Garo — Interim / Quarterly Report 2025

Nov 25, 2025

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STRONGER CASH FLOW AND MAINTAINED FOCUS ON PATH TOWARD SUSTAINED RECOVERY

JUL-SEP 2025

• Net sales amounted to MSEK 251.3 (269.4).
• Net sales declined 7% (-11).
• Operating EBIT1 amounted to MSEK 2.5 (0.4).
• Operating EBIT margin1 amounted to 1% (0.1).
• EBIT amounted to MSEK -1.6 (-48.0)
• Cash flow from operating activities amounted to MSEK 11.0 (-20.1).
• Net income was MSEK -4.5 (-41.9).
• Earnings per share2 amounted to SEK -0.09 (-0.84).

JAN-SEP 2025

• Net sales amounted to MSEK 782.5 (868.3).
• Net sales declined 10% (-18).
• Operating EBIT1 amounted to MSEK 3.8 (-10.5).
• Operating EBIT margin1 amounted to 0.5% (-1.2).
• EBIT amounted to MSEK -3.1 (-58,9)
• Cash flow from operating activities amounted to MSEK 20.7 (-73.1).
• Net income was MSEK -13.0 (-58.6).
• Earnings per share2 amounted to SEK -0.26 (-1.17).

SIGNIFICANT EVENTS DURING AND AFTER THE QUARTER

• · Jonas Klarén will leave his position as President and CEO of GARO at the end of January 2026. Recruitment of a new President and CEO has commenced.
• Stronger financial control As a result of improved cash flow over time, MEUR 2.5 of the available overdraft facility was repaid during the quarter.
• Group Management was previously strengthened with a new COO, CHRO and CTO. Further adjustments were made to Group Management during the quarter, such as the former Business Area Manager Niklas Rönnäng leaving GARO.
• GARO began a partnership with Hyundai during the quarter for delivery of LS4s to Hyundai's European factory in the Czech Republic and an agreement was signed with Sze in Slovakia for delivery to the Kia factory. Both transactions confirm the quality of GARO's chargers for which each individual component is specially selected to provide a robust charger with a low life-cycle cost.
• Roger Törnberg steps into the role of Business Development Director at GARO, see separate pressrelsease on November 11.

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GARO GROUP 1	Jul-Sep2025	Jul-Sep2024	+/-%	Jan-Sep2025	Jan-Sep2024	R12	Jan-Dec2024
Net sales, MSEK	251.3	269.4	-7	782.5	868.3	1,066.3	1,152.0
Operating EBITDA, MSEK	15.8	14.3		44.1	32.1	61.0	49.0
Operating EBITDA margin, %	6.3	5.3		5.6	3.7	5.7	4.3
Operating EBIT, MSEK	2.5	0.4		3.8	-10.5	7.1	-7.2
Operating EBIT margin, %	1.0	0.1		0.5	-1.2	0.7	-0.6
EBIT, MSEK	-1.6	-48.0		-3.1	-58.9	0.1	-55.6
Net income, MSEK	-4.5	-41.9		-13.0	-58.6	-14.5	-60.1
Earnings per share 2 , SEK	-0.09	-0.84		-0.26	-1.1 7	-0.29	-1.20
Cash flow from operating activities, MSEK	11.0	-20.1		20.7	-7 3.1	56.1	-35.8
Depreciation, MSEK	13.4	13.8		40.2	42.6	53.8	56.2
Investments, MSEK	1.6	4.8		6.3	15.4	8.4	19.6
Equity ratio, %	51.5	47.3		51.5	47.3	51.5	50.0
Equity per share, SEK	10. 7 8	11.08		10.78	11.08	10.78	11.11
Return on equity, %	-2.6	-10.1		-2.6	-10.1	-2.6	-10.3
Return on capital employed, %	0.0	-8.8		0.0	-8.8	0.0	-8.4
Net debt (+) / net cash position (-), MSEK	269.9	318.9		269.9	318.9	269.9	285.1
Net debt (+) / net cash position (-) excl. IFRS 16,	217.8	254.5		217.8	254.5	217.8	222.4
MSEK
Number of employees	374	428		374	428	394	406

21-24

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CEO JONAS KLARÉN'S COMMENTS ON THE QUARTER

The third quarter was characterized by continued implementation with an increasingly strong grasp of our core business. Following a structural transition, we are now seeing clear results in the form of improved cash flow, more stable production and greater clarity in terms of roles and responsibilities. At the same time, a clear imbalance remains between our Electrification and E-mobility business areas, with the latter continuing to dampen the Group's overall earnings.

GARO ELECTRIFICATION - STABILITY AND CONTROL

The business area posted a stable quarter with sales in line with the preceding year (-1%) and an improved operating EBIT of MSEK 21.7. The 4% year-on-year growth of Electrical distribution products and the recovery of the project business following the summer were particularly pleasing. Our companies in the UK, Ireland and Finland continued to perform well. In Sweden, we are seeing indications that wholesalers are beginning to fill their inventories ahead of 2026, even if a weak construction market continues to have an impact. Work with the ERP project has reached an intensive phase involving a high rate of investment, but the project is crucial for our long-term efficiency.

GARO E-MOBILITY - A STRATEGIC REVIEW

E-mobility continued its weak performance with a 22% decrease in sales in the quarter, resulting in an operating EBIT of MSEK -19.2. The home charging market has gradually transitioned to a volume-driven low-price segment with limited profitability in which price, rather than performance and quality, governs customer choices. This is an environment where GARO's strengths, quality, security and system integration are not being fully appreciated. As such, GARO has made the decision to increase focus to public and semi-public charging, where we can add real value with commissioning, service and complete solutions that are integrated with energy and property systems. Despite these challenges, many important steps have been taken within the business area:

• The LS4 platform is posting stable sales and is particularly popular in the export markets in which public charging is growing.
• The technology in the Entity platform has been enhanced and the launch of its installation interface is scheduled for the end of the year, which will strengthen GARO's position in major networks and professional installations.

FINANCIAL PERFORMANCE AND FOCUS

The Group's sales amounted to MSEK 251 (269), down 7% year-on-year. Operating EBIT amounted to MSEK 2.5 (0.4). Cash flow improved due to a reduction in inventory. Administrative costs remain high, primarily as a result of consultants engaged to implement the ERP project - this is a controlled investment for the future. We also came to an agreement with several of our suppliers concerning previously announced forecasts, which positively impacted the quarter.

Going forward, our priorities are clear: strengthen profitability in GARO Electrification, reduce tied-up capital in GARO E-mobility and continue to build the future GARO on a step-by-step basis.

