Interim report
Page 1
Interim Report January – June 2026 Terranor Group
Page 2
Terranor Group Interim Report January – June 2026| 2 Key figures Q2 1 EBITA adjusted for IPO costs, restructuring costs and other items affecting comparability. 2 Earnings per share (EPS) has been calculated based on 20 000 000 shares, corresponding to the number of shares in the parent company Terranor Group AB. The same number of shares has been applied for the comparable periods to ensure consistency. Significant events during the quarter Terranor AB won four large public tenders of which three were state contracts for the Swedish Transport Administration: • A state contract in Väsby worth 272 MSEK over four years • A state contract in South-East Värmland worth 214 MSEK over four years • A two-year option for a state contract in Gothenburg valued at 175 MSEK • Two municipal operation and maintenance contracts in Falun worth in total 73 MSEK over two years with an option of an additional two years Terranor Oy won a municipal contract in Järvenpää worth 116 MSEK over four years Terranor A/S won a five-year municipal contract in Ikast-Brande worth 206 MSEK Terranor A/S won a municipal contract in Copenhagen worth 115 MSEK over four years, starting at 1 January 2027 In May 2026, the principal shareholder, Mutares SE & Co. KGaA, sold the remainder of their shares in Terranor Group 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) Significant events after the period Terranor AB won a four-year municipal contract with Borås worth 44 MSEK Amounts in kSEK2026 2025 Δ 2026 2025 ΔRevenue1 041 371 848 969 23% 1 946 196 1 584 980 23%Revenue growth (%)23% 12% 11 p.p 23% 7% 16 p.pItems affecting comparability753 31 551 -98% 6 047 36 033 -83%Adjusted EBITA ¹27 240 16 931 61% 47 083 29 141 62%Adjusted EBITA margin, %2.6% 2.0% 1 p.p 2.4% 1.8% 1 p.pProfit before tax17 820 -21 523 183% 24 524 -20 453 220%Earnings per share before and after dilution (SEK) ²0.70 -0.95 174% 1.06 -0.97 210%Adjusted operating cash flow20 017 4 608 334% -15 344 90 793 -117%Net debt/LTM adj. EBITDA -1.97x -1.51x 0.46x - - -Order backlog 7 293 709 5 995 430 22% 7 293 709 5 995 430 22%Apr-Jun Jan-Jun 2.6% (2.0%) Adj. EBITA margin 27 (17) Adj. EBITA, MSEK1 1 041 (849) Revenue, MSEK 23% (12%) Revenue growth
Page 3
Terranor Group Interim Report January – June 2026| 3 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. 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
Page 4
Terranor Group Interim Report January – June 2026| 4 Terranor at a glance Financial targets Terranor is one of the leading players in road operations and 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 operations and maintenance, with snow removal and friction, and summer maintenance, such as repairs and asphalt work. In addition, Terranor offers services in green area management, road safety and light infrastructure projects. Terranor is the only major private player specialized in road operations and maintenance in the Nordic region, which provides competitive advantages in the tender procedures. Terranor currently operates in the Swedish, Finnish, and Danish markets, which are characterized by high stability, significant growth drivers, and high barriers to entry. The market for road infrastructure services is stable and generally supported by long-term structural trends. Terranor’s markets The market in which Terranor operates can be divided into two main areas: road operations and maintenance, together with light infrastructure, light construction, and other adjacent areas such as green construction and maintenance, and standalone temporary road safety services. Terranor has implemented a strategy tailored to the conditions in each geographical market and local area, to better adapt to the specific market conditions in each country and region where it operates. Road operations and maintenance Light construction Green construction and maintenance Temporary road safety services Terranor’s customer base Terranor’s customers are found in both the public and private sectors, but the vast majority of Terranor’s revenues come from government and municipal clients. The Company works with long-term contracts, in general between four and eight years, which provide stable revenue streams with low risk and good visibility. Terranor’s diligent tender strategy has contributed to a revenue growth rate, that by far surpasses the market focusing on profitable contract wins. Revenue by country as per 2025 Revenue by customer group as per 2025 62%21%17%SwedenDenmarkFinland69%17%14%StateMunicipalPrivate Profitability >5% Reach an adjusted EBITA margin of more than 5% in the medium term Leverage <2.5x Net debt / LTM adjusted EBITDA should not exceed 2.5x Dividend ≥50% Target to distribute at least 50% of consolidated net income Growth >8% Achieve an average annual revenue growth of at least 8% in the medium term
Page 5
Terranor Group Interim Report January – June 2026| 5 Group performance Revenue Revenue for the second quarter of 2026 amounted to 1 041.4 MSEK (849.0 MSEK), an increase of 23 percent year-on-year. The strong growth was primarily driven by Sweden, where revenue increased 32 percent year-on-year primarily on higher state contract volumes, but also on municipal and other customer segments. Denmark grew 13 percent. Growth was driven by special services and supported by municipal contracts volume, while Finland grew 4 percent, reflecting higher municipal contract volumes. For the first six months, revenue increased to 1 946.2 MSEK (1 585.0 MSEK), an increase of 23 percent (7 percent). Growth was driven by Sweden, up 34 percent on contracts won during the 2025 tender season and continued high activity across state and municipal contracts, and by Denmark, up 9 percent on the ramp-up of its four new state contracts from January and higher municipal and specialized transport volumes, while Finland's revenue was broadly stable. Adjusted EBITA Adjusted EBITA for Q2 2026 amounted to 27.2 MSEK (16.9 MSEK), an increase of 61 percent year-on-year. The adjusted EBITA margin was 2.6 percent (2.0 percent). The improvement reflects higher EBITA contributions in Sweden and in Denmark, led by Sweden on strong revenue growth and margin expansion, together with a lower level of items affecting comparability compared to Q2 2025. Items affecting comparability for the quarter amounted to 0.8 MSEK, primarily relating to legal fees in Finland. For the first six months, adjusted EBITA amounted to 47.1 MSEK (29.1 MSEK), corresponding to an adjusted EBITA margin of 2.4 percent (1.8 percent). The improvement was led by Sweden, up 60 percent on strong revenue growth and margin expansion, together with higher contributions from Denmark and Finland and a lower level of items affecting comparability, which fell to 6.0 MSEK (36.0 MSEK) for the period, primarily relating to legal fees in Finland. Operating profit The operating profit for Q2 2026 was 24.4 MSEK (-17.2 MSEK), corresponding to a margin of 2.3 percent (-2.0 percent). The year-on-year improvement reflects the higher adjusted EBITA result and lower items affecting comparability compared to Q2 2025. Amortization of acquisition- related intangibles amounted to 2.1 MSEK (2.5 MSEK). Operating profit (EBIT) for the first six months amounted to 36.5 MSEK (-12.0 MSEK), an increase of 48.5 MSEK, reflecting the higher adjusted EBITA result and a significantly lower level of items affecting comparability, 0,8 MSEK (31,6 MSEK) than in the first half of 2025 that was mostly affected by cost for IPO. Amortization of acquisition-related intangibles for the first six months amounted to 4.5 MSEK (5.1 MSEK). Profit Profit for Q2 2026 was 14.1 MSEK, compared to a loss of 19.1 MSEK in the same period last year. The improvement was driven primarily by the higher operating profit, partly offset by a tax expense of -3.7 MSEK for the quarter. Net financial costs amounted to -6.6 MSEK (- 4.4 MSEK), reflecting higher lease financing costs from the expanded contract base. Profit for the first six months increased to 21.2 MSEK, compared to a loss of 19.3 MSEK in the same period last year, driven primarily by the higher operating profit and a net tax expense of -3.4 MSEK for the period. Net financial costs amounted to -12.0 MSEK (-8.4 MSEK), reflecting higher lease financing costs. Revenue per quarter MSEK Adj. EBITA per quarter kSEK/% Operating profit per quarter kSEK Profit per quarter kSEK 02004006008001 0001 2001 400Q1 Q2 Q3 Q4 Q1 Q22025 20260.0%1.0%2.0%3.0%4.0%5.0%6.0%010 00020 00030 00040 00050 00060 000Q1 Q2 Q3 Q4 Q1 Q22025 2026-20 000-10 000010 00020 00030 00040 000Q1 Q2 Q3 Q4 Q1 Q22025 2026-25 000-20 000-15 000-10 000-5 00005 00010 00015 00020 000Q1 Q2 Q3 Q4 Q1 Q22025 2026
