Interim report
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Savox Communications Group’s Half-year financial report January-June 2026 SAVOX COMMUNICATIONS Half-year Financial Report January–June 2026
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Savox Communications Group’s Half-year financial report January-June 2026 Half-year Financial Report January-June 2026 Strong order growth and improved financial position support the outlook for the second half of the year APRIL–JUNE 2026 • Orders received amounted to EUR 13.4 (9.3) million, up 44% • Order book at the end of the period was EUR 36.2 (35.0) million. Including options the order book was EUR 61.5 (39.8) million • Revenue was EUR 12.4 (10.8) million, up 15% • Operating profit was EUR -0.8 (-0.2) million, or -6% (-2%) of revenue • Comparable EBIT was EUR 0.0 (0.0) million, or 0% (0%) of revenue • Cash flow from operating activities was EUR -2.1 (-1.2) million • The IPO significantly strengthened the company’s balance sheet and financial flexibility Net debt decreased to EUR 14.1 million, while cash and cash equivalents increased to EUR 16.4 million JANUARY–JUNE 2026 • Orders received amounted to EUR 37.1 (25.2) million, up 47% • Order book at the end of the period was EUR 36.2 (35.0) million. Including options, the order book was EUR 61.5 (39.8) million • Revenue was EUR 22.6 (20.2) million, up 12% • Operating profit was EUR -1.6 (-1.6) million, or -7% (-8%) of revenue • Comparable EBIT was EUR -0.7 (-1.3) million, or -3% (-6%) of revenue • Cash flow from operating activities was EUR -4.9 (-4.3) million GUIDANCE FOR 2026 (unchanged) Savox expects revenue to increase to EUR 65–75 million and the comparable operating profit margin to be 14–18%
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Savox Communications Group’s Half-year financial report January-June 2026 KEY FIGURES
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Savox Communications Group’s Half-year financial report January-June 2026 CEO Review Savox’s commercial performance developed strongly during the first half of 2026 . Orders received increased by 47% to EUR 37.1 million. Revenue grew by 12% to EUR 22.6 million. The order backlog increased to EUR 36.2 million and, including options, reached EUR 61.5 million, improving our visibility for the remainder of the year and su pporting our growth outlook. The strong development in our order backlog was not yet fully reflected in first-half earnings and cash flow. Comparable operating profit (EBIT) was EUR -0.7 million, and cash flow from operating activities was EUR -4.9 million. This was primarily due to the normal seasonality of our business, lower delivery volumes during the first half, IPO-related costs, and preparations for deliveries scheduled for the second half of the year. Market fundamentals remained strong throughout the review period. The modernization of defense capabilities, force protection, situational awareness, interoperability, and operational efficiency continue to be key priorities for our customers. We continue to see strong demand for both dismounted and vehicle-mounted solutions and believe Savox is well positioned to benefit from the long-term growth of the mission-critical communications market. Our business is inherently weighted toward the second half of the year, and deliveries under defense programs continue to be concentrated in the latter part of the year. A strong order backlog, high customer activity, and increasing delivery volumes support r evenue growth during the second half. At the same time, an improved product mix, economies of scale from higher volumes, and the scalability of our business model support improved profitability. We have prepared for increasing delivery volumes by strengthening our operational capabilities, capacity, and working capital. This supports our delivery capability for defense programs and other strategic customers. At the same time, the Safety & Security business is developing according to plan and strengthening a more recurring revenue base, supported by demand for critical communication and protection solutions. One of the significant events during the review period was the successful IPO, through which we substantially strengthened our financial position. Net debt decreased to EUR 14.1 million from EUR 36.6 million at the beginning of the year, while cash and cash equivalents increased to EUR 16.4 million. A stronger balance sheet provides us with greater opportunities to invest in technology, delivery capability, and growth. We maintain our guidance for 2026 and expect revenue to be between EUR 65 -75 million and the comparable operating profit margin to be between 14 -18%. Our confidence is supported by a strong order backlog, robust market demand, deliveries weighted toward the second half of the year, and the preparations we have already made to enable growth.
