Robit Oyj ($ROBIT)

The CFO, to go through the Q1 2026 financial results. We're happy to present a quarter where we clearly saw a strong growth in orders and a clear improvement in profitability. Our orders received increased by 20%, reaching EUR 24.1 million. This was due to a very stable demand on the mining industry side as well as a clear increase in activity in the piling business in the Nordics. Our net sales remained roughly on the same level year-on-year on EUR 21.3 million. Our comparable EBIT increased clearly well, clearly, more than doubling from the year 2025, reaching EUR 1.4 million. Our wet cash flow from operational and financial side improved as well net flow from operating activities was minus EUR 1.5 million, improvement from minus EUR 2.2 million a year before. And our net liabilities were $16.6 million, reduction from EUR 21.7 million year before. We saw a clear improvement in our performance in the Americas, where our revenue increased by over 30%. Still, the EMEA region remains the biggest region in our portfolio. More softer development was on Asia and Australasia side, where our revenue decreased from last year. When looking at the SBU side, the top 10 business remains the biggest share of our revenue, but we saw significant improvement from the geotechnical side. When looking more specifically into the development of the SBU side, we saw that the top hammer net sales decreased 15%, and falling to EUR 12.9 million. Our down ball business increased by roughly 4%. And in the geotechnical side, we saw a clear increase of 53%, roughly 3% reaching EUR 5.4 million as said, we saw clear improvement on the profitability. Our comparable EBIT was 10.7% of the net sales.

And I'll continue here. Thank you, Mikko. Then if we take a look in a bit more detail about the financial figures. The net sales remained largely unchanged year-over-year at EUR 21.3 million. We had very positive net sales in our Geo business like Mikko highlighted. But at the same time, we saw a decline in our top hammer business. When it comes to the SBUs, our GEO business was very positive all in all, in the net sales and the orders. With the profitability there was a clear improvement or significant improvement in Q1. Our EBITDA percentage increased to 10.7 percentage and our EBIT in Q1 increased 6.5 percentage. And this was driven by our healthy margins as well as the headwind with our currencies. Our Q1 result of the period strengthened and was EUR 0.9 million. Moving on to net working capital. Our net working capital totaled to EUR 41.6 million out of inventories increased to EUR 39.4 million, and this was due to increased material costs during the early part of the year, we've seen significant growth with tungsten, which is a major raw material in the car pits. And we also expect the inventories to continue increasing in Q2, driven by the high tungsten prices. Our receivables decreased on year-on-year to now EUR 19.6 million in and our payables increased to EUR 17.4 million. And this was driven by increased material costs, especially with the Tungsten and our orders received during Q1, which we will need to prepare now for selling in Q2. We also have some seasonalities here. So when looking at the graph, we see that radio has had an increase in net working capital from Q4 to Q1, our cash flow was very close to last year. Our cash flow before changes in net working capital was EUR 2.3 million our operating cash flow was negative EUR 1.5 million, and our cash flow from financial activities result of EUR 0.2 million. Our financial position remained on a healthy level cash on cash taken at the end of Q1 were EUR 8.2 million, so pretty much on the same level as last year and total interest-bearing loans and utilized credit limits were EUR 24.8 million. And this includes IFRS 16 liabilities of EUR 3.1 million. Our capital structure remains strong. Our net debt decreased and was now EUR 16.6 million our financial covenant. Also, net debt 12 months rolling EBITDA was now 2.83 and we continuously monitor this KPI, and we do the necessary actions to ensure that we are below 3.0, which is our financial coverage level. Our equity ratio remained strong at 51 percentage. Our loans from financial institutions at the end of Q1 totaled EUR 20.9 million. And now when the interest rates have been going up and down. We, as a company, have also an interest rate swap, which enables us to focus on the operations and is providing us some hedge towards the interest rate fluctuations. Our interest rate swap is EUR 10 million, and that has took effect on last year, end of June. Handing over to Mikko.

