Earnings call transcript: Scandinavian Astor Q2 2025 sees stock surge

Scandinavian Astor Group (ASTOR) reported its Q2 2025 earnings, showcasing a robust financial performance with significant year-over-year growth in net sales and EBITDA. The company’s stock rose by 4.98%, reflecting investor optimism fueled by strong results and strategic initiatives. According to InvestingPro data, ASTOR has delivered an impressive 210.18% return year-to-date, significantly outperforming broader market indices. The company remained profitable for the third consecutive quarter and announced ambitious plans for expansion and innovation. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value, with analysts setting price targets ranging from $3.76 to $5.85.

Key Takeaways

• Net sales increased by 77% year-over-year.
• EBITDA growth is nearing the 15% target on a rolling twelve-month basis.
• Stock price increased by 4.98% following the earnings release.
• Scandinavian Astor is expanding its market and product offerings, including sodium-ion batteries and water-based drones.
• The company is preparing for a potential listing on the NGM regulated market by late 2025.

Company Performance

Scandinavian Astor Group’s Q2 2025 results highlight a strong upward trajectory in its financial and operational metrics. The company reported a 77% increase in net sales compared to the previous year, marking a period of substantial growth. This performance underscores the company’s strategic focus on expanding its market presence and enhancing its product portfolio. InvestingPro analysts forecast continued sales growth of 85% for FY2025, with positive net income expectations. The company has also maintained profitability for the third consecutive quarter, operating with a moderate debt level and a healthy current ratio of 1.4, a significant achievement in the competitive defense and technology sectors.

[Access the comprehensive Pro Research Report for ASTOR, part of InvestingPro’s coverage of 1,400+ top stocks, for deeper insights into the company’s financial health and growth prospects.]

Financial Highlights

• Net sales: Increased by 77% year-over-year.
• EBITDA: Significant growth, approaching a 15% target on a rolling twelve-month basis.
• Projected pro forma net sales of SEK 460 million for 2024.

Outlook & Guidance

Scandinavian Astor Group remains optimistic about its future, expecting a strong finish to 2025. The company anticipates full effects from its 30% stake in Nordic Shield Group as of July 1, 2025, and is considering a full acquisition. The ongoing M&A strategy, bolstered by SEK 450 million in investment capacity, positions the company for continued growth and market expansion.

Executive Commentary

Victor Bergstrom, CFO, highlighted the company’s robust financial position, stating, "We have a big M&A investment firepower here going forward with SEK 450 million in cash." He also emphasized the company’s expanding market presence, noting, "We are now in four countries. Market cap is roughly 2 million Swedish."

Risks and Challenges

• Geopolitical tensions may impact market dynamics and sales.
• Tariff impacts on U.S. sales could affect profitability.
• The complexity of electronic warfare projects may pose operational challenges.
• Potential share dilution concerns among investors.

Q&A

During the earnings call, analysts inquired about the company’s interest in increasing its stake in Nordic Shield Group to over 50%, which was confirmed. Questions also focused on the collaboration with Altris on sodium-ion batteries and the impact of tariffs on U.S. sales. The company addressed concerns about potential share dilution, reassuring investors of its strategic focus on sustainable growth.

Scandinavian Astor Group’s Q2 2025 earnings call highlighted strong financial performance and strategic initiatives, leading to a positive market reaction. The company’s focus on innovation and expansion positions it well for future growth, despite potential challenges in the geopolitical and operational landscape.

Full transcript - Scandinavian Astor Group AB (ASTOR) Q2 2025:

Moderator/Host, Scandinavian Astor Group: With Scandinavian Astor Group on the h one figures which were released this morning. I am about to hand over to Victor Bergstrom, the CFO. Just as an information, after the presentation, this is gonna last around thirty minutes. You have the ability to ask questions. You can do this by either pressing the raise hand, tie hand, and then we will unmute you and you can ask questions.

Or you can type it directly into the q and a box, we will take them one by one. So without further ado, Victor, please go ahead.

