Interim report January - March 2026

"We enter the remainder of the year with a strong contract base and continued focus on execution, operational discipline and profitability. The outcome of the tender season in Sweden provides a solid foundation for future activity, while our overall strategy remains unchanged"

First quarter 2026            

• Revenue growth amounted to 23 percent (2)
• Adjusted EBITA increased to 19.8 MSEK (12.2)
• Adjusted operating cash flow decreased to -35.4 MSEK (86.2)
• Revenue increased to 904.8 MSEK (736.0)
• EBITA increased to 14.5 MSEK (7.7)
• Operating profit (EBIT) amounted to 12.1 MSEK (5.1)
• Profit for the quarter increased to 7.1 MSEK (-0.2)
• Earnings per share amounted to 0.35 SEK (-0.01)
• Order book increased to 6 302.9 MSEK (5 293.3)

CEO Comment

Improved profitability and record-high order backlog
The first quarter was characterized by a more intense winter season compared to last year, with proper winter conditions across all our markets, including Denmark and southern Sweden. This contributed to higher activity levels and revenue growth, while profitability developed in line with the seasonal pattern of the business, where winter activities typically carry lower margins than summer operations. Cash flow was also impacted by the high level of winter activity, as subcontractor costs are incurred during the period while payments follow with some delay, which is in line with the normal seasonal pattern.

We operate in a stable market supported by long-term structural drivers, including increasing traffic volumes, ageing infrastructure and growing requirements for maintenance and climate adaptation. Recent developments in the national infrastructure plan in Sweden further reinforce this direction, with record-high investment levels and SEK 354 billion earmarked for road operation and maintenance, representing a 53% increase compared to the previous national plan, supporting continued demand for our services.

Sweden - disciplined tendering and strong performance
During the quarter, we completed the Swedish tender season for road operation and maintenance contracts. The Swedish market is characterized by a structured and recurring tender cycle, where contracts typically run for four years. This creates a predictable environment with continuous competition. Terranor was awarded a total of six contracts representing a total value of approximately SEK 1.64 billion, which corresponds to an expected annual revenue of at least SEK 366 million. This represents 31% of the total contract volume awarded in Sweden, significantly outperforming our current market share. This combined with a successful tender season in Finland led to a backlog increase to an all-time high of SEK 6.3 billion, confirming our ability to combine broad market participation with disciplined contract selection.

Our approach to tendering remains consistent. We participate across the market, enabled by our flexible national operating platform. At the same time, we maintain strict pricing discipline and focus on contracts where we can combine operational quality with sustainable profitability.

A key priority is to build clusters of contracts in high-traffic areas and along major transport corridors. By increasing geographic density and operating on larger, traffic-intensive road networks, we improve operational efficiency, resource utilization and responsiveness. During the tender season, we continued to strengthen such clusters, particularly along key traffic corridors in northern and central Sweden, creating more connected operations and improving efficiency and resource utilization. This strengthens the foundation for continued operational performance going forward.

Operationally, the quarter was characterized by the more intense winter season. We have continued to develop our operating model to manage fluctuations in winter volumes more efficiently. This strengthens our ability to handle periods of high activity while maintaining control over costs and execution.

Finland - continued selectivity
In Finland, we remain disciplined and selective in our bidding. Compared to last year's tender season, where no contracts were secured, we have this year won two contracts, including one where we successfully defended an existing position and one adjacent contract. While growth in Finland is more moderate, this reflects a conscious decision to prioritize profitability, in a market that continues to be characterized by intense competition, pricing pressure and limited investment appetite. We continue to take measures to strengthen the business and see these efforts gradually building a more stable foundation over time. As reported earlier we have taken an active standpoint to resolve our valid claims for contracts taken in 2022 and 2023. Although no decisive resolution has been met in the period, we remain confident that our position is strong and that an amicable solution is perceived mutually beneficiary for all parties.

Denmark - solid start with temporary seasonal impact
In Denmark, we have started the year with four new contracts. The winter conditions have limited the execution of our contracted activities, but we are very satisfied with a successful operational set-up of the new contracts, providing good conditions for the summer season ahead.

Solid foundation and resilient outlook
We enter the remainder of the year with a strong contract base and continued focus on execution, operational discipline and profitability. The outcome of the tender season in Sweden provides a solid foundation for future activity, while our overall strategy remains unchanged. Following the quarter, we also secured significant contracts in Väsby, Southeast Värmland and Gothenburg, corresponding to a total contract value of SEK 661 million.

We continuously monitor input cost developments, including fuel and materials. Based on our analysis, we assess that the Group has a good level of protection through contractual indexation mechanisms, and we assess that the Group is resilient to current cost developments.

Our focus remains on delivering high-quality operations and continuously improving efficiency across the business. Combined with our disciplined approach to tendering, this positions us well for continued development and gradual improvement in profitability.

I would first of all like to thank all our employees, for their commitment and professionalism. Their efforts ensure safe and accessible roads across the Nordic region and form the foundation of Terranor's continued development. My gratitude and appreciation also towards clients and shareholders for the trust and confidence in the joint journey ahead of us.

CEO Terranor Group
Michael Berglin

Investor presentation
Terranor Group will host a live investor presentation on 12 May at 09:30 CEST.
CEO Michael Berglin and CFO Inka Kontturi will present the company's Q1 2026 results.

Link for registration: https://qcnl.tv/p/emczYjSvAwpY6l470xT_ew

Capital Markets Day 2026
Terranor Group welcomes investors, analysts and media to its Capital Markets Day on Tuesday 26 May 2026 in Stockholm.

Link for registration: https://qcnl.tv/p/t9hdiDjk5g07sP8cl49vTA

For further information, please contact:
Inka Kontturi, CFO and Head of Investor Relations
Email: ir@terranor.se

The information is such that Terranor Group is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 12 May 2026 at 08.00 (CEST).

About Terranor
Terranor is one of the leading players in road 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 maintenance, with snow removal and anti-slip protection, and summer maintenance, such as repairs and asphalt work. In addition, Terranor offers services in green area management, road safety and light infrastructure projects. Through operational efficiency, Terranor has achieved a high and profitable growth. Terranor AB's share is traded on Nasdaq First North Growth Market in Stockholm (ticker TERNOR). The Company's Certified Adviser is DNB Carnegie Investment Bank AB.