financial Q2 and H1 report fresh from the press this morning. It looks like markets are liking what they are seeing, at least at the share price level. To help us take you through the results and answer questions, we are joined by Carsten Drachmann, CEO of GomSpace. As always, ask questions in the box down below. There's already a lot of questions and maybe if it's asked, you don't need to ask it, so try and read some of the questions. But do feel free to do it. Also do feel free to ask in Danish, I'll try and translate that to the best of my ability. But for now, I think I will let you, Carsten, take the stage.

Thank you, Michael, and welcome to -- I'm actually standing right now in the North Sea Oceanarium in Northern Jutland. It's a bit of a special background you can see right here. We are here on an executive team meeting. We are talking about strategy. We are talking about the future. As you can see, there's a lot to do in the future. And just to give you an idea of where we are, it's a pretty big tank behind me here. There's about 54 million liters of water. And I just checked that the glass is this thick behind me. So don't -- you can't see my face now. But it's a very interesting being here. We thought the link here is also -- well, we're talking to our customers that are usually human beings, but hey, we're actually also here to help the environment. We're here to help the fishes. So we thought it was a good place to be. So we're enjoying ourselves up here. No, those of you say, "Oh, it's just kind of digital background." It's not. Just watch the shark and a stingray that's passing once in a while, you see it's actually live. Anyway, let's get started. So we make space yours. I start -- I'm going to talk a bit about investor communication as I usually do, some key messages and highlights. Where are we on our business units. This is GomSpace, quick overview. We're growing with confidence. You'll hear me say that a couple of times in a quick summary. Okay, clarity and communication, my 2 key mottos internally, externally. We need to be clear, we need to communicate. So let me try and help you as investors the best I can here. So key messages for Q2. So let's take the revenue. Basically, our second quarter, we are up 45% compared to the second quarter last year in 2024. It's a pretty significant increase. Our EBITDA is positive, about SEK 9 million. It's also an increase. We were just below breakeven same period last year. So very, very happy with that. Our cash flow this year was -- this quarter was negative, minus SEK 45 million. We've had a long stream of positive free cash flow. This has been really good. We have managed tightly that cash. This is what we needed to do. But we knew now that we have cash coming in. We have capital coming in. We have good credit facilities. So we have been much more forward leaning to capture the growth that we've seen in the market. And this is then the outcome here that we are negative on the free cash flow. We're keeping momentum for the year. You can see that we are about SEK 96 million in revenue for the second quarter. We were SEK 88 million in the first one. So quarter-on-quarter growth, this is good, and we have the positive EBITDA that we are chasing for the year. As promised, we are looking to generate a positive EBITDA. So tracking fine there. Significant events, big contracts, 18 satellites, SEK 215 million, pretty good. We closed it just at the end of the quarter, a few days before we're closing, to be delivered over about 12 months, plus/minus. Really, really strong deal for us, also why we're speaking with confidence about what we think we'll deliver for '25, also gives us some confidence into next year. We have the access to the capital now. Money has come in from Peter Hargreaves, SEK 196 million. We also have the credit facility that actually Hargreaves have taken over from the European Investment Bank. Summary of all of that is that we have a lot of cash now. And if you look at it, combining that, good results, we are actually on a good track for the P&L and our balance sheet is really strong. This is a very good position. I'm very pleased that we are here now. As I said, the free cash flow is impacted. This is a little bit the price of winning. I would claim that we have -- probably we would -- would have been really difficult for us to win. It was difficult, but we won anyway, the large contract had we not had the confidence we had by having cash and cash coming in. So that basically led us to make some decision saying, "Hey, in order to win this, we need to start investing in, we call it, long lead items. We are ramping up early." And that was also part of the sales process, convincing the customer, "Come with us, it's safe. We know what we are doing. We can stomach this now in a start-up phase." And that's actually why they chose us in the end as well. So it takes some cash in order to do the bigger deals, and I'm really, really pleased with this. And this is a consequence of having more capital now. If you're looking a little bit beyond, first, just summarizing. So for the first half year, we are up 59% on the revenue, pretty good as well, I would say. The first half year EBITDA in total is slightly above SEK 20 million. This is against minus SEK 16 million last year. So again, we are trending in the right direction for EBITDA and operational profit, if you like. And obviously, the free cash flow is negative, as I've discussed as a consequence here. Looking forward, we maintain our outlook with confidence, for sure. We are -- the big contract that came in, of course, gives us that confidence. We need more than that. So let's see what's happening in the coming months here. There's still a few months to go, but that contract gives us a lot of confidence in delivering on our outlook. We are increasing spending in some areas more than I had originally budgeted, and this is to capture the momentum that we'll talk about later, the momentum in the market. If you want to set ourselves up for continuous growth, we simply need to be more in the market. We need to