AF Gruppen (AFG) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose to NOK 8,881m from NOK 7,803m; EBIT increased to NOK 576m from NOK 406m, lifting operating margin to 6.5% from 5.2%.

• YTD revenue reached NOK 25,910m and EBIT NOK 1,422m, with operating margin of 5.5%; operating cash flow was lower YoY at NOK 1,584m.

• Backlog stood at NOK 45,958m at 30 September; Q3 order intake was NOK 5,073m. Net interest-bearing receivables were NOK 959m.

Financial highlights

• Q3 EBITDA was NOK 753m (NOK 604m), EBT NOK 554m (NOK 398m) and net income NOK 424m (NOK 312m); EPS was NOK 3.33 (NOK 2.36).

• YTD net income was NOK 1,074m (NOK 782m) and EPS NOK 8.16 (NOK 6.13).

• Q3 operating cash flow was NOK 1,017m (NOK 1,000m); YTD cash flow was NOK 1,584m (NOK 1,910m).

• Q3 order intake was NOK 5,073m (NOK 7,692m); YTD intake was NOK 27,151m (NOK 26,771m), with backlog at NOK 45,958m (NOK 44,382m).

Outlook and guidance

• The operating margin target is 7%; Q3 margin was 6.5%. Priorities include diversified growth, evaluating work outside Norway, early-phase expertise and productivity gains to offset input-cost inflation.

• Management cited sound contracting operations and a strong financial position as a base for organic and structural growth.

• Major-project opportunities are increasing, but timing depends on funding and political decisions.

• Norwegian civil engineering market growth is forecast at 0.5% in 2026, 2.3% in 2027 and -0.5% in 2028; construction market growth is forecast at 3.8%, -0.8% and 3.4%, respectively.

• Housing starts are forecast at 20,000 in 2026, 22,000 in 2027 and 24,000 in 2028; recovery is expected to be gradual.