Continued strong growth and improved profitability
"During the third quarter, revenue rose by 17 percent to 931 MSEK (794), while adjusted EBITA improved to 31.7 MSEK (20.7), corresponding to a margin of 3.4 percent (2.6). At the end of the quarter, our order backlog remained strong at approximately SEK 7.2 billion. With high activity in our existing contracts and seasonally lower order intake in Q3, the backlog decreased slightly from the second quarter, while order intake increased to 337 MSEK from 209 MSEK in Q3 2025. This demonstrates our increased ability to win tenders and provides us with a solid foundation for continued growth."
Third quarter 2026
- Revenue increased to 930.7 MSEK (794.4), an increase of 17 percent (10)
- Adjusted EBITA increased to 31.7 MSEK (20.7), corresponding to an adjusted EBITA margin of 3.4 percent (2.6)
- Adjusted operating cash flow increased to 29.4 MSEK (1.5)
- EBITA increased to 31.3 MSEK (-6.5)
- Operating profit (EBIT) amounted to 30.1 MSEK (-9.1)
- Profit for the quarter increased to 18.9 MSEK (-11.4)
- Earnings per share amounted to 0.95 SEK (-0.57)
- Order backlog increased to 7 195.4 MSEK (5 876.2)
First nine months 2026
- Revenue increased to 2 876.9 MSEK (2 379.4), an increase of 21 percent (8)
- Adjusted EBITA increased to 78.8 MSEK (49.8), corresponding to an adjusted EBITA margin of 2.7 percent (2.1)
- Adjusted operating cash flow decreased to -0.2 MSEK (92.3)
- EBITA increased to 72.4 MSEK (-13.4)
- Operating profit (EBIT) amounted to 66.6 MSEK (-21.1)
- Profit for the period increased to 40.1 MSEK (-30.7)
- Earnings per share amounted to 2.00 SEK (-1.54)
- Order backlog increased to 7 195.4 MSEK (5 876.2)
| Jul-Sep | Jan-Sep | ||||||
| Amounts in kSEK | 2026 | 2025 | Δ | 2026 | 2025 | Δ | |
| Revenue | 930 656 | 794 425 | 17% | 2 876 852 | 2 379 406 | 21% | |
| Revenue growth (%) | 17% | 10% | 7 p.p | 21% | 8% | 13 p.p | |
| Items affecting comparability | 389 | 27 188 | -99% | 6 436 | 63 221 | -90% | |
| Adjusted EBITA | 31 707 | 20 696 | 53% | 78 790 | 49 837 | 58% | |
| Adjusted EBITA margin, % | 3.4% | 2.6% | 1 p.p | 2.7% | 2.1% | 1 p.p | |
| Profit before tax | 22 241 | -14 223 | 256% | 46 765 | -34 676 | 235% | |
| Earnings per share before and after dilution (SEK) | 0.95 | -0.57 | 266% | 2.00 | -1.54 | 230% | |
| Adjusted operating cash flow | 29 438 | 1 480 | 1 889% | -228 | 92 272 | -100% | |
| Net debt/LTM adj. EBITDA | -1.97x | -1.86x | -0.11x | - | - | - | |
| Order backlog | 7 195 430 | 5 876 239 | 22% | 7 195 430 | 5 876 239 | 22% | |
CEO Comment
Terranor continues to develop in line with the direction we set out at our Capital Markets Day earlier this year. During the third quarter, revenue rose by 17 percent to 931 MSEK (794), while adjusted EBITA improved to 31.7 MSEK (20.7), corresponding to a margin of 3.4 percent (2.6). At the end of the quarter, our order backlog remained strong at approximately SEK 7.2 billion. With high activity in our existing contracts and seasonally lower order intake in Q3, the backlog decreased slightly from the second quarter, while order intake increased to 337 MSEK from 209 MSEK in Q3 2025. This demonstrates our increased ability to win tenders and provides us with a solid foundation for continued growth.