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Savox Communications Group’s Half-year financial report January-June 2026 Sales In April-June orders received increased by 44% and amounted to EUR 13.4 (9.3) million. Growth was driven, in particular by defence business. In January-June orders received increased by 47% and amounted to EUR 37.1 (25.2) million. Order book at the end of June was EUR 36.2 (35.0) million. At beginning of the year order book amounted to EUR 21.7 million. End of June order book including options was EUR 61.5 (39.8) million, up from EUR 26.5 million in the beginning of the year. The order book and strong customer activity level support the growth outlook for the second half of the year. April-June r evenue increased by 15% and amounted to EUR 1 2.4 (10.8) million. Growth was broad-based with all business areas showing growth. Defence business growth driven by Europe. Safety & security grew in all key regions . Industrial business grew modestly. January-June revenue increased 12% to EUR 22.6 (20.2) million. As in 2025, revenue in 2026 is expected to be weighted more toward the second half of the year. 16,4 21,1 30,7 30,1 21,7 36,24,8 25,4 16,4 21,1 30,7 30,1 26,5 61,5 2021 2022 2023 2024 2025 1H26 Order Book and Options MEUR Options Order book 15,9 23,7 9,3 13,4 41,3 49,1 58,2 51,7 47,9 37,1 2021 2022 2023 2024 2025 1H26 Orders received MEUR Q2 Revenue per market 2Q26 (2Q25) Revenue per business area 2Q26 (2Q25) 9,4 10,2 10,8 12,4 31,9 44,4 48,2 52,5 56,1 22,6 2021 2022 2023 2024 2025 1H26 Revenue MEUR *) Options relate to multi-year government defense and security programs. They are based on existing binding procurement agreements and represent potential follow-on or additional orders under pre-agreed terms. While exercise of the options requires a separate customer decision, they provide Savox visibility into customers' long- term needs and potential future orders. .
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Savox Communications Group’s Half-year financial report January-June 2026 Profitability April-June gross profit amounted to EUR 5.1 (4.6) million, and the gross margin was 41% (43%). January-June gross profit was EUR 9.1 (7.6) million and margin was 40% (38%). Seasonally lower sales volumes and weaker product mix during the first half of the year impacted development of the gross margin. April-June operating expenses were EUR 7.6 (6.8) million, up 12%. Items affecting comparability amounted to EUR 0.8 (0.2) million. Excluding these items, operating expenses increased by 2% . January-June operating expenses were EUR 14.2 (12.9) million. Items affecting comparability EUR 0.9 (0.3) million, mainly relating to IPO. April-June depreciations amounted to EUR 0.8 (0.7) million. January-June amounted to EUR 1.5 (1.7) million. Comparable EBIT for April -June was EUR 0.0 million (-0.0) and represented 0% (0%) of revenue. Comparable EBIT for January -June was EUR -0.7 million ( -1.3), corresponding to -3% ( -6%) of revenue. Profitability was primarily affected by a lower gross profit. During the second half , profitability is expected to be supported by favorable product mix, economies of scale in production, and the operating leverage. The rolling 12-month comparable EBIT margin provides a more representative measure of underlying profitability and was 14.1%. April-June o perating profit was EUR -0.8 (-0.2) million, corresponding to -6% ( -2%) of revenue. January-June operating profit was EUR -1.6 (-1.6) million. April-June net financial expenses were EUR -0.5 (-0.9) million and included a positive impact of EUR 0.3 million related to the termination of key personnel incentive agreements in connection with *) Gross profit is an alternative performance measure representing revenue less production-related expenses, including production personnel costs, other production expenses and depreciation. 6,1 6,6 6,8 7,6 15,5 17,6 20,9 21,3 24,5 14,2 2021 2022 2023 2024 2025 1H26 Operating Expenses MEUR 0,0 0,0 - 3,5 0,7 2,3 5,9 7,7 -10,9 1,5 4,7 11,3 13,7 14,1 -15,0 -10,0 -5,0 0,0 5,0 10,0 15,0 20,0 -5 0 5 10 15 2021 2022 2023 2024 2025 1H26 Comparable EBIT MEUR and R12M MarginQ2 comp EBIT Margin LTM 3,0 4,1 4,6 5,1 25,0 15,8 21,0 7,6 9,1 33 40 45 38 40 0 10 20 30 40 50 - 5,0 5,0 15,0 25,0 35,0 2023 2024 2025 1H25 1H26 Gross Profit and Gross Margin % Q2 GM%
