AF Gruppen (AFG) investor relations material

Executive summary

• Achieved record-high activity and earnings in Q1 2026, with revenue of NOK 7,978 million, up from NOK 7,129 million year-over-year, driven by strong project execution and profitability improvement.

• Earnings before tax reached NOK 318 million, compared to NOK 214 million in Q1 2025, with a profit margin of 4.0% versus 3.0% last year.

• Maintained a solid order backlog of NOK 44,486 million as of March 31, 2026, and a robust financial position.

• Focused on strengthening project management and expanding in energy and environment, positioning for growth in Norwegian power system renewal.

Financial highlights

• EBIT for Q1 2026 was NOK 323 million, up from NOK 223 million in Q1 2025.

• EBITDA margin improved to 6.2% (5.7%), and profit margin rose to 4.0% (3.0%).

• Net interest-bearing receivables increased to NOK 1,898 million from NOK 290 million year-over-year.

• Cash flow from operations was NOK 347 million, up from NOK 330 million in Q1 2025.

• Earnings per share rose to NOK 1.84 (NOK 1.27 in Q1 2025).

Outlook and guidance

• Strong order backlog and financial position support continued high activity levels.

• Civil engineering market in Norway remains robust, with public demand as a key driver and moderate growth expected through 2028.

• Construction market faces high interest rates, delaying new project starts, but moderate growth is forecasted for 2026-2028.

• Ongoing investments in energy infrastructure and green industry expected to drive future growth.

• Offshore decommissioning market expected to grow, especially in the North Sea, with new opportunities in offshore wind and green industry.