Welcome to our Q2 2026 earnings call. Once again, we navigated well in markets with mixed demand. Our strong underlying margin was mainly driven by our Specialized Industrial Solutions segment, which grow in targeted areas, including aftermarket. I'm Sophie Arnius, heading up Investor Relations. With me here in the room, I have our CEO, Rickard Gustafson, and our CFO, Susanne Larsson. After their presentations, there will be opportunities to ask questions. Let me just remind you how you do that. There are two ways to ask questions. If you have joined via the telephone, you can at any time press star and one to ask a question. If you are instead watching this call via the webcast, you can also, during the call here, type in your questions via the question tab, which you find above the slides. Without further ado, let's get started here, and it's a great pleasure to hand over to you, Rickard. Thank you very much, Sophie, and good morning, everyone, and thank you for joining us for this earnings call. Starting on the first page and draw your attention to the up right corner with the bar chart where you see that also in this quarter, we are in the positive organic growth territory. This quarter, we report an organic growth of 1.4%. It's driven by strong growth in Asia and also across our segment Specialized Industrial Solutions. We do see a remaining and generally soft demand in Europe, whilst the OEM market in Americas shows early signs of improvement driven by certain industrial verticals. Profitability-wise, we have a strong quarter. The adjusted operating margin improves to 13.9% in the quarter, and there are some key drivers behind this. Firstly, we do see a significant uplift profitability-wise in our Specialized Industrial Solutions segment. Secondly, our rightsizing program continues to deliver. In this quarter, we have some SEK 350 million in realized benefit, which exceeds negative synergies from the separation. Thirdly, we have also improved our profitability in the Automotive segment, which we are come back to shortly. Furthermore, there are also some limited contribution in the quarter from some support production to Automotive as part of the separation activities, and also some IEEPA tariff refunds that they have received in the quarter. Turning to cash, we have a stable cash flow in the quarter at SEK 2.1 billion, as you can see from this chart. It's somewhat lower than the same quarter last year. In this quarter, we have had cash impact of roughly SEK 700 million from our rightsizing activities, our Automotive separation activity, and also from some of footprint optimization. Turning to our strategic priorities, I'm pleased to report that our automotive separation is progressing in line with plan. I will share more details on that shortly. We have also announced an exciting venture in the humanoid space, where I also will come back with more details during my presentation. As part of building a strong business-driven value chain that are fit for purpose for a pure-play industrial business, we have also initiated activities to modernize and standardize our IT platform and make them AI-enabled for the future. Let's move in and start to look about our organic growth by geography. When I speak here, I'm going to talk about all our three segments. Starting with EMEA, our largest region. You can see there kind of a flattish to negative organic growth. If you pick that apart, you will see that we have very solid growth in Specialized Industrial Solutions, especially driven by Aerospace and magnetics in this region. For automotive, we maintain a rather low demand environment where both light vehicles and commercial vehicles report negative organic growth in the quarter. When it comes to business Bearing Solutions, we see some cautiousness in our distribution business, where the uncertainty also related to the crisis in the Middle East makes a number of our customers to apply better be safe than sorry and a bit cautious in investment activities. While on the other hand, there are some on the OEM side, some positive green shoots, where we see good progress in heavy industries, agriculture, defense, and also high-speed machinery in Europe. Turning to the Americas, where we have a growth of 2.3%. Here I can say that that number is somewhat reduced due to that we have received some tariff refunds, as I mentioned. Underlying organic growth is somewhat bigger than what is reported here. As in for Europe, we have very strong magnetics business driven by the AI build-out and the data center build-out in the region. Aerospace are growing very nicely in this region. We have a stable organic sales for Bearing Solutions and also for automotive. We start with Bearing Solutions. We do see that we have defense, heavy industries, high-speed machinery are also, just like for Europe, areas that are growing very nicely at the moment. For auto, it's more flattish, where actually both light vehicles, commercial vehicles, and the aftermarket comes in rather flat in the quarter. Turning to China and Northeast Asia, solid growth north of 3%, where we see a continued solid demand development. Here I like to single out distribution, rail, and high-speed machinery as some examples of high-growth areas for us. For automotive, we're back in growth territory here as well. To some extent driven by light vehicle and the EV export that