Niina Ala-Luopa - 1: Hello, everyone, and welcome to Vaisala's third quarter results webcast. I'm Nina Alaluopa from Vaisala's Investor Relations. Vaisala has today published its January-September Interim Report, and during the next hour, our CEO Kai Östermeier and CFO Heli Lindfors will present our third quarter and full year year-to-date results. And like always, after that, we have time for questions. But now, without further ado, I will hand over to Kai.

Kai Öistämö (CEO): Thank you, Nina. Welcome, everybody. I'll start with the statement that is on the slide. We had an excellent quarter with a record high profitability and orders received. Really was a very good quarter. And let's look a little bit deeper into what made the quarter. So in terms of numbers, kind of what made it excellent, orders received up 38% compared to a year ago, resulting in a significant increase in order book compared to the beginning of the year or end of last year. The net sales grew 6% when we look at the company level. And here you have to remember, especially on the weather, energy and environment side, very high comparable on the third quarter last year where we had the Spanish radar project in a full delivery mode. So the revenues on weather, energy, and environment on third quarter last year were on a very high level. And all this kind of a success in terms of getting sales in and the mix then resulted in very high profitability as well. So almost 25% EBITDA margin in a quarter. I think that's something to be very proud of. So where did it come from? From a business side, Industry Measurements once again performed in an exceptional way, driving the group's results. Ex-Weather continued to go steadily, 9% year-on-year growth, and then Weather, Energy and Environment achieved strong order intake. I think even on a On the performance side, yes, some decline compared to last year because of the very, as I said, very high comparable. But if you kind of take that out, I think we can be quite satisfied on the profitability and the performance on weather, energy, environment. And obviously, the Indonesia deal kind of was a big event in the quarter. During the quarter also, we updated our annual guidance. We updated it in October 12th. And we narrowed our net sales guidance to €610 to €630 million. And then we changed our EBITDA guidance to be now €110 to €120 million. Before going any further, I just want to remind everybody on our strategy. So our mission statement is taking every measure for the planet What we do is instruments and intelligence for climate action. We are situated very, very nicely in between major megatrends in the world. Energy transition, decarbonization on one hand, AI everywhere another one, and resilient societies being third. Resilient societies meaning not only the different kind of geopolitical things, trade wars, even wars, but also resilience to more and more frequent, tougher and tougher extreme weather events due to climate change, or possibly also health challenges in aging populations. Our key strategic drivers remain the same as what they have been: expanding and accelerating industry in industrials, It is lead in weather, weather across from instruments and observations to insights, driving recurring revenue and services business, and then transferring, transforming with AI. And transforming with AI means obviously a lot of things. It's about having AI at the front and center in many of our products and solutions, transforming how we operate kind of with AI and improving improve our ways of working, kind of making us more effective, but also listening to our customers. How does AI change their life and their realities, and how can we be part of that and help them taking benefit of what AI brings to their business? If we look at the progress on the strategy now, in light of what I just said, during the third quarter, I'll pick a couple of events on the quarter itself. First of all, you know, I said growing with industrials, we really had that. I mean, at full force during the third quarter, really a broad-based growth in industrial measurements boosted by the AI-driven investments. It was a very kind of a broad growth across all geographies, all our end market segments. But obviously, one needs to highlight data centers, one needs to highlight semiconductor, one needs to highlight power. And battery manufacturing as well. And not only that, we continue to strengthen our offering across the board. And here, maybe I'll just highlight one specific example of this, which would be the productized offering for services for data centers, which I'm particularly excited about what the opportunities that bring in the coming, coming months and quarters. On the XWeather side, as I said, we continued to progress steadily on the sales side. But not only that, couple of interesting points there, kind of proof points during the quarter, one being the announcement with NVIDIA where we showed together with NVIDIA how much we can with our data improve the leading AI weather forecast and weather model that NVIDIA has developed, how much we can improve the accuracy. And it really kind of point, like, is a clear proof point what a moat we have with our proprietary data and access to data and fusion of the data inside of XWeather. The other example here on the slide would be the Chicago Mercantile Exchange, which has launched now a weather derivatives and options scheme based on XWeather data. And again, proving the position, leading position that we have on kind of interesting, relevant weather data for businesses. And then part of leading weather across observations and insights was also the observation side. So well progressing on weather, energy, and environment. The Indonesia, big Indonesia deal, the 25 million airport weather modernization project gives us a good basis for the coming years. It's a big deal. Which we plan now to deliver over the next 3 years. And it, like I said, gives us a good kind of a basis for planning and executing come next year and the few years to come. Maybe with this, I'll invite Hele to go through the financials.

