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A FERRONORDIC Ferronordic Second quarter 2026 August 12 , 2026
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Q2 2026: Increased earnings in all markets 2 SEK 68m Operating result 3.0x Net debt / EBITDA SEK 3.08 EPS • Revenue increased 43% to SEK 1,558m (1,088), up 54% in fixed currency, with growth in all segments • Gross margin of 15.8% (16.3) on higher equipment share of revenue; up in the US • Operating profit improved to SEK 68m (-5), with all three segments profitable • EBITDA nearly doubled to SEK 180m (95) • Net profit improved to SEK 45m (-51), supported by lower finance costs and FX gain • Net debt/EBITDA improved to 3.0x (4.5x), with net debt down SEK 112m in the quarter 43% Revenue increase
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Q2 2026 Increased earnings in all markets • Strong quarter with higher earnings in all markets • Improvements of recent years increasingly visible in results • Driven above all by high US sales, with June a record month • Focus remains on existing operations and their untapped potential, while selective bolt-on acquisitions continue to be evaluated • Revenue up 43% to SEK 1,558m (1,088), 54% in fixed currency • Operating profit SEK 68m (-5), with SG&A down 2% despite higher revenue • EBITDA nearly doubled to SEK 180m (95) • Net profit SEK 45m (-51), supported by FX gain, but carried by the operating improvement • Net debt/EBITDA improved to 3.0x, from 3.8x in Q1 and 4.5x a year earlier, with net debt down SEK 112m in the quarter All segments profitable Revenue up 54% in fixed currency 3 Net debt / EBITDA down to 3.0x
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US Strong demand and strong execution • Strong demand from infrastructure activity and accelerating data center construction across our territory • Sales up 53% in USD, with equipment up 89%, aftermarket up 22% and rental up 15% • Equipment growth driven by articulated haulers and an exceptionally strong June • Gross margin up to 18.2% (17.3) despite higher equipment share of sales • Operating profit more than doubled to SEK 74m (26) • EBITDA up 74% in USD • Aftermarket growth constrained by technician capacity, not demand • Sales vary from quarter to quarter, but the underlying drivers – installed base, aftermarket penetration, rental fleet – continue to build • Platform development continued with a Volvo Penta service agreement, extended Sandvik cooperation, and improved sales management Sales up 53% in USD Aftermarket up 22% Operating margin 7.6% (3.8) 4
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Germany Strong deliveries and higher aftermarket sales • Continued signs of recovery, with registrations in our territory up 7% • Truck deliveries up 52% in EUR, with 267 units delivered vs 100 in Q1 • Each truck delivered expands the population that drives aftermarket demand • Aftermarket sales up 9% in EUR on improved productivity and pricing, with June the strongest month of the year • Gross margin of 10.9% (13.7) on the higher truck share, but gross profit up 17% to SEK 59m (50) • SG&A down 14%, reflecting 2025 cost program • Operating profit of SEK 8m (-13) • Workshops have more to give – technician capacity remains main constraint • Expanding the network with new workshop in central Hesse from January 2027, growing profitable aftermarket business Aftermarket up 9% in EUR Sales up 52% in EUR Operating profit SEK 8m (-13) 5
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Opportunities in mining and road construction Kazakhstan Higher sales and earnings in soft market • Sales up 88% to SEK 49m (26), driven by higher equipment sales • Market remained weak, partly due to delays in government payments on infrastructure projects • Gross margin flat at 23.8% (24.0) • Operating profit of SEK 3m (-1) • Continued opportunities in mining and road construction 6 Operating profit SEK 3m (-1) Sales up 88%
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7 Q2 2026 Income statement • Revenue up 43% to SEK 1,558m o US 62%, Germany 35%, Kazakhstan 3% o Equipment and trucks 62%, aftermarket 31%, rental 7% • Gross margin of 15.8% (16.3) on a higher truck share in Germany; US margin improved • SG&A down 2% to SEK 177m • SG&A as % of revenue down to 11.4% (16.6) • Operating profit up to SEK 68m (-5), a margin of 4.3% (-0.4) • Net profit improved to SEK 45m, supported by lower finance costs and FX gain SEKm Q2 2025 Q2 2026 % change US Germany Kazakhstan Group US Germany Kazakhstan Group Group (USD/SEK, EUR/SEK, SEK/KZT) 10.17 11.09 50.40 9.25 10.79 52.61 New units sold 59 155 6 220 85 267 9 361 64% Revenue 695 366 26 1,088 969 540 49 1,558 43% Gross profit 121 50 6 177 176 59 12 246 39% % Margin 17.3% 13.7% 24.0% 16.3% 18.2% 10.9% 23.8% 15.8% -0.4pp Operating profit1 26 -13 -1 -5 74 8 3 68 1,537% % Margin 3.8% -3.5% -3.6% -0.4% 7.6% 1.4% 6.9% 4.3% 4.8pp Net profit for the period -51 45 188% EPS -3.51 3.08 188% EBITDA1 104 9 0 95 164 29 4 180 90% 1 Group operating profit includes Group costs not allocated to the reporting segments
