Slides
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To change the background image - Right-click on empty space. Select Format Background / Picture or texture fill / and then select the desired image 1 Q3 2026 Q32026 Interim report October 29, 2026
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2 Presenters CFO Marcus Asplund Tel +46 72 601 37 17 E-mail: marcus.asplund@engcon.com CEO Stig Engström Tel +46 70 326 75 09 E-mail: stig.engstrom@engcon.se Q3 2026
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Still waiting for the upturn • Uncertainty continue to impact the global economy. • Organic order intake fell 10%. Sweden drives sales, France disappoints • Sweden has recovered. Uncertainty still holds back demand in Europe. Agreement with OilQuick and Zero Degree in place • Focus to further deepen our cooperation in DACH region. Profit improved, thanks to the currency • Tighter cost control helped while the lower gross margin impacted negative. The journey towards our financial targets continues 3 Q3 business highlights Q3 2026
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4 Q3 figures in brief 4% −10% 20% 41% Organic order intake Organic net sales EBIT margin Return on capital employed 40% Gross margin Q3 2026
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5 LOWER DEMAND IN THE QUARTER • Order intake decreased 9%, organic −10%, positive currency effect of 6 MSEK. • Net sales increased 5%, organic 4%, positive currency effect of 4 MSEK. • Net sales reached 435 MSEK, compared with 415 MSEK in Q3 2025. Order intake and net sales development per quarter, MSEK Key comments 367 506 524 451 467 539 557 487 424412 393 446 530 415 498 539 594 435 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Order intake Net sales Q3 2026
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167 173180 201 Order intake Net sales Q3 2025 Q3 2026 Q3 2026 6 Nordics Europe Americas Asia-Oceania Q3 – MIXED REGIONAL DEMAND Organic order intake and net sales by region, MSEK Strömsund Odense Vasa Tewkesbury Veenendaal Wertheim Paris North Carolina Montréal Sydney Chungcheongnam-do 206 163165 168 Order intake Net sales Q3 2025 Q3 2026 45 56 36 33 Order intake Net sales Q3 2025 Q3 2026 49 24 37 29 Order intake Net sales Q3 2025 Q3 2026 Oslo Yokohama
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• Collaboration agreement to strengthen engcon’s position in the DACH-region. • Exclusive rights to distribute engcon products. • Accelerate market penetration of tiltrotatorsin Europe’s largest excavator market. • Significant investment by OilQuick in its own assembly and demonstration facilities 7 OILQUICK & ZERO DEGREE Q3 2026
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To change the background color - Right-click on empty space. Select Format Background / Solid fill / and then select the desired color Financial development 8 Se över grävmaskinsmärken! Q3 2026
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9 Overview of costs and EBIT MSEK 2026 Q3 2025 Q3 2026 R12 2025 FY Net sales 435 415 2,065 1,889 COGS -261 -239 -1,257 -1,090 Gross margin 40.0% 42.6% 39.1% 42.3% Selling expenses -64 -65 -274 -272 % of net sales -14.7% -15.7% -13.3% -14.4% Administrative expenses -27 -27 -151 -132 % of net sales -6.2% -6.5% -7.3% -7.0% R&D expenses -13 -13 -65 -55 % of net sales -3.0% -3.1% -3.1% -2.9% Other operating income and expenses 18 -1 24 -19 % of net sales 4.1% -0.2% 1.2% -1.0% EBIT 86 70 345 321 EBIT margin 19.9% 16.9% 16.7% 17.0% Adjusted EBIT 358 Adjusted EBIT margin 17.4% Key comments • Gross margin of 40.0% (42.6), affected by lower utilization in production and 39.1% for R12, still affected by currency headwinds. • Selling expenses lower than previous year, mainly due to timing of events and sponsoring. • Administrative expenses are at the same level as last year in the quarter, R12 burdened by costs related to restructuring costs. • The change in other operating income and expenses is related to positive currency effects. Q3 2026
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10 EBIT Development • EBIT amounts to 86 (70) MSEK and is higher than previous year due to increased net sales and positive currency effects. • EBIT margin increased to 19.9% from 16.9%. EBIT and EBIT margin per quarter Key comments 91 63 84 94 70 72 84 102 86 22.1 16.0 18.8 17.8 16.9 14.5 15.7 17.2 19.9 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 EBIT, MSEK EBIT margin, % +23% Q3 2026
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11 Cash flow Cash flow and net working capital overview, MSEK 144 108 13 20 42 20 62 163 96 2024 Q3 2024 Q4 2025 Q1 2025 Q2 2025 Q3 2025 Q4 2026 Q1 2026 Q2 2026 Q3 MSEK 2026 Q3 2025 Q3 2025 FY Cash flow before changes in working capital 85 70 296 Inventories 474 493 477 Accounts receivables 315 290 257 Other receivables 36 34 33 Accounts payables 118 150 58 Other payables 125 120 43 Net working capital 582 547 666 % of net sales, 12 months 28% 31% 35% Cash flow from operating activities 96 42 95 Investing activities -59 -10 -37 Operating cash flow per quarter, MSEK Key comments • Higher cash flow from operating activities compared to previous year mainly due to a stronger EBIT and changes in net working capital. • Higher investing activities mainly due to acquisition of property in Poland and expanded production capacity in Strömsund. • Unutilized total liquidity of 378 (293) MSEK. Q3 2026
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12 ROCE level Return on capital employed overview Average capital employed and ROCE MSEK 2022 2023 2024 2025 R12 EBT 415 365 295 290 347 Interest expense 8 16 18 38 17 Capital employed, beginning of period 735 765 781 853 850 Capital employed, end of period 765 781 853 969 918 Capital employed, average 750 773 817 911 884 Total assets 1,186 1,012 1,112 1,210 1,368 Non-interest-bearing liabilities 421 231 258 242 450 ROCE 56.4% 49.3% 38.3% 35.9% 41.2% Adjusted ROCE 42.7% 717 750 773 817 911 884 47.8 56.4 49.3 38.3 35.9 41.2 -20 0 20 40 60 80 100 0 100 200 300 400 500 600 700 800 900 1000 2021 2022 2023 2024 2025 R12 Average capital employed, MSEK ROCE, % Q3 2026
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• The journey towards our financial targets continues - Our direction stays the same. • Many uncertainties in the world economy remain. • Focus on what we can control: • Continue to develop the DACH-region • Increase sales by being customers first choice • Invest in personal, production and sales process. • Continued focus on organizational efficiency and Inventory levels. • Concreate measures to reduce fossil use. We will have capacity and skills to change the world of digging. 13 SUMMARY & OUTLOOK Q3 2026
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14 Q&A For more information visit www.engcongroup.com Q3 2026