ORGANIZATION AND LEADERSHIP

The new organizational structure is in place. In Sweden, work is continuing to increase customer contact and the frequency of follow-ups. In parallel, cooperation between product development, purchasing and production is being strengthened. We are focusing intensely on culture and leadership. Team GARO is not just a slogan but defines our way of working that combines responsibility, interaction and tempo.

THE WAY FORWARD

In September, company management held its annual strategy days together with the Board of Directors. The aim was to establish a mutual, fact-based understanding of the current situation, identify structural limitations that impact our ability to deliver stable profitability and clarify our long-term path toward 2030 and beyond. Management is now intensifying these efforts and defining how GARO is to go from recovery to sustained growth and become a stronger and more profitable company.

The goal is clear: to make GARO an installation engineer's best friend and a reliable European leader in electrification and temporary power. Based on this structure, we can ensure a more predictable and sustainable performance for the company.

MARKET CONDITIONS

Despite the continuing challenging market situation, several of our core markets are showing signs of stabilization.

The market for the new construction of single-family homes and apartments in the Nordic region has remained at a low level so far in 2025. To date, the positive signs of lower interest rates and falling inflation have been offset by global uncertainty and cost-driven factors related to conflicts and delivery chain disruptions. As a result, a clear turnaround in Nordic housing construction cannot be expected until 2026.

We can see a stable foundation in demand for products and solutions for electrification, temporary power and energy efficiency. Developments in society are continuing to be driven by investments in infrastructure, the need for public charging, the energy transition and the renovation of the existing building stock. GARO is in a good position to meet these trends. Our broad portfolio in Electrification, from electrical distribution products to project solutions and temporary power, coupled with our public charging offering provides a stable foundation for future growth when the market gradually rebounds.

Jonas Klarén President and CEO

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Earnings

NET SALES

The varied market situation continued to impact sales in the third quarter. Net sales declined to MSEK 251.3 (269.4), down 7% compared with the year-earlier quarter. Sales in GARO Electrification were in line with the year-earlier quarter while sales in GARO Emobility were down 22% or MSEK 15.

Net sales for the January to September 2025 period amounted to MSEK 782.5 (868.2), which is 10% lower year-on-year.

EBIT

Operating EBIT for the third quarter amounted to MSEK 2.5 compared with MSEK 0.4 for the year-earlier quarter, yielding an operating EBIT margin of 1.0% (0.1). This was primarily the result of weak sales, mainly in GARO E-mobility. Overall, the gross margin remained at the same level as in recent quarters, with strengthened margins in GARO Electrification offset by a lower gross margin in GARO E-mobility, which was the result of a changed product mix. Administrative costs remained high, primarily as a result of consultants engaged to implement the ERP project, a controlled investment for the future. Operating EBIT for the January to September period amounted to MSEK 3.8 (-10.5).

EBIT for the third quarter amounted to MSEK -1.6 (-48.0) and was charged MSEK 4.1 in settlement costs for outgoing employees. For the January to September period, EBIT amounted to MSEK -3.1 (-58.9) and was charged MSEK 7.0 in settlement costs for outgoing employees.

FINANCIAL ITEMS

The Group's net financial items amounted to MSEK -3.9 (-3.2) for the third quarter and included currency effects from loans and hedging. Net interest income for the third quarter amounted to MSEK -1.5 (-3.1). The Group's net financial items for the January to September 2025 period amounted to MSEK -12.0 (-8.5).

TAX

Net income amounted to MSEK -4.5 (-41.9) for the quarter, and earnings per share (before and after dilution) to MSEK -0.09 (-0.84). Tax assets recognized for the quarter amounted to MSEK 1.1 (9.3).

Net income for the January to September period amounted to MSEK -13.0 (-58.6). Earnings per share (before and after dilution) for the January to September period amounted to SEK -0.26 (-1.17).

Tax assets recognized for the January to September period amounted to MSEK 2.1 (8.8).

ALLOCATION OF NET SALES

per business area, Jan–Sep 2025

ALLOCATION OF NET SALES

by geographic area, Jan-Sep 2025

ALLOCATION OF EBIT per business area, Jan–Sep 2025

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CASH FLOW AND INVESTMENTS

As a result of seasonal variation, GARO's cash flow is typically weaker during the third quarter, followed by strong cash flow during the fourth quarter and the first quarter of the next year.

Cash flow from operating activities before changes in working capital amounted to MSEK 5.1 (12.0) for the third quarter. Cash flow from operating activities after changes in working capital amounted to MSEK 11.0 (-20.1) for the third quarter.

Capital tied-up in inventory for the third quarter decreased net by MSEK 18, with cash flow for the quarter attributable to this together with general changes to accounts receivable and accounts payable.

Cash flow from operating activities after changes in working capital amounted to MSEK 20.7 (-73.1) for the January to September 2025 period.

GARO previously paid a deposit to a supplier for materials ordered but not yet called off. The deposit, which is denominated in EUR, remained unchanged during the quarter and amounted to an equivalent of MSEK 43.2 at the end of the period.

Investments for the guarter amounted to net MSEK 1.6 (4.8), of which MSEK 0.6 in the guarter was attributable to product development (2.4). Investments for the January to September 2025 period amounted to MSEK 6.3 (15.4).

During the quarter, right-of-use assets (leases and rental contracts) declined net by MSEK 3.2 (-4.1).

LIQUIDITY AND FINANCIAL POSITION

The Group's net debt at the end of the period amounted to MSEK 269.9 (318.9). The Group's net debt excluding lease liabilities, which is to say effects of IFRS 16, amounted to MSEK 217.8 (254.5). Available liquidity in the Group, including unutilized overdraft facilities, amounted to MSEK 49.5 (59.3) and the equity ratio was 51.5% (47.3).

During the quarter, GARO repaid MEUR 2.5 of the available overdraft facility, after which the previously applicable separate covenants linked to the Group's cash flow ended.

NET SALES, GROUP

OPERATING EBIT, GROUP

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THE GARO SHARE

At the end of the period, the number of shares amounted to 50,000,000 (50,000,000). The average number of shares amounted to 50,000,000 (50,000,000) for the third quarter of 2025. On September 30, 2025, the share price closed at SEK 18.18 (21.90).

In conjunction with the 2025 AGM, a resolution was passed to carry out two directed share issues of a total of 950,000 warrants for senior executives. The program has a three-year term and is expected to contribute to achieving GARO's long-term business plan, strategy and financial targets.

During the second quarter, the President and CEO subscribed for 500,000 warrants, after which members of Group Management subscribed for 225,000 warrants in the third quarter.

Considering that President and CEO Jonas Klarén will terminate his employment at the end of January 2026, GARO has decided to exercise the opportunity to repurchase the 500,000 options issued to him.