Victor Bergstrom, CFO, Scandinavian Astor Group: Thank you. Yes. First of all, I hope you all had a a great summer. And, you know, as a true Swede, I never left the kingdom of Sweden. So you have to bear with me that my, you know, sun sun tan is is as white as my shirt here for forty five minutes, but, hopefully, that will be okay.

You will have some nice numbers to look at, at least. Yes. For those who who don’t know me, you know, my I I’m CFO for for Scandinavian Astor Group here since about two years now, a little more. I’m also one of the of the biggest shareholders in Astor. So Astor in brief here, you see this this picture before and the the numbers are keep getting higher.

And that is, of course, because we are are progressing in in what we do in sales and in m and a. And, you know, pro form a, I will come back more to that later, but our net sales is, you know, it’s about 460,000,000 Swedish in 2024, you know, full year alone. And one of the most important things here, I will come back more to that later also, but and I hope hope hopefully, you will ask questions about this. But but the most important thing here is that now we have a, you know, we have a a m and a or or investment firepower of more than SEK $450,000,000. So so we can definitely be very active in in both the M and A space and and the and the investments we’re looking at to expand the current businesses.

This is very important because in a lot of dialogues we have had, you know, they they ask if do do we have the resources to to make acquisitions and to complete the deal in a quick fashion. And, of course, now we have that. So so this is very important for us, though, I would say. We are now in four countries. Market cap is is is roughly 2,000,000,000 Swedish employees.

We are above 200 now if you include immunity, but not not including Nordic Shield Group here anywhere. And, yeah, the rest of it, you know, by now, I think, locations and shareholder base is is continuing to growing. We’re happy about that to have you onboard. Moving over to the business areas, you know, we we still have the AstroTech, the industry, and Protect. The Protect is the latest one.

I hate hate to leave you hanging here, but AstroX, we you have to bear with me that, you know, hopefully, we it will come in in a not distant future, but it’s not ready yet to to to go into that. And here is a little overview if there are any new new listeners here or viewers. So so if you don’t know us, or this is a neat, you know, overview of what we do. So so we have the as mentioned here, we have the Astro Tech business area and a few pictures on that one. You know, scan the flash of cilium.

We have the Astro industry with with a lot of, you know, sub suppliers to the to the defense industry and to the industry in general. There’s a lot of civilian part of on on their sales as well. And that we have the AstroProtect, which will which now includes Nordic Shield Group and in a not too distant future here, also immunity, we hope there. So so and it’s progressing. I’ll come back to that later on here.

And here are some recent and coming events. So so up in the left hand corner there, you can see us the group. We were present at the Dallo Days. It it’s a big defense exhibition in Copenhagen. And down in the left hand corner here, you can see a new very exciting collaboration we have entered into with Uppsala based battery company called Altris.

And we we were showcasing their batteries at the holidays, and and we will continue to do that on the other exhibitions here we are we are moving to. And, you know, so the amion batteries are are very interesting because they are nontoxic. They are nonflammable. They are made from abundant materials, so they they don’t need the lithium and cobalt and such. So so and it’s also very interesting because it makes a lot of sense from a defense perspective because the cells can be made here in Sweden.

And, you know, it turns out maybe it’s not a great idea to have, you know, Chinese battery cells or or batteries in in military vehicles or energy storage. So we hope that this collaboration can can mean a lot for the future here because there there’s a strong demand to disconnect that link with China, I would say. So very interesting. We will come back to more to that later. And then we have to the right here in the middle, have Nordic Shield Group.

If you know these pictures already, I will come back more to that later also. And now for the first time, master here will where we will be present here at both daily days we last week and then MSPO in in Poland here next week, and after that, DCI in London, UK. So so a lot of exhibitions here to to show more about Astor and what we can do. And hopeful hopefully, of course, that would lead to a lot of new business here in the future. To the right there, we have immunity.

