Argo Defence Group (ARGO) investor relations material

Executive summary

• Q3 net sales rose to SEK 44.8m from SEK 18.9m; EBITDA was SEK 9.7m versus SEK -0.1m, with a 21.6% margin. Comparative periods cover a smaller group and are not fully comparable.

• Growth and profitability were supported by Swedish Net Air & Defence deliveries under framework agreements and peak-season airport work at LPG Trafikmarkeringar.

• At quarter-end, framework agreements had a total potential value of SEK 781m, with SEK 520m remaining subject to customer call-offs; order backlog was SEK 58.2m.

Financial highlights

• Q3 2026 net sales were SEK 44.784m; operating profit was SEK 3.945m, profit after net financial items SEK 3.063m, and net income SEK 1.463m.

• Q3 order intake was SEK 34.891m versus SEK 38.376m; order backlog was SEK 58.197m versus SEK 44.390m YoY and SEK 69.7m at the half-year.

• 9M net sales were SEK 160.319m, EBITDA SEK 25.830m, operating profit SEK 9.882m and net income SEK 5.007m; prior-year figures are not fully comparable.

• Q3 operating cash flow was SEK 22.142m; investing cash flow was SEK -2.709m, financing cash flow SEK -20.773m, and period cash flow SEK -1.340m.

Outlook and guidance

• Management entered Q4 with improved profitability, a broader customer base and deals with growth potential; it expressed optimism about 2027 and opportunities across all business areas.

• Poseidon targets 2029 net sales of SEK 150m and an EBITDA margin of 15–20%, with pilot orders viewed as a potential path to series deliveries.

• Zel-Aaren and LPG received enquiries for larger assignments in 2027 in Sweden and internationally; Swedish Net Air & Defence had Q4 2026 and Q1 2027 deliveries in its backlog.

• Planned commitments during FY2026 were assessed as financeable from available liquidity of SEK 40.2m, including cash and undrawn overdraft facilities.