Terranor Group (TERNOR) Q3 2025 earnings summary

Executive summary

• Q3 showed strong growth and improved core business profitability, especially in Swedish road operations and maintenance, which is the main growth and profitability engine, trending toward long-term targets.

• Sweden accounts for nearly 60% of operations and is at all-time highs in both growth and profitability, with five new contracts successfully started.

• Denmark and Finland also contribute, with Denmark expected to improve margins as new contracts begin and Finland undergoing restructuring to address profitability.

• Adjusted EBITA for Q3 was 20.7 MSEK, down 28% from last year, reflecting seasonal effects and restructuring costs.

• Significant restructuring in Swedish subsidiary Norvia AB and ongoing stabilization efforts in Finland.

Financial highlights

• Q3 revenue reached 794.4 MSEK, up 10% year-over-year; year-to-date revenue was 2,379.4 MSEK, up 8% year-over-year.

• Q3 adjusted EBITA was 20.7 MSEK (down 28% YoY); 9M adjusted EBITA was 49.8 MSEK (up 14% YoY).

• Adjusted EBITDA for the quarter was SEK 21 million, with a 3% margin, down one percentage point from Q3 2024.

• Operating cash flow improved by SEK 17 million year-to-date, excluding IPO one-offs; adjusted operating cash flow for 9M was 93.9 MSEK (up 289% YoY).

• Q3 profit was -11.4 MSEK, with earnings per share at -0.57 SEK.

Outlook and guidance

• Confident in meeting or exceeding medium-term growth targets of at least 8%.

• Expecting Q4 to be the strongest quarter for both revenue and profitability, with all-time high revenues anticipated.

• Denmark and Sweden are expected to approach the 5% margin target soon, while Finland will take longer due to legacy contracts.

• Order backlog strengthened by new contracts in Sweden and Denmark.

• Danish operations expected to improve in 2026 with new state and municipal contracts.