Terranor Group (TERNOR) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue grew 29% to 1,223.2 MSEK and full-year revenue rose 14% to 3,603 MSEK, surpassing medium-term targets and supporting long-term strategic goals.

• Sweden remains the primary growth engine, delivering strong profitability and benefiting from increased government funding and robust execution.

• Strong order intake of 2,801 MSEK for the year and 399 MSEK in Q4 supports future growth and visibility.

• Proactive management and restructuring are underway in Finland and Denmark to address profitability pressures and legacy contracts.

• IPO completed and shares listed on Nasdaq First North Premier in June 2025.

Financial highlights

• Q4 2025 revenue reached 1,223.2 MSEK (+29% year-over-year); FY 2025 revenue was 3,603 MSEK (+14%).

• Adjusted EBITA for Q4 was 48 MSEK (4% margin); full-year adjusted EBITA was 98.1 MSEK (3% margin), flat year-over-year.

• Operating cash flow was 201 MSEK in Q4 and 214 MSEK for FY 2025; adjusted operating cash flow for the year was 302.8 MSEK (up 102%).

• Order intake totaled 399 MSEK in Q4 and 2,801 MSEK for the year.

• Profit for the year declined to -23.1 MSEK due to non-recurring IPO and restructuring costs.

Outlook and guidance

• Confident in achieving a 5% EBIT margin in Sweden's core business over a 12-month period.

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

• Board proposes a dividend of 1.50 SEK per share for 2025.

• Denmark expected to see improved contract terms and margin improvement in 2026.

• Finland's profitability remains challenged by legacy contracts, with most expiring in 2027–2028; proactive negotiations and restructuring underway.