Ferronordic

Earnings Release • May 15, 2025

Q1 2025: Steady despite uncertainty

Summary of the first quarter, January – March 2025 1, 2

Group

• Revenue increased by 3% to SEK 1,206m.
• Gross profit declined by 15%, partly due to revenue and product mix.
• Selling and administrative costs down, partly on cost reduction and lower sales commissions.
• Operating result decreased to SEK 13m, mainly on lower gross margin.
• Net profit decreased to SEK -150m, mainly due to exchange rate effects.
• Net debt decreased to SEK 1,826m compared to Q4 2024.
• Total equity decreased to SEK 1,372m.

USA

• Market declined by 5%.
• New unit sales and conversions from rental fleet declined by 6%.
• Revenue supported by steady service and parts sales.
• Total revenue increased by 9% to SEK 762m.
• Operating result decreased by 21% to SEK 48m.
• Operating margin of 6.3%.

Germany

• Market declined by 28%.
• New unit sales declined by 6% in units.
• Total revenue decreased by 9% to SEK 402m.
• Service and parts sales stable at -2%.
• Total inventory declined by 59% compared to Q1 2024.
• Selling and administrative costs declined by 7%.
• Operating result of SEK -9m.

Kazakhstan

• New unit sales increased to 28.
• Total revenue increased by 26% to SEK 42m.
• Operating result increased to SEK 1m.
• Operating margin increased to 3.5%.
• Total inventory declined by 68% compared to Q1 2024.

3%	13
Revenue growth	Operating profit, SEK m

1.1% Operating margin

-10.32 Earnings per share, SEK

Selected key group ratios²

SEK m (or as stated)	2025 Q1	2024 Q1	%	2024 FY
Revenue	1,206	1,172	3%	4,720
Gross profit	197	231	-15%	853
Operating profit	13	21	-35%	21
Result for the period	-150	70	-314%	-89
Earnings per share, SEK3	-10.32	4.83	-314%	-6.15
Cash flow from operations	185	124		340
Net debt (cash)	1,826	1,542		1,978
Gross margin, %	16.3%	19.7%	-3.4pp	16.5%
Operating margin, %	1.1%	1.8%	-0.7pp	0.2%
Working capital/LTM Revenue, %	17%	20%	-2.6pp	23%
Equity/total assets, %	30%	33%	-3.2pp	30%
Return on capital employed, %	1%	-2%	2.3pp	1%
Return on equity, %	-20%	-2%	-17.7pp	-6%

¹ Comparison with same period in prior year unless stated otherwise. ² In Q1 2025 certain revenue and cost items have been reclassified, with some effects on comparable numbers in Q1 2024 for revenue, gross profit, SG&A and other income. For more details on this effect, please refer to the note on p8. ³ Before dilution.

All amounts are stated in millions of SEK unless stated otherwise. Rounding differences when summing up can occur with +/- SEK 1m. In cases where an underlying number is rounded off to SEK 0m, this is written as 0. Definitions and purposes of the key ratios are presented on pages 20 to 22.

Steady despite uncertainty

During the first quarter of 2025, we saw increased uncertainty in and around our markets. Despite this, our underlying business remained relatively stable, largely thanks to our robust service and spare parts business. Our customers in the US remain optimistic about the future and in Germany we have taken measures to operate in an uncertain market.

In the US, there is speculation about the effects of new trade and fiscal policies and the risk of recession. Despite the increased uncertainty regarding tariffs, the mood among our customers in the US remains good. The need to repair roads and bridges remains high. At this point, we have not heard of any projects being cancelled or postponed. Customer order books are full and demand for materials and minerals remains high. However, dealers still have high levels of machines in inventory and in their rental fleets. During the first quarter, price competition intensified and pressure on margins increased. The US construction equipment market declined by 5% during the quarter, but this should be compared to a strong first quarter in 2024. Our sales of new equipment and sales from our rental fleet decreased by 6% in units. Revenue from our rental fleet was negatively affected by a late start to the season but improved as the season gained momentum. Service and parts sales were also affected by the late start to the season but nevertheless increased compared to the same period in 2024. Overall, sales increased by 9% but the operating profit decreased by 21% to SEK 48m compared to the very strong first quarter in 2024. The work to further develop service and sales processes continued during the quarter. In April, we launched a new CRM system that will form the basis for the implementation of our Automatic Lead Generation system in the US in the future. Investments and work on branding and marketing continued.

In Germany, the market remains challenging. Economic growth has been negative for two consecutive years. Business confidence has recovered somewhat after a new government was formed and announced plans for major investments in defence and infrastructure. However, the truck market decreased by 28% during the quarter. Our sales of new trucks decreased by 6% in units and we increased our market share significantly. Although customers are still cautious about decisions to renew their fleets, they continue to operate their existing truck fleets. The demand for service therefore remains strong and we could sell more service hours and spare parts if we had more technicians. Being able to meet the demand for service and growing our aftermarket business is important for improving profitability. Training and recruiting more technicians are a top priority to us and we are now beginning to see some results from our efforts, which bodes well for the future. Following our efforts to make our balance sheet more efficient, our inventory is 59% lower than it was at the end of the first quarter in 2024. We have thus reduced our tied up capital, improved cash flow and reduced borrowings. Our electric truck rental business continued to contribute positively during the quarter.

Overall, sales in Germany decreased by 9% to SEK 402m. The operating profit amounted to SEK -9m. With the cost reduction program implemented last year, a promising recruitment campaign for service technicians and a more balanced inventory position, we are now significantly more resilient and in a good position to capture future business opportunities in Germany.

"The mood in the US remains good "

In Kazakhstan, our sales of new machines increased to 28 units. We have also worked to significantly reduce inventory in Kazakhstan. At the end of the quarter, total inventories in Kazakhstan were 68% lower than a year ago.

Overall, sales increased to SEK 42m, with a positive operating profit of SEK 1m.

For the Group, revenues increased by 3% to SEK 1,206m. The operating profit amounted to SEK 13m. Net profit was significantly negatively impacted by the strengthening of the Swedish krona against the euro and the US dollar. The Group's net debt decreased to SEK 1,826m, mainly due to exchange rate effects. Equity decreased to SEK 1,372m.

Outlook

Despite the current uncertainty, we remain optimistic about our US business and the long-term opportunities there. Demand is supported by a dynamic economy and a significant need to upgrade the country's infrastructure. We currently have no information about major infrastructure projects in our sales area in the US being cancelled or postponed. We see opportunities to further develop and expand our business in the US.