Page 6
Terranor Group Interim Report January – June 2026| 6 Financing and Cash Flow Leverage Net debt / LTM Adjusted EBITDA (leverage) for Q2 2026 was −1.97x (−1.51x in Q2 2025), compared to −1.50x at year-end 2025. The increase from year-end reflects a build-up in net working capital, primarily trade receivables tracking the strong revenue growth in the quarter and funded via short-term credit facilities, together with higher lease liabilities from new contract mobilisations. Leverage remains comfortably below the Group’s financial target of less than 2.5x. Cash Flow Cash flow from operating activities for Q2 2026 amounted to −23.7 MSEK (-29.1 MSEK). The year-on-year improvement in underlying profitability was more than offset by a build-up in net working capital, primarily an increase in trade receivables in line with the strong revenue growth in the quarter, partly mitigated by higher trade and other payables. For the first six months, cash flow from operating activities amounted to -61.6 MSEK (41.0 MSEK), reflecting a build-up in net working capital, primarily higher trade receivables tracking strong revenue growth, together with an invoicing-timing effect versus the prior year. Cash flow from investing activities for the quarter amounted to 17.2 MSEK (−4.5 MSEK), reflecting proceeds of 14.2 MSEK from disposals of property, plant and equipment, in excess of capital expenditure during the quarter. Terranor maintains a disciplined and low capital intensity profile, consistent with its asset-light operating model. Cash flow from investing activities for the first six months amounted to 18.0 MSEK (-8.4 MSEK), reflecting proceeds from disposals of property, plant and equipment in excess of capital expenditure over the period. Cash flow from financing activities amounted to −3.4 MSEK (-5.0 MSEK), reflecting scheduled repayments on lease liabilities and a dividend payment of 30.0 MSEK, and net drawdowns on bank credit facilities during the quarter. Cash flow from financing activities for the first six months amounted to -10.4 MSEK (-54.1 MSEK), reflecting scheduled lease repayments, net repayments of borrowings, a dividend payment of 30.0 MSEK, and net drawdowns on bank credit facilities over the period. Leverage ratio per quarter Cash flow from operating activities per quarter kSEK - 2,50x- 2,00x- 1,50x- 1,00x- 0,50x 0,00xQ1 Q2 Q3 Q4 Q1 Q22025 2026-50 000050 000100 000150 000200 000250 000Q1 Q2 Q3 Q4 Q1 Q22025 2026
Page 7
Terranor Group Interim Report January – June 2026| 7 Segment – Sweden Terranor Sweden continued its strong tender season in Q2 2026, securing new contracts totalling 792 MSEK during the quarter. The segment secured three state contracts for the Swedish Transport Administration, two municipal contracts in Falun, reflecting Terranor’s continued success in the Swedish tender market. Combined with new orders secured in Q1 2026, new order intake for the first half of 2026 amounted to approximately 2,083 MSEK. At the end of Q2 2026, the contract backlog reached its highest level in the company’s history, providing strong revenue visibility into 2030. Subsequent to the quarter end, Terranor AB was awarded a four-year municipal contract with Borås worth 44 MSEK. Revenue 668.8 MSEK (506.9) Revenue in Sweden for Q2 2026 amounted to 668.8 MSEK (506.9 MSEK), an increase of 32 percent year-on-year. The strong revenue growth was driven by new contracts won during the 2025 tender season and continued high activity levels across state and municipal contracts. Adjusted EBITA 21.7 MSEK (11.2) Adjusted EBITA in Sweden amounted to 21.7 MSEK (11.2 MSEK), an increase of 93 percent year-on-year. The adjusted EBITA margin was 3.2 percent (2.2 percent), an improvement of 1.0 percentage points year-on-year, reflecting improved margins in the contract portfolio and increased demand for change and additional works within and alongside the base contracts for state and municipalities. Revenue per quarter, MSEK Adj. EBITA per quarter MSEK Amounts in kSEK2026 2025 % Revenue668 756 506 907 32% Adjusted EBITA21 654 11 232 93% Adjusted EBITA margin3.2% 2.2% 1 p.pApr-Jun Amounts in kSEK2026 2025 % Revenue1 287 902 958 274 34% Adjusted EBITA44 429 27 836 60% Adjusted EBITA margin3.4% 2.9% 1 p.pJan-Jun0100200300400500600700800900Q1 Q2 Q3 Q4 Q1 Q22025 202605101520253035404550Q1 Q2 Q3 Q4 Q1 Q22025 2026
Page 8
Terranor Group Interim Report January – June 2026| 8 Segment – Finland During the second quarter Terranor Oy secured a new municipal contract in Järvenpää worth 116 MSEK, maintaining its market share. Terranor Oy continues tender season towards municipal and infrastructure tenders with a selective approach. Total new contracts secured for the first half of 2026 amount to approximately 419 MSEK. Revenue 160.3 MSEK (154.4) Revenue in Finland for Q2 2026 amounted to 160.3 MSEK (154.4 MSEK), broadly stable year- on-year with a 4 percent increase. Operations continued to experience pressure from state contracts with high material-cost ratios and ceiling-price constraints. This was offset by higher municipal contract volumes and a strong contribution from the completion of a major infrastructure project during the quarter. Adjusted EBITA 0.3 MSEK (0.8) Adjusted EBITA in Finland amounted to 0.3 MSEK (0.8 MSEK), a decline of 0.5 MSEK year-on- year. The adjusted EBITA margin was 0.2 percent (0.5 percent). The decline reflects continued ceiling-price pressure and risk provisions on certain state contracts. Terranor maintains an active yet firm position regarding valid compensation claims on older state contracts, as described earlier. There has been no material new development on the matter during the period. Revenue per quarter, MSEK Adj. EBITA per quarter MSEK Amounts in kSEK2026 2025 %Revenue160 262 154 376 4%Adjusted EBITA290 831 -65%Adjusted EBITA margin0.2% 0.5% 0 p.pApr-JunAmounts in kSEK2026 2025 %Revenue304 823 301 843 1%Adjusted EBITA678 -88 870%Adjusted EBITA margin0.2% 0.0% 0 p.pJan-Jun050100150200250Q1 Q2 Q3 Q4 Q1 Q22025 2026-2-1-1011223Q1 Q2 Q3 Q4 Q1 Q22025 2026
Page 9
