Arendals Fossekompani (AFK) investor relations material

Executive summary

• Q1 2026 revenue was NOK 929 million, down from NOK 969 million year-over-year, mainly due to lower ENRX revenue, while operating profit rose to NOK 155 million from NOK 75 million, with margin improving to 17% from 8%.

• Portfolio companies showed strong operational performance, with notable margin improvements and positive adjusted EBITDA in key segments.

• Profit before tax was NOK 126 million (NOK 74 million in Q1 2025); profit after tax was NOK 33 million (NOK -3 million in Q1 2025).

• The group maintains a strong financial position with NOK 568 million in cash and NOK 2,121 million in undrawn credit facilities.

• Strategy emphasizes balancing cash generation with capital allocation and reducing exposure to early-phase businesses over time.

Financial highlights

• Group operating profit margin improved to 17% from 8% year-over-year.

• Net interest-bearing debt at quarter-end was NOK 167 million; equity ratio stood at 85%.

• Earnings after tax improved to NOK 33 million from a loss of NOK 3 million in Q1 2025.

• Share price increased to NOK 160 at quarter-end, up from NOK 124.4 a year earlier.

• Available liquidity at quarter-end was NOK 2,689 million (cash plus undrawn credit facilities).

Outlook and guidance

• 2026 group revenue 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 AFK Vannkraft.

• Volue, Tekna, and AFK Vannkraft anticipate higher revenue and operating profit in 2026; ENRX expects lower revenue but higher operating profit.

• NSSLGlobal and AFK Eiendom expect stable revenue, with operating profit for AFK Eiendom set to rise.

• ENRX market expected to remain challenging for 12–18 months, but cost base aligned to current activity.

• Ongoing uncertainty from geopolitical turmoil, regulatory changes, supply chain constraints, inflation, and volatile energy prices.