You can see all the different ammunition they produce there to the right. And we have cleared the first hurdle there when we the government said yes to us, new owner of Immunity. We move on. So here are some key takeaways from the second quarter report. So so I made this, you know, simple bullet picture here.

But, you know, some some positives here. I think it was a good quarter both on sales and results. It could have been a little bit higher, but I’m coming coming back to that later. It was good on both operating and free cash flow are still positive, very nice, very good for us and for you shareholders. And it was the third quarter in a row we were profitable on bottom line.

We also posted our record order book by the end of the quarter, and we almost had a record on order intake. But two orders just came in the third quarter instead of the second quarter. So they just came in here July 2025. We tried to get them in quarter two, obviously, but they came in Q3. So you have something to look forward to there.

And as I mentioned, this is very important that we have a big M and A investment possibilities here going forward with this SEK $450,000,000 in cash and possible debt funding for acquisitions. And another thing is that we now have almost reached our 15% EBITDA goal here on an adjusted basis on a rolling twelve months. So we are very happy about that. On the negative side, of course, we had higher cost than anticipated for IFRS reporting. Of course, you reserve for that all year, but it was more costly than we expected, you know, both producing the annual report and and for the first time and and then with the auditors demanding more money.

So so so that that hurt the earnings a little bit. And then we had one off costs. As you know, they they are included in the in the adjusted figures and then some currency effects. So I would say, all in all, you know, all those three top bullets there on the negative, the it affected the result with about three, four million Swedish. And, otherwise, that three, four million, you know, compared to if you look at year over year figures, that that would be, you know, in in affecting the net result positively with three, four million.

So but that’s the way things happen. So so it’s not possible to mitigate everything. And we also had a little bit slight slightly lower sales related to the trade war in during the spring here. And I already touched upon these numbers here, but here they are. You can also find them in the second quarter report here.

But net sales 77% up. The EBITDA and the adjusted EBITDA, they, of course, they are increasing by a couple of 100%. And orders and order book, all healthy. So I will come back to more to that later. But but we’re looking forward for a strong a strong second half of the year here.

So here are our segments in the the performance in the first half of the year. And you can see they are both profitable except for The Us to protect. So the one business there that didn’t perform as strong as we hoped, but they they have a lot of nice order intake now. So that business the protect business area will we expect it to show black figures here in the future. And we also have we also have a nice effect there from our investment in Nordic Shield Group.

So here, mentioned as here, you can see the numbers are starting to we’re getting economies of scale here that we the sales figures coming up a lot, and it means the the results are coming up as well. So we have had a nice three quarters now, and we we we will continue on that. And here, I think it’s good for you to know, to put in perspective also when you look you know, when the analysts look at us or, you know, they look at what kind of companies do we have in our portfolio. And, of course, the pro form a numbers, we can’t we cannot present those. Though those are the numbers, you know, we have those sorts of we have that capacity in Astron, or we we have that number in Astron, but it’s not in in the books, but it’s in the pro form a.

So if you make this, you know, waterfall diagram here and look at if if we would have owned all the businesses, including immunity here that that we currently have have have purchased, we would have had a turnover here or net sales of over SEK $460,000,000 in 2024 alone with the EBIT margin of about 10%. So obviously, there’s a lot of I will come back to that later as well, but there’s a lot of of nice m and a here that that that, you know, is helping the the financial numbers. And here is also a pro form a about how the order book will look. So if we look from left to right here, you can see that we reported SEK $289,000,000. But if you include that, you know, SEK 85,000,000 first and second July, and then the immunity order book that they have with the contract they have with the Latvian military, we are at SEK 600,000,000.

But they also have a extension with the with the Latvian military of 400,000,000, and that would translate into a total order book then of of 1,000,000,000 Swedish. But, of course, we we haven’t we haven’t completed the acquisition yet. We hope to do that in the near future here. But but once we do that and if we extend the the the contract with the Latvian military, hopefully, we will can also negotiate a new one. Obviously, that will mean a lot for our order book going forward.

