We maintained strong business momentum in the third quarter of this year, further reinforcing KONČAR Group’s strong position in regional and European markets. By the end of September, revenue reached EUR 1,095.9 million, representing a 19.9% increase compared to the same period last year. At the same time, EBITDA amounted to EUR 232.9 million with a margin of 21.2%, while net profit reached EUR 230.6 million, equal to 21.0% of sales revenue. Strong order intake further confirms our competitiveness and provides a solid foundation for future growth. In the first nine months, we secured EUR 1.75 billion in new orders, of which EUR 731.2 million was contracted in the third quarter alone. At the same time, the order backlog reached a record EUR 3.3 billion, providing strong visibility of future revenue and a solid basis for continued growth.

At the close of the third quarter of 2026, KONČAR recorded its 27th consecutive quarter of growth across all key financial and business indicators. These results reflect high profitability, the Group’s strong market position, the resilience of its business model, and its ability to capture market opportunities. In addition to strong growth in newly contracted business, another important indicator is that the value of orders already secured for 2027 and the years beyond now stands at EUR 2.76 billion, confirming that current market demand is driven by long-term structural changes in the energy sector.

Performance in export markets continues to play a dominant role in overall business results, with particular emphasis on the European Union as one of the world’s most demanding and competitive markets. During the observed period, revenue generated in international markets amounted to EUR 772.8 million, an increase of EUR 126.8 million or 19.6% compared to the same period last year, accounting for 70.5% of total revenue. Exports to EU markets increased by EUR 112.7 million or 24.6% compared to the first nine months of 2025, reaching EUR 571.4 million and accounting for 73.9% of KONČAR Group’s total exports. By country, the largest export markets were Germany with EUR 182.7 million, Sweden with EUR 101.3 million, and the Netherlands with EUR 68.4 million.

“The first nine months of 2026 were marked by the continuation of strong investment cycles in power infrastructure and further confirmation of the long-term trends shaping the European and global energy markets. To meet long-term demand growth and further strengthen our market position, we launched the largest investment cycle in the history of the Group, creating a foundation for sustainable growth in the years ahead. What encourages us most is not only the level of results achieved, but also the fact that these results are built on long-term market trends, technological expertise, and investments whose full impact is yet to come. As we enter the final months of the year, we remain fully aware of the opportunities the market presents, as well as the responsibility that comes with the Group’s continued growth and the implementation of the investments we have initiated,” said Gordan Kolak, President of the Management Board of KONČAR.

KONČAR’s growth continues to be led by the power transmission and distribution segment, which accounts for more than 70% of total sales revenue and continues to expand its business volume. These results were significantly supported by the achievements of Dalekovod, an important member of the KONČAR Group, which was behind some of the most significant business developments during the period. These include contracts awarded by the German transmission system operator TenneT and the Swedish transmission system operator Svenska kraftnät, with a total value exceeding EUR 435 million. Beyond their financial value, these contracts represent strong confirmation of the Group’s competitiveness in Europe’s most demanding transmission infrastructure markets, as well as the ability of our companies to meet the highest technical, organisational, and quality requirements set by leading European transmission system operators.

The power generation segment also recorded significant growth, while the digital solutions and platforms segment continues to confirm its important role in the digital transformation of the energy sector and the development of higher value-added solutions. In the urban mobility segment, the third quarter was marked by the introduction of the first bimodal electric-diesel train into regular service on the Split–Zagreb route, as well as its presentation at InnoTrans in Berlin, the world’s leading transport technology trade fair. This further demonstrated our ability to develop complex and innovative solutions tailored to the needs of modern European rail transport.

Among the key business developments in the third quarter was the opening of the new Laboratory for power systems and drives in Bedekovčina, one of the most technologically advanced facilities of its kind in Europe, representing an important step in the implementation of the Group’s development and investment plans. Shortly afterwards, the Group secured a EUR 320 million investment support package from the EBRD, IFC, PBZ and ZABA, following a detailed assessment of its operations, development strategy and investment plans.

Positive trends were also recorded on the capital market. During September, KONČAR’s share price reached a record high of EUR 1,082.00, while market capitalisation stood at EUR 2.8 billion at the end of the month, representing an increase of 66% compared to a year earlier.

In addition, at today’s meeting, the Supervisory Board approved the Management Board’s proposal to split the Company’s ordinary shares at a ratio of 1:10, with the final decision to be made by the General Assembly. Under the proposal, the number of shares will increase to 25.7 million following the split, while the Company’s share capital will remain unchanged at EUR 159.5 million. At the same time, proposals for stock splits at KONČAR – Distribution and Special Transformers Inc. and KONČAR – Instrument Transformers Inc. were also approved and will likewise be subject to approval by their respective General Assemblies.

The proposed stock split follows the development trends of the Croatian capital market and is expected to improve the accessibility of KONČAR shares for retail investors. It also supports broader initiatives aimed at encouraging greater participation of citizens in the capital market, including the planned introduction of the Investment Account as a tool to promote investing and long-term savings.