The long-term outlook for our market remains favourable. The significant maintenance backlog in the road infrastructure and a growing need for long-term, effective maintenance solutions are creating structurally strong demand for our services. As a specialist in road maintenance, we have an important role to play in meeting these needs. We see an increased need for close collaboration with our customers to develop solutions that meet future requirements, while continuing to strengthen our organisation and capacity to capitalise on the opportunities the market offers.
Strong growth in Sweden with further potential for profitability
Growth is particularly strong in Sweden, where revenue rose by 26 percent compared with the corresponding quarter last year, while profitability also improved during the quarter. This trend is driven by new contracts that are gradually coming into operation, as well as by increased activity and more additional work within our existing contracts. During the quarter, we were awarded, amongst other things, an extensive framework agreement with the Swedish Transport Administration for minor road construction works, as well as new framework agreements with Alingsås Energi and Nordmaling Municipality. These agreements broaden our operations and create opportunities to capitalise on our local presence and existing organisation.
At the same time, this rapid expansion means that we are not yet fully realising the potential profitability in all our contracts. The start-up phase of new contracts requires us to establish new worksites and geographical clusters and build up local organisations. An important part of this process is developing effective collaboration with new customers, suppliers and subcontractors. We therefore see continued potential to strengthen profitability as the contracts are fine-tuned and we implement our established working methods and structures for planning and management within the local operations. The improvement is not expected to occur at a steady pace from quarter to quarter, but we are following the long-term direction we have set out.
Improved profitability in Denmark
In Denmark, revenue continued to grow while profitability improved compared with the previous year. We are continuing our efforts to fine-tune the new contracts that commenced at the start of the year. During the quarter, we rewon a four-year sweeping contract in Copenhagen worth approximately 119 MSEK, which further strengthens our position in the Danish municipal market. New contracts bring improved commercial conditions, but it takes time to establish effective working methods and adapt service delivery to the terms of the contracts. We are therefore working continuously to establish planning, management and efficiency, and we see continued opportunities for improved profitability as the contracts mature.
Operational improvements in Finland
In Finland, we are seeing continued operational improvements, while market conditions remain more challenging. Tight budgets amongst public sector customers are affecting the volume of additional work and placing high demands on cost control. Our efforts to strengthen cost control are yielding results and have helped us improve profitability compared with the previous year, although profit levels remain low. With regard to our previously announced claims for compensation linked to older government contracts, dialogue with the relevant customers is continuing. The dialogue is constructive and our aim remains to reach a solution that is reasonable for both parties.
Focus on cash flow and operational efficiency
In parallel with our growth, we are continuing to develop our internal processes and strengthen financial governance. Cash flow from operating activities amounted to 22.8 MSEK (-28.2) during the quarter, a clear improvement compared with the previous year. This development reflects, amongst other things, our determined efforts to optimise cash management and improve the planning and monitoring of our operations. Continuing to strengthen cash flow and convert our increased revenue into higher profitability are key priorities going forward.
Continued focus on profitable growth
We have a strong market position, a growing business and a clear plan for how we will continue to improve profitability. I would like to extend my sincere thanks to all our employees for their commitment and hard work, not least in connection with the launch of new contracts and our efforts to strengthen our business. I would also like to thank our customers for their close collaboration and continued confidence in our expertise. Renewed contracts and new local customer relationships underline the value of our proactive approach, local presence and specialisation. With favourable long-term market conditions and a clear focus on improving efficiency and realising the potential of our contract portfolio, I am optimistic about Terranor's continued development.
Michael Berglin
CEO, Terranor Group
Investor presentation
Terranor Group will host a live investor presentation on 10 November 2026 at 09:00 CET.
CEO Michael Berglin and CFO Inka Kontturi will present the company's Q3 2026 results.
Link for registration: https://access.dnbcarnegie.com/companies/1599/live
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 10 November 2026 at 07.00 (CET).
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 Group'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.