Terranor Group Interim Report January – June 2026| 9 Segment – Denmark The second quarter was characterised by the continued ramp-up of the four Vejdirektoratet state contracts that commenced at the beginning of the year, as well as the ongoing ramp-up of the Tønder Municipality contract (270 MSEK, won in 2025). Segment secures two new municipal contracts: Ikast-Brande (206 MSEK) and a cleaning contract with the Municipality of Copenhagen (115 MSEK). Total new contracts secured for the first half of 2026 amount to approximately 321 MSEK. Revenue 213.2 MSEK (188.3) Revenue in Denmark for Q2 2026 amounted to 213.2 MSEK (188.3 MSEK), an increase of 13 percent year-on-year. Growth was driven by the municipal contracts together with higher activity in the Sweeping and Specialized Transport business areas. Adjusted EBITA 6.2 MSEK (5.1) Adjusted EBITA in Denmark amounted to 6.2 MSEK (5.1 MSEK), an improvement of 1.2 MSEK compared to the same period last year. The improvement reflects stronger profitability on state contracts and the continued good development in the overall contract portfolio. Revenue per quarter, MSEK Adj. EBITA per quarter MSEK Amounts in kSEK2026 2025 %Revenue213 202 188 333 13%Adjusted EBITA6 234 5 068 23%Adjusted EBITA margin2.9% 2.7% 0 p.pApr-JunAmounts in kSEK2026 2025 %Revenue355 154 326 175 9%Adjusted EBITA3 762 1 777 112%Adjusted EBITA margin1.1% 0.5% 1 p.pJan-Jun050100150200250Q1 Q2 Q3 Q4 Q1 Q22025 2026-4-202468Q1 Q2 Q3 Q4 Q1 Q22025 2026
Page 10
Terranor Group Interim Report January – June 2026| 10 Other information The Terranor Share Terranor Group AB (publ)’s share has been listed on Nasdaq First North Premier segment since 30 June 2025. The stock is traded with the ticker or short name TERNOR. Terranor’s Certified Adviser is DNB Carnegie Investment Bank AB. The closing price of the Terranor share on the last trading day in the period was SEK 34.50. Average number of outstanding shares for the quarter amounted to 20 000 000 (20 000 000) and for January–June to 20 000 000 (10 250 000). The table below describes Terranor’s ownership structure as of 30 June 2026. Related Parties The Group has had costs to Mutares SE & Co. KGaA (“Mutares”) of 0.0 MSEK (2.6). The Group has purchased services from Mutares in the form of management fees and other advisory services in 2025. During 2026, the Group has purchased legal services from Board member Håkan Broman amounting to 244 TSEK (0). Environmental, social and governance Terranor ensures ethical behaviour, fair working conditions, and compliance through its Code of Conduct, which includes guidelines on business ethics, human rights, anti-corruption, health and safety, environmental responsibility, and against discrimination and harassment. Breaches may result in disciplinary action. Annual salary surveys ensure fair remuneration, and the Group complies with relevant labor laws. No one under 16 is employed, and subcontractors must have union agreements or approval via form UE 2021. During projects, everyone at construction sites wears ID06 and is registered electronically. The Compliance and Ethics Committee, consisting of supervisors and management representatives from HR, Compliance, and Legal, meets quarterly to uphold high ethical standards and address compliance incidents promptly. Terranor's supplier policy sets sustainability and ethics requirements within the supply chain. The company promotes an inclusive and safe workplace founded on honesty, respect, trust, and progress. It aims for long-term environmental sustainability by complying with laws and regulations, taking preventive measures, and making ongoing improvements. High ethical standards guide employees' decisions, ensuring clarity when raising concerns. Occupational safety is a priority, aiming for zero accidents through hazard elimination, risk reduction, and continuous training. Regular audits and inspections monitor safety efforts. Terranor's Code of Conduct outlines expectations for ethical behaviour and social responsibility, supported by risk analyses in health and safety. Parent Company The parent company undertakes no business activities on its own. Further, the parent company owns and manages the subsidiaries within the group. Employees At the end of the period, the Group had 731 (686) employees, out of which 159 (135) are women and 572 (551) are men. The company's operations are based on successful tendering, effective site setup, and profitable contract execution. It uses structured frameworks to ensure ongoing skill development and operational excellence throughout the organization. Seasonal effects Terranor is impacted by seasonal variations due to weather conditions. Earnings in the first quarter are normally weaker than the rest of the year. Significant Risks and Uncertainties Terranor’s results, financial position, and cash flows are affected by a range of external and internal risk factors. The Group’s risk management aims to identify, assess, and mitigate these risks as far as practicable. The principal risks and uncertainties faced by the Group have not materially changed from those described in note 3 of the 2025 Annual Report, however an updated assessment is provided below. Terranor’s operations are exposed to macroeconomic factors including inflation, political uncertainty, and changes in energy and material prices. The ongoing conflict in the Middle East has led to rising and volatile energy prices, which may have a potential effect on the overall economic development. In the absolute majority of ongoing contracts Terranor has index adjustments and the Group’s current assessment is that this provides adequate protection from significant adverse financial effects in 2026. The group will continue to monitor this closely in order to manage and limit any potential negative effects on its operations. The Group’s financial performance is influenced by weather and seasonal conditions, supply chain reliability, and the ability to execute contracts according to plan. Regulatory compliance across three jurisdictions introduces legal and administrative risk. Contractual obligations carry potential liability if terms are not met. Restructuring activities in certain Swedish subsidiaries and in Finland introduce transitional risk. Through its operations, Terranor is exposed to credit risk, interest rate risk, currency risk, and liquidity risk. The Group’s leverage ratio was −1.97x at 30 June 2026, remaining comfortably within its financial target of less than 2.5x. The Group maintains sufficient liquidity to meet its operational and financial commitments.
Page 11
Terranor Group Interim Report January – June 2026| 11 In Finland, Terranor faces material ceiling price risk in several long-term state contracts. With reference to previous reporting on these contracts, Terranor Oy has submitted several contractually valid claims for additional compensation referring to pending government contracts awarded during the period 2021–2023. No material development occurred concerning these claims during the reporting period, and the matter remains unresolved, with the claims still pending amicable settlement or resolution by court of law. Terranor operates under a strictly decentralized business model, whereby each country organization functions as an independent operating unit as well as a separate incorporated entity. Accordingly, the potential financial impact on the Terranor Group from an adverse outcome concerning the aforesaid claims, which we do not anticipate, is considered limited. Outstanding intra-group exposure is restricted to customary performance guarantees relating to the relevant contracts. These guarantees are distributed across 19 contracts with maturities ranging from 2026 to 2030. The guarantees are not callable on demand and may only be exercised in the event the specific Terranor entity is unable to fulfil its contractual obligations as acknowledged by Terranor or a final award by court of law. The parent company’s aggregate exposure related to these performance guarantees amounts to approximately 48 MSEK. Accordingly, the management’s assessment of the claims at issue remains unchanged from previous report. Sensitivity analyses are performed on an ongoing basis to assess the potential financial impact on Terranor Oy, which — given the limited parent company exposure described above — is also considered limited for the wider Terranor Group.