we now see coming out of China, commercial vehicles have a strong quarter in the region. Finally, India and Southeast Asia. Solid growth just shy of 4%, clearly driven by India and Vietnam, growing very nicely as geographies. For Bearing Solutions, it's distribution, wind, and also heavy industries that I would like to highlight as particular good growth areas. For automotive, it's a bit flattish. Very good growth in light vehicles, somewhat offset by commercial vehicles in that region. If we then turn to our segments, starting with Bearing Solutions. As you can see, are representing 55% of group sales and 76% of the adjusted operating profit. Here we have a flattish organic growth of + 0.2%, driven by price mix. We do see a solid growth across Asia, offset by a declining development in the EMEA region. We do have some tariff refunds, as I mentioned, that impacts growth somewhat in Americas. Here in Americas, we do see early signs of OEM market improvement from direct and indirect growth in these areas that I mentioned, like data centers, defense, AI, and infrastructure. The adjusted operating profit is solid north of 19%. To give you some more color on this one, we do have benefit from the right sizing separation, as I mentioned before, that offset negative synergies from the separation and also some of the inflation. We also have some negative cost items from a comparison versus same quarter last year. We have some preparation cost for the IT modernization that I mentioned and also build-up of shared services beyond what we have in finance. We also have less contribution from the world-class manufacturing program this quarter versus the same quarter last year. Moving on to Specialized Industrial Solutions, representing 20% of sales and 22% of the adjusted operating profit. Here we do see very solid growth north of 8%, as you can see on this chart. It's actually not just price mix. Price mix is part of the equation, an important part, but also volume. Underlying volume is driving growth here. All units contributing to the growth, but with a particular emphasis on Aerospace and Magnetics. The adjusted operating margin increases significantly up from last year of just north of 10% to over 15% in this quarter. The main drivers behind this very positive development are threefold. Firstly, we do have a strong aftermarket growth across our business segments or business units, I should say, that make up this segment. Secondly, as I mentioned, our Aerospace and Magnetic business are growing faster than our Lubrication and Seals business, and that implies a positive mix, margin mix for us. Thirdly, we also have a very strong margin uplift in our lubrication business, both from pricing activities but also for good success in growing our automated lubrication systems. For those of you who joined us for the Q1 call, we did do a deep dive on the lubrication business, and there I tried to highlight the importance of automated lubrication systems in our lubrication portfolio. We're pretty pleased to see that growth. Turning to Automotive, representing 25% of sales and 11% of the adjusted operating profit. Here we are still in a declining growth environment, - 1.4% in the quarter. As I mentioned, there's generally challenging market conditions, especially in the EMEA, where both light vehicles and commercial vehicles are down. Good development in China and Northeast Asia, as I mentioned, both on commercial vehicles but also light vehicles. EV export is driving growth there. In Americas, as I said, it's more flattish across light vehicle, commercial vehicles, and the aftermarket. Despite that we have a decline in growth, we are able to improve the adjusted operating margin up to 5.7%, also visible on this slide. We're starting to see benefits being realized from becoming a more separated business. We continue to see solid cost development, mainly driven by manufacturing efficiency and procurement management. If we then leave the quarter and the numbers, and before I turn to Susanne to give you some more details, I'd like to take this opportunity to do a few deep dives. I want to start with the venture around humanoids that we announced a few weeks or days ago. As we mentioned in the past, we have done a rather thorough study here to identify where we should play in this potential market. We have concluded that we should focus on humanoids for industrial applications and that we will remain a component supplier, and that we should partner with key system manufacturers to rapidly build a proposition that covers most of the need for industrial humanoids. With that said, we also remain open to explore potential expansions to this as this market matures and we learn more. On the right-hand side, I'll try to give you some flavor of the bearings kind of contribution to humanoid and the number of positions where there are bearings. In a humanoid, there are more than 120 bearings. If you divide the value of those bearings, broken down by bill of materials, you find that roughly 45% of the bearing value is found in bearings like cross rollers and flexible bearings. They go into something that's called Harmonic Drives. I will come back to Harmonic Drives shortly. This is an area where we don't really have an offering today, but that's where the venture with Leaderdrive will come into play and really bridge that gap rapidly. Some 