Alimak Group (Stockholm:ALIG) Q2 2026 Earnings Call

0:00 Welcome to the Alimak Group Q2 twenty twenty six Report Presentation. For the first part of the conference call, participants will be in listen only mode. During the questions and answers session, participants are able to ask questions by dialing 5 on their telephone keypad. Now I will hand the conference over to the speakers, CEO, Ole Christian Jodal and CFO, Sylvain Granc. Please go ahead. Thank you, and welcome to this quarter two call of '26. And as always, I have Sylvain with me here. So turning page and a short recap. Alimak Group, a diversified global industrial company. We are a leading provider of sustainable vertical access and working at height solutions. 3,000 employees and now, yeah, with the new acquisition that we have done, it's actually closing up to 3,200.

0:53 Drivers for success, we are supported by some fundamental global trends like urbanization, health and safety, the electrification trend, and also regionalization on the industrial side that more and more is coming back to Europe, etcetera. And these are all fundamental growth drivers for the group. We do have a leading market position in the niches where we operate. We also have a long history, which means that we have a huge installed base with our machinery around the world over many, many years, which forms a fantastic base for our aftermarket selling spares and services, which is a fundamental piece of each division and 35%, 40% of the group.

1:39 We have a strong balance sheet, good cash conversion, which gives us also a strong ability to invest. Turning page, we kicked off in 2020 what we call the new heights strategy, which was focused on creating a highly profitable, growing, resilient industrial company, which delivers on its promises to the stakeholders. And this is a strategy that has served us well, and we updated it back in '25, and it's something we will continue to drive now towards 2030. Turning page, and these are our current targets, financial and sustainability, and maybe the two most interesting ones on the financial side is the average annual revenue growth target of 8% to 12%, and that we should reach an adjusted EBITA margin of 20% by 2028.

2:40 Turning page and diving into the quarter. Stable performance despite the challenging market condition. We saw strong order intake in wind, construction and HSPS in the quarter, while it was softer in industrial and facade access, but this is due to timing effects. We have talked for since I came here about the volatility between months and quarters, and this is also what we see now. The pipe is good. We have a lot of projects in front of us that we have visibility to, and so we don't see anything strange with this. Four out of five divisions performed very well in the quarter. Facade Access jumping margin up to 13%, industrial delivering stable at 25, HSBC very nicely stable at 18, and wind report record at 22% margin.

3:36 So it's the construction division which face a continued very challenging market where it's low sales of machinery, which is then giving a disappointing result in the quarter. But as you also know, we changed DBP here three and a half months ago, and Karin is driving then a focused review of the division performance on how to improve. Cash flow, 280,000,000 SEK versus 180 last year, so strong, good cash flow in the quarter. And then as you know, the other day, we announced the acquisition of ProBell, a provider of suspended access and fall protection system out of Toronto, Canada, which will give us a market much more broader market exposure and diversified business for facade access, but also for the group, and it will be fundamentally margin accretive to Facade Access, but also to the group.

4:39 And if you are up to date on the latest press release, you will see that just two minutes before we went on to the call, we announced that the deal is closed. So as of now, this is part of the group. Turning page, q two order intake was 1,741,000,000 SEK, up 1% or also organically, and increase then in wind construction and HSPS, lower order intake as I talked about in industrial and facade access, but due to timing effects. Revenue was 1,762,000,000 SEK, down 2% or 2% organically. We saw good growth in wind and industrial while especially in construction then driving this down.

5:29 EBITDA adjusted at 303,000,000 SEK, down from three twenty two, margin of 17.2 versus 18, and it's a decrease of 6% year over year. But it's also a nice uptick from the last two quarters. So and it's reflecting basically the difficulty in construction, else, as I said, the other pieces are moving well. Turning page, service continues, of course, to be a fundamental piece, and order intake was SEK $721,000,000 in the quarter, up 9%, also organic. And it was an increase in construction, industrial, HSPS, and wind.

