High growth with strengthened underlying profitability

"We have combined high growth with strengthened underlying profitability and improved cash flow. Together with strong order intake the fourth quarter concludes a year with improvements and increased activity across the business."

Fourth quarter 2025        

• Revenue growth amounted to 29 percent (8)
• Adjusted EBITA increased to 48.2 MSEK (45.9)
• Adjusted operating cash flow increased to 210.5 MSEK (124.9)
• Revenue increased to 1 223.2 MSEK (947.2)
• EBITA decreased to 39.1 MSEK (39.2)
• Operating profit (EBIT) amounted to 36.6 MSEK (36.6)
• Profit for the quarter decreased to 7.6 MSEK (44.7)
• Earnings per share amounted to 0.38 SEK (2.24)

Full year 2025

• Revenue growth amounted to 14 percent (14)
• Adjusted EBITA increased to 98.1 MSEK (89.5)
• Adjusted operating cash flow increased to 302.8 MSEK (149.9)
• Revenue increased to 3 602.6 MSEK (3 146.9)
• EBITA decreased to 25.7 MSEK (76.5)
• Operating profit (EBIT) decreased to 15.5 MSEK (65.9)
• Profit for the period decreased to -23.1 MSEK (62.1)
• Earnings per share amounted to -1.16 SEK (3.1)
• The Board of Directors proposes a dividend of 1.50 SEK (-) per share

CEO Comment

Strong revenue growth and improved cash generation

Terranor concluded 2025 with a strong fourth quarter, confirming the development seen throughout the year. Revenue for the quarter increased to 1,223 MSEK (947), driven by high activity levels across our operations, primarily in Sweden. Adjusted EBITA amounted to 48.2 MSEK (45.9), and cash generation improved significantly, supported by higher activity. Order intake in the fourth quarter amounted to 399 MSEK, with full-year order intake of 2,801 MSEK (1,680). The strong order intake reflects the competitiveness of our offering and supports continued growth and visibility going forward.

We have combined high growth with strengthened underlying profitability and improved cash flow. Together with strong order intake the fourth quarter concludes a year with improvements and increased activity across the business. In a year when significant attention and resources were dedicated to completing a successful IPO this result reflects the collective effort and ability of our organization.

Strong performance in Sweden confirms our strategy

Sweden continues to be the foundation of Terranor's business and the clearest proof that our strategy delivers as intended. All key operational and financial indicators are developing in the right direction.

Road operations and maintenance business performed strongly during the quarter, supported by high activity in state and municipal contracts and favourable winter conditions that enabled extended work and additional assignments. Excluding underperforming subsidiaries Norvia and Infra, the Swedish operations show very strong profitability, which confirms the strength of our contract portfolio and operational execution. Our focus remains on maintaining this performance over time through disciplined execution. At the same time, we remain cautious in our assessment and continue to focus on sustainable performance over time.

The Swedish operations have demonstrated the ability to absorb higher volumes within existing contracts while also winning new ones, thereby increasing market share. This is driven by competent and professional delivery, as well as higher ambitions among our largest customers, who are investing more to secure higher quality outcomes. The performance in the fourth quarter confirms the trend seen throughout the year.

Proactive and transparent approach with focus on long-term improvement in Finland

In Finland, revenue was broadly in line with the previous year, while profitability remained under pressure. Operations were affected by state contracts with high material-cost ratios and ceiling-price mechanisms, as well as reduced extra works compared to last year. The majority of the pressure relates to state contracts awarded during 2021-2023. These contracts run over five years, and the effects are expected to materialise gradually over the period 2026-2028. With management being more operationally involved in the last quarter we have also taken on a more proactive standpoint towards our clients to clarify our interpretation on how prices should be adjusted according to the mechanisms in the contract.

During the year, we continued to restructure the Finnish operations, with a focus on reducing overhead, strengthening cost control, and improving the contract portfolio over time. While the short-term outlook remains challenging, these measures are aimed at creating the conditions for improved profitability in the longer term.

Execution according to plan in Denmark

In Denmark, 2025 developed according to plan. All five expiring state contracts were closed by year-end, with a strong joint focus on ensuring that all commitments were fulfilled with good quality and within the contractual framework. Activity levels were high, although largely within contracted scope and with limited extra works, which affected margins.

Revenue remained at a good level, and profitability developed in line with the contract conditions. With four new state contracts and additional municipal contracts starting in January 2026, Denmark enters a new phase. Under the new contractual framework, we expect profitability to gradually improve during 2026 as activity increases, while acknowledging that the first quarter is traditionally a period of lower activity.

Focused offering in a stable market

Demand for safe and sustainable roads remains strong across our markets. Terranor's specialization in road operations and maintenance, combined with disciplined execution and high-quality delivery, continues to support a strong competitive position.

With the fourth quarter confirming the trends seen throughout 2025, Terranor enters 2026 with strong momentum in the core business, a solid order backlog, and improved cash flow. The actions taken during the year, both operationally and structurally, support continued development in line with our strategy.

I would like to thank all our employees across Sweden, Finland, and Denmark for their professionalism and commitment. Their collective efforts ensure safe and open roads across the Nordic region and form the foundation of Terranor's continued progress.

CEO Terranor Group
Michael Berglin

Investor presentation

Terranor Group will host a live investor presentation on 17 February at 09:30 CET. CEO Michael Berglin and CFO Inka Kontturi will present the company's Q4 2025 results.

Link for registration: https://qcnl.tv/p/BskvHuvhYl8BWW5LiaH6Fw

For further information, please contact:
Inka Kontturi, CFO and Head of Investor Relations
Email: ir@terranor.se

The information is such that Terranor Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 17 February 2026 at 08.00 (CET).

About Terranor
Terranor is one of the leading players in road maintenance in the Nordic region. The Company's business concept is to offer a wide range of qualified services in road operation and maintenance to ensure that roads remain accessible and functional all year round. The business covers both winter road maintenance, with snow removal and anti-slip protection, and summer maintenance, such as repairs and asphalt work. In addition, Terranor offers services in green area management, road safety and light infrastructure projects. Through operational efficiency, Terranor has achieved a high and profitable growth. Terranor AB's share is traded on Nasdaq First North Growth Market in Stockholm (ticker TERNOR). The Company's Certified Adviser is DNB Carnegie Investment Bank AB.