Arendals Fossekompani (AFK) investor relations material

Executive summary

• Q2 2026 revenue was NOK 884 million, down 2% year-on-year, mainly due to softer ENRX markets, but offset by strong hydropower performance; operating profit rose to NOK 123 million from NOK 32 million, reflecting a 14% margin.

• Portfolio companies showed mixed performance: Volue and Tekna delivered growth, ENRX improved profitability, while NSSLGlobal faced project delays.

• Equity ratio remained robust at 84%, with liquidity of NOK 2.6 billion, reflecting a strong balance sheet.

• Profit after tax was NOK -23 million, impacted by a high effective tax rate and resource rent tax on Norwegian hydropower.

• The group focuses on sustainable value creation and active ownership across mature, growth, and startup companies in energy and technology.

Financial highlights

• Group operating profit: NOK 123 million (14% margin), up from NOK 32 million; group revenue: NOK 884 million, down 2% year-on-year.

• Hydropower operating profit: NOK 104 million (80% margin), with production more than doubling year-on-year.

• Tekna achieved 18% revenue growth and its fourth consecutive positive adjusted EBITDA quarter.

• ENRX improved EBIT margin to 9% and increased order intake by 22% year-on-year.

• Impairments of NOK 34 million related to Veyt restructuring; earnings after tax at NOK -23 million due to high effective tax rate.

Outlook and guidance

• 2026 revenue is expected to be in line with 2025, but operating profit is projected to be significantly higher, driven by margin recovery in ENRX and improved profits in Tekna and hydropower.

• Volue expects organic growth at current rates, margin uplift year-on-year, and continued active M&A.

• ENRX expects heating markets to remain challenging for 12 months, with cost base aligned to current activity and lower revenue but higher profit.

• Tekna targets double-digit annual revenue growth toward 2030, supported by record backlog and strong order intake.

• Segment guidance: NSSLGlobal expects flat revenue and lower profit; AFK Eiendom expects flat revenue and higher profit; Volue expects growth in both revenue and profit.