6:14 Revenue was SEK $699,000,000, up one percent, also organic, with a positive contribution from Facade Access and Industrial Division. And, yeah, great resilience, good margins, and a fundamental growth driver for for the group also. Turning page, and we dive into the divisions, starting off with Facade Access. Order intake was SEK 403,000,000, down 11% or 9% at constant rates, and it's driven by timing effects and award dates on some larger projects that will then be coming in the second half of the year. And we also saw some lower order intake in The Middle East due to the turbulence down there, but we at the same time do not see any cancellations.

7:06 So still projects are on the move and we believe will be awarded as long or as soon as things start to settle down. Revenue was $486,000,000, down 3% or 1% at constant rates. Service revenue continued to grow, supported by our initiatives on the aftermarket, you know, with refurbishment, retrofit, replacement, which we have been talking about strategically for a long time. Also very happy to see new equipment revenue from projects in Asia and compensating for somewhat lower revenue in North America. EBITDA at 63,000,000 SEK, up from 56, margin of 13% versus 11.2.

7:53 We saw gross margin improvements in all business units and some negative project mix then, and this is coming from the Asia part of invoicing, which carries a lower margin, as you know, versus the North American, which have a higher margin. And then also then profitability improved due to our initiatives on processes and project execution and a more healthier pipeline that should continue to bring up the margin in this business. Turning page, we continue to focus on our growth initiatives as we have been talking about and happy to see that in Europe and Netherlands specifically, we took some very nice orders on a lighter, what we call type one BMU.

8:45 What you see on the picture to the right, this is important for us to revive more the European market and this offering that we used to have here. So very happy to see that that's starting to move. We continue to see positive developments of our IDS that we started off, also now outside North America, and the triple R, which is also fundamental. From a geographical perspective, overall Europe and Asia, as I've talked about, is fundamental areas for us to improve, and all our activities and plans here are also progressing very well. Turning page. And then a big thing for Facade Access, but also something I'm very happy with for from from a group perspective is the acquisition of Probelle.

9:35 So it's a great company out of Toronto, Canada, which have been then started by Mark Lebel, actually, fifty years ago, where he did window cleaning the first five years, and then he saw that this is not safe, and he started a company to ensure safety for those that work at heights. And he has spent forty five years of building this company, and we are now having this honor to take this further. And it's more than 140 employees. It has a really proven and state of the art operating model, which is the base for this fundamentally or very, very strong and over time very strong margin. It's, as you know, a complementary offering to us, which has been more focusing on the taller buildings. This will give us more access to lower and medium height building and complementary also product range.

10:35 So it brings synergies and growth opportunities for us. Running twelve months up to April 2026, revenue was 69,000,000 CAD, which is approximately SEK $473,000,000. Adjusted EBITDA of SEK 24,000,000 or SEK 165,000,000, giving an adjusted EBITDA margin of 34.6. And this, as I said, also in the call the other day, is a margin that they have been able to sit with over longer time. Important for facade access, important for the group, and, again, a really warm welcome to this great team into the group. Turning page.

11:21 Industrial. Good stable quarter. Order intake was SEK404 million, down 16% or 16% organically, driven by negative timing of projects, but also it's having a very high comparable as you know. The project pipeline remains strong and we see opportunities across multiple segments globally and also the service business continued to perform well. Revenue was SEK $421,000,000, up 6% or 3% organically, driven by both good equipment and service revenues in the quarter. Service remains strong, and the fundamental here is also some refurbishment projects that we have taken and which is a strategic focus for us.

12:12 EBITDA at SEK 107,000,000, up from 105, giving a margin of 25.3 versus 26.3. It's a good gross margin development, but also then partly offset by our continuous investments into this business to sustain the the growth and to continue to develop it and something we will get benefits from in the future. Turning page. Traction Traction is one of the key strategic initiatives that we want to move into. We are a leading player in rack opinion, but also traction has a lot of relevance on the industrial side. And we have had this business out of Norway towards the oil and gas market. We also had a significant nice order in the quarter here.

