Instalco AB
STO:INSTAL

Watchlist Manager
Instalco AB Logo
Instalco AB
STO:INSTAL
Watchlist
Price: 31.82 SEK -2.33% Market Closed
Market Cap: 8.4B SEK
Have any thoughts about
Instalco AB?
Write Note

Earnings Call Transcript

Earnings Call Transcript
2022-Q2

from 0
Operator

Welcome to the Instalco Q2 2020 report. [Operator Instructions]. Today, I'm pleased to present the CEO, Robin Boheman. Speaker, please begin.

R
Robin Boheman
executive

Hi, everyone, and welcome to our Q2 report for 2022. My name is Robin Boheman. I'm the CEO of Instalco. And with me today I have my CFO, Christina Kassberg; and also Fredrik Trahn, Head of IR, with me.

So next slide, please. First of all, for those who don't know us so well, we are a leading installation company within the Nordics. We provide heating and plumbing, electrician, mentation, cooling, industrial installation, which I will come back to a little bit more in detail later in the presentation and also technical consultants.

We are a decentralized structure. So we have about 120 subsidiaries located in the Nordics that are highly specialized and local companies, roughly 5,400 employees. And we are supporting them with a small central organization. And our motto is strong profitability with high margins over time.

So next slide, please. This is, of course, a very nice slide to show. It's another milestone for us at Instalco where we reached SEK 10 billion net sales in the last 12 months. So it's been a target for us for a while now. And finally, in Q2, we managed to reach it. So it's an impressive job that has been done in our subsidiaries. So I'm very thankful for that.

So next slide, please. Going into some of the numbers or looking into the last 12 months, Instalco, as you see there, we reached SEK 10 billion net sales. We have an order backlog of roughly SEK 8.1 billion. We managed to turn over in EBITDA SEK 820 million, giving us an EBITDA margin of 7.9%. We have a high cash flow of SEK 907 million, and we have managed to acquire an annual sales of almost SEK 1.9 billion, which is a very high level for us. So overall, the numbers are looking very well, and we're very confident about the future.

So let's go to next slide, please, and look at some of the highlights. So highlights for Q2. As you can see, we had a very high cash flow of SEK 163 million. We managed to grow 34%, which is almost a record high and a really good organic growth of 6.2%. And as I mentioned before, a very strong order backlog, we're also seeing increases here over the -- in all countries, which is very exciting.

Margins are back to Instalco levels. Christina will come back to that a little bit later on, but we are above 8%, which we're very happy with. We are dealing a lot with the price increases on material, mainly in raw materials specifically. We are seeing that in Q2, we have managed that very well. We are back, as I said, we are back to Instalco levels of 8%. We are looking very thoroughly into our purchasing contracts and also how -- which suppliers we are involved with and very thoroughly looking into who is also increasing prices for what reasons. So collaborations with our strong partners will continue, and we will end some partnerships with those that do not follow, as I said, the rules.

We're very solid performance in Sweden. We're also seeing some strong growth acquisitions in Rest of Nordics and some more back to normal situations also in Rest of Nordics. We're seeing that our target there is coming closer. Strong demand for projects and design, and we are also seeing increase in sustainable installations. I think that is mainly driven also by the high energy costs at the moment as seen in Nordics. So overall, a very good quarter. So next slide, please.

And here, I will also hand over to Christina to continue.

C
Christina Kassberg
executive

Thank you, Robin. Yes, in this slide, we see the growth in net sales with the comparison of Q2 present and prior year. Net sales were high during the quarter. They increased by 34.2% and amounted to SEK 3.1 billion. We are delivering a good Q2 report where we see continued healthy demand from the market. We are also satisfied with the trend of a high organic growth rate which was 6.2%. Acquired growth is also impressive and just over 25%, thanks to a successful M&A efforts.

Next slide, please. In this slide, we see the quarterly trend of EBITDA in both millions and margin. EBITDA increased by 25.5%, which corresponds to an EBITDA margin of 8.1%. We are extremely proud of being able to maintain the margin at this strong level. Our companies have coped with the high inflation pressure in a very satisfying way, and we have been able to defend our margins.

Despite the uncertain macro situation, willingness to invest among our customers remains high. This Q2, as in prior years, we were able to raise the margin from the historically somewhat lower level that we tend to see in Q1, beginning of the year.

