Ovzon

January–March 2025

• Revenue totaled 90 MSEK (65)
• EBITDA totaled 18 MSEK (-18)
• Operating loss totaled -16 MSEK (-25)
• Loss after tax totaled -4 MSEK (-43)
• Earnings per share totaled -0.03 SEK (-0.39)
• Cash flow for the quarter totaled 40 MSEK (-77)

Significant events during the quarter

• Ovzon participates in major strategic 6GSAT initiative
• Renewal for delivery of SATCOM-as-a-Service to the Italian Fire and Rescue Services
• André Löfgren appointed as new CFO effective May 1, 2025
• Extended and amended loan facility agreement with P Capital Partners
• Ovzon’s “High North Expedition” validates ability to meet NATO’s Arctic requirements
• Order from new European customer within NATO

Significant events after the end of the quarter

• No significant events have occurred after the end of the quarter
  

Continued strengthened profitability
Following Ovzon’s strong finish in 2024, we see a continued high demand for advanced satellite communications. The growing geopolitical instability globally has led to increased defense investments. This is especially true in Europe, both on a national and NATO-level, where satellite communication is increasingly prioritized as a critical strategic asset. During the first quarter 2025, Ovzon secured a new defense customer from a European NATO country, and we do see prospects for continued growth in 2025. Even though the demand is increasing, selling to government entities is not always fast. Therefore, we continue to invest time and effort in our customers decision-making and procurement processes. In the first quarter the positive trend continued with a gradually improved EBITDA as a result of higher utilization of Ovzon 3 and expanded customer deliveries.

Continued growth and new European NATO customer
Revenue in the first quarter amounted to 90 MSEK (65). At the end of 2024, we received our largest contract to date – an initial 12-month order for our SATCOM solution based on Ovzon 3 at a value of 185 MSEK (18.5 MUSD). The order contains our unique and integrated satellite communications solution. The mobile satellite terminals were mainly delivered in the fourth quarter 2024 with continued delivery in the first and second quarter 2025. The service started on March 1, 2025, and has thus only partly affected this quarter's revenue.

Order intake for the quarter amounted to 22 MSEK (118 MSEK) and mainly included the 12-month order of 17.4 MSEK we received from the new defense customer in a European NATO country. The order contains our SATCOM-as-a-Service including mobile satellite terminals with delivery starting early in the second quarter. The order intake on a rolling 12-month basis has continued to increase to 420 MSEK and the order book at the end of the quarter amounted to 250 MSEK.

Gradual increase of EBITDA
Our ability to scale the business profitably is most evident in our improving EBITDA performance, which during the quarter increased to 18 MSEK (-18 MSEK), resulting in an EBITDA margin of 20 percent – an increase both compared to the corresponding quarter of 2024 and the previous quarters. The gradual increase in operating profitability is driven not only by increased revenues, but also by higher utilization of Ovzon 3 and a more optimal mix of satellite services and mobile satellite terminals. During the first quarter 2025, we benefited from the strengthening of the Swedish krona against the US dollar, positively affecting our net financial items, given that our debt financing is in USD. As a result, our net result improved significantly in the quarter. Our financial position is supported by the fact that we have received early payments from many customers. It also underlines the immediate and tangible value we bring to our customers. In February 2025, we also extended our loan facility on improved terms.

Strong demand for resilient SATCOM as part of critical infrastructure
During 2024, the demand for advanced satellite communications continued to strengthen, driven by the escalating geopolitical situation. In the first quarter of 2025, global tensions increased further. Across Europe, NATO, and allied nations, we now see a clear increase in total defense budgets, and resilient and sovereign satellite communication is a strategic priority.

Satellites play an increasingly critical role in defense and rescue operations. Today, most countries invest in space to ensure national sovereignty and security. Satellite communication is thus the foundation of the rapidly growing space economy. It is evident that Ovzon is uniquely
positioned in this growing market. With the most advanced SATCOM solutions on the market, we offer a powerful combination of performance, mobility, and resilience – the Ovzon Coefficient for rapid delivery to our customers. Beyond our technology, Ovzon distinguishes itself with a complete end-to-end solution and a dedicated, experienced and highly skilled team. Our customer-focused, deep, and broad technical expertise makes us a trusted partner and a valuable strategic advisor to both senior decision-makers within governments and public agencies as well as the direct end-users of satellite communications system.

Prioritizing profitable growth
2025 has started in a positive way, with continued high levels of engagement in delivery to current customers coupled with deepened dialogues with potential customers. Achieving the highest customer satisfaction, ensuring commercial success, and driving profitable growth remains our top priority. Our focus is now on fully capitalizing on our newly launched technology platform and increased utilization on Ovzon 3.

Having already demonstrated our ability to scale the business in a cost-effective manner, we are building on this momentum in 2025. Looking ahead, we are now evaluating our strategy and business plan with several exciting paths for Ovzon’s next growth phase. We are working closely with customers, partners and financiers to expand our SATCOM solutions and enable their use in new applications. This will further set Ovzon apart as a unique supplier and value creator for customers. We continue to have a positive outlook for Ovzon in 2025 and beyond.

Per Norén, CEO Ovzon

Webcast
In conjunction with the interim report, a webcast will be conducted at 2:00 pm CEST on April 24, 2025. Ovzon’s CEO Per Norén and Interim CFO Viktor Bremer will present the results and answer questions.

The webcast can be reached via the following link: https://www.finwire.tv/webcast/ovzon/q1-2025/