35% of the bearings, they are related to thin section and other type of bearings. Here we already have capabilities and knowledge in-house that we intend to build further and accelerate internally. From these two, we have some 80% coverage of the need for humanoids. The remaining 20%, they are related primarily to what's called miniature bearings that you find in hands and in fingers of a humanoid. This is an area we don't really have a coverage and where we are still assessing if we should do a greenfield here or if we should try to find a partner to also include this in our portfolio for humanoids or not. 80% is what we now have coverage. Turning to the venture itself, and a little bit on Leaderdrive. It's a manufacturer of Harmonic Drives and other robotic precision components. You may wonder, what is an Harmonic Drive? Let me try to the best of my ability to explain that for you very quickly. An Harmonic Drive is the gearbox of a rotating actuator with flexible gears that can continuously deform during operations, enabling high precision and torque. For this type of gearboxes or Harmonic Drives, Leaderdrive is the clear number one in China and clear number two globally after the Japanese company, HGI, was the first to commercialize a Harmonic Drive. Leaderdrive supplies manufacturers for both traditional robots and humanoids, and the main emphasis will be on humanoids, and they have customers both in China and outside China. Before this venture, they produced in-house the cross roller and flexible bearings that are needed for these Harmonic Drives in-house. Now with the venture, that will be carved out and moved into the venture. The venture will provide a fast track for SKF into this new exciting growth area. Leaderdrive will contribute with their cross roller and flexible bearing production, and our contribution will be large-scale manufacturing know-how, support in actually scaling up and industrializing this, and then coupled with our own engineering innovation capabilities. SKF will be the majority owner of this venture, 60% ownership, and the future IP will be retained within SKF. The venture will start with a very strong position in the Chinese market, which we then can scale globally. We will also have capability to support all types of robots, traditional cobots, and humanoids, but clearly the main emphasis will be on building humanoids for industrial usage. We expect this venture to be operational by the end of this year. Turning to Automotive and the separation. I'm very pleased to report that the separation is progressing with speed and fully aligned to our plan. Automotive is now structurally separated and also from an IT point of view. The board of Automotive or SKF Vertevo, they have appointed Kerstin Enochsson as the CEO, tasked to build an even stronger standalone automotive business. Overall, we are on track to complete the planned separation and listing by Q4 this year. This slide is also something that we used at the Capital Markets Day in November to lay out the five strategic levers that makes the foundation for the full potential plan of SKF Vertevo. In Q1, I gave some color to some of those levers, and this quarter, I'd like to draw your attention to lever number four, a lean company setup. As I mentioned before, we now see tangible benefits from operating as an independent company. A lean company setup drives speed, cost efficiency, and customer centricity. Let me provide you with a concrete example on how we actually accomplish this. In the past, preparing complete design packages for truck matched unit was a very manual and time-consuming process, taking more than four hours to complete. Now, using AI-based automation, customer, factory, and supplier drawings are created in less than four minutes. This is, of course, creating significant value from a cost efficiency point of view. It also enable us to more rapidly respond to customer quotes, so it drives speed and also customer centricity. It's freeing up valuable engineering time on innovation rather than spending time on documentation. I stop there, and I turn back and hand over to Susanne to take you through the numbers. Thank you. Good morning, everyone. Let me start with the profit and loss and the overview, then. As we have touched upon already, net sales was flat year-over-year, with an organic growth of 1.4% being then offset by both currency and structure. We had an adjusted gross profit margin that improved by 1.1% to 32.7%, which we could also see visible in the strong adjusted operating margin that improved from 13.3% to 13.9%. I will come back to the different components of that on the following page here. Talking about one-off cost IAC in the quarter, they amounted to SEK 1 billion, where automotive separation costs represented roughly half of the part, and the other half was related to the consolidation of our Americas footprint that we announced early in quarter two. O ut of that restructuring charge, SEK 345 was related to impairment of assets. I also just want to remind us that last year, at this point in time, we took a charge of SEK 2 billion linked to the rightsizing program that we are now implementing, and we also had a profit of SEK 800 million from the divestment of the aerospace business handover. All in all, in absolute amount, both adjusted and non-adjusted operating profit as well as net profit was