CEO's message

Progress continues despite prolonged lead times

During the second quarter, we continued to make progress on customer projects, strengthen customer relationships and prepare our operations for our upcoming volume production. In parallel, we were impacted by long lead times and delayed investment decisions, which continued to dominate the hydrogen market.

Net sales for the quarter decreased to SEK 1.4 million (2.1) compared with the same quarter in 2025. Our operating loss amounted to SEK –17.3 million (–20.0). It is worth mentioning that we still exhibited a high degree of cost awareness, and that the adaptations made to our operations continued to clearly impact our costs.

Market growth was slower than we and other industry players had previously anticipated. During the first half of the year, we worked on a major transaction involving the sale of a large number of machines. The transaction was in the final stage of negotiations but was temporarily put on hold due to developments in the customer’s project. However, it is important to note that the transaction has not fallen through and that our dialogue with the customer is continuing. The delay was one important reason for the financing measures we implemented during the quarter. We decided to conduct a rights issue of approximately SEK 53.6 million, before issue costs and repayment of bridge loans.

Our collaboration with this particular customer also illustrates the situation that typifies many of our other customer relationships. The projects are moving forward, the customers remain interested and the long-term plans stand firm. However, the timing of commercial decisions and major orders is being affected by factors beyond Cell Impact’s control – from technical challenges on the part of the customer to the fact that the customer’s own products must reach the market or postponed investment decisions.

At the same time, it is important to emphasize that our work in recent years has brought us much closer to commercial deliveries.

Customer and investor confidence

Our customer relationships and financial activities during the period confirmed the confidence shown in Cell Impact, our technology and our future potential. At a time when many players in the hydrogen industry have had to adapt their plans or postpone investments, our customers are continuing to advance their projects together with us. We consider this to be an important testament to the fact that our solutions have a clear role to play in our customers’ long-term plans.

Our ambition remains unchanged: to create the necessary conditions to secure and deliver the major orders we believe lie ahead of us, and to continue strengthening our position as a leading supplier of cost-efficient flow plates and related production solutions.

More projects approaching continuous production

After the end of the quarter, we announced an order for flow plates valued at SEK 5.3 million from a long-standing customer. This order is important to us for several reasons.

Firstly, it provides confirmation to us that our long-term customer relationships are continuing to develop. Secondly, the order concerns a delivery of flow plates to a project that has made significant progress in its commercial development. Thirdly, the order will have a direct positive impact on our cash flow since we already have the materials, processes and capacity in place to complete the deliveries.

“Overall, we currently have a number of customer projects at various stages of development that are bringing us closer to repeat business and higher production volumes.”

This is not an isolated example. We have other customer relationships where our work is nearing regular manufacturing and continuous deliveries of flow plates. In addition, some projects are in earlier phases, and we are continuing to develop these together with customers. Overall, we currently have a number of customer projects at various stages of development that are bringing us closer to repeat business and higher production volumes.

It is this breadth in our project portfolio that enables us to have a positive outlook. Even if individual projects are delayed or change over time, our long-term potential is based on a number of customer relationships in different geographic regions and application areas. This reduces our dependence on the progress of individual projects and improves our opportunities to gradually increase the number of commercial deliveries.

Important progress in Japan

After the end of the quarter, we also had the privilege of welcoming representatives from a Japanese customer for further discussions and verification of our technology. This partnership has been established over a longer period of time, and the customer has carried out comprehensive validation of both products and technical solutions.

The results have been highly positive, and we have met the set requirements. During the course of this work, the customer has conducted a large number of technical evaluations of our technology and our manufacturing capabilities. The outcome has reinforced our opinion that we offer a solution that combines high precision, product quality and cost-effectiveness in a manner that the market appreciates.

Continued focus on next step

Overall, the quarter was characterized by activity in our customer projects, and several advances were made that will strengthen our position for the future. The market is still growing slower than desired, but we can also see concrete signs that more projects are nearing commercial delivery.

We continue to believe in the value of a strategy that combines technological development, cost control and close collaboration with our customers. By gradually building up our expertise, processes and capacity, we have created a platform that is ready to handle increased volumes as customers take the next step in their projects.

We are continuing to move forward, step by step, focusing on customer relationships, cost control and business activities that generate sales, cash flow and long-term value.

Daniel Vallin, CEO
Karlskoga, August 2026