EVENTS AFTER THE END OF THE QUARTER

After the end of the quarter, GARO announced that Roger Törnberg will take up the position as Business Development Director. Roger has over 30 years of experience from senior positions at Sonepar/Elektroskandia and will play a key role in strengthening the collaboration between GARO, wholesalers and installers, with the goal of further strengthen GARO's position as the installer's first choice, both for individual components and complete turnkey solutions within power supply.

Asides from the above, until the publication of this report, no other significant events or conditions have occurred, favorable or unfavorable, that would require further disclosures.

NOMINATION COMMITTEE APPOINTED

The Nomination Committee for the 2026 Annual General Meeting comprises; Niklas Bogefors, appointed by Lars Svensson; Tomas Risbecker, appointed by Svolder AB; Rickard Blomqvist, appointed by Volador AB; and Axel Barnekow Widmark in his capacity as Chairman of GARO AB.

Niklas Bogefors has been appointed as Chairman of the Nomination Committee.

ANNUAL GENERAL MEETING

The 2026 Annual General Meeting will take place on May 13, 2026 in Hillerstorp, Sweden. Please visit www.garogroup.se for more information.

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GARO Electrification business area

GARO ELECTRIFICATION KEY FIGURES		Jul-Sep2025	Jul-Sep2024	Jan–Sep2025	Jan–Sep2024	R12	Jan-Dec2024
Net sales	MSEK	196. 7	199.4	606.9	629.4	828.8	851.3
Growth	%	-1	-4	-4	-9	-2	-6
Operating EBIT	MSEK	21.7	20.5	54.2	58.2	80.4	84.4
Operating EBIT margin	%	11.0	10.3	8.9	9.3	9.7	9.9
Investments	MSEK	0.2	2.1	4.2	6.5	5.6	7.9
Depreciation	MSEK	6.1	6.1	18.5	19.1	24.9	25.5
Number of employees		257	283	257	283	271	281
Share of sales by product area	1:
Electrical distribution products	%	69	66	68	64	68	65
Project business	%	26	30	28	31	28	30
Temporary Power	%	5	4	4	5	4	5

For definitions of key figures, see pages 21-23

NET SALES, GARO ELECTRIFICATION

OPERATING EBIT, GARO ELECTRIFICATION

NET SALES AND EARNINGS

During the quarter, net sales in the business area amounted to MSEK 196.7, which was slightly lower than the year-earlier quarter. Sales in Sweden for the quarter were 13% lower compared with the year-earlier quarter. The Nordic region posted growth of 5% and the rest of Europe reported growth of 18%, with sales in Ireland remaining strong in the quarter.

Net sales for the January to September 2025 period amounted to MSEK 606.9 (629.4).

Operating EBIT for the third quarter amounted to MSEK 21.7 (20.5), yielding an operating EBIT margin of 11.0% (10.3). This was the result of growth with strengthened gross margins in Ireland and the UK, which was then partly offset by costs for the ongoing ERP project. Operating EBIT for the January to September period amounted to MSEK 54.2 (58.2) with an EBIT margin of 8.9% (9.3).

EBIT for the third quarter of 2025 amounted to MSEK 20.7 (11.7) and was charged MSEK 1.0 in settlement costs for redundancies.

OPERATIONS

Sales in the Electrical distribution products product area increased 4% year-on-year, while sales in the Project business and Temporary Power product areas decreased by 12% each. However, it should be noted that sales in the Project business product area were sequentially higher in September, and the current order intake indicates that this sequential trend will continue in October. This demonstrates that GARO's seasonal variation pattern –with the fourth quarter of the year normally the strongest for GARO- will also apply for 2025.

The operations in Ireland, the UK and Norway continued to trend positively. By broadening the product program, sales have increased and profitability has improved.

Overall, the assessment is that sales have stabilized at a low level in the Nordic region. GARO is now focused on expanding and broadening its product offering to new market segments, and is continuing to have positive customer dialogs on this topic.

THE MARKET

The market for the new construction of single-family homes and apartments in Sweden remained at a very low level in the first half of 2025. Positive signals such as lower interest rates and falling inflation were overshadowed by negative global uncertainty related to tariffs and escalating conflicts in various parts of the world. There has also been a lack of significant government action to resume housing construction, and GARO's overall assessment is therefore that a real turnaround in housing construction in the Nordic region cannot be expected until 2026. The assessment of the Swedish National Board of Housing, Building and Planning is that the economy will improve slightly from the second quarter of 2026.

When construction accelerates, it will lead to a gradual increase in demand for GARO's products in this business area.

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GARO E-mobility business area

NET SALES AND EARNINGS

During the quarter, net sales in the GARO E-mobility business area amounted to MSEK 54.5 compared with MSEK 70.0 for the same quarter of 2024, which resulted in reduced growth of 22% or MSEK 15. In Sweden, sales declined 23%. Year-on-year sales declined MSEK 2 for the rest of the Nordic region and MSEK 5 for Europe excluding Sweden.

Net sales for the January to September 2025 period amounted to MSEK 175.6 (238.8).

Operating EBIT for the third quarter amounted to MSEK -19.2 (-20.1), yielding an operating EBIT margin of -35.2% (-28.7), and was the result of low sales. Operating EBIT for the January to September 2025 period amounted to MSEK -50.4 (68.8).

EBIT for the third quarter of 2025 amounted to MSEK -22.3 (-59.4) and was charged MSEK 3.1 in settlement costs for redundancies.

OPERATIONS

GARO maintains its belief that destination charging will be an important part of the infrastructure construction in Europe, meaning that EV drivers prefer to charge their vehicles once they reach their destination.

During the quarter, GARO conducted productive dialogs with E.ON and Hyundai, which led to a collaboration in which GARO delivered over 80 LS4s to Hyundai's European factory in the Czech Republic. Dialog also led to an agreement with Sze in Slovakia for GARO to deliver semi-public charging to the Kia factory. These deals are further confirmation of the quality of GARO's chargers for which each individual component is specially selected to provide a robust charger with a low life-cycle cost. The installations also required fiber connectivity to reduce the risk of damage from lightning.

THE MARKET

The market for EV charging - E-mobility - remains complex and challenging. The macroeconomic situation is creating uncertainty among investors, which means many projects are being postponed. Despite these challenges, GARO is successfully turning its market presence and customer focus into tangible business.

In the European market, demand is gradually increasing for public AC charging, not only for cars but also for heavy electric vehicles. GARO's charging solutions meet new regulatory requirements in specific markets, such as the new cybersecurity requirements for charging that have been implemented in the EU. Compliance with these directives is a prerequisite for releasing new products in the market. GARO's chargers are designed to meet current and future requirements.

