Earnings call transcript: Cambi ASA Q3 2025 sees revenue drop, order intake surges

Cambi ASA reported its financial results for the third quarter of 2025, showing a mixed performance. The company experienced a decline in revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) compared to the same period last year. However, a significant increase in order intake highlights strong future demand. The stock price saw a slight decline of 1.16% following the announcement.

Key Takeaways

• Cambi’s Q3 2025 revenue decreased to NOK 257 million, down from NOK 277 million in Q3 2024.
• EBITDA fell by 39% year-over-year to NOK 42 million.
• Order intake surged to NOK 422 million, a substantial increase from NOK 117 million in the previous year.
• The company introduced innovative products, such as the Model E thermal hydrolysis system.

Company Performance

Cambi ASA faced challenges in the third quarter of 2025, with revenue and EBITDA both declining compared to the previous year. Despite these setbacks, the company’s order intake reached a new high, suggesting strong demand for its thermal hydrolysis technology. The company’s strategic focus on expanding its global footprint and enhancing its technological offerings appears to be paying off, as evidenced by the increased order backlog of NOK 1.1 billion.

Financial Highlights

• Revenue: NOK 257 million, down from NOK 277 million in Q3 2024.
• EBITDA: NOK 42 million, a 39% decrease from NOK 68 million in the previous year.
• Gross Margin: 49%, down from 57% in the previous year.
• Order Intake: NOK 422 million, up significantly from NOK 117 million in Q3 2024.
• Cash and Cash Equivalents: NOK 224 million.

Market Reaction

Following the earnings announcement, Cambi ASA’s stock price decreased by 1.16%, reflecting investor concerns over the company’s declining revenue and EBITDA. The stock is currently trading near its 52-week low of NOK 13.5, with a recent close at NOK 17.3. The market’s reaction suggests a cautious outlook, despite the positive developments in order intake and product innovation.

Outlook & Guidance

Cambi ASA expects operating profit in 2026 to be lower than in 2025, as the company continues to focus on global expansion and technological development. The company plans to leverage its "locals by locals" strategy to drive growth and explore synergistic opportunities through targeted acquisitions.

Executive Commentary

CEO Per Lillebø emphasized the company’s growth ambitions, stating, "We want to grow and we need to grow." He also highlighted the challenges of market perception, noting, "Experience shows that the market sometimes needs to see competing solutions fail before understanding the risks involved." Lillebø reiterated Cambi’s position as a niche, specialized company with international operations.

Risks and Challenges

• Declining revenue and EBITDA could impact investor confidence and financial stability.
• The company’s reliance on thermal hydrolysis technology may face competition from alternative solutions like thermophilic digestion.
• Macroeconomic pressures and regulatory changes in key markets could affect future performance.
• Supply chain disruptions and cost stabilization efforts may pose operational challenges.

Q&A

During the earnings call, analysts inquired about the payback periods for wastewater treatment plants, which range from 4 to 10 years. The discussion also covered Cambi’s strategic focus on becoming a global company and the potential for synergistic growth through acquisitions. The company’s approach to working capital management, particularly through early milestone payments, was also addressed.

Full transcript - Cambi ASA (CAMBI) Q3 2025:

Dragos Talvescu, Senior Corporate Relations Manager, Cambi: Good morning and welcome to Cambi’s third quarter 2025 results webcast. I am Dragos Talvescu, Senior Corporate Relations Manager. To make our communication clearer and more efficient, Cambi has, starting with this quarter, combined the report and presentation into a single document. During the upcoming half hour or so, our CEO Per Lillebø and CFO Mats Tristan Tjemsland will share key highlights from the quarter, including operational achievements, financial performance, and recent developments. After the remarks we will take questions. You can submit these at any time by scanning the QR code displayed on your screen. We aim to address all questions before the session closes. Please note that today’s presentation may include forward-looking statements based on current expectations and assumptions. Actual outcomes may differ due to risks and uncertainties. With that I am pleased to hand over to Cambi CEO Per Lillebø.