Next slide, please. This slide shows the quarterly progression of our order backlog. The growth was good during the quarter and willingness to invest among our customers has been high. Our order backlog grew by 22.8% and is now at a record high level in total SEK 8.1 billion, which corresponds to 79% of annual sales. Organically, the order backlog grew by 3.7%, among other things, driven by our Finnish companies. The order backlog of acquired companies contributed with growth of 18%, which is a clear confirmation of our strong acquisition growth.

Next slide. Over to a slide that summarizes segment Sweden in Q2. Sweden has managed the challenging market very successfully and performed well during the quarter. The market situation remained favorable. And the rate of new construction and renovation within both the private and the public sector is stable. Construction investment in industry are at a high level, also the fact of rising electricity prices increases the need for energy efficiency installations.

Overall, net sales increased by 34.1% to SEK 2.4 billion. Organic growth amounted to 8.9% in Sweden, which is a very impressive performance. Acquired growth amounted to 25.2%, which of course, is a performance that we are proud of. The EBITA margin in Sweden landed at, as you can see here, 8.8%.

Next slide, please. Now a summary of segment Rest of Nordic in Q2. Overall, there was a positive trend for the Nordic segment, even though it is still performing below the decide Instalco level. The market in Norway has stabilized as regards both new construction and renovation. The market is driven by major investments in the public sector, such as schools and hospitals, along with private initiative to develop industrial and residential properties. The market in Finland is primarily driven by the major metropolitan areas. But during the pandemic, the market has been sluggish.

Overall, net sales increased by 34.8% to SEK 0.7 billion. Organic growth fell a little bit, and this is primarily attributable to a couple of our Finnish companies. Acquired growth amounted to 25.5%. We are expanding our base of companies in Norway and Finland, so that we can more easily create business synergies between our subsidiaries. The EBITA margin in rest of Nordic landed at 5.8%.

Next slide, please. Finally, on the financial parts, we summarize here our performance in relation to our financial targets. For both growth and capital structure, we are performing well beyond our financial targets. Capital structure is at a higher level compared with historical numbers, but well in line with our acquisition strategy. The pace of acquisitions is strong, which is reflected in the growth that we are delivering.

Over the short term, the increasing pace of acquisition results in a somewhat higher level of indebtedness together with the decision of not using equity as payment method for our recent acquisitions. But we are comfortable with the rate and we are maintaining both a sound level of indebtedness and a strong balance sheet. For cash conversion, we are a little bit below. And finally, happily, the EBITDA margin is above our target in Q2, yet somewhat lower year-to-date and on a 12-month rolling basis.

By that, Robin, I hand it back over to you again.

R
Robin Boheman
executive

Thank you. And I will talk to you about a few projects that we've done. First of all, I want to start off with quite specific project or projects, so to say, it's the order for cruise lines, and I will come back to this. This is a part of our Industrial segment. One of the projects here as an example is MESAB, which is one of our industrial company, which has been engaged by Royal Caribbean and also Carnival Corporation for comprehensive technical installations on a total of 5 cruise ships and installation projects that have been put on hold during the pandemic and are now back and restarting, which is very exciting for us.

The work here involves installation of gas treatment plants, comprehensive technical upgrades that includes feasibility studies, design and installation and also complete exhaust pipe systems. And this is all done while the ship is remaining operation, which requires a great deal of experience and also flexibility, which also MESAB is showing. So it's very exciting to see that this is back on track after the pandemic.

Next slide, please. Another good example of an Instalco project is our Gothenburg-based company Elektro-Centralen, which has been contracted for the electrical installation in conjunction with the new construction of a building for the University of Gothenburg. This is also an example of a partnering project. This time together with Akademiska Hus and Serneke, also showing our experience when it comes to partnering. And this is a Phase I and also construction part that we have received. So very excited that as well. And this is also a proof of that we are continuously taking new orders, as Christina mentioned, that work is continuing to grow.

Next slide, please. Looking into acquisitions so far in 2020. We have done 7 cities contributing about SEK 730 million in sales so far. And in the last quarter, we did 4 acquisitions. Highcon, as we mentioned before, are approved by the Government in Sweden as well. And then we have also done one more industrial acquisition. And I also wanted to highlight the continued growth of doing acquisitions into Nordic. And as you can see on the acquisitions so far, it's actually 4 in Rest of Nordics this year.

This time, we also establish ourselves in Kuopion in Finland with plumbing company, and we are also establishing new grounds in Norway with acquisitions of a rolling. So some really good acquisitions with high margins and a good Instalco fit. And we can also see that we have a continually strong pipeline for the year. So we're looking at a very good acquisition this year as well.