GARO E-MOBILITY KEYFIGURES		Jul-Sep2025	Jul-Sep2024	Jan-Sep2025	Jan-Sep2024	R12	Jan-Dec2024
Net sales	MSEK	54.5	70.0	175.6	238.8	237.5	300.7
Growth	%	-22	-26	-26	-35	-29	-35
Operating EBIT	MSEK	-19.2	-20.1	-50.4	-68.8	-73.2	-91.6
Operating EBIT margin	%	-35.2	-28,7	-28.7	-28.8	-30.8	-30.5
Investments	MSEK	1.4	2.7	2.1	8.9	4.9	11.7
Depreciation	MSEK	7.2	7.8	21.8	23.5	29.0	30.7
Number of employees For definitions of key figures		117	145	117	145	122	125

For definitions of key figures, see pages 21-24

NET SALES, GARO E-MOBILITY

OPERATING EBIT, GARO E-MOBILITY

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GARO's financial targets

SALES GROWTH

Organic growth will amount to not less than 10% over a business cycle.

TARGET

≥ 10%

EQUITY RATIO

The equity ratio will not be less than 30%.

TARGET

≥ 30%

PROFITABILITY

The EBIT margin for the Group will amount to not less than 10% of net sales over a business cycle.

TARGET

≥ 10%

RETURN

Return on equity will amount to not less than 20% over a business cycle.

TARGET

≥ 20%

DIVIDEND POLICY

GARO's dividend will amount to approximately 50% of the Group's net earnings after tax. The dividend proposal must take into account GARO's long-term dividend potential and the Group's general investment and consolidation requirements.

TARGET

≥ 50%

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Overview

NATURE OF OPERATIONS

GARO develops, manufactures and markets innovative products and systems for the electrical installations market under its own brand. Operations are carried out in several countries, with the Group organized in two business areas: GARO Electrification and GARO E-mobility. GARO's business concept is to, with a focus on innovation, sustainability and design, provide profitable complete solutions for the electrical industry.

SEASONAL VARIATIONS

GARO's operations are, to a certain degree, subject to seasonal variations. GARO's sales are generally stable from one quarter to the next, but can fluctuate monthly within the quarter. Sales can be somewhat lower during the vacation months (July–August) and from December to January. During periods of high production, GARO is normally tied up in working capital. Cash and cash equivalents are freed from working capital after the busy season, when the finished products have been installed in customers' facilities and invoices have been paid.

SUSTAINABILITY WORK

GARO's sustainability work is based on three cornerstones that are all part of the strategic framework: Climate, Circular economy and Responsible business. The strategy forms the basis for responding to regulatory requirements, market expectations, growth and return for investors, while strengthening GARO's social capital by attracting, encouraging and retaining employees. For more information about GARO's goals for a more sustainable future, refer to GARO's 2024 Annual Report, pages 28–41.

RISKS AND UNCERTAINTIES

As a geographically diversified international Group, GARO is exposed to a number of strategic, business-related and financial risks. Strategic risk in GARO is defined as risks that emerge that have a long-term impact on operations such as changes in technology and the macroeconomic trend. Business risks can be divided into operational, sustainability, compliance as well as legal and commercial risks. Financial risks include currency risk, interest-rate risk, raw material price risk, tax risk, etc. All of these risk areas could negatively impact the business in both the short and the long term, but they can also create business opportunities if they are well managed.

Current macroeconomic situation and geopolitical worries create uncertainty that makes it difficult to predict how demand and cost base may be affected. At the time of the writing, the trade tariffs announced by the US are not expected to have any noticeable effect on GARO, not doing business in the US.

More detailed information on GARO's risks and uncertainties can be found in Note 3 on pages 60–63 of the 2024 Annual Report. The Annual Report is available at www.garogroup.se.

BUSINESS AREAS

GARO divides its operations into two business areas and segments: GARO Electrification and GARO E-mobility.

RELATED-PARTY TRANSACTIONS

Related-party transactions take place in accordance with the principles described in the 2024 Annual Report. There were no related party transactions during the year except for the payment of fees to the Board of Directors, the remuneration of senior executives and transactions with Group companies.

EMPLOYEES

The number of employees in the Group on September 30, 2025 was 374 (428) excluding persons dismissed and exempted from work (406 on December 31, 2024).

ACCOUNTING POLICIES

GARO applies the International Financial Reporting Standards (IFRS) as adopted by the EU, the Swedish Annual Accounts Act (1995:1554) and the recommendations and statements of the Swedish Corporate Reporting Board. This interim report has been prepared in accordance with IAS 34 Interim Financial Reporting. Disclosures in accordance with IAS 34, 16A are presented in the financial statements and their notes in the interim information on pages 1–20, which constitute an integrated part of this financial statement. In addition, disclosures according to IAS 34.16A and IFRS 5 are presented in the financial statements and their notes as well as other parts of the interim report.

GARO has a property for sale and assesses that it is highly probable that the property will be sold within 6–12 months, thereby fulfilling the criteria for reporting in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations. The fact that a group of assets and liabilities is classified as held for sale means that their carrying amount will be essentially recovered through a sale transaction and not through use. All assets included in the group are presented on a separate line among assets and all of the group's liabilities are presented on a separate line among liabilities. The group is valued as the lowest of the carrying amount and the fair value less selling expenses.

The Parent Company's interim report was prepared in accordance with Chapter 9 of the Annual Accounts Act and the Swedish Corporate Reporting Board's recommendation RFR 2.

GARO AB applies the same accounting policies as in the most recent Annual Report.

AUDITORS' STATEMENT

This interim report was reviewed by the company's auditors, refer to page 12.

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Auditor's Review Report

GARO AB (publ), Corp. ID. No. 556051-7772

Introduction

We have reviewed the condensed interim financial information (interim report) of GARO AB (publ) as of September 30, 2025, and the nine months period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Swedish Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements, ISRE 2410 Review of Interim Financial Statements Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing standards in Sweden.

The procedures performed in a review do not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not prepared, in all material respects, in accordance with IAS 34 and the Swedish Annual Accounts Act regarding the Group, and in accordance with the Swedish Annual Accounts Act regarding the Parent Company.