The German economy remains weak. We have taken steps to reduce costs and make our organization and balance sheet more resilient. We are confident that aftermarket demand will remain strong and are optimistic about the long-term potential of the German market as well as the opportunities in emobility and sustainable transport solutions. Recently announced government spending plans could accelerate a recovery in Germany.

Kazakhstan represents a minor part of the Group's operations. We continue to see good opportunities in the market.

Lars Corneliusson President and CEO

Operating profit and operating margin (adjusted*)

Group

Revenue

In Q1 2025, the revenue of the Group increased by 3% to SEK 1,206m (1,172). Sales of equipment and trucks decreased by 4% and service and parts sales increased by 17%. Other revenue, mainly consisting of rental sales, decreased by 4%.

Gross profit and operating result

In Q1 2025, the gross margin for the Group decreased to 16.3% (19.7). As a result of higher revenue but lower gross margin, gross profit decreased by 15% to SEK 197m (231). Starting from Q1 2025, the gross margin was negatively impacted by a reclassification of productive cost in the US from administrative expenses to cost of sales. In Q1 2025, the size of the effect was approximately SEK 47m.

Selling and administrative expenses in Q1 2025 decreased by 11% to SEK 195m. As a percentage of revenue, selling, general and administrative expenses decreased in Q1 2025 to 16.2% (18.7). The operating result for Q1 2025 decreased by 35% to SEK 13m (21). The operating margin during the quarter decreased from 1.8% to 1.1%.

Net income

In Q1 2025, finance costs (net) amounted to SEK -32m (-27). Finance costs increased mainly on higher debt and primarily to fund the expansion of the rental fleet in the US business. Foreign exchange effects (net) amounted to SEK -129m (95) in Q1 2025, mainly as the Swedish krona appreciated against the US dollar and the euro. The Group has assets denominated in EUR and USD, which are revalued at the exchange rates of the closing date of the reporting period.

The result before income tax for Q1 2025 decreased to SEK -148m (89). The result for Q1 2025 decreased to SEK -150m (70).

Earnings per share

Earnings per share before dilution in Q1 2025 amounted to SEK -10.32 (4.83).

Cash flows

In Q1 2025, cash flows from operating activities increased to SEK 185m (124). Working capital at the end of Q1 2025 was SEK 825m, a decrease of SEK 237m compared to the end of Q1 2024 at SEK 1,062m, mainly due to lower inventories and receivables but also due to higher payables. As a percentage of revenue, working capital decreased to 17% (23% at the end of 2024) in Q1 2025.

Cash flow from investing activities in Q1 2025 amounted to SEK -10m (-233).

Financial position

On 31 March 2025, cash and cash equivalents amounted to SEK 232m, a decrease of SEK 130m compared to the end of 2024. Cash decreased mainly as a result of repayment of loans.

At the end of Q1 2025, interest-bearing liabilities (including lease liabilities and effects of IFRS-16) amounted to SEK 2,058m, a decrease of SEK 282m compared to the end of 2024. The decrease mainly a result of the repayment of loans but also due to currency translation effects. The net debt decreased

Net working capital and as % of LTM revenue

Operating cash flow per quarter and over LTM

Cash flow from operations per quarter (SEKm)

Property, plant and equipment and capital expenditures

from SEK 1,978m at the end of Q4 2024 to SEK 1,826m at the end of Q1 2025, mainly as a result of lower interest-bearing liabilities.

On 31 March 2025, property, plant and equipment (PP&E) amounted to SEK 2,282m, a slight decrease of SEK 35m from SEK 2,317m at the end of 2024.

On 31 March 2025, equity amounted to SEK 1,372m (1,499), a decrease of SEK 127m compared to the end of 2024. The decrease was partly a result of currency translation effects and a negative Group result.

Parent company

In Q1 2025, the revenue of the Parent Company decreased to SEK 0m (6), mainly due to less equipment trading with subsidiaries but also as royalty from subsidiaries will not be levied in 2025. Administrative expenses decreased by 24% to SEK 17m (23), mainly due to lower bonus accruals in Q1 2025. The operating result increased to SEK -17m (-20). The result for the quarter decreased to SEK -81m (77) mainly due to negative foreign exchange effects.

Foreign exchange rates

The following foreign exchange rates have been used to translate the Q1 2025 (Q1 2024) results to the presentation currency:

• Average rates of SEK/EUR 11.23 (-0,4% vs 11.28) and SEK/USD 10.68 (3% vs 10.39) have been used to translate the income statements.
• End of period rates of SEK/EUR 10.85 (-5.9% vs 11.53) and SEK/USD 10.03 (-6% vs 10.66) have been used to translate the balance sheet.

The Group's currency exposure is mainly to the US dollar (USD) and the euro (EUR), from its US and German operations respectively. The Group also has exposure to the Kazakh tenge (KZT).

Employees

At the end of Q1 2025, the number of full-time equivalent employees in the Group was 792 (828), of which 371 (356) related to the US, 360 (402) to Germany, 44 (51) to Kazakhstan and 17 (19) occupied group functions.

Sustainability

In Q1 2025, Ferronordic continued work to build institutional capacity to measure, report and follow up on its sustainability targets internally and as required by the CSRD and the ESRS.

Risks and uncertainties

Ferronordic is exposed to a number of operational and financial risks. The Group currently operates in the US, Germany and Kazakhstan, which means that the Group has business in two developed markets and in one emerging market. In developed markets, competitive, labour and regulatory pressure can be strong. In the US, the new administration has imposed import tariffs and has discussed introducing further tariffs and other trade restrictions. This could pose risk to Ferronordic, which depends on importing construction equipment to the US. In an emerging market, the institutional and regulatory frameworks can be unstable. The tax and judicial systems are not always transparent or consistent. Corruption can be a problem. Access to funding can be limited, monetary policy unpredictable and the currency unstable. Counterparty and insurance risks are often greater and instruments to manage such risks are either less effective or more expensive. In its position as a service and sales company, between suppliers and customers, Ferronordic is exposed to both supply and demand disruptions and to changes in macroeconomic activity. For more on risks and uncertainties, please refer to Ferronordic's annual report.

