to ask questions by dialing pound key 5 on their telephone keypad. Now, I will hand the conference over to the CEO, Eric Lindquist, and CFO, Hans Backman. Please go ahead. Thank you very much. Good morning, everyone out there. Good morning from me as well. Just a few things when it comes to the order. We are going to introduce, of course, ourselves and some figures towards we have the Q&A sessions. We would be pleased if there would only be two questions per individual. Also, try to end this Q&A session around 12:00 P.M. because we have other commitments shortly after noon there. With that said, once again, welcome to this conference call. I think that the headline is that we are very proud to be able to present these figures as we are today. We've said several times that the organization that we represent, Hans and I, is very, very strong, very, very proud to have, you know, the ability and possibility to lead this organization. That's the headline. Of course, it's a gradual recovery, that we, if you go through for the, for the group. Of course, when comparing the situation in the world today, compare what it was when we started here, it's quite a bit of a turbulence. That's, of course, that. Also the increased strength of the Swedish crown, from many perspectives, is very nice, of course. When you compare figures, it's a little bit shadowing the real organic growth, which we therefore have explained very explicitly, when separating it from the currency effects. We gave a very bold promise from the very beginning of the year that we were going to be back at the intervals of the historic levels for each respective business area. We are, of course, very proud that as far as we've come, and we are very transparent with where we are, as we are with the targets. Of course, those disturbances that are just described, of course, they are causing some hindrances, but we are trying our best to give you some kind of a guidance where we possibly could land at the end of the year. You've seen them. We don't have to dwell so much about it. It's very pleasing, of course, that there's growth there well beyond the 1.2. It's like 4.6% organic growth. What's also very pleasing is that we see that the gross margin is going up and the operating margin is moving in the right direction. Of course, moving into the quarter as such, the third quarter, we see that the gross margin to be improving, improving, and the operating margin is now up to 11.3%, which is, of course, what we like when the margin is double digit. That corresponds well to where we like to be. If we just continue a little bit about the graphs that we typically look at, I mean, we see now that the income is gradually coming back, and that's even more described perhaps in the next graph, where we see the curve is going in the right direction. When we look at, again, it's an improvement quarter after quarter. Of course, it's a recovery all over, you can say, but in smaller portions, of course, whereas Germany, Sweden, and Netherlands, particularly on the residential side, the U.S. remaining stable, and also Italy very much on the commercial side, which is very pleasing to see. We also see that there is a more traditional seasonal pattern, particularly with Stoves and with climate solution. It is also pleasing to note that all the efforts that we've done during the year, despite the action program that we took, you know, R&D remained at the same level, and also the sales forces, and that is paying off now, of course. You can't look at things short-sighted. You have to be very determined long term to be successful. Of course, we have now come up to the third quarter in, when it comes to the margin that is, you know, just in the right, can I say, level and the right span. Of course, we are giving a little bit of an indication here on this slide saying that, within margin of error, we should be close to the 13. That is, of course, again, a very bold statement, but you have been following us. We have been giving you very clearly the intervals. Now, with six weeks remaining, it is very important. We are into a quarter that is typically decent when it comes to invoicing and order intake. The best thing we can state is exactly what you read there. That is also stated in the report. We are very cautious not to do anything or mention anything or do any sayings here that would not correspond to the report as such. Hans, of course, is going to dwell a little bit more on the quarter as such on Climate Solutions. It is a good growth, organically. We have seen that, of course. The margin here so far just south of 12%, whereas the quarter is coming in above 13%. It is a balancing act, a very delicate balancing act for the rest of the year. Coming into Element, there, of course, when the whole industry of Heat Pump s went down all over Europe, and, of course, being a main supplier there of components, they also took a dive. They are a little bit behind. We We also see now that that is coming along. Electrification in general, of course, and also the rail segment, which is very pleasing to see. The industrial segment is more a reflection of the somewhat cautious or subdued market, particularly in Europe. As a comparison, we can say that in general, Europe seems to be a little bit more cautious or subdued compared to the U.S. or the North American market. If we just look at the same sort of forecast