Jönköping on November 14, 2025

Ernst & Young AB

Carolina Timén

Authorized Public Accountant

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

Amount in MSEK	Jul-Sep 2025	Jul-Sep 2024	Jan-Sep 2025	Jan-Sep 2024	R12	Jan-Dec 2024
Operating income
Net sales	251.3	269.4	782.5	868.3	1,066.3	1,152.0
Other operating income	1.0	-0.2	5.5	0.5	5.7	0.7
Total operating income	252.2	269.2	788.0	868.8	1,072.0	1,152.7
Capitalized production costs	0.1	0.5	0.5	2.3	1.3	3.1
Operating expenses
Raw materials and consumables	-144.2	-194.4	-431.2	-529.1	-575.7	-673.6
Other external expenses	-34.2	-41.0	-113.2	-130.7	-160.3	-177.8
Personnel expenses	-62.1	-63.3	-206.8	-222.4	-283.1	-298.8
Other operating expenses	0	-5.2	-0.3	-5.2	-0.3	-5.1
Depreciation/amortization of tangible and intangible assets	-13.4	-13.8	-40.2	-42.6	-53.8	-56.2
EBIT	-1.6	-48.0	-3.1	-58.9	0.1	-55.6
Result from financial items
Net financial expenses	-3.9	-3.2	-12.0	-8.5	-14.8	-11.3
Loss before tax	-5.6	-51.2	-15.1	-67.5	-14.7	-66.9
Income tax	1.1	9.3	2.1	8.8	0.1	6.8
Net income	-4.5	-41.9	-13.0	-58.6	-14.6	-60.1
Other comprehensive income:
Items that may be reclassified to the income statement
Translation differences	-1.5	4.3	-6.2	3.0	-3.1	6.1
Other comprehensive income, net	-1.5	4.3	-6.2	3.0	-3.1	6.1
Total comprehensive income for the period Net income and total comprehensive income for the period are entirely attributable to shareholders of the Parent Company's	-6.0	-37.6	-19.2	-55.6	-17.7	-54.0
Key ratios per share
Average number of shares	50,000,000	50,000,000	50,000,000	50,000,000	50,000,000	50,000,000
Loss per share, before and after dilution, SEK	-0.09	-0.84	-0.26	-1.1 7	-0.29	-1.20

{13}------------------------------------------------

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

Amount in MSEK	Sep 30,2025	Sep 30,2024	Dec 31,2024
ASSETS
Fixed assets
Intangible assets	111.3	128.6	126.9
Tangible assets	249.6	268.1	266.7
Financial assets	0.3	0.4	0.3
Other assets	28.7	17.3	19.9
Total fixed assets	389.9	414.4	413.8
Current assets
Inventories	318.3	374.1	376.1
Accounts receivable	246.6	282.9	232.2
Other current receivables	81.5	77.5	68.6
Cash and cash equivalents	11.4	15.4	16.5
Total current assets	657.8	749.9	693.4
Assets for sale	0	7.3	4.9
TOTAL ASSETS	1,047.7	1,171.6	1,112.1

Changes to the company's structure (divestment of long-term investment) GARO previously had a small property for sale in Gnosjö. The property has a carrying amount of MSEK 4.9 with corresponding borrowings of MSEK 3.4. The property is assessed to have a market value corresponding to the carrying amount.

In light of the prevailing market conditions, it has proven difficult to sell the property in the municipality at the desired price. As such, GARO has decided to take the property off the market and wait for a more favorable property market.

Amount in MSEK	Sep 30,2025	Sep 30,2024	Dec 31,2024
EQUITY AND LIABILITIES
Share capital	20.0	20.0	20.0
Other reserves	13.7	16.8	19.9
Other contributed capital	4.2	1.5	1.5
Other equity including net income for the period	501.1	515.5	514.1
Total equity	539.0	553.8	555.5
Long-term liabilities
Liabilities to credit institutions	63.6	0	68.9
Lease liabilities	36.4	48.0	46.0
Other provisions	6.5	7.6	8.6
Deferred tax liabilities	0	0	0
Total long-term liabilities	106.5	55.6	123.5
Short-term liabilities
Liabilities to credit institutions	165.6	266.6	166.6
Lease liabilities	15.7	16.4	16.6
Accounts payable	109.3	147.5	127.2
Other short-term liabilities	111.6	128.3	119.3
Total short-term liabilities	402.2	558.8	429.7
Liabilities directly attributable to assets for sale	0	3.4	3.4
TOTAL EQUITY AND LIABILITIES	1,047.7	1,171.6	1,11 2. 1

{14}------------------------------------------------

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Equity attributable to shareholders in the Parent Company Amount in MSEK	Sharecapital	Reserves	Othercontributed capital	Retainedearnings	Totalequity
Equity at January 1, 2024	20.0	13.8	1.5	574.2	609.5
Net loss for the period				-58.6	-58.6
Other comprehensive income for the period		3.0		0	3.0
Closing equity, September 30, 2024	20.0	16.8	1.5	515.5	553.8
Equity at January 1, 2025	20.0	19.9	1.5	514.1	555.5
Net loss for the period				-13.0	-13.0
Other contributed capital			2.7		2.7
Other comprehensive income for the period		-6.2		0	-6.2
Closing equity, September 30, 2025	20.0	13.7	4.2	501.1	539.0

{15}------------------------------------------------

CONDENSED CONSOLIDATED CASH-FLOW STATEMENT

Amount in MSEK	Jul-Sep2025	Ju⊢Sep2024	Jan-Sep2025	Jan-Sep2024	R12	Jan-Dec2024
Cash flow from operating activities
EBIT	-1.6	-48.0	-3.1	-58.9	0.1	-55.6
Depreciation/amortization and impairment	13.4	13.9	40.2	42.6	53.8	56.2
Interest paid/received, income tax and adjustment for non-cash items	-6.7	46.1	-22.2	38.9	-32.9	28.1
Cash flow from operating activities before changes in working capital	5.1	12.0	14.9	22.6	21.0	28.7
Change in working capital
Increase(-)/decrease(+) in inventories	18.3	6.9	45.9	4.4	28.6	-12.9
Increase(-)/decrease(+) in operating receivables	-18.1	2.0	-22.2	-33.1	30.4	19.5
Increase(+)/decrease(-) in operating liabilities	5.7	-41.0	-1 7 .9	-67.0	-23.9	-7 1.1
Cash flow from operating activities	11.0	-20.1	20.7	-73.1	56.1	-35.8
Investing activities
Investments in intangible assets	-0.6	-2.4	-1.6	-5.6	-4.5	-8.5
Investments in subsidiaries	0	0	0	0	0	0
Investments in tangible assets	-1.0	-2.4	-4.7	-9.7	-6.1	-11.1
Disposal of tangible assets	0	0	0	0	2.5	2.5
Cash flow from investing activities	-1.6	-4.8	-6.3	-15.4	-8.1	-1 7 .1
Financing activities
Net borrowing/amortization of loans	-5.9	23.1	-8.6	65.3	-38.3	35.6
Amortization of lease liability	-4.1	-4.4	-12.9	-13.1	-17.2	-17.5
Warrant liquidity received	0.9	0	2.7	0	2.7	0
Cash flow from financing activities	-9.1	18. 7	-18.8	52.2	-52.8	18.1
Cash flow for the period	0.3	-6.2	-4.4	-36.2	-4.8	-34.8
Currency effect in cash and cash equivalents	0.1	0.2	-0.7	1.6	0.8	1.3
Cash and cash equivalents, start of the period	11.2	21.4	16.5	50.0	15.4	50.0
Cash and cash equivalents, end of the period	11.4	15.4	11.4	15.4	11.4	16.5

{16}------------------------------------------------

CONDENSED PARENT COMPANY INCOME STATEMENT

The Parent Company's operations comprise sales in the product area Electrical distribution products, product development, Group Management, Group-wide functions and the Group's finance function.