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Savox Communications Group’s Half-year financial report January-June 2026 the IPO. January-June net financial expenses were EUR -1.4 (-1.6) million. April-June net profit was EUR -2.0 (-1.3) million. January-June net profit was EUR -3.9 (-3.4) million. Financial position and cash flow April-June cash flow from operating activities was EUR -2.1 ( -1.2) million. Profitability was seasonally lower, while working capital investments made in preparation for higher delivery volumes in the second half of the year, together with financing costs, increased cash outflows. January to June cash flow from operating activities was EUR -4.9 (-4.3) million. April-June investments amounted to EUR 1. 4 (1.6) million and consisted mainly of capitalized product development expenses. January-June investments were EUR 2.7 (2.9) million. In June Savox received gross proceeds of EUR 30 million from IPO recognized in the reserve for invested unrestricted equity. Company listing expenses totaled EUR 3.4 million, of which EUR 2.6 million, less the tax effect of EUR 0.5 million, was recognized in the reserve for invested unrestricted equity against the proceeds of the IPO. Listing expenses recognized in profit and loss for January - June amounted to EUR 0.8 million, of which EUR 0.7 million was recognized in April-June. The revolving credit facility was temporarily increased by EUR 0.8 million until year-end, and the Company continued to draw project loans to finance working capital investments. Proceeds from the IPO significantly strengthened Savox’s financial position. Net debt end of June was EUR 14.1 (38.5) million and EUR 36.6 million at beginning of the year. The ratio of adjusted net debt to comparable rolling 12 -month EBITDA was 1.23x, improving from 2.42x at the beginning of the year. Adjusted equity ratio was 45.0%. 1,6 1,4 3,0 1,4 2,6 4,0 5,8 2,7 2021 2022 2023 2024 2025 1H26 Capitalized investments MEUR -1,2 -2,1 -0,6 -2,2 3,4 0,1 -1,5 -4,9 2021 2022 2023 2024 2025 1H26 Cash flow from operating activities MEUR Q2
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Savox Communications Group’s Half-year financial report January-June 2026 Cash and cash equivalents at the end of the period amounted to EUR 16.4 (0.8) million. Investments Savox Communications Group’s investments during the review period amounted to EUR 2.7 (2.9) million. Investments represented 12 % (14 %) of revenue. In 2025, total investments were EUR 5.8 million, representing 10% of revenue. Research and development January-June research and development expenditure amounted to EUR 3.3 (3.4) million, corresponding to 15% (17%) of revenue. Research and development expenditure over the last twelve months corresponded to 11% of revenue. Research and development expenditure capitalized during the reporting period amounted to EUR 2.2 (2.3) million. Research and development expenses were aimed at strengthening the product portfolio, developing technological capabilities, and expanding customer-specific solutions. Research and development investments support the Group’s current operations, improve competitiveness, and create a foundation for long -term growth. Through development activities, the Group strengthens its ability to respond to rapidly evolving customer ne eds and to integrate its products seamlessly into customers’ broader system environments. Personnel Average number of employees during the review period was 311 (301). At the end of June 2026, the Group had 322 (307) employees, compared with 298 at the end of the 2025 financial year. Related-Party Transactions After the IPO related party loans of EUR 12.3 million including EUR 10.8 million capital loans were repaid at the end of June, together with EUR 0.9 million in accrued interest. The termination of the management incentive program in connection with the IPO resulted in the derecognition of EUR 0.3 million in related-party liabilities. During April–June, long-term loan receivables from related parties were reduced by EUR 0.5 million, and interest receivables of EUR 0.1 million were paid. Risks and uncertainties Savox Communications’ operations, revenue, and financial results are exposed to various internal and external risks and uncertainties. The key risks concerning the Group and related
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Savox Communications Group’s Half-year financial report January-June 2026 risk management practices are described in the 2025 report of the Board of Directors, and there have been no material changes in them. In addition, the Group’s financial performance may be affected by the timing, phasing, and execution of large defense programs, customer -specific procurement and acceptance processes, and the availability of key components in the supply chain. Although the underlying drivers of the demand environment remain favorable, the long duration of defense programs may cause variation in the timing of deliveries and the recognition of revenue. For this reason, disciplined execution and delivery management are key focus areas for the Group. Decisions of the