Ferronordic AB (publ)

Good morning, everybody. Thank you for your interest in Fair Nordic and welcome to our presentation of the first quarter of 2026. Moving to slide two, summarizing the quarter. We saw revenue amounting to 1.128 million Swedish krona, down 6% year-on-year, but up 6% in fixed currency. Gross margin improved to 17.7% compared to 16.3% last year. Operating profit more than doubled to 37 million kronor. EBITDA increased 49% to 124 million and net profit improved to 32 million kronor supported by currency exchange gain and lower finance costs. Net debt at the end of the quarter amounted to 1.957 million Swedish krona up versus last year related to the integration of the house business that was acquired in January and seasonal inventory and rental fleet buildup. Looking at the operations and the quarter from a group perspective, we saw clearly stronger earnings during the quarter compared to last year and continued progress. Activity was fairly good and improved through the quarter and then accelerated in March with good trajectory. Our efforts to increase or improve the aftermarket business and work with operational improvements and broader use of technology and data across the group are starting to show. At the same time, we see significant untapped potential within our existing operations and our existing geographies. And continuing these improvements will be the focus going forward. At the same time, we do evaluate selective Bolton acquisitions. Revenue, I said, was down in Swedish krona 6% to 1.128 million krona. But in fixed currency, it was up 6%, mainly then reflecting the weakening of the dollar year on year. Operating profit more than doubled, I said, to 37 million, supported by continuously strong performance in the United States, positive operating earnings from Germany, and good cost control across the group. EBITDA increased by 49% to 124 million. Net profit improved to 32 million kronor, supported by FX gain and lower financing costs. And I said that the net debt increased following the integration of Housebee and seasonal inventory and rental fleet build up as we prepare for the season to come. So all in all, revenue up 6% of fixed currency basis, positive earnings in Germany and net profit improved 32 million kronor. Looking at the U.S., We saw strong demand in our territory supported by continuous investments in infrastructure and increasing amount of projects related to data centers. The market in our territory was up 12% year on year. Now that includes dealer additions to rental fleets and not sold units, but still a sign that players in the market are positive. We see AI-related investments becoming a major driver of construction activity and equipment demand. Tariffs continue to cause some uncertainty and manufacturers are gradually increasing prices to cover increased costs, but we haven't seen this material affecting the market activity. So in US dollars, sales increased by 16%. with equipment sales up 13%, aftermarket sales up 10% and rental sales up as much as 92%. Gross margin reached 17.5 versus 17.7 last year in line with seasonal patterns. Underlying margins were stable and we managed well to defend our margins. Operating profit reached 47 million, more or less the same as last year in Swedish krona, but up 15% in local currency. EBITDA improved to 112 million, so up 38% in local currency. driven by strong rental activity that has a bigger impact on EBITDA than EBIT as a large part of the rental revenue is going to depreciation. So comforting results in the US, continued strong performance. At the same time, we still see good opportunities to increase market share and aftermarket penetration. We continue the rollout of our new CRM. We are relaunching the automatic lead generation and we are working to expand the rental fleet to gain market share and grow the business. We also successfully integrated the house business in Iowa into the rod operations. This is something we talked about when we reported the Q4, but the Iowa territory corresponds to roughly 10% of the market we covered in the RAD legacy operations. It's a very interesting geography, a lot of activity relating to data centers there as well. And all the time we expect Iowa to reach the same profitability as our other US branches. All in all, revenue in the US up 16% in dollars, EBITDA increased 38% in US dollars, and we had an operating result of 47 million kronor. Going to the next slide, looking at Germany, our efforts to improve the aftermarket business and reduce costs are starting to show results. As a result, we saw positive EBIT in Germany of 4 million kroner despite a continuously weak market. Registrations in our territory nevertheless increased by 3%, and the gradual market recovery seen in previous quarters continued, but at a moderate rate. Increased fuel prices do make customers more cautious and are affecting the German economy in general, but the recovery nevertheless continues. More important from an earnings perspective is that the existing fleets remain active, supporting continued demand for service and parts, and also making sure that fleet renewals will be needed at some point or another. Sales in Germany amounted to 337 million, so lower than last year, mainly due to truck deliveries that were postponed from Q1 to Q2 and the high comparison base last year. Aftermarket sales increased by 6% in Euro, supported by higher productivity and good pricing. Gross margin then improved correspondingly to 18.2%, while gross profit increased by 9% to 61 million. And following the cost reductions we implemented last year, SG&A decreased by 14%. And as a result, we saw EBITDA improving over 100%, and we reached positive EBIT in Germany. Looking at Kazakhstan, we saw sales amounting to 32 million kronor, lower equipment sales, but relatively stable aftermarket operations. Margin improved to 16% and the operations will broadly break even. After having reduced older inventory during last year, we are now rebuilding inventory in Kazakhstan again, in line with the current demand. Our focus remains on operational improvements and continued customer development. So with that I hand over to you Erik.