Net sales for the Parent Company in the third quarter amounted to MSEK 72.8 (77.3), of which MSEK 11.2 (11.5) comprised internal sales. EBIT for the quarter amounted to MSEK 10.8 (9.0).

Amount in MSEK	Jul-Sep2025	Ju⊢Sep2024	Jan-Sep2025	Jan-Sep2024	Jan-Sep2024
Operating income
Net sales	72.8	7 7.3	224.5	233.7	323.5
Other operating income	14.4	16.9	43.9	64.8	84.6
Total income	87.2	94.2	268.4	298.5	408.1
Operating expenses
Raw materials and consumables	-46.2	-54.0	-143.0	-153.8	-206.8
Other external expenses	-14.7	-14.1	-49.3	-56.0	-82.9
Personnel expenses	-14.6	-15.8	-53.8	-58.5	-78.8
Depreciation/amortization of tangible and intangible assets	-1.0	-1.3	-3.2	-4.1	-5.2
EBIT	10.8	9.0	19.2	26.1	34.4
Result from financial items
Profit/loss from participations in Group companies	-0.3	-0.3	-0.7	-0.8	1.8
Net interest income and similar items	4.0	5.4	12.6	16.6	22.6
Net interest expenses and similar items	-0.9	-3.1	-8.1	-7.9	-10.3
Profit before tax	13.5	11.0	23.0	34.0	48.5
Appropriations	0.0	0.0	0.0	0.0	-122.6
Income tax	-2.8	-2.3	-4.7	-7 .0	1 7 .3
Net income	10.7	8.7	18.3	27.0	-56.8

The Parent Company does not have any items recognized as other comprehensive income which is why total comprehensive income corresponds to net income.

{17}------------------------------------------------

CONDENSED PARENT COMPANY BALANCE SHEET

Amount in MSEK	Sep 30, 2025	Sep 30, 2024	Dec 31, 2024
ASSETS
Fixed assets
Intangible assets	3.4	8.2	3.0
Tangible assets	19.2	19.2	18.6
Participations in Group companies	101.5	102.9	102.6
Other financial assets	77.6	129.7	93.9
Total fixed assets	201.7	260.0	218.1
Current assets
Inventories	25.5	21.9	26.0
Accounts receivable	67.4	78.8	67.9
Other receivables	326.1	374.8	376.0
Cash and bank balances	0	0	0
Total current assets	419.0	475.5	469.9
TOTAL ASSETS	620.7	735.5	688.0
EQUITY AND LIABILITIES
Share capital	20.0	20.0	20.0
Fund for internal development expenses	2.2	29.5	2.2
Statutory reserve	2.6	2.6	2.6
Non-restricted equity including net income for the period	307.4	343.0	286.5
Total equity	332.2	395.1	311.3
Provisions	1.1	1.2	1.1
Long-term liabilities
Liabilities to credit institutions	10.9	0.0	14.5
Total long-term liabilities	10.9	0.0	14.5
Short-term liabilities
Short-term interest-bearing liabilities	162.6	208.0	162. 7
Short-term non-interest-bearing liabilities	113.9	131.2	198.4
Total short-term liabilities	276.5	339.2	361.1
TOTAL EQUITY AND LIABILITIES	620.7	735.5	688.0

The Parent Company does not have any items recognized as other comprehensive income which is why total comprehensive income corresponds to net income.

{18}------------------------------------------------

SALES AND EBIT BY BUSINESS AREA

	GARO Elec	trification	GARO E-	mobility	Elimine	ation	Gro	up
Business area information	Q32025	Q32024	Q32025	Q32024	Q32025	Q32024	Q32025	Q32024
Income
Total external income	248.3	258.1	92.7	115.8	-89. 7	-104.5	251.3	269.4
Total internal income	-51.5	-58.7	-38.1	-45.8	89.7	104.5	0	0
Income from contracts with customers	196.7	199.4	54.5	70.0	0.0	0.0	251.3	269.4
EBIT	20.7	11.4	-22.3	-59.4			-1.6	-48.0
Net financial expenses							-3.9	-3.2
Income tax							1.0	9.3
Net income							-4.5	-41.9

REVENUE PER CUSTOMER'S GEOGRAPHIC LOCATION (JANUARY-SEPTEMBER)

Business Area	GARC	Electrificat	ion	GARO E-mobility			Total
	2025	2024	growth,%	2025	2024	growth,%	2025	2024	growth,%
Sweden	315.3	365.6	-14	74.3	87.5	-15	389.6	453.0	-14
Nordic region excl. Sweden	80.9	80.4	1	45.3	56.3	-20	126.2	136.7	-8
Europe excl.Nordic region	210. 7	183.5	15	56.0	95.0	-41	266.8	278.6	-4
Total	606.9	629.4	-4	175.6	238.8	-26	782.5	868.3	-10

BUSINESS AREAS

GARO divides its operations into two business areas and segments: GARO Electrification and GARO E-mobility.

