Instalco

Quarterly Report • Apr 29, 2025

Instalco

Interim report January – March 2025

Cash flow remains strong despite challenging market

January – March 2025

Key figures¹

• Net sales increased by 0.3 percent and amounted to SEK 3,293 (3,283) million. Organic growth, adjusted for currency effects, amounted to 0.2 (-8.1) percent.
• EBITA amounted to SEK 123 (231) million, corresponding to an EBITA margin of 3.7 (7.0) percent.
  • o Adjusted EBITA amounted to SEK 187 million, which corresponds to an adjusted EBITA margin of 5.7 percent after non-recurring costs in the quarter of SEK 64 million.
• Operating profit (EBIT) amounted to SEK 88 (190) million.
  • o Adjusted EBIT amounted to SEK 152 million, after non-recurring costs in the quarter of SEK 64 million.
• Cash flow from operating activities amounted to SEK 223 (198) million.
• Earnings per share before dilution were SEK 0.16 (0.37) and after dilution were SEK 0.16 (0.37).
• One acquisition was made during the period, which, on an annual basis, contributes an estimated total sales of SEK 55 million.

	Jan-Mar	Jan-Mar		Rolling	Jan-Dec
AMOUNTS IN SEK M	2025	2024	∆%	12 months	2024
Net sales	3,293	3,283	0.3	13,700	13,690
EBITDA	222	321	-30.8	1,180	1,278
EBITA	123	231	-46.8	771	879
EBITA margin, %	3.7	7.0		5.6	6.4
Operating profit (EBIT)	88	190	-53.6	588	690
Profit/loss before tax	63	138	-54.8	410	486
Cash flow from operating activities	223	198	12.1	970	946
Net debt/EBITDA, times	2.9	2.4		2.9	2.7
Cash conversion (12-Month rolling),%	96	91		96	89
Earnings per share before dilution, SEK	0.16	0.37	-58.0	1.09	1.31
Earnings per share after dilution, SEK	0.16	0.37	-58.0	1.09	1.31
Order backlog	9,019	8,921	1.1	9,019	9,002

¹ For definitions of alternative key figures as per the ESMA guidelines, please see the definitions of key figures at instalco.se.

CEO Comments

The market remained challenging during the first quarter of 2025, although activity levels were higher. For the first time since autumn 2023, we are reporting positive organic growth, primarily driven by our industrial offering. Our order backlog has also remained stable. This highlights the benefits of our strategic focus on small to medium-sized projects, which enable agile responses and well-informed decision-making.

For some time, we have faced the challenge of fewer available projects and intense competition, accompanied by downward pressure on prices. We have also remained steadfast in our strategy of prioritising profitability over volume. However, in weaker market conditions, the pool of suitable projects becomes more limited. All of this is reflected in our margin, which falls far short of our ambition.

We recently completed a number of larger projects, which have not yet been fully replaced with new ones due to the timing of the order backlog. This has resulted in temporarily lower capacity utilisation in some subsidiaries during the quarter. When subsidiaries are operating below capacity it has a direct and immediate effect on the Group's earnings, primarily in the Rest of Nordics segment.

There have also been instances of customer bankruptcies in Sweden, which have had ripple effects such as project delays and suboptimal capacity utilisation. One example of this is the bankruptcy of Northvolt, which resulted in a write-down we recognise as a non-recurring cost during the quarter of SEK 64 million. We are continuously striving to limit our exposure to individual projects and counterparties. Our business model offers a degree of protection from the risks associated with major individual customers, the single largest customer in 2024 accounted for less than four per cent of our sales.

The action plan announced in December 2024 is progressing as planned and we introduce additional measures for subsidiaries requiring further support.

Stability that facilitates continued selective growth

Operating cash flow has improved thanks to focused efforts on working capital, with particular emphasis on project terms and follow-up. The leverage is higher than our own set target. Nevertheless, we still have a healthy margin to the covenants in our loan agreements. We have a stable financial position and expect the leverage ratio to normalise quickly once market conditions improve, supported by our focus on profitability and working capital, as well as our conservative approach to capital allocation.

Our ability to operate in line with our strategy is therefore not affected. We are today very selective with acquisitions and in March we welcomed the strategically important electrical installation company Alf Näslunds Eltjänst to Instalco. The acquisition makes us fully multidisciplinary in Örnsköldsvik, which is a region showing positive signs of significant future investments.

Present in Germany

Our representation in Germany is progressing according to plan and we completed our first investment during the quarter in the German installation group, Fabri AG. The collaboration with Fabri has thus far gone very well and we are already reaping the benefits of knowledge exchange between our companies. Fabri acquired two new units since the announcement of our minority

stake in the Group and it now consists of 14 installation companies throughout Germany.

Road to Germany – part of our work with sustainability

For the third year in a row and within the scope of our social sustainability work, we are running the Instalco training which this year is also called Road to Germany. It is offered to all employees of the Group and it is adapted to our decentralised business model. The training is available digitally via an app, which makes for easy access during a run, jog or walk. The Instalco training is a way of boosting our health, well-being, camaraderie and the Instalco spirit. It is also how we are, metaphorically, getting closer to Germany – one kilometre at a time.

Our focus is on what we can impact

External forecasts indicate that the construction sector has passed its weakest period. Despite this, global conditions remain marked by instability and uncertainty. As a local actor, we are not directly affected by increases in world trade tariffs, but it is difficult to assess the impact of both interest rates and geopolitical tensions on the economy and customers' willingness to invest.

Against this backdrop, we focus on what we can influence – being close to our customers, acting quickly in our decisions and working efficiently at every stage to reduce costs and increase the value of projects. The work we do behind the scenes lays the foundation for long-term, value-creating growth. Our clear strategy and decentralised structure empower us to make well-grounded, responsible decisions with the customer at the centre. We remain confident that this approach is the right way forward. By staying true to our core, even in challenging market conditions, we are building Instalco into a company that will stand the test of time.