A little bit more about Nordic Shield Group here. You know, you you have seen we have communicated a lot of orders lately. You They have had the big orders have been communicated here. So we have communicated orders in excess of 100,000,000 in, I think, just in one month time here. And you can see on the left hand there, the the corporate three, they they have, you know, three operating subsidiaries.

And, obviously, they they are a highly profitable defense group. So we are very happy to increase our holding there as we communicated this morning. But they also own property. They own a property in Scotland, Sweden, Bisberg. And they also own a property there where where they produce in Siesiom.

So so we also got some some assets here in in in in the purchase. And here to the right, I made this example as you can see. You know, this is just an example here. So so if they have a turnover of 100 Swedish, they have a net margin of 25%. I would say it’s gonna be maybe 20 to 30%.

We will see that when the numbers come through. But with 30% ownership and and 25% net margin, that means a net profit of 7,500,000.0 Swedish. And that in turn, you know, will be will be reflected in in Astor’s operating profit every quarter. So so we we we see Nordic Shield Group as a as a as a core associate company into Astor, and and it’s it’s getting more and more integrated in Astor. So so we we we will present them as operating profit, and it’s it’s not anything different than Saab does and and anyone else.

So but now with the 36 with the 36% ownership, obviously, that that number will increase. So so this will be a nice, you know, icing on the cake or cherry on the top here going forward in in the Astra accounts every quarter. And so so all the you you can look at the orders we we communicate related to Nordic Shield Group and, you know, make this calculation, and you can understand what sort of operating contribution we will get from them every quarter. And here is a little more about what they do. You know, they make data centers.

They make security doors, for example, security vault doors, for example, for for for for high security, like like, new nuclear facilities. But they what they especially do is is they make these security buildings there to the right in in concrete. And, you know, just last week here, it was released that there there will be a new NATO base in in in shopping, I think it was. And, obviously, a few of these things I would expect need to go there. So there’s a lot of demand we expect just on on the on the domestic market, but, obviously, these things are are required all over Europe.

And they are also in these security rooms or or as you can see down there to the left hand. Moving over to immunity. I think a lot of you have been eager to hear more about our acquisition here in Latvia. And their main business going forward, 90% will be military ammunition. But of course, they can move into civilian ammunition here in the future if they want to also.

But currently, they are just making military ammunition. And they are also making 10% of revenue is expected to be related to 155 millimeter grenades. But we are only making a very small fraction of a piece like that. Another thing is interesting here, and that is that Immunity, they own 50 military bunkers in Latvia of which two is fully developed and leased to the Latvia military. So there’s some nice assets that came into or came with this purchase as well.

So the outlook for the rest of 2025 and beyond. So one of the main things will be the listing here on NGM regulated, the main market there. It’s coming up here later in 2025. Most costs are incurred. It means most costs are taken in the in the income statement.

But but a few or a small piece might come here in the in the in the second half of the year. It’s a process in in late stage, I would say. And we are, you know, very happy with with our collaboration here with MGM. They they are very supportive of our store, and and we hope that we will get a a similar listing here to that that’s built and got when they listed on the MGM market, the main market there in in the central parts of Stockholm there next to Swampen in Swedish. What’s more to come?

This is the last picture, so be ready with some questions. What’s more to come in 2025? We will get a full effect from our 30% in Nordic Shield group as of 07/01/2025 to and hopefully, you know, the the we we will acquire all of these 36%, and it will it will maybe take a month before we know that. But but 36% in we we expect to be owner of in Q4 here. And we also will get full effect from the acquisition of Carbonya.

It’s a $1 100% acquisition of a very strong carbon fiber producer in Malmo, Sweden. So we will get that in the books here from July 1. And also, Ausilion electronic warfare part will start delivering regularly, we expect there. So that will also make a strong contribution here the quarter beginning July 1. And we also expect to complete the acquisition of Immunity, of course.

