Terranor Group (TERNOR) Q4 2025 earnings summary

Executive summary

• Q4 and full year 2025 saw strong revenue growth, profitability, and cash flow, supporting long-term strategic targets.

• Revenue grew 14% year-over-year to 3,602.6 MSEK, with Q4 revenue up 29% to 1,223.2 MSEK.

• Specialization in road operations and maintenance, with a focus on quality service and client needs, is driving performance.

• Sweden is the main growth engine, benefiting from increased government funding and strong execution in core business.

• The company completed a successful IPO and was listed on Nasdaq First North Premier in June 2025.

Financial highlights

• Full-year revenue: 3,602.6 MSEK (up 14% year-over-year); Q4 revenue: 1,223.2 MSEK (up 29%).

• Adjusted EBITDA for Q4 was SEK 48 million (4% margin); full-year adjusted EBITDA was SEK 98 million (3% margin), down 0.8% from prior year.

• Adjusted EBITA for the year increased 10% to 98.1 MSEK; adjusted EBITA margin: 3% (flat year-over-year).

• Adjusted operating cash flow: 302.8 MSEK (up 102% year-over-year); Q4 operational cash flow: SEK 201 million.

• Operating profit (EBIT) was 15.5 MSEK (down from 65.9 MSEK); profit for the year: -23.1 MSEK.

Outlook and guidance

• Entering 2026 with strong momentum, a solid order backlog, and improved cash flow.

• Confident in achieving a 5% EBIT margin in the Swedish core business over a 12-month period.

• Denmark expected to move into a significantly better margin area for 2026 after contract transitions.

• Finland's profitability remains challenged by legacy contracts, with most expiring in 2027–2028; proactive negotiations underway.

• Board proposes a dividend of 1.50 SEK per share.