Terranor Group AB (publ) today provides an update following the completion of Trafikverket's (the Swedish Transport Administration) latest procurement cycle for road operation and maintenance contracts in Sweden.
All contracts in the procurement cycle have now been awarded. Terranor had six contracts with a total initial annual revenue of SEK 251 million that expired and were retendered as of this procurement cycle. Terranor has been 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, in line with previously communicated contract announcements.
Through the awarded contracts, Terranor increases the value of its contract portfolio and continues to strengthen its geographical concentration in Sweden. The contracts are located in proximity to existing operations and cover areas with high traffic intensity, including major European routes and key transport corridors around Sweden's metropolitan areas. By focusing on large, high-traffic contracts that are closely connected geographically, Terranor enhances operational efficiency, resource utilization and service delivery.
"We are very happy with the outcome of this procurement round. It reflects our strong position in the Swedish market and our ability to deliver high-quality road maintenance services. We have also secured several contracts that we have operated in recent years, demonstrating the strength of Terranor's organization and commitment," says Michael Berglin, CEO of Terranor Group
"These contracts fit well with our existing operations and strengthen our presence in key transport corridors. Building clusters of contracts allows us to operate more efficiently and deliver consistent quality," says Per Sjöblom, Head of Sweden at Terranor.
Swedish state road operation and maintenance contracts with Trafikverket are typically structured with a duration of four years. As a result of this contract structure, approximately one quarter of the total contract portfolio is renewed through public procurement each year. This creates a recurring and predictable tender cycle.
For further information, please contact:
Inka Kontturi, CFO and Head of Investor Relations
Phone: +358 445 089 875
Email: ir@terranor.se
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.