higher than last year, largely explained by less IACs, improved operational performance, but also reduced FX headwind. All together, we ended at an earnings per share of SEK 2.8 per share and an adjusted one of SEK 5 per share. Let's look at the components that is building up our strong adjusted operating margin of 13.9%. Starting then with the organic growth impact. We see a solid price mix that is the main contributor to the improved result. As mentioned previously, it's mainly deriving from the SIS segment. Organic sales were negatively impacted by the customer refunds Rickard talked about from the IEEPA tariff reclaims, which we have received the majority of during quarter two. Payments to customers will follow the completion of the refund, they have not yet been done. The result impact of the tariff all in all around the reclaim is somewhat positive in the quarter two result. In this quarter, we had some support production ahead of the separation related to the transfer of production to automotive. Whilst the production volumes were positive in the organic, the result impact was limited because these higher production volumes led to temporary, less efficient production impacting our cost negatively. Net-net, we had a very limited result impact of that support production. With respect to the support production, we expect that to continue also in the second half of the year. Some further comments related to the cost development. Our rightsizing activities contributed with some SEK 350 million of savings, they continue to more than offset the separation-related negative synergies. Material cost savings remain positive, particularly in the automotive segment. The overall cost development remained unfavorable, driven by weaker productivity in the support production that I just talked about. We see a wage inflation, tariff costs, and some industrial transformation initiatives. We continued to largely compensate for the tariff costs also in quarter two, and we expect to continue to do so also in quarter three. As I've already mentioned, we had a slight positive effect from the tariff reclaims in the quarter two itself then. With respect to currency, the impact is notable but much less severe than what we have faced previous quarters. They impact our sales by a reduced 0.8 percentage point, and it reduced the profit by 0.3 percentage point, mainly driven by a weakening dollar vis-a-vis Swedish krona conversion year-over-year. Finally, we have the structure column, and that is representing the divestment on the aerospace business, Elgin, that we closed during quarter one earlier this year. Let's move into cash flow. If I start with EBITDA for the quarter two, that amounted to SEK 3.5 billion and non-cash items and tax payments made the cash flow before changes in networking capital to end at SEK 3.2 billion compared to SEK 2.9 last year. Tax payments was fully in line with last year's payment. We had the high networking capital buildup of SEK -1.1 billion, and this is mainly explained by the buildup of safety stock linked to automotive channel transfers, together with higher accounts receivable caused by the ongoing separation of automotive. Looking at the graph to the right, I would like to recall that we announced the rightsizing initiative in quarter two last year, and since then, we are paying out gradually every quarter the SEK 2 billion that we accrued through the P&L a year ago. The automotive separation started in the late part of 2024. However, the speed of the separation has been at its peak during the first half of this year, where separation initiatives are now being finalized, and we are moving in doing listing preparations. In the quarter two cash flow, we included SEK 700 million of payments linked to such IAC charges, and with respect to quarter one, last quarter, we had a similar SEK 700 million paid then. Finally, we had the CapEx of SEK 700 million in the quarter two and the year- to- date of SEK 1.5 billion. Comparable numbers last year was SEK 900 in this quarter and SEK 1.8 for the full first half year last year. Balance sheet and return on capital. Our net debt excluding post-employment benefits, quarter two over quarter one increased by SEK 1 billion to SEK 7.3 billion, mainly driven by the dividend payment in quarter two, net of cash inflows from our operations. Net debt divided by equity excluding pensions ended at 12.3 compared to 10.2 at year-end. Net debt in relation to adjusted EBITDA excluding pensions ended at 0.5, which is 0.1 above last quarter. If we look at net debt in relation to adjusted EBITDA and include pension, we ended at 0.9. Adjusted ROCE improved to 14.5% vis-a-vis 14.4% last quarter and 14.3% at year-end. This is as a result of a somewhat improved result and reduced total assets. All in all, our net debt remains on a low level, and our liquidity is high, SEK 12.5 billion vis-a-vis SEK 8.4 in the previous quarter, and this is a lot explained by the drawdown of the EIB loan where we now have $500 million in loan. Additionally, we have another EUR 800 million of undrawn credit facilities. That turns me to the last page, and that is around the outlook, where we say that for quarter three, and with given signs on improved market demand in certain industries, we expect organic sales to strengthen somewhat in quarter three year-over-year. Considering still the geopolitical