Railcare Group (RAIL) investor relations material

Executive summary

• Achieved the strongest first-quarter profit ever, with net sales up 24% year-over-year to SEK 152.1 million and EBIT rising to SEK 19.2 million from SEK 4.4 million, driven by a new snow clearance contract, deferred work from 2024, and an early start to works.

• Contracting segment drove growth, while Transport remained stable and Technology improved margins and acquired remote-control technology.

• UK operations are being wound down due to insufficient public funding and declining volumes.

Financial highlights

• Net sales for Q1 2026 reached SEK 152.1 million, up from SEK 123.0 million year-over-year.

• Operating profit (EBIT) was SEK 19.2 million, compared to SEK 4.4 million in the same quarter last year; operating margin improved to 12.6% from 3.6% year-over-year.

• Profit for the period was SEK 10.7 million, up from 4.5 million.

• Cash flow from operating activities was SEK 4.9 million (2.4); total cash flow: SEK -39.4 million (-38.0).

• Equity/assets ratio remained at 29.0% year-over-year.

Outlook and guidance

• Fewer preparatory works expected in Contracting due to Swedish Transport Administration prioritizing major track renewals, but higher track renewals anticipated to increase contracting transport service volumes.

• No material impact from global uncertainty observed so far.

• Company maintains long-term targets: SEK 1,000 million net sales and 13% operating margin by 2027.