Arendals Fossekompani (AFK) Q3 2025 earnings summary

Executive summary

• Group revenue declined 6% year-on-year to NOK 853 million, mainly due to lower results in ENRX and hydropower/AFK Vannkraft.

• Earnings after tax surged to NOK 733 million, driven by a NOK 1.8 billion gain from Volue's Infrastructure divestment.

• Portfolio spans energy, technology, industrial, and B2B sectors across 25 countries, with a focus on growth equity and mature companies.

• Hydropower remains a core business, complemented by real estate and software assets.

• The group maintains strong financial flexibility, with NOK 720 million in cash and NOK 2 billion in credit facilities.

Financial highlights

• Group operating profit (EBIT) was NOK 33 million (4% margin), down from NOK 51 million (6%) year-on-year.

• Volue posted 24% revenue growth and a 19% cash EBITDA margin; NSSLGlobal had a 19% operating margin.

• Tekna achieved its first positive EBITDA quarter since IPO, with 9% revenue growth and a NOK 300 million rights issue announced.

• Hydropower/AFK Vannkraft revenue was NOK 59 million, with operating profit of NOK 36 million, as production fell 48% year-on-year.

• Net interest-bearing debt at quarter-end was NOK 131 million; available liquidity was NOK 2.8 billion.

Outlook and guidance

• Group operating profit for 2025 is expected to be lower than 2024, mainly due to ENRX and NSSLGlobal.

• Volue anticipates improved operating profit; Tekna expects stable profit; ENRX, NSSLGlobal, and AFK Vannkraft forecast declines.

• ENRX market for heating products expected to remain challenging for 12–18 months; cost reductions ongoing.

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