turmoil and the conflict in Middle East, there is certainly remaining unpredictability. Guidance also for quarter three around currency on the operating profit. That is estimated to a SEK +100, applying the exchange rate as per the end of June. Moving on to guidance for the full year, talking tax levels excluding effects from divestments and ongoing automotive separation, we now guide at 29%, which is a slight increase compared to the earlier announcement of 28%. We do that because we have changed the assessment of evaluation reserve linked to the consolidation of our footprint in America, and you see the tax cost for that coming through the P&L in this very quarter. That means that the full-year tax rate is then rather around 29% than 28%. Additions to property, plant, and equipment, we now take down SEK 1 billion and guide to SEK 4 billion. This is mainly explained by further optimizing both existing assets but also our planned investments. Finally, then, when it comes to one-off cost in this year, IAC is related to the automotive separation as well as our footprint optimization. We remain with a SEK -2.5 billion to SEK 3 billion, fully in line with what we have communicated previously and also at the capital market in the end of last year. Rickard, over to you. Thank you, Susanne. Let's wrap the formal presentation up before we head into Q&A. I do think that we closed a rather strong quarter. There are some key highlights I'd like you to take away from this conversation or this call. Firstly, we continue to deliver on our right sizing program at speed and with accuracy. In the quarter, we have some SEK 350 million in benefits, as you heard both me and Susanne mention. We do have a strong operational profitability uplift in our Specialized Industrial Solutions segments, coupled with the solid growth. As you recall from our capital markets day, this is one of key pillar for us to reach our mid- and long-term profitability targets. We're pleased to see that that is moving in the right direction. We're excited about the humanoids venture. We know that this is an industry that is kind of in its early phase stage, but it's being formed now. We are keen to participate in that. We also can learn this market and also play a role in defining the standards for how this market's going to play out. Therefore, we are excited about this venture that will give us a fast track into this segment. Finally, the separation progress is going according to plan, and we stay firm in delivering and completing this by Q4 this year. On a personal note, I would like to take this opportunity to also congratulate Kerstin Enochsson to her promotion. With that, I hand you back to the safe hands of Sophie to manage the Q&A session. Thank you. We look forward to your question. I can see there is a big interest to ask questions. Limit yourself to one question and then, of course, if time allows, you are welcome back to rejoin the queue. Before we go to questions, let me just remind you on how to ask a question. If you are dialing in via the telephone, you press star and one, and if you would like to withdraw, you press star and two. We will of course also accept questions from our audience watching via the webcast. You can already now type in your questions in the tab that is above the slides. Let's start with a question here from the telephone line, and it is from Chit Sinha at JPMorgan. Please go ahead, Chit. Yeah. Morning, Rickard, Susanne, and Sophie. Thank you for taking my question. Just if I could ask about the tariff reclaims in the quarter. Could you please quantify the impact on sales and then, of course, the benefit on the margin in the quarter? I think you mentioned that you received the majority in this quarter. Does that imply that we should expect a bit more in Q3? Thank you. We will not quantify it, but we are stating that the majority of the IEEPA tariff refunds have been received during the second quarter, then since we had certain surcharges to customers, we are also accruing a reduced sales price then as a consequence. We have still not paid the customers because we are still waiting for some of that refunds to complete during quarter three. By that, the first big chunk is coming to an end. This is the quarter where we see the significant impact of it. Similar to when we had the tariff cost, where we, to the vast majority, offset, we are also generally guiding that now it's the opposite way around. We have a slight positive impact, and that's the only indication we give on that. Thank you. I'll return the queue. Let's continue with a question from Daniela Costa at Goldman Sachs. Hi. Good morning. Thank you for taking my question. I wanted to ask, on the EBIT bridge, I guess apart from the tariffs, the other two things that you mentioned, sort of that move that bridge different to normal is the overproduction points, and the savings net of synergies. First, can you comment that if we should assume the overproduction more or less at a similar pace to what we had in the first half? Or if that's going to unwind down as we get to the spin. On the savings, you've accelerated the savings part from SEK 300 million to SEK 350 million. Should we think about it accelerating as well? I believe before you had sort of talked about it as more linear going forward. If you could help with those two items. Will you take this one? Or