FINANCIAL RESULTS FOURTH QUARTER 2025

• Net sales amounted to SEK 17.6 million (42.4)
• Total revenue amounted to SEK 23.0 million (47.5)
• Operating profit amounted to SEK -3.3 million (-3.7)
• Operating profit after financial items amounted to SEK -3.5 million (-3.6)
• Cash flow amounted to SEK 24.0 million (-35.1)
• Net cash, end of period, amounted to SEK 37.4 million (32.5)
• Liquidity ratio amounted to 113% (95)
• Adjusted liquidity ratio amounted to 113% (155) [1]
• Order backlog coating systems at period end amounted to SEK 0 million (0) [2]
• Order backlog Coating Services at period end amounted to SEK 10.6 million (4.2) [2]

FINANCIAL RESULTS FULL YEAR 2025

• Net sales amounted to SEK 47.3 million (109.9)
• Total revenue amounted to SEK 73.5 million (102.4)
• Operating profit amounted to SEK -45.2 million (-31.3)
• Operating profit after financial items amounted to SEK -45.6 million (-30.1)
• Cash flow amounted to SEK 4.4 million (-89.7)

BUSINESS HIGHLIGHTS DURING THE FOURTH QUARTER 2025

• Strategic shift to drive increased sales by broadening applications areas, e.g., SOFC for data center power
• Strong order intake and net sales in Coating Services, SEK 15.6 million and SEK 15.3 million (10.4), respectively
• New supply agreement for metals that reduces working capital needs for Coating Services
• Rights Issue provides the company with approximately SEK 26.6 million before deduction of issue-related costs

BUSINESS HIGHLIGHTS AFTER THE PERIOD

• The Board of Directors proposes to the Annual General Meeting that no dividend be paid for 2025

[1] In 2024 included the part of the inventory that was financed by customer pre-payments.
[2] Future agreed leasing revenue of SEK 9.1 million over 39 months for a production line leased out by the subsidiary in China is not included in the backlog figures.

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CEO’s COMMENTARY

The fourth quarter of 2025 was characterized by a continued cautious market for industrial investment decisions and a lack of system sales, which contributed to a challenging full year for the company. At the same time, Coating Services developed well with increasing volumes and a continued inflow of new customers, but not sufficiently to compensate for the lack of system deliveries. The rights issue carried out during the fourth quarter strengthened our financial position, while the work to reduce working capital and lower the cost base continued according to plan. These positive developments, together with our momentum in SOFC coatings for data center power generation, provide improved conditions to drive the business during 2026.
 
Coating Services growth, but overall sales below ambitions
Net sales for the fourth quarter amounted to SEK 17.6 million (42.4). Coating Services generated the primary contribution during the period, with net sales exceeding SEK 15 million, corresponding to an increase of approximately 47 percent compared to the same period last year. The development was driven by increased volumes and extending into new application areas with existing customers combined with an influx of new customers in, among others, PEM fuel cells, SOFC and iridium oxide-related applications. Higher sales in Coating Services contribute to increased stability in the revenue base and confirm the commercial interest in our coating solutions. At the same time, the total sales level remains low in relation to the company’s ambitions.

On a rolling 12-month basis, sales reflect a continued volatile revenue stream, with the absence of major system deals during the year having a clear impact. This underlines the importance of Coating Services as a continued central part of the business.

Impact Coatings has a leading position in the coating of bipolar plates for fuel cells in China and currently accounts for a significant share of the installed capacity in that market. The fuel cell market in China is primarily driven by automotive applications, in which the country is a global leader. Market reports estimate that around 10,000 fuel cell vehicles were sold in China in 2025, the majority of which were heavy trucks. The focus on hydrogen technology is also expected to continue within the framework of the Chinese government’s new five-year plan. At the same time, the market has not yet reached the scale required to fully drive investments in new production equipment, even though we have increased production volumes and see good demand for our coating services.

We have active coating system sales discussions with customers in all of our main segments – energy, automotive, electronics and luxury products. Their interest confirms that our system solutions have broad market relevance, although the timing of deal closings continues to be affected by market conditions.

Developments in SOFC/SOEC and Premium FC
During the quarter, Impact Coatings drove its strategic pivot into solid-oxide technology (SOFC and SOEC) that we initiated in the latter part of 2025 and described in connection with the rights issue. Based on our existing INLINECOATER platform and experience from energy-related applications, we are now working with greater focus on translating strong technology capabilities into concrete business opportunities, including SOFCs for power generation to data centers. An accelerated deployment of AI data centers requires such off-grid power solutions.

Our existing system solutions are well suited to the plate sizes used in SOFC and SOEC. Thanks to the modular design of the INLINECOATER platform, the systems can be upgraded for new materials and efficient production according to customer needs. This creates an efficient path to market and allows us to leverage our established business in PEM, while broadening our offering towards new applications with substantial long-term industrial potential.

During the quarter, we also continued the development of an enhanced version of our Premium FC coating for PEM fuel cells with a focus on improving the overall cost and margin structure through reduced material costs, among other parameters. Test samples of the product have been delivered to several customers. The development has the goal of maintaining performance with a focus on meeting customer requirements in real applications. This broadens the use of Premium FC in existing customer dialogues and strengthens our position in ongoing and future business.

Rights issue and continued cost discipline
During the year, we applied extensive efforts to strengthen the company’s financial position and reduce the cost base. The rights issue carried out during the period raised approximately SEK 27 million before issue costs. The outcome was below our original expectations, but still provided an important capital injection that helps us navigate a continued challenging market.

In parallel, we have adopted several measures to reduce the company’s capital needs and increase financial flexibility. The previously described savings program has been implemented according to plan, with full-time equivalent employees in the parent company decreasing 38 percent since December 2024. A new metals supply agreement announced in December also significantly reduces the capital required for Coating Services. The effects of these measures are already noticeable in the business, with further effects to be realized during 2026.

Following the rights issue outcome and to further support the company’s development, our next step is to broaden our ownership base by bringing in an industrial partner. We are evaluating potential investors that can contribute capital and relevant industrial expertise to support the next phase of Impact Coatings’ long-term development.

Outlook
2025 was a demanding year, in which we adapted our operations to a weaker market than we had previously assessed. However, the measures initiated in late 2024 and implemented throughout 2025 have laid the foundation for a return to growth.

During 2026 and beyond, we will continue to work on increasing system sales and developing solutions in new application areas, particularly SOFC for power generation. Our ambition is to build on the technical platform and successful customer relationships already established in our main markets.

We have much work ahead and market conditions remain challenging. At the same time, Impact Coatings is today a more focused, leaner and better-equipped company than at the beginning of 2025.

In conclusion, I would like to extend thanks to our employees, customers and existing and new shareholders. The year has been challenging, but the organization has taken responsibility, showed perseverance and is keeping a sharp focus on commercial success – something we will take with us into 2026.

Jonas Nilsson, CEO

Presentation

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Impact Coatings invites investors, analysts and the media to a presentation of this Year-End Report on Friday, February 13 at 09:00 am (CET). CEO Jonas Nilsson and CFO Lena Åberg will comment on the Year-End Report and take questions. The presentation will held via webcast in English.