Robin Boheman CEO

Performance of the Instalco Group

The Nordic market of installation services

There remains a strong underlying need for installations and services, particularly when it comes to energy-efficiency and resource-saving solutions. However, market conditions differ between geographic areas. Short-term uncertainty remains, driven by increasing costs and restrained investment activity. Nonetheless, anticipated interest rate reductions are fostering a more optimistic sentiment in certain segments of the market. The demand for service remains steady and the industrial offering continues to develop positively. The market is driven by long-term trends like electrification, digitalisation, ageing property holdings, population growth and energy shortages. There is also a growing demand for Instalco's core offering that is being driven by the green transition, green industrial investments and rising investments that are being made in both security, defence and healthcare.

Order backlog

Order backlog at the end of the period amounted to SEK 9,019 (8,921) million, which is an increase of 1.1 percent. Organically, for comparable units, the order backlog increased, adjusted for currency effects, by 2.1 percent. The order backlog of acquired companies contributed with a growth of 0.1 percent.

During the quarter, the Instalco subsidiary, Selek, was engaged to deliver and install switchgear at Svensk Kärnbränslehantering's facility in Oskarshamn. This is an assignment that helps ensure the safe, long-term storage of spent nuclear fuel, including the installation and commissioning of electrical infrastructure and control systems. The order value for Instalco is approximately SEK 100 million.

Net sales

First quarter

Sales for the quarter amounted to SEK 3,293 (3,283) million, which is an increase of 0.3 percent. Adjusted for currency effects, the organic growth amounted to 0.2 percent and acquired growth amounted to 0.5 percent. Currency fluctuations only had a marginal impact on net sales.

Earnings

First quarter

Operating profit before amortisation of acquired intangible assets (EBITA) for the period amounted to SEK 123 (231) million, which corresponds to an EBITA margin of 3.7 (7.0) percent.

The bankruptcy of Northvolt has resulted a write-down of accounts receivable in Segment Sweden. This resulted in non-recurring costs of SEK 64 million that impacted EBITA in the quarter. Adjusted for non-recurring costs, EBITA amounted to SEK 187 million, which corresponds to an EBITA margin of 5.7 percent. The

lower margin is attributable to these non-recurring costs, along with the prevailing market situation and project delays.

Operating profit (EBIT) for the quarter amounted to SEK 88 (190) million. Amortisation and impairment of acquired intangible assets amounted to SEK 34 (40) million.

Net financial items for the quarter amounted to SEK -26 (-53) million, of which unrealised value changes amounted to SEK 15 (-7) million, interest expense on leasing amounted to SEK -7 (-15) million and the interest expense on external loans amounted to SEK -30 (-40) million.

Tax for the quarter was SEK -13 (-28) million, which corresponds to an effective tax rate of 21 (20) percent.

Earnings for the quarter were SEK 49 (110) million, which corresponds to earnings per share before dilution of SEK 0.16 (0.37) and earnings per share after dilution of SEK 0.16 (0.37).

Cash flow

First quarter

Cash flow from operating activities amounted to SEK 223 (198) million, of which the change in working capital was SEK 150 (42) million. The Group's working capital fluctuates from one quarter to the next primarily because of fluctuations in these line items: work-in-progress, accounts receivable and accounts payable.

Cash flow from investing activities amounted to SEK -164 (-108) million, of which the acquisition of subsidiaries and businesses amounted to SEK -114 (-105) million and acquisition of shares in the associated company, Fabri AG, amounted to SEK -30 (0) million.

Cash flow from financing activities amounted to SEK -164 (-281) million, of which the net change in loans amounted to SEK -86 (-211) million and amortisation of lease liabilities amounted to SEK -79 (-71) million.

Financial position

Equity at the end of the period amounted to SEK 3,475 (3,551) million, with an equity ratio of 34.1 (33.9) percent.

Cash and cash equivalents at the end of the period amounted to SEK 87 (80) million.

Interest-bearing debt including leasing at the end of the period amounted to SEK 3,565 (3,498) million, of which leasing amounts to SEK 676 (716) million.

As of the end of the period, Instalco's total credit facility, including unutilised credit, amounted to a total of SEK 3,850 (3,850) million, of which SEK 2,850 (2,650) million had been utilised.

Interest-bearing net debt at the end of the period amounted to SEK 3,479 (3,419) million, with a gearing ratio of 106.0 (102.2) percent. Net debt in relation to EBITDA was 2.9 (2.4) times, which is somewhat higher than the target of 2.5 times. At the end of the quarter, the Group had a good margin to the limits of its loan covenants, which are specified for EBITDA/net financial items and interest coverage.

Currency changes impacted interest-bearing net debt by SEK 11 (3) million.

Investments, depreciation and amortisation

Investments in company acquisitions amounted to SEK 114 (105) million during the period. The amount includes settled contingent consideration attributable to acquisitions made in the current and prior years equal to SEK 92 (95) million.

Investment in the associated company Fabri AG amounted to SEK 168 million and it was mainly financed via a targeted new share issue of SEK 138 million.

Net investments in fixed assets for the period amounted to SEK 20 (3) million.

Depreciation/amortisation and impairment of property, plant and equipment and intangible assets amounted to SEK 133 (130) million, of which depreciation of property, plant and equipment amounted to SEK 99 (90) million and amortisation/impairment of intangible assets amounted to SEK 34 (40) million.

Parent Company

The main operations of Instalco AB are head office activities like group-wide management and administration, along with finance and accounting. The comments below pertain to the period 1 January through 31 March 2025.

