INCREASED MARKET ACTIVITY IN FOCUS MARKETS AND STRENGTHENED FINANCIAL POSITION
During the first quarter of 2026, Climeon delivered one HeatPower 300 unit intended for NovaAlgoma Cement Carriers for installation at a shipyard in China. Negotiations remain ongoing, alongside continued customer dialogues within the company’s prioritized focus markets, with an increasing number of inquiries in the land-based segment.

The company completed a directed share issue of approximately SEK 23 million before transaction costs, strengthening its financial position. In addition, the Nomination Committee has proposed Kent Sander as the new Chairman of the Board. The proposal will be considered at the company’s Annual General Meeting on 18 May.

SIGNIFICANT EVENTS

• A HeatPower 300 unit intended for NovaAlgoma Cement Carriers’ cement vessel has been delivered for installation at a shipyard in China.
• Climeon completed a directed share issue of 11,958,409 Class B shares, raising approximately SEK 23 million before transaction costs. A number of new investors subscribed for Class B shares in the issue, including Peviab Gruppen AB and J.A. Kjellberg och Söner AB. In addition, several existing shareholders participated, including SEB-Stiftelsen, MP Pensjon PK, Stefan Wikström and Cidro Förvaltning AB.
• Climeon’s Nomination Committee has proposed Kent Sander as the new Chairman of the Board.

JANUARY - MARCH

• Order intake amounted to SEK 0.0 million (0.0)
• Net sales amounted to SEK 6.6 million (5.2)
• Order backlog amounted to SEK 11.0 million (15.4)
• Operating profit amounted to SEK -23.7 million (-40.0) .
• Profit/loss after financial items amounted to SEK -23.6 million (-43.3)
• Earnings per share, before dilution, amounted to SEK -0.46 (-1.22)
• Cash flow from operating activities after changes in working capital amounted to SEK -12.4 million (-9.4) and total cash and cash equivalents amounted to SEK 5.4 million (21.8) . In addition, restricted cash amounted to 3,2 million SEK for guarantees related to future customer deliveries that will be released with start Q1 2027. Thus, total cash and cash equivalents, including restricted funds, amounted to 8,6 million SEK.

A word from our CEO:
INCREASED MARKET INTEREST DRIVEN BY RISING ELECTRICITY AND FUEL COSTS
In recent months, it has once again become clear how vulnerable the world—particularly Europe—is to disruptions in the supply of, and pricing for, fossil fuels. Electricity and fuel prices have increased, which is clearly reflected in the growing number of incoming inquiries to Climeon, primarily from industrial and marine customers, but also within geothermal and power generation projects.

Within the industrial segment, our two HeatPower 300 units at NEO Group in Lithuania have now been in operation for two years, delivering sustainable electricity as planned. Annual service is scheduled to be carried out by Climeon shortly. Building on these references, we have developed a pipeline of similar industrial projects where both heat and cooling are available within suitable temperature ranges.

In several countries in Central and Eastern Europe, where electricity prices are high, we see payback periods for these projects of only a few years. Some customers are interested in purchasing and owning units, while others prefer an energy-as-a-service model. We have therefore initiated discussions on potential partnerships with several energy companies operating under this model, opening a new and promising market for Climeon with significant potential. In addition to industrial customers, our land-based business continues to advance several geothermal and power generation projects, driven in part by the rapid expansion of AI-related data centers.

Within the marine market, our units onboard vessels such as those operated by Maersk continue to generate electricity, and together with our customers we are now able to verify the business value based on actual operational data. During the quarter, we delivered the first HeatPower 300 unit to a NovaAlgoma vessel for installation at a shipyard in China—our first reference and installation of HeatPower 300 in China, the world’s largest shipbuilding nation. In China alone, we are currently involved in around ten shipyard projects at various stages for several shipowners, primarily within container, ro-ro and ro-pax vessels*.
Since the initial design of the HeatPower 300 units, Climeon has placed strong emphasis on further improving cost efficiency.

This work enables us to manufacture and deliver future HeatPower units that not only offer a strong business case for customers but also improved margins for Climeon, in line with industry standards. These efforts have primarily involved reviewing all system components in terms of function and cost, as well as evaluating production efficiency and manufacturing processes. We have also chosen to produce the latest commercial units using our own personnel at our test site in Kista. This work is carried out in accordance with our ISO-certified quality and environmental management systems and has provided us with deeper insights into both production and product quality.

In April, we completed a directed share issue. We received strong support from existing shareholders, as well as from several new, larger investors who see significant potential in our product and business, both in the marine and industrial markets. Climeon’s Nomination Committee has proposed Kent Sander as the new Chairman of the Board. Kent brings extensive and solid experience from board work across a wide range of companies.

At our Annual General Meeting on 18 May, you will have the opportunity to meet Kent, myself, and other shareholders, as well as join a tour of our test site together with our new Head of R&D, Henrik Österman. At the test site, we currently have two in-house produced HeatPower units that will later be delivered to two separate customer projects in China. We welcome you to join us and to continue following our journey as we focus on increasing the number of HeatPower units sold and commissioned units that contribute to reduced energy costs, lower fuel consumption and decreased CO₂ emissions, while offering attractive payback periods for our customers and enabling profitable growth for Climeon.

Lena Sundquist, CEO, Climeon

For full report, please see attached file below.