both? Yeah. Hello, Daniela. Starting off with the overproduction that we had now, both in quarter one as well as quarter two, we envisage that that will remain in the second half in a similar manner. We will have two different things that explaining that, really. The first one is really to prepare the channel transfers ahead of them taking place and being moved in real life. That is the kind of overproduction we have seen now in quarter one and two, and we will, to some extent, also see in the quarter three. What we will also see in the second half of the year is a buildup of Automotive being a standalone company. We will seek Automotive as a separate customer. They will have unique SKUs, and Automotive is starting also to build their own stock for the aftermarket primarily. That is a stock buildup and preparation that is coming ahead of the spin of automotive. Both those will allow us to have a similar level of support production, if we call it that, also in the second half of the year. When it comes to the savings, the right sizing initiatives, net of the synergies or the saving itself, you're right. We saw SEK 300 million in Q1, and we saw SEK 350 million now in Q2, which allowed us to have somewhat of a positive impact. Moving on, now it will be on a linear basis, and it will be a limited result impact as we move along. It will continue to be on a linear path with a limited result impact. Sorry, linear as per increase in SEK 350? Sorry. Just to add that the negative synergies we saw in Q2 was very much in line with what we saw in Q1, and we expect that to continue on the same level. For the full year, we expect a positive net impact from the right sizing savings versus the negative synergies. Okay. I'll follow up. Thank you very much. We have a question here from the webcast, it is from Andre Kukhnin at UBS. It's also about this support production and if we expect that to become more efficient in the second half and hence benefit profitability. Susanne, do you want to? Yeah. I can do that. Probably putting some light on why we had less positive benefits out of it now in the second quarter compared to the first one, that is because we have that additional production in channels that are fully, to a big extent, loaded already. I think that is not the majority of the channels. I think we have had less benefits of that now when we are into certain channel transfers of full load. That's the consequence we have. Do we envisage that in the second half of the year? I think we envisage a certain but limited positive benefit of the support production that we will have also in the second half of the year. Somewhat of a positive. Also we got a question here from Andre, just to clarify that when we said, it's about the timeline for the Automotiv separation, we may have said by Q4, we don't mean by end of September then. It's during Q4, we aim for a listing and separating then Automotiv. Of course, given shareholders' approval and that the board of directors propose that. Correct. Let's continue with a question from our telephone audience then, this time it comes from John Kim at Deutsche. John, please go ahead. Hi. Good morning. Thanks for the opportunity. I'm wondering if we could go back to the humanoids opportunity. It'd be helpful to get a little more color here about SKF's longer term strategy. When you think about your JV partnership with Leaderdrive, is this an exclusive relationship in the sense that you would use them as your primary path to market in China? Or are you open, able to form additional JVs with perhaps other participants or entry points? Thank you. Well, thank you. The venture will be a key supplier to Leaderdrive, it will not be in exclusivity. We will also have the ability to form partnership with others, we are free to develop other ventures outside of China as well. Okay. Quick follow-up question, if I may. If we think about the scope here in the medium term, is the intent to stay very focused on bearings, or would you look to build partner for adjacent capabilities or subsystem components, perhaps like some of your peers have? As I mentioned during my presentation, I do not rule that out that we will move into some adjacent capabilities or areas related to the humanoids. Right now, we are focused on building this presence to really be a strong component supplier for industrial humanoids. As this market evolves, we will assess opportunities, and if something emerge, we will let you know. Okay. Thank you. Before we take the next question, I see that some withdraw their questions. There are opportunities to ask questions. Just press star and one to enter the telephone queue again. We will continue with a question from Tore Fangmann at Bank of America. Tore, please go ahead. Good morning. Thank you for taking my question. Also on humanoids here. My question would be, what percentage of the bill of materials of the humanoid do you estimate would bearings be going forward? Therefore, do you have any estimate of the size of the addressable market for you? Thank you. Not on top of my head I can give you that. I tried to describe the bill of materials, the value of the different bearings that makes up a humanoid. We have then coverage with the future venture with Leaderdrive of roughly 80% of the assortment needed to support humanoids. We still lack the miniature bearings, and as I said, the