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

FURTHER DELIVERIES AND A STRENGTHENED MARKET POSITION
During the quarter, Climeon delivered its first HeatPower 300 system to Jiangsu New Yangzi Shipbuilding in China, while the industrial reference installation at NEO GROUP in Lithuania reached two years of commercial operation with continued high availability. As more HeatPower systems enter commercial operation, customers are able to evaluate the technology's performance, reliability and business value based on proven operational data. At the same time, Climeon continues to see strong interest from industrial customers across Europe, with a growing number of ongoing customer discussions related to industrial waste heat recovery.

APRIL - JUNE

• Order intake amounted to SEK 0.0 million (5.2).
• Net sales amounted to SEK 0.4 million (1.8) and were primarily relating to revenue from services delivered for HeatPower 300 systems.
• Operating profit amounted to SEK -21.8 million (-20.6).
• Profit after financial items amounted to SEK -21.9 million (-20.2).
• Earnings per share, before dilution and after, amounted to SEK -0.36 (-0.52).
• Cash flow from operating activities after changes in working capital amounted to SEK -10.7 million (-9.5).

SIGNIFICANT EVENTS

• Delivery of the first HeatPower 300 system to Jiangsu New Yangzi Shipbuilding in China.
• Climeon's HeatPower systems demonstrated verified energy savings at NEO GROUP, maintaining 99% operational availability.
• Completed a directed share issue of 11,958,409 Class B shares, raising approximately SEK 23 million before transaction costs.
• At the Annual General Meeting on 18 May, Kent Sander was elected Chairman of the Board and Olle Bergström was elected as a new member of the Board of Directors.

JANUARY - JUNE

• Order intake amounted to SEK 0.0 million (5.2).
• Net sales amounted to SEK 6.9 million (7.0).
• Order backlog amounted to SEK 11.2 million (15.4).
• Operating profit amounted to SEK -45.5 million (-60.6).
• Profit after financial items amounted to SEK -45.6 million (-63.5).
• Earnings per share, before and after dilution, amounted to SEK -0.81 (-1.70).
• Cash flow from operating activities after changes in working capital amounted to SEK -23.1 million (-18.9) and total cash and cash equivalents amounted to SEK 11.9 million (21.8). In addition, restricted cash amounted to SEK 3.2 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 15.1 million.

A word from our CEO:
ENERGY EFFICIENCY – A STRATEGIC IMPERATIVE

Over the past few months, global developments have been dominated by geopolitical shifts and increased uncertainty, affecting businesses across industries. For Climeon, however, these developments have largely strengthened the market conditions for our technology, as the demand for alternative methods of generating energy continues to increase.

It is becoming increasingly clear that Europe needs to accelerate its energy transition by producing electricity in new, more cost-effective ways while reducing its dependence on imported fossil fuels. Many European industries are facing increasing competitive pressure while at the same time managing rising costs for electricity, fuel and raw materials. As a result, interest in energy efficiency has never been greater. At Climeon, we currently have more ongoing industrial sales opportunities across Europe than ever before. Thanks to our two HeatPower 300 installations at NEO GROUP, which have maintained 99% operational availability and demonstrated attractive payback periods, we are in a strong position to convert similar opportunities into new orders.

Within the marine segment, customer discussions continue for both newbuild and retrofit installations. However, global uncertainty and disruptions to key shipping routes, particularly the temporary closure of the Strait of Hormuz, affected the number of new customer enquiries during the quarter. Several shipowners prioritised day-to-day operations over new investment decisions. We believe this is a temporary effect and expect enquiry levels to return to more normal levels during the second half of 2026.

Our position in the Chinese shipbuilding market was further strengthened during the quarter through the first delivery of a HeatPower 300 system to Jiangsu New Yangzi Shipbuilding, part of one of China's largest commercial shipbuilding groups. At the same time, we continue to increase the number of systems operating at sea, generating electricity while reducing fuel consumption and emissions-related costs. Today, we have a broad reference base spanning European and Asian shipowners, both newbuild and retrofit vessels, as well as deliveries through leading shipyards in Korea and China. Having systems in commercial operation that deliver verified fuel savings gives us a significantly stronger position in discussions with prospective customers. In early September, we will once again participate in SMM in Hamburg, one of the world's leading maritime trade fairs. We look forward to meeting customers there with an even stronger reference base and verified fuel and CO₂ savings from our systems operating onboard vessels.

During the quarter, we successfully completed a directed share issue, which received strong support from both existing and new shareholders. We also adapted our organisation to support the company's next phase of development. As the HeatPower 300 platform has reached a high level of maturity, we have increased our focus on sales and market development while streamlining our product development organisation.

Climeon is well positioned with a product that delivers measurable value for our customers, a growing base of commercial references, favourable market conditions and a strong pipeline of ongoing sales opportunities. I would also like to thank all shareholders for their continued support and engagement. We wish you all an enjoyable summer and look forward to updating you on Climeon's continued progress in the months ahead.

Lena Sundquist, CEO, Climeon

For full report, please see attached file below.