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Q2 2026 Balance sheet • PP&E increased Y-o-Y, mainly on an expanded US rental fleet, but also currency effects • US working capital down from 19% to 14% of LTM revenue Q-o-Q on inventory sell-down and transfers to the rental fleet • German working capital down from 13% to 10% of LTM revenue, partly on truck deliveries moved from Q1 to Q2 • Kazakh working capital up in SEK on higher inventory and receivables, but down from 74% to 71% as a percentage of LTM revenue • Net debt down SEK 113m Q-o-Q to SEK 1,845m as seasonal inventory was sold and working capital decreased and also due to FX effects • Equity/assets increased Q-o-Q to 31% 8 SEKm Q2 2025 Q1 2026 US Q2 2026 Q2 2026 USD/SEK EUR/SEK SEK/KZT 9.51 11.15 54.94 9.52 10.94 50.73 9.74 9.74 11.09 49.98 Property, plant and equipment 2,254 2,336 1,837 2,461 Cash and cash equivalents 185 117 10 164 Debt 1,811 1,969 1,953 1,911 Finance Leases 53 105 21 98 Net debt / (cash) 1,679 1,957 1,964 1,845 Net debt/EBITDA, LTM 4.5 3.8 3.5 3.0 Working capital 625 849 450 679 % of Revenue 12% 19% 12% 14% Shareholders equity 1,302 1,352 214 1,409 Total Assets 4,183 4,522 3,127 4,605 Equity / Assets 31% 30% 7% 31%
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Group EBIT Y-o-Y 65 EBIT Q4 19 EBIT Q4 20 SEKm 1 9 -5 47 20 4 0 68 -10 0 10 20 30 40 50 60 70 80 EBIT Q2 2025 US Germany Kazakhstan HQ EBIT Q2 2026 1 Totals may not always reconcile as figures in the chart are rounded to SEK m.
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Group EBIT Q-o-Q 65 EBIT Q4 19 EBIT Q4 20 SEKm 1 10 37 27 3 3 -2 68 0 10 20 30 40 50 60 70 80 EBIT Q1 2026 US Germany Kazakhstan HQ EBIT Q2 2026 1 Totals may not always reconcile as figures in the chart are rounded to SEK m.
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Group assets by segment 11 Split by main items and segment as at 30.06.2026 * Including deferred tax assets 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Real estate Rental fleet Other PP&E Goodwill Inventories Trade and other receivables Cash and equivalents Other assets* US Germany Kazakhstan Group
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Group liabilities by segment 12 Split by main items and segment as at 30.06.2026 * Including deferred tax liabilities SEK 1,409m SEK 97/share 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Trade and other payables Bank loans VFS floor plan Lease liabilities Other liabilities* NAV US Germany Kazakhstan Group
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Financial objectives and dividend policy KPI Objective LTM Q2 2026 Revenue Double 2024 revenue in current markets over 5 years1 1.02x Operating margin >6% 3.4% Net debt / EBITDA <3x (over a business cycle) 3.0x Dividend policy At least 50% of net profit shall be distributed if net debt after dividend is below 1.0x EBITDA, and at least 25% if it exceeds 1.0x EBITDA. When proposing dividends, the Board considers several factors, including legal requirements, the articles of association, the Group’s financial position, expansion opportunities and other investment needs. 13 1) 2024 revenue amounted to SEK 4.9b. Current markets are defined as Ferronordic’s existing sales areas in the US, Germany and K azakhstan, including expansion into additional brands and products and expansion into adjacent geographies (for example, the expansion to Iowa in 2026).
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Outlook 14 We remain optimistic about our US operations and the market environment ahead. Infrastructure spending remains at a high level, and the scale of AI- related data center investments across our territory continues to grow, supporting construction activity and equipment demand for years to come. Customer order books remain solid, and machine utilization is high. Quarterly volumes will vary, and Q2 sets a high mark, but the underlying drivers of our business – a larger installed base, an expanding rental fleet, and rising aftermarket penetration – continue to build. In Germany, we expect the gradual recovery to continue as fleet renewal needs accumulate. With a lower cost base, a stronger aftermarket, and an organization able to handle larger volumes, we are well positioned for improved operational leverage as the market normalizes. In Kazakhstan, we expect activity to improve as government spending resumes. We continue to see good opportunities in mining and road construction.
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Thank you