again, if we dare to say, or what we could offer as far as margin predictions, we say it is going to be some close to the eight, of course, but we also give a little bit of a buffer for ourselves, depending on how the last weeks will look like. Particularly on the element side, being a supplier or sub-supplier, we know that although the order intake could be good, for obvious reasons, no customer wants to sit on too large inventories. It is always delicate to do the forecasting for the element side. Looking at the figures there again, it is good growth. Operating margin is back at 6.8. When we look at the quarter as such, Hans is going to come back to that. It is again, of course, on the higher level. It is up to 7.4 for the quarter. Quickly into Stoves. There, of course, we noticed that, and already indicated in the second quarter, that it would be difficult to arrive at the old or the interval that we have been, where we have been, or where we used to be. We need a few more quarters. I think that is, or we think that is more to be referred to, the overall cautiousness, particularly in the European market. In North America, the markets are fairly buoyant, but there we have difficulties with the manufacturing of Stoves that's taking place in Canada and then being shipped into the U.S. There we take a hit when it comes to the margins. We very consequently say that it's going to take us a few more quarters to come back to the span that we typically talk about between 10% and 13%. There we see, of course, it's a thin margin. The quarter as such is around 3%. It's not getting any worse. If we were bold enough, we could say that we've seen the bottom of also the Stove market, with the figures that we've seen that you're in quarter three with a margin of 3%, which of course is not satisfying, but still is slightly higher than the previous quarter 24. And, just a few one steps in here. I mean, climate, it's a typical graph really on the pie chart here, where climate being like two-thirds roughly, and then element, and then Stoves. On the distribution side on profit, profitability, then we see that, of course, climate solution coming out quite dominating here. Geographically, not that much has happened. North America remains slightly above 30%, the Nordics slightly below 20%, and then Europe, of course, around the 45%. No dramatic changes really there. I think with those quick comments, I hand over to Hans, but I've got a lot of eager people out there, you know, that would like to put questions to us. All right? All right. Thank you, Eric. Yeah, I'll try to be quick, but not rushing it, but to allow for questions, of course. Before we jump into Climate Solution s here, I would just like to mention from the main report, so to speak, and for the group, the tax rate. Some of you might have seen that the tax rate in the quarter is above 30%, and that is not a new normal as we see it. It's rather a matter of timing differences now, very much related to the introduction of the so-called big beautiful bill in the U.S., where the rules and regulations around capitalization of R&D expenses has changed, and that has led to a couple of one-off effects, but that doesn't change anything in the long run really. That's the major reason for that tax rate going up. If we then move into Climate Solutions, I mean, Climate Solutions definitely shows a very robust performance in what still is a challenging world in a way. It's a very strong comeback from the challenges we faced last year and the profitability level at the time. We've been able now to grow sales with some 7% organically, but then of course, curve. Due to increased sales and also our cost efficiency programs that we have undertaken, profit has improved by close to 50%, coming up from SEK 1.5 billion to more than SEK 2.3 billion, landing in this operating margin at 11.9%, like mentioned. On a 12-month rolling basis, we are up to roughly that level, 11.8%. In the quarter, sales grew by some 8%, and gross margin improved even further, coming up to 35.4%, up from 32.5%. That is a good achievement as well, coming from the better volume that we get. Profit grew by another close to 29% or almost 30%, more than 29%, landing in the operating margin there at 14%. It is a very robust performance and a robust and strong comeback from last year, showing our ability to adapt cost levels when market conditions change and also to reap the benefits of a good volume that comes in. In terms of a split of sales per geography, there is virtually no change at all from last year. It is very stable with Europe, mainland Europe being 50%, our home turf here up in the Nordics being slightly north of 22%, and North America with a solid quarter of total sales. NIBE Element has also shown very robust performance in a challenging world. Here we are really exposed, as you know, to many segments in many parts of the world. Organic growth here was above 6%, but then again, the Swedish currency took away a large portion of that, landing it then at 2.9%. Gross margin took a jump up here from 19.8% - 21.1%. That is a nice improvement. Profitability itself coming up with more than 30%, landing in on the 6.8%, which leads then to a 12-month rolling that is around that level as well. In Q3, sales actually grew even more, organically, that is close to 9%, but again, with a headwind from the Swedish currency. Gross margin