So next slide, please. And the theme of this call is the industry, which is a quite new segment for us in some sense, but we have been working on it for quite some time now, but it's growing steadily, as you saw also on the previous slide.

So if you go to the next slide, please. So the industrial discipline, just to give you a little bit of a background. Actually, one of the first acquisitions we did when we founded Instalco in 2014 was ORAB which is a plumbing company that is focused on the industry. And for us in industry, meaning that the customer is an industrial customer.

We have 15 companies, roughly 500 employees. Main focus is in business area, North, but they do work nationally in Sweden, and we also recently did the acquisition in Finland. So we have established ourselves in Norbotten in the mining industry recently. And as I said, we are also now in Finland with [indiscernible]. And one of our most recent acquisitions, Highcon, leasing and installation of scaffolding structures. So it's somewhat broader perspective, but it's still installation business, but the customer is industrial.

So next slide, please. Here's an example of the companies that represent us in the Industrial segment. like I said, roughly 15 companies and some daughter companies. And to just give you a closer look at the type of operations and our experience shows that it's primarily heavy electrical and piping installations. So with the same type of installation, but on a bigger scale in some sense. Also machine assembly for the industry. We work with design, project planning, energy and safety. So it's the same type of business, but in a larger scale.

We work in all type of industry, but lately, we're working a lot in pharmaceuticals, food industry, but we're also representing a nuclear plant area where we have extensive experience working with the pipeline installation for that type of environment. So as you can see, we offer a broad spectrum of projects and competencies in this area.

Next slide, please. So why are we going into this? There are a few reasons. A lot comes that it's very near by the business that we are doing. This strong growth. We see an increase in demand in this area. I think all of you that is located in the Nordics know all the installations that needs to be done within these new factories will be turning, so to say, the industry around to more carbon neutral industry.

We're also seeing that there is less competition, both when it comes to projects but also when it comes to M&A. And we're also seeing that the collaboration works very, very well among industrial companies. And we haven't seen anything being done the way Instalco have done it so far. So it's quite new ground and really excited to be working with this.

So next slide, please. And the outlook, I mean, we see a growing industrial markets, especially in the northern part of Sweden. You can almost not say how many billions are being invested in the northern part of Sweden, but we're talking about a lot of billions. There are a lot of opportunities for acquisitions. Like I said, there's no one out there competing with us in that same area as we are.

We're also seeing a great move on the people who want to join Instalco. We're also seeing that the Instalco model with this decentralized structure really works among these companies as well and collaborations is on a very high level even if a lot of these companies have just recently joined Instalco.

There's a little bit of a different setup on these type of companies, a little bit more capital heavy in that sense due that the projects are demanding a little bit more capital than normal installation, but we're also seeing that margins are a little bit better than the typical installation business as well.

So next slide, please. Just to give a summary of the presentation today. I think we've given a strong statement today. We are back in business. We are back in Instalco levels in that sense. There is a somewhat challenging macroeconomic situation, but I think we have proven today that we have been able to handle it and also that Instalco model works very well in a challenging market with our decentralized structure.

We have a record high order book, giving us some bringing room for the future as well. And we are surpassing the SEK 10 billion limit for the last 12 months rolling. So that's also very exciting.

So I think with that, I will open up to questions.

Operator

[Operator Instructions] And our first question comes from the line of Carl Ragnerstam of Nordea.

C
Carl Ragnerstam
analyst

It's Carl here from Nordea. A few questions from my side. Firstly, is it possible -- it's very nice to see that the Nordics are continuing to develop nicely with the year-on-year margin uplift. But is it possible to sort of quantify how much of that is driven by M&A margin accretive acquisition that is and how much is driven by more organic initiatives?

R
Robin Boheman
executive

I think we don't have the specific numbers with us or -- but what we can say is some of the recent acquisitions are very -- we're very -- so optimistic about the recent acquisitions that we have done in the Nordics. But so far, it has not contributed that much.

So most of it is due to, sort of say, older companies being a little bit more back on track. But we do hope that the new acquisitions that we've done will increase collaboration and also help us to get a more, so to say, Instalco level margin in Rest of Nordics as well.

C
Carl Ragnerstam
analyst

Very good. And I guess your technical consultants are a bit more cyclical compared to your installers and service technicians as well. So have you seen any changes in the demand situation for your consultants so far? Or is it still a quite healthy market for them as well? .