Net sales for the Parent Company amounted to SEK 5 (6) million. Operating profit was SEK -1 (-1) million. Net financial items amounted to SEK -2 (-2) million. Earnings before taxes were SEK -3 (-3) million and earnings for the period were SEK -3 (-3) million. Cash and cash equivalents at the end of the period amounted to SEK 10 (42) million.

Transactions with related parties

Besides remuneration to senior executives, there were no transactions between Instalco and related parties that had a significant impact on the company's financial position or earnings during the period.

Risks and uncertainties

The Instalco Group is active in the Nordic market and it has a decentralised structure whereby each unit runs its own operations, with a large number of customers and suppliers. The business model limits the aggregated business and financial risks.

Instalco's earnings and financial position, as well as its strategic position, are affected by a number of internal factors that Instalco has control over, as well as a number of external factors where the ability to impact the outcome is limited. The most significant risk factors are the state of economy and market situation, including inflation and interest rates, along with structural changes and competition, which impact the demand for new construction of homes and offices, as well as investments from the public sector and industry. The demand for service and maintenance work is less impacted by these risk factors.

Ongoing geopolitical conflicts do not currently have a direct impact on Instalco's sales or purchases. The indirect effects, such as reduced willingness to invest among customers, potential disturbances in logistics chains and rising prices for raw materials that are not possible to compensate for in our own contracts, could however impact some of the subsidiaries in the Group. We are monitoring developments carefully, but it is currently difficult to assess what future consequences these conflicts could have on the market and economy.

For more information, please see the section on Risks (pages 43- 46) in the 2024 Annual Report.

The Parent Company is indirectly impacted by the aforementioned risks and uncertainties via its function in the Group.

Events after the end of the reporting period Nothing to report.

Operations in Sweden

Market

The Swedish installation market continues to exhibit considerable variation across regions. The level of activity in northern Sweden decreased somewhat compared to last year, although the volumes remain good. At the same time, signs of recovery from low activity levels are emerging in Stockholm and several southern regions of the country. Demand remains weak in central Sweden. Rising costs and ongoing investment caution are influencing market conditions, with new construction being especially affected. The high level of competition persists. Interest in technical consulting services remains, indicating that project preparations are underway, particularly in the public sector and infrastructure. Demand within the industrial sector is generally positive.

Order backlog

Order backlog at the end of the period amounted to SEK 6,631 (6,464) million, which is an increase of 2.6 percent. Organically, for comparable units, order backlog increased by 2.4 percent. The order backlog of acquired companies contributed with growth of 0.2 percent.

For example, the Instalco subsidiary, Intec, was contracted during the quarter to lead design and planning work associated with modernisation of the Fridhemsplan subway station in Stockholm. The aim of the project is to complete the renovation effort that was initiated in 2019. This includes, for example, the demolition of old concrete vaults, rock reinforcement, and the installation of a new ceiling. Intec is responsible for the budget, schedule and risk analyses prior to the planning phase in 2025. Implementation of the work is scheduled to take place during 2028–2029.

Net sales

First quarter

Net sales for the quarter amounted to SEK 2,386 (2,248) million, which is an increase of SEK 137 million. The organic growth amounted to 5.7 percent and acquired growth was 0.4 percent.

Earnings

First quarter

EBITA for the quarter was SEK 99 (177) million, which corresponds to an EBITA margin of 4.1 (7.9) percent. Operating profit (EBIT) amounted to SEK 83 (160) million.

The bankruptcy of Northvolt has resulted a write-down of accounts receivable in Segment Sweden. This resulted in non-recurring costs of SEK 64 million that impacted EBITA in the quarter. Adjusted for non-recurring costs, EBITA amounted to SEK 163 million, which corresponds to an EBITA margin of 6.8 percent and EBIT of SEK 147 million, and is primarily attributable to the prevailing market situation.

Net sales per quarter, SEK m EBITA per quarter, SEK m 0 5,000 10,000 15,000 0 1,000 2,000 3,000 Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1 20 21 22 23 24 25 Net sales by quarter (left axis) Net sales rolling 12 months (right axis)

Key figures Sweden

AMOUNTS IN SEK M	Jan-Mar 2025	Jan-Mar 2024	∆%	Rolling 12 months	Jan-Dec 2024
Net sales	2,386	2,248	6.1	9,564	9,427
EBITA	99	177	-44.2	535	613
EBITA margin, %	4.1	7.9		5.6	6.5
Order backlog	6,631	6,464	2.6	6,631	6,816

Operations in Rest of Nordics

Market

The market in Norway remains stable, with the majority of activity concentrated in and around the major cities. New construction of residential property has tapered off, which has triggered higher competition in other segments. Public sector investments in defence, schools and hospitals are driving demand, along with private sector investments in industry and commercial properties.

Demand in the Finnish market remains low. The level of activity in new construction is restrained, with investment appetite continuing to be dampened by elevated interest rates. Service activities have also been slightly impacted. Demand in industry, data cable expansion and power grid infrastructure is unchanged. Over the longer term, rising investment in the defence and energy sectors is anticipated to stimulate higher levels of demand.

Order backlog

Order backlog at the end of the period amounted to SEK 2,387 (2,458) million, which is a decrease of -2.9 percent. Organically, for comparable units, order backlog increased by 1.3 percent, adjusted for currency effects. The acquired order backlog increased by 0.0 percent.

For example, the Instalco subsidiary Haug og Ruud VVS AS signed an agreement during the quarter as contractor for the installations associated with new construction of Gudbrandsdal Slakteri, which is a slaughterhouse north of Lillehammer. The assignment involves installation of the heating & plumbing, ventilation, electrical and automation systems, with a total order value of approximately NOK 95 million. It is a partnering project with the customer, Gudbrandsdal Slakteri AS, scheduled for completion in 2025.

