engcon’s interim report Q4 2025

Fourth quarter 2025

• Order intake increased 7 per cent to SEK 539 million (506); organic order growth was 12 per cent.
• Net sales increased 27 per cent to SEK 498 million (393); organic net sales growth was 34 per cent.
• Operating profit increased 15 per cent to SEK 72 million (63) and the operating margin was 14.5 per cent (16.0).
• Profit for the quarter decreased 11 per cent to SEK 48 million (54).
• Basic and diluted earnings per share amounted to SEK 0.32 (0.35) and SEK 0.32 (0.35), respectively.

January – December 2025

• Order intake increased 15 per cent to SEK 1,981 million (1,716); organic order growth was 20 per cent.
• Net sales increased 15 per cent to SEK 1,889 million (1,649); organic net sales growth was 18 per cent.
• Operating profit increased 9 per cent to SEK 321 million (295) and the operating margin was 17.0 per cent (17.9).
• Profit for the period declined 3 per cent to SEK 223 million (229).
• Basic and diluted earnings per share amounted to SEK 1.44 (1.42) and SEK 1.43 (1.42), respectively.
• The Board of Directors proposes a dividend of SEK 1.00 (1.00) per share.

CEO Krister Blomgren comments:

“The fourth quarter was dominated by strong growth with support from all regions. Net sales in the quarter amounted to SEK 498 million (393), an organic year-on-year increase of 34 per cent. Order intake increased organically by 12 per cent - from SEK 506 million to SEK 539 million - with primarily the Swedish market performing well, through a significant share of pre-orders.

Cash flow was lower than in the previous year, mainly due to higher inventory levels. The inventory build-up was carried out to support the expected increase in sales during the spring and cash flow is expected to improve in the coming quarters.

The gross margin amounted to 40 per cent (43), mainly burdened by negative currency effects and a less favourable market mix. The operating margin amounted to 15 per cent (16) and was slightly weaker then the previous year, impacted by the lower gross margin, a strengthened SEK and increased administrative costs related to IT and legal services.

Demand for our products continued to develop positively despite a year marked by significant geopolitical uncertainty, with factors such as “Liberation Day” and US tariffs dampening investment willingness. In this challenging environment, engcon demonstrated resilience and generated growth in all regions. Net sales for the full year increased organically by 18 per cent, driven by strong demand in the Nordic region. Order intake reflected increased demand and grew organically by 20 per cent. The gross margin amounted to 42 per cent (44) despite the impact of a strong SEK, and the year concluded with an operating profit of SEK 321 million (295), corresponding to an operating margin of 17 per cent (18).

Profitability is below our targets, which is not satisfactory. We are therefore taking measures to ensure continued profitable growth with a focus on business-strategic priorities, price and product packaging as well as strengthened cost discipline.”

Q4 presentation today at 10.00 CET
The report will be presented by Krister Blomgren, CEO and Marcus Asplund, CFO at 10.00 a.m. CET today at a webcasted telephone conference accessible via this link:
https://engcon.events.inderes.com/q4-report-2025

To access the teleconference, and thereby be able to ask questions, please register via the link below. After registration, you will be provided phone numbers and a conference ID to log in.
https://events.inderes.com/engcon/q4-report-2025/dial-in

The presentation material and a recorded version of the conference will be available at
https://www.engcongroup.com/report/q4-2025/

For more information, please contact:
Krister Blomgren, CEO
krister.blomgren@engcon.com
+46 70 529 92 65

Anne Vågström, Head of Investor Relations
anne.vagstrom@engcon.se
+46 76 126 40 84

engcon is the leading global supplier of tiltrotators and associated equipment that enhance efficiency, flexibility, profitability, safety and sustainability of excavators. With knowledge, commitment and a high level of service, engcon's about 450 employees create success for their customers. engcon was founded in 1990, headquartered in Strömsund, Sweden and address the market through 15 local sales companies and an established network of resellers around the world. Net sales amounted to approximately SEK 1.9 billion in 2025. engcon’s B share is listed on Nasdaq Stockholm.

For more information, visit www.engcongroup.com