Slides
Page 1
Presentation 6 February 2026 Q4
Page 2
Agenda • Highlights Q4 • Why profitability was hit in 2025 • Measures to improve profitability • Our strengths • Indication 2026 • Financial performance • Summary
Page 3
Highlights Q4 • Improved order backlog SEK 4.2 billion • Significant orders signed • Strong cash flow MSEK 97 • New long-term financing agreements • Operations in the UK divested • New members in the extended management team
Page 4
Why profitability was hit in 2025 • Identification of overvalued projects ahead of project completion in three companies acquired in 2021–2022 • Lower volumes of approx MSEK 400 than expected due to our focus on profitability in procurements • Lower volumes due to increased competition in the Infraservices division • More projects than expected in start-up phase and the start postponed for a number of projects, especially in Telecom • We did not achieve the savings from the new business system and new organisation in Norway that we anticipated
Page 5
Clear time-bound measures totalling MSEK 40-50 Our measures to increase profitability in summary: • Divestment of UK operations • Restructuring of companies with profitability problems • Consolidation of subsidiaries into larger units • Reduction of levels of management • Improvement of internal processes and follow- up • Cost saving program of MSEK 40-50 in total • MSEK 25 with full effect 2026 • MSEK 15-25 with full effect 2027
Page 6
Market update Infraservices • Strong and active market in both the public and private sectors. • Tougher competition pushes the ability to win projects to the right margins • Delayed project starts and lower volumes from framework agreements have a negative impact on 2025 • The strategy has been successfully implemented by reaching new customers and new geographies, for example, a new customer from the Swedish Transport Administration and our large new fine contract in Ludvika with Lindesbergs Bygg Power • Good demand with strong development in Norway, where the business is growing strongly • Sweden is affected by fewer projects in full production and a focus on new start-ups and tenders • New major framework agreements (e.g. with E.ON and Vattenfall) strengthen the order backlog and expected profitability in 2026. • Strategy successfully executed by reaching new customers and new geographies, e.g., new customer Glitre Nett with new establishment in southern Norway Telecom • Lower than expected volumes in mobile and fiber rollout in 2025. • Project delays and lower activity • Germany is growing and has strengthened its customer portfolio and order backlog. • Norway is implementing a major efficiency program to strengthen profitability. • Strategy successfully implemented by reaching new customers and new geographies, for example, a new customer from the Swedish Transport Administration and a new framework agreement for service to Tele2 in Sweden
Page 7
Our seasonal patterns Quarter 1 Traditionally the weakest quarter in our industry . Projects often take longer due to winter weather . Many others are in the start-up phase, which means more planning and designing but less invoicing. This normally leads to lower sales and margins compared with the rest of the year . Cash flow is often weak or negative at the beginning of the year , since costs are incurred before any major invoicing can take place. Quarter 2 Increasing volumes and transition to production but dependent on weather conditions for start of production. More projects enter the production phase, meaning higher volumes. Sales gradually increase and the margins improve as projects enter the field. Quarter 2 is normally a quarter with stable growth compared to quarter 1. Cash flow follows production phases, and we make use of working capital as production increases, and is still dependent on the project mix. Quarter 3 Stable peak season with high production intensity. Usually one of our most stable quarters. The summer months allow for efficient production, especially in groundwork. The margins improve as volumes increase and projects mature. However , quarter 3 is impacted by vacations, which can impact negatively. Like in quarter 2, cash flow in this quarter varies with production phase and project mix. Quarter 4 The strongest quarter of the year , notably the most profitable quarter with the strongest cash flow. Many projects reach their closing phase, generating large invoices. This pattern repeats annually. Quarter 4 is often the quarter that carries the full- year’s margin, especially for large project deliveries.