have more salespeople, business development people, all over the world. So we are basically saying we have to start investing in that now. We're also investing in more people with solution experience so we can go out to the customers and help them build the solutions that they require in order to solve a business case, illegal fishing right behind me here or monitoring what's going on in the oceans around the country, et cetera. So this is already when I say with confidence for the outlook, we have actually increased our costs in certain areas, but we maintain our confidence here. Look into the beyond Q2, it's also just to say -- we actually had a negative equity in first half of the year or the end of the quarter. This has been restored. We knew that would happen. Our equity ratio right now is about 40%. We have more than SEK 200 million equity and cash in bank. Middle of August, it was SEK 260 million. So go in and reach SEK 29 million in the bank end of the quarter, not so good, but we knew money was coming. We have SEK 260 million. It's the most money I've seen in a very long time. So everything is fine, and we can continue to execute here. Cautious optimism for 2026. I don't normally make forward-looking statements, and I should be careful of what I say. But I would say we have a certain optimism that the momentum that we are picking up on in 2025, there's a good chance that we will go into the first part of 2026 with confidence and some optimism. Okay. Just a reminder, we run our business through 3 business units: Programs, doing contracts with customers for building satellites; products where we are selling bits and pieces of the satellites to competitors, universities. And in North America, a little bit outside of this, but simply a big geographic region. We want to capture business in North America. It's the biggest market in the world. Some good pictures. This is what an example of a satellite. We're putting it together in a clean room. So I know we have a lot of new investors. I hope you enjoy the pictures here. It's really cool. Here, we have some examples of the products or the insights of the satellites. I usually say laptop. It's a flying laptop, a satellite. We do hard disk, we do power supplies, et cetera, which is sitting inside the satellite. This is what it looks like, battery packs as well. So pretty cool stuff, pretty cool stuff. Go look at our website also if you want to see more. Now let's dive into the revenue. So how is it distributed. As I said, it increased very well year-on-year, about 49%. It's SEK 96 million, SEK 97 million in total. If you look at the breakdown, and now we're sharing with you, we are running our business based on the business units also to help you to see the dynamic here. So 40% improvement for programs, pretty good. It's about SEK 60 million out of the total, so about 2/3. Products increased 71%. This is also a consequence of -- if you remember, we had a very good order intake in the first quarter of the year. Now we see that because, of course, we start delivering, so we start seeing the revenue coming in. So a great performance there. A little bit less on North America in the quarter. So looking at the half year, programs up 73%. That is pretty damn good, if I can put it that way. A slight increase in Products and also North America was just slightly -- small steps are moving forward, and we see some motion and traction there. So that's the distribution. Take a look at the EBITDA. So we are around SEK 9 million, a little bit less than the first quarter. This is related to the mix of products and programs and margins. So it will always vary a little bit. Breakdown into programs that delivered a very good EBITDA this quarter. Products a bit less. We had some more costs coming in there and the product -- and the margin mix was a bit different. And North America, just around breakeven. The story in North America, I said it's okay. We don't need to make a lot of money there right now. We just want to start building business and every time we make money, we reinvest it in North America so we can grow the platform. On a half year basis, Programs do about SEK 13 million out of the SEK 20 million; Products, SEK 7 million; and North America, as I said, just about breakeven. So I'm pretty content with the EBITDA result here. It doesn't say we don't want to do more. Of course, we will do more, but it's a pretty good development if you compare to previous years. Operating profits, we are actually EBIT positive, SEK 100,000 is also positive, but let's be fair, we are around breakeven on the EBIT. That's good. The net profit, I haven't put in the numbers, but it was a negative quite a lot. And this is a bit odd, just a very brief explanation on that. We have, with the European Investment Bank, a loan that's now transferred to Hargreaves. There are also warrants associated with that. So this is a technicality, and it's because we have a lot of investors, you like us, share price has gone up a lot. So there's a technical valuation liability on those warrants that is basically impacting the net profit. If you ask me, and I'm pretty blunt about things, it's a pretty stupid way of accounting for it, but whatever that's what we have to do. And actually, this will fluctuate with our share price. There's no cash involved. It's got nothing to do with our financial performance, nothing, but it is purely accounting technicality. So if the share price in the next quarter is somewhat less than what it was in average in the second quarter, actually, it will be positive again anyway. Now you know. No cash impact, no impact on our business, no consequence or anything, but, hey, that's accounting. So I already restate here the equity ratio and equity is restored in August. We knew this was coming, but just to be clear because if you read the report, you have a negative equity, not anymore. We are fine with a strong balance, no problems doing government business, et cetera. Free cash flow, negative in the Q2. I explained that. This is about leaning into winning a deal, a large deal that we didn't won. It