continued to improve and profitability again, and we came very close to at least the lower range in the interval for our historical profitability ranges there at the 7.5%. Very close to the eight and a nice step in the right direction. Neither here have we seen any large changes in terms of split of sales per geography. That is here with North America being a very strong portion of that business. I would say when it comes to Stoves, that despite these very challenging market conditions that they have experienced, first, an overconsumption, you can say, during the COVID period when everyone renovated their homes, and then when Putin invaded the Ukraine, leading to a lot of people wanting a freestanding and alone, you know, off-the-grid type of heating system. After that, a period with low energy prices, higher interest rates, low new build. Despite all of those challenges, the business area has defended its position quite well. Despite, I mean, an organic decline there of 8% and more than 11% when you include currency, they have been able to generate a profit here and continue to spend time and money on interesting products and market activities for the future. Here, the performance for the last past 12 months is just above 4% and far from where we're used to being, but not that we see there is any in, coming back to a stronger performance as soon as the market returns. I think we see that a little bit in Q3. Here, sales dropped organically by 1.6%, so much less than before. With currency again, it's obviously a drop there, which is much larger than that. Despite this drop then of 7%, we were able to defend the operating profit from last year. It remained on the same level, generating a margin there of 3%, which shows the ability also here to take out costs and, of course, keeping a portion of them on board or a good portion to be able to meet unexpected better demand going forward. In this area, we see a small shift or a clear shift in a way in the distribution of sales in the sense that North America has increased, increased up to 37% from 32% of last year. That, that's the major change. That shows that North America has actually, from a sales point of view, been quite decent. What then has hampered the picture for us is, of course, that we have our manufacturing in Canada. This is where the tariffs have hit us from a profitability point of view. Moving then into the balance sheet, there are no major changes here. We have a fairly stable balance sheet. We've been able to amortize, both on intangible and, or, depreciate rather, intangible and tangible assets. The investment level has come down a little as well, which we will see on a slide later. On the liability side, you can see that both the interest-bearing, long-term interest-bearing liabilities and the current interest-bearing liabilities both have come down, which we also will see the effect of when we look at the net debt figure soon. The performance then and what we have on stock, so to speak, has an effect on the cash flow. We've had a good cash flow from the operating activities of SEK 2.9 billion, up from just below SEK 1.8 billion for the corresponding period of last year. You see a changing working capital, which is negative with SEK 1 billion. That is solely related to an increase in receivables. It's the exact same situation we actually had in both in been reduced and accounts payables have contributed in a positive way. It's a clear result of us invoicing more and we've not changed any payment terms really. This should eventually. On the next line, you see that the investment in the current operations has decreased by some SEK 500 million, leading to an operating cash flow, which is +SEK 420 million rather than -SEK 450 million of last year. We have had some amortization of loans and things, affecting the change in liquid assets. The currency change we cannot do much about. A few comments here on the key financial figures. We have a fairly decent amount of cash on hand, the unappropriated liquid assets. The number there is actually correct. I mean, the SEK 5,119 million, which was the exact same a year ago, but if you look into the report on page 13, I think it is, you see that the composition is different. It is a good portion of cash there. Interest-bearing liabilities have come down, and the net debt is now, which is very pleasing to see. We typically amortize our loans and liabilities fairly quickly after acquisitions. What took a little longer this time was, of course, the acquisition of Climate for Life, one of the largest acquisitions we have made, and then a market that took a very strong downturn after that. We are definitely heading there in the right direction. The equity assets ratio is solid as well, being above 45%. Just a quick comment there on the working capital. If we look upon it, excluding cash, it has also been improved from last year with more than a percentage unit. We are still targeting 20% as an intermediate target, so we still have some work to do, definitely moving in the right direction. Moving in the right direction are also these key figures, although they are, of course, not where we want them to be yet, but they are heading there. Return on capital employed now 9%, up from 7.6. Return on equity also above 9 there, up from just below 7. And a profit per share that has increased, just like equity per share. Things are slowly but