Slides
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Q42025 Interim report February 17, 2026
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Presenters CEO Krister Blomgren Tel +46 70 529 92 65 E-mail: krister.blomgren@engcon.com CFO Marcus Asplund Tel +46 72 601 37 17 E-mail: marcus.asplund@engcon.com 2 Q4 2025
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3 2025 IN REVIEW 49% 3rd Generation Partnerships Extended market presence Italy Large Cap ”Liberation day” Entrepreneur of The Year Global market share Ongoing lawsuit engcon Japan Q4 2025 Bauma
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• Strong finish to the year with an organic net sales increase of 34%, corresponding to 498 (393) MSEK. o Solid net sales recovery from Europe and the Nordics. • Order intake increased organically by 12% to 539 (506) MSEK, with strong demand in the Nordics. o Increase is mainly driven by Sweden, • Margins pressured by less favorable market mix, currency effects, and increased administrative costs related to IT and legal services. 4 Q4 business highlights Q4 2025
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5 Q4 figures in brief 34% 12% 15% 36% Organic order intake Organic net sales EBIT margin Return on capital employed 40% Gross margin Q4 2025
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6 HIGH ORDER INTAKE AND SOLID NET SALES GROWTH • Order intake increased 7%, organic 12%, negative currency effect of 30 MSEK. • Net sales increased 27%, organic 34%, negative currency effect of 26 MSEK. • Strong order intake despite weak demand in Americas and Asia/Oceania. Order intake and net sales development per quarter, MSEK Key comments 414 410 433 367 506 524 451 467 539 308 394 450 412 393 446 530 415 498 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Order intake Net sales Q4 2025
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7 642 717 741 781 842 620 652 700 732 775 0 200 400 600 800 1000 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 R12 Order intake Net sales Nordics Q4 2025, Order intake and net sales, MSEK Key comments • Order intake increased organic 35%. • Net sales increased organic 37%. • Clear pre-order pattern ahead of the spring digging season. • Strong demand driven by increased excavator sales and gradually growing optimism. Strömsund Odense Vasa 192 231 191 167 253 132 190 236 173 175 0 50 100 150 200 250 300 Q4-24 Q1-25 Q2-25 Q3-25 Q4-24 Per quarter Order intake Net sales Oslo Q4 2025
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8 720 755 767 797 803 690 716 736 714 771 600 650 700 750 800 850 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25R12 Order intake Net sales Europe Q4 2025, Order intake and net sales, MSEK Key comments • Order intake increased organic 9%. • Net sales increased organic 39%. • Record-high fourth quarter for both order intake and net sales. • Net sales back at high levels after backlog from the third quarter. 204 202 185 206 210 172 182 197 163 229 0 50 100 150 200 250 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Per quarter Order intake Net salesTewkesbury Veenendaal Wertheim Paris Q4 2025
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9 216 226 204 209 192 212 207 208 204 202 170 180 190 200 210 220 230 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 R12 Order intake Net sales Americas Q4 2025, Order intake and net sales, MSEK Key comments • Order intake decreased organic 13%. • Net sales increased organic 7%. • Increased net sales driven by price adjustments to offset tariffs. • Customers remain cautious due to ongoing uncertainties surrounding tariffs and general market conditions. 67 56 40 45 5153 37 59 56 50 0 20 40 60 80 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Per quarter Order intake Net sales Montréal North Carolina Q4 2025
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10 Asia-Oceania Q4 2025, Order intake and net sales, MSEK Key comments • Order intake decreased organic 32%. • Net sales increased organic 33%. • The region is characterized by large fluctuations in sales between quarters. • Japan is expected to be the key growth driver, supported by government incentives. Sydney Chungcheongnam-do 43 35 34 49 25 35 37 38 24 44 0 10 20 30 40 50 60 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Per quarter Order intake Net sales 138 132 136 161 143 126 126 137 134 143 0 50 100 150 200 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 R12 Order intake Net sales Q4 2025 Yokohama