Page 12
Terranor Group Interim Report January – June 2026| 12 Financial statements Condensed consolidated income statement 1 Earnings per share (EPS) has been calculated based on 20 000 000 shares, corresponding to the number of shares in the parent company Terranor Group AB. The same number of shares has been applied for the comparable periods to ensure consistency. Condensed consolidated statement of comprehensive income Jan-DecAmounts in kSEK Note2026 2025 2026 2025 2025Revenue 51 041 371 848 969 1 946 196 1 584 980 3 602 622Other operating income15 268 2 696 22 321 5 357 7 461Raw materials and consumables used-722 649 -593 628 -1 359 102 -1 090 110 -2 528 206Personnel expenses-185 505 -173 633 -347 177 -306 076 -627 788Depreciation and amortization-46 485 -37 633 -90 882 -74 580 -161 180Other operating expenses-77 572 -63 921 -134 847 -131 588 -277 428Operating profit (EBIT)24 428 -17 150 36 509 -12 017 15 481Financial income103 27 125 124 199Financial expenses-6 710 -4 401 -12 110 -8 560 -21 272Profit before tax17 820 -21 523 24 524 -20 453 -5 592Income tax expense-3 745 2 445 -3 357 1 128 -17 539Profit for the period14 075 -19 079 21 166 -19 325 -23 130The profit for the period is entirely attributable to the parent company’s shareholdersEarnings per shareEarnings per share before and after dilution¹ (SEK)0.70 -0.95 1.06 -0.97 -1.16 Apr-Jun Jan-JunJan-DecAmounts in kSEK Note20262025202620252025Profit for the period14 075-19 07921 166-19 325-23 130Other comprehensive incomeItems that will be reclassified to profit or loss (net of tax)Translation difference947 2 370 1 515 -2 910 -5 191Total other comprehensive income for the period, net of tax947 2 370 1 515 -2 910 -5 191Comprehensive income for the period, net of tax15 022 -16 709 22 682 -22 235 -28 321The profit for the period is entirely attributable to the parent company’s shareholdersApr-Jun Jan-Jun
Page 13
Terranor Group Interim Report January – June 2026| 13 Condensed consolidated balance sheet 31 DecAmounts in kSEK2026 2025 2025ASSETSNon-current assetsGoodwill18 626 18 626 18 626Intangible assets15 338 25 666 18 827Property, plant and equipment91 830 115 358 105 441Right-of-use assets419 443 282 363 393 552Deferred tax assets15 020 26 851 11 711Other non-current financial assets4 087 4 163 4 167Total non-current assets564 344 473 028 552 324Current assetsInventories15 831 21 781 30 613Trade receivables379 557 293 445 407 068Other current receivables381 849 283 181 246 116Cash and cash equivalents23 268 22 797 76 734Total current assets800 505 621 204 760 530TOTAL ASSETS 1 364 849 1 094 232 1 312 85330 Jun31 DecAmounts in kSEK2026 2025 2025EQUITY AND LIABILITIESEquityShare capital20 000 20 000 20 000Other contributed capital47 900 47 900 47 900Reserves6 502 7 267 4 986Retained earnings including profit for the year106 664 118 803 115 498Equity attributable to shareholders of the parent company181 066 193 971 188 384Total equity181 066 193 971 188 384Non-current liabilitiesLiabilities to credit institutions13 786 20 308 15 561Lease liabilities292 039 187 785 270 589Deferred tax liabilities14 363 9 357 10 855Other non-current liabilities1 616 5 205 7 020Total non-current liabilities321 804 222 655 304 025Current liabilitiesLiabilities to credit institutions138 771 69 365 32 801Accounts payables266 642 204 116 338 560Income tax liabilities12 069 6 284 5 806Lease liabilities137 087 102 749 131 024Other current liabilities300 648 291 330 273 018Accrued expenses and prepaid income6 009 3 009 38 482Provisions754 754 754Total current liabilities861 979 677 607 820 444TOTAL EQUITY AND LIABILITIES1 364 849 1 094 232 1 312 853 30 Jun
Page 14
Terranor Group Interim Report January – June 2026| 14 Condensed consolidated statement of changes in equity QuarterAmounts in kSEKShare capitalOther contributed capital ReservesRetained earnings including profit for the periodTotal equityOpening balance2026-04-0120 000 47 900 5 555 122 590 196 045Profit for the period- - - 14 075 14 075Other comprehensive income for the period- - 947 - 947Total comprehensive income- - 947 14 075 15 022Transactions with shareholdersDividend- - - -30 000 -30 000Total- - - -30 000 -30 000Closing balance2026-06-3020 000 47 900 6 502 106 664 181 066Opening balance2025-04-0150 67 400 4 898 138 332 210 680Effect of common control transaction19 950 -19 500 - -450 -Profit for the period- - - -19 079 -19 079Other comprehensive income for the period- - 2 370 - 2 370Total comprehensive income- - 2 370 -19 079 -16 709Closing balance2025-06-3020 000 47 900 7 267 118 803 193 971 Equity attributable to shareholders of the parent companyYear to dateAmounts in kSEKShare capitalOther contributed capital ReservesRetained earnings including profit for the period Total equityOpening balance2026-01-0120 000 47 900 4 986 115 498 188 384Profit for the period- - - 21 166 21 166Other comprehensive income for the period- - 1 515 - 1 515Total comprehensive income1 515 21 166 22 681Transactions with shareholdersDividend- - - -30 000 -30 000Total- - - -30 000 -30 000Closing balance2026-06-3020 000 47 900 6 502 106 664 181 066Equity attributable to shareholders of the parent companyOpening balance2025-01-0150 67 400 10 177 138 578 216 206Profit for the period- - - -19 325 -19 325Effect of common control transaction19 950 -19 500 - -450 -Other comprehensive income for the period- - -2 910 - -2 910Total comprehensive income- - -2 910 -19 325 -22 235Transactions with shareholdersDividend- - - - -Total- - - - -Closing balance2025-06-3020 000 47 900 7 267 118 803 193 971
Page 15
Terranor Group Interim Report January – June 2026| 15 Amounts in kSEKShare capitalOther contributed capital ReservesRetained earnings including profit for the periodTotal equityOpening balance2025-01-0150 67 400 10 177 138 578 216 206Effect of common control transaction19 950 -19 500 - 50 500Profit for the period- - - -23 130 -23 130Other comprehensive income for the period- - -5 191 - -5 191Total comprehensive income-5 191 -23 130 -28 321Closing balance2025-12-3120 000 47 900 4 986 115 498 188 384Equity attributable to shareholders of the parent company
Page 16
Terranor Group Interim Report January – June 2026| 16 Condensed consolidated statement of cash flows A minor adjustment has been made to how translation differences are presented in the cash flow. The comparative figures have been restated, but the effect is deemed to be immaterial. A minor adjustment has been made in classification of changes in working capital. The comparative figures have been restated. The effect is deemed to be minor. Jan-DecAmounts in kSEKNo2026 2025 2026 2025 2025Operating activitiesOperating profit (EBIT)24 428 -17 150 36 509 -12 017 15 481Adjustment for items not included in cash flow32 368 37 163 75 675 72 194 156 959Interest received103 27 125 124 199Interest paid-2 199 -1 371 -3 392 -2 538 -7 190Income tax paid-10 071 -6 293 -6 549 -21 226 -29 146Cash flow from operating activities before changes in working capital44 629 12 377 102 368 36 537 136 303Cash flow from changes in working capitalChange in inventories12 868 18 127 14 726 -672 -9 932Change in trade receivables-125 385 -53 550 30 760 72 392 -45 184Change in other operating receivables-32 512 -67 080 -129 219 -106 088 -66 989Changes in trade payables31 546 27 651 -74 255 -27 375 111 077Changes in other operating payables45 149 33 342 -5 937 66 208 88 584Change in working capital-68 334 -41 510 -163 925 4 465 77 556Cash flow from operating activities-23 706 -29 133 -61 558 41 002 213 858 Apr-Jun Jan-JunJan-DecAmounts in kSEK2026 2025 2026 2025 2025Investing activitiesPurchase of intangible assets-176 - -680 - -Purchase and disposal of property, plant and equipment17 375 -4 537 18 707 -8 410 -6 535Cash flow from investing activities17 199 -4 537 18 026 -8 410 -6 535Financing activitiesChange in borrowings69 834 25 674 102 562 7 711 -33 011Payment of principal portion of lease liabilities-38 681 -28 173 -74 200 -56 328 -127 011Payment of interest for the lease liabilities-4 511 -3 030 -8 718 -6 022 -14 082Paid dividend -30 000 - -30 000 - -New share issue- 500 - 500 500Cash flow from financing activities-3 358 -5 029 -10 356 -54 139 -173 603Cash flow for the period-9 865 -38 699 -53 888 -21 547 33 720Cash and cash equivalents at the beginning of the period32 676 60 590 76 734 45 292 45 292Exchange differences458 906 422 -947 -2 278Cash and cash equivalents at the end of period23 268 22 797 23 268 22 797 76 734 Apr-Jun Jan-Jun
Page 17
Terranor Group Interim Report January – June 2026| 17 Note 1 General information This interim report covers the Swedish parent company Terranor Group AB (publ.), company registration number 559525-3732 and its subsidiaries. The headquarter is located on Björnstigen 85, 170 73, Solna, Sweden. Terranor is a leading operations and maintenance service provider for road infrastructure in the Nordics. Note 2 Accounting principles The interim report for the Group has been prepared in compliance with IAS 34 Interim Financial Reporting and applicable sections of the Swedish Annual Accounts Act (1995:1554). The interim report for the parent company was prepared in accordance with the Annual Accounts Act, Chapter 9 Interim Financial Reporting, and recommendation RFR 2 Accounting of Legal Entities issued by the Swedish Financial Accounting Standards Council. The accounting principles applied in this interim report are consistent with the accounting principles presented in note 2 of the 2025 Annual Report. All amounts are stated in thousands ("kSEK") of Swedish kronor unless otherwise specified. Rounding differences may occur. Note 3 Significant estimates and judgements Preparation of the financial statements in accordance with IFRS requires management to make judgements, estimates and assumptions that affect the recognized amounts of assets, liabilities, revenues, and expenses, as well as related disclosures. In applying the Group's accounting principles, management makes various judgments that can significantly affect the amounts reported in the financial statements. The uncertainties in estimates and assumptions relating to future periods may have a significant risk of a significant adjustment to the recognized values of assets and liabilities during the upcoming fiscal year. Judgments and estimates are continuously evaluated and are based on historical experience and expectations of future events that are considered reasonable under current circumstances. Changes in estimates and judgments are recognized in the period in which the change is made if the change only affects that period, or in the period in which the change is made and future periods if the change affects both the current period and future periods. The same estimates and judgments have been made in this report as presented in note 3 of the 2025 Annual Report.