jury's still out if we're going to go greenfield or if we're going to partner up with someone to also close that gap. The total value of the humanoids and the size and the potential market, I think it's rather difficult to assess. There are a number of different sources that have done thorough analysis of this that indicates a rather significant market potential. I'm going to refrain from actually claiming if they're right or wrong, but rather refer to them as a source. Perfect. Thank you. May I just ask one clarification following up on the first question that we have coming from Chit, which was on the tariff reclaim impact. Just wondering here, you said reclaims have been awarded to you, but you have not as of now refunded your customers yourself. Should we see this as a cash drag into Q3, or is this also on a profitability basis drag? Thank you. Thanks for that clarification. You are right. We have got it into our wallet, and we have not yet paid the customer. It will be a heavy exercise to do that. We are awaiting that all of that is finalized, even if the majority is already paid to us. The consequence in the following quarter will be on the cash flow, as you rightly indicate. Thank you. We will continue with a question from Tim Lee at Barclays. Tim, please go ahead. Hi, thanks for taking my question. Can I ask you about the demand development into the first quarter? How do you see the momentum into the quarter compared to last quarter? Your guidance is somewhat higher organic growth on year-on-year basis. How do you see sequentially whether it will be like an acceleration from the second quarter? Sorry, Tim. We didn't catch that, so great if you can just repeat your question there. Sorry, can you hear me now? Hello? Yes, Tim, we can hear you. If you can repeat your question, that would be splendid. Yeah, sure. I'm just trying to understand the demand development into the third quarter. How do you see the momentum sequentially compared with last quarter? You're guiding a somewhat higher organic growth on a year-on-year basis. How do you see the comparison with the second quarter? Would it be like an acceleration? Rickard, you are eager to talk about the demand development going into Q3 here then? Yeah. The guidance is not just a comparison to the same quarter last year. It's actually based on a somewhat increased activity level, as I mentioned, especially among OEMs, with a particular emphasis on Americas. A maintained solid demand in India, Vietnam, also in China, Northeast Asia. Also, as I mentioned, we see some positive movements also on the OEM side in Europe, but maybe not to the same extent as it's been the case in Americas. Right now, the current trading, I don't have much insight early on into Q3, but there's nothing that says that we should not believe in that outlook. No, that's our best view. As we talked about earlier here on the call, it is certain industries we are seeing a better demand, it's very much driven by infrastructure and defense and data centers. Answered your question then, Tim. Yeah. Thank you. I will go back to the queue. We will continue with a question from Andreas Koski at BNP Paribas. Andreas, please go ahead. Thank you, and good morning. I want to ask about CapEx. You have now lowered your CapEx by 20% from SEK 5 billion to SEK 4 billion for this year. Can you give us an understanding what we should expect for the coming years? Will that also be lower than what you had previously expected? Thank you. While being very busy on the automotive separation, we have also challenged ourself to see whether we can actually optimize existing equipment additionally, and also looked into what sits in the pipe and see if we can do additions also there. That allows us actually to take them down the SEK 5 billion to SEK 4 billion as the guidance. We do not see that falls over to next year, but actually concluding that we will be better off than what we first thought from a cash flow and CapEx perspective. When it comes to general guidance, we will remain with the 5% of sales, the industrial sales then, until midterm, considering also that we have footprint optimization ahead of ourself, and that we see will also call for some of the CapEx. From midterm, we will normalize into something more like 3.5% of sales. This reduction that we see this year then will not make us adjust future outlooks and guidance that we have already provided, Andreas. Okay, it's still 5% of sales. Can I also ask, because it's additions to property, plant, and equipment, should we expect any investment in, or CapEx in intangibles, or is it only tangible CapEx that you ordered yourself? That's a good question. This, when we talk about it from this perspective, it's fixed assets. It's no intangible asset that comes from potential M&A activities. There we are talking about accelerating, doing more of bolt-on acquisitions, and that is not guided in this CapEx number. No, I meant actually internal-generated intangibles. If you invest in, I guess, IP. For instance. No, we actually expense that as we build it, we do not put internal R&D into our own balance sheet. You should not expect that. Understood. Thank you. Thank you. Let's continue with a question from Will Mackie at Kepler Cheuvreux. Will, please go ahead. Yeah. Very good morning, thank you for making the time. I'd like to come back to the question of cost