Informes trimestrales y anuales del Grupo Drillcon

INFORME TRIMESTRAL DRILLCON Q4

A STRONG FINISH TO A CHALLENGING YEAR
The final months of the year were marked by sustained high prices for base metals and a clear resurgence in customer investment activity following a period of global political uncertainty. While 2025 began with some volatility in call-offs and continued pricing pressure, Drillcon experienced a steady recovery in demand as the year progressed. A strong fourth quarter signaled a decisive turnaround in both market sentiment and our operational trajectory.

Strategic Progress in Iberia
In the Iberian region, we successfully completed critical organisational restructuring following previous local management. This included further personnel reductions, resulting in extraordinary expenses of approximately SEK 3 million. The legal proceedings involving the former Managing Director in Portugal remain ongoing, with a longer-than-expected judicial process. Full production capacity has now been restored, and the customer has communicated increased volume of requirements. As a result, we initiated the mobilization of additional rigs during the first quarter of 2026.

Strengthening Our Position in a Rapidly Evolving Mining Landscape
Global demand for metals and minerals is projected to remain robust, driven by accelerating electrification, rising defense-industry investment, and a shifting geopolitical environment. Drillcon enters 2026 with a record-high order book of SEK 1.2 billion — the strongest in our history — providing a solid foundation for sustained delivery and growth over the coming years.

In recent years, we have invested heavily in modernizing our fleet to ensure greater flexibility, deeper drilling capabilities, and enhanced precision. While these investments will continue in 2026, they will follow a more balanced pace compared with 2024 and 2025. These upgrades have significantly strengthened our competitive position relative to operators relying on traditional equipment.

We are also expanding our technological leadership through advancements in automation, shaft reinforcement, and data-driven maintenance. For example, our deployment of drones for radar scanning of ventilation shafts is enhancing safety, improving quality, and driving operational efficiencies. As mines grow deeper and more complex, our collaborations with customers are becoming increasingly strategic, particularly in areas related to productivity, safety, and cost optimization. In parallel, rising supplier prices have prompted a comprehensive review of our supply chain to boost resilience and reduce exposure to future market disruptions.

Expanding into New Geographic Markets
Drillcon continues to grow its international footprint through new mining customers and strategic initiatives in Central Europe. This includes securing a new contract in Belgium and implementing an organisational restructuring in Bulgaria to unlock stronger growth potential.

Market Outlook
As we enter 2026, Drillcon stands well-positioned with a highly efficient organization and a modern equipment fleet built for productivity and scalability. Our record order book, combined with a strengthening investment climate in the mining sector, provides a solid platform for continued growth and value creation.

Patrik Rylander - CEO