Per Lillebø, CEO, Cambi: Good morning and welcome to Cambi’s presentation of our third quarter results. Revenue for the quarter was NOK 257 million, compared to NOK 277 million in the same period last year. Cambi’s investment in organizational capabilities is now for the most part completed and cost levels have stabilized. EBITDA ended at NOK 42 million, 39% lower than last year’s NOK 68 million. In the third quarter Cambi made progress on more than 10 construction projects. Delivering on client commitments continued to be a top priority. I will get back to the operational review later. Order intake increased to NOK 422 million, bringing order backlog again above NOK 1 billion. The increase was driven by Groen Vex winning a major contract and by the acquisition of CNP Cycles in mid August. I will get back to both shortly.

A positive operating cash flow, as anticipated before the summer, supported the board’s decision to declare an additional dividend of NOK 0.45 per share in accordance with earlier communication. Mats will cover the financial details in his part of the presentation, but first let me give you a brief overview of our operations in the third quarter. More than half of our order intake in this quarter comes from a new multi-year contract awarded to Groen Vex by Circular Distiller, a consortium of municipalities along the Oslo Fjord. The agreement covers the transport, treatment, and management of biosolids. Deliveries will start in 2026 and run for six years with the option for two one-year extensions. Treatment will take place at the new Krogstad Sludge Treatment Center in Lunner near Oslo.

The facility is equipped with Cambi’s first energy efficient Model E thermal hydrolysis system, which is currently ramping up with 30% lower energy consumption than conventional THP systems and a high quality biosolids output. The new facility gives NRVA the capacity to collaborate with Groen Vex in treating sludge from other municipalities. Apart from this, there were no other contracts exceeding the NOK 15 million threshold for stock market announcements, only smaller variation orders related to ongoing projects. The technology segment maintained a high activity level through the third quarter. Our manufacturing and installation teams worked to tight schedules and several projects reached key milestones. In Hong Kong, commissioning was successfully completed. We also made good commissioning progress in Antwerp, Belgium, where the first of its kind Model P THP system is advancing according to plan. Model P is our new pumpless system designed to achieve high dewatering performance.

Model P comes in a configuration where the THP process is installed after the digestion step, also termed solid stream. The ongoing projects in Singapore, Lviv, and Fredrikstad continued through the installation phase. In Safi, all equipment is now in place with commissioning to follow once the client site is ready. Meanwhile, the THP systems for our project in Oslo, for VEAS, and in Honolulu have moved from engineering to manufacturing, and finally engineering work continues on the projects in Palma de Mallorca, Santiago de Compostela, and Mumbai. This map gives an overview of our ongoing work around the world, highlighting the scale of coordination required. Cambi’s teams are managing projects across 22 time zones, from Honolulu in Hawaii all the way to Wellington in New Zealand. The global spread shows the strength of Cambi’s project management and our ability to deliver high quality wherever we operate.

I’d also like to note that the Beersheva project in Israel remains on hold. We don’t expect further progress there until 2028, so we’ll remove it from our quarterly updates for now and bring it back once activities resume. As announced in mid August and presented in our half year report, Cambi has acquired a majority stake in CNP Cycles, based near Frankfurt in Germany. CNP brings recognized expertise in nutrient recovery and sludge treatment technologies. These complement Cambi’s THP offering and are increasingly relevant in markets that are moving, for example towards phosphorus recovery. Cooperation has started and the teams are working together. We have already identified joint projects with potential for increased sales from our combined product portfolio. This acquisition strengthens Cambi’s position in Germany and further enhances our growth potential in Europe and beyond. In the services business, activity was also high throughout the quarter.

There was sustained demand for spare parts and several THP sites carried out their scheduled annual maintenance shutdowns. Cambi also delivered a small upgrade to the process gas cooler at the THP system operated by Thames Water. At the Crossness Sewage Treatment Works in London, our upgrades team completed engineering for a complex optimization project at the ageing THP system in Aberdeen and delivered a feasibility study for a comprehensive sludge line upgrade at the THP site. In continental Europe, safety is always a top priority for Cambi. In the third quarter, unfortunately we had one reportable accident at our site in Congleton, a leg calf injury. Fortunately there were no lasting injuries. The previous reportable incident was in the first quarter of 2022. Near misses, minor incidents and reportable accidents are all carefully reviewed so we can learn, improve training and prevent similar events in the future.