surely moving in the right direction. I do not comment upon the share price, especially not today, I think. By that, I am done, so to speak. If you want to add something before we open up. No, I think we open up now. As we say, about two questions per individual and then we take it from there. All right. If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Uma Samlin from Bank of America. Please go ahead. Hi, good morning everyone. Thank you very much for taking my question. Two for me, please. First question is on the Nordic markets. I was wondering if you could give us a bit more color on the lower growth in the Nordic this quarter. It seems like it is - 1.5%. What are the main drivers there and what trajectories do you expect in Q4? Okay, we should, I think that the Nordic market in general. Solution now, are you talking about the whole NIBE Group? Yeah, the whole group is the one that you have reported. Yeah, okay. That is fine. I think that, of course, the contraction is substantial, as we said, in the Nordic when it comes to Stoves. That is, that's very obvious. Also, we noticed that the industry as such is not that strong in the Nordic region when it comes to the heating element. I think what's keeping it up at a decent pace is still the climate solution. I think the consumer cautiousness when it comes to Stoves, that's certainly an observation. Also, that the industry in general is not that strong in performance, which is a heating element, whereas Heat Pump s are keeping up fairly decently. Okay, that's super clear. Thank you very much. My question, my second question is on your margin guidance. I guess if you assume that Climate Solutions will reach the corridor of 13%-15% for the full year with some margin of error, let's say around 13%, does that indicate, I guess, significant upside in your EBIT margin profile in Q4? Would that be then like trending more close to 15%? What would you expect to be the drivers of the step-up in Climate Solution margins in Q4? I think that, to start with, as we mentioned, the seasonal, or the seasonality is back. So half here is a little bit weaker and the second half is a little bit stronger. That is the traditional pattern that we have had prior to pandemic and those years, you know, with crazy, if I may call it, energy prices. Of course, quarter three and four traditionally should be stronger. It is very difficult to predict anything. We try our utmost to give you some kind of an indication that, if we now say, as we say, regarding Climate Solutions, of course, that is the best hint we can give you. It's impossible to say you're going to be so and so, I think that's as far as we get on the Stove side. Of course, we saw already after Q2 that it would be difficult, very difficult to arrive at, within the span. That is also clearly indicated now. That does not mean that we would not have an uptick again. It's just that they came into this downturn a little bit later. First quarter 2024 was not bad at all, whereas the other ones were really taking a hit. It is more a matter of that they are staggered a little bit when it comes to sales and profitability. Yeah, that's super helpful. Thank you very much. Thank you. You're welcome. The next question comes from Karl Bokvist from ABG Sundal Collier. Please go ahead. Thank you and, good day. The first one is just a follow-up to the margin here and especially if we think about climate, because historically the fourth quarter's margin is on average lower than the third one. If possible, if we take aside the seasonality effect here, I see volume is one thing, but what other drivers do you think could help the margin in the fourth quarter help you approach the full year target that you guide towards? I think that we are indicating if you think, you know, that are moving in the right direction when you talk about, just after quarter productivity is one factor. Also, the ambitious program that we have across the business areas Element and Climate Solution. I mean, there are no magic factors, but there are some factors that we feel will continue to assist the profitability. Okay. Understood. Yes, understood. The second one is on the receivables point that you mentioned, Hans. Historically, we kind of balance between receivables and payables have kind of yielded a net neutral situation, but for the last couple of quarters the receivables have increased more than the payables. How long do you think this kind of gap will be before we normalize? That's very hard to predict. I think the result of the increase in the receivable, a consequence of the seasonality kicking in and with us invoicing more, so to speak. Typically the invoicing takes place in the latter part of each month as well. It is typically weaker in the beginning and then a lot happens and then you do not collect it until the next period. On the payables side, we have a little bit more deliberately than before begun reviewing payment terms without treating our suppliers bad in any way, but to make sure we have competitive terms. When it is going to level out, it is hard to predict. Okay, understood. Thank you. The next question comes from Christian Hinderaker from Goldman Sachs. Please go ahead. Thanks for the opportunity. I am going to follow up on the working capital side if I may and on inventories, 23.9% of last 12 months revenue. I appreciate we are improving quarter on quarter, but