Terranor Group (TERNOR) investor relations material

Executive summary

• Achieved 12% revenue growth in Q2 2025 to 849 MSEK, driven by new contracts in Sweden and Finland, with Sweden as the main growth engine.

• Adjusted EBITA more than doubled year-over-year in Q2, reaching 16.9 MSEK, reflecting improved contract terms and operational efficiency.

• Successfully listed on NASDAQ First North in June 2025, marking a significant milestone and enabling further growth.

• Four major state contracts renewed in Denmark (790 MSEK over four years) and a new municipal contract signed.

• Specialization in road operations and maintenance provides a competitive edge in Sweden, Finland, and Denmark.

Financial highlights

• Q2 revenue: 849.0 MSEK (up 12% year-over-year), driven by successful tendering and new contracts, especially in Sweden.

• Q2 adjusted EBITA: 16.9 MSEK (up 128%), with a 2% margin, up one percentage point from last year.

• Q2 EBITA: -14.6 MSEK (down from 5.4 MSEK), mainly due to IPO-related costs.

• Operating cash flow was negative SEK 30 million in Q2, impacted by IPO-related costs; adjusted operating cash flow for H1 was 92.1 MSEK (up from 31.4 MSEK).

• IPO-related one-off costs accounted for 40% of adjustments, with additional IPO bonuses and internal process one-offs.

Outlook and guidance

• Q3 and Q4 are expected to be even stronger due to seasonality and contract ramp-up.

• Underlying earnings power will become more visible from Q4 as one-off IPO costs subside.

• Market demand for road maintenance expected to remain strong, supported by long-term structural trends.

• IPO-related non-recurring costs expected to impact Q3, with normalization anticipated thereafter.

• Financial targets remain: annual revenue growth of at least 8%, adjusted EBITDA margin above 5%, dividend payout ratio of at least 50% of net profit, and net debt/EBITDA not exceeding 2.5x.