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Financial development 11 Se över grävmaskinsmärken! Q4 2025
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12 EBIT Development • EBIT increased 15% to 72 (63) MSEK, mainly due to higher revenues. • EBIT margin decreased to 14.5% from 16.0%. EBIT and EBIT margin per quarter Key comments 19 60 82 91 63 84 94 70 72 6.2 15.2 18.2 22.1 16.0 18.8 17.8 16.9 14.5 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 EBIT, MSEK EBIT margin, % Q4 2025 +15%
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13 Overview of costs and EBIT MSEK 2025 Q4 2024 Q4 2025 FY 2024 FY Net sales 498 393 1,889 1,649 COGS -297 -225 -1,090 -923 Gross margin 40.2% 42.7% 42.3% 44.0% Selling expenses -69 -59 -272 -262 % of net sales -13.9% -15.0% -14.4% -15.9% Administrative expenses -37 -32 -132 -121 % of net sales -7.4% -8.1% -7.0% -7.3% R&D expenses -16 -13 -55 -47 % of net sales -3.2% -3.3% -2.9% -2.9% Other operating income and expenses -6 0 -19 0 % of net sales -1.2% 0.0% -1.0% 0.0% EBIT 72 63 321 295 EBIT margin 14.5% 16.0% 17.0% 17.9% Key comments • Gross margin of 40.2% (42.7) and 42.3% FY25. • Selling and administrative expenses are lower compared to net sales however burdened by costs mainly related to IT and legal services. • Negative currency effects and less favorable market mix are holding back the margins. • EBIT margin of 14.5% (16.0) and 17.0% FY25. Q4 2025
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14 Cash flow Cash flow and net working capital overview, MSEK 96 -44 32 144 108 13 20 42 20 2023 Q4 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 2025 Q4 MSEK 2025 Q4 2024 Q4 2025 FY 2024 FY Cash flow before changes in working capital 87 100 296 277 Inventories 477 339 447 339 Accounts receivables 257 227 257 227 Other receivables 22 20 22 20 Accounts payables 58 83 58 83 Other payables 43 37 43 37 Net working capital 655 466 655 466 % of net sales, 12 months 35% 28% 35% 28% Cash flow from operating activities 20 108 95 239 Investing activities -9 -14 -37 -44 Operating cash flow per quarter, MSEK Key comments • Lower cash flow from operating activities compared to last year mainly due to increased working capital. • Unutilized total liquidity of 211 (446) MSEK. Q4 2025
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15 ROCE level Return on capital employed overview Average capital employed and ROCE MSEK 2021 2022 2023 2024 2025 EBT 341 415 365 295 290 Interest expense 2 8 16 18 38 Capital employed, beginning of period 699 735 765 781 853 Capital employed, end of period 735 765 781 853 969 Capital employed, average 717 750 773 817 911 Total assets 1,013 1,186 1,012 1,112 1,210 Non-interest-bearing liabilities 278 421 231 258 242 ROCE 47.8% 56.4% 49.3% 38.3% 35.9% 717 750 773 817 911 47.8 56.4 49.3 38.3 35.9 -20 0 20 40 60 80 100 0 100 200 300 400 500 600 700 800 900 1000 2021 2022 2023 2024 2025 Average capital employed, MSEK ROCE, % Q4 2025
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16 18% Net sales organic growth FINANCIAL TARGETS FY 2025 36% Return on capital employed 59% Equity-to-asset ratio Growth Profitability Capital efficiency Capital structure Exceed the growth in existing market through organic growth. Have an EBIT margin in excess of 20%, measured over a business cycle. Continue to achieve an industry-leading capital efficiency. ROCE to exceed 40%, measured over a business cycle. Maintain a strong capital structure supporting further expansive organic growth and dividends to share- holders. Equity-to-asset ratio to be above 35 %. 17% EBIT margin Dividend policy 1.00 SEK/share Pay approximately 50% of net profit in dividends. Dividend proposal will consider engcon’s long-term potential, financial position and investment needs. Q4 2025
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• Key regions Europe and the Nordics are driving strong net sales growth. • Positive indications that demand will continue to increase in the key regions going forward. • Stronger revenue growth partly offset by weaker margins and a higher administration cost. o Reviewing pricing, product packaging and strategic priorities for improved profitability. • Conexpo in March – North America’s largest construction equipment trade show. 17 SUMMARY & OUTLOOK Q4 2025
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Q&A For more information visit www.engcongroup.com