still above the sort of long run average. I guess firstly, do you anticipate a seasonally strong Q4 for inventory? And then longer term, how do we think about the inventory level required to support growth, either as a percent of sales or perhaps on an inventory days basis? That's the first one. I mean, as Hans mentioned, of course, we like to drive down the inventories. I think that there's been a little bit of cautiousness here now, from sales because we don't like to have any disturbances when it comes to deliveries. We know that everyone is on the tiptoes out there. Of course, it's very tempting to say, now we're going to bring down the inventories. I think that we and our colleagues, we really have to restore our, should I say, reputation in the market by really delivering promptly. I think that the discipline is coming back. I think the next step is keeping the discipline and then very diligently moving down inventory levels further. There is a cautiousness on our side and also our colleagues, I am sure, that no one wants to sit out there saying that, oh, well, now we have like so many more weeks of delivery. That is a no-no go for us. I do not think that is a, I think that is pretty much a symbol for the whole, for the whole industry. That was my immediate answer. No, no, absolutely. It is very correct. If I just may add, I mean, what we are taking down also step by step takes a little bit longer, but it is a deliberate work to do it. Of component inventory. As you know, we had delivery issues, so to speak, during COVID, because we could not get products on board to the extent we needed. When we could source something, we sourced it to the extent possible. That inventory, given the strong shortfall that came afterwards, is now being used step by step and being reduced. As Eric is pointing out, without disturbing any production that we have throughout the group or deliveries to the customer. Okay. Just to be clear, the pre-2020 levels is probably an unfair number to think about in the immediate term. I think it is the reverse picture. There was an enormous demand, or if I say quite a heavy demand, and then we were lagging. Of course, the figures turned out to be very, very nice, perhaps a little bit bigger than or better than we really, you know, deserved being viewed for or criticized for or evaluated for. Now we come from the other side. Now sales is picking up. We are cautious. I think that we have to take it step by step and bring it down perhaps to 20 at least and then take it from there. Okay, thank you. My second one is on the action program. In the Q4 presentation last year, you gave a summary of the potential split for those savings by segment. I suppose firstly, is it fair to assume that the 73% of savings have come in Climate Solutions, as was set out in that slide, or has there been a sort of readjustment as we've moved through the year? No, Hans, you. Yeah, no, I think that the calculations we made at the time and as the program, you know, evolved, so to speak, they were pretty accurate. That is what we see has come in as well. Given that the stretch in the return to normality has dragged out a little, we have undertaken a few more saving actions. That is all kicking in now, you can say, according to the program. Running a business, you always have cost reduction initiatives. It is mainly related to the program kicking in as we planned. Yeah, it is fair. Yep. Okay. Thank you very much. Thank you. The next question comes from Johan Sjöberg from Kepler Cheuvreux. Please go ahead. Thank you. I have a question starting off with the Climate Solution s. Eric, if you could, you're talking about, sort of demand being back to, or, demand for, for next year. You're talking about, external consultants and they, they share, or you shared, their view upon sort of the growth. There are a lot of reports out there on, on the Heat Pump market in Europe, especially. Could you sort of give some sort of ballpark range? What is the sort of the underlying assumptions you are looking for, or basically the consultants are looking for, which you are, you agree with? As you say, there are so many reports out there. Some are very biased and some are more, you know, I don't know where statistics come from. I think that you can get reports anything from five to a few double digits plus, like anything from five to 12, depending on which report you read. The common denominator is that no one foresees a decline any longer, but rather growth, but in various, you know, various sizes or various numbers, whether it is five or seven or 11 or 12, it is very difficult to predict. What we take away from all those reports is that we, the tide has turned. We are back on a market that is getting or growing again, which is very pleasing. Of course, it is up to all the colleagues out there, including ourselves, to do as much as possible out of those figures. Perhaps, as we said before, you know, we all love when the growth figures are phenomenal, but not necessarily do the customers always benefit from that. I think that, or we, I, we, believe that a growth in an orderly fashion is better for everyone because then the installation work is done professionally and the distribution flow works much better. Those figures indicated, I think that would to us mean that it's a healthy growth possibility, but still in a way that they're going to make