Net debt and net debt/EBITDA

Currency index last 5 quarters (indexed 1 January 2024)

Events after the reporting period

On March 25 2025, it was announced that Ferronordic's Nomination Committee has notified the Board of Directors that it intends to propose Lars Corneliusson as Executive Chairman of the Board at the upcoming Annual General Meeting on 15 May 2025. Lars Corneliusson has informed Ferronordic's Board of Directors that he intends to continue as CEO until further notice but that he wishes to move to the new role provided that the AGM decides in accordance with the proposal of the Nomination Committee. In connection with the proposed change, the Board intends to appoint Deputy CEO Henrik Carlborg as CEO of Ferronordic from 15 May 2025, provided that the proposal of the Nomination Committee is approved by the AGM. Ferronordic's current Chairman of the Board, Staffan Jufors, has previously notified the nomination committee that he will decline re-election. Furthermore, the Nomination Committee also proposed the election of Peter Zonabend as a new Board Member. Peter Zonabend is CEO of Arwidsro, which is the second largest owner in Ferronordic.

Other than as mentioned above, there were no significant events after the end of the reporting period.

5

Segments

From Q4 2023 Ferronordic recognizes three separate reportable segments: US, Germany and Kazakhstan (see also note 5 on page 17). In the US, equipment and truck sales include sales of new construction equipment from Volvo, Hitachi, Sandvik, Link-Belt Cranes and Bergmann and used machines. In Germany, equipment and truck sales include sales of new Volvo Trucks and Renault Trucks, Renault light commercial vehicles and used trucks. In Kazakhstan, equipment and truck sales include sales of

new and used construction equipment, used trucks and attachments. Service and parts sales are also referred to as aftermarket sales. Other revenue consists mainly of rental revenue. To show the underlying performance of the operating segments, Ferronordic shows unallocated Group costs and assets separately¹ . These are costs that are incurred and assets that are held for the benefit of the Group as a whole.

	Unallocated
							Group
		US	Germany		Kazakhstan		costs1		Total
	Q1	Q1	Q1	Q1	Q1	Q1	Q1	Q1	Q1	Q1
SEK m (or as stated)	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
External revenue	762	699	402	439	42	34			1,206	1,172
Equipment and truck sales	434	439	221	261	33	19			689	719
Service and parts sales	283	207	159	162	9	15			451	384
Other revenue	45	53	22	17	-	-			66	69
Gross profit	135	169	56	57	6	6			197	231
EBITDA	95	108	13	4	2	-2	-26	-24	83	86
Operating profit	48	60	-9	-12	1	-3			40	45
Group costs	-	-	-	-	-	-	-26	-24	-26	-24
Operating profit after group costs	48	60	-9	-12	1	-3	-26	-24	13	21
Finance items (net)									-161	68
Profit(loss) before tax									-148	89
Result for the period									-150	70
Gross margin, %	17.7%	24.1%	13.9%	12.9%	13.9%	17.1%			16.3%	19.7%
Operating margin, %	6.3%	8.6%	-2.3%	-2.7%	3.5%	-10.2%			1.1%	1.8%

31 March 2025

SEK m	US	Germany	Kazakhstan	Group assets1	Total
Non-current assets	1,792	831	12	-	2,636
Total assets	2,964	1,300	145	150	4,540

31 December 2024

SEK m	US	Germany	Kazakhstan	Group assets1	Total
Non-current assets	1,760	923	13	-	2,697
Total assets	3,054	1,458	183	246	4,941

31 March 2025

				Group
SEK m	US	Germany	Kazakhstan	assets	Total
Property, plant and equipment	1,646	631	5	-	2,282
Real Estate	209	222	-	-	430
Rental Fleet	1,262	293	-	-	1,555
Right-of-use assets	17	40	-	-	57
Other PPE	158	76	5	-	240

31 December 2024

SEK m	US	Germany	Kazakhstan	Group assets	Total
Property, plant and equipment	1,600	711	5	-	2,317
Real Estate	227	236	-	-	464
Rental Fleet	1,264	336	-	-	1,599
Right-of-use assets	19	45	-	-	64
Other PPE	90	94	5	-	190

Changes in the presentation of the income statement of the US segment

In the 2025 financial year, certain revenue and cost items have been reclassified to align the presentation of the income statement for the US segment to Group reporting guidelines.

Revenues related to the recharge of certain productive and administrative costs to customers in the service and parts business were presented in the same line as productive and administrative costs in Q1 2024. In Q1 2025, they are recognized in revenue and productive and administrative costs. Other productive costs that in Q1 2024 were reported as administrative costs have in Q1 2025 been reclassified to cost of sales. Certain administration fees paid by customers that in Q1 2024 were reported under other income have in Q1 2025 been reclassified to equipment sales.

Column Q1 2024 ADJ in the table below shows the effects that the reclassifications would have on the Q1.2024 income statement and the effects on the year-on-year comparisons with Q1 2025, if the reclassifications had been applied in Q1 2024. The reclassifications affect revenue, gross profit, gross margin, SG&A, other income and operating margin but has no effect on the operating profit.

The table below shows the effects of the reclassifications on the US segment if applied to Q1 2024

	Q1	Q1	Q1	Q1 2024	Y-o-Y	Y-o-Y
SEK m	2025	2024	ADJ	ADJ		reported adjusted
Revenue	762	699	47	746	9%	2%
Equipment and truck sales	434	439	10	449	-1%	-3%
Service and parts sales	283	207	37	244	37%	16%
Other revenue	45	53		53	-15%	-15%
Cost of sales	-627	-530	-59	-589	18%	6%
Gross profit	135	169	-11	157	-20%	-14%
Selling expenses	-25	-21	-	-21	22%	22%
General and administrative expenses	-72	-99	21	-77	-26%	-6%
Other income	12	11	-10	1
Other expenses	-1	-		-
Operating profit	48	60	-	60	-21%	-21%
Gross margin	17.7%	24.1%		21.1%
Operating margin	6.2%	8.6%		8.0%

The table below shows the effects of the reclassifications at the Group level if applied to Q1 2024

	Q1	Q1	Q1	Q1	Y-o-Y	Y-o-Y
SEK m	2025	2024	ADJ	2024 ADJ	reported	adjusted
Revenue	1,206	1,172	47	1,220	3%	-1%
Equipment and truck sales	689	719	10	729	-4%	-5%
Service and parts sales	451	384	37	422	17%	7%
Other revenue	66	69		69	-4%	-4%
Cost of sales	-1,009	-941	-59	-1,000	7%	1%
Gross profit	197	231	-11	220	-15%	-11%
Selling expenses	-63	-65	-	-65	-3%	-3%
General and administrative expenses	-132	-154	21	-133	-14%	-1%
Other income	13	12	-10	2
Other expenses	-1	-3		-3
Operating profit	13	21	-	21	-37%	-37%
Gross margin	16.3%	19.7%		18.0%
Operating margin	1.1%	1.8%		1.7%

USA

Unit sales (incl. rental conversion)