QUARTERLY FIGURES

External sales perbusiness area	Q32025	Q22025	Q12025	Q42024	Q32024	Q22024	Q12024	Q42023	Q32023	Q22023	Q12023	Q42022
GARO E-mobility	54.5	60.5	60.6	62.0	70.0	84.4	84.3	93.9	94.6	152.1	122.2	80.6
GARO Electrification	196.7	206.0	204.2	221.8	199.4	221.9	208.2	217.3	209.6	233.9	248.1	261.2
Total Group	251.3	266.5	264.8	283.8	269.4	306.3	292.5	311.2	304.2	386.0	370.3	341.8
EBIT per businessarea	Q32025	Q22025	Q12025	Q42024	Q32024	Q22024	Q12024	Q42023	Q32023	Q22023	Q12023	Q42022
GARO E-mobility	-22.3	-14.2	-17.0	-22.8	-59.4	-24.7	-23.6	-33.0	-15.3	4.5	6.6	-20.9
GARO Electrification	20.7	15.2	14.5	26.1	11.4	20.4	16.9	32.9	20.6	13.7	21.2	29.8
Total Group	-1.6	1.0	-2.5	3.3	-48.0	-4.3	-6.7	-0.1	5.3	18.2	27.8	8.9

ALLOCATION OF NET SALES BY PRODUCT AREA, JANUARY-SEPTEMBER 2025

Electrical distribution products Project business E-mobility

Temporary Power

	Jan-Sep2025	Jan-Sep2024	growth, %
Electrical distribution products	412.9	403.2	2
Project business	169.0	197.2	-14
Temporary Power	25.1	29.1	-14
E-mobility	175.6	238.8	-26
Total	782.5	868.3	-10

{19}------------------------------------------------

GARO GROUP MULTI-YEAR OVERVIEW*

		Jul-Sep2025	Jul-Sep2024	Jan-Sep2025	Jan-Sep2024	R12	2024	2023	2022	2021	2020	2019
Net sales	MSEK	251.3	269.4	782.5	868.3	1,066.3	1,152.0	1,369.9	1,390.5	1,295.8	1,039.8	1,008.1
Growth	%	-7	-11	-10	-18	-10	-16	-1	7	25	3	12
EBITDA	MSEK	11.7	-34.1	37.1	-16.3	53.9	0.6	99.6	188.8	243.0	163.2	134.9
EBITDA margin	%	4.7	-12.7	4.7	-1.9	5.1	0.0	7.3	13.6	18.8	15. 7	13.4
EBIT	MSEK	-1.6	-48.0	-3.2	-58.9	0.1	-55.6	51.1	152.8	207.2	136.2	112.6
EBIT margin	%	-0.7	-17.8	-0.4	-6.8	0.0	-4.8	3.7	11.0	16.0	13.1	11.2
Earnings per share, before and after dilution	SEK	-0.09	-0.84	-0.26	-1.1 7	-0.29	-1.20	0.63	2.41	3.33	1.91	1.71
Equity per share	SEK	10.78	11.08	10.78	11.08	10.78	11.11	12.19	12.28	11.03	8.61	6.86
Dividend per share	SEK	n/a	n/a	n/a	n/a	n/a	n/a	0	0.80	1.40	0.95	0
Dividend	MSEK	n/a	n/a	n/a	n/a	n/a	n/a	0	40.0	70.0	47.5	0
Closing rate, share	SEK	18.18	21.90	18.18	21.90	18.18	23.10	43.52	108.6	216.0	127.0	61.4
Return on equityReturn on capital	%	-2.6	-10.1	-2.6	-10.1	-2.6	-10.3	5.1	20.7	34.0	24.7	26.8
employed,	%	0.0	-8.8	0.0	-8.8	0.0	-8.4	7.9	22.1	39.2	32.2	30.4
Investments	MSEK	1.6	4.8	6.3	15.4	8.4	19.6	108.2	120.1	45.3	45.3	33.4
Depreciation	MSEK	13.4	13.8	40.2	42.6	53.8	56.2	48.6	36.0	35.8	26.9	22.3
Equity ratio	%	51.5	47.3	51.5	47.3	51.5	50.0	50.9	53.2	58.9	57.9	52.2
Net debt	MSEK	269.9	318.9	269.9	318.9	269.9	285.1	222.1	143. 7	-9.4	11.3	45.6
Net debt/EBITDA	multiple	5.0	n/a	5.0	n/a	5.0	497.1	2.2	0.8	0.0	0.1	0.3
Number of employees		374	428	374	428	394	406	478	521	498	412	421

*For definitions, see pages 21-23

{20}------------------------------------------------

Key figures and definitions

The performance measures in this report take into account the nature of the operations and are deemed to provide relevant information to shareholders and other stakeholders and also enable comparability with other companies.

EBIT: Earnings before interest and tax

EBIT margin, %: EBIT as a percentage of net sales for the period

Operating EBIT: Earnings before interest and tax adjusted for non-recurring items

Operating EBIT margin, %: Operating EBIT as a percentage of net sales for the period

Operating expenses: The total of selling expenses, administrative costs, other operating income, other operating expenses, excluding amortization and impairment of acquired intangible assets

Earnings per share, before and after dilution, SEK: Net income for the period divided by the average number of shares at the end of the period

Equity per share, SEK: Equity divided by the number of shares at the end of the period

Return on equity, %: Net income for the past 12 months divided by average equity

Return on capital employed, %: EBIT for the past 12 months divided by capital employed.

Equity ratio, %: Equity as a percentage of total assets

Capital employed, SEK: Total assets less short-term liabilities adjusted for cash and bank balances

Net debt/EBITDA, multiple: Net debt at the end of the period as a percentage of EBITDA for the past 12 months

Number of employees: The number of employees in the Group including contracted staff but excluding persons dismissed and exempted from work.

{21}------------------------------------------------

Alternative performance measures

GARO uses certain financial measures – alternative performance measures – that are not defined in the rules for financial reporting that GARO applies. The goal of these performance measures is to create a better understanding of how the operations are performing. Investors should view these financial measures as a supplement rather than a replacement of financial reporting in accordance with IFRS. It must be stressed that these alternative performance measures, as defined, are not entirely comparable with performance measures of the same name used by other companies.

EBIT and EBITDA before and after adjustment of non-recurring costs (operating EBIT)

In 2025, GARO recognized settlement costs of MSEK 7.0 for outgoing employees. MSEK 3.9 of these costs pertained to GARO Electrification, while MSEK 3.1 pertained to GARO E-mobility. Inventories of the earlier generation of wall boxes as well as development expenditure for an older, outgoing DC range were impaired in the third quarter of 2024.

	Jul-Sep		Jul-Sep		Jan-Sep		Jan-Sep				Jan-Dec
Amount in MSEK	2025	%	2024	%	2025	%	2024	%	R12	%	2024	%
EBITDA	11.7	4.7	-34.1	-12.7	37.1	4.7	-16.3	-1.4	53.9	5.1	0.6	0
Non-recurring costs	+4.1		+48.4		+7.0		+48.4		+7.0		0.0
Impairment of inventories and development
expenditure	0		0		0		0		0		+48.4
Operating EBITDA	15.8	6.3	14.3	5.3	44.1	5.6	32.1	3.7	60.9	5.7	49.0	4.3

	Jul-Sep		Jul-Sep		Jan-Sep		Jan-Sep				Jan-Dec
Amount in MSEK	2025	%	2024	%	2025	%	2024	%	R12	%	2024	%
EBIT	-1.6	-0.7	-48.0	-17.9	-3.2	-0.4	-58.9	-6.8	0.1	0	-55.6	-4.8
Non-recurring costs	+4.1		+48.4		+7.0		+48.4		+7.0		0.0
Impairment of inventories and development expenditure	0		0		0		0		0		+48.4
Operating EBIT	2.5	1.0	0.4	0.1	3.8	0.5	-10.5	-1.2	7.1	0.7	-7.2	-0.6

{22}------------------------------------------------

Organic growth: Organic growth with adjustments for currency effects from operations in currencies other than SEK. This performance measure is expressed as a percentage of the preceding period's net sales.