Page 18
Terranor Group Interim Report January – June 2026| 18 Note 4 Operating segments Terranor operates under a decentralized model where each country functions as a separate component and is monitored individually. Accordingly, the Group's segments consist of the three countries: Sweden, Finland, and Denmark, which also represent the geographical areas in which the Group operates. As a result, no aggregation of segments has been deemed necessary. The Chief Operating Decision Maker (CODM), who in Terranor is the Group CEO, reviews and allocates resources based on the performance measure adjusted EBITA. This performance measure also serves as the segment measure for the Group. Apr-Jun 2026 Sweden Finland Denmark Total segments Group functions Eliminations Group totalRevenue from external customers668 756 159 413 213 202 1 041 371 - - 1 041 371Inter-segment revenue- 849 - 849 - -849 -Total revenue668 756 160 262 213 202 1 042 220 - -849 1 041 371Other operating income16 892 - 399 17 291 - -2 023 15 268Raw materials and consumables used-484 070 -130 418 -108 161 -722 649 - - -722 649Personnel expenses-101 906 -17 514 -66 085 -185 505 - - -185 505Depreciation and impairment of property, plant and equipment and right-of-use assets-25 960 -5 073 -13 391 -44 424 - - -44 424Other operating expenses-52 058 -7 719 -19 730 -79 507 -938 2 873 -77 572EBITA21 654-4626 23427 426-938126 489Items affecting comparability- 752 - 752 - - 752Adjusted EBITA21 6542906 23428 178-938127 2401. Specification of items affecting comparabilityRestructuring costs and other items affecting comparability- 752 - 752 - - 752Total items affecting comparability-752-752--752
Page 19
Terranor Group Interim Report January – June 2026| 19 Note 4 Operating segments (cont.) Apr-Jun 2025 Sweden Finland Denmark Total segments Group functions Eliminations Group totalRevenue from external customers506 907 153 729 188 333 848 969 - - 848 969Inter-segment revenue- 647 - 647 - -647 -Total revenue506 907 154 376 188 333 849 616 - -647 848 969Other operating income4 704 - - 4 704 - -2 008 2 696Raw materials and consumables used-370 116 -123 323 -100 189 -593 628 - - -593 628Personnel expenses-93 639 -22 916 -57 078 -173 633 - - -173 633Depreciation and impairment of property, plant and equipment and right-of-use assets-19 391 -4 716 -10 995 -35 102 - - -35 102Other operating expenses-42 617 -8 148 -15 611 -66 376 - 2 455 -63 921EBITA-14 151 -4 727 4 460 -14 420 - -200 -14 619Items affecting comparability25 384 5 558 609 31 551 - - 31 551Adjusted EBITA11 232 831 5 068 17 131 - -200 16 9311. Specification of items affecting comparabilityRestructuring costs and other items affecting comparability25 384 5 558 609 31 551 - - 31 551Total items affecting comparability25 384 5 558 609 31 551 - - 31 551Jan-Dec2026 2025 2026 2025 2025Adjusted EBITA27 240 16 931 47 083 29 141 98 087Amortization of intangible assets-2 060 -2 531 -4 528 -5 125 -10 222Items affecting comparability-753 -31 551 -6 047 -36 033 -72 384Financial income103 27 125 124 199Financial expenses-6 710 -4 401 -12 110 -8 560 -21 272Result before tax17 820 -21 523 24 524 -20 453 -5 592Apr-Jun Jan-Jun
Page 20
Terranor Group Interim Report January – June 2026| 20 Note 4 Operating segments (cont.) Jan-Dec 2025 Sweden Finland Denmark Total segmentsGroup functions Eliminations Group totalRevenue from external customers2 231 102 628 375 743 145 3 602 622 - - 3 602 622Inter-segment revenue- 2 616 - 2 616 - -2 616 -Total revenue2 231 102 630 991 743 145 3 605 237 - -2 616 3 602 622Other operating income13 773 89 - 13 862 - -6 401 7 461Raw materials and consumables used-1 605 356 -509 895 -412 955 -2 528 206 - - -2 528 206Personnel expenses-339 213 -73 594 -214 981 -627 788 - - -627 788Depreciation and impairment of property, plant and equipment and right-of-use assets-83 766 -20 813 -46 380 -150 958 - - -150 958Other operating expenses-188 560 -31 610 -62 007 -282 177 -4 221 8 970 -277 428EBITA27 980 -4 831 6 822 29 971 -4 221 -48 25 703Items affecting comparability61 862 6 148 2 577 70 587 1 796 - 72 384Adjusted EBITA89 842 1 316 9 400 100 559 -2 425 -48 98 0871. Specification of items affecting comparabilityRestructuring costs and other items affecting comparability61 862 6 148 2 577 70 587 1 796 - 72 384Total items affecting comparability61 862 6 148 2 577 70 587 1 796 - 72 384
Page 21
Terranor Group Interim Report January – June 2026| 21 Note 5 Revenue The Group’s revenue corresponds to the revenue from contracts with customers and is presented below. In addition to segment reporting (by country), the Group disaggregates its revenue by customer type, which reflects how Terranor monitors its revenue. Note 6 Financial instruments The Group's interest-bearing liabilities are subject to variable interest rates, and the carrying amount is a reasonable approximation of the fair value. For other financial assets and liabilities, the carrying amount is a reasonable approximation of the fair value. Note 7 Transactions with related parties The Group had 0 MSEK (2.6 MSEK) of costs related to Mutares. The Group has purchased services from Mutares in the form of management fees and other advisory services. The Group has purchased legal services from Board member Håkan Broman amounting to 244 kSEK (0 kSEK) during the period. Note 8 Significant events after the reporting date • Terranor AB won a four-year municipal contract with Borås worth 44 MSEK Apr-Jun 2026 Sweden Finland Denmark Group totalBy type of customerState490 913 120 401 91 640 702 954Municipalities90 470 22 850 52 536 165 856Private sector87 373 16 162 69 026 172 561Total revenue668 756 159 413 213 202 1 041 371Apr-Jun 2025 Sweden Finland Denmark Group totalBy type of customerState357 300 133 136 100 320 590 756Municipalities85 296 12 683 54 780 152 759Private sector64 311 7 910 33 232 105 453Total revenue506 907 153 729 188 333 848 969Jan-Dec 2025 Sweden Finland Denmark Group totalBy type of customerState1 578 865 542 777 375 946 2 497 589Municipalities347 164 56 427 196 241 599 833Private sector305 071 29 171 170 957 505 199Total revenue2 231 102 628 375 743 145 3 602 622Jan-DecMutares SE & Co.KGaA2026 2025 2026 2025 2025Purchases of goods and services- 2 612 - 5 565 8 968Interest expenses- - - - -Total liabilities at end of period- 1 293 - 1 293 -Jan-JunApr-Jun
Page 22
Terranor Group Interim Report January – June 2026| 22 Income statement, parent company Jan-DecAmounts in kSEK Note 2026 2025 2026 2025 2025Revenue- - - -Other operating expenses-938 - -1 787 - -4 221Operating profit (EBIT)-938 - -1 787 - -4 221Result from shares in subsidiaries30 000 30 000Financial income- - - - -Financial expenses- - - - -Result after financial items29 062-28 213--4 221Income tax expense368 - 368 - 869Profit for the period29 430 - 28 581 - -3 351The profit for the period corresponds to the total comprehensive income for the period.Jan-JunApr-Jun