Operating profit and operating margin 12% 80

Market and sales

In Q1 2025, the new administration made announcements about shifts in US trade and fiscal policy. A baseline import tariff of 10% was imposed on all countries. A range of additional tariffs were announced but paused until 9 July. An escalation of trade tensions with China resulted in high bilateral tariffs until an agreement can be reached. The administration also started to cut back on government expenses and announced plans for tax cuts. It is unclear what tariffs will remain or if and when tax cuts may materialize and if spending cuts will impact previously announced infrastructure spending plans. All OEMs of construction equipment have parts of their product ranges manufactured abroad and are likely to be impacted by tariffs. The administration's policy changes have contributed to uncertainty in the American economy. The US economy expanded by 2.0% Y-o-Y but declined 0.3% Q-o-Q, as imports increased ahead of the implementation of tariffs. The forecasts for US GDP for 2025 have been revised down to 1.6-1.8%. Ferronordic's customers however remain relatively upbeat and do not expect their project pipelines to change. Residential and non-residential construction spending increased by 2.9% and 3.5% respectively in Q1 2025. Investments in data and logistics centres continue to contribute to demand in Ferronordic's sales area and resource companies remain optimistic. In Q1 2025, the market for larger construction equipment (GPE segment) in the US declined by 5%. In Ferronordic's sales area, the market is estimated to have declined by 8%, mainly driven by lower sales of wheeled excavators. Ferronordic's sales of new machines and conversions from rental fleet decreased by 6% in the GPE segment. Ferronordic increased its sales of crawler excavators and wheel loaders in the quarter, partly in fleet deals with lower margins. In Q1 2025, Ferronordic sold 71 new units, 20 used units and 30 units were converted to sales from rental. The service and parts business was largely stable.

Revenue and operating result

Revenue in Q1 2025 amounted to SEK 762m with a gross margin of 17.7%. The operating result amounted to SEK 48m. The operating margin was 6.3%. In Q1 2025, 57% of revenue was related to sales of new and used equipment and conversions, 6% was related to rental and 37% to service and parts.

Cash flows and balance sheet

The net working capital at the end of Q1 2025 amounted to SEK 484m, a decrease from SEK 587m at the end of Q4 2024, mainly as inventory and receivables decreased. At the end of Q1 2025, working capital was 17% of revenue from the last 12 months. The operating cash flow in Q1 2025 was SEK 130m (216).

	2025 Q1	2024 Q11	% change	2024 FY
New units	71	81	-12%	277
Conversion from rental, units	30	27	11%	129
Used units	20	19	5%	73
Revenue, SEK m	762	699	9%	2,813
Gross profit, SEK m	135	169	-20%	686
Operating profit, SEK m	48	60	-21%	230
Gross margin, %	17.7%	24.1%		24.4%
Operating margin, %	6.3%	8.6%		8.2%
Working capital/LTM Revenue, %	17%	13%		21%

1 In Q1 2025 certain revenue and cost items have been reclassified, with some effects on comparable numbers in Q1 2024 for revenue, gross profit, SG&A and other income. For more details on this effect, please refer to the note on p8.

Revenue by activity (SEKm)

Operating profit and operating margin

Germany

Market and sales

In Q1 2025, German GDP declined 0.2% Y-o-Y but grew 0.2% Q-o-Q. In full year 2025, growth is expected at 0%. The business sentiment in the German economy is torn between the prospects of incremental demand from increased fiscal spending on one side and the negative effects of potential US tariffs on the manufacturing sector on the other. The newly formed German government has announced plans to invest EUR 500bn on defence, infrastructure and green transition. Meanwhile, the ECB has cut interest rates by a further 50bps. The IFO business climate index and the PMI manufacturing improved slightly in March, but Ferronordic's customers still remain cautious and postpone major investment decisions. Based on registrations, the total German market for heavy trucks declined by 28% in Q1 2025. Tractor trucks sales declined more than sales of rigid trucks. New trucks registered in Ferronordic's sales area decreased by 20% and represented approx. 19% of the total German market. Some overstocking in the market is still exerting negative pressure on prices. Ferronordic's sales of trucks decreased by 6% to 148 and by 15% to SEK 221m in revenue. Used truck sales in units declined 56% to 48 as Ferronordic reduced the scale of its used trucks business in 2024. Total inventory declined 59% to SEK 211m at the end of Q1 2025 from SEK 519m at the end of Q1 2024. Service and parts sales remained stable in the quarter. Demand for aftermarket services remains strong. Ferronordic estimates that the Company could sell more service hours and parts if it had more qualified mechanics.

Revenue and operating result

Total revenue in Germany decreased by 9% to SEK 402m (439) in Q1 2025. Truck sales decreased by 15%. Service and parts sales decreased by 2% to SEK 159m but increased as a share of revenue by 3pp to 40%. The gross margin increased by 1pp to 13.9% (12.9).

Selling, general and administrative expenses decreased by 7% compared to Q1 2024 to SEK 65m (70) but increased to 16.1% (15.8) as a share of revenue. The operating margin increased to -2.3% (-2.7). The operating result increased to SEK -9m (-12).

Cash flows and balance sheet

In Q1 2025, working capital decreased to SEK 268m as inventories and receivables declined and payables increased. As a percentage of revenue, working capital decreased to 16% compared to 23% at the end of Q4 2024. Cash flows from operating activities amounted to SEK 74m (-45) in Q1 2025.

	2025	2024	%	2024
	Q1	Q1	change	FY
New units	148	157	-6%	671
Used units	48	109	-56%	300
Revenue, SEK m	402	439	-9%	1,702
Gross profit, SEK m	56	57	-1%	149
Operating profit, SEK m	-9	-12	21%	-120
Gross margin, %	13.9%	12.9%		8.7%
Operating margin, %	-2.3%	-2.7%		-7.0%
Working capital/LTM Revenue, %	16%	30%		23%

Revenue by activity

Operating profit and operating margin

Market and sales

Kazakhstan

Kazakhstan's GDP grew by 5.8% in Q1 2025. The growth was underpinned by an 8.7% increase in manufacturing output, a 6.1% expansion in the mining sector and a 16.9% rise in construction activity. For the full year, the Kazakh economy is projected to expand by 4.5-4.9%. Inflation picked up speed, rising to 10.7% Y-o-Y in April, up from 10.0% in March. In response, the National Bank increased its base rate further by 125bps to 16.5%. Lack of funding is a limiting factor and a problem for Ferronordic's customers in the construction sector and mining industry. Government spending rose in Q1 2025, partly driven by an increase in infrastructure investments (+19.7%). Much government resources are currently directed towards developing Kazakhstan's road network. In Q1 2025, the market for larger construction equipment (GPE segment) in Kazakhstan grew by an estimated 37%, from a relatively low level in Q1 2024. Ferronordic continued to reduce its inventory position in Kazakhstan. Sales of new machines in units increased to 28 (5) in Q1 2025. Sales of used construction equipment decreased to 3 (5) units. Total inventory declined from SEK 247m at the end of Q1 2024 to SEK 80m at the end of Q1 2025. Service and parts sales were lower Y-o-Y and Q-o-Q.