evolution through the first and second quarter, and the actions you're taking across the business to compensate. There are a number of times you've commented on price and cost. The question is, could you please elaborate on the level of pricing, how it evolved through the first half, and your thinking about pricing into the second half, and particularly perhaps a comment on regional pricing or channel pricing depending on the customer segment. Where you're able to develop a positive price cost in H2, and where perhaps there are more tensions to achieve the offset to costs. Thank you. Thank you. I'll try to give some color to this. Starting in the, as you heard us say, for the growth in this quarter is primarily coming from price mix. We are taking the opportunities where we can to do selective price increases. We have continued to do that throughout the quarter, and we plan to do that as we move forward. We have also been proactive and already taking price increases in certain geographies to compensate for increased energy costs and logistic costs. That has happened in Q2, so it had not had a significant impact yet, but it will have an impact as we move forward. I will not guide by geography or by area where we do see price increases going forward, I can promise you that we will continue down this path to do selective price increases wherever we can and try to be as proactive as we can to compensate for unexpected inflation as it occurs. That's what we have done in the last few quarters in this volatile environment where we operate in, we intend to continue down that path. Clear. Thank you. We will continue with a question from Rory Smith at OxCap, and it's from the webcast here. It is if we can give more color on the net impact from right-sizing benefits versus negative synergies, and from a year-over-year perspective here with the comps that are now coming up for Q3 and Q4. Perhaps I can answer this one. You are absolutely right there, Rory. We did get savings from this right-sizing program already. Some in Q3. We said less than SEK 100 last year, and then we had SEK 190 million in Q4. Of course, there will be a tougher comps in Q4. We expect, as Susanne already said, the right-sizing savings to be linear from now up until Q4 2027 with the SEK 2 billion, and the negative synergies to be fairly on the same level as we have seen in Q1 and Q2. For the full year, we don't guide specifically for Q3 and Q4. For the full year, we expect positive net impact from the savings versus the negative synergies. Of course, bearing in mind with what you said, and I'm sure you can do the math, it will be tougher in Q4 than it will be in Q3. I believe we have time for a final question, and it will come from the telephone line. It is from John Kim at Deutsche Bank. John, please go ahead. Hi. Thanks for the second opportunity. Appreciate it. One of the things I'm thinking through here is you had a number of different impacts, positive and negative in the quarter. If we could drill down into industrial, if we think about the margin progression in SIS, is there any sense or steer you could give us on how the margin evolved from mix effects versus perhaps the margin management initiatives on lubricants and seals? Was this more of a mix effect or the start of the self-help and the repricing story? Well, we will not break up the organic growth and tell you how much is coming from price and mix and from volume growth. Both contribute to the growth. We do see, and as planned and as needed, a rigorous work in the different business units to drive efficiencies and also ensure that we expand into those verticals or segments that we are focusing on that will lift the overall performance of each business unit. They are progressing well. As we said before, magnetics and aerospace is somewhat ahead of lubrication and seals in that regard. As I also mentioned, they are moving fast. In this quarter, I'd like to highlight lubrication that has done a significant uplift also on their profitability performance while growing rapidly by doing solid price activities, making sure that they are managing their portfolio to lift the mix, again, moving forward in the automated lubrication space and also making sure that take advantage of the lucrative aftermarket. If I may add, they've also done a lot of operational measures, lubrication. We got a question here from Anders Idborg at the ABG Sundal Collier, also about lubrication. I think, Anders, your question was also answered here by Rickard. Of course, as Rickard said earlier, SIS is an important pillar for us to reach the industrial margin targets midterm and long term. Lubrication did well in Q2, but we expected we have a higher ambition than that, still opportunities. With that, we unfortunately need to end this Q&A session. Time flies, I leave it back to Rickard. Thank you very much, and thank you for joining. I know there are a number of other companies report today, so we are honored that yous paid attention to us. As I mentioned in my closing remarks, I do think that we close a rather strong quarter behind us. We are excited about the future and our ability to deliver on our separation and build two even stronger businesses, one fully dedicated industrial and one fully dedicated automotive business. With that, I think we close this out, and I wish you all a wonderful summer. Thank you very much.