First quarter financial results  

The decline in operating profit was primarily driven by lower revenue from portfolio company ENRX due to a weaker European market and a decline in the operating margin at NSSLGlobal. 

“Political turmoil and unstable tariff schemes affected our companies to varying degrees in the quarter. While Volue delivered a strong quarter and hydro power was in line with last year, the overall numbers in the quarter were negatively impacted by the volatile market conditions,” says Benjamin Golding, Chief Executive Officer at Arendals Fossekompani.

Volue continued its strong performance and reported total revenue of NOK 406 million, a 13% YoY growth, and margin expansion with a cash EBITDA margin of 16% (8%). The company maintains an active M&A agenda within its core segments.  

Tekna's operating revenue for the quarter was CAD 8.4 million (8.7 million), a decline from Q1 last year due to lower activity in the Systems business. However, Materials revenue grew by 7% year-on-year, and total order intake was up 73% compared to Q1 last year, driven by strong demand for both small and large particle-sized material.

Hydropower production in the quarter was in line with Q1 last year with revenue of NOK 127 million and operating profit of NOK 93 million.

 “We have already taken mitigating measures, and we will continue to take the actions necessary to protect profitability and continue to build long-term value in our companies. Our solid financial position enables us to see through turbulence and continue to invest to accelerate growth and strengthen long-term competitiveness,” says Golding.

Highlights from the portfolio  

Volue reported revenue of NOK 406 million (358 million), corresponding to a YoY growth of 13%. SaaS revenue reached NOK 178 million in the quarter, an increase of 42% compared to the first quarter of 2024, representing 44% of total revenue. Adjusted EBITDA in the quarter equaled NOK 114 million (77 million), corresponding to an adjusted EBITDA-margin of 28% (21%). Cash EBITDA margin for the quarter was 16% (8%).

ENRX reported operating revenue of EUR 37.3 million, down 19% from Q1 2024. The company saw reduced deliveries within the Heat segment in the European and Asian regions in the quarter, while North America saw marginal revenue growth. The European performance was negatively affected by market uncertainty and soft macro conditions. Due to the low revenue level, operating profit in Q1 was EUR 0.3 million (3.7 million). In order to adjust to current market conditions, a companywide cost reduction program was initiated in the quarter.

NSSLGlobal reported revenue of GBP 21.7 million (21.8 million). The quarter was characterised by continued high airtime activity and high activity level within governmental projects. Operating profit in the quarter was GBP 3.1 million (4.3 million). The lower operating profit was largely driven by less high-margin activities compared to Q1 2024. NSSLGlobal won GBP 14.2 million in contracts across its corporate, government and maritime sectors.

Tekna reported operating revenue of CAD 8.4 million (8.7 million). The decline was driven by low activity level within the Systems business area. In contrast, the Materials business area revenue grew by 7% year-on-year. Adjusted EBITDA in the quarter was CAD -0.8 million (-2.8 million). The order intake totaled CAD 12.8 million (7.4 million) in the quarter and the backlog was CAD 21.3 million (22.9 million) at the end of the quarter. On April 28, Claude Jean assumed the role of CEO at Tekna, bringing over 30 years of experience in the semiconductor sector. 

AFK Vannkraft reported total operating revenue of NOK 127 million (122 million) and operating profit of NOK 93 million (95 million). Hydropower production in the quarter was 157.5 GWh (160.4 GWh), while average power price in the NO2 region was 66.5 EUR/MWh (64.5 EUR/MWh) in the quarter. 

Financial Position
Arendals Fossekompani’s financial position remains solid. The Parent company’s available cash on 31 March amounted to NOK 911 million. In addition, the company has undrawn credit facilities of NOK 2,002 million, securing available liquidity of NOK 2.913 million as per the end of the quarter. Net debt (NIBD), excluding shareholder loans, at the end of the quarter was NOK -59 million, implying a net cash position.

Dividend

Arendals Fossekompani will pay a dividend of 1 NOK per share for the first quarter.  As previously communicated, Arendals Fossekompani will transition from quarterly to annual dividend announcements. This quarter marks the last with a quarterly dividend payout.