Revenue and operating result

Total revenue in Kazakhstan increased by 26% to SEK 42m (34). Equipment sales increased by 77%, while service and parts sales decreased by 39%. The gross margin decreased to 13.9% (17.1). Gross profit was largely unchanged at SEK 6m (6).

Selling, general and administrative expenses increased by 2%. As a percentage of revenue, these expenses decreased to 14.8% (18.2) on higher revenue. The operating result improved SEK 1m (-3), implying an operating margin of 3.5% (-10.2).

Cash flows and balance sheet

Working capital decreased to SEK 100m at the end of Q1 2025, compared to SEK 113m at the end of Q4 2024, as inventory and receivables declined more than payables in the quarter. As a percentage of revenue, working capital was 47% at the end of Q1 2025, compared to 55% at the end of Q4 2024. Сash flows from operating activities increased to SEK 16m (6).

	2025 Q1	2024 Q1	% change	2024 FY
New units	28	5	460%	52
Used units	3	5	-40%	35
Revenue, SEK m	42	34	26%	205
Gross profit, SEK m	6	6	3%	19
Operating profit, SEK m	1	-3	143%	-12
Gross margin, %	13.9%	17.1%		9%
Operating margin adjusted, %	3.5%	-10.2%		-5.9%
Working capital/LTM Revenue, %	47%	29%		55%

Condensed consolidated statement of comprehensive income

	Q1	Q1	FY
SEK m	2025	2024	2024
Revenue	1,206	1,172	4,720
Cost of sales	-1,009	-941	-3,867
Gross profit	197	231	853
Selling expenses	-63	-65	-239
General and administrative expenses	-132	-154	-587
Other income	13	12	8
Other expenses	-1	-3	-14
Operating profit	13	21	21
Finance income	5	3	10
Finance costs	-37	-30	-147
Foreign exchange gains/(-losses) (net)	-129	95	77
Result before income tax	-148	89	-40
Income tax	-2	-19	-50
Result for the period	-150	70	-89
Other comprehensive result
Items that are or may be reclassified to profit or loss:
Foreign currency translation differences for foreign
operations	23	6	-39
Other comprehensive result for the period, net of tax	23	6	-39
Total comprehensive result for the period	-127	76	-128
Earnings per share
Basic earnings per share (SEK)	-10.32	4.83	-6.15
Diluted earnings per share (SEK)	-10.32	4.83	-6.15

Condensed consolidated statement of financial position

SEK m	31 Mar 2025	31 Dec 2024	31 Mar 2024
ASSETS
Non-current assets
Property, plant and equipment	2,282	2,317	2,099
Intangible assets	229	248	257
Deferred tax assets	124	132	131
Total non-current assets	2,636	2,697	2,488
Current assets
Inventories	1,115	1,253	1,687
Trade and other receivables	541	617	678
Prepayments	16	11	8
Cash and cash equivalents	232	363	217
Total current assets	1,904	2,245	2,589
TOTAL ASSETS	4,540	4,941	5,076
EQUITY AND LIABILITIES
Equity
Share capital	1	1	1
Additional paid in capital	635	635	630
Translation reserve	-38	-61	-16
Retained earnings	924	1,013	1,013
Result for the period	-150	-89	70
TOTAL EQUITY	1,372	1,499	1,698
Non-current liabilities
Borrowings	1,064	958	610
Deferred income	6	7	12
Deferred tax liabilities	257	281	297
Long-term lease liabilities	33	37	53
Total non-current liabilities	1,360	1,283	972
Current liabilities
Borrowings	939	1,318	1,071
Trade and other payables	834	794	1,283
Deferred income	7	11	8
Provisions	5	8	18
Short-term lease liabilities	23	28	26
Total current liabilities	1,808	2,159	2,406
TOTAL LIABILITIES	3,168	3,442	3,378
TOTAL EQUITY AND LIABILITIES	4,540	4,941	5,076

Condensed consolidated statement of changes in equity

	Share	Additional paid in	Translation	Retained	Total
SEK m	capital	capital	reserve	earnings	equity
Balance 1 January 2025	1	635	-61	924	1,499
Total comprehensive result for the period
Result for the period	-	-	-	-150	-150
Other comprehensive result
Foreign exchange differences	-	-	23	-	23
Total comprehensive result for the period	-	-	23	-150	-127
Contribution by and distribution to owners
Dividends	-	-	-	-	-
Total contributions and distributions	-	-	-	-	-
Balance 31 March 2025	1	635	-38	774	1,372

		Additional
	Share	paid in	Translation	Retained	Total
SEK m	capital	capital	reserve	earnings	equity
Balance 1 January 2024	1	630	-22	1,013	1,622
Total comprehensive result for the period
Result for the period	-	-	-	70	70
Other comprehensive result
Foreign exchange differences	-	-	6	-	6
Total comprehensive result for the period	-	-	6	70	76
Contribution by and distribution to owners
Dividends	-	-	-	-	-
Total contributions and distributions	-	-	-	-	-
Balance 31 March 2024	1	630	-16	1,083	1,698

Condensed consolidated statement of cash flows

	Q1	Q1
SEK m	2025	2024
Cash flows from operating activities
Result before income tax	-148	89
Adjustments for:
Depreciation and amortization	70	65
(Gain)/loss from impairment of receivables	1	1
Finance costs	37	30
Finance income	-5	-3
Foreign exchange losses/(gains) (net)	129	-95
Cash flows from operating activities before changes in working capital and provisions	83	87
Change in inventories	45	-178
Change in trade and other receivables	25	-18
Change in prepayments	-5	-1
Change in trade and other payables	90	301
Change in provisions	-3	6
Change in deferred income	-3	-2
Cash flows from operating activities before interest and tax paid	232	195
Income tax paid	-14	-43
Interest paid	-32	-29
Cash flows from operating activities	185	124
Cash flows from investing activities
Interest received	4	3
Acquisition of property, plant and equipment	-15	-236
Cash flows from investing activities	-10	-233
Cash flows from financing activities
Repayment of loans	-286	-99
Leasing financing paid	-6	-6
Cash flows from financing activities	-292	-105
Net change in cash and cash equivalents	-117	-214
Cash and cash equivalents at start of the period	363	426
Effect of exchange rate fluctuations on cash and cash equivalents	-13	5
Cash and cash equivalents at end of the period	232	217

Parent company income statement

	Q1	Q1	FY
SEK m	2025	2024	2024
Revenue	-	6	3
Cost of sales	-	-3	-3
Gross profit	-	2	-
Administrative expenses	-17	-23	-43
Other income	-	-	1
Other costs	-	-	-
Operating profit	-17	-20	-42
Finance income	25	39	141
Finance costs	-10	-10	-43
Foreign exchange gains/(-losses) (net)	-79	80	97
Result after financial items	-81	88	153
Tax allocation reserve	-	-	-31
Result before income tax	-81	88	122
Income tax	-	-12	-26
Result for the period	-81	76	96

Total comprehensive result for the period is the same as the Result for the period.