Page 8
Financial performance
Page 9
• Net sales -14.4% to MSEK 812 (949) • Good development in Power in Norway with approx. 45% growth in Q4 and 41% 2025 • FX effects -1.8% • Order backlog 4.16 BSEK • Approx. 2 BSEK in backlog referring to 2026 Net sales Order backlog Record high order backlog All numbers in the presentation refer to continuing operations unless otherwise stated 0 100 200 300 400 500 600 700 800 900 1000 Net sales, MSEK 0 500 1000 1500 2000 2500 3000 3500 4000 Order backlog, MSEK
Page 10
-6 -4 -2 0 2 4 6 8 -40 -20 0 20 40 60 80 Adjusted EBITA, MSEK Adjusted EBITA margin, % • Adjusted EBITA MSEK 2 (59) • Adjusted EBITA margin 0.2% (6.3) • EPS -1.38 (-1.19) SEK Adjusted EBITA & margin Profitability impacted by lower volumes and cost improvement measures All numbers in the presentation refer to continuing operations unless otherwise stated
Page 11
• Operating cash flow MSEK 97 (71) • Strong cash flow due to normal seasonality, i.e. completion of projects and final invoicing • Unutilised credit facilities and cash MSEK 342 -100 -50 0 50 100 150 200 Operating cash flow, MSEK Operating cash flow Strong cash generation at the end of the year All numbers in the presentation refer to continuing operations unless otherwise stated Including discontinuing operations
Page 12
• Leverage ratio 7.6 – higher than the capital structure target with EBITDA impact from Q3 write-downs • Financing • New agreements with SEB, Swedish Export Credit Corporation (SEK) and Swedbank regarding long-term financing with liquidity covenant 0 1 2 3 4 5 6 7 8 9 0 100 200 300 400 500 600 700 800 900 1000 Net debt, MSEK Net debt/adjusted EBITDA, % Net debt excluding leasing liabilities New long-term financing agreements with liquidity covenant All numbers in the presentation refer to continuing operations unless otherwise stated
Page 13
Segment performance
Page 14
• Net sales -28.5% to MSEK 170 • EBITA MSEK -3 • EBITA margin -1.5% Q4 12 months MSEK 2025 2024 Δ 2025 2024 Δ Net sales 170 238 -28.5% 673 844 -20.3% - Sweden 170 238 -28.5% 673 844 -20.3% EBITA -3 14 -17 54 EBITA margin -1.5% 5.9% -7.4 -2.7% 6.4% -9.1 Sales & Margin – Q by Q Sales & Margin Infraservices -20 -15 -10 -5 0 5 10 15 0 50 100 150 200 250 300 Net sales, MSEK EBITA margin, % All numbers in the presentation refer to continuing operations unless otherwise stated
Page 15
• Net sales -14.2% to MSEK 272 • Norway grew 45.1% in Q4 and 41.0% in 2025 • EBITA MSEK 1 • EBITA margin 0.4% Q4 12 months MSEK 2025 2024 Δ 2025 2024 Δ Net sales 272 317 -14.2% 989 1,005 -1.6% - Sweden 135 223 -39.5% 492 653 -24.7% - Norway 139 96 45.1% 497 352 41.0% EBITA 1 37 -96.8% -4 76 EBITA margin 0.4% 11.6% -11.1 -0.4% 7.6% -7.9 Sales & Margin – Q by Q Sales & Margin Power -15 -10 -5 0 5 10 15 0 50 100 150 200 250 300 350 Net sales, MSEK EBITA margin, % All numbers in the presentation refer to continuing operations unless otherwise stated
Page 16
• Net sales -6.3% to MSEK 369 • EBITA MSEK -16 • EBITA margin -4.3% Sales & Margin – Q by Q Sales & Margin Telecom Q4 12 months MSEK 2025 2024 Δ 2025 2024 Δ Net sales 369 394 -6.3% 1,321 1,364 -3.2% - Sweden 60 96 -37.6% 240 280 -14.4% - Norway 270 250 -8.0% 894 912 -2.0% - Germany 48 50 -3.9% 187 174 7.7% EBITA -16 4 21 26 -20.5% EBITA margin -4.3% 1.1% -5.4 1.6% 1.9% -0.3 -5 0 5 10 0 50 100 150 200 250 300 350 400 450 Net sales, MSEK EBITA margin, % All numbers in the presentation refer to continuing operations unless otherwise stated
Page 17
We are preparing ourselves for the future
Page 18
Indication 2026 • Strong underlying markets • Strategy to expand geographically and seek new customers • We have done our homework • Growth and margin improvement expected for the full year 2026 given the savings measures in 2025–2026 and the market conditions Netel sees today
Page 19
Q1 2026 24 April 2026