things, you know, materialize in a profitable and decent way for us as manufacturers, but also for the installers out there and for the end users. That's very clear. Also, just looking at the different segments in Climate Solution s also. I mean, looking at sort of the, what is Heat Pump s and of course the different segments within the Heat Pump, but also you got the water boilers. Is it a big, is it a big difference between the growth rates right now between sort of, if you take sort of the bigger sort of sub-segments not going out to sort of, add to water or anything like that, but more sort of between the different bigger, bigger segments within Climate Solution s, is it bigger, is it a big difference in growth right now? Yeah, I think that the water heaters, if you talk about them, they have a more modest growth and that goes for all over, of course. That's pretty much, construction is down, new construction is down. That is where you typically, you install those when you build new houses and so forth, although the houses themselves, they might have Heat Pump s or district heating, but you have those modules there. They typically have one or two of those water heaters. When construction is down, it is also down. The water heater market is very, very cautious. A few percentage points, but does not have the same growth at all as the Heat Pump s, but stable, decent margin. It is not something that we should neglect by any means, but the growth pattern is strictly on, you can say, on Heat Pump s. Got it. Hans, also a few questions for you, if I may here. You mentioned in the report the impact on sales from the currency. Could you also talk about the impact on EBIT just to get sort of a feeling for the dilution, if any, from FX in the quarter? If that's something you can provide us with. Yeah, it's roughly the same. I mean, the margin is not influenced to a large extent. Of course, you can convert less dollars or euro or what have you, at a poorer rate, so to speak, or stronger or weaker rate, which has an impact. In percentage wise, it doesn't deviate too much from the effect on the sales side either. Okay. Also, your comments on the Stoves business, also, the tariff, of course, impacting, of course, impacting even more now when you have a higher share of sales in North America coming from Canada. What are sort of the impact from tariffs in the quarter, if that's, you know, just give us some sort of feeling. Also, what are your, your, how can you mitigate that? How long time would it take before you can mitigate these tariffs? Thank you. Substantial. We won't dwell on any specific numbers, but we can say so much that, of course, taken by price increases. At the same time, we've said we're never going to put our position on the market in jeopardy by being ridiculous in that. We just have to trim and trim and trim and be more efficient, try to come back to a margin that is decent. We are taking quite a bit of a hit during Q3 and of course during the whole year. We do not expect that to improve, but price increases take away a little bit. We just have to be more efficient and streamline. Those are the only two recipes. Thirdly, you could possibly, but that is more of a guess. I mean, the American manufacturer might be tempted to increase their prices when they see that it is difficult to import from other countries, but that is speculation. I would not dwell on that. We are between a rock and a hard spot, as I say, but we are going to come back to a decent margin by streamlining and doing everything possible without jeopardizing our position in the market. That was a long answer to you, but because that is a little bit of a long answer to us. We are, of course, doing our utmost just to keep and increase our, our position in the U.S. because we are well positioned. That now is really up to productivity and doing everything we possibly can to combat the difficulties with those tariffs. That was a long answer. That's it. That's fine. I'm not going to ask any more questions. Thank you, sir. Thank you very much. Thank you. The next question comes from Anders Roslin from Pareto Securities. Please go ahead. Yes. Hello. I was curious about your thoughts about next year, for Europe and Heat Pump s. I mean, you this year have been characterized by the stocking coming to an end, and now it's the true market growth we are looking for. I mean, at least in Germany are sort of coming with some growth into next year. How do you see structurally on Europe for next year? No, as I said there, we assume that Europe will grow, overall. Of course, Germany is going to be one important contributor to that growth. There is important to distinguish between those applications and what the number of Heat Pump s really being installed, because you have a sort of a period once you have the application in and it is approved, you do not necessarily start to install the week after. You You have an allowance. Is it like how many quarters? Hans, was it now? Like, several many months. Yeah, I do not recall exact. The true figure is around 40% or well above 40% that has been installed, partly taken from inventories, of course, and partly from producers directly. We believe strongly that there'll be real organic growth for the manufacturers next year, because now we should be out of the inventory that's been dampening things. The overall picture, I mean, now