Page 23
Terranor Group Interim Report January – June 2026| 23 Balance sheet, parent company 31 DecAmounts in kSEK 2026 2025 2025ASSETSNon-current assetsShares in subsidiaries156 480 156 480 156 480Deferred tax assets1 237 - 869Total non-current assets157 717 156 480 157 349Current assetsOther current assets214 500 674Cash and cash equivalents360 - 275Total current assets574 500 949TOTAL ASSETS158 291 156 980 158 29730 Jun31 DecAmounts in kSEK2026 2025 2025EQUITY AND LIABILITIESEquityShare capital20 000 20 000 20 000Total restricted equity20 000 20 000 20 000Share premium reserve106 980 136 980 136 980Retained earnings including profit for the year25 231 - -3 351Total unrestricted equity132 211 136 980 133 629Total equity152 211 156 980 153 629Current liabilitiesAccounts payable80 - 221Other current liabilities to group companies6 000 - 4 000Other current non-financial liabilities- - 447Total current liabilities6 080 - 4 668TOTAL EQUITY AND LIABILITIES158 291 156 980 158 297 30 Jun
Page 24
Terranor Group Interim Report January – June 2026| 24 Statement of changes in equity, parent company Restricted equityAmounts in kSEKShare capitalShare premium reserveRetained earningsincluding profit forthe period Total equityOpening balance 2026-04-0120 000 136 980 -4 200 152 780Profit/ loss for the period- - 29 43029 430Other comprehensive income- - - -Total comprehensive income- - 29 430 29 430Transactions with shareholdersDividend- -30 000 - -30 000Total - -30 000 - -30 000Closing balance 2026-06-30 20 000 106 980 25 231 152 211Restricted equityAmounts in kSEKShare capitalShare premium reserveRetained earningsincluding profit forthe period Total equityOpening balance 2025-04-01500 - - 500Profit/ loss for the period- - --Other comprehensive income- - - -Total comprehensive income- - - -Transactions with shareholdersNew share issue19 500 136 980 - 156 480Total 19 500 136 980 - 156 480Closing balance 2025-06-30 20 000 136 980 - 156 980 Unrestricted equityEquity attributable to shareholders of the parent companyEquity attributable to shareholders of the parent companyUnrestricted equityRestricted equityAmounts in kSEKShare capitalShare premium reserveRetained earningsincluding profit forthe period Total equityOpening balance 2026-01-0120 000 136 980 -3 351 153 629-Profit/ loss for the period- - 28 58128 581Other comprehensive income- - - -Total comprehensive income- - 28 581 28 581Transactions with shareholdersDividend- -30 000 --30 000Total- -30 000 - -30 000Closing balance 2026-06-3020 000 106 980 25 231 152 211Restricted equityAmounts in kSEKShare capitalShare premium reserveRetained earningsincluding profit forthe period Total equityOpening balance 2025-03-26500 - - 500Profit/ loss for the period- - --Other comprehensive income- - - -Total comprehensive income- - - -Transactions with shareholdersContribution-in-kind19 500 136 980 - 156 480Total19 500 136 980 - 156 480Closing balance 2025-06-3020 000 136 980 - 156 980 Unrestricted equityEquity attributable to shareholders of the parent companyUnrestricted equity Equity attributable to shareholders of the parent company
Page 25
Terranor Group Interim Report January – June 2026| 25 Restricted equityAmounts in kSEKShare capitalShare premium reserveRetained earningsincluding profit forthe period Total equityOpening balance 2025-03-26500 - - 500Profit/ loss for the period- - -3 351-3 351Other comprehensive income- - - -Total comprehensive income- - -3 351 -3 351Transactions with shareholdersContribution-in-kind19 500 136 980 - 156 480Total19 500 136 980 - 156 480Closing balance 2025-12-3120 000 136 980 -3 351 153 629Equity attributable to shareholders of the parent companyUnrestricted equity
Page 26
Terranor Group Interim Report January – June 2026| 26 Cash flow statement, parent company Jan-DecAmounts in kSEK2026 2025 2026 2025 2025Current operationsOperating profit (EBIT)-938 - -1 787 - -4 221Adjustment for items not included in cash flow- - -226Dividend received30 000 - 30 000 - -Interest received- - - - -Interest paid- - - - -Income tax paid- - - - -Cash flow from operating activities before changesin working capital29 062 - 28 213 - -4 447Cash flow from changes in working capital- - - -Changes in operating receivables558 500 459 - -Changes in operating payables2 - 1 412 - 221Changes in working capital560 500 1 871 - 221Cash flow from operating activities29 622 500 30 084 - -4 226Apr-Jun Jan-JunJan-DecAmounts in kSEK2026 2025 2026 2025 2025Investing activitiesAcquisition of subsidiaries- - - - -Cash flow from investing activities- - - - -Financing activitiesIncrease in borrowings- - - - 4 000Dividends paid-30 000 - -30 000 - -New share issue- - - 500 500Cash flow from financing activities-30 000 - -30 000 500 4 500Cash flow for the period-378 500 84 500 275Cash and cash equivalents at the beginning of the period737 - 275 - -Cash and cash equivalents at the end of the period359 500 359 500 275Apr-Jun Jan-Jun
Page 27
Terranor Group Interim Report January – June 2026| 27 Alternative performance measures APMs Unit Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26Revenue growth (%) % 2% 12% 10%29% 23% 23%EBITDA kSEK 42 080 20 483 29 323 84 775 56 479 70 912 EBITDA margin (%) % 5.7% 2.4% 3.7%6.9% 6.2% 6.8%Adjusted EBITDAkSEK 46 562 52 034 56 511 93 938 61 773 71 665Adjusted EBITDA margin (%)% 6.3% 6.1% 7.1% 7.7% 6.8% 6.9%EBITAkSEK 7 728 -14 619 -6 492 39 086 14 549 26 488EBITA margin (%)% 1.0% -1.7% -0.8% 3.2% 1.6% 2.5%Adjusted EBITAkSEK 12 210 16 931 20 696 48 249 19 843 27 240Adjusted EBITA margin (%)% 1.7% 2.0% 2.6% 3.9% 2.2% 2.6%EBITkSEK 5 133 -17 150 -9 060 36 558 12 081 24 428EBIT margin (%)% 0.7% -2.0% -1.1% 3.0% 1.3% 2.3%Adjusted EBITkSEK 9 615 14 401 18 128 45 721 17 375 25 180Adjusted EBIT margin (%)% 1.3% 1.7% 2.3% 3.7% 1.9% 2.4%Items affecting comparability (IAC)kSEK 4 482 31 551 27 188 9 163 5 294 753Net cash/ Net debtkSEK -275 465 -357 409 -437 676 -373 240 -455 687 -558 415Net debt/LTM adjusted EBITDAx -1.26 -1.51 -1.86 -1.50 -1.72 -1.97Net working capitalkSEK 42 058 84 946 137 798 13 292 111 254 180 101Net working capital/LTM revenue %% 1.3% 2.6% 4.1% 0.4% 2.9% 4.5%Capital expenditureskSEK -3 873 -4 537 -2 180 4 055 827 17 199Adjusted operating cash flow kSEK 86 184 4 608 1 480 222 499 -35 362 20 017Cash conversion (%)%185.1% 8.9% 2.6%236.9% -57.2% 27.9%Capital employedkSEK 675 509 734 000 823 400 939 466 882 106 995 427Return on capital employed (%)% 1.9% 2.5% 2.8% 6.1% 2.4% 3.1%Return on equity (%)% -0.1% -10.1% -5.9% 3.8% 3.7% 7.5%Net debt/Equity (%)% -130.8% -184.3% -240.7% -198.1% -232.4% -308.4%Order intakekSEK 1 239 414 952 956 209 214 399 147 1 589 811* 1 253 751Order backlogkSEK 5 293 341 5 995 430 5 876 239 5 442 542 6 591 064* 7 293 709 * Order intake and order backlog for Q1 2026 have been restated and differ from the figures presented in the Q1 2026 interim report.
