Arendals Fossekompani (AFK) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was NOK 899 million, down from NOK 1,253 million year-over-year, mainly due to lower property, satellite communications, and hydropower production.

• Group operating profit (EBIT) was NOK 32 million, down from NOK 73 million in Q2 2024, reflecting lower contributions from key segments.

• Earnings after tax improved, supported by reduced debt and positive financial investments.

• The group continues to focus on optimizing a diversified portfolio of B2B energy and technology companies, shifting away from early-phase investments toward growth equity and mature businesses.

• Active ownership and capital allocation remain central to driving value and shareholder returns.

Financial highlights

• Q2 2025 revenue: NOK 899 million (Q2 2024: NOK 1,253 million); YTD 2025: NOK 1,868 million (YTD 2024: NOK 2,279 million).

• Q2 2025 EBIT: NOK 32 million (Q2 2024: NOK 73 million); EBIT margin: 4% (Q2 2024: 6%).

• Q2 2025 net profit: NOK 42 million (Q2 2024: loss of NOK 55 million); YTD 2025 net profit: NOK 38 million (YTD 2024: loss of NOK 19 million).

• Available cash at quarter-end was NOK 757 million, with total liquidity of NOK 2.8 billion including undrawn credit.

• Equity ratio improved to 62% (Q2 2024: 34%), with net interest-bearing debt reduced to NOK 100 million at parent level and NOK 302 million group-wide.

Outlook and guidance

• Group revenue and operating profit for 2025 are expected to be lower than 2024, mainly due to reduced hydropower and NSSLGlobal profits.

• Volue anticipates higher revenue and operating profit in 2025; ENRX and Tekna expect stable or lower results; AFK Vannkraft and NSSLGlobal expect declines.

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