was the right decision. You can say, so why did you get some of the money? Well, we signed a contract at the end of Q2. I decided to very early on to ramp up. We started the work internally. We have paid suppliers to make sure that they could deliver in time because it's a very short time frame for our delivery. It's really, really tight. So there's no room for mistakes. So everything is on track there, but it's cost money in Q2. And since we signed the contract at the end of the quarter and typically, there are some payment terms that basically say the contract payment terms are coming into the third quarter. And I'm expecting to rebalance that in Q3, we should see a positive free cash flow again, and we're also guiding on the full year to say we maintain our guidance on positive free cash flow. Bank balance, SEK 260 million, not worried about the cash. Don't misinterpret what I say. It is really, really good that we have that money. We will strive that from our operations, from the business we do, the products we sell, the programs, we will make money. That money gives us some cushion to be a bit more bold in taking larger deals. The other thing is it allows us to start investing more. But we're not jeopardizing it. We're not having the money to say, okay, now we can go to sleep and we have money for years. No, no. That money is going to be put to work, but not to cover losses, but actually to increase the top line and thereby also the profit over time. This is very good. And I estimate we'll have a positive free cash flow again in Q3. Okay. Order intake went up. Programs improved a lot, obviously, with a big contract, and we'll keep chasing those size of contracts and more where we can, SEK 145 million moving upwards, including delivering actually the highest revenue from Programs this year or ever actually. So I'm very satisfied with the increase. You see a slight decrease in Products. They had a very strong first quarter -- significant -- really, really strong first quarter. It's dipping a little bit now. We see the revenue -- you can see the revenue here is about SEK 30 million, SEK 31 million we've taken out. We have less coming into the backlog, it's dropping. This is okay. Of course, we're expecting this to go up again. But at the same time, we're also driving on fast delivery, which means, I've said before, our visibility here should not be much more than 3, 4 months tops. We want to get the order and we've got to get it out the door, get the cash and get the revenue. So we will never have hundreds of millions in order backlog here. We shouldn't. Then we are failing. We actually need to constantly rotate it and keep it at a steady pace, roughly where it is now. North America, we build up a bit of backlog, so we'll still trending in the right direction. Okay. a quick overview of the markets. Remember, a lot of things are happening in the market. I get questions from many of you all the time. So what are you going to do in the future? Well, look at what's happening in the market. We talk about marine domain awareness, illegal fishing, surveillance of who's sailing in and out of your territory, your sovereign territory. What about the shadow fleets from Russia. There's a lot of things that are driving this. We have a desire and a need to know more about what's happening in our oceans and our seas around the different countries. Denmark, not to forget, absolutely, and I think more is happening there. But Indonesia is on everybody's mind, we have Thailand, we have Philippines, we have Singapore. There's a lot going on. Secure communication in general is important and also alternative communication, not just via ground, but also via space. And then the whole earth monitoring environment. And on top of all of this, since everything we do is dual use, dual use means while we could take pictures of fishes, we can also take pictures for defense purposes. So our technology can be used either. It's a question of what's on the picture. There's no difference to what the satellite is. So the whole defense industry is booming. You know that already. Our share price has done well in this context. And of course, we are working hard to jump on that wave. So if you ask me, what are you going to do about the future? I'm going to catch the wave. That's what I'm going to do. And now I have the money to do it even better. So marine domain awareness, one of my favorite presentations, I think many of you investors have seen it before, others maybe not, but this is a great picture. This is for our good friends, Unseenlabs. The white dots are these -- it's called AIS transponders. It's all the boats, by law, they have to say, here I am, this is me, this is my ID. I'm all friendly, I'm all good. But they can turn that off. They can -- forgot to charge the batteries, whatever the excuses usually are and then they go dark. The red dots are representing dark ships, basically ships that if they don't have their transponders on, they probably shouldn't be there or doing something they shouldn't be doing. That's already a tell. Look here with our friends from Unseenlabs, and it's all our technology, all our satellites are -- all their satellites are coming from GomSpace. We can monitor the Baltic Sea here. You see the red dots. You see a couple of guys at the time it was taken up just outside of [indiscernible]. So something is happening there, wonder what that is. I would send the coast guard out to check out what's going on there. Not a surprise, if you look up at the bottom of the Baltic sea there, a lot of red dots where there's probably Putin's fleet sitting out there, not wanting to tell who they are or what their intentions are. The orange cable is the fiber cable or gas lines, if you like, coming from the Nordics and down to Europe. It was cut. I had the story before. I love the story. It was cut by a Chinese trawler not so long ago, sort of a big problem. 