Thank you, Ari. So although the start of the year was a positive one still a fact is that we have to continue working on the basic fundamentals to make sure that we are more successful in the future. That has been said in the past, we focus strongly on both. And this growth comes through our active participation with our distributors as well as selected direct presence in the market. We have to focus on those applications and segments where we win on performance and reliability. And especially in this type of circumstances where we're living in the geopolitical sector at the moment and where we see the tungsten prices increasing tremendously over the past 6 months, it's clear that we have to focus on pricing knowledge. We have to focus to find ways how to mitigate the price increase and territories that are involved in the daily business that we are running. All in all, I'm a strong believer in the fact that with a strong face-to-face presence in the market with actively engaging with our distributors, we will be able to find ways how to improve the performance also in the coming quarters but that work is something that needs to continue from our side day after day. Now looking forward, we keep our guidance as has been informed earlier. So we expect that our net sales will increase and our comparable EBIT in profitability will improve compared to 2025. And Ari the questions.

Yes. That was all. Thank you. And now it's the time for questions and first, are there questions online. Okay. That then will take the questions from the chat functionality. There are a few questions from Aker Purisima. The first question, orders received increased nicely but we're focused more on the project side, the geotechnical. How do you see the project market for the rest of the year?

Yes. If we look at the current activity that we see in the Nordic markets. We do still expect that the business will develop positively during the latter part of the year. We see that there are a number of tenders at the moment in the market, and that gives us confidence in it that we sort of foresee that there will be positive development during the latter half of the year.

Niotan the next question. Then how about the more continuous business tophammer, down the whole side? How have sales effort progressed?

Yes. I guess we could sort of see the positive development with the sales efforts when we see that our numbers are trending in a positive way. So the fact is that we have plenty of work to do to improve our performance in the in the markets where we operate so that we can get the growth in the other SBUs also to be happening quarter-on-quarter. But that work continues to be done on the daily level in each of the entities and with all the distributors that we are supporting in their markets. And let's hope that we see better performance in the coming quarters with those segments.

Continuing on that one, in top time orders and revenue decreased compared to comparison period. What is the main hurdle of top hammer at the moment?

Yes. I guess it's a sort of it's there's no single sort of course that would explain the fall on our side on that side. It's actually, when you look at the top 10 development over a longer period, you can see that it has been a sort of sliding trend for of course, the market dynamics have changed a lot during the past years, competition has increased tremendously in the top hammer segment. And that, of course, is having an impact on it. The other thing is that although a certain portion of the business is a sort of big turn type of business where revenue can be generated on a relatively short sort of time manufactories, that's still with the larger contract, it takes quite a while to come to that state that you able to prove your product performance and the value that it brings compared to the current suppliers. So in that sense, it's for us, where we stand at the moment with that business, it means for us that we have to continue that active sales and promotion work in the markets to ensure that we get that value adding proven to the customers and they are able to divert contracting to our points.

Thank you, Mikko. The next question profitability developed strongly. How much of this was due to the sales mix is the largest share of geo and can you elaborate a bit how much exchange rate support EBIT in Q1? If I'll take the specific now first, exchange rate supported so we are talking about a few hundred thousand impact positive impact in Q1. And when it comes to the profitability, of sales mix. We had the health margins across all the SBUs, and we need to work continuously that all the SBUs have healthy margins, especially in this situation where we have a high inflationary pressure coming from the especially from the tons there. Then the next question, thanks to Mace as a challenge for the time being. How successful have you been mitigating the effect. Well, if I continue, I would say that in Q1, we have been still successful and been kind of very we have been capable of ensuring that we have a healthy margins in all our SBUs. But that needs to continue in coming quarters, especially where we have seen that the Tungsten price has also continued to increase still during Q2. And it might continue still in the latter part of the year, but that remains to be seen. That was the last question in the chat Yes. So on our behalf, thank you, everyone. Okay. There's 1 more sorry. Have you seen any effects from the Middle East situation.

Yes, yes, we have actually seen during the recent sort of weeks, we've seen, especially in certain Asian countries they are clearly affected by the shortage of fuel this problem is included to certain specific countries in the Asian region but are not having a great impact on our business. But that's pretty much the only market where we until now sort of seen a clear impact of the Middle East situation affecting the business environment.

Are there any further questions not then thank you for participating in our Q1 result review thank you.