12:59 We're also driving more partnerships and, yeah, find ways to grow this business. And we also see that we are having constantly a growing pipeline of projects. Then we also did a small acquisition in Australia, also related to traction, Fuji Lifts, in the quarter, and, again, part of this strategy to continue to build our traction base on both the product and service side globally. Turning page to construction. Decent or maybe even in these times, good order intake. Happy to see that, of course, but also a disappointing result in the quarter.

13:48 Order intake was SEK $389,000,000, up 19 or 17% at constant rates. We saw increased interest in our mass climbing work platforms, particularly in Australia where we got a nice order, and this is again driven by our initiatives, while new equipment on our traditional products, hoist and mass climbing work platforms remains soft, and especially Europe. While, you know, what we can affect is parts and service, and that's good, and these overall growth initiatives that we are driving. So and then revenue was $333,000,000 SEK, down 18% also in constant rates.

14:34 And it's, yeah, lower new equipment sales for hoist and mass climbing work platforms in the previous quarters, which is then affecting revenues now. And, also, we saw some delays in some projects in the quarter, which also affected the temporary revenue. EBITDA at 28,000,000, down from 68, a margin of 8.3 versus 16.7, something we are absolutely not happy with, driven by lower revenues on the product side. We also had some nonrecurring items in the quarter. And as I said already, you know, we are making, and that's part of Karin's getting into this business to really ensure that we can improve the overall setup and the profitability. So turning page.

15:36 Yeah. Karin has been here three and a half months, so she's in the midst of this now, and the objective is to really create a simpler, more accountable, customer focused organization that is now adopted to this market that we see here. That the market will come back. We have no absolutely no doubts. It's it's a must, but still we see that the interest or or the financials for our rental customers to invest in new machinery is still remaining very, very low. What I'm happy to see then is that whatever we do on strategic initiatives to ensure growth has paid off well over time and also continues to do, and we now see a very nice mass climbing work platform case where we have developed a solution for a steel plant chimney refurbishment, where we have, yeah, this mass climbing work platform solution, which historically has been scaffolding.

16:33 So one example of initiatives and business that we are seeing also going forward more of. Turning page, HSPS, stable, good quarter. Order intake was 345,000,000 SEK, up from 3 16, plus 97% organically. We continue to take market share in the elevator segment, especially now in Middle East and India, but also from new locations that we have established, while we continue to see construction market also affecting this division and then that's specifically into the height safety solutions that we are having. Revenue was 319,000,000 SEK, down from $3.21, 1% or 3% organic, and it's a softer performance in North America and lower distribution sales driven by construction in in Europe, but also partly offset by strong deliveries to our elevator customers.

17:35 EBITDA at SEK 57,000,000, up from 55, margin of 18 versus 17.2, and it's driven from all these initiatives that we are having to ensure that we protect profit while we're also making a lot of changes to the business. Turning page, changes to the business, the transformation. It's multiple. We basically work in all areas, r and d, product innovation. We have 10 launches this year, and in the last quarter, we launched the Vaultrek single phase, the product you see to the right here. It's a small chain hoist. We have finalized the lean implementation into the operations during the quarter, and we have also launched a new brand identity. You can see the new brand to the right here to really also reset and renew a little bit everything inside the the business.

18:38 Great to see that we continue to take business in the elevator segment, and it's our great T RAC hoist, which is a great solution for all our customers there, and it's also nice to see that we are taking continue to take nice business also in fire and rescue with our TDAC foil, which is a unique product also also there. Turning page and into wind, record quarter. Yeah. Some of you might remember that this was a problem child when we kicked off our new heights strategy, and now this is turned starting to turn to be absolutely one of the best pieces of the group. Order intake was SEK $215,000,000 in the quarter, up 36% or 35% at constant rates.

19:28 Growth is coming from our key OEM customers, you know, in the the wind OEM manufacturers, wind turbine manufacturers, where we have nice good agreements with basically all of them, but also supported by some recovery in The US market and also increasing interest in offshore again. Revenue was 213,000,000 SEK, up 20% or 21 at constant rates. Yeah. Record quarterly revenue and strong execution across all regions. EBITDA, 48,000,000 SEK, up from 38, margin of 22.5 versus 21.4, and it's due to operating leverage, of course, with higher higher revenues, but also supported by cost discipline and our constant actions to make sure this is a very lean and high performing operation.