35% of the data traffic was cut for a period of time. We saw that. We could monitor that. Unseenlabs can monitor that. And this is down from the straight of Gibraltar between Africa and Spain and Europe, lots of cables going across there. You see the white line is representing the same boat, the same Chinese trawler and how it was sailing. And no boat is sailing like that. That trawler was trying to drag an anchor, very likely to cut a cable. With the technology we have with our partners, you can avoid that for sure. Some of you have been sailing down there. You will also know that there's a pretty strong current. Even if you say, "Oh, I was just floating," That's good. You're not going to float like that. That's not how it works. So good technology. I'm going to jump on that ship as well. We have that technology. We have several customers looking to buy this. Megatrends, market changes. You've seen this slide before, but I want to repeat it. Heightened threat level environment. This has lead to increased defense budgets in Europe. Denmark has increased their spending, I believe, up to 4%, 5% of GDP. Many countries have done that. It is unique. It is very different. I know the Danish Defense has now allocated about SEK 3.5 billion in the coming years for investing more in space technology of different kinds. So that's good news. Things are moving forward there. And in general, there's a sense of urgency. We do see more requests. We are engaging in many more deals. And the common denominator when we talk about government business is wanting to control assets. You can buy as a service, you can buy from Elon Musk or from others. But as a state, you don't necessarily control it. So people see, yes, maybe I could rent it, but I would actually like to control it myself. I can decide what I want to do with it. I can make sure it's always available. I can make sure the data that is coming is unfiltered, unedited, nothing. I know exactly -- I control a whole stream of data. That's really important. So that's a trend we see as well, and we have many government customers asking us for advice. How do we do that? How do we deal with that? Obviously, one area which is on everybody's mind right now, many areas, but Ukraine, in particular, and also Denmark is -- thank you, Denmark is actually investing a lot and giving a lot of financing towards Ukraine, also to help Ukraine and to promote Danish technology. And these are, of course, some of the trends that are happening now, and we have our nose in that trail, and we'll definitely follow it. So addressing market opportunities, some of the things we need to do. Reduced time to market is important. Things are moving fast. We can't come out and say, "Oh, yes, sure, we'll take your order and we'll deliver in 2 or 3 years from now or it will take us 9 months to deliver a part to a satellite." It doesn't work. We have to be faster. So we are building on that and investing in that. We have to have more defense and government-oriented solutions. So we are going in that direction. Cybersecurity, more signal intelligence, general intelligence and surveillance is important. There's simply more coming. So that's a ship we are trying to jump on. And to capture the new market opportunities, we need to do a couple of things. We, of course, need to advance the technology that we have, the capabilities of our satellites, but we also need to be in front of the customer and be on everybody's mind. So that requires sales and business development people and it requires technical people that has time to talk to the customer. We want to be the trusted adviser. We want to be the company that everybody comes to and say, "These guys know what they're doing." But in order to do that, I need more than 3 people. I need a lot more. And this is what we're investing in. It will obviously cost some money initially, but we are on the right track now to do that and still have a positive EBITDA and cash flow. So that's good news, I think, also here. But following the trends, you ask me, Carsten, what are you going to do? I'm going to follow those trends. I'm going to gear up and be ready with my organization. I'm going to have the right skill sets. I'm going to make sure I'm present in the right parts of the world, very clear. So in summary, we're growing with confidence. First half year showed a strong growth on 2024. We also have a positive EBITDA, checking the box for that one. Free cash flow, yes, it went negative, but for a good reason, look at the deal we got in, happy with that. It will recover in Q3 and Q4. So I'm not worried about it. Order backlog increased. That's great. Increased order backlog gives more visibility. It will always mainly be from Programs as you just talked about, but it gives us more confidence and visibility. You can do the math with that size of backlog and what we're delivering. The backlog is extending into next year also for execution. So that's good. We have restored our balance sheet. I'm very, very, very pleased. Thank you, Mr. Hargreaves, for the investment. I hope everybody is giving a big thanks to Mr. Hargreaves supporting here. He has no interest in taking over the company. He said that many times, but he really believes in the story and he provided this capital without blinking. It was less than 24 hours. And this has really restored us to a level where we have a strong equity ratio. We need that to do government business, and we have cash in bank. So we can really start focusing on developing the business from here. Guidance, our outlook. We keep that SEK 320 million to SEK 380 million on the revenue side, somewhere between, yes, probably positive, we can say that and up to 11% for the adjusted margin, EBITDA margin, 11% and a positive free cash flow. And again, I want to repeat, we said with confidence. There are more things to be done. And even this, if you allow me, we stick with the confidence in this delivery of the top line. It's still a 30% to 50% growth on 2024. That's pretty damn good. We can do more, we'll do more. Don't worry about it. I'm not holding back. We are pushing forward, but we want to do it with -- be profitable as we go along. I now also say with some confidence running into 2026, I think we can keep our momentum going. Thank you.