Looking ahead, Cambi continues to develop new, larger upgrade opportunities, all focused on improving efficiency, reliability and long term performance for our clients. Turning to Groen Vex, operations remained stable and all contracts were executed as planned. Bulk soil sales reached 58,000 tonnes compared with 81,000 tonnes in the same quarter last year. Year to date volumes are 18% below last year’s record, but still above the level seen in 2023. Following the closure of soil packaging operations at the end of the second quarter, Groen Vex has continued to simplify its operations and improve efficiency across sites. These steps are part of our focus on profitable growth in bulk soil and biosolids handling. We have not yet managed to divest the packaging facility. We thought we had a close of concluding a deal, but unfortunately it will take longer than originally anticipated.

The process continues towards finding a buyer without disturbing daily operations. Yesterday afternoon, in line with the authorization received and at the annual general meeting in May, the Board of Directors approved an additional dividend of NOK 0.45 per share, bringing total distributions this year to NOK 0.75 per share, or around 80% of 2024 profit. I would like to take a moment now and again explain how we work to turn project opportunities into contracts. We see continued interest in Cambi’s thermal hydrolysis technology as more utilities are recognizing our value proposition and reaching out to learn how it can fit into their long term plans. Competition from other THP suppliers remains limited. Most alternatives are different treatment methods or new and unproven solutions selling themselves with big claims. Competition of this kind has some impact on Cambi’s market position.

Experience shows that the market sometimes needs to see competing solutions fail before understanding the risks involved. When that happens, utilities will face the long term costs, technically, environmentally, and financially. The project opportunity pipeline has grown in the past couple of years, supported by investments in our commercial and marketing teams. Most of the increase has been in the early stage category where we work with utilities and consultants to build the business case and ensure our solutions are properly evaluated before a public tender. It takes time, but it is essential for long term success. The larger number of early stage projects also reflects Cambi’s wider geographic reach. In markets where our technology is already established, less early engagement is needed, which reduces the workload in business development projects in later stages, meaning design, procurement, planning, or negotiations can still take years to reach.

Contract signing. Public tenders are sometimes delayed or restructured. Others move faster, for example when the buyer is a private company, when a client already operates a Cambi plant and is satisfied, or even regulatory or financial drivers accelerate investment. Since the end of 2020, Cambi has signed more than 20 new THP contracts, while the number of developed stage projects has increased by nearly 30 to about 100. This indicates a larger pipeline of opportunities that supports long term growth. Looking ahead, near term performance continues to be shaped by exchange rates, tariffs, and geopolitical uncertainty. The 10% base tariff on U.K. origin products to the U.S. remains in place. Cambi covers the cost at the border and cooperates with the customers to recover the tariff fees under existing contractual terms. In Europe, regulatory developments continue to support demand for Cambi’s technologies.

The new Urban Wastewater Directive, energy neutrality and phosphorus recovery requirements are driving investments in advanced treatment solutions. In the U.K., project development under the AMP8 investment cycle, which runs until 2030, makes progress. We expect contracts to be awarded throughout the investment period. Cambi’s continued development will require us to evolve from being an international company into a truly global one with stronger local presence in selected markets. We have been developing this capability through establishments in France, Germany, India and Saudi Arabia. Experience from successful markets such as the U.K., the U.S. and Norway shows that local presence is a key success factor. The order backlog provides good visibility on activity levels into 2026. However, its distribution illustrates the need to sign new contracts based on current visibility. Operating profit in 2026 will be lower than in 2025. However, we maintain our long term growth expectations.

With that, I hand over to Mats, who will take you through Cambi’s financial performance in the third quarter. Thank you.

Mats Tristan Tjemsland, CFO, Cambi: Good morning to you all. I’ll now present our financials for the third quarter of 2025 in more detail. First, some of the financial highlights for the quarter. We report sound financial performance in the third quarter. It is primarily driven by good progress across our portfolio of ongoing construction contracts. As Per mentioned earlier, we delivered a healthy operating cash flow in the third quarter which is a result of several milestone payments received from clients. As anticipated, order intake was NOK 422 million, marking a sharp increase from previous quarters, mainly driven by the award for Groen Vex and the inclusion of the backlog of CNP Cycles. As a result, the order backlog grew to NOK 1.1 billion at the end of the quarter. The Board has also approved an additional dividend of NOK 0.45 per share following the achievement of key project milestones.