Parent company balance sheet

SEK m	31 Mar 2025	31 Dec 2024	31 Mar 2024
ASSETS
Non-current assets
Property, plant and equipment	-	-	-
Intangible assets	-	-	-
Financial assets
Holdings in group companies	288	288	288
Loans to group companies	1,905	2,042	56
Deferred tax assets	-	-	6
Total financial assets	2,193	2,330	350
Total non-current assets	2,193	2,330	351
Current assets
Trade and other receivables	21	22	109
Prepayments	-	-	-
Loans to group companies	-	-	1,936
Cash and cash equivalents	131	205	146
Total current assets	151	277	2,191
TOTAL ASSETS	2,344	2,557	2,541
EQUITY AND LIABILITIES Equity
Restricted equity
Share capital	1	1	1
Unrestricted equity
Share premium reserve	640	640	640
Retained earnings	1,380	1,283	1,283
Result for the period	-81	96	76
TOTAL EQUITY	1,940	2,020	2,001
Untaxed reserves	31	31	-
Non-current liabilities
Borrowings	332	413	483
Total non-current liabilities	332	413	483
Current liabilities
Trade and other payables	41	37	57
Borrowings	-	55
Total current liabilities	41	92	57
TOTAL LIABILITIES	373	506	541
TOTAL EQUITY AND LIABILITIES	2,344	2,557	2,542

Notes

1. Accounting policies

Ferronordic applies the IFRS® Accounting Standards as adopted by the EU. This report has been prepared in accordance with IAS 34, the Swedish Annual Accounts Act and recommendation RFR 2 (only parent company), issued by the Swedish Financial Reporting Board.

The same accounting and valuation principles were applied in the preparation of this report as in the preparation of the 2024 annual report (regarding the 2024 financial year).

2. Determination of fair values

The basis for the determination of fair value of financial assets and liabilities is disclosed in note 5 in the 2024 annual report. The fair values of the Group's financial assets and liabilities approximate their respective carrying amounts.

3. Seasonal variations

Ferronordic's revenue and earnings are affected by seasonal variations in the construction industry in the US and in Kazakhstan. In the US in the summer months the business tends to be lower. Rental conversion happens mainly in the 4th quarter. For Kazakhstan the first quarter is typically the weakest for sales of machines as activity in construction projects is constrained during the winter months. On the other hand, the demand in aftermarket (sales of service and parts) is usually strong since many customers use the quiet period to service their machines. Demand is typically stronger and relatively even through the rest of the year. In Germany, seasonal trends are less significant.

4. Ferronordic AB (publ)

Ferronordic AB (publ) and its subsidiaries are sometimes referred to as the Group or Ferronordic. Ferronordic AB (publ) is also sometimes referred to as the Company. Any mentioning of the Board is a reference to the Board of Directors of Ferronordic AB (publ).

5. Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decisionmaker (CODM). The chief operating decision-maker, who is responsible for allocating resources and assessing the financial performance of the operating segments, has been identified as the Group Executive Management Team. The Group recognizes three separate reportable segments: USA, Germany and Kazakhstan. The segments are partly managed separately due to differences in markets, logistics, supply chains, products, customers and marketing strategies. For each segment, management reviews internal reports on at least a monthly basis. US sales are comprised of new and used construction and other equipment, aftermarket sales,

rental, contracting services and other services. Germany's sales are comprised of new and used trucks, aftermarket sales, rental, mobile crushers and screens and other services. Kazakhstan has sales comprised of new and used construction and other equipment, mobile crushers and screens, used trucks, aftermarket sales, rental, contracting services and other services.

The accounting policies of the segments are the same as described in Note 6 of the annual report 2024. Group overhead costs, such as Group management costs, are allocated between the segments using principles set forth by the CODM. Information regarding the results of each segment is presented on page 6 of this report. The performance of each segment is mainly evaluated based on revenue, gross profit, gross margin, EBITDA, operating profit and operating margin, as included in internal management reports that are reviewed by the Group's Executive Management Team. The Group had no inter-segment revenues during the periods presented.

Information on Group segments is presented in the front part of this report.

6. Contingencies

Besides as disclosed in this report, the Group has no material contingencies. The Parent Company has issued a number of guarantees, all as security for the subsidiaries' obligations visà-vis suppliers and financial institutions.

7. Related party transactions

There have been no significant changes in the relationships or transactions with related parties for the Group or the Parent Company compared with the information disclosed in the 2024 annual report.

8. Earnings per share

The calculation of earnings per share is based on the result attributable to the shareholders and is thus calculated as the result for the period divided by the average number of shares outstanding. Dilution can potentially follow from the Group's incentive program for its executive management, which includes warrants. For more information, please refer to Ferronordic's annual report for 2024.

Result for the period, SEK m

	2025 Q1	2024 Q1
Result attributable to shareholders, SEK m	-150	70
Average number of shares during the period before dilution, thousand	14,532	14,532
Earnings per share before dilution, SEK	-10.32	4.83
Dilution effect	-	-
Average number of shares during the period after dilution, thousand	14,532	14,532
Earnings per share after dilution, SEK	-10.32	4.83

9. Events after the reporting date

Information regarding events after the reporting date is set out in the front part of this report (p. 6).

Signatures

The Board of Directors and the Managing Director declare that the report for the first quarter of 2025 provides a true and fair overview of the Group's and the Parent Company's operations, financial position and performance, and describes material risks and uncertainties facing the parent company and the companies in the Group.

