Railcare Group (RAIL) investor relations material

Executive summary

• Net sales for Q2 2026 increased by 7.9% year-over-year to SEK 192.3 million, with operating profit (EBIT) up 14.5% to SEK 20.7 million and an improved operating margin of 10.8%.

• Strong performance in Transport operations, driven by high contracting transport volumes and successful execution of fixed assignments.

• New framework agreements were signed with Martin Bencher (Scandinavia) AB, the Swedish Transport Administration, and Maersk for specialized rail transport services.

• An employee incentive program (LTIP 2026) was introduced and fully subscribed, aligning staff interests with long-term company performance.

Financial highlights

• Net sales for Q2 2026 reached SEK 192.3 million (up from SEK 178.1 million), with EBIT at SEK 20.7 million (up from SEK 18.1 million), and operating margin at 10.8% (up from 10.2%).

• First half 2026 net sales rose 14.4% year-over-year to SEK 344.4 million, with EBIT up 77.6% to SEK 40.0 million and EPS at SEK 0.94 (0.52).

• Profit for Q2 2026 was SEK 12.0 million (up from SEK 8.0 million), and for the first half, SEK 22.7 million (up from SEK 12.5 million).

• Cash flow from operating activities for Q2 was SEK 47.9 million, with total cash flow for the quarter at SEK -5.3 million.

• Equity/assets ratio improved to 29.4% from 26.1% year-over-year.

Outlook and guidance

• High resource utilization in Transport expected to continue due to ongoing track renewal projects.

• Fewer preparatory works are expected in Contracting due to resource prioritization for major track renewals by the Swedish Transport Administration.

• Contracting volumes for the full year 2026 are expected to be lower than 2025, with some preparatory works postponed to next year.

• New three-year framework agreement with the Swedish Transport Administration effective from next year, adapted to upgraded electric and battery-powered fleet.

• Targets for 2027 include SEK 1,000 million in net sales and a 13% operating margin.