again, sitting here or standing here on the 14th of November, making predictions for 2026. If you ask us, we look at the European market in a fairly positive way, because also that the interest rate dive, or at least, they come down, that is also sending a report to consumers or sending a signal to consumers that, okay, now it's more decent. They can start to build homes, which is very important when you start to build homes in a country. That's a driver for the whole economy. Without too many other disturbances, but then you never know about Europe, what's going to happen. We believe that it's going to be a stronger year, 2026 than this year. Of course, that is a prediction. I don't know whether I answered your questio n, but I tried. No. Yeah, but that's interesting to hear. That's all for me. Thank you. Thank you. The next question comes from Christian Hinderaker from Goldman Sachs. Please go ahead. Oh, you're back, young man. I only went back in the queue, so I'm surprised to be sitting for the follow-up, but I appreciate it nonetheless. Thank you. Yeah, I wanted to ask, the Selmo acquisition you made in Italy during the quarter. I guess interesting in terms of its components focused, smart thermostats and so forth. How should we think about that transaction and the scope of your broader M&A priorities looking forward? Is that illustrative of the type of deals you're looking at, or are you still balanced in terms of also reviewing, sort of OEM type transactions? Thank you. Mm-hmm. No, I think that we've received a number of questions early on today in other forums, and, we say we're always working on acquisition. Nothing has come down. Of course, 2024 was a year when there weren't that many, you know, signings carried out. I think this is a decent acquisition for Element with a turnover around EUR 20 million. It's not gigantic, but it's profitable. It's a company that we've known for a long time. It's a company that we've been working with a long time. We don't foresee any issues, if I dare to say that, because we know the founders and a very good relationship. It is one of those add-on acquisitions that we really like to do, family-owned companies, and they remain helping us. It is perfect. I do not know whether I answered that question fully, but it is within Stoves and within Climate Solution, ideal partners, and that we try to trim and try to bring on board. Everything is timing, just like anything else in life. This Italian acquisition was something we have been discussing with them for a long time. All of a sudden they said, fine, should we really, now we really go? Then we are ready. You know, an acquisition takes more than a quarter too in our world. We like to come in on a friendly basis, not coming in as an intruder or, yeah, exactly like that. We like to come in as partners, and it takes time to develop that over years. Those are the most successful ones in our book. Okay. partners, and it takes time to develop that over years. Those are the most successful ones in our book. Okay. partners, and it takes time to develop that over years. Those are the most successful ones in our book. Okay. Thank you. The next question comes from Carl Dienberg from DNB Carnegie. Please go ahead. Okay. Thank you. Thank you very much. I was a little bit late there, and so apologies if this question has already been asked, but I wanted to come back a little bit on the topic of pricing. I mean, we talked about this for roughly two years now, and I guess, you know, earlier this year we were talking about inventory reductions amongst the distributors and increased campaigns on the back of elevated inventories. Now we hear, I guess, also from some of your listed peers that pricing environment on the hydronic side seemed to have been improving here a little bit towards the latter part of the year. I just want to hear your view here, on sort of pricing in general, and maybe, if you yourself have done any sort of definite price adjustments here in the latest months. Thank you. I think that's one, you know, sort of area we've been very cautious of informing you about, that we try to main actors because to sell premium product, you can't devaluate the value because short term that just deteriorates everything. Coming back again to the old stock situation, we had some of that. We've been very cautious of reducing prices, and therefore it might have taken a little bit longer to reduce those inventories because we know that if you sort of spoil the market with lower prices, then that is very contaminating. Further on in the distribution chain, and I'm heating this again, of course, when our distributors or installers have been sitting on inventories, knowing that also might have been refrigerants and stuff like that, they see a new wall coming towards and say, as of such and such date, they have to be very tempting just to free the capital tied up. Our own method has been sit still in a boat, be very cautious. As far as price increases are concerned, monitor that very, very cautiously again, being very, you know, observant. Of course, I, we agree what you say. We also see that there are some signs of price increases in the market, which is very natural once it's been stabilized as it's been. I think no one is the winner in a price war, just like any other war. All are losers. Mm-hmm. Mm-hmm. Mm-hmm. Fair enough. I wanted to ask also a little bit