BREAKTHROUGH ORDER FROM A CHINESE SHIPYARD AND FURTHER COMMISSIONING OF HEATPOWER 300 ON VESSELS
During the quarter, Climeon continued the roll‑out of HeatPower 300 within the marine sector. The company received an initial HeatPower 300 order valued at MSEK 4.6 from Jiangsu New Yangzi Shipbuilding in China, with delivery planned for 2026. A further four HeatPower 300 systems were commissioned on A.P. Møller‑Maersk’s new container vessels, built by the Korean shipyard HD Hyundai Heavy Industries. The retrofit installations on existing vessels are also progressing according to plan, with one system now in operation and another scheduled to be commissioned during the final quarter of the year. China, South Korea and retrofits on existing vessels are markets with significant growth potential.

JULI - SEPTEMBER

• Order intake amounted to MSEK 4.6 (0.0).
• Net sales amounted to MSEK 4.8 (18.8) and primarily related to revenue from delivered HeatPower systems.
• Operating result amounted to MSEK -30.3 (-26.0).
• Result after financial items amounted to MSEK -30.6 (-28.2).
• Earnings per share, before dilution, were SEK -0.72 (-0.66).
• Cash flow from operating activities after changes in working capital improved to MSEK -11.3 (-27.9).

SIGNIFICANT EVENTS DURING THE QUARTER

• Climeon secured a first order worth MSEK 4.6 from Jiangsu New Yangzi Shipbuilding in China for HeatPower 300 for a container vessel under construction for a major Asian container shipping company. Delivery to the shipyard is planned for 2026.
• Climeon carried out a further four commissionings of HeatPower 300 on board vessels—this time on the newly built container ships “Beijing”, “Bangkok”, “Brisbane” and “Brussels”, which are vessels two through five in A.P. Møller Maersk’s series of container ships being built by the Korean shipyard HD Hyundai Heavy Industries.
• The retrofit installations of HP300 on existing vessels are proceeding according to plan. One system has now completed technical commissioning and is producing electricity on board the vessel, and the second system is planned to be commissioned in the final quarter of this year.

JANUARY – SEPTEMBER

• Order intake amounted to MSEK 15.8 (0.8).
• Net sales amounted to MSEK 11.8 (32.9).
• Order backlog amounted to MSEK 16.2 (18.5).
• Operating result amounted to MSEK -90.9 (-74.5).
• Result after financial items amounted to MSEK -94.1 (-77.0).
• Earnings per share, before dilution, were SEK -2.21 (-1.81).
• Cash flow from operating activities after changes in working capital improved to MSEK -30.2 (-67.2), and total cash and cash equivalents amounted to MSEK 11.8 (26.3). In addition, restricted cash amounted to MSEK 2.7 relating to guarantees for upcoming customer deliveries, which will be released starting in Q4 2025. Total cash and cash equivalents, including restricted cash, thus amounted to MSEK 14.5.

EVENTS AFTER THE BALANCE SHEET DATE

• Climeon carried out a directed share issue of 8,489,886 class B shares, raising approximately MSEK 29 before issue costs.
• Henrik Österman has assumed the role of CTO, replacing Jonas Måhlén, who is moving on to a new assignment outside Climeon.

A WORD FROM OUR CEO:
BREAKTHROUGH ORDER IN CHINA AND CONTINUED PROGRESS FOR CLIMEON HEATPOWER IN THE MARINE MARKET

During the quarter, it has become even clearer how timely Climeon’s HeatPower 300 is for the shipping industry’s transition to reducing fuel consumption, improving vessels’ energy efficiency, and lowering carbon dioxide emissions. The order from Jiangsu New Yangzi Shipbuilding in China is a clear breakthrough order in the Chinese shipyard market. Jiangsu Yangzi continuously builds large series of vessels, and securing an order and reference there requires dedicated sales efforts over an extended period. Climeon has also worked for a long time with the Asian container shipping company that ordered this vessel, conducting detailed analyses and calculations of both Climeon’s technology and alternative energy efficiency solutions. Each order we win creates ripple effects: we receive positive attention from the international maritime trade press, the volume of enquiries continues to increase, and all the ongoing dialogues and sales projects we have under way intensify further.

For the marine industry, however, the most important thing is that the systems deliver as they should and generate clear economic value for shipowners. We are now demonstrating this time and again by continuing to commission more and more HeatPower 300 systems on board vessels that generate sustainable electricity and are operated by the crew on board. Our well functioning systems open the door to follow on business and additional reference customers.

We are currently working intensively on a number of marine projects with various shipowners who are building new vessels in both China and Korea. The shipowners’ primary incentives to invest in our technology are fuel savings and lower costs for carbon dioxide emissions, but also the ability to position their vessels to customers as more energy efficient. The EU’s new Emissions Trading System (ETS) for shipping means that, as of this year, shipowners calling at European ports must compensate for 40% of their carbon dioxide emissions. For vessels powered by traditional fossil fuels, the cost of these emission allowances can already this year amount to significant sums, and when the system is fully implemented in 2026 and shipowners must compensate for all carbon dioxide emissions, the cost of allowances will more than double. This further strengthens the incentives for investments in energy efficient and sustainable technology such as HeatPower 300. To be able to run a large number of sales projects in parallel in both China and Korea, we are working in these countries together with our respective sales partners, Grandbow and World Ocean.

In the energy and industrial markets, our installations at NEO GROUP in Lithuania and Landmark Power Holdings in England continue to deliver sustainable electricity and contribute to reduced carbon dioxide emissions. We see increasing demand, particularly in the market for engine driven power plants that ensure power supply to AI data centers, whose electricity consumption in Europe is expected to nearly triple by the end of the decade. Here, our systems can play a decisive role in more efficient and climate friendly energy production.

In November, Henrik Österman will take over as CTO at Climeon. Henrik has a solid technical and leadership background and will be a positive addition to Climeon, not least as he has worked with ORC technology for a large part of his career. With HeatPower 300 fully developed, the focus is now on optimizing performance and production costs to strengthen scalability and profitability, while further developing the platform to meet specific customer and market requirements. In addition, the growing installed base is creating a growing aftermarket, where service and spare parts will gradually become a recurring source of revenue.

I would like to take this opportunity to thank all existing and new shareholders for your commitment and your participation in both our latest and earlier share issues. It is thanks to you that we can continue our work toward profitable growth, as well as increased production of sustainable electricity and reduced carbon dioxide emissions for our customers.

Lena Sundquist, CEO, Climeon

For full report, please see attached file below.