20:28 Turning page, the market remains to look good. It's an interest in electricity around the world, and, basically, everyone sees that this is a fast and a very effective way of getting electricity to the market. So we see record installations around the world, and that, of course, is also pointing to further growth for us. Offshore continues to accelerate. It's coming really back again and also starting to see repowering as a new demand driver, and this is rebuilds of older turbines, which are getting a new drivetrain to become more effective, and that also means rebuilds inside, which typically also means rebuilds of the lifts or or our solutions inside.

21:22 So a nice business also there for us coming. On the strategy side, we continue to focus on what we have been doing, and that has been working well for us, being disciplined in everything we do. And, of course, also constantly drive innovation, product development with our customers, and we're also here seeing more and more value from our digital solutions, which provide the online data and support uptime and more customer value. And with that, we turn page to profit and loss, and I leave for Sylvain. Thank you, Ole. Hello to everybody on this call. So our adjusted EBITA decreased by 6% in the quarter to SEK303 million, whilst revenue decreased by 2%.

22:11 So this obviously implies an adjusted EBITA margin contraction to 17.2% and that primarily comes from SG and A slightly higher as a percentage of revenue and I'll come to that on the next slide. But I have to comment here that sequentially this is the highest quarterly adjusted EBITDA since Q3 twenty twenty five, so down versus Q2 twenty twenty five but up in the last few quarters. Items affecting comparability are negligible this quarter. The quarterly amortization of million was consistent with our expectations. It will go up due to the Probele acquisition and the impact will be estimated in Q3.

23:01 Financial net charge was down to million that was expected and the reduction versus Q2 twenty twenty five is due to lower borrowings and lower interest rates. With the Probele acquisition we expect that charge to go up by around SEK10 million so that will take us to SEK40 million. The effective taxation rate is up in the quarter twenty nine point two percent versus 25.7% in Q2 twenty twenty five. That is purely due to the country mix effect. We have less earnings in low rate countries in particular Sweden or Middle East and that is affecting the rate.

23:49 If we look at the first six months the effective taxation rate is 28.2% and this is more or less what we expect for the second part of this year and ProBell is on that level as well. So in the quarter net earnings came down by 17,000,000 SEK that's a 9 percent decrease and that's due primarily to the EBITA decrease and the higher effective taxation rate. So next page moving to the gross margin and operating expenses. The gross margin was stable versus Q2 last year on a good level. Construction division decreased due to mix effect as explained by Ulleh, but that was compensated by Facet Access, Industrial, HSPS.

24:40 So three of them expanded their margins in the quarter. Wind was flat. I said three months ago we were expecting some higher costs due to the war in The Middle East and this has indeed started to come in Q2 in particular freight and energy. We have mitigation measures in place which have protected us protected our gross profit and we expect this to continue. As a percentage of revenue operating expenses excluding IAC went slightly up this quarter and that's driven by the construction and industrial divisions. In the construction divisions the achieved savings were not sufficient to protect the gross profit given the drop in revenue.

25:29 Anoule mentioned we were making a deeper review to address the situation. In the industrial division we have been increasing some investments typically R and D sales expenses to fuel and support the future growth but this has not fully paid yet you know with a good sales pipeline we think it will pay off but of course that's you know a situation we monitor very closely. And then the other three divisions HSPS, Fast Access, Win, SG and A were stable or decreasing in the quarter as a percentage of revenue. Moving on to the result for the period which was SEK167 million versus SEK184 million in Q2 twenty twenty five that's a 9% decrease.