Heli Lindfors (CFO): Thank you. Good afternoon from my part as well. If we To take a look at the financials a bit, as Kai mentioned, our Q3 was excellent. Record high order intake, solid net sales growth, and very strong profitability. Our orders received increased by 38% year on year, coming from both the industrial measurements as well as weather and environment side. This boosted our order book to €215 million, 16% above the level at the end of the year of 2025. ARR also increased to 60.9 million, 9% up from Q3 '25. Net sales then increased by 6%. The driver was industrial measurements by 28%, and then ex-weather by 9%, and the weather and environment side declined 11% on a strong quarter, as mentioned by Kai earlier. This net sales growth then improved our gross margin as well to 61.5 percentage points. Here we have the €9 million impact on the gross margin— oh, sorry, €4 million impact on the gross margin. Without the US tariff refunds, the gross margin would have been at 59 percentage points. So still a very strong gross margin driven by the industrial measurements growth. And gross margin development. That also boosted the EBITDA to 24.9 percentage points of sale. It would have been 22.5 without the US tariff refunds. If you then look at the return on capital employed, that was 23.3%, driven by the result as well as the strong cash flow. On the industrial measurement side, a quarter ago I said that it was a record quarter and a strong quarter in many fronts, and it was the Same now in Q3. Orders received increased by 24%, coming from a wide base from all regions and all market segments. And that also boosted the order book to €54.5 million. Similar to Q2, we did receive larger data center and power orders that are shaping the order book to be a bit longer, rather being coming from weeks to a few orders than being on months level as well. The net sales increased by 28%, and the Q2 order intake was visible and started to grow. Q2 growth was only 10%, whereas now we saw the 28% growth. And the growth was driven by data centers, semiconductors, battery manufacturing, and power industries. So the base is very wide. The gross margin improved to 65.8 percentage points, coming really from the scaling impact of the net sales as well as the favorable sales mix. This gross margin improvement does not have the tariff refunds. Those are only at group level. The EBITDA then was also record high, above 30%, with 31.7 percentage points, and really coming from the strengthened cross margin. On the EBITDA side, the growth continued steadily at 9 percentage points. It was driven by the insurance industry as well as sales to developers and API customers. The cross margin also improved following the net sales growth, and the similar to the EBITDA percentage also improved to 9.4 percentage points from 6.9 percentages. As mentioned, the acquisition of the Atmo Inc. as announced in Q2 is progressing as planned, and the transaction is expected to close now during Q4. Then on the weather, energy, and environment, the very strong orders received was the highlight of the quarter with the €25 million airport project from Indonesia. Even without that, the orders were growing, which is a positive side on the weather and energy side. And the net sales, they decreased by 11% following the strong comparisons of Q3 2025. The decline came from the project sales. As you can see from the reported figures, both the product sales as well as service sales grew in Q3. The cross margin then improved following the sales mix— more products, less projects— and that also shielded the EBITDA slightly. So the decline— EBITDA declined to 17.3% following the net sales decrease. If you look at the Indonesian order, it's good to note that the 25 million order intake we expect to generate sales in the next 3 years to come. So it is not a one-off sales, but rather during the 3 next years. Then if you look at the cash flow side, our cash flow was very strong following, following the increased net result. Totaries received as well as timing of tax payments. Cash flow from operating activities during January-September amounted to €84.4 million compared to €58.9 million. If we look at the year-to-date development, net sales have grown by 6 percentage points in constant currencies. Now in Q3, the FX impact was already fairly minor, whereas in the beginning of of the year it was higher, and that is also why we still see the impact in the year-to-date figures. Operating expenses have increased by 5% compared to the previous year, and the growth is driven by the investments in industrial measurements as well as Exwetter. The corporate and non-operative items, they were minus 2.2 million compared to minus 7.2 last year. This is from 2 points, the difference and the positive impact from the US tariff refunds that improved our cross margin by €4 million. And in addition, we had some restructuring costs last year in Q3 that also made the cost higher then. The high profitability, EBITDA 18.5 against 15.7 last year, is a strong, strong EBITDA for us. And as said before, it is really coming from the increase in sales. Sales increase in gross profit as well as the tariff refunds. If you look at then the financial income and expenses, it's only one-third of what it was a year ago in the first 9 months. And that is coming from the fact that the FX rates have been less volatile this year, and we have had less loans. Those are the 3 key drivers there on that side. Then we have the heading of this slide, strong financial position. It is actually the same heading we have now had for 26 quarters in a row. So this is already a legacy. We cannot change this anymore. And our net debt also kind of following the strong cash flow. Our net debt is negative by €20 million and As such, we have the kind of strong financial position. If we look at the CapEx, that is lower than last year. Last year we were building the automated logistics center, which boosted the CapEx back then, and this year we don't have the same. If we then look at the market outlook for this year, we expect the development on the industrial measurements and X-wetter to continue. Growing, and then we expect also the meteorology and aviation to continue stable. Of course, here the order intake was strong in the aviation side this quarter, but overall the market is stable in our view. We did change the renewable energy to decline as a market outlook, and there we have seen the difficulties continue this year. And thus we kind of now put it to decline. This ends— actually, there is still business outlook, of course. As already mentioned by Kai, we updated our business outlook on October 12th. Now it's 610 to 630 million in sales and operating result to be 110 to 120 million in EBITDA margin. But this now concludes the prepared remarks, and I will ask Kai to join us for the questions. And I think the lines are now open.

