INTERNATIONAL ESTABLISHMENT OF CLIMEON HEATPOWER AND IMPROVED CASH FLOW
Completed Commissioning, and Additional Class Approvals for HeatPower 300
Climeon continues to advance the market establishment of HeatPower 300 in the marine sector and has strengthened its presence in the energy and industrial markets. During the period, the company participated in international marine trade fairs in China and South Korea and entered into additional agreements with sales partners to reinforce its commercial presence in the European energy and industrial markets. All HeatPower 300 systems in the six-vessel newbuild series constructed by HD Hyundai Heavy Industries have been commissioned, and HeatPower 300 has been approved in Factory Acceptance Test (FAT) and certified by RINA for installation on a bulk carrier. Cost-saving measures implemented in ongoing operations achieved the intended results during the quarter and are expected to reach their full impact in Q1 2026.
OCTOBER - DECEMBER
- Order intake increased to SEK 0.0 million (5.4).
- Net sales amounted to SEK 1.6 million (9.7) and were primarily attributable to the delivery of HeatPower systems and system components.
- Operating profit/loss amounted to SEK -28.6 million (-27.8) incl non-cash, non-recurring items amounting to SEK -6.4 million (0.0), related to inventory write-downs.
- Profit/loss after financial items amounted to SEK -49.0 million (-26.7) including a non-cash, non-recurring financial item of SEK -20.0 million (0.0) related to the change in value of the holding in Baseload Capital AB.
- Earnings per share, before dilution, amounted to SEK -0.96 (-0.52).
- Cash flow from operating activities after changes in working capital improved to SEK -13.0 million (-16.2).
IMPORTANT EVENTS
- Together with its local sales partners, Climeon participated in the marine trade fairs Marintec China and Kormarine, where discussions with shipowners and shipyards confirmed increased interest in energy-efficient vessels and Climeon's technology in the strategically important newbuild markets of China and South Korea.
- Two additional agreements with sales partners were entered into to strengthen Climeon's commercial presence in the European energy and industrial markets.
- Climeon completed the commissioning of all HeatPower 300 systems in the six-vessel newbuild series of container vessels constructed by HD Hyundai Heavy Industries.
- HeatPower 300 was approved in the Factory Acceptance Test (FAT) and certified by the marine classification society RINA for installation on a NovaAlgoma Cement Carriers cement vessel and has been prepared for delivery to a Chinese shipyard.
- Climeon completed a directed share issue of 8,489,886 Class B shares, raising approximately SEK 29 million before transaction costs.
JANUARY - DECEMBER
- Order intake amounted to SEK 15.8 million (6.2).
- Net sales amounted to SEK 13.4 million (42.6).
- Order backlog amounted to SEK 15.4 million (18.5).
- Operating profit amounted to SEK -119.5 million (-102.3) including non-cash, non-recurring items amounting to SEK -26.8 million (10.3).
- Profit/loss after financial items amounted to SEK -143.1 million (-103.7) including a non-cash, non-recurring financial item of SEK -20.0 million (-3.2) related to the change in value of the holding in Baseload Capital AB.
- Earnings per share, before dilution, amounted to SEK -2.80 (-2.03).
- Cash flow from operating activities after changes in working capital improved to SEK -43.3 million (-83.4) and total cash and cash equivalents amounted to SEK 21.8 million (26.3). In addition, restricted cash amounted to 3.1 million SEK for guarantees related to future customer deliveries, which will be released from Q1 2027. Thus, total cash and cash equivalents, including restricted funds, amounted to 24.9 million SEK.
EVENTS AFTER THE BALANCE SHEET DATE
The HeatPower 300 system intended for NovaAlgoma Cement Carriers' cement vessel has been delivered for installation at a Chinese shipyard.
A word from our CEO:
CLIMEON IN AN EXCITING PHASE WITH STRONG GLOBAL GROWTH POTENTIAL
During the fourth quarter of 2025, we continued to establish Climeon HeatPower in the marine market. We deepened dialogues with shipowners and shipyards, continued to work on projects in various phases, participated in the two major marine trade fairs Marintec in China and Kormarine in South Korea, and continued to deliver according to plan in ongoing projects.
