Terranor Group (TERNOR) investor relations material

Executive summary

• Q3 revenue rose 17% to SEK 930.7M; adjusted EBITA increased 53% to SEK 31.7M, lifting margin to 3.4% from 2.6%.

• Nine-month revenue grew 21% to SEK 2,876.9M and adjusted EBITA rose 58% to SEK 78.8M; profit was SEK 40.1M versus a SEK 30.7M loss.

• Order backlog reached SEK 7,195.4M, up 22% YoY; priorities include profitable growth, cash conversion and operational efficiency.

Financial highlights

• Q3 EBIT was SEK 30.1M versus a SEK 9.1M loss; profit was SEK 18.9M versus a SEK 11.4M loss, and EPS was SEK 0.95 versus negative SEK 0.57.

• 9M EBIT was SEK 66.6M versus a SEK 21.1M loss; adjusted EBITA margin improved to 2.7% from 2.1%.

• Adjusted operating cash flow was SEK 29M, up SEK 28M YoY; cash from operating activities was SEK 22.8M versus negative SEK 28.2M.

• Q3 items affecting comparability were SEK 0.4M versus SEK 27.2M; 9M items were SEK 6.4M versus SEK 63.2M, with prior-year costs mainly from IPO and restructuring.

Outlook and guidance

• 2028 targets remain SEK 5bn revenue and 5% EBITA margin; 2026 and 2027 guidance was reaffirmed.

• Medium-term targets include average annual revenue growth of at least 8%, adjusted EBITA margin above 5%, leverage below 2.5x and dividends of at least 50% of consolidated net income.

• Profitability may improve as newer contracts mature and local teams strengthen planning and execution; gains may not be steady quarter to quarter.

• Swedish additional work and funding are expected to accelerate into 2027; tender bids target higher volume at margins supporting 5% over contract life, with four contracts to defend.