Thank you very much Henrik. I pick up with a little bit more detail on the income statement and the performance across the segments. Starting where you left off or where you started actually, total revenue 1.1 billion, down six percent in Swedish krona but fixed currency basis we were up six percent and just to be clear that what we're doing is then leaving the foreign exchange rates as they were in the comparative quarter, meaning in the first quarter of 2025 when we convert the segment currencies of this quarter, first quarter 2026. If we look at the mix of revenue between the segments, 67% US, so two thirds more or less exactly, 30% Germany and only 3% Kazakhstan at its current level. But we do see a lot more potential there as we do in other segments also. When it comes to the revenue mix, important for the gross margin, that's to a large extent driven by the revenue mix, but also the product mix within equipment sales. We were at 53% of sales of equipment and trucks. That includes both new and used and also conversions from the rental fleet in the United States. If we compare that a year ago, that was higher, 57%. Aftermarket, so this is service and parts, the maintenance work we do. such a big focus area of the work that we do as a company, that was at 39% a little bit higher than a year ago, it was at 37% in the comparative period in 2025, and then 8% rental. Gross margin improved, and that's mainly driven by the meaningfully higher gross margins in Germany and Kazakhstan, which, as it were, were to a big extent driven by that revenue mix that I referred to in those two segments. SG&A, so our overheads and operating expenses were down 11% to 173 million Swedish. And as a percent of revenue, which is an important KPI for us to track, it decreased to 15.3% from 16.2% last year. That reflects both some of the cost cutting that we have been doing and initiatives to rein in on costs and to some extent also foreign exchange effects. Operating margin increased to 3.2% from 1.1 and the operating profit increased from 13 to 37 million, following strong performance in US and Germany. especially the biggest delta compared to last year would be the improvement in Germany and also a reduction in group costs as we'll see in a subsequent slide. Net profit increased to 32 million, some help there also from exchange effects and also lower financing costs. Moving on to the balance sheet, we have a bigger property plant and equipment year on year, and that's mainly reflecting the seasonal buildup of rental fleet in the United States. If we look at the United States specifically and its working capital, and then look quarter on quarter, so not year on year, but we compare it to Q4 of 2025, then we do see an increase, and that's related mainly to the acquisition of Hauspy, which was completed at the end of January, so in this first quarter of 2026. and also the aforementioned seasonal build-up of inventory that Henrik has referred to. In Germany, Working capital also increased quarter on quarter from six to 13% of last 12 months revenue. They're more temporary factors. We had some truck deliveries to clients postponed from first quarter to second quarter and are confident that they will come through in the second quarter and that working capital will then. come down in Germany. In Kazakhstan, a picture also, if you remember last year, for those that follow us, we cleaned out old stock from our inventory. We've been now ordering new inventory with high demand in the local market. And as that being delivered, We see a build-up in the working capital while the market itself was quite slow in the first quarter. So an increase in working capital that we expect to come down as those machines are sold to customers. going forward. Net debt, as a result of these factors, but also to some extent currency effects, was up quarter on quarter to 2 billion Swedish krona, again reflecting that increase quarter on quarter in working capital, but also quarter on quarter the currency worked against us year on year. It was the opposite effect, but over the course that the Swedish krona weakened. Equity to assets decreased quarter on quarter. It was flat year on year. So also capturing some of those dynamics on the balance sheet. Looking at the key drivers or again delta year on year. We see starting from last year's EBIT performance at 13. Again, a strong performance in the US, but close to where it was last year, whereas