D: Yes. If you wish to ask a question, please dial *5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial *5 again on your telephone keypad. The next question comes from Nikko Ruokangas from SEB. Please go ahead.

Nikko Ruokangas (SEB): Hello, it's Nikko Ruokangas from SEB. Thank you for the presentation. I have a couple of questions and I'd like to start with Industrial Measurements. And the gross margin was strong there, but we also Vaisala saw quite high increase in fixed costs year on year. So should we first extrapolate those fixed cost increases going forward? And then on the other hand, the gross margin you also used in the Report were exceptional when talking about Industrial Measurement profitability. So does that mean that there was something one-off type in gross margin, or did you mean just that it was very strong?

Heli Lindfors (CFO): I believe that we meant that it was very strong, but of course, it's good to note the seasonality we have in our gross margin. So Q3 is always the strongest— well, not always, but usually the strongest of the quarters. So as such, that also explains part of the gross margin. And on the cost side, you asked, part of the costs are growth-driven. So we do have to make investments also to kind of support the growth there. So as such, those are investments we do.

Nikko Ruokangas (SEB): All right. So we should expect also costs continue growing. All right. Thank you. Then on, on tariff refunds, a bit more technical question. Are all the tariff refunds you expect to receive already in your Q3 numbers, or should we expect also more in Q4 or later?

Heli Lindfors (CFO): Most of the tariff refunds we expect to get have now been received.

Nikko Ruokangas (SEB): Okay, thank you. Then one last from me at this point on, on industrial measurements order book structure. So as you mentioned that there are a couple of orders that have a bit longer delivery time than you have used to have in industrial measurements. So do you think that this kind of structure where you have a couple of these kind of orders will remain, or do you kind of see going forward with data centers and related industries growing that the order book structure will continue to be longer going forward or even longer than this one?

Kai Öistämö (CEO): I think there's kind of 3 things that will have an impact on the shape of some of the order books. There's still kind of a strong element of sales, which is within the month and so on. So that has not changed. But the things that you mentioned, Bigger projects, data centers would be a good example of that. Bigger share of the bigger projects really has been so far typically on life sciences, now more and more on data centers. Power has a bit of a similar kind of a thing that it may be when, especially when it's a larger deal and multiple transformers in question, may have a little bit of a similar kind of an impact. And thirdly, I would like to highlight also bigger services deals that then of course have a different kind of a shape in terms of delivery. Might not be even months, it may be a year or in some cases even longer.

