Terranor Group (TERNOR) Q3 2025 earnings summary

Executive summary

• Q3 2025 delivered strong growth and improved core business profitability, led by Swedish road operations and maintenance, which is the main growth and profitability engine, trending toward long-term targets.

• Sweden accounts for nearly 60% of operations, at all-time highs in growth and profitability, with five new state contracts successfully started.

• Denmark and Finland contributed, with Denmark expected to improve margins as new contracts begin and Finland undergoing restructuring to address profitability.

• Nordic leader in road operations and maintenance, serving mainly governmental and municipal clients with high customer satisfaction.

• Operates in a stable, high-barrier market with long-term contracts and strong revenue visibility.

Financial highlights

• Q3 2025 revenue reached 794.4 MSEK, up 10% year-over-year, driven by new state contracts in Sweden.

• Adjusted EBITA for Q3 was 20.7 MSEK with a 3% margin, impacted by restructuring and IPO-related costs.

• 9M revenue was 2,379.4 MSEK, up 8% year-over-year; 9M adjusted EBITA was 49.8 MSEK, up 14% year-over-year.

• Operating cash flow improved by SEK 17 million year-to-date, excluding IPO one-offs; adjusted operating cash flow for 9M was 93.9 MSEK, up 289% year-over-year.

• Q3 profit was -11.4 MSEK, with earnings per share at -0.57 SEK.

Outlook and guidance

• Confident in meeting or exceeding medium-term growth targets of at least 8% annual revenue growth and 5% adjusted EBITA margin.

• Expecting Q4 to be the strongest quarter for both revenue and profitability, with all-time high revenues anticipated.

• Danish operations expected to improve in 2026 with new state and municipal contracts; Sweden and Denmark are expected to approach the 5% margin target soon, while Finland will take longer due to legacy contracts.

• Swedish government plans to increase O&M funding by 48% from 2026, supporting future growth.