R
Robin Boheman
executive

Now we still see a healthy market. There is still growing a bit, not in the same rate as we had last year, as we mentioned before, that was a tremendous high growth rate. But we're seeing that they're consolidating themselves and also working on improving their margin. But we have not gotten any signs in that sense of a somewhat slower market that we haven't seen from the consultants. No.

C
Carl Ragnerstam
analyst

Okay. Very good. And also, you've had raw material headwinds for some quarters now. Could you perhaps quantify the raw material headwind in the quarter and compare it to maybe the past few quarters? And also how we should see the second half, if you will still have some raw material headwinds entering Q3? Or when do you expect to be that sort of a neutral raw material situation?

R
Robin Boheman
executive

I think we cannot quantify exactly the impact it has because we have too many projects to kind of recalculate everything. But what we can say is that as you see in Q2, we've been able to handle it quite well. We are back to somewhat more normal Instalco margins. So I think we have proven that we have it more under control, and we are more prepared than we were before.

Just to give an example, I think it was SCBs who were giving out a report about construction index. And that showed that the price increases for the whole index was 8% -- I think it was 8% to 16% increases over the last 18 months. And just to give an example, a typical year in the construction industry is 1% to 2% increase. That just shows you how much it has increased over the past 18 months and how hard it was for the installation companies to kind of cope with this. But we are still seeing price increases in some areas, but we are more prepared than we were before.

C
Carl Ragnerstam
analyst

Okay. That's also very good. And the final one from my side. I guess it might be a difficult question, but you mentioned that, of course, high energy prices, I guess it could be both positive and negatives and customers might hurt by the investments, but some might protect themselves by these energy-efficient upgrades. What do you think is sort of the net for you in the short to midterm here?

R
Robin Boheman
executive

Yes, in that specific area, it's, of course, hard to give an estimate on that specific question. But I mean, if it's any time we, as a company, should start to invest in energy efficiency, it's now. I mean, energy prices has not been higher. We don't see any price decreases. Winter is coming in that sense also. So I think -- I hope that the government takes a little bit of responsibility and starts to give incentives and also doing this, not just giving out money to people with high energy bills, but also giving incentives to actually solve the problem. That's my hope.

Operator

Our next question comes from the line of Markus Almerud of Eric Penser Bank.

M
Markus Almerud
analyst

Markus Almerud here. My first question is on demand. So I just want to check on -- I think we talked in the last quarter about the price increases. We had one price increase in April. And I think you talked about another price increase in August. And I think you said according to my notes that the acceptance for April price increase was quite high. And then we would see what was going to happen to demand. Just want to check with you if you've seen any impact on demand from the higher prices yet?

R
Robin Boheman
executive

No. So far, we haven't seen any impact in that sense. I think people are kind of coping with and understanding that there are price increases in all areas of society at the moment. So I think we can -- it's fair to say that people are expecting price increases and are recalculating their projects in a larger extent. So no, we haven't seen any big changes. And like I said before, and like Christina said, I mean, we have a really strong order backlog at the moment.

M
Markus Almerud
analyst

And if we talk about the August price increases, and you said some of the price increases here and there. What does it like -- what does it look like from your side? Are you having a broader price increase around or do you also raise prices here and that? How does it work right now?

R
Robin Boheman
executive

Now basically, like I mentioned before, we have a lot of -- as I say, a lot of work is being done. We're trying to understand who is increasing prices for the right reasons in that sense and trying to focus on the suppliers that are doing a good job and not just increasing prices because they can. So I think the August price increases, we have been fairly good at coping with in the sense of changing out some suppliers and also changing out some material choices in a lot of projects. So I think we are -- like I said, we are better prepared today than we were 9 to 10 -- 9 to 12 months ago when this all started.

M
Markus Almerud
analyst

And then a couple of questions on the industrial side. So I would assume that the market is very fragmented. So you're the first one who is doing this. So the fragmentation rate should be very, very high. Could you help us to just estimate what kind of market size are we talking about from the industrial market versus the construction market? Is it possible to say? .

R
Robin Boheman
executive

Let's just say it, like I said, nobody has really done what we're doing at the moment in this market and -- but I don't want to give kind of our -- yes, basically, I don't want to disclose how big it is at the moment. I want to have the market for myself and Instalco for a while first.

Operator

Our next question comes from the line of Karl Bokvist of ABG Sundal Collier.