Extraordinary General Meeting On 29 May 2026, the shareholders unanimously adopted written resolutions without holding a meeting pursuant to Chapter 5, Section 1 of the Finnish Companies Act. The shareholders resolved to convert the Company from a private limited liability company into a public limited liability company and approved related amendments to the Articles of Association. Following the conversion, the Company's registered name became Savox Communications Oyj (Savox Communications Plc). The Company's share capital of EUR 2,665,152 fulfilled the minimum share capital requirement applicable to a public limited liability company. The shareholders approved a 300-for-1 bonus issue (stock split), resulting in the issuance of 14,863,500 new shares. Following the share issue, the total number of the Company's shares increased to 14,913,045. In addition, the shareholders authorized the Board of Directors to: • resolve on the issuance of up to 5,000,000 new or treasury shares, including the right to deviate from shareholders' pre -emptive subscription rights, with the authorization remaining in force until the 2027 Annual General Meeting, but no later than 30 June 2027; • resolve on the issuance of shares, stock options and other special rights entitling holders to shares representing up to 1,491,304 shares, primarily for corporate transactions, incentive and remuneration arrangements, and other purposes determined by the Board, valid until 30 June 2027; and • acquire and/or accept as pledge up to 1,491,304 of the Company's own shares, valid until 30 June 2027.
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Savox Communications Group’s Half-year financial report January-June 2026 Decisions of the Annual General Meeting Savox Communications held an Annual General Meeting in Helsinki on 1 June, 2026. The meeting approved the financial statements and the Remuneration Report and discharged the Members of the Board and the President and CEO from liability for the financial period January 1–December 31, 2025. It was noted that the Company's Board of Directors ha d proposed that the profit for the financial year from 1 January 2025 to 31 December 2025 be transferred to retained earnings from previous financial years and that no dividend be distributed. The number of Members of the Board of Directors was confirmed as six. Paul Ehrnrooth, Heikki Allonen, Peter Eriksson, Päivi Marttila, Olli-Pekka Salovaara and Manu Skyttä were re -elected as Members of the Board. At its meeting held after the Annual General Meeting, the Board of Directors of Savox Communications elected from among its members Paul Ehrnrooth as its Chairman and Heikki Allonen as Vice Chair. Päivi Marttila was elected as Chair of the Audit Committee and Peter Eriksson and Heikki Allonen as members of the Audit Committee. Päivi Marttila and Heikki Allonen are independent of both the company and of significant shareholders. Paul Ehrnrooth was elected as Chair of the Nomination and Compensation Committee and Peter Eriksson and Päivi Marttila as members of the Nomination and Compensation Committee. The General Meeting confirmed an annual compensation of EUR 60,000 for the Chairman of the Board, and EUR 30,000 for Board Members . It was further noted that the Board of Directors has also proposed that meeting fees be paid to Board members for both Board and committee work as follows: Chair of the Board / Chair of a Committee: EUR 1,000 per meeting, Board Member / Committee Member: EUR 500 per meeting . Travel and accommodation expenses incurred by Board members in connection with Board and committee work would be reimbursed in accordance with the company's expense reimbursement policy. Audit firm KPMG Oy was re-elected as the auditor for the term 2026. Shares and share capital Prior to the start of the review period, the total number of the company’s shares was 49,545. On 29 May 202 6, the shareholders unanimously approved a 300 -for-1 bonus issue (stock split), resulting in the issuance of 14,863,500 new shares. Following the share issue, the total number of the Company's shares increased to 14,913,045. On 8 June 2026, the Company’s Board of Directors decided on a directed paid share issue related to the IPO, with a maximum of 2,798,508 new shares in the company to be issued. All the offered shares were subscribed for in the public and institutional offering pursuant to the terms and conditions of the IPO at an issue price of EUR 10. 72 per share. The shares
