4C Group (4C) investor relations material

Executive summary

• Net sales for Q1 2026 were SEK 60.1 million, down from SEK 91 million in Q1 2025, mainly due to timing effects, postponed deals, and a strong prior-year comparison.

• Order intake was robust at SEK 91 million, with significant new and extended defense contracts in the US, Canada, Sweden, and NATO, pushing the order book to a record SEK 364 million, up 10% from Q4.

• Strategic transition to a Defense-first approach and cost reduction programs were completed, reducing headcount by 35 and lowering the cost base; full impact expected from Q2.

• Resilience segment focused on profitable renewals and expansions, with early positive effects from cost measures.

• Expert Services experienced a seasonally soft quarter but maintained a strong order book and pipeline, supporting future growth.

Financial highlights

• Net sales Q1 2026: SEK 60.1 million (Q1 2025: SEK 91 million); EBIT was SEK -20.4 million, with a margin of -34%.

• EBITDA was SEK -9.0 million (margin -15%), down from SEK 18.3 million (margin 20%) in Q1 2025.

• Order book reached SEK 364 million, up 10% sequentially; contract assets increased to SEK 285 million, net increase of SEK 12 million.

• Cash and cash equivalents at quarter-end were SEK 0.4 million, with total available liquidity of SEK 7.3 million; new financing secured.

• Revenue recognition changes reduced Q1 top line by SEK 12 million; one-off restructuring cost of SEK 4 million.

Outlook and guidance

• Cost reductions and efficiency measures are expected to improve profitability and earnings from Q2 onward.

• Focus on converting deals and delivering on the growing order book, especially in Defense, with rising budgets and operational readiness driving demand.

• Anticipates cash positive Resilience segment in 2026 and revenue positive in 2027.