The ex date for the dividend is the 10th of November. With the additional dividend Cambi will have paid NOK 0.75 per share in 2025. This is equivalent to around 80% of the net result in 2024 and in line with our communication made in the Q4 2020. Let’s take a look at the consolidated income statement. Revenue for the quarter was recorded at NOK 257 million compared to NOK 277 million in the same quarter last year driven by progress across the global project portfolio. In Q3 we report a gross margin of 49% which is lower than 57% reported last year but in line with previous quarters. The gross margin was influenced by the revenue mix which I will touch upon shortly. In addition, currency movements impacted gross margins in the quarter.

A weaker NOK against EUR and GBP increased the cost of sales combined with a weaker USD towards NOK which reduced margins on US projects. However, the negative FX impact on the US projects must be seen in light with the USD to EUR hedge Cambi made earlier in 2023 which I also will comment on more in a bit. Operating expenses are reported at NOK 85 million which is down from NOK 90 million a year ago and lower compared to previous quarters. With organizational investments in sales, marketing, innovation and project execution being behind us for now and a reduction in OpEx from having discontinued soil retail operations, we expect to see a stabilization of operating expenses around the quarterly run rate levels reported this year.

As a result, EBITDA came in at NOK 42 million in Q3, which is lower than the same quarter last year and the previous quarter. Depreciation and amortization expenses are reported at a lower level this quarter compared to previous quarters. The reduction is a result of the previously acquired IP portfolio being fully amortized during Q2, reducing run rate levels in Q3, but the amortization of goodwill from the transaction with CNP increases the run rate. Again, Q3 includes one month of amortization of goodwill from the CNP transaction, meaning that the normal run rate will be fully reflected in Q4. Immaterial net financial items are reported this quarter. Last quarter, as a part of the NOK 35 million, there was reported an unrealized currency gain of NOK 24 million. This quarter, NOK 8 million are now realized and NOK 17 million are unrealized.

As a reminder, during Q1 we entered into forward contracts to sell USD and buy EUR to hedge a large portion of our net USD exposure from ongoing US projects. I will now shed some more light on the financial performance of the technology segment. Revenue for the quarter amounted to NOK 183 million, which is a reduction from the same period last year and from the previous quarter. Many construction projects saw progress in the third quarter and our manufacturing team in the U.K. and our project teams were busy in delivering on ongoing projects. At the end of the third quarter there were 15 ongoing construction projects, the same as one year earlier. The gross margin came in at 55% in Q3, down from 62% in the same quarter last year. It is a result of mix of projects and FX effects.

The FX effects I have already commented on. The revenue mix this quarter is influenced by high activity on projects where Cambi has a wide delivery scope, which on average has a lower margin than core THP technology sales. Operating expenses were reported at NOK 66 million, slightly lower than in the same period last year. The investments made in growing our organizational capabilities are behind us for now. EBITDA came in at NOK 35 million in Q3, down from NOK 55 million in the same quarter last year and in line with the average for Q1 and Q2 this year. As mentioned, depreciation and amortization expenses in Q3 reflect the amortization of goodwill from the CNP Cycles transaction in the month of September.

Now let’s dive into the financials for the solutions segment in Q3. We report revenues of NOK 73 million, down from NOK 81 million in the same quarter last year and down from the previous quarter. Gross margins were reported at 35%, down from 44% in the same quarter last year and the previous quarter. As expected for the season, there was a high activity level for both subsegments in the quarter. The services subsegment saw high spare parts sales and a lot of activity at many THP sites where the team was busy supporting clients with various services such as annual shutdowns and other planned maintenance compared to the same quarter last year. The activity level within upgrades remains low this quarter, but our team delivered several smaller upgrades and is laying the groundwork for larger upgrade projects in the future.

The current lack of large upgrade projects has a negative impact on the reported gross margins since upgrade projects typically have gross margins in line with levels seen in a technology segment. Groen Vex had a busy quarter as well and is delivering on biosolids and garden waste handling contracts as planned. SoilBulk sales were lower than the same quarter last year following the discontinued operations in the retail business area. The payroll and OpEx run rate is lower this quarter compared to the same quarter last year. The OpEx run rate related to the soil bagging facility is currently around NOK 3.5 million per year and we expect this run rate to be reduced to around NOK 2.5 million from 2026. Groen Vex continues to implement measures aimed at further lowering operating expenses and reestablishing profitability.

