FINANCIAL RESULTS FIRST QUARTER 2026

• Net sales amounted to SEK 12.7 million (9.5)
• Total revenue amounted to SEK 12.6 million (19.7)
• Operating profit amounted to SEK -11.1 million (-14.2)
• Operating profit after financial items amounted to SEK -11.3 million (-14.2)
• Cash flow amounted to SEK -19.3 million (-5.6)
• Net cash, end of period, amounted to SEK 18.3 million (26.3)
• Liquidity ratio amounted to 99% (70)
• Adjusted liquidity ratio amounted to 99% (132) [1]
• Order backlog coating systems at period end amounted to SEK 0 million (0) [2]
• Order backlog Coating Services at period end amounted to SEK 4.5 million (2.6) [2]

BUSINESS HIGHLIGHTS DURING THE FIRST QUARTER 2026

• No significant events occurred during the period

BUSINESS HIGHLIGHTS AFTER THE PERIOD

• Order for an INLINECOATER™ IC500 from HJWAVE, a Korean supplier of radar waveguide antennas for autonomous driving – order value in the EUR 1.5 million range

[1] In Q1 2025 included the part of the inventory that was financed by customer pre-payments.
[2] Future agreed leasing revenue of SEK 8.8 million over 36 months for a production line leased out by the subsidiary in China is not included in the backlog figures.

CEO’s COMMENTARY

Following a long period of customers’ delayed willingness to invest in systems, we secured – following the end of the quarter – a system order within one of our core segments, confirming that the business discussions we have pursued persistently and purposefully over an extended period are beginning to translate into orders. The development reflects what we have seen in the market – that customers are advancing projects, even if their decision-making takes time.

Stable Q1 – system order after the end of the quarter
Net sales during the first quarter amounted to SEK 12.7 million (9.5). As in previous years, the business was affected by seasonal effects linked to the Chinese New Year, which temporarily reduced activity in China. We also experienced some delay in Coating Services order intake, which affected net sales. This was compensated for by a positive one-off effect of SEK 4.8 million. The one-off effect is a consequence of the sale of metals in inventory to accelerate the transition to the new metals management agreement previously communicated.

After focused sales work during the quarter, discussions regarding system deals remained active and after the end of the quarter we received an order for an INLINECOATER™ IC500 systems from HJWAVE, a Korean supplier of waveguide antennas for vehicle radar. The deal brings us a new system customer in the Korean market and broadens our presence in the electronics segment with applications in the automotive industry.

The order confirms the picture of long sales cycles, where external factors have influenced decision-making processes. It is gratifying that we are now beginning to see the results of sustained sales efforts.

We continue to engage in discussions regarding an INLINECOATER system with our long-standing customer LINDBERG in the luxury segment, in line with the letter of intent announced on December 11, 2025.

Expanded customer relationships and development within SOFC/SOEC
The customer base has continued to develop, and we are working to broaden collaboration with existing customers while addressing new application areas. Business development entails consistent hard work with results that can vary greatly between quarters.

Many customer relationships begin with smaller paid test orders, which is a natural step in the qualification process for future volume and system deals. The ongoing activity increases the likelihood both of larger volumes within Coating Services and, ultimately, system sales.

The first quarter saw continued test orders within electrolysis and fuel cell applications from existing customers. After the quarter, we received test orders from two larger, strategically important customers within SOFC and PEM electrolysis. All of these new deals are at an early stage but give us confidence in continued positive developments.

Our work with solid oxide technology, which includes both SOFC and SOEC, continues in line with the strategic direction we established at the end of 2025. Interest in energy-related applications continues to grow, particularly in power supply to data centers where the rapid expansion of AI infrastructure is driving the need for stable and efficient energy solutions. At the same time, there are broader structural drivers linked to the development of energy systems that are strengthening the demand for this type of solution. In this context, solid oxide technology has significant potential. These applications involve long development cycles, but we expect them to provide significant business opportunities in the future.

In PEM electrolysis, we continue our work with iridium oxide coatings. We have several customers who are evaluating the integration of iridium oxide into their production of electrode plates instead of iridium on adjacent membranes. In practice, this means that an additional coating step can be moved to our machine systems, which both streamlines customers' production and increases the value per component.

Cost discipline with a focus on profitability
During the quarter, we implemented additional measures to adapt operations to the current market situation. The workforce in the parent company has now decreased by a total of approximately 42 percent since December 2024. In parallel, measures are being implemented to reduce production costs in the systems business, which will improve margins of future deliveries.

Long-term market growth drivers
The hydrogen market remains in a transitional phase, with China continuing as the driving force. During the quarter, however, we observed that uncertainty surrounding the regulatory framework in China affected investment willingness. Towards the end of the quarter in March, Chinese authorities presented a pilot program that sets the direction for upcoming hydrogen investments within the framework of the new five-year plan, with continued clear support for hydrogen-based solutions. Our view is that this clarity will contribute to increased activity as implementation progresses.

The electrolysis market is consolidating, leading to fewer but more financially resilient players. Those players that continue through the consolidation will have a stronger basis for investing in production equipment and improved opportunities to attract both private and public financing. Our established presence with the leading electrolysis players in our main markets gives us good opportunities to participate in the growth that follows as the market matures.

Ongoing conflicts and increased geopolitical tensions also affect investment decisions in the short term. At the same time, global developments highlight the vulnerability of today's energy systems, where dependence on transport through strategic bottlenecks and imports of fossil fuels can have significant consequences.

Against this background, the driving forces for energy resilience and energy independence are strengthening, especially in regions with high imports of fossil fuels, for example East Asia. Interest is increasing in technologies that enable flexible and local energy production, where different types of energy carriers may be necessary depending on availability and needs. This strengthens the long-term relevance of stand-alone energy solutions, including systems using PEM and solid oxide technology.

Outlook
Development during the quarter was in line with the strategy we have set forth, where our focus is on broadening the customer base, increasing test volumes and converting customer relationships into volume and system deals within our four main segments: energy, automotive, electronics and luxury products.

The system order secured after the end of the quarter is the result of the measures taken and the focus that has characterized the business over the past year. The completed share issue, which both strengthened our financial position and helped us continue developing the business, has been a prerequisite for this work.

We are now continuing to develop business opportunities within energy-related applications, with a strong focus on solid oxide technology, where we see growing market interest. In parallel, Coating Services contributes a stable revenue base, mainly from existing customers in PEM electrolysis and PEM fuel cells, while also providing a platform for developing new customer relationships for future system business.

Together with the lower cost level and measures to strengthen system margins, we have improved the conditions for reaching profitability as business volumes increase.

Jonas Nilsson, CEO

Presentation

Impact Coatings invites investors, analysts and the media to a presentation of this Interim Report on Wednesday, April 29 at 09:00 am (CEST). CEO Jonas Nilsson and CFO Lena Åberg will comment on the Interim Report and take questions. The presentation will held via webcast in English.