I think, Carsten, should we jump into the question, as always, a lot of questions. So I think we will get very well around all the edges of your investment case. Let's start with the one we usually get. Indonesia, have you had any contact with the government down there explaining some of the delays? So any thoughts you have on the Indonesia potential contract?

Yes. Contact every week, always, we talk to them. Remember, we have a very good French partner, Ellipse Projects. They are actually present in Jakarta every day. So we are in contact all the time. I think it's not about them needing to explain a delay. It's just a process that we're going through. And I'll repeat my statement from earlier. I will tell you if something significant is changing for the better or for the worse. Right now, it's status quo. And we are working on this every day, and we're in regular contact with the customers. So nothing has really changed. And remember, we signed a commercial contract at the end of 2023. That hasn't changed. That contract is still valid. But the financing is required for Indonesia to execute it. Technically, I could execute it now and then hope that they will pay me, but I'm not going to do that. I think they need some financial backing. But this is ready, but the financing is a political process that is dragging out. Hey, it's fine. We have a lot to do, and one day, this one is going to show up in one shape or another.

Perfect. And then, of course, to Mr. Hargreaves and his offer he is needed to make to the shareholder. And I should allude that the people asking this question, of course, states that this is actually between the investors and Mr. Hargreaves, and you are kind to kind of be the mediator here. So any news -- and it's actually this the 20-day where -- from which date, was it the 1st of August? Or was it when the shares were submitted? And then, of course, there's still this question about is it these 20 days average price that will set the price. So I know, Carsten, you're actually not obligated to talk about it, but if you can kind of allude to your knowledge about this process.

