Kongsberg Automotive New (KGAUF) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

So welcome to everyone participating here at this live event at Arctic. And of course, welcome also to those participating online. Sorry for the technical difficulties that we had here. I want to thank Arctic as well for allowing us to have this call at their facilities. So we jump straight into the key points for the quarter. We have had good debit growth and significant cash flow improvement in the quarter in spite of a challenging market. As most other players in the automotive industry, Kongsberg Automotive has also faced a challenging situation with the market. As a consequence, our revenues are down around 10% compared to the third quarter last year. So we had €162.9 billion in turnover in Q3 versus €181.6 million last year. And this is a direct result of the market situation in the global vehicle industry. The largest impact is in the market in North America due to the ongoing tariff situation there that has caused higher costs, market uncertainties and therefore also lower demand. In spite of those lower revenues, we see an improved EBIT of €4.9 million in the quarter. This is up from €1.1 million in the same quarter last year, which is a solid improvement from both previous quarters and also from Q3 last year. On cash flow, we see also a positive trend. We delivered €6.6 million in positive cash flow, which is 11.8 million improvement from Q3 last year. Cost reductions, we are moving forward with our programs according to schedule. On tariffs, we have been able to mitigate the cost this quarter and the net impact of tariff cost this quarter is close to zero. Then we have some challenges on warranties, and we will get back to that later in the presentation. Here we take a closer look at the financials, comparing those in the quarter versus the last four quart...