And and hopefully, we will also be able to communicate more about our collaboration here with the Natrium’s or the sodium ion producer of batteries, Altris, and further M and A, of course. So all in all, if you sum this up, we expect a strong finish here to the year 2025. Thank you. So moving over to questions here.

Moderator/Host, Scandinavian Astor Group: Thank you. As a reminder, if you like to ask questions, you have two options. Put them into the q and a box, and I’ll reach them out. Or you raise your hand, and then I will unmute you. Let’s kick off with the first questions.

Victor Bergstrom, CFO, Scandinavian Astor Group: Yes.

Moderator/Host, Scandinavian Astor Group: What level of margin should we expect on the order book?

Victor Bergstrom, CFO, Scandinavian Astor Group: That’s a good question. I think we cannot communicate that too much. We have the we have the we have our, you know, our goal of 15%. And, of course, we are long term, we are expecting to to show that kind numbers, 15% EBITDA. So so that’s all I can say about that.

Moderator/Host, Scandinavian Astor Group: Okay. Perfect. Next one is Shield group paid for it.

Victor Bergstrom, CFO, Scandinavian Astor Group: Oh, sorry, Chris. I think I lost you a little bit there.

Moderator/Host, Scandinavian Astor Group: Could you remind everyone on the matter that you paid for Nordic Shield group?

Victor Bergstrom, CFO, Scandinavian Astor Group: Yes. That’s a good question. Actually, in this acquisition, the last time here, I think the multiple was roughly eight in what we’re paying now. But but I think it’s sort of, I would say, they they had they hadn’t communicated their final numbers for Cision when when we signed the deal. But if you look look at it now, you know, afterwards, I would say it’s it’s it’s maybe 4 and a half when when we enter the company.

Moderator/Host, Scandinavian Astor Group: Perfect. And then there’s also a question on AASTO four live and also from beforehand via email. Can you give an update on four? When would you expect to receive first orders?

Victor Bergstrom, CFO, Scandinavian Astor Group: Yes. That that’s a great question. And, obviously, we we we come a long way since since we we released that Astro four is in a commercial stage. But so we come a long way. We have so many other products and so many other companies.

So we are not too dependent on the Astro four. But I I I wanna say that, you know, we it hasn’t been any negative, and we we saw some recent news lately coming out of France when they were commenting or commenting about Astro four being a great product, and they they need that sort of equipment. So I would say all in all, it’s it’s it’s it’s moving on, but, you know, electronic warfare takes a lot of time. But maybe the main thing is that from Astro four, we also developed this, you know, spin off product, as I said many times, this Astro Eclipse, and we that that product has, you know, already taken off here. So so we we are working on it, and we but but we are not as dependent on it then anymore.

Moderator/Host, Scandinavian Astor Group: And then there’s another question we received beforehand. With heavy focus on continued m and a, how is management focused on its current group of of shareholders and the fact that the share is getting diluted with every emission?

Victor Bergstrom, CFO, Scandinavian Astor Group: Yes. Great great question. And that is also you know, we we have sort of we have three ways to create the shareholder value. We have, you know, m and a. That’s creating shareholder value.

You know, we can make a lot of sales and generate profits from the current companies. That’s creating shareholder value. And we can also make, you know, some some some corporate excellence, you know, trying to tweak tweak and tweak tweak there and tweak there to make to make the profits even higher. But but in the end, you know, m and a has been so successful for us. And and it’s very important if you want to, you know, complete acquisitions.

It’s very important to have a a big m and a coffin or a big m and a fire firepower because otherwise, the sellers will question your ability to make these acquisitions. So now we finally have that. We have a bit very big m and a coffin here. So so we’re we and, of course, that’s very helpful in all the dialogues we have. They they they know that we can complete the deal without any anything, you know, stopping it short term, like like a market market fluctuation and stuff.

So so it’s very important.

Moderator/Host, Scandinavian Astor Group: Then there’s a question related to that. Will you be able to reach your financial targets with the same share count as today?