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Savox Communications Group’s Half-year financial report January-June 2026 were entered in the Trade Register on 22 June 2026. After the IPO total number of the shares is 17,711,553. Initial Public Offering and Listing On 2 June 2026, Savox Communications Plc announced its intention to conduct an initial public offering ("IPO") and list its shares on Nasdaq Helsinki. The objective of the IPO was to support the Company's growth strategy, strengthen its balance sheet and financial flexibility, broaden its shareholder base, improve liquidity in the Company's shares and enhance its visibility among customers, employees, investors and other stakeholders. On 8 June 2026, the Company announced the terms of the IPO. The offering comprised a share issue of approximately EUR 30 million through the issuance of up to 2,798,508 new shares as well as a secondary sale of up to 1,864,130 existing shares by Savox S.A., with an over-allotment option of up to 699,395 existing shares. The subscription price was EUR 10.72 per share. The offering consisted of a public offering in Finland and an institutional offering in Finland and internationally in accordance with applicable regulations. The subscription period commenced on 9 June 2026 and the offering was multiple times oversubscribed. The listing resulted in more than 2,800 new shareholders. Trading in the Company's shares commenced on Nasdaq Helsinki in June 2026 under the trading code SAVOX.
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Savox Communications Group’s Half-year financial report January-June 2026 The Company received gross proceeds of EUR 30.0 million from the share issue. The proceeds were recognized in the reserve for invested unrestricted equity. Directly attributable share issue costs of EUR 2.6 million, net of tax effect of EUR 0.5 million, were recognized in the reserve for invested unrestricted equity against the proceeds in accordance with IAS 32. Listing-related costs recognized in profit or loss during January - June 2026 amounted to EUR 0.8 million. Events after the reporting period No significant events after the review period. SAVOX IN BRIEF Savox is a Finnish supplier of critical communication solutions for professional users operating in demanding environments. The company serves customers globally in the defence, rescue, law enforcement, and industrial markets. Savox designs and supplies communication devices and systems that support operational performance, safety, and situational awareness. Its offering includes tactical communication and intercom systems, advanced hearing protection, rugged communication and computing devices, and related solutions used in both dismounted and vehicle-mounted operations. The company operates with an integrated business model covering product development, manufacturing, system integration, and lifecycle services. Savox works closely with its customers throughout the product lifecycle to support long-term use in critical applications. Savox is headquartered in Espoo. The Group has production operations in Finland and Asia, as well as sales and support organizations in key markets, including North America and Southeast Asia. Savox operates through its parent company, Savox Communications Plc, and through subsidiaries in selected international markets. Alternative performance measures Savox’s financial reporting includes alternative performance measures (APMs) in accordance with the guidelines of the European Securities and Markets Authority (ESMA). Alternative performance measures are financial measures that are not defined under IFRS standards and cannot be directly derived from the financial statements. Savox uses alternative performance measures to supplement information prepared in accordance with IFRS and to provide additional insight into the Group’s results, financial position, and development. Alternative performance measures should not be considere d a substitute for IFRS measures, but rather as complementary information. Because calculation
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Savox Communications Group’s Half-year financial report January-June 2026 methods may vary between companies, alternative performance measures are not necessarily directly comparable with similar measures used by other companies. Definitions of the alternative performance measures used by Savox are presented in the 2025 annual report and are presented below, where applicable, together with reconciliations to the closest corresponding IFRS measures. EBITDA, Operating profit and Gross profit