Net sales

First quarter

Net sales for the quarter amounted to SEK 907 (1,034) million, which is a decrease of SEK 127 million. The organic change, adjusted for currency effects, amounted to -11.6 percent and acquired growth was 0.8 percent.

Earnings

First quarter

EBITA for the quarter was SEK 25 (54) million, which corresponds to an EBITA margin of 2.7 (5.3) percent. Operating profit (EBIT) amounted to SEK 6 (32) million. There was a negative impact on earnings from temporarily lower capacity utilisation in several subsidiaries. This is a result of having completed major projects which, as yet, have not been fully replaced by new ones.

Net sales per quarter, SEK m EBITA per quarter, SEK m

Key figures Rest of Nordics

AMOUNTS IN SEK M	Jan-Mar 2025	Jan-Mar 2024	∆%	Rolling 12 months	Jan-Dec 2024
Net sales	907	1,034	-12.3	4,136	4,263
EBITA	25	54	-54.4	236	265
EBITA margin, %	2.7	5.3		5.7	6.2
Order backlog	2,387	2,458	-2.9	2,387	2,186

Acquisition

Instalco made one acquisition during the period January through March. Acquisition costs for the period amount to SEK 0 (0) million and they are reported among Other operating expenses in the income statement.

Instalco typically applies an acquisition structure that consists of the purchase price and contingent consideration. Payment of contingent consideration is based on future results. Companies that achieve higher profits over a specified period of time will thus be paid a higher amount of contingent consideration. Contingent consideration is paid within three years of the acquisition date and there is a fixed maximum level.

The Group's goodwill is the result of sustained and strategically driven acquisition activities. The amount allocated to goodwill on the acquisition date corresponds to the cost of acquisition less the fair value of the acquired net assets. The value of goodwill is motivated by the earnings capacity of our companies and it

represents the future economic benefits of collaboration between subsidiaries, cross-selling and joint purchasing. The benefits have not, however, been individually identified or reported separately. At the end of the period, the Group's total goodwill amounted to SEK 5,257 (5,322) million. Consolidated goodwill is tested each year for impairment by looking at each cash-generating unit. Other identified surplus values, such as customer relations and the order backlog, have been measured at present value of future cash flows and as a rule, is amortised over a period of 3 to 10 years.

Instalco's acquired net sales over the last 12-month period (RTM), in accordance with the assessed situation on the acquisition date, amounted to SEK 95 million.

For more information on acquisition-related items, see Note 4 Impact of acquisitions and Note 5 Shares in associated companies.

Company acquisitions

Instalco made the following company acquisitions during the period January – March 2025.

				Share of the
				votes and	Net sales, SEK	Number of
Access gained	Acquisition	Discipline	Segment	capital	million¹	employees
March	Alf Näslunds Eltjänst AB	Electrical	Sweden	100%	55	30
Total					55	30

¹ Pertains to the assessed annual sales on the acquisition date, based on the most recent financial year that was subject to audit.

Financial reporting

Condensed consolidated income statement and statement of comprehensive income

AMOUNTS IN SEK M	Jan-Mar 2025	Jan-Mar 2024	Rolling 12 months	Full-year 2024
Net sales	3,293	3,283	13,700	13,690
Other operating revenue	42	56	118	132
Operating income	3,335	3,339	13,818	13,822
Materials and purchased services	-1,539	-1,523	-6,472	-6,456
Other external expenses	-326	-271	-1,216	-1,161
Personnel costs	-1,247	-1,220	-4,942	-4,916
Depriciation/amortisation and impairment of property, plant and equipment and intangible assets	-133	-130	-592	-589
Other operating expenses	-2	-4	-8	-11
Operating costs	-3,247	-3,149	-13,230	-13,133
Operating profit (EBIT)	88	190	588	690
Net financial items	-26	-53	-177	-204
Profit/loss before tax	63	138	410	486
Tax on profit for the year	-13	-28	-108	-122
Profit/loss for the period	49	110	303	364
Other comprehensive income
Exchange rate difference when translating subsidiaries abroad	-94	41	-124	11
Comprehensive income for the period	-44	151	179	375
Comprehensive income for the period attributable to:
Parent Company's shareholders	-52	139	165	356
Non-controlling interests	8	12	15	19
Earnings per share for the period, before dilution, SEK	0.16	0.37	1.09	1.31
Earnings per share for the period, after dilution, SEK	0.16	0.37	1.09	1.31
Average number of shares before dilution¹	264,713,250	264,107,025	264,107,025	264,107,025
Average number of shares after dilution¹	264,713,250	264,107,025	264,107,025	264,107,025

1) Instalco has three outstanding warrants schemes corresponding to a total of 7,300,000 shares.

Condensed consolidated balance sheet

AMOUNTS IN SEK M	31 Mar 2025	31 Mar 2024	31 Dec 2024
ASSETS
Goodwill	5,257	5,322	5,301
Right of use asset	694	740	697
Other non-current assets	1,073	992	943
Total non-current assets	7,024	7,054	6,941
Accounts receivable	1,715	1,906	1,943
Contract assets	796	774	648
Other current assets	572	658	570
Cash and cash equivalents	87	80	208
Total current assets	3,169	3,418	3,368
TOTAL ASSETS	10,193	10,472	10,310
EQUITY AND LIABILITIES
Equity	3,283	3,347	3,209
Non-controlling interests	192	204	173
Total equity	3,475	3,551	3,382
Non-current liabilities	3,263	3,209	3,375
Lease liabilities	406	481	411
Total non-current liabilities	3,669	3,690	3,786
Lease liabilities	270	236	263
Trade payables	1,085	1,065	905
Contract liabilities	545	512	528
Other current liabilities	1,148	1,419	1,446
Total current liabilities	3,049	3,232	3,142
Total liabilities	6,718	6,922	6,928
TOTAL EQUITY AND LIABILITIES	10,193	10,472	10,310
Of which interest-bearing liabilities	3,565	3,498	3,665
Equity attributable to:
Parent Company shareholders	3,283	3,347	3,209
Non-controlling interests	192	204	173

