PowerCell (PCELL) investor relations material

Executive summary

• Q2 2026 revenue declined 46% year-over-year excluding prior one-off license transactions, with both revenue and earnings falling below expectations amid ongoing market volatility and technology transition.

• Despite the weak quarter, the company is fundamentally stronger than in previous years, with improved organizational resilience and strategic focus on Marine and Power Generation.

• Order intake accelerated significantly, reaching SEK 86 million in Q2, up from SEK 50 million in Q1, signaling strengthening demand even as revenue lags due to long sales cycles and market lumpiness.

• Actions to right-size the organization and adapt the cost base are underway, aiming for a leaner structure by 2027, with effects expected in H2 2026.

• Strategic contracts in Marine and Power Generation, including a SEK 30 million multi-megawatt order from ECL for a California data center, support future growth.

Financial highlights

• Q2 2026 net sales were SEK 37.0 million, down from SEK 130.0 million in Q2 2025; gross margin dropped to 10.4% from 61.6% year-over-year.

• Net loss for Q2 2026 was SEK -51.2 million, compared to a profit of SEK 22.4 million in Q2 2025.

• Operating cash flow for Q2 2026 was SEK 4.6 million, aided by efficient working capital management despite lower revenue.

• Cash and cash equivalents at June 30, 2026, were SEK 34.5 million; available liquidity SEK 76.0 million including unused credit facility.

• Year-to-date sales were SEK 84 million, down from SEK 204 million; gross margin at 17% versus 53% last year.

Outlook and guidance

• Volatility is expected to persist, with significant quarter-to-quarter shifts driven by large, unpredictable customer orders and slow decision cycles.

• Order intake is rising, with SEK 86 million in new orders in Q2, up from SEK 50 million in Q1, and continued momentum into Q3.

• The company is focused on defending breakeven at the low end and is prepared to scale if market activity accelerates.

• Effects of cost base reconfiguration expected to materialize in the second half of 2026.

• Long-term outlook remains positive, supported by electrification and hydrogen adoption trends.