26:25 Excluding items affecting comparability result for the period was SEK169 million versus SEK184 million and that's an 8% decrease. Earnings per share was SEK1.57 versus SEK1.74 and it's a 9% decrease. We have had the same number of shares. Adjusted for ISE and acquisition related amortization EPS was 1.82 SEK versus 1.98 and that's an eight percent decrease Moving to the cash flows and overall it's a good quarter. I'm satisfied with what we delivered this quarter. We managed to generate a small cash inflow from working capital changes despite the revenue growth in Q2 versus Q1 this year.

27:18 That's due to some catch back from Q1 and you know our let's say usual efforts and discipline with respect to cash collection. And as I said many times, know, we focus on cash flows and we will continue to focus on cash flows that's important to us. Next page, net debt went slightly up in the quarter to SEK2.6 billion. That's due to the dividend payment, which was partially compensated by the good cash flows. Leverage is two versus 1.85 by the end of Q1. That's due to the slightly lower earnings and slightly higher net debt.

28:05 But the leverage ratio, it's, you know, at the end of the quarter is still well within our target. As we said the Probele acquisition will take us temporarily above 2.5 but you know we expect a continued good operating cash flow both on legacy Alimak and ProBell and that will take us back to the target of below 2.5 by the end of this year. Our capital allocation priorities remain unchanged. We invest in inorganic growth. I refer to you know some specific expenses in particular in the industrial division, R and D, sales and marketing. We continue to work on acquisitions.

28:55 We have a good pipeline with some very interesting targets. We are conscious we have a higher leverage but there are still some opportunities we are looking at. We are committed to delivering according to our dividend policy so 40 to 60% of the net earnings although of course it's an AGM decision ultimately and one last word on ROCE which decreased slightly in the quarter that's due to the lower EBIT and it went to 22.7% excluding goodwill, 9.2% including goodwill to be compared with 23.49.5% respectively in Q1 twenty twenty six.

29:44 And on that, I will hand over to Ulle. Thank you, Sylvain. I'll return page to the summary slide. So yeah, stable performance despite the continued challenging market conditions and then that's related to the construction market specifically, but also in the quarter, turbulence from the Strait Of Hormuz and the effects that has had on on some parts of the business. Four out of five divisions performed very well, and I think this is also a signal of the strength of what we have developed over the last years. The group, of course, we are not fully happy with 17.2% when we have done better, but we are on the right track, and we we have fundamentally changed the group over the last years, and we will continue doing that.

30:34 Focused review is then initiated in construction division to ensure that we improve the performance. We have strong cash flow, which is allowing us to continue to invest. And the new business coming in, Probelle, also have strong cash flow, which, as Sylvain saying, which will allow us to deleverage fast. It's a significant addition to the facade excess business and also to the group. It will make us more resilient. It will create more growth opportunities. It will bring higher profits to the group, and it's also 140 more great people or brains coming in that will all work to continue to develop this even better.

31:23 So we continue to execute on our new heights, delivering profitable growth, both organic and through acquisitions. And the target is to deliver on our promises to all our stakeholders going forward. So with that, we turn page, and we move to Q and A. The next question comes from Oskar Ronckfuss from SEB. Please go ahead. Thank you, and good morning. So I'll start off with a question on orders.

32:09 So you explained temporary effects in Resource Access and Industrial. So just wanted to hear your thoughts on the levels here. Is it purely due to timing issues? I mean, I acknowledge the tough comparables, but is it only due to timing issues? And are you comfortable with the deliveries or the orders coming in, in H2? And in that case, could we see that already in Q3? Or should we expect that sometime during H2? Thanks. Yes. We are confident about that this is a volatility that we see between months and quarters. Nevertheless, it's it's never so that an order, you know, is booked in the future, you know, so so I can't promise that that we book everything that we have in pipe, but we the the visibility we have into the future is our pipe, and that pipe is strong.

33:05 And with our normal conversion rates, it's nothing there pointing to anything else than what's normally. And if you go back in history, you will see the same pattern. So so it's nothing there that worries us. Alright. Perfect. So so the, you know, the a little bit softer facade access orders, we should not see that really as an indicator of you know, a leading indicator for an even slower construction market. No. Is that I wouldn't say. No. Alright. So as I said, Facade Access partly you know, Middle East is is an important region for Facade Access, and there has been no project awards at all during the quarter, which normally there is. You know? But the pipe remains strong, so we know the pipe there. And the other piece is is this regular thing that overall volatility between months and quarters.

