Kongsberg Automotive New (KGAUF) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

We are back here at Arctic Securities in Oslo and we are here together with our president and CEO Trond Fiskum and CFO Erik Magelsen. We are joined by participants joining us on the webcast as well as physically here in Oslo. On the screen, you see today's agenda and as always, we will conclude today's presentation with a Q&A session. If you're joining us here physically, you can raise your hand and we will be walking around with a microphone. And if you're joining us through the webcast, you can use that tool to raise your question. So with that, I will hand the word over to our president and CEO, Trond Fiske. Good morning to everyone. We start with Q4 highlights. Overall we had a good quarter with strong earnings improvements and solid cash generation in a market that is stabilizing. Our Q4 revenues reached 167 million euros compared with 185 million euros in Q4 last year. This is 9.6 percent down from Q4 2024. However, it's up 2.8% compared with Q3. So this reflects that the market conditions are stabilizing, which is positive. Regarding profitability, we delivered a strong EBIT improvement when we compared with Q4 last year. We have a Q4 EBIT of €9.4 million and an EBIT margin of €5.6 million. This is compared with €1.1 million and an EBIT margin of €0.6 million in the same quarter last year. It is an improvement that is primarily driven by structural cost reductions. We have some reduced warranty accruals and it is also supported by one-time positive effects of 4.9 million euro that we'll come back to. Cash flow development was also solid and on an improving trend. Operating cash flow improved to 11.5 million euro up from 4.2 million euro in the same quarter last year. The risk of certain warranty liabilities, they remain. They are well identified and being very...