As Per commented on, the divestment process for a soil bagging facility is ongoing and an update will be communicated to the market in due course. Operational expenses were NOK 19 million, slightly down from the same quarter last year and as a result EBITDA was reported at NOK 7 million, also lower than the same quarter last year. Let’s take a look at the order intake development. As a reminder, the order intake also includes revenue generated outside the backlog such as smaller variation orders, spare parts maintenance, and bulk soil sales. Order intake in the quarter was NOK 422 million, up from NOK 117 million in the same quarter last year. The order intake in the technology segment was NOK 135 million in Q3, reflecting the inclusion of the backlog from CNP Cycles of NOK 119 million.

In addition, for the ongoing construction projects where Cambi has a main contractor scope, we have received several variation orders below the market announcement threshold contributing to the order intake reported in the quarter. The reported order intake of NOK 288 million in solutions includes the awarded major biosolids handling contract for Groen Vex. In addition, the reported order intake includes bulk soil sales also at the end of the quarter. The closing NOK exchange rate compared to the second quarter caused a slight negative order backlog currency impact of NOK 7 million reflected in the order intake and backlog for the technology segment. Speaking about the backlog, let’s take a look at the backlog development. The backlog is an important indicator of the activity level for Cambi going forward.

In Q3 it was reported at NOK 1.1 billion, down from NOK 1.3 billion in the same time last year, but up from the previous quarter driven by the order intake mentioned. The last time the backlog saw an increase was in Q1 2024. We had 15 ongoing construction projects at the end of the quarter, which is at the same level as one year earlier but slightly down from recent quarters. The technology backlog was NOK 646 million in Q3, down from NOK 1.1 billion in the same quarter last year. As Per mentioned in his part of the presentation, this illustrates the need to secure new contracts in the near future. The reported Solutions segment backlog in Q3 mostly includes the remaining value of biosolids and garden waste handling contracts for Groen Vex, including extension options. We include options because they historically always have been exercised.

As always, we guide on our expectation on the backlog distribution. We expect to convert around 20% of the backlog during Q4 2025. Next year we expect to convert 40% of the backlog and the remaining is expected to be converted in 2027 and beyond. To summarize, the backlog as of Q3 provides good activity coverage for the rest of 2025 in addition to parts of 2026. As we have commented, given the current outlook, operating profit for 2026 is expected to be lower than 2025. However, we are confident in our long term growth. On the right we see that around half of the backlog is in NOK while one-third is in EUR and the remaining is in USD. The exposure to FX poses a risk to our financial reporting in NOK due to potential exchange rate fluctuations.

Now let’s move over to the balance sheet at the end of Q3. Intangible assets now includes goodwill from the transaction with CNP Cycles. The goodwill will be amortized over a period of seven years. Accounts receivables stood at a high NOK 302 million at the end of Q3, up from NOK 121 million in the same quarter last year and also higher than last quarter. Earned but not invoiced project revenue was reported at NOK 126 million and has seen a continued net reduction from the previous quarters. Levels are now significantly lower than the same quarter last year. Cash and cash equivalents were reported at NOK 224 million in Q3, up from the same quarter last year and up from the previous quarter. The increase in cash is mainly from receiving milestone payments from ongoing construction contracts.

In line with our previous communication, accrued project cost including contingency provisions and guarantees was reported at NOK 120 million, which is down from the previous quarter but in line with the same quarter last year. Cambi maintains a robust balance sheet with no debt. Now let’s briefly take a look at the cash flow statement. Cambi reports healthy operating cash flow generation of NOK 81 million in Q3 driven by the receipt of several milestone payments from customers. As we continue to deliver equipment to client sites, we expect to continue to receive several milestone payments over the next quarters. Cash flow from investments is mainly related to the acquisition of the majority stake in CNP Cycles during the quarter.

Per Lillebø, CEO, Cambi: Before.

Mats Tristan Tjemsland, CFO, Cambi: The Q and A. A quick update on the announced additional dividend. As a reminder, the Board was authorized to approve additional dividends of up to NOK 0.70 per share at the Annual General Meeting in May. The Board has approved an additional dividend of NOK 0.45 per share. The ex date for the dividend will be 10th of November with the ordinary dividend of NOK 0.30 plus the additional dividend of NOK 0.45. The total dividends are NOK 0.75 per share or NOK 120 million in total. This is around the top of the range from our previous communication in the Q4 and full year 2024 report where we guided that dividends were expected around 60-80% of net profit in 2024.

Although the board still holds an authorization to approve additional dividends of NOK 0.25, it is unlikely that this will be exercised, and with this we are ready to move over to the Q and A session. Have we received any questions?