Yes. I think what I would like to focus on repeating why is Peter Hargreaves doing this. He's doing it because he's very pleased with the development of the company. He came in early and basically saved the company. Let's be honest, that's what he did. So he came in, he saved the company with the cash. And he really sees now we are on the right track. And I said to him, "Peter, if you want me to accelerate, we need more cash." And he was ready to do that immediately. So the reason Peter Hargreaves is doing this, he wants to help us boost the company and take it further. Guys, do the analysis. If he wanted to buy the company, he probably have bought it at SEK 3 or SEK 4. He could have done that. I mean, he could have gone ahead and written a check and it was done. That's not what he did. He invested and the share price is going up. It's helping everybody. We can really grow the company now. That's why he's doing it. There will be an offer from Hargreaves coming soon. I don't want to comment or speculate in that. You know that the FDI process or the foreign direct investment has been approved. I don't even want to say any days. But once that approved, the clock is ticking, which means Hargreaves has to come up with an offer in a very near future. And once you see that offer, you will see what his final decision is on what he wants to offer in the market. And I don't want to comment anything on that, just saying so there's no misunderstandings. Peter doesn't do this because he wants to buy the company. He wants to help the company. So everybody in on the right, thanks God for Peter Hargreaves because we are going in a good direction here.

I know. And as you said, soon, we will get this out of...

Yes.

What are your expectation of revenue recognition for the 8 satellite deal you signed June, the big order there, given that your guidance now remains unchanged? So can you give some kind of a feel on when this revenue will get recognized in your books?

Yes. It's -- as stated in the press release, and we are required to do that also, we state the contract value and we have to indicate a delivery time. So it's within, give or take, 12 months plus/minus. So you can do a little bit of the math because there are different revenue recognition patterns. But how I would state it is that when I say with confidence, obviously, that has given me confidence. There are many parameters that need to move, but you can read on my body language, it has not put it in a worse situation than we were already. It has helped. So we say that with confidence. I'm not going to comment on revenue recognition as such. That would be wrong. But you can see that it's trending in the right direction.

Then there's the share of administration -- employees have increased from 16% to 20% over the last half year. What's the explanation for that?

Yes. Yes. That's a very good question. And just to be precise, it's a percentage -- it's not a percentage increase, it's a percentage of the full staff. There are some technicalities on that. But actually, the main reason is what I said before, sales and business development people and solution architects and engineers that we need. So we're investing in a lot of that right now. So I'm taking in and deliberately increasing my overhead cost there towards the sales. So it's actually SG&A. I think there's an S missing in the report, sales, general and administration. The G&A hasn't moved so much, but the sales has moved up a lot with good intention and good purpose.

Perfect. Then a little bit -- and I think you touched upon it, your confidence in this cash flow. The deferred customer payments primarily drove the weak cash flow. Are you worried about the customers' ability to pay or what has driven the deferral? I think you mentioned that it was a contract that came in late Q2. So -- and remember, it's the balance sheet for that.

