Arendals Fossekompani (AFK) Q1 2025 earnings summary

Executive summary

• Q1 2025 group revenue was NOK 969 million, down 6% year-over-year, with operating profit (EBIT) at NOK 75 million and margin at 8% (down from 11%).

• Portfolio performance was mixed: Volue and Alytic showed growth, while ENRX and NSSLGlobal faced margin and revenue pressures.

• Dividend of NOK 1.00 per share declared for Q1; moving to annual dividend announcements from Q2 2025.

• Net profit after tax was NOK -3 million versus NOK 36 million last year.

• Geopolitical uncertainty and market volatility impacted results across segments.

Financial highlights

• Adjusted EBITDA improved in Volue and Tekna; group operating profit declined by NOK 40 million year-over-year.

• Net cash position with NOK 911 million in cash, NOK 2,002 million in undrawn credit, and NIBD at NOK -59 million.

• Equity ratio at 62% (Q1 2024: 38%).

• Share price at quarter-end: NOK 124.4, down 32% year-over-year; market cap NOK 6.8 billion.

• Compounded annual shareholder return over 10 years: 7% (15% including dividends).

Outlook and guidance

• Group revenue and operating profit for 2025 expected to be lower than 2024, mainly due to lower power production and reduced profit from NSSLGlobal.

• Volue expects higher revenue and operating profit in 2025; ENRX expects results in line with 2024.

• NSSLGlobal, AFK Vannkraft, and AFK Eiendom expect lower revenue and profit; Tekna and Alytic expect higher revenue but Alytic to remain loss-making.

• Ongoing uncertainty from geopolitical turmoil, supply chain constraints, inflation, interest rates, and energy prices.