Statement of changes in equity

				Accumulated
		Other		profit or loss		Non
	Share contributed capital capital Note		Translation	incl.profit (loss)		controlling
AMOUNTS IN SEK M			reserve	for the year	Total	interests	Total equity
Opening balance 2025-01-01 ID	1	1,126	10	2,072 3,209		173	3,382
Profit/loss for the period	-	42 42 - -		8	49
Translation effect for the period fo
foreign operations	-	-	-94	-	-94	-1	-95
Comprehensive income for the
period	-	-	-94	42	-52	7	-45
Transactions with owners
Dividends	-	-	-	0	0	-	0
New share issue	0	138	-	-	138	-	138
Change in non-controlling interests	-	-	-	-12	-12	12	1
Total transactions with owners	0	138	-	-12	126	12	139
Closing balance 2025-03-31	1	1,264	-84	2,101	3,283	192	3,475

	Accumulated
	Other			profit or loss		Non
	Share	contributed	Translation	incl.profit (loss)		controlling
	capital Note	capital	reserve	for the year	Total	interests	Total equity
Opening balance 2024-01-01	1	1,126	-1	2,080 3,207		183	3,390
Profit/loss for the period	-	-	-	99	99	12	111
Translation effect for the period fo
foreign operations	-	-	41	-	41	-2	39
Comprehensive income for the
period	-	-	41	99	140	10	150
Transactions with owners
Dividends	-	-	-	0	0	-	0
Change in non-controlling interests	-	-	-	0	0	11	11
Total transactions with owners	0	-	-	0	0	11	11
Closing balance 2024-03-31	1	1,126	40	2,179	3,347	204	3,551

Condensed consolidated cash flow statement

AMOUNTS IN SEK M	Jan-Mar 2025	Jan-Mar 2024	Rolling 12 months	Full-year 2024
Cash flow from operating activities
Profit/loss before tax	63	138	411	486
Adjustments for non-cash items	137	136	654	654
Tax paid	-127	-117	-166	-157
Changes in working capital	150	42	72	-37
Cash flow from operating activities	223	198	970	946
Investing activities
Acquisitions and divestments of subsidiaries and businesses	-114	-105	-206	-197
Investments in other financial assets	-30	-	-30	-
Other	-20	-3	-118	-100
Cash flow from investing activities	-164	-108	-354	-297
Financing activities
Warrants	-	-0	9	9
Acquisition of non-controlling interests	-	-	-200	-200
Dividends	0	0	-179	-179
Net change of loan	-86	-211	107	-18
Amortisation leasing	-79	-71	-326	-318
Cash flow from financing activities	-164	-281	-588	-706
Cash flow for the period	-106	-191	29	-57
Cash and cash equivalents at the beginning of the period	208	267	80	267
Translation differences in cash and cash equivalents	-15	4	-22	-3
Cash and cash equivalents at the end of the period	87	80	87	208

Condensed Parent Company income statement

AMOUNTS IN SEK M	Jan-Mar 2025	Jan-Mar 2024	Rolling 12 months	Full-year 2024
Net sales	5	6	21	21
Operating costs	-7	-6	-21	-21
Operating profit (EBIT)	-1	-1	-1	-0
Net financial items	-2	-2	46	46
Profit/loss after net financial items	-3	-3	45	46
Group contribution received	-	-	9	9
Profit/loss before tax	-3	-3	54	54
Income tax	-	-	-0	-0
Profit/loss for the period	-3	-3	54	54

Condensed Parent Company balance sheet

	31 Mar	31 Mar	31 Dec
AMOUNTS IN SEK M	2025	2024	2024
ASSETS
Financial assets	1,513	1,375	1,375
Deferred tax asset	3	2	3
Total non-current assets	1,516	1,377	1,378
Other current assets	6	96	9
Cash and cash equivalents	10	42	13
Total current assets	16	138	22
TOTAL ASSETS	1,532	1,515	1,400
EQUITY AND LIABILITIES
Equity	1,380	1,358	1,245
Total equity	1,380	1,358	1,245
Non-current liabilities	146	147	145
Current liabilities	5	10	11
Total liabilities	152	156	155
TOTAL EQUITY AND LIABILITIES	1,532	1,515	1,400

