Terma-CFO: We try to stay grounded

Despite record results, Terma intends to stay grounded.

That is the clear message from CFO Per Thiesen following the release of Terma’s 2025/2026 annual report on Friday. 

The report was marked by sustained global demand for advanced defence and critical infrastructure solutions, delivering record financial results.

- Of course, we are both pleased and proud of the results presented today. That said, we are very aware that we operate in a sector experiencing extraordinary growth. We will not be resting on our laurels, says Thiesen.

Strong visibility

Among the report’s most striking figures is the order backlog, which reached DKK 5.6 billion during the year, up 43 percent year-on-year. The year closed with an order backlog of DKK 6.9 billion, providing strong visibility for the years ahead.

- This is a significant increase and one we expect to continue reaching relatively high levels. It provides us with robustness which, in many respects, is more important than actual profit and cash flow, says Thiesen.

According to the CFO, the growing backlog gives Terma both the confidence and the financial muscles to invest in both the company and new technologies.

- The objective is to be as prepared for the future as possible.

Thiesen points to Terma’s acquisition of OSL Technologies in November as an example of that strategy. 

The UK-based company specialises in counter-drone security and safety systems and has established a strong position in Norway, where it supports the protection of military air bases.

- OSL is a commercial success that we intend to expand upon and which will help develop our business in the years ahead, says Thiesen.

Need for perspective

The report also highlighted a 40 percent increase in cash flow. 

Asked whether this reflects stronger profitability or simply higher volumes flowing through the business, Thiesen again stresses the need for perspective.

- We try to stay grounded at Terma, he says.

- Much of what you see in the cash flow is the result of our ability to scale the business. We are not seeing materially higher margins. On the contrary, the improvement comes from our ability to optimise working capital and cooperation across the group.

 For the first time, we are seeing positive development across all of our business areas, including civil segments such as space. One reason is that the definition of the defence industry is expanding into adjacent sectors, says Thiesen.

European shift

Like many European defence companies, Terma has increasingly shifted its focus towards Europe, although the United States remains a strategically important market.

Just over 80 percent of the company’s revenue originates outside Denmark, the reports shows.

Thiesen sees substantial growth potential in Europe, but also a significant responsibility. He points to an industry in which many of the largest European prime contractors are effectively "closed for success".

As a result, he argues that smaller companies such as Terma have an important role to play in Europe’s defence industrial expansion.

- We can contribute in areas such as counter-drone capabilities and similar technologies, he says: 

- I see that as an obligation.