AF Gruppen (AFG) Q2 2025 earnings summary

Executive summary

• Revenue reached NOK 7,808 million in Q2 2025, up from NOK 7,651 million in Q2 2024, with year-to-date revenue at NOK 14,937 million compared to NOK 14,838 million last year.

• Earnings before tax surged to NOK 388 million in Q2 2025 from NOK 21 million in Q2 2024, and NOK 603 million year-to-date versus NOK 207 million last year.

• Profit margin improved to 5.0% in Q2 2025 from 0.3% in Q2 2024, and 4.0% year-to-date from 1.4% last year.

• Order intake was NOK 8,068 million in Q2 2025, with a record order backlog of NOK 44,493 million as of June 30, 2025.

• Safety performance remained robust, with a low LTI-1 rate and continued focus on health, safety, and environment.

Financial highlights

• EBIT for Q2 2025 was NOK 390 million, up from NOK 37 million in Q2 2024.

• Net interest-bearing debt reduced to NOK 263 million from NOK 979 million a year earlier.

• Equity ratio improved to 21.3% (23.0% excluding IFRS 16) as of June 30, 2025.

• Return on capital employed reached 32.3% for the last four quarters, well above the 20% target.

• Available liquidity stood at NOK 4,281 million, including financial facilities.

Outlook and guidance

• Gradual recovery in the residential and commercial construction market expected from 2026.

• Civil engineering market expected to remain stable in Norway, with growth in Sweden projected for 2025-2026.

• Construction market anticipated to recover with real growth of 2.5% in 2025 and 7.1% in 2026.

• Offshore decommissioning demand expected to rise, especially in the North Sea.

• Focus remains on controlled and profitable growth, risk management, and financial discipline.