OXE Marine AB: OXE Marine AB (publ) Interim Report 1 October to 31 December 2025

OXE Marine AB (publ)

Fourth Quarter 2025

• Consolidated Net turnover amounted to SEK 30.7 m (SEK 43.5 m).
• Consolidated Gross Profit amounted to SEK 8.1 m (SEK 11.6 m) with a gross margin of 26% (27%).
• Consolidated EBITDA amounted to SEK -16.9 m (SEK -16.9 m).
• The consolidated result for the quarter amounted to SEK -23.7 m (SEK -29.8 m).
• Consolidated EPS and Diluted EPS amounted to SEK -0.03 (SEK -0.07).

January - December 2025

• Consolidated Net turnover amounted to SEK 184.1 m (SEK 173.8 m).
• Consolidated Gross Profit amounted to SEK 59.7 m (SEK 55 m) with a gross margin of 32% (32%).
• Consolidated EBITDA amounted to SEK -33.4 m (SEK -52.7 m).
• The consolidated result for the year amounted to SEK -61.6 m (SEK -97.9 m).
• Consolidated EPS and Diluted EPS amounted to SEK -0.08 (SEK -0.29).

Significant events during the fourth quarter

• OXE Marine and GM Marine enter into a development agreement: GM's Duramax engines to power a new generation of OXE outboards.
• OXE Marine signs new financing agreements and secures a total of SEK 49.2 m for all-time-buy to support transition from BMW to GM powertrains.

Significant events during the year until December

• OXE Marine receives the largest order in the company's history of USD 6.6 m to supply a United States Governmental agency.
• OXE Marine AB changes Certified Adviser to Redeye AB.
• OXE Marine and GM Marine enter into a development agreement: GM's Duramax engines to power a new generation of OXE outboards.
• OXE Marine signs new financing agreements and secures a total of SEK 49.2 m for all-time-buy to support transition from BMW to GM powertrains.

Significant events after the reporting period

• No significant events after the quarter

Comments from CEO

Strong strategic steps taken in Q4
"In what was a soft quarter, with several governmental projects delayed, we took two very important strategic steps that will strengthen OXE Marine's long-term position: 1) Announcing our partnership with GM which will advance and secure our technology roadmap; and 2) Successfully completing the financing of SEK 65 m worth of BMW powerheads."

As announced on 16 January 2026, the fourth quarter reflected a challenging trading environment, with several projects delayed in the US. Consolidated net turnover amounted to SEK 30.7 m (43.5) and EBITDA amounted to SEK -16.9 m (-16.9). Included in the result were two one-off items: in accordance with our accounting policies for inventory and as a result of the significant increase in BMW powerheads, we increased our provision for obsolete inventory by SEK 1.7 m; and an increase in bad debt provisions amounting to SEK 0.7 m. Gross margin amounted to 26% (27%), and excluding the one-off increase in inventory provision, gross margin would have amounted to 31.5%. In addition, currency effects impacted gross margin negatively by approximately 4% during the quarter, relative to Q4 2024, as well as US tariffs which had a negative impact of approximately 2% on gross margin during the quarter.

For the full year, net turnover increased to SEK 184.1 m (173.8) and EBITDA improved significantly to SEK -33.4 m (-52.7), confirming that our operational improvements and cost discipline are yielding tangible results.

During the year, we executed several strategic initiatives that will shape OXE Marine's long-term trajectory. We secured the largest order in the Company's history, entered into a development agreement with GM Marine to power the next generation of OXE outboards, and arranged SEK 49.2 m in financing to support an all-time-buy of BMW powertrains, bringing the total investment in powerheads to SEK 65 m and ensuring supply continuity during our transition to GM platforms.

Operationally, we maintained strict cost control and strengthened efficiency across the organization. Operating expenses declined year-on-year to SEK - 92.8 m (-106.1), while gross profit increased to SEK 59.7 m (SEK 55.0 m) with a stable gross margin of 32%, highlighting the resilience of our underlying business model, despite an increase of US tariffs and unfavourable currency movements.

Inventory Build Supporting Powertrain Transition
Inventory at year-end amounted to SEK 133.9 m (SEK 107.3 m), an increase of SEK 26.6 m compared with the prior year. This increase is strategic and relates to the financed all-time-buy of BMW engine blocks to secure supply during the transition period toward GM powertrains. This initiative ensures production continuity, reduces supply risk, and supports customer deliveries as we shift to our next-generation platform.

As a result, current liabilities increased to SEK 110.3 m (SEK 62.2 m), primarily reflecting financing related to this all-time-buy program, including a SEK 30.0 m facility provided by SEB during the quarter and SEK 19.2 m in shareholder loans.

Cash Flow and Financial Position
Cash flow during the quarter reflected working-capital movements associated with strategic inventory investments. Operating cash flow amounted to SEK -39.8 m (-26.7), with the largest movements driven by changes in inventory amounting to SEK -36.1 m. On a full-year basis, operating cash flow totalled SEK -71.9 m (-51.3), primarily impacted by inventory increases (-23.8 m) and reductions in trade payables (-11.8 m). Closing cash amounted to SEK 17.9 m (44.3 m).

GM Marine Development Agreement
The development of the LZ0, a 3.0L inline-six Duramax turbo-diesel engine is well underway. The LZ0 is produced in Flint, Michigan and is the production engine for several GM pickup and SUV brands. GM Marine have already shown to be very supportive of OXE as one of its integrators and have attended several of OXE's marine events, demonstrating the strong partnership and commitment.

Looking Ahead
Entering 2026, we continue to see a slow US governmental market, where projects remain delayed. On a positive note, we start to see an increase in opportunities in Europe and other regions outside the US, however, these will take some time to come to fruition.

I would like to extend my sincere thanks to the dedicated OXE team for their continued hard work and commitment during 2025 and I look forward to continued improvements in 2026 and our relentless drive to achieve profitability.

- Paul Frick, CEO

The Interim report is available for download at: https://www.oxemarine.com/investors/financial-reports

For further information, please contact:
Paul Frick, CEO, OXE Marine AB, [e-mail], [phone]
Jonas Wikström, Chairman of the Board, OXE Marine AB [e-mail], [phone]

About OXE Marine
OXE Marine AB (publ) is the company behind the world's first high performance diesel outboard. The company's unique and patented solutions for high torque transmission between powerhead and lower leg has led to a global high demand for the company's outboards. Enabling improved performance and fuel efficiency in an outboard, OXE Marine redefines possibilities in the marine sector.

OXE Marine AB (publ) is listed on the NASDAQ First North Growth Market (STO: OXE). Redeye Sweden AB is the Company's Certified Adviser.