K
Karl Bokvist
analyst

My first one is just we look at the companies that you have announced in terms of annual sales and things like that. It seems at least that the actual M&A contribution has been stronger and better than what the sales growth was when you announced it. So my question is really, are you positively surprised yourselves by strong growth in the recently acquired units?

R
Robin Boheman
executive

I mean, we are, of course, positive in all acquisitions that we do because otherwise, we wouldn't have done them. But I must I agree with you that we have -- without mentioning any specific names because we are happy with all our companies that we acquired. But we have had a few companies that are really, sort to say, bloomed out or accelerated within the Instalco family in that sense, which really are contributing to the collaboration and also really utilizing the possibilities that we have within the group. So yes, we have a few of those that recently on, yes.

K
Karl Bokvist
analyst

All right. And then the recent acquisitions made in Norway. Do you feel quite content that the current sort of density you have now in Norway is enough for you to continue on the sort of trajectory towards the same level of group margins as you have an ambition to reach?

R
Robin Boheman
executive

No, I think we will definitely see continued growth in Rest of Nordics through acquisitions, but we will not sort of say, let the foot off the brake fully for some of the companies that still need to focus on getting their margins back together, so to say. But we're absolutely seeing some really interesting acquisition growth in Norway and Finland for coming year as well.

K
Karl Bokvist
analyst

All right. And then just the final one is on the technical consulting side and intake. How is that rollout progressing? I believe you said a quarter or so ago, you had something like 250, 300 employees. Is a recruitment process continuing and you're building up the organization and how is it developing financially?

R
Robin Boheman
executive

I mean we are still building up the organization. We have taken a little bit of time to consolidate the organization. We have hired, so to say, also some people in head office positions within intake. So our Vice President, for instance, and a few others to bulk up the organization a little bit since the growth was, like I said before, very rapid last year. So the growth isn't continuing at the same rate, but it's still growing the business. We are still looking into new fields and also are hiring some new consultants and also filling up some white spots in Sweden. We've also quite recently started a company in Norway as well. So it's still growing but at a more steady pace than maybe the so say, very high pace that we had in the last year.

K
Karl Bokvist
analyst

All right. Just a quick follow-up on it was is there anything you can say on the level of profitability within Intec now compared to previously? .

R
Robin Boheman
executive

No, not for the whole group. What we can say is that companies that have been for been within, so say, Intec for about 12 months are starting to make profit.

Operator

Our next question comes from the line of Stefan Andersson of SEB.

S
Stefan Andersson
analyst

A couple of questions. Starting off to go to the other Nordic areas Finland and Norway, if you didn't cover on it already, the negative organic growth there, is it all to those problem companies you have your downsizing? Or is there also a weaker Finnish market affecting you? Could you elaborate about a little bit about where is that negative being generated from?

R
Robin Boheman
executive

I mean we're still seeing not fully functioning Finland and -- but we are seeing some growth in the, like I think I mentioned before, the Finnish order book, which is giving us some positive indications that market is a little bit back on track. Then Christina, I don't know if you have the specific organic growth for the different countries, which one is most affected, do you have that in your head?

C
Christina Kassberg
executive

We don't disclose the countries side.

R
Robin Boheman
executive

No?

C
Christina Kassberg
executive

No, the specific countries, we don't do that, no.

R
Robin Boheman
executive

No. But then -- Yes. Sure. Go ahead, Stefan.

S
Stefan Andersson
analyst

I just put it this way. What I was aiming for was really is a market coming down or you doing taking actions to restore margins, that's really what?

R
Robin Boheman
executive

I think it's not the market coming down in a large extent. I think it's also made an issue about quarter-to-quarter discussion. Like I said, it's very hard to follow-up on quarter-on-quarter as well. Market-wise, we are seeing that -- like I said, we are rebuilding our order backlog in Finland. We are growing the order book in Norway as well. So we're quite positive going forward. And I think the rest is just a discussion on quarter-to-quarter.

S
Stefan Andersson
analyst

Okay, good. And then a question on the earn-outs there. I think you had a positive effect of SEK 6 million last quarter and SEK 8 million this quarter, if I'm correct, that could be wrong here now. I know you said you're very happy with all your companies, but is that an effect of some companies doing a little bit worse than you thought?

Or is this the normal pattern that you want to you'd rather be exaggerating then -- rather be higher than lower when it comes to estimating your earnout in your -- when you do the analysis of the acquisition?