Germany picked up from minus nine to plus four so a big delta there big improvement Kazakhstan roughly where it was and then we also had to your far right there cost savings mainly on personnel and travel in HQ so group costs coming down leading to that overall improvement in our operating profit performance Moving to looking at on a quarter on quarter basis as well. Here we see them after a very strong finish in the US, a decline, whereas in Germany, We had some one-off costs related to those cost savings that we now see fruits from in this year. So a big improvement quarter on quarter. Whereas Kazakhstan, again, less of a delta there. and again some difference in the headquarter performance there also driven by some of the adjustments of provisions that we had in HQ. With that I move over to next slide which gives our traditional overview or a balance sheet So you'll see that the big assets on our balance sheet, starting from the left, you have a real estate that's both owned properties, that is our workshops, and the least in IFRS 16. And then the biggest item being our rental feeds, mainly in the US, the red part of that bar, but also in Germany, in Germany capturing both diesel and electric trucks. And I would then jump all the way to the inventories. There being a big piece on the balance sheet, again, biggest in the US reflecting the bigger scale of those operations and also in Germany. And then we have the trade and receivables outstanding from customers. And quickly on the liability side of the balance sheet, we have the trade and payables being the interest-free part of the balance sheet and then the bank loans. And thirdly, the big item would be the supplier financing that we have for our both inventory and rental fleet arrangements. So with that, we get to our NIV at 1.4 billion Swedish, which translates into about 93 Swedish kronor per share. Moving over to our financial objectives where we stand with regards to revenue we are at 0.92 partly affected there by currency development since we set these targets and especially then of course the dollar which has weakened against the Swedish krona. Operating margin last 12 months at 2.2. So reminded that we reached 3.2 in the quarter, but this being failing last 12 months, standing at 2.2. net debt EBITDA at the 3.8 up from 3.4 in the previous quarter for the reasons that we have looked at in this presentation. So mainly house and seasonal build up of inventory and rental fleets. And with that Henrik I pass back to you for an outlook before we hand over for questions.

Thank you Erik. So we are optimistic about the US operations and the market environment ahead. I said earlier infrastructure spending remains at a high level across our territory. The need to repair roads and develop infrastructure, bridges and so on continues at the same pace as last year. At the same time we see that this is increasingly complemented by large-scale data center investments. The scale of planned IE-related investments in the US, be it data centers or semiconductor factories, is really unprecedented. We have several projects within our territory that are expected to support construction activity and equipment demand for several years to come. The customer order books, they are solid and underlying demand is robust. Now we have Housebee integrated and we continue to invest in rental, CRM and lead generation. And with that, we are well prepared to take more market share, increase our aftermarket penetration and that way improve our operational leverage in the US further. In Germany, we expect the recovery in the market to continue as fleet renewal needs continue to build despite higher fuel prices linked to the conflict in the Middle East that add uncertainty. Importantly, demand for service and parts remain strong. And as new truck sales improve, that demand for service and parts should grow further. So with a lower cost base in Germany, a better aftermarket business, and still with an organization that is able to handle larger volumes, we are well positioned for higher sales and improved operational leverage in Germany too, as the market normalizes. In Kazakhstan, we see good opportunities, particularly in mining and road construction. We have a new management in place and focus on improved operational execution. And in Kazakhstan too, we are very well positioned to grow revenue and profitability over time. That concludes our presentation. Thank you.