Terranor Group (TERNOR) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue grew 29% year-over-year to 1,223.2 MSEK, with full-year revenue up 14% to 3,603 MSEK, surpassing medium-term targets and driven by Sweden's strong performance.

• Adjusted EBITA for Q4 was 48 MSEK (4% margin); full-year adjusted EBITA was 98 MSEK (3% margin), but reported profit declined due to non-recurring IPO and restructuring costs.

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

• Improved cash generation and robust operational cash flow highlight operational strength, with Q4 cash flow at 201 MSEK and full-year at 214 MSEK.

• Proactive restructuring and management transitions are underway in Finland, Denmark, and underperforming subsidiaries.

Financial highlights

• Q4 2025 revenue: 1,223.2 MSEK (+29%); FY 2025 revenue: 3,603 MSEK (+14%).

• Adjusted EBITA for Q4: 48 MSEK (4% margin); FY 2025: 98 MSEK (3% margin, flat year-over-year).

• Operating cash flow: 201 MSEK in Q4; 214 MSEK for FY 2025.

• Order intake: 399 MSEK in Q4; 2,801 MSEK for the year.

• Earnings per share: -1.16 SEK; profit for the year: -23.1 MSEK, impacted by one-off costs.

Outlook and guidance

• Entering 2026 with strong momentum, solid order backlog, and improved cash flow.

• 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.

• Margin improvement expected in Denmark as new state contracts commence in 2026.

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