Festi (FESTI) investor relations material

Executive summary

• Q1 2026 results were in line with management expectations, with strong operational performance across most segments.

• Total revenue increased by 6.0% year-over-year, with volume growth in most product categories.

• EBITDA rose by 3.0% YoY, while cash flow from operating activities was negative due to one-off effects in working capital.

Financial highlights

• Sale of goods and services reached ISK 40.1 bn, up 6.0% YoY; margin from sales was 24.3%, down 0.1 p.p. YoY.

• EBITDA was ISK 2.6 bn, up 3.0% YoY; profit for the period was ISK 218 million, down ISK 61 million YoY.

• Earnings per share were ISK 0.71, down from ISK 0.90 YoY.

• Cash flow from operating activities was negative ISK 32 million, mainly due to increased inventories and shorter payment deadlines for public levies.

Outlook and guidance

• Positive outlook for 2026, with continued focus on efficiency and optimization.

• Main uncertainty is volatility in global oil prices due to geopolitical tensions in the Middle East.

• EBITDA guidance for 2026 is ISK 16,500–17,000 million; CAPEX guidance is ISK 7,500–8,000 million.

• Inflation and central bank interest rates expected to impact costs; real exchange rate expected to weaken later in the year.