Victor Bergstrom, CFO, Scandinavian Astor Group: Yes. That’s that’s a good question. And, obviously, it it depends on how how expensive the m and a activities we do or the the investments, example, that we that we plan for for for the Latvian production. Obviously, that that will be you know, it will be, you know, visible in maybe six months or one year, and then we know more. But it’s too early to to expand on that.

But but one thing I can also mention is that, you know, going forward here, once we get the EBITDA numbers up like we have had like we are doing now, we can also make, you know, we can make, you debt know, a a bond and, you know, attract capital that way. So so we don’t have to tap into the, you know, equitations after this big emission that we made in early summer.

Moderator/Host, Scandinavian Astor Group: Right. And next one, I’ll pick somebody that raised their hand. Henle Wendesch, I am unmuting you right now.

Henle Wendesch, Analyst/Investor: Yes. Great. Hi, everybody. Thanks for taking my questions, and thanks for the presentation. Congrats to your strong results.

I have a question going into detail already. I’ve seen in your report the geographic sales split, and it reveals to us that it’s a very large growing share of sales going to America, which I assume to be The USA. And then my direct follow-up is, are your products in any way impacted by the tariffs that we’ve seen coming from The US? If they are, of course, sales going to The US. And if so, how do you pass on the tariff costs?

Or do you take the hit on your own? Sort of that’s my first question.

Victor Bergstrom, CFO, Scandinavian Astor Group: Yeah. Thank you, Henry. I don’t know how much I can, you know, expand on that, but I would say some some costs, you know, were higher here in quarter two also related to that, but we don’t expect that going forward.

Henle Wendesch, Analyst/Investor: Alright. Because I I maybe I need to look it up. Maybe the defense products are exempt from from the tariffs.

Victor Bergstrom, CFO, Scandinavian Astor Group: Exactly. And yeah. So that’s that’s true. Yeah. So we don’t we don’t expect that going forward.

Henle Wendesch, Analyst/Investor: Right. And that also explains the negative FX effect, obviously, in in the dollar. It’s it’s it’s Yeah. Obviously developed as we’ve seen. Right.

Next question is regarding the m one a pipeline. I think last time we spoke, you you put a number out. It was 500,000,000 in the short term m and a pipeline, of course, you acquired a lot of companies in the meantime. Do you have an m and a pipeline size as of right now for us so we can have a little idea of of what’s in the pipeline? Maybe give a give a little ballpark number there.

Victor Bergstrom, CFO, Scandinavian Astor Group: Sure. Sure. I think I think our CEO, he was interviewed here quite recently in some some merger magazine. But and we we still said that, you know, we have 50 or above in in interesting company we’re looking into. But I would say that number is growing very quickly now.

So, obviously, with the as I said, with the m and a firepower we have, and and we we see a lot of interest from from the market to to talk to us or as acquirer. And that’s also it doesn’t have to be that negative that, you know, that there are some talks about peace and it might mean easier m and a process for us. So so I wouldn’t, you know, take it at at at face value, just negative. So I I would think of it as a more mixed bag. That that the question.

Henle Wendesch, Analyst/Investor: K. Thanks. And then maybe regarding also your stake now, which you increased the Nordic Shield Group. So you you paid, I think, 23,000,000 for another 6% giving a 380,000,000 valuation in total. Yeah.

And this yeah. So what of what sort of multiple did you pay on the extra six, if you can if you can say that? I mean, it’s hard to if you if you include the c c m or not in the NSG last twenty twenty four numbers. So maybe you have a little ballpark of where multiples are moving, the more you increase. Maybe also directly the follow-up already.

Is there any plan to go to 50% plus?

Victor Bergstrom, CFO, Scandinavian Astor Group: Yes. Yes. Yes. Yes. To answer your first question there first.

I would say, obviously, being a company on the publicly traded here, I think at some point we need to reach 50%. And then we, of course, can consolidate the whole group and get the top line effect, which we don’t have today. So that is, of course, our long term goal. And they know that as well. So it’s no no nothing no hidden agenda there.