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Savox Communications Group’s Half-year financial report January-June 2026 Balance sheet ratios Alternative performance measure 4-6/2026 4-6/2025 1-6/2026 1-6/2025 1-12/2025 Adjusted equity ratio Equity 36 862 2 053 36 862 2 053 12 239 Subordinated loans 0 10 763 0 10 763 10 763 Adjusted equity 36 862 12 815 36 862 12 815 23 002 Total assets 82 264 54 331 82 264 54 331 62 327 Advance payments received 294 700 294 700 439 Adjusted total assets 81 971 53 631 81 971 53 631 61 888 Adjusted equity ratio, % 45 24 45 24 37 Net debt Non-current interest-bearing liabilities 11 275 17 740 11 275 17 740 24 730 Current interest-bearing liabilities 19 241 21 530 19 241 21 530 12 146 Cash and cash equivalents -16 426 -787 -16 426 -787 -308 Net debt 14 090 38 483 14 090 38 483 36 568 Adjusted net debt Net debt 14 090 38 483 14 090 38 483 36 568 Subordinated loans 0 -10 763 0 -10 763 -10 763 Fair value of Put and Call option -contracts 0 723 0 723 701 Other non-current receivables -393 -1 089 -393 -1 089 -889 Adjusted net debt 13 697 27 355 13 697 27 355 25 618 Net debt / EBITDA, comparable 12-month Net debt 14 090 38 483 14 090 38 483 36 568 EBITDA, previous 12 months 9 975 NA 9 975 NA 10 166 Net debt / EBITDA, comparable 12-month 1,41 NA 1,41 NA 3,60 Adjusted leverage ratio (Adjusted net debt / comparable 12- month EBITDA) Adjusted net debt 13 697 27 355 13 697 27 355 25 618 Comparable 12-month EBITDA* 11 101 NA 11 101 NA 10 604 Adjusted leverage ratio (Adjusted net debt / comparable 12- month EBITDA) 1,23 NA 1,23 NA 2,42 Net working capital Total current assets excluding cash and cash equivalents 38 248 29 836 38 248 29 836 35 471 Current non-interest-bearing liabilities* -14 121 -12 495 -14 121 -12 495 -12 623 Net working capital 24 127 17 341 24 127 17 341 22 848 Adjusted net working capital Net working capital 24 127 17 341 24 127 17 341 22 848 Fair value of Put and Call option -contracts 0 723 0 723 701 Adjusted net working capital 24 127 18 064 24 127 18 064 23 549
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Savox Communications Group’s Half-year financial report January-June 2026 Definitions of key figures and calculation formulas
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Savox Communications Group’s Half-year financial report January-June 2026 IAS 34 interim report January–June 2026 Consolidated statement of comprehensive income
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Savox Communications Group’s Half-year financial report January-June 2026 Consolidated balance sheet
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Savox Communications Group’s Half-year financial report January-June 2026 Consolidated statement of cash flows
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Savox Communications Group’s Half-year financial report January-June 2026 Consolidated statement of changes in equity
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Savox Communications Group’s Half-year financial report January-June 2026 Notes to the interim report Accounting principles The Savox Communications Group’s half-year financial report for January–June 2026 has been prepared in accordance with IAS 34 Interim Financial Reporting and should be read together with the Savox Communications Group’s 2025 financial statements. Savox Communications has applied the same accounting principles in preparing the interim report as in the 2025 financial statements. The information published in the interim report has not been audited. Seasonality Savox Communications’ business is seasonal, which affects revenue, profitability, and cash flow. Revenue, profitability, and cash flow are typically lowest in the first quarter and highest in the fourth quarter. Orders received by business area Revenue by business area Revenue by geographical market
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Savox Communications Group’s Half-year financial report January-June 2026 Intangible and tangible assets Contingencies and pledged assets Fair values of financial instruments Financial instruments classified within hierarchy level 1 have publicly quoted prices in active markets. Level 2 includes instruments measured using directly observable market prices. Level 2 includes interest-bearing liabilities other than publicly quoted ones and derivatives. Level 3 includes instruments for which direct market prices are not available in the valuation. The Group has classified in hierarchy level 3 a short-term convertible loan receivable as well as other short -term loans based on liabilities related to Put and Call Option agreements concerning the company’s shares. The estimate of the liability amount is based on the results for the financial years 2024 and 2025 . During the reporting period, the Put and Call Option agreements were cancelled.
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Savox Communications Group’s Half-year financial report January-June 2026 Other non-current assets
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Savox Communications Group’s Half-year financial report January-June 2026