Terranor Group (TERNOR) investor relations material

Executive summary

• Revenue grew 23% year-over-year to SEK 905 million, driven by robust winter activities and new contract wins, especially in Sweden.

• Adjusted EBITA increased 62% to SEK 19.8 million, with margin improving to 2.2% from 1.7% last year.

• Profit for the quarter reached SEK 7.1 million, reversing a loss of 0.2 million in Q1 2025.

• Order backlog hit a record SEK 6.3 billion, providing strong revenue visibility.

• Strategic focus on high-traffic corridors and urban contracts in Sweden increased market share.

Financial highlights

• Q1 revenue reached SEK 904.8 million, up 23% from the comparable quarter, exceeding the medium-term growth target of 8%.

• Adjusted EBITA was SEK 19.8 million, up 62% year-over-year; margin improved to 2.2%.

• Operating profit (EBIT) was SEK 12.1 million, up from SEK 5.1 million.

• Order intake was SEK 1.1 billion, driving backlog to an all-time high of SEK 6.3 billion.

• Cash flow was negative in Q1 due to invoicing timing and seasonal working capital build-up.

Outlook and guidance

• Strong contract base and record order backlog support continued growth and profitability.

• Medium-term EBITDA margin target remains above 5%, with Q1 margin in line with seasonal expectations.

• Growth expected to continue, especially in Sweden, supported by increased government infrastructure spending.

• Denmark and Finland expected to contribute, but at a slower pace; Finland remains a turnaround case.

• Group is resilient to current cost developments due to contractual indexation.