Stockholm, 15 May 2025

Staffan Jufors Chairman

Aurore Belfrage Director

Annette Brodin Rampe Director

Niklas Florén Director

Lars Corneliusson Director and CEO

Håkan Eriksson Director

This report has not been reviewed by the Company's auditors

Key ratios

Financial information for individual quarters¹

The financial information below regarding individual quarters during the period 1 January 2023 – 31 March 2025 is collected from Ferronordic's interim reports for the relevant quarters.

Key ratios

Certain key ratios in Ferronordic's interim reports are not defined according to IFRS.

The company considers these ratios to provide valuable supplementary information for investors and the company's management as they enable the assessment of relevant trends. Ferronordic's definitions of these measures may differ from other companies' definitions of the same terms. These ratios should therefore be seen as a supplement rather than as a replacement for measures defined according to IFRS. As the amounts in the tables below have been rounded off to SEK m, the calculations do not always add up due to rounding.

Selected key group ratios

	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
SEK m (or as stated)	2023	2023	2023	2023	2024	2024	2024	2024	2025
Revenue	631	674	643	915	1,172	1,095	1,141	1,312	1,206
Gross profit	85	84	75	133	231	202	204	216	197
Gross margin, %	13.4%	12.5%	11.7%	14.5%	19.7%	18.4%	17.9%	16.5%	16.3%
Operating profit	-14	-10	-28	-62	21	-4	2	2	13
Operating margin, %	-2.2%	-1.5%	-4.4%	-6.8%	1.8%	-0,3%	0.1%	0.2%	1.1%
Result from continuing operations	7	64	-89	-89	70	-81	-88	9	-150
Result for the period	7	64	-89	-89	70	-81	-88	9	-150
Earnings per share, SEK2	0.46	4.41	-6.16	-6.11	4.83	-5.56	-6.07	0,65	-10.32
Working capital/LTM Revenue, %	23%	20%	20%	20%	20%	21%	22%	23%	17%
Cash flow from operations	-126	40	-88	147	124	270	427	-480	185
Equity/total assets, %	59%	62%	62%	34%	33%	33%	31%	30%	30%
Return on equity, LTM%	26%	23%	-2%	-6%	-2%	-7%	-12%	-6%	-20%
Return on capital employed, LTM%	11%	11%	-1%	-3%	-2%	-2%	-1%	1%	1%

2 before dilution

USA

	Q1	Q2	Q3	Dec	Q1	Q2	Q3	Q4	Q1
SEK m (or as stated)	2023	2023	2023	2023	2024	2024	2024	2024	2025
Revenue	-	-	-	308	699	707	686	720	762
Gross profit	-	-	-	82	169	156	182	179	135
Gross margin, %	-	-	-	26.6%	24.1%	22.1%	26.5%	24,8%	17.7%
Operating profit	-	-	-	25	60	51	53	65	48
Operating margin, %	-	-	-	8.0%	8.6%	7.3%	7.7%	9%	6.3%
Working capital/LTM Revenue, %	-	-	-	17%	13%1	15%1	19%1	21%	17%

¹Based on annualized revenue for Ferronordic's US operations calculated as 9m 2024 / 9 x 12

Germany
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
SEK m (or as stated)	2023	2023	2023	2023	2024	2024	2024	2024	2025
Revenue	548	595	574	555	439	332	372	559	402
Gross profit	68	73	66	47	57	38	14	40	56
Gross margin, %	12.3%	12.3%	11.5%	8.4%	12.9%	11.4%	3.7%	7.2%	13.9%
Operating profit	5	2	-16	-62	-12	-27	-40	-41	-9
Operating margin, %	0.8%	0.3%	-2.8%	-11.1%	-2.7%	-8.2%	-10.7%	-7.3%	-2.3%
Working capital/LTM Revenue, %	27%	21%	22%	26%	30%	31%	27%	23%	16%

1 In Q1 2025 certain revenue and cost items have been reclassified, with some effects on comparable numbers in Q1 2024 for revenue, gross profit, SG&A and other income. For more details on this effect, please refer to the note on p8.

Kazahkstan

	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
SEK m (or as stated)	2023	2023	2023	2023	2024	2024	2024	2024	2025
Revenue	83	80	69	52	34	56	82	33	42
Gross profit	17	11	9	5	6	8	9	-3	6
Gross margin, %	20.4%	14.4%	13.7%	8.9%	17.1%	13.6%	10.4%	-10.5%	13.9%
Operating profit	7	7	-	-6	-3	-1	3	-10	1
Operating margin, %	8.7%	8.6%	0.4%	-10.7%	10.2%	-2.3%	3.1%	-30.5%	3.5%
Working capital/LTM Revenue, %	17%	32%	23%	24%	29%	23%	27%	55%	47%

Net debt

	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
SEK m	2023	2023	2023	2023	2024	2024	2024	2024	2025
Long term borrowings	416	70	69	671	610	628	999	1,013	1,064
Long term lease liabilities	38	57	51	59	53	49	34	37	33
Short term borrowings	418	437	428	1,024	1,071	1,178	1,080	1,263	939
Short term lease liabilities	20	24	23	22	26	23	40	28	23
Total interest bearing liabilities	892	588	571	1,776	1,759	1,878	2,153	2,340	2,058
Cash & cash equivalents	1,574	1,127	950	426	217	208	360	363	232
Net debt / (cash)	-681	-539	-378	1,349	1,542	1,671	1,792	1,978	1,826
Net debt / EBITDA (times)	-2.0	-1.5	-18.4	-214.7	21.0	9.4	6.6	5.2	4.8

Working capital

	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
SEK m	2023	2023	2023	2023	2024	2024	2024	2024	2025
Inventory	534	718	699	1,443	1,687	1,466	1,363	1,253	1,115
Trade and other receivables	365	263	315	630	678	653	496	617	541
Prepayments	7	9	3	6	8	5	12	11	16
Trade and other payables	392	509	470	997	1,283	1,051	827	794	834
Deferred income	12	9	8	8	8	12	10	11	7
Provisions	-	-	-	12	18	11	10	8	5
Working capital	503	472	538	1,063	1,062	1,049	1,026	1,068	825
Revenue LTM	2,149	2,422	2,653	5,313	5,314	4,938	4,712	4,720	4,754
Working capital / Revenue (%)	23%	20%	20%	20%	20%	21%	22%1	23%	17%

¹Q1-Q3.2024 based on annualized revenue for Ferronordic's US operations calculated as 9m 2024 / 9 x 12