Dragos Talvescu, Senior Corporate Relations Manager, Cambi: Dragos, yes, we have. We have a few questions already. The QR code is still visible under the main screen on our website where we stream. I will start with a question, maybe for Per. Perhaps could you please share some background on why your production is located in Congleton and what factors drove that decision? When was it made?

Per Lillebø, CEO, Cambi: U.K. market has been our most important market and the company that is now our workshop used to be our main sub supplier for most of the projects that we built in the U.K. The company ended up in financial distress in 2010 and we decided to acquire the workshop and we have since developed it into our main workshop. It has been steadily developed and that is the reason why it is located close to Manchester in Congleton. It used to be our former sub supplier.

Dragos Talvescu, Senior Corporate Relations Manager, Cambi: Thank you. Per, another question also for you. I’d say from your experience, how do wastewater treatment plants typically evaluate payback when investing in Cambi’s technology?

Per Lillebø, CEO, Cambi: Yeah, let me first say that wastewater treatment plants do not just look at payback times, they look at a lot of factors that decide on their decisions. It could be simply to be able to meet regulatory requirements with regard to, could be odor issues, could be transportation volumes through a city, it could be biogas requirements, etc. There are many factors that influence their decisions. When we analyze a project, we always look at the financials and whether it is a good financial advice for the customer to buy and install our technology. What kind of payback times are we talking about then? That could vary. We have examples where they have actually saved money by buying and installing Cambi because the reduced need for digestive capacity made it actually an instant payback.

There are other examples where you talk about payback times from all the way down to three years to six, seven, eight, nine, ten years. I mean, I think it’s from a financial perspective even up to 10 years is fully acceptable on a municipal, for a municipal government customer. Normally, I would say four, five, six years, that would be the norm.

Dragos Talvescu, Senior Corporate Relations Manager, Cambi: Thank you. Question about competition maybe also to be addressed by you, Per. Who are Cambi’s main competitors today? Both thermal hydrolysis technologies and also alternatives.

Per Lillebø, CEO, Cambi: When it comes to our own technology, thermal hydrolysis, we do not have clear competition. At least the small competition that we met is very, very minor. Companies that are still in their very early stage and whether they will be able to develop into a serious competitor, difficult to say. We look upon the continuous technology development that we are doing in Cambi. It will be really hard for competition to follow. If I try to describe the competitive landscape, it is more like doing nothing. If I should pick one main competition to Cambi, it would be thermophilic digestion. That is digestion at higher temperature levels, 55 degrees Celsius. That is mainly what we have been met with in the market. Incineration, drying, pyrolysis. We do not look upon that as a competing technology.

They are more complementary to Cambi. We have several examples where they have their process in front and then they have drying or incineration after our own process. It is thermophilic digestion that we consider as a possible main competitor, if there is a competitor. We always analyze our competitiveness on every project before we dive into and decide to go for a project. Normally we do not see that if a rational decision maker should go for Cambi, that is what we see again and again.

Dragos Talvescu, Senior Corporate Relations Manager, Cambi: Thank you. One more to you, Per. Looking ahead, where would you like Cambi to be 10 years from now? Strategically, financially and operationally, it is important.

Per Lillebø, CEO, Cambi: For Cambi to grow. I mean, we are still a niche company, we are a specialized company, but we are working internationally. We have started to look at ourselves more and more as a global company over the last years. The difference between an international company and a global company is that a global company needs to work like an Indian in India, like an American in America, an English in England. If I look back at our successes, the markets where we have been most successful, for example, in the U.K. and in the U.S. and of course in Norway, we are nationals. Sometimes we have started to use the expression locals by locals. I think this is relatively easy to understand for most people. I mean, it is difficult to succeed in Germany without not being in German.

You need to be German, you need to speak the local language in order to be fully successful. This is going to color our strategy going forward. We will try to be more and more a global company in the markets where we are focused to be, where we are investing, and the markets where we have been investing over the last years, that is, for example, in France, we are building up a small organization, Saudi Arabia, India, and now Germany with the acquisition of CNP Cycles. Another development trait that I see going forward is that we may try to widen our scope, to take a bigger responsibility, to take a bigger scope on every opportunity that we meet.