But but, yes, with regards to the multiples, paid we paid as I said, I think I got that question a little earlier. So I think we paid we we paid about 8 now on the on the pro form a accounts that they have showed on multiple with the with the recent acquisition. I’ve and but that means also the the first acquisitions was very cheap. So it was around 4 and a half in in the first 30% we bought. So you can say, in total, it’s still it’s still a cheap.

Yeah. Of course, it depends on how how expensive the the the the the coming 14% or or 15% will be. But let’s see.

Henle Wendesch, Analyst/Investor: Great. Then yeah. I think that’s that’s it. Let’s go through my

Victor Bergstrom, CFO, Scandinavian Astor Group: Yep.

Henle Wendesch, Analyst/Investor: Yep. I think that’s it. Otherwise, I’ll call you later if there’s anything that arises. Thanks a lot.

Victor Bergstrom, CFO, Scandinavian Astor Group: No worries. Thank you.

Moderator/Host, Scandinavian Astor Group: Okay. Then we have two more in the chat. First one on the MGM listing. Does it mean you will get into more indexes?

Victor Bergstrom, CFO, Scandinavian Astor Group: That’s a good question. I don’t I don’t think I don’t think so. Not indexes. That’s a good question. I I cannot answer that one.

But I think not because, you know, most indexes, they are, you know, they are market value weighted and and and trade weighted. So so we we are already to the now in the MSCI global share small cap or the micro cap index. So so next up is the small cap there, I would say. But apart from that, I I don’t think so. We we are already, you know, included in the investment universe for for the for the for the indexes.

Moderator/Host, Scandinavian Astor Group: Then we have another one under the chat. What are your top three highlights that you’re most excited about for Scandinavian Astro Group this year?

Victor Bergstrom, CFO, Scandinavian Astor Group: Oh, that’s a that’s a good one. I think top three, if I have to choose if I have to choose oh, I need to go up to the bullets here. Let’s see. Yeah. I would say maybe, you know, it’s a that we we have managed to make a lot of good acquisitions.

I’m especially happy about this m and a investment firepower that we have. And also that we we managed to post this, you know, 15% adjusted EBITDA. So or, you know, if if you approximately 15%. So so that I’m I’m very happy about that. Thank you.

Yeah.

Moderator/Host, Scandinavian Astor Group: So far, we have no further questions. So a quick reminder, you can still raise your hand or type it into the into the q and a box, and we’ll wait another minute or so to give you a chance to ask potential other questions. Seem to be the case, Victor. Henley has another follow-up question. Let me quickly unmute him.

Victor Bergstrom, CFO, Scandinavian Astor Group: Yeah. Sure.

Henle Wendesch, Analyst/Investor: Yeah. Right. Yeah. I just noticed or sort of come to my head that you used to work at Altus yourself. So Yes.

You walked up some some old strings there. Maybe go a little bit more into detail and explain to us how we can think of this potential collaboration. Will they be supplying the the batteries for your products? And if yes, for for which products in detail. I see this this Ocelian symbol on the slide.

Victor Bergstrom, CFO, Scandinavian Astor Group: So Yeah.

Henle Wendesch, Analyst/Investor: Is this only for Ocelian or maybe another product group? I can think of, for example, the high security valves that they need batteries as well in some sort that need to be independent from China in the sourcing. So, yeah, maybe as as as much as you can say about the protection, would like to know what

Victor Bergstrom, CFO, Scandinavian Astor Group: it Yeah. Sure.

Henle Wendesch, Analyst/Investor: What it would look like. Yeah.

Victor Bergstrom, CFO, Scandinavian Astor Group: Sure. Sure. Yeah. Of course, when when I met you guys in in in Frankfurt as well, we we talked about this SFC Energy, you know, company that that that they are trying to sell to the defense, or they have a contract there with with the military in in in Germany. So I feel that this is a you know, it’s not it’s a similar thing, but but, of course, it’s it’s very it’s very different chemistry or or or solution.

