Arendals Fossekompani (AFK) investor relations material

Executive summary

• Q3 revenue was NOK 892m, up 5% YoY; operating profit rose to NOK 104m from NOK 33m, lifting operating margin to 12% from 4%.

• Higher electricity prices at AFK Vannkraft, improved ENRX profitability and stronger Tekna revenue supported results; Volue also grew, while delayed project invoicing weighed on NSSLGlobal margins.

• FY 2026 revenue is expected in line with 2025, with significantly higher operating profit.

Financial highlights

• Q3 EBITDA was NOK 173m vs NOK 88m; operating profit was NOK 104m vs NOK 33m, and profit before tax was NOK 179m vs NOK 169m.

• Profit after tax was NOK 118m vs NOK 141m, reflecting the high effective tax rate on hydropower earnings.

• The TA transaction generated an NOK 82m gain below operating profit; share of profit from associates was NOK 68m.

• YTD operating profit was NOK 381m vs NOK 140m; operating cash flow was NOK 397m vs NOK 269m.

• Parent cash was NOK 941m, with NOK 2.126bn in undrawn facilities and NOK 3.067bn total liquidity; parent net cash was NOK 209m.

Outlook and guidance

• FY 2026 revenue is expected in line with 2025, while operating profit is expected to be significantly higher, supported by ENRX margin recovery and higher hydropower revenue.

• Most portfolio businesses expect improved operating profit; NSSLGlobal expects lower profit.

• Volue expects continued growth and margin expansion, supported by backlog, AI initiatives and M&A; recurring contracts and sustained demand underpin Q4 growth.

• ENRX expects medium-term uncertainty in induction heating markets; cost and capital discipline remain priorities.

• Financial capacity is intended to support portfolio businesses through near-term challenges and continued investment in growth and long-term competitiveness.