coming back to the balance sheet and sort of gross margin development. I mean, quite a good rebound here in Q3, but still, as you evaluated earlier on, you're still in the situation where inventories, your own inventories are on the way down. I just wanted to ask a little bit on the sort of internal production rates for you. Obviously, you've been adding capacity quite dramatically in the last couple of years, but would you say that the shipments you are delivering on right now, is the utilization in your base production, excluding the capacity expansion? Is that fairly much one to one right now, or are you still suffering quite tangibly on the gross margin from subutilization? I mean, we can't avoid depreciation. I think that's kicking in, of course. Of course, that's going to be lesser the more we sell. That's very obvious. At the same time, in the other direction, those new facilities that we have are also offering better productivity. It's not so easy to say that, okay, now we sit with this tremendous depreciation. Of course, it's going up, but they're also built for a reason, not only for volume increase, but also to do things more rational. So that's working in the other direction. I don't know whether I answered your question, but there was an attempt to. No, no, but I, yeah. Yeah, yeah, absolutely. No, but I guess, I mean, my question was a little bit, and I understand there's multiple variable components to it, but I mean, assuming if you would see further volume support next year, it sounds like you could still have some upside on that gross margin development even now when we look at Q3, where you saw quite the good development year on year at least. I think that we have to give you right there. Yep. That's a correct assumption. Sounds good. Okay. Thank you very much. Thank you. Thank you, Carl. The next question comes from Karl Bokvist from ABG Sundal Collier. Please go ahead. Oh, boy, you're also back, Carl. Yeah, I'm surprised too. I just wanted to go back to one thing that you've been very good at in the Nordics, which has been kind of Heat Pump products towards new buildings or new residential buildings. If we think about both Nordics and Europe potentially seeing a bit of an uptick in new residential construction, how have you worked with that kind of product assortment in other areas than Sweden? Mm-hmm. No, I think that if you talk about the exhaust air Heat Pump s, we've been working with that as well, but that comes to legislation, the construction legislation and also preferences for what you can do. I think that we see a very positive view on our next generation of Heat Pump s where you also can, like I'm talking about the exhaust air Heat Pump s now in well-insulated homes. There have been, we also had a cooling capacity. When you come a little bit further south, there's been a question, could you also possibly cool our facilities in the summertime? I think that has given us quite a stir in demand. That's one way of mitigating that. Of course, when you have lower standards, you have to adapt to that when it comes to building standards. You know, here we have a very tough situation up in, for instance, Sweden, or that's pretty much the same in the Nordic markets. You can say that you can only use 40 watt per sq mi year, and that limits your amount of energy of 6,000 kilowatt hours per year in-house, and that's including tap water. Of course, that is quite a challenge, but that's also something you can, we can, we use when selling that to house manufacturers and customers when we go in other countries. Ventilation and Heat Pump s in Holland or Netherlands, for instance, that's very, very important. They are tagging along the same lines. Also in Germany, that is pretty much the standard that you have to recapture the ventilation air or the energy in the ventilation air. The larger Heat Pump s, they're typically for renovation. When you replace a gas burning boiler or an oil burning boiler with an output of some 16, 20, 18 kW, then of course you have to have a larger Heat Pump. Then you talk about a different vehicle or a different animal, but you still supply the same sufficient amount of energy to the radiators. Then you talk about refurbishment. I hope I answered your question. Yeah, partly then, I mean, it's just that you've built up a strong position in the Nordics. I mean, as you expand in the other countries, how you work to kind of get close to that level of relationship with the important stakeholders, house builders, et cetera, so that your invert blueprints, so to say. Very close with the installers to understand. Yeah. Yeah, yeah, yeah. Of course. Also, working with, you know, house builders and giving them the upper hand, the advances of using our products and demonstrating what can be achieved, having the Nordic market that's ranking first. You're welcome. There are no more questions at this time, so I hand the conference back to the speakers for any closing comments. Once again, thank you for the disciplined way you've all times, you know, you would like to have very, very much of a decimal comma and so forth. We, of course, could not do that, but I hope we've put some flesh on the figures in the report. Once again, thank you for calling in, and we see you, if not earlier, you know, beginning of next year when we report the full year. Thank you again. Thank you, everyone. Thank you. Bye-bye.