Terranor Group (TERNOR) Q1 2026 earnings summary

Executive summary

• Revenue grew 23% year-over-year in Q1 to SEK 905 million, driven by robust winter activities and successful new contract wins, especially in Sweden.

• Achieved record-high order backlog of SEK 6.3 billion, up from SEK 5.3 billion year-over-year, reflecting strong tender wins in Sweden and Finland.

• Adjusted EBITA/EBITDA increased 62% to SEK 19.8 million, with margin improving to 2.2% from 1.7% last year.

• Profit for the quarter reached SEK 7.1 million, reversing a loss in Q1 2025.

• Operational model demonstrated resilience and profitability despite seasonal challenges.

Financial highlights

• Q1 revenue: SEK 905 million (up 23% from SEK 736 million in Q1 2025), exceeding the medium-term growth target.

• Adjusted EBITA/EBITDA: SEK 19.8–20 million (up from SEK 12 million), margin at 2.2%.

• Order intake reached SEK 1.1 billion, driving backlog to an all-time high of SEK 6.3 billion.

• Operating cash flow was negative in Q1 due to invoicing timing and high winter activity.

• Items affecting comparability totaled SEK 5.3 million, mainly legal fees in Finland.

Outlook and guidance

• On track to meet medium-term targets: annual revenue growth >8%, adjusted EBITA margin >5%, leverage <2.5x, and dividend payout ≥50% of net income.

• Growth expected to continue, especially in Sweden, supported by increased government infrastructure spending and a strong contract base.

• Denmark and Finland expected to contribute, but at a slower pace; Finland remains a turnaround case.

• Group is resilient to cost developments due to contractual indexation.