Terranor Group (TERNOR) investor relations material

Executive summary

• Achieved 23% organic revenue growth in Q2 2026 to 1,041 MSEK, well above the 8% target, driven by new and existing contracts and strong demand, especially in Sweden.

• Adjusted EBITA margin improved to 2.6% from 2.0%, reflecting operational improvements and profitability gains across all segments.

• Record-high order backlog of SEK 7.3 billion provides strong visibility for future growth and supports 2028 targets.

• Positive performance across all segments, with new municipal contracts in Finland and Denmark and a strong recovery in Denmark.

• Principal shareholder Mutares SE & Co. KGaA exited its position in May 2026.

Financial highlights

• Q2 2026 revenue: 1,041.4 MSEK (849.0), up 23% year-over-year; adjusted EBITA up 61% to 27.2 MSEK (16.9), margin 2.6% (2.0%).

• Adjusted operating cash flow Q2: 20.0 MSEK (4.6); cash flow from operations at SEK -23.7 million, slightly better than last year.

• Net debt/LTM adjusted EBITDA: -1.97x, well below the target of <2.5x, supporting financial flexibility.

• Dividend of 30.0 MSEK paid in H1 2026; leverage increased due to new contracts and working capital needs.

• Earnings per share Q2: 0.70 SEK (-0.95); H1: 1.06 SEK (-0.97).

Outlook and guidance

• Confident in reaching SEK 4 billion revenue in 2026 and SEK 5 billion by 2028, with strong order backlog and long-term contracts providing stable revenue streams.

• No signs of demand slowing; expect continued high activity and profitability improvement in H2.

• Market supported by national infrastructure plans, increased funding, and long-term structural drivers such as aging infrastructure and climate adaptation.

• No large investment needs anticipated; business model will continue to rely on subcontractors and avoid significant new debt.