Heli Lindfors (CFO): In the release, we actually comment on how much of the order book we will deliver still this year. And in the industrial measurement side, it was 69% of the order book was still to be delivered within this year.

Nikko Ruokangas (SEB): Yes, I understand. Thank you. This helps. That's all from me at this point.

D: The next question comes from Matti Raikkonen from DNB Carnegie. Please go ahead.

Matti Riikonen (DNB Carnegie): Hi, it's Matti Raikkonen here. A couple of questions. First of all, the tariff refund question was already asked. So you said that you are basically— you collected all the refunds in the Q3 number. Is that correct, the 4 million? Or did you get already something in Q1, Q2 time, which was not kind of separately reported as a one-off?

Heli Lindfors (CFO): In Q3, we received all that was related to 2025. Earlier, we have received some that were related to this year.

Matti Riikonen (DNB Carnegie): Okay, good. Then going forward, as the tariffs have now been lowered and you are getting some extra benefit compared to previous year when you had the tariff increase, what happens to that extra money? Are you returning now it to your customers, or are they demanding that to be returned, or is it something that you can keep for yourself?

Kai Öistämö (CEO): We We certainly plan to keep it to ourselves.

Matti Riikonen (DNB Carnegie): All right. In that case, what is the kind of gross margin increase coming from the money that, or the tariff that you keep to yourself compared to what was paid? So I'm just thinking that what is the gross margin increase due to the tariff change for the positive?

Heli Lindfors (CFO): I would actually say that, you know, as we reported the tariff refunds related to last year, we have reported them in Group items, so they are not visible in the business figures. So the business figures, that includes the kind of our current pricing and the correct tariff level and all the such items. So I would actually use that as the figure as it is.

Matti Riikonen (DNB Carnegie): Okay, so you're not willing to discuss that how much of kind of extra boost to your gross margin which is now reported in IM, for instance, is coming from the kind of lower tariff which was forced by the US courts to be lowered?

Heli Lindfors (CFO): No, we haven't commented.

Kai Öistämö (CEO): No, no.

Matti Riikonen (DNB Carnegie): Okay. Then I'll stick to the gross margin question because, of course, your IM gross margin seems to be quite nice at the moment. I was just wondering that are there big differences between different customer segments when it comes to gross margins? And could you give us some light what kind of variations within the IM gross margin you have depending on customer groups? I'm not asking you to specify any particular groups, but just that how many percentage points could there be variation between customer groups?

Kai Öistämö (CEO): There is some variation on some cases, obviously. If I take kind of a silly, maybe a silly example like services, has obviously a different cross-margin structure than typically the probes. But if I take one group like probes, whether we sell them to life sciences or data center or or some other kind of environments, there's not really a difference in terms of if I look at the customer groups per se, that it's quite similar. Of course, different products have different gross margins that may vary as well between the products, but not the customer segments per se.

Matti Riikonen (DNB Carnegie): Okay. Okay. And then finally, you released an interesting piece of news related to the NVIDIA Corporation. And I was just wondering, is this new net revenue for you coming from this cooperation agreement, or is it kind of embedded in something that you already have done?

Kai Öistämö (CEO): It's not really a net revenue, you know, anything that we can speak of. It's more like a showcase of capability and part of a kind of other collaborations that we have with them.

Matti Riikonen (DNB Carnegie): Okay. And what type of cooperation is this? Is it a revenue share deal or is it something that you just sell the data? Both for new and historical data and get the fixed fee, but you don't participate in the business model that NVIDIA seems to be—

Kai Öistämö (CEO): to my understanding, NVIDIA does not at the moment sell weather forecasts or anything like that. So there's no, not really revenue to be shared at this stage. I think from both sides, this kind of a capability, like shows the capability and the potential that can be done in the future. What then kind of actual business then becomes in the future, the future will tell.

Matti Riikonen (DNB Carnegie): Okay, so there is no service yet to be sold? No, it is just the testing of capabilities?

Kai Öistämö (CEO): Correct.

Matti Riikonen (DNB Carnegie): Okay, okay. Because I was thinking that, isn't this the type of activity that Vaisala and Wexwether should be doing on its own? Basically combining the best AI in the market. We certainly— that should be coming from you, and then combining some hardware that you just, or technology that you just buy, and then of course you would be the sole provider of the service.