Quarterly data

AMOUNTS IN SEK M	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023
Income statement
Net sales	3,293	3,610	3,144	3,656	3,283	3,873	3,310	3,832
Growth in net sales, %	0.3	-6.8	-5.0	-4.6	0.6	7.9	18.7	23.5
EBITDA	222	302	297	359	321	406	327	381
EBITDA margin, %	6.7	8.4	9.4	9.8	9.8	10.5	9.9	10.0
EBITA	123	195	188	265	231	310	246	296
EBITA margin, %	3.7	5.4	6.0	7.2	7.0	8.0	7.4	7.7
Operating profit (EBIT)	88	126	149	224	190	271	194	244
Operating profit/loss (EBIT), %	2.7	3.5	4.7	6.1	5.8	7.0	5.9	6.4
Profit/loss before tax	63	72	106	170	138	239	179	202
Profit/loss for the period	49	34	88	131	111	176	142	162
Equity, provisions and liabilities
Return on equity, %	9.5	11.3	15.7	17.4	18.4	19.6	20.3	18.8
Return on capital employed, %	8.6	10.1	12.5	12.7	13.0	14.1	13.9	13.3
Interest-bearing net debt	3,479	3,458	3,793	3,695	3,419	3,461	3,599	3,372
Gearing ratio, %	106.0	107.8	119.6	116.6	102.2	107.9	114.8	107.6
Net debt/EBITDA, times	2.9	2.7	2.7	2.6	2.4	2.4	2.6	2.5
Key financial performance indicatiors
Working capital	325	314	443	518	360	322	325	370
Equity ratio, %	34.1	32.8	32.0	31.6	33.9	31.6	30.9	31.2
Cash conversion (rolling 12 months), %	96	89	87	89	91	90	88	81
Cash flow from operating activities	222	471	119	158	198	432	119	225
Order backlog
Order backlog	9,019	9,002	8,533	9,058	8,921	8,437	9,201	9,185
Key figures, employees
Average number of employees	6,076	6,139	6,126	6,144	6,188	6,237	6,076	5,474
Number of employees at the end of the period	6,199	6,197	6,208	6,233	6,224	6,282	6,228	6,183
Acquisition-related items
Revaluation of contingent consideration	2	15	10	5	4	14	5	6
Acquisition costs	-0	-1	-1	-0	-0	-2	-1	-3
Total acquisition-related items	2	14	10	5	4	12	4	3
Key figures per share SEK
Average number of shares before dilution	264,713,250	264,107,025	264,107,025	264,107,025	264,107,025	264,107,025	263,996,442	261,520,302
Average number of shares after dilution	264,713,250	264,107,025	264,107,025	264,107,025	264,107,025	264,107,025	263,996,442	264,120,302
Profit/loss for the period attributable to the Parent
Company´s shareholders	42	37	85	124	99	187	137	152
Earnings per share for the period before dilution, SEK	0.16	0.14	0.32	0.47	0.37	0.71	0.52	0.58
Earnings per share for the period after dilution, SEK	0.16	0.14	0.32	0.47	0.37	0.71	0.52	0.58
Cash flow from operating activities per share, SEK	0.84	1.78	0.40	0.60	0.75	1.64	0.45	0.85
Equity per share, SEK	12.40	12.15	12.01	11.99	12.67	12.13	11.89	11.92
Share price at the end of the period, SEK	30.80	32.96	41.00	40.56	42.28	40.90	32.50	53.85

Reconciliation of key figures not defined in accordance with IFRS

The Company presents certain financial measures in the interim report, which are not defined under IFRS. The Company believes that these measures provide useful supplemental information to investors and the company's management, since they allow for the evaluation relevant trends. Instalco's definitions of these measures may differ from other companies using the same terms. These financial measures should therefore be viewed as a supplement, rather than as a replacement for measures defined under IFRS. Presented below are definitions of measures that are not defined under IFRS and which are not mentioned elsewhere in the interim report. Reconciliation of these measures is provided in the table, below. For definitions of key figures, see instalco.se.

Earnings measures and margin measures

AMOUNTS IN SEK M	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023
(A) Net sales	3,293	3,610	3,144	3,656	3,283	3,873	3,310	3,832
(B) EBITDA	222	302	297	359	321	406	327	381
Depreciation/amortisation and
impairment of property, plant and
equipment and intangible assets
(not acquired)	-99	-107	-109	-95	-90	-96	-81	-85
(C) EBITA	123	195	188	265	231	310	246	296
Depreciation/amortisation and
impairment of acquired intangible
assets	-34	-69	-39	-41	-40	-39	-52	-52
(D) Operating profit/loss (EBIT)	88	126	149	224	190	271	194	244
(B/A) EBITDA margin, %	6.7	8.4	9.4	9.8	9.8	10.5	9.9	10.0
(C/A) EBITA margin, %	3.7	5.4	6.0	7.2	7.0	8.0	7.4	7.7
(D/A) Operating profit/loss, (EBIT), %	2.7	3.5	4.7	6.1	5.8	7.0	5.9	6.4

Capital structure

AMOUNTS IN SEK M	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023
Calculation of working capital and working capital in relation to net sales
Inventories	208	209	207	212	213	202	187	185
Accounts receivable	1,715	1,943	1,971	2,076	1,906	2,091	2,029	2,041
Contract assets	796	648	814	768	774	628	885	915
Prepaid expenses and accrued income	226	204	206	234	199	271	255	166
Other current assets	139	157	162	176	246	168	173	178
Trade payables	-1,085	-905	-1,100	-1,088	-1,065	-1,052	-1,279	-1,172
Contract liabilities	-545	-528	-504	-532	-512	-549	-590	-594
Other current liabilities	-292	-606	-612	-515	-526	-642	-652	-558
Accrued expenses and deferred income, including provisions	-835	-808	-701	-814	-875	-795	-684	-791
(A) Working capital	325	314	443	518	360	322	325	370
(B) Net sales (12-months rolling)	13,700	13,690	13,956	14,122	14,298	14,279	13,996	13,474
(A/B) Working capital as a percentage of net sales, %	2.4	2.3	3.2	3.7	2.5	2.3	2.3	2.7