This means that we could include, for example, CNP’s products into our own product portfolio and they will help sell our technologies in their markets and towards their customers. We already see that this could be a very synergistic way of developing Cambi by careful acquisitions if we see opportunities for that. I think CNP acquisition is a good example where we both can cross sell each other’s product. They sell our products in Germany and in other markets where they are active and we sell their products. We see actually already now very interesting opportunities for both companies going forward. I hope this is a good question of where we are. I want to emphasize that growth is important to Cambi. We want to grow and we need to grow. That is my answer to your very good question.

Dragos Talvescu, Senior Corporate Relations Manager, Cambi: Thank you, Per. We now have a couple of more questions that I think are better addressed to Mats. Before that, I would like to remind everyone that if you submit your questions using the QR code, we get them instantly and we will take it before we close today’s session. The first question to you, Mats, I understand your working capital situation is in part determined by forces out of your control, such as site readiness, delays, holding up milestone payments. Could you speak to how management thinks about working capital situation and what steps you may take to improve it?

Per Lillebø, CEO, Cambi: Sure.

Mats Tristan Tjemsland, CFO, Cambi: I mean, what we’re doing, in short, to improve it is to make sure we receive payments earlier in the projects and of course that we define payment triggers that are under our control. I mean that’s what we’re doing in terms of improving the situation, maybe how we’re thinking about working capital. If we take a step back and talk about the cash. The cash approach, the norm today in the market is that we receive milestone payments throughout the project execution and this varies from client to client, but we always receive enough cash to cover our engineering and our manufacturing. This is the norm in the market. This means on the cash level we are managing quite well. There is always a negotiation in a project related to the triggers and when they come.

When it comes to the working capital in our P and L and balance sheet, I would say it’s influenced by our revenue recognition approach where we and I talked about this in the Q1 2025 report talking about revenue recognition where we on average I would say recognize revenue quicker than we receive the cash payments. That’s also influencing I think a little bit the question about working capital. In totality we are satisfied with the working capital situation for the company.

Dragos Talvescu, Senior Corporate Relations Manager, Cambi: Thank you, Mats. I’ll move on to the next question. Maybe either of you can answer if you would like to. Could you please elaborate on order intake or lack of order intake? Considering new EU regulation and the trends that we are talking about that are moving in our direction.

Per Lillebø, CEO, Cambi: Where the new regulations are especially in our favor is within the EU. Of course we have the AMP8 cycle in the U.K., which is a five-year program that is obviously to our advantage. That is moving ahead more or less as planned, but difficult to say when it will, when contracts hopefully will be signed. In Europe, with energy neutrality and new regulations, etc., they should all favor Cambi. We do see more interest from the European market, but it is also difficult to say because of the time frame for the introduction of all these regulations. It is a longer-term perspective. We have to see it, but it works definitely in our favor. That is the comments that I would like to give now. Thank you.

Dragos Talvescu, Senior Corporate Relations Manager, Cambi: I have one last question for now, and that is a concrete question about the commercial benefits of the CNP acquisition. When do we think they will start to bear fruit, both in terms of German market access but also of cross-selling CNP products?

Per Lillebø, CEO, Cambi: I wish I could be 100% clear on that, but obviously I cannot promise anything. What I can say is the two organizations are already working closely together, and when we have an opportunity or where we are involved in a project, wherever it is in the world, we will always try to promote their additional products for the sludge line or for the sludge treatment part of the entire project. It would be very strange if we did not succeed anywhere in the world with cross selling our each other products. One of the products that they have is, for example, digestate mixing, which we are now always trying to offer together with our own system. We also see phosphorus recovery. That is an interesting technology that CNP has access to.

There is an increasing demand for these solutions both in actuality and even in our home market Norway, but we see it also in the U.K. because phosphorus is very often the limiting factor when you are spreading sludge on land, for example. If you have technologies that can remove or reduce the content of phosphorus in the sludge, it will increase the availability of land, what we call a land bank around the wastewater treatment plant. I think the CNP acquisition is a really good example of value creation acquisition that Cambi did.

Dragos Talvescu, Senior Corporate Relations Manager, Cambi: Thank you Per. That brings today’s presentation and Q and A session to a close. A recording and transcript will be published later today on Cambi’s Investor Portal. Thank you for your time and your questions and continued interest in Cambi. For any follow up inquiries, feel free please to reach out. We wish you a pleasant day. Goodbye.

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