Kai Öistämö (CEO): Well, that's certainly our strategy. Certainly our strategy. Now, there may be other opportunities, and we jointly thought that as part of our collaboration, that this is a great showcase on the power of the data that we actually own.

Matti Riikonen (DNB Carnegie): All right, excellent. Thank you. I have nothing further.

D: The next question comes from Pauli Lohi from Inders. Please go ahead.

Nikko Ruokangas (SEB): Hello, it's Pauli Lohi from Inders. First, I would like to ask about the outlook for the data center customer segment. Certain market intelligence providers such as Bloomberg New Energy Finance has projected that the relative growth of data center capacity commissions will peak in '27.

Pauli Lohi (Inderes): So would you expect also your data center-related growth to peak soon, given that you often deliver some 12 months before the commissioning?

Kai Öistämö (CEO): It's way too early to comment on this. You know, we've seen those forecasts and we've seen other forecasts and I think at the moment, the important thing is that we see it as a growing market for the rest of the year. And then we don't expect it to be peaking anytime, like in the coming months. How exactly will it develop and how will that then translate to our demand? Time will tell. But I think even speculating on this at this stage, we We would not like to go there.

Pauli Lohi (Inderes): Okay. Do you have any limitations in your production capacity or supply chain to serve industrial measurement customers if the growth stays at a strong level or even accelerates?

Kai Öistämö (CEO): Oh, we don't.

Pauli Lohi (Inderes): All right. Then I would like to continue

Nikko Ruokangas (SEB): about this question related to the AI and weather forecasting. And you mentioned in the Report that developer customers and API customers contributed to the growth. And I'm just thinking that if, like, the share of this kind of API data increases about Xpetra's revenue, Does that affect your business or profitability?

Pauli Lohi (Inderes): I mean, these customers probably don't need any tailored software services. They are using just raw data. So is that good business for you compared to the EBITDA in general?

Kai Öistämö (CEO): Yeah, first of all, I think it is a good business. And second thing is that what you should add to your list is that it's clearly an onboarding ramp for new customers for us, that it's a way to engage at a low no friction with our data and our capabilities through the APIs, try out and see what can be done. And we obviously see how much usage and which organizations and everything else. So this is clearly for us, we see that actually an on-ramp into kind of a deeper engagement where we can onboard the customers in a much deeper way than merely in terms of API usage. And there's obviously new innovation happening in the world. So it's a great way of seeing kind of what are the new potential new customer groupings and new potential usages of the data that we have.

Nikko Ruokangas (SEB): All right. Then lastly, about that renewable energy, your outlook for that is negative. So could you open a bit why is that so, even if there's strong demand, of course, for the power generation?

Kai Öistämö (CEO): Still, if you look at the new wind parks, it's a relatively low activity at the moment in building. You have to remember where our exposure, first of all, in the renewable energy is. It is in the very early phases when there is the business cases for new sites, new projects is being done. The wind resources on that site is verified with the bankable data so that you can actually then have it as a part of your investment case and have it kind of even raise money against it. And that activity is still on a quite low level across the world. And, you know, like you said, on usage of power, kind of wind park obviously continues to be, and kind of maybe some early signs on already developed sites further developing, but that has very limited impact to our kind of our offering and our participation on the marketplace.

Nikko Ruokangas (SEB): Thank you. That was all from me.

D: As a reminder, if you wish to ask a question, please dial star 5 on your telephone keypad. The next question comes from Walter Rossi from Danske. Please go ahead.

Kai Öistämö (CEO): Hello? Yoel, go ahead.

Nikko Ruokangas (SEB): Okay, great. Problems with the line. So first of all, thanks for the presentation. First question relates to AI and kind of the NVIDIA deal. So what's your current view on how AI will actually transform the weather forecasting model market? Does the market actually even exist in the future, or will it be all about network and data that the model is built on top of?