AMOUNTS IN SEK M	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	Q3 2023	Q2 2023
Calculation of interest-bearing net debt and gearing ratio
Non-current, interest-bearing financial
liabilities	3,292	3,396	3,496	3,465	3,155	3,492	3,412	3,399
Current, interest-bearing financial liabilities	274	269	420	247	344	236	293	203
Cash and cash equivalents	-87	-208	-122	-17	-80	-267	-106	-230
(C) Interest-bearing net debt	3,479	3,458	3,793	3,695	3,419	3,461	3,599	3,372
(D) Equity	3,283	3,209	3,172	3,167	3,347	3,207	3,136	3,133
(C/D) Gearing ratio, %	106.0	107.8	119.6	116.6	102.2	107.9	114.8	107.6
(E) EBITDA (12-months rolling)	1,180	1,278	1,382	1,413	1,435	1,416	1,375	1,322
(C/E) Interest-bearing net debt in relation
to EBITDA (12-months rolling)	2.9x	2.7x	2.7x	2.6x	2.4x	2.4x	2.6x	2.5x
Calculation of operating cash flow and cash conversion (12-months rolling)
(F) EBITDA	1,180	1,278	1,382	1,413	1,435	1,416	1,375	1,322
Net investments in property, plant and
equipment and intangible assets	-118	-100	-97	-78	-78	-102	-91	-76
Changes in working capital	72	-37	-83	-80	-46	-47	-80	-172
(G) Operation cash flow (12-months
rolling)	1,134	1,142	1,202	1,255	1,311	1,267	1,204	1,074
(G/F) Cash conversion % (12-months
rolling)	96	89	87	89	91	90	88	81
(H) Earnings for the period (12-months
rolling)	303	364	506	559	590	615	621	557
(H/D) Return on equity, %	9.5	11.3	15.7	17.4	18.4	19.6	20.3	18.8
(I) EBIT	88	126	149	224	190	271	194	244
(J) Financial income	21	27	10	15	13	93	63	27
(K) Total assets	10,193	10,310	10,426	10,521	10,472	10,716	10,775	10,762
(L) Interest-free liabilities	3,152	3,262	3,171	3,480	3,423	3,598	3,741	3,800
(I+J)/(K-L) Return on capital employed, %	8.6	10.1	12.5	12.7	13.0	14.1	13.9	13.3

Notes

Note 1. Accounting policies

The interim report has been prepared in accordance with IFRS that have been adopted by the EU, with the application of IAS 34 Interim Financial Reporting. Disclosures as per IAS 34.16A are provided in the financial statements, notes and other parts of the interim report. The interim report for the Parent Company has been prepared in accordance with the Annual Accounts Act and the Swedish Securities Market Act, which is in accordance with RFR 2 Accounting for Legal Entities. The same accounting policies and bases of computation have been applied in this interim report as in the most recent annual report. New and revised IFRS and IFRIC pronouncements applicable as of the 2025 financial year have not had any significant impact on the consolidated financial statements. The implementation of IFRS 18, which replaces IAS 1 on 1 January 2027 will result in changes to the presentation and disclosures in financial statements.

Note 2. Seasonal variations

The company's revenue, profitability and cash flow are impacted by seasonal variations and holidays, which limits comparability of the various interim periods. Instalco reports its revenue based on the percentage of completion of its projects. Accordingly, in periods with fewer workdays, the revenue of ongoing projects decreases. For example, sales and profitability during the first and third quarters of the year are impacted by the summer vacation period and lower level of activity. The industrial business area also tends to have its lowest level of activity during the first quarter, which is another reason why sales are lower in the quarter. The second quarter coincides with spring and early summer, when there is a higher level of activity than what typically occurs in the first quarter. The highest earnings tend to come in the fourth quarter, when many projects are completed.

Note 3. Segment reporting

The Group's operations are divided into segments based on the geographic location of companies. These segments are Sweden and Rest of Nordics, which are reportable segments for the Group. The portion of operations that does not yet meet the definition of an operating segment is allocated to the row "Group-wide".

Distribution of revenue

	Jan-Mar 2025				Jan-Mar 2024
		Rest of				Rest of
AMOUNTS IN SEK M	Sweden	Nordics	Total	Share	Sweden	Nordics	Total	Share
Service	847	346	1,193	36%	746	297	1,043	32%
Contract	1,539	561	2,100	64%	1,502	738	2,240	68%
Total	2,386	907	3,293	100%	2,248	1,034	3,283	100%

Revenue by segment

			Jan-Mar 2025		Jan-Mar 2024
		Rest of				Rest of
AMOUNTS IN SEK M	Sweden	Nordics	Group-wide	Total	Sweden	Nordics	Group-wide	Total
Net sales	2,386	907	-	3,293	2,248	1,034	-	3,283
Share of the total, %	72%	28%	-	100%	68%	32%	-	100%
EBITA	99	25	-1	123	177	54	-1	231
EBITA margin, %	4.2%	2.7%	-	3.7%	7.9%	5.3%	-	7.0%
Depriciation/amortisation and
impairment of intangible assets	-16	-19	-	-34	-18	-23	-	-40
Net financial items	-8	-2	-16	-26	-1	-1	-51	-53
Profit/loss before tax	75	4	-17	63	158	31	-52	138

Note 4. Impact of acquisitions

Acquisitions had the following impact on the Group's assets and liabilities. The acquisition analysis for the company acquired in 2025 is preliminary. Instalco regards the calculations as preliminary until final figures pertaining to the acquired companies have been received.

AMOUNTS IN SEK M	Fair value
Intangible assets	-
Deferred tax asset	-
Other non-current assets	0
Other current assets	10
Cash and cash equivalents	13
Deferred tax asset	-0
Other liabilities	-10
Total identifiable assets and liabilities (net)	14
Goodwill	20
Consideration paid
Cash and cash equivalents	33
Contingent consideration including settlement via issue in kind	1
Total transferred consideration	33
Impact on cash and cash equivalents
Cash consideration paid	33
Cash and cash equivalents of the acquired units	-13
Total impact on cash and cash equivalents	19
Settled contingent consideration attributable to acquisitions in the current year and prior years	92
Exchange rate difference	2
Total impact on cash and cash equivalents	114
Impact after the acquisition date included in the Instalco Group's net sales and operating

profit/loss

Operating profit (EBIT) -

Impact on net sales and operation profit/loss until the acquisition date if the acquisitions had

been completed on 1 January 2025

Net sales	15
Operating profit (EBIT)	1

Net sales -

In accordance with IFRS, contingent consideration has been measured at fair value via profit or loss. It is classified in Level 3 of the fair value hierarchy and reported under Non-current liabilities and Other current liabilities in the balance sheet. The fair value of other financial assets and liabilities does not differ significantly from the carrying amounts. At the end of the period, the Group's estimated total amount of contingent consideration was SEK 85 million, of which SEK 1 million is for acquisitions made in 2025.

