4C Group (4C) investor relations material

Executive summary

• Q3 net sales fell 7% YoY to SEK 67.3m from SEK 72.7m; lower costs narrowed the EBIT loss to SEK 6.1m from SEK 11.7m.

• Transition priorities include converting the large order backlog into revenue, focusing on European defence, and improving cash conversion; North American sales conversion remained challenging.

Financial highlights

• Q3 EBITDA improved to SEK 8.3m from -SEK 0.8m; EBIT margin improved to -9% from -16%.

• Q3 net loss narrowed to SEK 4.3m from SEK 13.3m; EPS was SEK -0.09 versus SEK -0.33.

• Q1–Q3 net sales were SEK 222.7m versus SEK 239.3m; EBITDA was SEK 25.5m versus SEK 16.3m and EBIT was -SEK 13.4m versus -SEK 14.7m.

• Q1–Q3 net loss narrowed to SEK 7.1m from SEK 31.7m; net financial income was SEK 5.7m versus expense of SEK 22.6m, primarily reflecting FX effects.

• Q3 software revenue was SEK 39.7m, 59% of sales; ARR rose 5% YoY to SEK 181.3m.

Outlook and guidance

• Priorities are to capture sales opportunities, raise revenue, improve cash conversion, maintain cost discipline and advance product innovation and delivery.

• Resilience remained on track to become cash-flow positive in 2026.

• Medium-term targets: FX-adjusted organic net sales growth above 20% annually, software revenue above 70% of sales and EBIT margin of at least 20%.

• The Board assesses financing as sufficient for the next 12 months based on facilities and the current forecast; liquidity is monitored and lender discussions continue.