34:03 Understood. Perfect. Then jumping on to the P and L. Obviously, construction being the big dampening factor here in on sales and EBITDA. But so you talked about some nonrecurring items. If you possibly could sort of quantify the nonrecurring items in Construction? And also, just a question on the order book, which appears quite strong in Construction. Could you give any comments on the lead times? Could we see sales EBITDA picking up already in Q3? Or should we expect a little bit of a delay there? Yeah, I'll take your last piece first. Give any clear promise about the exact delivery, of course, we have visibility into our order book, but it's also a lot of shorter term on the service and the aftermarket, etcetera, so therefore it's difficult to give some sort of commitment quarter by quarter.

35:03 But yes, the order book picked up, which we're very happy to see, but it's not an overall, you know, if you look back in history, it should have been on a different level. So but we are doing things now also on the cost. It's not you can't change, as I've been saying a long time, you know, you can't change fundamentally fundamentally the cost structure here because that would, you know, tear down a fundamental piece both for industrial division and construction division, which we're not ready to do. So but we are doing still things, so we will save some money, so that will have effects for sure, and we will build a more sharp and focused structure, you know, based on the situation we have.

35:50 The one offs that you question, it is some one offs, so that's why we also mention it. So cleaning for that, we haven't, you know but it would more be, let's say, a bit normal to what we have seen over the last couple of quarters' margin. So it's small small it was a small extra drop now due to this. Yeah. Alright. Perfect. Then just I mean, obviously, you don't have a crystal ball, but do you see any change on the sort of underlying market demand in the construction segment also affecting HSPS, etcetera? Is it increasing a little bit, or is it still sort of the same with the very uncertain outlook? I like your question. You know? Is it increasing a little bit? I I wish. You know? But we said by the beginning of the year that we thought you know, we said beginning '25 that we thought it should come end of twenty five, you know, second half. We said beginning of this year that we thought it should come end of end of this year. But then, you know, last year, it was Trump with his tariffs. This year, it will it was Trump with his war.

36:58 So there's always these fundamental things, which is, you know, making it more challenging for making investments. You know? So then people delay investments into these new machinery and rather use them one more year. But it's no doubt these machines will need to be replaced one day. And, you know, in in the first years here, was also low investments, but then we had so much to do in other parts of the world that we gained. But that's also, you know, a little bit slower now, so that's why we are getting more significant effects. But I'm 100% confident this will come back. It's just a question of time, but I can't say now that I'm seeing it. Understood.

37:46 That was all for me. Thank you very much. Thank you. The next question comes from Anna Widstrom from DNB Carnegie. Please go ahead. Thank you, Ola and Silvan, for taking my questions as well. So just continuing a bit on the project delays that you mentioned for the Construction division, for example. Should we see a bit of that improving already in Q3? Or are these kind of delays expected to continue during the second half of the year for some reason? That I can't that would be the crystal ball again, you know, but the only thing I know and what we have seen over time, you know, is that there is volatility between quarters and months, and what we know is the project pipe that we are working on, you know, to projects that we're working on and trying to win, and and that looks strong.

38:47 And then when it will come, you know, and why they are delayed. In some cases, there's there is some delays in The Middle East due to the situation there. If that will fundamentally change, so so those things will start to, you know, be awarded during q three, I can't say. And it's it's, you know, it's it's just basically I can't say when it will be. But, normally, you know, some of them come and but, yeah, I can't make any commitments around that. Okay. But you haven't seen any, like, shift in the in this for the last couple of months? It's it's very similar to to Normally, it would be yeah.