I'd say I am always vigilant about our customers paying, and I am on their back. First of all, I'm on the back of our own people to deliver in time. So we per contract can invoice and we can collect cash. And of course, we are following up strongly on our customers to deliver. Like you said, yes, the payment terms if the contract is sort of leading into Q3. So we will see payments during Q3. But in order for me to close the contract and win the confidence of the customer, I basically decided to spend money ahead of time. It was a calculated risk and hey, it paid off.

Could you add some explanation to the SEK 20 million program order that was canceled during the quarter?

Yes. This is -- and good catch also, I'm very pleased that people are actually reading the details of the report. This is a program -- this is a customer order we actually got quite some time back, I think maybe even before my time. We have a lot of start-up customers, people looking for capital, et cetera. So they placed an early order to get some commitment from us that technology-wise, we could do it. They never managed to raise the capital. We've been working with them over the years. We are accepting to say, "Okay, let us now when you're ready." But we have decided, okay, we'll take it out of the backlog now. And then the customer is still there, but they need to raise the capital. So basically, that's why. So it's not -- the canceled order hasn't really taken anything away from our outlook or cash. We haven't spent much time on it. We're just waiting for the customer. And I want to say what's very interesting, and that's also why some customers come to us. Almost everything in this business is start-up. It can be a small startup or a big start-up. It's all new ideas unless it's government business. I worked in a start-up. I understand what it means to raise capital. I understand the dynamics. So we have a very good dialogue, and we don't take any stupid risks on this. We are deliberately understanding who they are, which phases are they going through and how can we best help them because I strongly believe that one or the other of these start-ups are going to go in the right direction. If we can help them, we have a long-term customer. One example, Unseenlabs. When they started, they were really small. They had nothing. GomSpace was helping them getting started, helping them with the technology and look at where they are today, fantastic company, growing a lot and our best customer ever. So that is why. So the long explanation of why did we cancel that. Well, technically, we say, okay, it's been now more than 2 years. So we'll take it off the list. But if you -- when you're ready to move, come back.

And I don't know whether you want to answer this, Carsten, but how -- now looking at your order book in the systems, how many -- and a lot of this type are very small, I guess, if I put the [indiscernible], I can actually calculate there can't be a lot of this.

[indiscernible]hey Carsten, it is so hot here. No, it's not. No, there's not a lot of that. But it is just a leftover from the past. It's -- I don't want to -- I can't disclose what it is, but just say that it was -- it still is a new technology that if it flies, I saw a great opportunity in that. So I let it slide a bit longer, but okay, now we're moving on and leaving it there. So no, there's not an overinflated order backlog. Don't worry about that.

Perfect. Then do you have any comments on Space Inventor claiming that BIFROST is the first satellite to survey the Arctic.

I offer you facts. Here's a fact. In 2018, GomSpace launched 2 satellites. They have been flying over the Arctic for almost 6 years. Those 2 satellites were launched. One was paid by the Danish Defense and the other one was paid by ESA. They're called GOMX-4 A and B. They've been flying, taking pictures, doing signal intelligence, doing communication for more than 6 years. And we -- as we do because all the satellites are our small babies, we shed a tear. We celebrated. We have a [indiscernible] team. After 6 years of loyal service to us and providing data to ESA and also to our Danish defense to the extent they wanted it, they were end of life. This is really good. The average end of life is actually 5 years. In this context, they flew for 6 years. So that was really, really good. But in the end, they retired and we said, okay, time to go to sleep. So they have been deorbited. So I have no comments to what they're saying, but I can just offer you a fact. In 2018, we launched 2 satellites over the Arctic.

Then there's a question, do you have any pending projects or orders that might have awaited the finalization of the [indiscernible]? And I think also there's one asking about the equity, when you need to go out and take in big projects, of course, the clients look at your balance sheet and on the equity. So has something just postponed that might now happen? Or have you been able to convince customers, "Look, I have everything coming in, feel comfortable with us".