Our customer dialogues indicate a broad and growing interest in energy-efficient solutions and waste-heat recovery using Climeon's technology, both for newbuild and retrofit projects. Having Climeon systems in operation on ocean-going vessels that generate sustainable electricity, reduce fuel consumption, and lower carbon emissions gives us a significant advantage in customer discussions, as we can verify-using data from vessels in actual operation-how much fuel and CO2 emissions shipowners can save by installing our technology.
During the latter part of 2025, market conditions in the marine sector have also become increasingly favorable for Climeon following the implementation of the EU Emissions Trading System (EU ETS) for maritime transport, under which shipowners have begun to incur costs for emission allowances when operating in Europe. As emissions increasingly translate into direct costs, energy efficiency and reduced fuel consumption are becoming more central to marine investment decisions, where waste-heat recovery technologies such as Climeon's HeatPower represent a relevant and cost-effective solution.
During the quarter, we also reached several important milestones. All six HeatPower 300 systems included in the order from HD Hyundai Heavy Industries in South Korea have now been commissioned and are in commercial operation, confirming both functionality and performance in real marine environments. The first HeatPower 300 module for NovaAlgoma Cement Carriers was approved through Factory Acceptance Testing (FAT) and has now been delivered to the shipyard in China, thereby broadening our reference base to include Chinese shipyards, additional vessel types, and further marine classification societies.
Within the energy and industrial markets, we are seeing a gradual increase in interest in our solutions, with dialogues and projects now progressing in parallel across all three application areas-industrial processes, land-based engines, and low-temperature geothermal energy. During the quarter, we entered into agreements with two sales partners in different parts of Europe, with whom we are jointly engaging selected customers and projects-collaborations and initiatives that I hope to return to in future updates.
The growing installed base of HeatPower systems continuously generates electricity from waste heat, enabling us to consistently monitor the actual effects of our installations and the value they deliver to our customers. Operational data from both marine and land-based installations show that the systems contribute to measurable electricity production and, consequently, to reduced fuel consumption and lower carbon emissions. For us and our customers, this provides important confirmation that the technology not only meets theoretical expectations but also delivers tangible cost savings and environmental benefits in real-world operation.
Efforts to make Climeon's organization and operations as cost-efficient as possible have been ongoing for some time. The measures implemented have now begun to deliver their full effect, and the cost base of Climeon's operations is expected to remain at the current level in the coming years. At the end of October, we completed a directed share issue that raised approximately SEK 29 million before transaction costs. I would like to take this opportunity to thank both existing and new investors in Climeon for your support and confidence in us. Climeon is now in an exceptionally exciting phase, with favorable market conditions, a growing base of reference customers, numerous ongoing customer dialogues, a verified product, and an established production and supply chain that can be scaled as customer dialogues are converted into orders.
Lena Sundquist, CEO, Climeon
To read the full report, please see attached file below.
FOR MORE INFORMATION, PLEASE CONTACT:
Lena Sundquist, CEO, Climeon
+46 708 345 228
Lena.sundquist@climeon.com
About Climeon AB (publ)
Climeon is a Swedish product company operating within the energy technology sector. Climeon's proprietary technology, the Climeon HeatPower system, uses an Organic Rankine Cycle (ORC) process to convert low-temperature heat into clean, carbon free electricity. Providing access to dependable and cost-effective sustainable power, HeatPower enables industries to increase energy efficiency, decrease fuel consumption, and reduce emissions. As a non-weather-dependent source of green energy, HeatPower has the potential to diversify and safeguard the renewable energy mix and, therefore, accelerate the global transition to a net-zero future. Climeon's B shares are listed on the Nasdaq First North Premier Growth Market. FNCA Sweden AB is a Certified Adviser. Learn more at climeon.com.
This information is information that Climeon is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-02-06 07:28 CET.
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