The maximum, non-discounted amount that could be paid to prior owners is SEK 329 million, of which SEK 12 million pertains to acquisitions that were made in 2025. Revaluation of contingent consideration had a net impact on the period of SEK 2 (2) million, which is reported in Other operating income in the income statement.

	Jan-Mar	Jan-Dec
AMOUNTS IN SEK M	2025	2024
Opening carrying amounts	180	349
Revaluation of contingent
consideration	-2	-35
Paid contingent consideration	-92	-151
Added through acquistions made	1
during the period		15
Exchange rate difference	-2	2
Closing carrying amounts	85	180

Changes in reported contingent consideration

Note 5. Shares in associated companies

Associated companies refer to entities over which the Group exercises significant influence, but which are neither subsidiaries nor part of a joint arrangement. Shares in associated companies are accounted for using the equity method and are initially recognised at cost. Acquired assets and liabilities are measured in accordance with the same principles applied to Group companies. The carrying amount of associated companies includes any recognised goodwill and consolidation adjustments.

The Group's share of the post-acquisition profit or loss of associated companies is recognised in the consolidated income statement under the line item "Share of profit or loss of associates". The share of profit or loss is calculated using Instalco's ownership share in the associated company. On 17 March, Instalco finalised its acquisition of a minority stake in Fabri AG, whereby the Group has acquired a 24 percent share in both voting rights and equity. As of Q2 2025, Instalco with thus be reporting "Share of profit or loss of associates" from this financial investment.

Specification of equity interests in associated companies, amounts in SEK m

Company			Profit/loss for the	Share of the votes and	Booked
name	Organization number	HQ	period	capital	value
Fabri AG	HRB 40312	Nürnberg, Germany	-	24%	168
Total					168

Share Information

At the end of the period, the number of shares and votes in Instalco AB amounted to 268,754,752.

Instalco's ten largest shareholders, 2025-03-31

1 Capital Group	23,462,871
2 Per Sjöstrand	22,957,835	8.5%
3 AMF Pension & Fonder	20,146,034	7.5%
4 Cliens Fonder	13,865,978	5.2%
5 Wipunen varainhallinta OY	13,100,000	4.9%
6 Första AP-fonden	13,095,356	4.9%
7 Heikintorppa Oy	12,800,000	4.8%
8 ODIN Fonder	12,255,515	4.6%
9 Swedbank Robur Fonder	10,499,255	3.9%
10 Vanguard	9,354,523	3.5%
Total, ten largest shareholders	151,537,367	56.6%
Other	117,217,385	43.4%
Total	268,754,752	100.0%

The ten largest known shareholders (grouped) of Instalco AB as of 31 March 2025. Source: Monitor by Modular Finance AB. Compiled and processed data from Euroclear, Morningstar and FI.

Outstanding share-related incentive programmes

Instalco has three outstanding warrants scheme corresponding to a total of 7,300,000 shares that are directed at the expanded Group management team, CEOs of subsidiaries and other key individuals of the Group. The warrants have been transferred on market terms at a price that was established based on an estimated market value using the Black & Scholes valuation model calculated by an independent valuation institute. Conditions for subscription price per share in the programmes correspond to 115 percent of the volume-weighted average price during the period of five trading days after each AGM.

			Percentage of		Redemption
Outstanding	Number of	Corresponding	the total number		rate per
programme	options	number of shares	of shares	Price per option	option	Redemption period
2022/2025	2,600,000	2,600,000	1.0%	SEK 7.8	SEK 50.92	22 May 2025 - 16 June 2025
2023/2026	2,350,000	2,350,000	0.9%	SEK 2,09/SEK 7,27	SEK 64.90	22 May 2026 - 16 June 2026
2024/2027	2,350,000	2,350,000	0.9%	SEK 7.74	SEK 44.32	24 May 2027 - 18 June 2027

Signatures

Future reporting dates

AGM 2025 6 May 2025 Interim report January – June 2025 18 July 2025 Interim Report January – September 2025 24 October 2025

Assurance

The Board of Directors and CEO ensure that the year-end report provides a fair view of the Group's operations, position and earnings, and describes significant risks and uncertainties faced by company and the companies belonging to the Group.

Stockholm, 29 April 2025 Instalco AB (publ)

Robin Boheman CEO

This report has not been reviewed by the company's auditors.

Presentation of the report

The report will be presented in a telephone conference/audiocast today, 29 April 09:30 CET via https://instalco.events.inderes.com/q1-report-2025

To participate by phone, register via https://conference.inderes.com/teleconference/?id=50051423

Note

This information is information that Instalco is required to disclose under the EU Market Abuse Regulation. The information was made public by the contact person listed below, on 29 April 2025 at 07:30 CET.

Additional information

Robin Boheman, CEO Christina Kassberg, CFO, christina.kassberg@instalco.se Mathilda Eriksson, Head of IR, mathilda.eriksson@instalco.se +46 (0)70-972 34 29

Instalco in brief

Instalco has a decentralised structure, where operations are conducted in each unit, in close cooperation with customers and with the support of a very streamlined central organisation. The Instalco model is designed to benefit from the advantages of both strong local ties and joint functions.

¹ Cumulative distribution of net sales for the reporting period

Instalco AB (publ) Sveavägen 56C 111 34 Stockholm info@instalco.se