Capital employed

	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
SEK m	2023	2023	2023	2023	2024	2024	2024	2024	2025
Long term interest bearing liabilities	455	127	120	730	663	677	1,033	1,050	1,097
Short term interest bearing liabilities	438	461	451	1,046	1,096	1,201	1,120	1,291	961
Shareholder equity	1,886	1,822	1,750	1,622	1,698	1,627	1,483	1,499	1,372
Capital employed	2,778	2,411	2,322	3,397	3,457	3,505	3,636	3,839	3,430
Average capital employed	2,356	2,760	2,974	3,001	3,117	2,958	2,979	3,618	3,443
EBIT	257	277	-66	-115	-80	-84	-43	21	14
Interest income	7	17	25	31	29	30	15	10	11
Result LTM	265	293	-41	-84	-51	-53	-29	30	25
Return on capital employed (%)	11%	11%	-1%	-3%	-2%	-2%	-1%	1%	1%

Return on equity

	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
SEK m	2023	2023	2023	2023	2024	2024	2024	2024	2025
Shareholder equity	1,886	1,822	1,750	1,622	1,698	1,627	1,483	1,499	1,372
Average equity	1,486	1,781	1,929	1,748	1,792	1,725	1,617	1,560	1,535
Net result LTM	384	416	-39	-107	-44	-125	-188	-89	-310
Return on equity (%)	26%	23%	-2%	-6%	-2%	-7%	-12%	-6%	-20%

Alternative key ratios not defined by IFRS

EBITDA: Operating profit activities excluding depreciation, amortisation. Provides a measurement of the result from the ongoing business. In financials before and including 2016, certain write-downs of assets were excluded from EBITDA.

EBITDA margin: EBITDA in relation to revenue. Relevant key ratio in evaluating the Group's value creation.

Net debt/(Net cash): Interest-bearing liabilities (including lease liabilities) less cash and cash equivalents. Provides a measurement for the Group's net debt position.

Net debt / EBITDA: Net debt / (net cash) in relation to EBITDA for the last twelve months. Shows to what extent EBITDA covers net debt. Used to evaluate financial risk.

New units sold: Number of new machines and trucks sold. Used to measure and compare number of new units sold during relevant period.

Operating profit: Result before financial items and taxes. Provides a measurement of the result from the ongoing business.

Operating margin: Operating profit in relation to revenue. Relevant key ratio in evaluating the Group's value creation. Revenue growth: Growth in revenue compared to the same period last year, expressed in percentage. Used for comparison of growth between periods as well as comparisons with the market as a whole and with the company's competitors.

Gross margin: Gross profit in relation to revenue. Provides a measurement of the contribution from the ongoing business.

Capital employed: Total equity and interest-bearing liabilities. Shows the capital invested in the Group's business.

Return on capital employed: Adjusted EBIT plus financial income (for the last twelve months) in relation to capital employed (average during the last twelve months). Shows how effectively the capital employed is used.

Return on equity: Net income (for the last twelve months) in relation to shareholders' equity (average during the last twelve months). Net income is calculated before dividends to common shareholders but after dividends to preferred shareholders.

Working capital: Current assets excluding cash and cash equivalents, less non-interest bearing current liabilities. Shows the amount of working capital tied up in the ongoing business.

Working capital/Revenue: Working capital in relation to revenue during the last twelve months. Shows how effective the working capital is used in the business.

Abbreviations

Approx.	Approximately
CEO	Chief Executive Officer
EUR	Euro
FY	Full year
IFRS	International Financial Reporting Standards
Q1, Q2, Q3, Q4	First, second, third and fourth quarter
SEK	Swedish krona
SEK m	Million Swedish krona
vs	Versus
LTM	Last twelve months
VCE	Volvo Construction Equipment
3M, 6M, 9M, 12M	3 months, 6 months, 9 months, 12 months

This is Ferronordic

Ferronordic is a service and sales company in the areas of construction equipment and trucks. It is the dealer for Volvo CE in all or parts of nine states in the United States and also represents Hitachi, Sandvik, Link-Belt Cranes and Bergmann in parts of the same area. Ferronordic is dealer of Volvo Trucks and Renault Trucks in Germany and dealer of

Vision

Ferronordic's vision is to be the leading service and sales company in the company's markets.

Mission

The company's mission is to support the growth and leadership of the company's customers.

Values

Quality, excellence and respect.

Strategic objectives

• Leadership in the market for construction equipment and trucks
• Service and parts absorption rate of at least 1.0 x
• Expansion into related business areas
• Geographic expansion
• Industry leading digital service and sales platforms
• Expansion and development of sustainable transport services

Volvo CE and certain other brands in Kazakhstan. Ferronordic began its operations in 2010 and currently has 37 outlets and approx. 800 employees. Ferronordic's vision is to be the leading service and sales company in its markets. The shares in Ferronordic AB (publ) are listed on Nasdaq Stockholm. www.ferronordic.com

Strategic cornerstones

• Customer centricity
• Great team
• Building on a strong brands
• Operational excellence

Investment case highlights

• Robust and scalable business model
• Strong brand portfolio and OEM relationships
• Sustainability integrated part of business model
• Positioned to benefit from trends in
  • Electrification
  • Infrastructure investment
  • Shared asset models
• Poised for organic growth and bolt-on acquisitions
  • US Strong market with growth potential
  • Germany Turnaround that will capture recovery
  • Network, brand and product extension opportunities
• Open for strategic M&A
• Experienced management to execute

About this report

Forward-looking statements

Some statements in this report are forward looking and the actual outcomes could be materially different. In addition to the factors explicitly discussed, other factors could have a material effect on the actual outcomes.

Language

In the event of inconsistency or discrepancy between the English and the Swedish version of this publication, the Swedish version shall prevail.

Totals and roundings

Totals quoted in tables and statements may not always be the exact sum of the individual items because of rounding differences. The aim is that each line item should correspond to its source and rounding differences may therefore arise.

This information is information that Ferronordic AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act (2007:528). The information was submitted for publication on 15 May 2025 at 07:30 CET.

Financial calendar

Annual general meeting 2025 – 15 May 2025 Interim report April – June 2025 – 14 August 2025 Interim report July – September 2025 – 13 November 2025

Conference call

A presentation for investors, analysts and media will be held on 15 May 2025 at 10:00 CET and is accessible at www.ferronordic.com.

To participate via teleconference, please register on the link below. https://conference.inderes.com/teleconference/?id=50051574

To participate via webcast, please use the link below. https://ferronordic.events.inderes.com/q1-report-2025

Contacts

For investors, analysts and media: Erik Danemar, CFO and Head of Investor Relations +46 73 660 72 31 ir@ferronordic.com

Nybrogatan 6 SE-114 34 Stockholm +46 8 5090 7280

Corporate ID no. 556748-7953 www.ferronordic.com