Interim report January to March 2026

• Net sales increased during the quarter by 10,6 % to 110,7 MSEK (100,0). The organic and currency adjusted growth amounted to 19,1%.
• Adjusted EBITDA increases during the quarter to 15,9 MSEK (-2,1) corresponding to an adjusted EBITDA margin by 14,4 % (-2,1).
• Operating profit was 8,6 MSEK (-11,2), corresponding to an operating margin of 7,7 % (-11,2.
• Profit/loss for the quarter was 4,3 MSEK (-7,6).
• Result per share basic and diluted was 0,3 SEK (-0,52).
• Cash flow from operating activities for the period was 35,7 MSEK (14,2).

Amounts in TSEK	2026 Jan-March	2025 Jan-March	R12M April-March	2025 Full Year
Net sales	110 681	100 044	493 929	483 292
Net sales growth, %	10,6	1,1	17,2	14,9
Gross margin, %	68,6	68,4	69,8	69,8
Adjusted EBITDA	15 901	-2 131	97 081	79 050
Adjusted EBITDA margin, %	14,4	-2,1	19,7	16,4
EBITDA	15 901	-2 131	92 922	74 890
EBITDA margin, %	14,4	-2,1	18,8	15,5
Equity ratio, %	56,9	51,2	56,9	55,3
Cash flow from operating activities	35 695	14 225	80 135	58 665
Net debt/EBITDA, R12M	–	–	0,4	0,9
Number of employees at end of period	146	164	146	151

Comments by the CEO

The first quarter of the year was characterized by stable performance, with solid profitability and strong cash flow, despite a market that remained cautious and volatile. Particularly encouraging is our delivery of organic growth of just over 19 percent, adjusted for currency effects and acquisitions, compared with the same period last year. Overall, the quarter demonstrates the strength of our business model, enabling both growth and profitability even in a more challenging market environment.

Driven by strong growth primarily in our European operations, as well as in the U.S., we generated revenue of SEK 110.7 million in the quarter. This represents an increase of 10.6 percent in absolute terms compared with the first quarter of 2025, and 19.1 percent adjusted for currency effects and acquisitions.

At Group level, the gross margin for the quarter amounted to 68.6 percent (68.4), with adjusted EBITDA of SEK 15.9 million, corresponding to an adjusted EBITDA margin of 14.4 percent. Cash flow from operating activities totaled SEK 35.7 million, and the Group’s solvency ratio stood at 56.9 percent at the end of the period.

This represents a strong performance against a backdrop of market volatility during the quarter, as demand for our solutions is driven by long-term investment decisions. As a result, the market in which we operate is influenced by the unpredictable developments in the global economy and increasing disruptions in supply chains.

A key driver behind our ability to deliver increased revenue with solid profitability despite these external factors is the significant strengthening of our offering in parking and access digitalization. This has also increased the share of our sales to corporate customers (B2B), complementing our core business, which is predominantly focused on the public sector (B2G). As a result, we are somewhat less exposed to uncertainties that tend to slow decision-making processes in the public sector.

We are, however, seeing rising input costs, particularly for semiconductors, partly driven by increased demand linked to AI investments as well as reduced oil supply. Our ambition is to mitigate these challenges through close collaboration with customers and suppliers, as well as through product substitution and further efficiency measures.

During the quarter, we saw that the Group-wide efficiency program implemented in 2025 is delivering results. Total costs for the Group decreased by just over SEK 9 million compared with the same period last year, and annual cost savings are estimated to amount to nearly SEK 13 million. Efforts to reduce working capital remain a key focus. Sequentially, inventory for comparable units increased slightly by approximately 3 percent, but decreased by just under 18 percent compared with the corresponding quarter of the previous year.

Traffic Solutions sales in the first quarter amounted to SEK 94.5 million, representing an increase of approximately 7 percent compared with the corresponding quarter of 2025. During the quarter, Traffic Solutions accounted for 85 percent of total sales, while Rail Solutions represented 15 percent.

We continued to invest in product development to further strengthen the competitiveness of our offering during the quarter, with a particular focus on software, AI and data-driven solutions. Our clearly defined ‘AI First’ strategy is now an integrated part of the entire organization, underpinning development activities as well as internal processes and marketing. With a strong development team and leading expertise in AI, image analysis and sensor technologies, we are well positioned to develop new applications and to meet the growing demand for multi-sensor solutions.

With a total of 50 development engineers, of whom approximately 30 are focused on further advancing AI-based video solutions, and with virtually the entire development team utilizing AI-based coding tools and AI agents, we are developing solutions at the forefront of the industry. During the quarter, investment in product development amounted to approximately 15 percent of the Group’s sales.

After the first quarter of the new year, I can still conclude that demand for our solutions is increasing and that we are therefore confident in our determination to continue strengthening TagMaster’s position, even though uncertainty around tariffs, geopolitics and regulations has contributed to a wait-and-see attitude in the market. We are very well positioned to contribute to solutions to some of the major challenges facing the world’s transportation systems, such as traffic congestion in densely populated areas, increased safety and reduced emissions from traffic.

Jonas Svensson, CEO

Auditor’s review

This report has not been reviewed by the company auditor.

Financial calendar

April 27, 2026: Annual general meeting, Kista
July 17, 2026: Interim report second quarter 2026
October 28, 2026: Interim report third quarter 2026
February 4, 2027: Earnings release 2026

This report and previous reports and press releases are found at the company home page www.tagmaster.com.