Yes. So let's start backwards on that. There's nothing has been waiting for this. We've actually got all the deals. And when I was confident we got it, I repeat the story. I went out. I pushed all in on waiting those 18 satellites, which is really, really good for us. And I want to repeat in many sense, yes, you understand the top line. But beyond that, it's really proving our capability to produce a lot of satellites, 18 satellites in a very, very short period of time, manage the whole supply chain. You have seen an announcement that we have outsourced part of our production of our subsystems to a local partner, NECAS. They're doing really well. So it's capacity scaling that we're doing. So not only does it generate a top line and, of course, profit, it's also helping us gearing up our organization. So this is a really strong reference case for the future. I could do that because we knew the capital was coming in. It wasn't waiting for that. It enabled me to do that. Outside of that, I'm not going to comment on if anything is just around the corner, but there's nothing -- there's been no blocking points for us not having that capital, but it has enabled me to do more.

And then there's a question, and I think you already answered it. Are you convinced you secured enough orders in H2 to be able to continue strong revenue growth in '26? And I'm not asking you to guide, and I think you can maybe just move to the slide where you commented that.

Right. We say with confidence, speak about confidence, with confidence on our outlook. So yes, you deduct from that what you want.

And that was a long question, but I think I can sum it up to can you talk a little bit about the changes that has happened since you arrived at the company? And secondly, where do you see the company moving in the future?

Yes. Now we are out here in the North Sea Oceanarium for there's a little bit of fun in that because there are fish in the background. It's also about fish, what we're doing. We have an executive team here where we talk about strategy into the future, very intense discussions because of all the things already listed on the slide. So looking forward, it's simply a market opportunity thing that we need to capture, and we are starting to learn and understand what we need to do. We also have a larger team, a lot of our country managers and middle managers are here for a day where we are talking about the next steps. And that's leading me to say very good motivation, really good engagement from everybody. We are on a good track. And that brings me back to what have we done over the past 2, 2.5 years. Well, a couple of key things. First of all, to me, it's all about people. If I can make people function together, if you have the same value set, if you understand what we want to do, then we can solve a lot of problems. If you fail to focus on your people, if you fail to appreciate and respect people, you will fail no matter how smart you are, you simply will fail. So we fixed that a lot. We're really on a completely different level than we were 2.5 years ago. It was a turnaround from a pure cash point, it was a turnaround. Money just came in. Hargreaves saved us. So we've had a lot of focus on cash. Cash, cash, cash, all the time. And then profitable orders, we've cleaned up our order backlog earlier. We have let programs go. We have stopped programs we couldn't make money. Simply to say, but it doesn't make any sense. We can't have hundreds of people and not make money on programs. It won't fly. So we did that. So we've had to focus on cash, then we have invested more in sales. So we have built a pipeline. We are much more present around the world. We have a North America strategy, which slowly will come. We have closed good business in Singapore with several customers in Singapore that's really strong. We continue business with Unseenlabs, and we start seeing a couple of other customers lining up that hopefully we can develop into long-term customers. So in summary, people, focus on cash, clean up the order backlog, build the pipeline. And here we are, you see the result. I don't have to explain that. You see the results for the first half year. It's a good result. And there's money in the bank. So now I can start turning my attention towards how do I grow it even more. My focus in the past had been how do we make sure that we keep having money in the bank and we slowly grow basically to continue as a business and to make sure that our investors are happy, and now we can do even more. So a quick overview there.

Perfect. After a solid EBITDA result in the first half, why are you not narrowing your guidance? And where do you expect to invest if that's the explanation of you not narrowing your guidance?

We -- so again, I say the confidence about our guidance. We're still a little bit left in the year. We'll see what's going to change. I don't feel any special need to just keep changing this. I think the guidance is really good here, and it speaks for itself. We have a positive EBITDA in the first half, and you see a pretty solid revenue as well, and we keep our guidance on the top line as well. So then we'll see. And remember, it's an EBITDA percentage that can change a bit on my top line is that the percentage will be changing. So I didn't see any reason to do that. Listen to my voice, listen to what I'm saying, analyze the words, confidence, optimism about 2026. I think that's more than sufficient.