Page 28
Terranor Group Interim Report January – June 2026| 28 Calculation formulas for financial performance Alternative performance measure Definition Reason for use of measure Revenue growth (%) Revenue for the period compared to revenue for the comparative period. Used to show the change in revenue between periods. EBITDA Operating profit (EBIT) after reversal of depreciation, amortization and impairment losses on tangible and intangible assets and right-of-use assets. Used to measure operating profitability excluding depreciation, amortization and impairment. Complementary to assessing the operating performance of the business. EBITDA margin (%) EBITDA as a percentage of revenue. Used to measure the development of the profitability ratio from operating activities excluding depreciation, amortization and impairment. Adjusted EBITDA EBITDA adjusted for items affecting comparability. Used to measure the profitability of operating activities (excluding depreciation, amortization and impairment) without the impact of items affecting comparability between periods. Complementary to assessing the adjusted operating profit of the business. Adjusted EBITDA margin (%) Adjusted EBITDA as a percentage of revenue. Used to measure the development of the profitability ratio from operating activities excluding depreciation, amortization and impairment losses without the impact of items affecting comparability between periods. EBITA Operating profit (EBIT) after reversal of amortization and impairment of intangible assets related to business combinations. Used to measure operating profitability excluding amortization and impairment of acquisition-related intangible assets. Complementary to assessing the operating performance of the business. EBITA margin (%) EBITA as a percentage of revenue. Used to measure the development of the profitability ratio from operating activities excluding amortization and impairment losses from acquisition-related intangible assets. Adjusted EBITA EBITA adjusted for items affecting comparability. Used to measure profitability from operating activities, excluding amortization and impairment of acquisition-related intangible assets without the impact of items affecting comparability between periods. Complementary to assessing the adjusted operating profit of the business. Adjusted EBITA margin (%) Adjusted EBITA as a percentage of revenue. Used to measure the development of the profitability ratio from operating activities, excluding amortization and impairment losses from acquisition-related intangible assets, without the impact of items affecting comparability between periods. Operating profit (EBIT) Profit for the period after adding back tax on profit for the period and financial expenses and deducting financial income. Used to measure operational profitability. Operating margin (%) Operating profit as a percentage of revenue. Used to show the operational profitability ratio. Adjusted EBIT EBIT adjusted for items affecting comparability. Used to measure operating profitability without the impact of items affecting comparability between periods. Adjusted EBIT margin (%) Adjusted EBIT as a percentage of revenue. Used to show the operating profitability ratio without the impact of items affecting comparability between periods. Items affecting comparability Refers to events that are material in nature and considered important to specify because they are considered to affect comparability between periods. Used to provide users of the financial statements with an understanding of the Company’s performance between periods without the impact of items considered to affect comparability between periods. Net cash (+) / Net debt (-) Refers to non-current and current liabilities to credit institutions, non-current other interest-bearing liabilities, non-current and current lease liabilities less cash and cash equivalents. Used to monitor the evolution of debt and the size of refinancing needs. As cash can be used to pay off debt at short notice, net debt is used as a measure of total debt financing. Net debt / adjusted EBITDA ratio, rolling twelve months Net debt divided by adjusted EBITDA rolling 12 months. Used to demonstrate the Group’s ability to repay its financial liabilities related to its operating activities.
Page 29
Terranor Group Interim Report January – June 2026| 29 Working capital Current assets consist of current tax receivables (included in other current receivables) and cash and cash equivalents, less current liabilities excluding current tax liabilities, current liabilities to credit institutions, current lease liabilities, and current provisions. Used to measure the current financial status of the Group. Working capital / revenue rolling twelve months (%) Working capital as a percentage of revenue rolling 12 months. Used to show the Group’s working capital over time. Investment in tangible and intangible assets Expenditure on acquisitions and investments in the Group’s tangible and intangible assets. Used as a measure of the Group’s historical capital expenditure and used as an input to calculate Adjusted operating cash flow and Cash generation. Adjusted operating cash flow Adjusted EBITDA less investments in tangible and intangible assets adjusted for changes in inventories, accounts receivable, other current receivables (excluding current tax receivables), accounts payable, other current liabilities, and accrued expenses and prepaid income. Used to show the underlying cash flow generated from the adjusted operating activities. Cash generation (%) Adjusted operating cash flow in relation to adjusted EBITDA. Used to indicate the ratio of operating profitability from the business without the impact of items affecting comparability between periods, converted to cash flow. Capital employed Total assets excluding goodwill and other intangible assets related to operating activities, less non-interest-bearing liabilities and deferred tax liabilities. Non-interest-bearing liabilities comprise other non-current liabilities, current tax liabilities, other current liabilities, accrued expenses and prepaid income and provisions. Used as a measure to show the Group’s capital tied up in operations used to generate revenue. Average capital employed Average capital employed refers to the average of the capital employed for the current quarter and the capital employed for the previous four quarters. Used to understand the Group’s return on capital employed, taking into account an average of capital employed. Return on capital employed (%) Adjusted EBITA as a percentage of average capital employed. Used to understand how well the company uses its capital to generate returns. Average equity Average equity refers to the average of closing equity for the current quarter and closing equity for the previous four quarters. Used to understand the Group’s return on equity, taking into account an average of equity. Return on equity (%) Profit for the period as a percentage of average equity. Used to measure how effectively shareholders’ invested capital is generating returns. Net debt/equity ratio (%) Represents net debt as a percentage of equity. Used to show the relationship between debt and equity. Order intake Value of projects obtained, excluding changes in existing projects during the current period. Order intake provides an indication of revenue development in the short to medium term. Order backlog The value at the end of the period of the remaining unearned project income in pending assignments. The order backlog provides a further indication of the short to medium-term development of revenue.
Page 30