CHANGE IN NET SALES	Jul-Sep2025 (MSEK)	Jul-Sep2025 (%)
Preceding quarter/year	269.4
Organic sales/growth	-17.8	-7
Currency effects	-0.3	0
Net sales from acquisitions	0
Recognized growth	-18.1	-7

EBITDA: A measure of EBIT before interest, taxes, depreciation, and amortization

EBITDA margin, %: EBITDA as a percentage of net sales for the period.

Amount in MSEK	Jul-Sep 2025	Jul-Sep 2024
Recognized EBIT	-1.6	-48.0
Reversal of depreciation/amortization	13.4	13.9
EBITDA	11.7	-34.1

Net debt: Net debt is defined by how large financial borrowings are in the company in absolute terms less cash and cash equivalents. The performance measure is defined as interest-bearing liabilities, lease liabilities in accordance with IFRS 16, less interest-bearing assets including cash and cash equivalents.

This measure is used by Group Management to monitor and analyze the debt trend in the Group and evaluate the Group's refinancing requirements.

Amount in MSEK	Jan-Sep2025	Jan–Sep2024
Non-current interest-bearing liabilities	63.6	0
Shortterm interest-bearing liabilities	165.6	269.9
Lease liability as defined under IFRS 16	52.1	64.4
Less cash and cash equivalents	-11.4	-15.4
Net debt	269.9	318.9
Net debt in relation to total assets (%)	25.7	27.2

Net debt excluding IFRS 16: Interest-bearing liabilities excluding lease liabilities in accordance with IFRS 16, less interest-bearing assets including cash and cash equivalents

This measure is used by Group Management to monitor and analyze the debt trend in the Group and evaluate the Group's refinancing requirements.

Amount in MSEK	Jan–Sep2025	Jan-Sep2024
Non-current interest-bearing liabilities	63.6	0
Shortterm interest-bearing liabilities	165.6	269.9
Lease liability as defined under IFRS 16	52.1	64.4
Less cash and cash equivalents	-11.4	-15.4
Reversal of Lease liability as defined under IFRS 16	-52.1	-64.4
Net debt excluding IFRS 16	217.8	254.5

{23}------------------------------------------------

Working capital: GARO's working capital comprises a major part of the value in the balance sheet for which the performance measure is defined as the total of current assets less cash and cash equivalents less short-term non-interest-bearing liabilities, all calculated at the end of the period.

The measure is used by management to optimize the Group's cash generation.

Amount in MSEK	Jan-Sep2025	Jan-Sep2024
Current assets	657.8	749.9
Less cash and cash equivalents	-11.4	-15.4
Less shortterm non-interest-bearing liabilities	-221.0	-275.8
Working capital on balance-sheet date	425.4	458.7
Working capital in relation to sales (R12), %	39.9	38.9

R12: A summary of the outcome of the past 12 months

Number of employees: The number of employees at the end of the period excluding persons dismissed and exempted from work.

Earnings per share: None of the Group's outstanding warrant programs are expected to result in material future dilution.

Return on capital employed: This performance measure is defined as EBIT for the past 12 months divided by capital employed, all calculated at the end of the period.

This measure is used by management to gauge how effectively GARO uses its capital to generate profit and to assess long-term profitability and efficiency.

Amount in MSEK	Jan-Sep2025	Jan-Sep2024
EBIT for the past 12 months	0.1	-59.0
Capital employed at the end of the period	634.1	665.9
Return on capital employed, %	0.0	-8.8

Return on equity: This performance measurement is defined as net income for the past 12 months divided by average equity, all calculated at the end of the period.

The measure is used to assess the profitability and efficiency of the operations, and whether GARO can be considered a favorable investment for its owners compared with other alternatives.

Amount in MSEK	Jan-Sep2025	Jan-Sep2024
Net income for the past 12 months	-14.5	-59.0
Equity at the beginning of the period	555.5	609.5
Equity at the end of the period	539.0	553.8
Average equity	547.2	581.6
Return on equity, %	-2.6	-10.1

{24}------------------------------------------------

Economic information

INVITATION TO PRESENTATION FOR THE PRESS AND ANALYSTS

On November 14, 2025, at 9:30 a.m., the President and CEO Jonas Klarén and CFO Helena Claesson will present the report and respond to questions in a teleconference.

Telephone numbers: Sweden: +46 (0)20 089 0141

International: +44 (0)207 107 0613

The presentation used during this teleconference can be downloaded at www.garogroup.se, under Investor Relations. A recording of the teleconference will be available on the company's website afterwards.

FOR MORE INFORMATION, PLEASE CONTACT:

Jonas Klarén, President and CEO: +46 70 765 90 34

Helena Claesson, CFO: +46 70 676 07 50

FINANCIAL CALENDAR

Year-end report 2025 February 19, 2026

First quarter of 2026 May 13, 2026

2026 Annual General Meeting May 13, 2026

FORWARD-LOOKING INFORMATION

Certain statements in this report are forward-looking and the actual outcome may be significantly different. In addition to the specifically mentioned factors, other factors may have a material impact on the actual outcome. Such factors include, but are not limited to, the general economic climate, exchange-rate fluctuations and changes in interest rates, political developments, the impact of competing products and the prices of such products, difficulties associated with product development and commercialization, technical problems, interruptions to the access to raw materials and credit losses attributable to major customers.

GARO IN BRIEF

GARO develops and manufactures innovative products and solutions within electricity and E-mobility. GARO targets both professionals and end users. GARO's brand is your guarantee for electrical safety, user-friendliness and sustainability. GARO was founded in 1939 in Gnosjö, in Småland, in southern Sweden where a distinct entrepreneurial spirit originates from and where GARO's head office remains. Today, GARO is an international Group with operations in several countries. The foundation of GARO's work is all of the knowledge and experience that the Group has collected since 1939 until today.

This information is such information that GARO AB is obligated to publish in accordance with the EU Market Abuse Regulation and the Swedish Securities Market Act. The information was published by the abovementioned contact persons on November 14, 2025, at 8:30 a.m. CET.