R
Robin Boheman
executive

Christina, maybe you can fill in here as well. But I think for us, I mean, we want to make as good of an estimate as possible. But I think we have, what, now 40 or 45 companies that are in earn-out period in that sense?

C
Christina Kassberg
executive

Yes, I can fill in here that the net effect of acquisition-related items this quarter was SEK 4 million. And to compare that, we have a basket here of SEK 300 million to SEK 400 million. So the net effect is very minor to the total basket of revaluation of contingent consideration. So see them beside. So it's small variances here in the total.

S
Stefan Andersson
analyst

Okay. When you say SEK 4 million, you take away the acquisition cost. Okay. It's SEK 8 million of revaluation. Okay, good. Yes, I fully understand. That's fine.

Then a question on something you said in the presentation, just wanted to double check with you. You said that you're not offering any equity any longer. You pay all in cash when you do acquisitions. I know you had the history of wanting your companies to be part owners. So does this mean that you -- the structure now is what you had a few years back when you said, okay, we pay you all cash and then you have to buy stocks in the market for a certain amount? Or -- okay, so that -- how much -- so how does that work? Is that like 30%? Or could you give a range of how much?

R
Robin Boheman
executive

No, it's typically the same 20% or between 15% and 20%.

S
Stefan Andersson
analyst

20%? Yes.

R
Robin Boheman
executive

Yes.

S
Stefan Andersson
analyst

15%, okay. And for how long -- is there a sort of period when they have to buy or when do you?

R
Robin Boheman
executive

It depends a little bit on the size, but we are very certain that it won't affect so to say, the volatility of -- or how to say, the free flow or anything like that. So typically, for a large acquisition, they will have about 6 months long windows, let's say.

S
Stefan Andersson
analyst

Very good. And then on tax borrowing question, but it seemed to be a very low tax rate in the quarter. Is that just something I shouldn't be bothering about I'm thinking about the full year instead? Or is there -- have you -- is there a new tax rate that should be considering for the full year?

C
Christina Kassberg
executive

I don't -- the full -- please focus here on the full year and not the quarterly effect here. And the tax rate is as it has been since about a year ago. So we are on the same level as previous quarters. .

S
Stefan Andersson
analyst

In the quarter, are you -- I mean, you're at 9% tax. That's not really on a normal quarterly level. So -- but what you're saying is that 22% is for the full year. So it was just a -- it's an effect in the quarter that I don't have to look at, is that correct?

C
Christina Kassberg
executive

That's correct.

S
Stefan Andersson
analyst

Yes. Good. And then the last question is -- also a small one. You -- talking about the industry. I was just curious on the customer concentration there. How does that look? I mean, I -- is there -- is there a tendency that those companies you acquire have a higher customer concentration than the version of Instalco? Or is it any difference at all? .

R
Robin Boheman
executive

I mean it's a totally different customer in that sense. So that's diversifying, so to say, the overall portfolio Instalco, then for the specific subsidiaries. Yes, some might be sort of somewhat more dependent on a specific industry. I mean, if you are in a smaller city and in Sweden, for instance, and there is one large industry, then, of course, that is a large customer for you. So for some subsidiaries, that might be the fact. But for the group as a whole, we don't see any risks in having too much.

Operator

[Operator Instructions] And there are no further questions at this time. Please go ahead, speakers.

F
Fredrik Trahn
executive

Yes, Fredrik here. We have just one final question from the webcast, and it's for you, Robin, what are the main reasons for Instalco, how you can perform such a good way with the high inflation rate that we have at the moment?

R
Robin Boheman
executive

I think a lot of the reason was that quite early on in August last year, we took quite a big measure of getting everyone in place and talking a lot about how to handle different types of situations that might come up. In December last year, we had a big workshop together with all our CEOs, for instance.

So we have -- we were quite rapid in understanding that this is going to be an issue for the longer period of time. So I think that has positively impacted our readiness in that sense. And also that we are able to, so to say, carry on the cost over to our customer as well in a successful way.

F
Fredrik Trahn
executive

Thank you. Thank you. There's no further questions from the webcast. So I guess we summarize. And Robin, if you can conclude this call?

R
Robin Boheman
executive

Yes. I think I want to conclude a little bit like we began. I mean, we surpassed the milestone of SEK 10 billion internal for the last 12 months. We have a strong order backlog and solid margin of above 8%. So overall, we're very happy with the Q2 report, and we'll continue to work very hard and utilize the opportunities that we see out there in the market. So thank you all for listening in, and I wish you a great day and speak to you later. Take care.