Regulatory press release

Railcare awarded a snow clearance contract with the Swedish Transport Administration worth SEK 355 million

Railcare AB has been awarded a contract with the Swedish Transport Administration relating to snow clearance. The contract spans a period of four years with an option to extend for 1+1 years. The contract is worth just over SEK 59 million annually, generating a total value of SEK 355 million over the entire contract period, including options.

“We are delighted to have been awarded this important contract, not only because it contributes to Railcare’s financial stability, but also because of the critical assignments we carry out - making railways more accessible, including in challenging weather conditions,” commented Mattias Remahl, CEO of Railcare.

Under the new agreement, Railcare will operate as a national resource for snow clearance at specific locations around Sweden, designated by the Swedish Transport Administration. This means that in the period from mid-November to end of March, Railcare will carry out snow clearance by providing a total of six machines, including snow melters and snow ploughs, as well as machine operators and train drivers.

Railcare has been contracted by the Swedish Transport Administration to carry out snow clearance for a number of years. However, the new agreement entails some changes compared to previous years. For example, the contract now covers an additional half month, running until the end of March. Another change involves the use of HVO100 in all machines, and locomotives used under the assignment are required to have Stage V engines and ETCS installed.

“We are delighted that the Swedish Transport Administration continues to see significant value in the snow clearance services we deliver. Our collaboration has worked very well throughout the years, generating security for both parties,” commented Daniel Bolin, Operations Manager at Railcare AB.

About Railcare Group
The railway specialist Railcare offers innovative products and services for the railway; for example, railway maintenance with self-developed machines, a locomotive workshop, special transport and machine sales projects. Our market is mainly in Scandinavia and the United Kingdom. The railway industry is in a positive development with increasing traffic volumes, extensive investment programs, developing cost-effective freight and passenger transport, and rising environmental awareness. Railcare delivers both sustainable and efficient solutions that contribute to the railway, so it can be used for the maximum number of years to come. The shares of Railcare Group AB (publ) are listed on the Small Cap list of the Nasdaq Stockholm exchange. The Group has approximately 180 employees and annual sales of approximately SEK 550 million. The company's headquarters are in Skellefteå.