Kai Öistämö (CEO): There will be— so first of all, it's a kind of a fundamental change from what the weather forecasting is today. And just give you an idea that what you see the weather forecast, you look at the weather forecast and how often it is updated today. Every 6 hours, sometimes if you're really, really good, every 3 hours, where I believe that actually weather is going to be a streaming service in the future. So completely different type of a model, how to consume and build and the capabilities with AI and AI-based weather forecasting model. Will change all the participants and their roles and so on in the world. There will be most likely multiple different AI models operated by different parties, some joint and some different. And then there will be, like today in numerical weather forecasting, a fusion of all of this. And that's one of the avenues that we certainly see as one avenue that we are going to be pursuing. It's not only competing who has the best foundational model. Maybe there's some of that, but I think much more that how do you combine different capabilities in a smart way? How do you combine it with the data, especially the proprietary data that you have, and how do you fusion it with other data, creating even more proprietary data to support your model and your delivery of the forecast? Answer your question. EBITDA margin.

Nikko Ruokangas (SEB): Sorry. Yes, yes, it did. Thank you. Then on industrial measurements, order intake was again on a nice level, but it actually declined from Q2.

Pauli Lohi (Inderes): So would you say that the underlying demand is still accelerating or not? And what should we extrapolate going into 2027?

Heli Lindfors (CFO): Well, 2027 guidance we will give in February, so a little bit early for that. But as such, we see that, you know, there are different kinds of orders. And in Q2, we had for the first time these kind of larger data center orders. And now we had some here as well. But it does mean that, you know, between the quarters, it can easily be that there is more or less of them.

Kai Öistämö (CEO): Yeah, and even individual orders can go either side of the border. Like when the order sizes get bigger, they start to have some impact, not overstating that, but some impact between the quarters. So I would not draw any kind of a trend lines based on the two quarters at the moment. And just reminding you on the market outlook that Hele just said before we opened up for questions, that we said we expect expect the market itself to grow.

Nikko Ruokangas (SEB): All right, fair enough. Thank you. Then could you also remind us how much of the demand in the data centers is coming from— it's mostly new, coming from new construction. Am I correct, or is there already some recurring kind of revenues?

Kai Öistämö (CEO): Most of it comes from greenfields, but as you know, data centers operate very differently by different operators. Some may have the same compute, which then leads that the same kind of cooling systems may be there even up to 7, 8, 9, 10 years. In some cases, especially on the leading side, they get redone completely in, say, 3 years. So cycles are very different. And if you do the inside, like the compute, completely, completely new, then there's at least consideration on how the cooling system is going to be done. And that may give us an opportunity in what you call as a recurring revenue, if you allow that term to be used.

Pauli Lohi (Inderes): All right. And one more on data centers. How concentrated is your sales in that segment among large customers?

Heli Lindfors (CFO): We don't have any customers that would be a kind of material part of our sales. So there are multiple also in the data center segment that we sell to.

Kai Öistämö (CEO): Yeah, it's not like in some other industries that we would have only one or two of them, kind of hyperscalers. It's much broader than that now, our exposure.

Nikko Ruokangas (SEB): Okay. Thank you.

Pauli Lohi (Inderes): And maybe last one related to the weather segment. So you said that renewable energy orders declined strongly and you kind of downgraded the outlook there. So any ballpark figure on how much renewables is of the segment sales today? I think it used to be EBIT like 25%?

Heli Lindfors (CFO): It is still roughly the same levels that it has been. Of course, kind of the more order intake we would get on the kind of aviation and other sites, that may change in the next years to come.

Kai Öistämö (CEO): All right, I have to— when you do the math, you have to remember that like in meteorology, as we've now multiple times commented, the comparison period, the third quarter last year, we had a very, very strong third quarter, especially on the meteorology side where we had the Spanish radar sales. So, you know, that's part of it.

Heli Lindfors (CFO): EBITDA margin, you need to look at the kind of on a longer period of time rather than a quarter.

Kai Öistämö (CEO): Correct. Correct. Thank you.

D: There are no more questions at this time, so I hand the conference back to the speakers for any closing comments.

Niina Ala-Luopa - 1: Thank you for the questions, and thank you, Heli and Kai, for the presentations. And thank you all for joining this webcast today. We have also published our next year's financial reporting calendar. So you will find our next year's dates on our website now as well. And our financial statement release for 2026 will be published on February 11th. So see you then. But now, thank you all for joining and have a great week. The host has ended this call. Goodbye.