Terranor Group Interim Report January – June 2026| 30 Reconciliations of APMs Reconciliation of APMs Unit Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26Revenue growth (%)Revenue current periodkSEK 736 012 848 969 794 425 1 223 216 904 825 1 041 371Revenue last periodkSEK 721 264 755 795 722 689 947 180 736 012 848 969Revenue growth (%)% 2% 12% 10% 29% 23% 23%EBITDAOperating profit (EBIT)kSEK 5 133 -17 150 -9 060 36 558 12 081 24 428Depreciation & amortization related to intangible assets, tangible assets and right-of-use assetskSEK 36 947 37 633 38 383 48 217 44 398 46 485Impairment related to intangible assets, tangible assets and right-of-use assetskSEK - - - - - -EBITDAkSEK 42 080 20 483 29 323 84 775 56 479 70 912EBITDA margin, %EBITDAkSEK 42 080 20 483 29 323 84 775 56 479 70 912RevenuekSEK 736 012 848 969 794 425 1 223 216 904 825 1 041 371EBITDA margin, %% 5.7% 2.4% 3.7% 6.9% 6.2% 6.8%Adjusted EBITDAEBITDAkSEK42 080 20 483 29 32384 775 56 479 70 912Items affecting comparabilitykSEK 4 482 31 551 27 188 9 163 5 294 753Adjusted EBITDAkSEK 46 562 52 034 56 511 93 938 61 773 71 665Adjusted EBITDA margin, %Adjusted EBITDAkSEK 46 562 52 034 56 511 93 938 61 773 71 665Revenue kSEK 736 012 848 969 794 425 1 223 216 904 825 1 041 371Adjusted EBITDA margin, % % 6.3% 6.1% 7.1% 7.7% 6.8% 6.9%EBITAOperating profit (EBIT) kSEK 5 133 -17 150 -9 060 36 558 12 081 24 428Amortization of intangible assets kSEK 2 595 2 531 2 568 2 528 2 468 2 060Impairment of intangible assets kSEK - - - - - -EBITA kSEK 7 728 -14 619 -6 492 39 086 14 549 26 488
Page 31
Terranor Group Interim Report January – June 2026| 31 Reconciliation of APMs Unit Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26EBITA margin, %EBITA kSEK 7 728 -14 619 -6 492 39 086 14 549 26 488Revenue kSEK 736 012 848 969 794 425 1 223 216 904 825 1 041 371EBITA margin, % % 1.0% -1.7% -0.8% 3.2% 1.6% 2.5%Adjusted EBITAEBITA kSEK 7 728 -14 619 -6 492 39 086 14 549 26 488Items affecting comparability kSEK 4 482 31 551 27 188 9 163 5 294 753Adjusted EBITA kSEK 12 210 16 931 20 696 48 249 19 843 27 240Adjusted EBITA margin, %Adjusted EBITA kSEK 12 210 16 931 20 696 48 249 19 843 27 240Revenue kSEK 736 012 848 969 794 425 1 223 216 904 825 1 041 371Adjusted EBITA margin, % % 1.7% 2.0% 2.6% 3.9% 2.2% 2.6%EBITProfit for the period kSEK -246 -19 079 -11 422 7 617 7 091 14 075Income taxes kSEK 1 317 -2 445 -2 802 21 468 -388 3 745Finance cost kSEK 4 159 4 401 5 219 7 493 5 399 6 710Finance income kSEK -96 -27 -55 -20 -22 -103EBIT kSEK 5 133 -17 150 -9 060 36 558 12 081 24 428EBIT margin, %EBIT kSEK 5 133 -17 150 -9 060 36 558 12 081 24 428Revenue kSEK 736 012 848 969 794 425 1 223 216 904 825 1 041 371EBIT margin, % % 0.7% -2.0% -1.1% 3.0% 1.3% 2.3%Adjusted EBITEBIT kSEK 5 133 -17 150 -9 060 36 558 12 081 24 428Items affecting comparability kSEK 4 482 31 551 27 188 9 163 5 294 753Adjusted EBIT kSEK 9 615 14 401 18 128 45 721 17 375 25 180
Page 32
Terranor Group Interim Report January – June 2026| 32 Reconciliation of APMs Unit Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26Adjusted EBIT margin, %Adjusted EBIT kSEK 9 615 14 401 18 128 45 721 17 375 25 180Revenue kSEK 736 012 848 969 794 425 1 223 216 904 825 1 041 371Adjusted EBIT margin, % % 1.3% 1.7% 2.3% 3.7% 1.9% 2.4%Items affecting comparabilityRestructuring costs and one-off expenses kSEK 4 482 31 551 27 188 9 163 5 294 753Items affecting comparability kSEK 4 482 31 551 27 188 9 163 5 294 753Net cash (+)/ Net debt (-)Non-current liabilities to credit institutions kSEK 20 411 20 308 16 091 15 561 14 648 13 786Current liabilities to credit institutions kSEK 42 545 69 365 132 196 32 801 67 595 138 771Non-current Lease liabilities kSEK 172 331 187 785 199 861 270 589 273 546 292 039Current Lease liabilities kSEK 100 769 102 749 107 306 131 024 132 575 137 087Less: Cash and cash equivalents kSEK -60 590 -22 797 -17 779 -76 734 -32 676 -23 268Net cash (+)/ Net debt (-) kSEK -275 465 -357 409 -437 676 -373 240 -455 687 -558 415Net debt/LTM Adjusted EBITDANet debt kSEK -275 465 -357 409 -437 676 -373 240 -455 687 -558 415LTM Adjusted EBITDA kSEK 218 487 237 221 234 732 249 045 264 256 283 887Net debt/LTM Adjusted EBITDA x -1.26 -1.51 -1.86 -1.50 -1.72 -1.97Net working capitalCurrent assets kSEK 545 954 621 204 678 863 760 530 655 310 800 505Less: Cash and cash equivalents kSEK -60 590 -22 797 -17 779 -76 734 -32 676 -23 268Less: Income tax receivable kSEK -10 537 -15 005 -18 382 -20 444 -18 857 -23 838Current liabilities kSEK -583 009 -677 607 -752 073 -820 444 -704 997 -861 979Less: Income tax payable kSEK 6 172 6 284 6 162 5 806 11 550 12 069Less: Current liabilities to credit institutions kSEK 42 545 69 365 132 196 32 801 67 595 138 771Less: Current lease liabilities kSEK 100 769 102 749 107 306 131 024 132 575 137 087Less: Current provisions kSEK 754 754 1 504 754 754 754Net working capital kSEK 42 058 84 946 137 798 13 292 111 254 180 101Net working capital/LTM revenue %Net working capital kSEK 42 058 84 946 137 798 13 292 111 254 180 101LTM revenue kSEK 3 161 676 3 254 849 3 326 585 3 602 622 3 771 435 3 963 837Net working capital/LTM revenue % % 1.3% 2.6% 4.1% 0.4% 2.9% 4.5%
Page 33
Terranor Group Interim Report January – June 2026| 33 Reconciliation of APMs Unit Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26Capital expendituresInvestments in property, plant and equipment kSEK -3 873 -4 537 -2 180 4 055 1 331 17 375Investments in intangible assets kSEK 0 0 0 0 -504 -176Capital expenditures kSEK -3 873 -4 537 -2 180 4 055 827 17 199Adjusted operating cash flowAdjusted EBITDA kSEK 46 562 52 034 56 511 93 938 61 773 71 665Investments in property, plant and equipment kSEK -3 873 -4 537 -2 180 4 055 1 331 17 375Investments in intangible assets kSEK 0 0 0 0 -504 -176Changes in net working capital kSEK 43 496 -42 889 -52 851 124 506 -97 962 -68 847Adjusted operating cash flow kSEK 86 184 4 608 1 480 222 499 -35 362 20 017Cash conversion %Adjusted operating cash flow kSEK 86 184 4 608 1 480 222 499 -35 362 20 017Adjusted EBITDA kSEK 46 562 52 034 56 511 93 938 61 773 71 665Cash conversion % % 185.1% 8.9% 2.6% 236.9% -57.2% 27.9%Capital employedTotal assets kSEK 1 000 716 1 094 232 1 163 040 1 312 853 1 205 708 1 364 849Less: Goodwill kSEK 18 626 18 626 18 626 18 626 18 626 18 626Less: Other intangible assets kSEK 26 401 25 666 23 971 18 827 17 024 15 338Less: Non-interest bearing liabilities kSEK 270 443 306 582 288 282 325 080 277 941 321 095Less: Deferred tax liabilities kSEK 9 736 9 357 8 760 10 855 10 011 14 363Capital employed kSEK 675 509 734 000 823 400 939 466 882 106 995 427Return on capital employedAdjusted EBITA kSEK 12 210 16 931 20 696 48 249 19 843 27 240Average capital employed kSEK 657 865 687 970 739 942 789 788 810 896 874 880Return on capital employed % 1.9% 2.5% 2.8% 6.1% 2.4% 3.1%Return on equity, %Profit for the period kSEK -246 -19 079 -11 422 7 617 7 091 14 075Average equity kSEK 180 296 188 225 194 606 198 210 194 178 188 256Return on equity, % % -0.1% -10.1% -5.9% 3.8% 3.7% 7.5%Net debt/EquityNet debt kSEK -275 465 -357 409 -437 676 -373 240 -455 687 -558 415Equity kSEK 210 680 193 971 181 812 188 384 196 045 181 066Net debt/Equity, % % -130.8% -184.3% -240.7% -198.1% -232.4% -308.4%
Page 34
Terranor Group Interim Report January – June 2026| 34 Terranor Group The Board of Directors and the CEO certify that the interim report gives a true and fair view of the Parent Company’s and Group’s operations, financial position, and results of operations, and describes material risks and uncertainties facing the Parent Company and the companies included in the Group. This report has not been reviewed by the Company’s auditors. Stockholm, 25 August, 2026 Terranor Group AB (publ.) Anders Gustafsson Chairman of the board Håkan Broman Board member Åse Lagerqvist von Uthmann Board member Ole Gabriel Ueland Board member Michael Berglin CEO Carl Kistenmacher Board member
Page 35
Terranor Group Interim Report January – June 2026| 35 Financial calendar Interim report for the period July-September 2026, Q3 10 November 2026 Interim report for the period October-December 2026, Q4 16 February 2027 Contact Inka Kontturi Investor relations 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). Terranor’s Certified Adviser is DNB Carnegie Investment Bank AB. www.dnbcarnegie.se Björnstigen 85 170 73 Solna Sweden info@terranor.se