Interim Report for the Period January 1 – September 30, 2026

MORE HEATPOWER SYSTEMS IN OPERATION GENERATING ELECTRICITY FOR CUSTOMERS AND GROWING SALES ACTIVITY
During the quarter, Climeon completed the commissioning of another HeatPower 300 system on board an existing container vessel, while the number of customer inquiries and ongoing sales discussions increased in both the marine and industrial segments. Several customer projects progressed to more detailed technical and financial evaluations ahead of potential investment decisions. Climeon completed a directed share issue of SEK 50 million, strengthening the company’s financial position to support continued commercialization in both the marine and industrial markets.

JULY - SEPTEMBER

• Order intake amounted to SEK 0.0 million (4.6).
• Net sales amounted to SEK 4.5 million (4.8) and were primarily relating to revenue from services delivered for HeatPower 300 systems.
• Operating profit amounted to SEK -19.5 million (-30.3).
• Profit after financial items amounted to SEK -19.4 million (-30.6).
• Earnings per share, before dilution and after, amounted to SEK -0.28 (-0.72).
• Cash flow from operating activities after changes in working capital amounted to SEK -12.0 million (-11.3).

SIGNIFICANT EVENTS

• Climeon completed the commissioning of another HeatPower 300 system on board an existing container vessel.
• Climeon participated in the SMM 2026 maritime trade fair in Hamburg and introduced Marcus Sannholm as its new Head of Marine Sales.
• Climeon completed a directed share issue of Class B shares totaling approximately SEK 50 million.
• Climeon held an Extraordinary General Meeting on 29 September, at which a resolution was passed on a directed share issue of Class B shares to eligible subscribers covered by Chapter 16 of the Swedish Companies Act.

JANUARY - SEPTEMBER

• Order intake amounted to SEK 0.0 million (9.8).
• Net sales amounted to SEK 11.5 million (11.8).
• Order backlog amounted to SEK 6.9 million (15.4).
• Operating profit amounted to SEK -65.0 million (-90.9).
• Profit after financial items amounted to SEK -64.9 million (-94.1).
• Earnings per share, before and after dilution, amounted to SEK -1.08 (-2.41).
• Cash flow from operating activities after changes in working capital amounted to SEK -35.0 million (-30.2) and total cash and cash equivalents amounted to SEK 44.9 million (21.8). In addition, restricted cash amounted to SEK 2.8 million, relating to guarantees for ongoing customer deliveries. These guarantees are expected to be released starting in Q1 2027. Total cash and cash equivalents, including restricted cash, therefore amounted to SEK 47.7 million.

A word from our CEO:
FOCUS ON CUSTOMERS AND MARKET DEVELOPMENT
During the third quarter, customers, sales and market development remained key priorities for us at Climeon. High energy and fuel costs, combined with a growing need for energy efficiency, are contributing to increased interest in Climeon's HeatPower technology. We have more ongoing customer discussions in both the marine and industrial segments, are submitting more quotations and receiving more incoming inquiries, while actively reaching out to new potential customers. We are now seeing more customer discussions develop into concrete projects, with significant potential to convert into orders.

On 1 September, Marcus Sannholm assumed the role of Head of Marine Sales. Marcus brings extensive experience from the marine industry and will lead our continued sales efforts in this segment. During the quarter, we held intensive discussions with existing customers interested in installing Climeon HeatPower on additional vessels, as well as with several new customers. At the SMM maritime trade fair in Hamburg in September, there was strong interest in energy efficiency and waste heat recovery. The event provided an opportunity to meet both existing and potential customers, and several of these contacts have since developed into ongoing sales discussions.

During the quarter, we also completed the commissioning of another HeatPower 300 system on board an existing container vessel. With more systems in commercial operation, we continue to build a broad reference base with documented results from real operating conditions. These proven installations clearly demonstrate the value Climeon delivers on board vessels by generating electricity, saving fuel and reducing carbon emissions.

In the industrial segment, we have adopted a more targeted approach to market development, with a particular focus on the chemical and process industries, as well as other applications where waste heat temperatures and availability are well suited to HeatPower 300. This puts us in a stronger position to identify projects with attractive investment economics and clear customer value. During the quarter, existing discussions intensified and many new ones were initiated. In several projects, customers have engaged external installation contractors to prepare detailed technical documentation for installation. This is an important part of industrial investment processes and demonstrates that several of our customer discussions have progressed to a more concrete stage.

In mid-September, we completed a directed share issue of approximately SEK 50 million, which received strong support from both new and existing shareholders. The investors include several with a particular interest in the energy sector, which is positive for Climeon's continued development. Our ongoing efforts to improve operational efficiency have delivered results in the form of steadily declining costs and improved financial performance. As the HeatPower 300 platform has now reached a high level of maturity, we have further adjusted our cost base, placing greater emphasis on market development, customers and sales.

We have now entered the final quarter of the year with more ongoing sales discussions, a growing reference base and several marine and industrial projects that have advanced further in customers' evaluation processes. We have a product that generates electricity and delivers value to our customers, while the need for cost-effective energy recovery continues to grow. Our focus going forward is clear: to advance ongoing projects towards investment decisions and new orders. With a more focused organization, a mature product platform and a strengthened financial position, we are well positioned to continue developing Climeon's business.

Lena Sundquist, CEO of Climeon

For full report, please see attached file below.