39:35 So normally, it would be coming not too long from where we are. Perfect. And we also saw saw some improvements in the AWS division from both the recent initiatives, also from some product mix effect. So how much of this is related to product mix effect and is the current ordering supportive for It's a little bit difficult to sorry. You are far, far away, so it's difficult to hear. Could you repeat again? Sorry. So we we've seen some improvements in the HSBCS division from the recent initiatives, but you also mentioned a positive product mix effect. So so how should we view like, how much is related to product mix effect? And is the current order is supportive for that effect in the near term as well?

40:26 No. But we have a good effect from some segments where we are taking a lot of business, and then it's other segments where we where it's more slow moving. But the HSPS business is a very, very broad type of business. We are serving multiple segments and different channels to market, etcetera, so it is difficult also here to be making, you know, very reliable forecasts into each of these pieces of what's moving. But what we have seen for some time now is that specifically, you know, what we are changing towards also, because market is in general more challenging on the distribution side, so that we are more going more and more direct, finding end user segments where we can affect directly ourselves much more, and that's paying off.

41:22 We continue that work, so that's part of the transition journey also of this business. Okay. So we we we could view sort of the lion part of the improvement as a result of these initiatives that you Yes. Started building in the Okay, perfect. And is there anything other in the other divisions or so in the order intake that you wish to sort of highlight negatives in terms of product mix, or It's is it rather similar to what we've similar to what we have seen, and then you have pluses and minuses in all, you know, but this is again due to the normal volatility. We are not selling, you know, one small product with thousands or millions in quantity, so you have that type of volatility in our business. So it's nothing special else to highlight now.

42:17 Okay, perfect. Thank you so much. Thank you. The next question comes from Anders Jafs from SB1 Markets. Please go ahead. Yes. Hi, good morning, gentlemen. Maybe just a quick question on wind. Obviously, you're sort of cementing yourself on a higher margin level now, above 20%. And maybe you could take us through that a bit on how we should position ourselves looking ahead over the next second half of the year given your strong performance in this division? And also how you view The U. S. Market, which has had some policy backdrop, but how that should potentially affect the division going forward?

43:08 Yeah. I think you can expect this division now with the order intake we are having and the new levels that we are seeing on, yeah, both order intake and revenue that the drop through that we have seen also in the results will remain. It's no real reason why that should come back, which is very nice to see, of course, you know, because but this is a setup we I think we have in all divisions that when we get more volumes, we will also have a drop through because we have capacity in all divisions. Then US question. We US is good for us now, you know, and this was driven also by the policy of Trump, you know. First, they stopped everything, and then everything could be moving.

43:55 So for the next couple of years, it looks US will be good for us, absolutely. It's more longer term after '28, maybe '29, '30, which is a little bit more open on how policies will be made. But for the time being, the next couple of years looks very solid for us in The US. Perfect, perfect. Thank you. That was all for me. Thank you. There are no more phone questions at this time. So I hand the conference back to the speakers for any written questions and closing comments. Yeah, thank you. We have a couple of questions here related to tax. One is which countries are driving the higher tax rate, and the other is will the tax rate come down to 25% again? So I think I'll leave this to Sylvain.

44:50 Yes, thank you Uly. Regarding the countries, one typical significant Alimak country with a high tax rate is Germany first, where we have a tax rate significantly above 30% but as you understood from my comment the higher tax rates in the quarter it's of course it's a country mix so it's more earnings in the highly taxed countries and less earnings in those with a lower tax rate like Sweden, Dubai for example for us. When it comes to the second question which is what to expect next year, I won't have a super specific answer because it's the country mix matters and I don't have the full visibility but I don't expect us to come back to 25% and in particular with the ProBell acquisition you know which is earnings in US and Canada it will have a negative effect on the average tax rate so at this stage I would say that you can expect this to be close to what we see this year, but of course with some volatility depending on the country mix.

46:05 Yeah and if I may you mentioned Sweden, Sylvain, but of course, the the very low volumes for our for our Swedish construction factory will means that we have low profits here, which is also negatively affecting this. So when that will come back, that will also be, let's say, pulling the tax rate down. Correct. So that was the two questions we had on the web here, and I don't see any more coming. So then with that, we thank you for listening in, and thank you to everyone, and then till next time. Thank you.