Terranor

Continued strong growth and improved profitability

“The second quarter confirms the positive development we have seen throughout the first half of the year. Revenue increased by 23 percent to 1,041 MSEK (849), while adjusted EBITA increased by 61 percent to 27.2 MSEK (16.9). At the same time, our order backlog increased to a record-high 7.3 billion SEK, providing strong visibility for future activity.”

Second quarter 2026       

• Revenue increased to 1 041.4 MSEK (849.0), an increase of 23 percent (12)
• Adjusted EBITA increased to 27.2 MSEK (16.9), corresponding to an adjusted EBITA margin of 2.6 percent (2.0)
• Adjusted operating cash flow increased to 20.0 MSEK (4.6)
• EBITA increased to 26.5 MSEK (-14.6)
• Operating profit (EBIT) amounted to 24.4 MSEK (-17.2)
• Profit for the quarter increased to 14.1 MSEK (-19.1)
• Earnings per share amounted to 0.70 SEK (-0.95)
• Order backlog increased to 7 293.7 MSEK (5 995.4)

First six months 2026

• Revenue increased to 1 946.2 MSEK (1 585.0), an increase of 23 percent (7)
• Adjusted EBITA increased to 47.1 MSEK (29.1), corresponding to an adjusted EBITA margin of 2.4 percent (1.8)
• Adjusted operating cash flow decreased to -15.3 MSEK (90.8)
• EBITA increased to 41.0 MSEK (-6.9)
• Operating profit (EBIT) amounted to 36.5 MSEK (-12.0)
• Profit for the period increased to 21.2 MSEK (-19.3)
• Earnings per share amounted to 1.06 SEK (-0.97)
• Order backlog increased to 7 293.7 MSEK (5 995.4)

CEO Comment

The second quarter confirms the positive development we have seen throughout the first half of the year. Revenue increased by 23 percent to 1,041 MSEK (849), while adjusted EBITA increased by 61 percent to 27.2 MSEK (16.9). At the same time, our order backlog increased to a record-high 7.3 billion SEK, providing strong visibility for future activity. The growth was driven not only by the ramp-up of new contracts but also by significantly higher activity across our existing contract portfolio. As winter operations transitioned into the summer season, we saw increasing demand for additional works and improvement measures within existing contracts. This confirms our strategy of combining disciplined tendering with operational excellence and close customer collaboration to create long-term profitable growth.

Operational momentum across the business

Demand for road operations and maintenance remains strong across our markets. Long-term structural drivers, including increasing traffic volumes, ageing infrastructure and growing requirements for maintenance and climate adaptation, continue to support the market. We also see increasing activity beyond the traditional state contract tender cycle, with more municipalities outsourcing road maintenance and growing opportunities in adjacent areas and infrastructure improvement projects.

Sweden continues to strengthen its position

Sweden remains the Group's growth engine and delivered another strong quarter with both higher revenue and improved profitability. New contracts awarded during the 2025 tender season continue to develop according to plan, while the summer season started early, supporting activity levels and operational efficiency. At the same time, we continue to see growing demand for additional works within existing contracts, reflecting both our operational capabilities and our customers' confidence in our delivery. Tender activity also remained high outside the ordinary procurement season, resulting in new contracts in both Falun municipality and Borås Stad. We continue to see attractive opportunities within municipal outsourcing and framework agreements, supporting continued growth in the Swedish market.

Continued operational improvements in Finland

Finland continues to operate in a challenging market characterised by restrained investment levels and price competition. We remain disciplined in our bidding while continuing to improve the profitability of older state contracts through operational measures and cost control. At the same time, we see an encouraging development in the municipal market and secured two strategically located contracts in southern Finland during the quarter. The dialogue regarding our claims related to older state contracts remains ongoing. As previously communicated, we continue to take a prudent approach while awaiting a resolution.

Denmark demonstrating the strength of the new contract portfolio

Following the seasonally weaker first quarter, activity increased significantly as the summer season commenced. The four new state contracts and the Tønder municipal contract have developed according to plan, contributing to both higher revenue and improved profitability. We also continue to see attractive opportunities within municipalities and adjacent infrastructure services. Exemplified by large municipal contracts in Ikast-Brande and Copenhagen that were won during the quarter.

Platform for continued growth

The first half of 2026 demonstrates that our strategy continues to deliver. We are growing both through new contracts and through increased activity within existing ones, while at the same time strengthening profitability. A record-high order backlog and continued disciplined tendering provide a strong foundation for the remainder of the year.

I would like to thank all our employees for their commitment and professionalism. Their expertise, dedication and entrepreneurial mindset are what enable Terranor to continue delivering high-quality services to our customers every day. Together with the trust of our customers and shareholders, they form the foundation for Terranor's continued development.

CEO Terranor Group
Michael Berglin

Investor presentation

Terranor Group will host a live investor presentation on 25 August at 09:30 CEST.
CEO Michael Berglin and CFO Inka Kontturi will present the company’s Q2 2026 results.

Link for registration: https://access.dnbcarnegie.com/companies/1599/live

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 and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, on 25 August 2026 at 07.30 (CEST).

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 Group’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.