But but it it’s more classic battery than than the SFC energy. But other you know, I would say, of course, yeah, I I so I I managed to pull a few strings there, and, you know, they they they they didn’t think so much about the defense industry before. But but, of course, it’s the perfect battery for for for, you know, Nordic conditions, you know, with with with cold climates, it’s it’s very good with it with this sodium ion technology. So it it can stand extreme cold, and and it it can be discharged. It it it, you know, it it can be, you know, laying on the shelf for for a couple of years without charging it, and then you can just pull it from the shelf and use it.

Just charge it up. So it’s very different to lithium because the the technology there is breaking down if you don’t charge it. You need to charge it all the time. So it did there are so many applications. You know, it’s for, you know, shoot shooting, you know, missiles.

They have batteries, know, and they need to be kept in a shelf and, you know, all the vehicles, are running around with with most mostly Chinese made batteries. And I don’t think it’s a it’s a good solution in the long run to do that, especially if if we want to, you know, be resilient and be, you know, Europe Europe produced and and and with that. So so yeah. I I I’m not in a position now to to expand too much about the revenue split and such. But but we we we are not at this stage, you know, moving into any battery production.

That that’s that’s for sure. So so don’t worry about that. So so this is just a collaboration at this point. We made this, you know, test batteries, and we will see how how how it turns out. We we got a lot of interest for for those in in in the daily days there, and we expect to show them in, of course, at the MSPO and d DCI and such.

Henle Wendesch, Analyst/Investor: Great. Thanks.

Moderator/Host, Scandinavian Astor Group: And we have two more in the chat. What kind of effect do you see with the investments of the three d printer and the etching machine now do you have in that place?

Victor Bergstrom, CFO, Scandinavian Astor Group: Yes. That’s a good question. I I think we need to communicate on that, you know, separately if I say too much. But, of course, it’s we expect the inventory turnover to be quicker. We expect to make products from raw material to a finished product sell to customer in a quicker fashion with this product.

So it will mean that the sales can go up for for for Nordstrom here. So so we we’re really looking forward to to seeing those effects here in this coming coming quarters.

Moderator/Host, Scandinavian Astor Group: And then there’s the last one. So your stock price has been quite volatile. When do you think it will stabilize?

Victor Bergstrom, CFO, Scandinavian Astor Group: The share price. Yep. Yeah. Yeah. As I said, you know, it’s it’s not up to me to to comment too much about that.

So I I think the only thing I can say is that maybe it’s some turmoil with regards to to peace talks and such, but then it’s important to remember that, of course, Astor is a defense focused group, but we also have a lot of civilian trades. So we will have a good business anywhere this goes. But of course, we’d like to increase our part of military sales. And that is increasing, of course, with the acquisitions we make. With like immunity, it’s 100% defense.

But it’s also important to mention that, as I said, the with regards to m and a, it might mean that that, you know, company are not companies are not expecting or or, you know, 15 EV, EBITDA multiples or or such. So the so the it might mean a good thing for our m and a agenda.

Moderator/Host, Scandinavian Astor Group: But I see no more questions. So, Victor, I’m handing over to oh, there’s another one. Could you expand on the water based drone which you are was

Victor Bergstrom, CFO, Scandinavian Astor Group: Yeah. I think I lost you a little bit there. But but but I heard I think I just understood the question with regards to the the water based drone that we see together with Tollprop there, you see as you can see in the picture. And I think that there’s a lot of interest for it, of course. It’s and and we will hope that it brings sales here in the future.

But but it’s it’s a little bit early for me to to comment. I think we will up update on that separately when when when when we get that kind of orders coming through.

Moderator/Host, Scandinavian Astor Group: Great. I think that was it now. So, Victor, some final remarks from your side?

Victor Bergstrom, CFO, Scandinavian Astor Group: Nothing on my side. Thank you. Good questions, and looking forward to speak to you again here in a in a not too distant future.

Moderator/Host, Scandinavian Astor Group: Thanks everyone for dialing in.

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