Fjord Defence Group (DFENS) Q2 2025 earnings summary

Executive summary

• Q2 2025 marked a transformational period with the adoption of a compounder strategy, the acquisition of Fjord Defence AS, and strengthening of the management team.

• Uplisting process to the main list on Oslo Stock Exchange was initiated.

• NOK 60 million raised via private placement, with new bank debt facilities of NOK 85 million established.

• The new strategy focuses on acquiring and growing profitable defence sector companies in the Nordics and Baltics, targeting NOK 2 billion in medium-term revenue.

• Management team has extensive defence expertise and significant shareholdings, aligning interests with shareholders.

Financial highlights

• Fjord Defence AS reported H1 2025 revenues of NOK 49.7 million, EBITDA of NOK 8.1 million, and EBIT of NOK 7.3 million.

• Group-level proforma EBITDA for H1 2025 was approximately NOK 10.7 million, adjusted for transaction costs and unrealized losses.

• Group cash position at NOK 72.4 million as of June 30, 2025, with a net cash position of NOK 47.4 million and low leverage.

• Cash inflow of NOK 60.4 million in H1 2025, driven by private placement, asset sales, and new debt.

• Settlement from sale of seismic equipment (NOK 16.8 million) and Arbaflame shares (NOK 4.5 million) provided additional cash inflow.

Outlook and guidance

• Fjord Defence AS expects revenues in excess of NOK 100 million in 2025, with higher growth anticipated in 2026.

• The group targets NOK 2 billion in medium-term revenue via acquisitions and organic growth.

• Order book for execution of NOK 50 million in H2 2025, with total H1 revenue at NOK 50 million.

• High growth potential from a qualified product for the U.S. Department of Defense, with serial deliveries expected after testing phases through 2026.

• Actively evaluating further acquisitions, with a strong pipeline and increased target company size.