Fourth quarter financial results: Focusing and de-risking the portfolio

The decline in Group revenue YoY was primarily driven by lower revenue in ENRX, due to weaker market conditions, and NSSLGlobal due to lower airtime activity and one-off projects completed in Q4 2024.  

“The negative operating profit in the quarter was primarily due to impairments and provisions in ENRX related to the divestment of the Charge business. Adjusted for this, the Q4 operating profit was NOK 58 million, corresponding to a margin of 6%,” says Benjamin Golding, Chief Executive Officer at Arendals Fossekompani. 
 

Accelerating growth at Volue 

Volue delivered yet another solid quarter, with 22% YoY growth in recurring revenue. The company continued its active M&A agenda. In the quarter Volue acquired smartPulse and completed the acquisitions of Quorum in the UK and HAKOM Time Series GmbH in Austria, which were announced after quarter-end. The acquisition of Optimeering was completed after the end of the quarter. 

After the close of the quarter, TA Associates joined as new strategic investment partner in Volue, marking a significant milestone in Volues’s growth journey. 

As part of the transaction, Arendals Fossekompani will receive cash proceeds of approximately EUR 38 million (approximately NOK 425 million). Arendals Fossekompani’s ownership in Volue will be around 36% after closing. The transaction prices Arendals Fossekompani’s remaining shareholding in Volue to approximately EUR 520 million (approximately NOK 5,9 billion).  
Final amounts are subject to closing adjustments. Completion of the transaction is subject to regulatory approvals. 

“Our partnership with Advent and Generation has proven exceptionally strong, and together with TA, will provide the stable foundation for Volue to reach its goal of becoming the #1 technology provider for energy systems by 2030,” says Golding. 

Focusing and de-risking the portfolio 
In line with the ongoing strategy to focus, de-risk and optimise the portfolio, Arendals Fossekompani concluded several measures in Q4.  

ENRX divested a 75% stake in its Charge business. The transaction provides the Charge business with capital and a long-term partner to support its continued development, while reducing cost and complexity and freeing up capital and resources for ENRX to focus fully on its core business. 

 
Tekna completed its refinancing plan, including a fully underwritten rights issue of NOK 300 million and a new bank financing agreement. The rights issue resulted in Arendals Fossekompani increasing its shareholding in Tekna from 69.5% to 72.4%. 
 

“We are pleased to further increase our ownership in Tekna, reflecting our conviction in the company’s technology, market position and growth potential. Tekna also reached an important milestone in the quarter, delivering its second consecutive positive EBITDA quarter since IPO,” says Golding. 

Following the dissolution of the Alytic investment team in Q2 and the completed sale of Factlines in Q3, impairments in the early-phase companies totalling NOK 202 million were concluded in the quarter. 
 

Robust capital base 

Arendals Fossekompani Parent company's financial position remains solid. The company’s available cash on 31 December amounted to NOK 570 million. In addition, the company has undrawn credit facilities of NOK 2,182 million, securing available liquidity of NOK 2,752 million at the end of the quarter.  

“We remain committed to capital discipline and have strengthened robustness across our portfolio, allowing flexibility to capture opportunities and adapt to change. With a more resilient and focused portfolio in attractive and growing end-markets, we are well positioned to support long-term value creation,” says Golding. 
  

Highlights from the portfolio  
 

Volue: Solid revenue growth  

Total revenue in Q4 amounted to NOK 415 million (369 million), corresponding to a growth rate of 13% YoY. Recurring revenue growth for the quarter was 22%. The growth was a result of upsell to existing customers, combined with a strong logo expansion across multiple geographic regions. Adjusted EBITDA in the quarter was NOK 113 million (131 million) corresponding to a margin of 27%, and adjusted cash EBITDA was NOK 74 million (63 million). 

 
ENRX: Restructuring and focusing on core 
Total operating revenue in Q4 was EUR 35.9 million (46 million). The decline was driven by high uncertainty, tariffs, and political turmoil. Operating profit for the quarter was EUR -29.9 million (5.3 million). The negative result was driven by impairments and provisions totalling EUR 30 million relating to the sale of the ENRX Charge business, which was concluded after the close of the quarter. Adjusted for one-offs related restructuring and M&A, operating profit for Heat in the quarter was EUR 2.9 million, corresponding to an operating margin of 8.2%. Total order intake was EUR 38.4 million (37.3 million), and the order backlog at the end of the quarter was EUR 56.8 million (67.1 million). 

NSSLGlobal: Consistent operational performance 
Revenue in Q4 was GBP 24.9 million (27.1 million) and operating profit was GBP 3.4 million (5.2 million), corresponding to an operating margin of 14% (19%). Lower airtime revenue and a one-off project in Q4 2024, which was not repeated in Q4 2025, were the main drivers of the YoY decline. NSSLGlobal won GBP 12.9 million (18.2 million) in contracts across its corporate, government and maritime sectors.  

Tekna: Second consecutive EBITDA positive quarter 
Total operating revenue in Q4 was CAD 9.9 million (9.6 million). The YoY increase was driven by record high Materials revenue, largely due to high demand from Aerospace & Defence customers. Activity levels within Systems was low in the quarter, with revenue of CAD 1.8 million (2.2 million). Adjusted EBITDA in the quarter was CAD 0.9 million (-1.4 million), marking the second consecutive positive EBITDA quarter. The order intake totalled CAD 9.1 million (6.4 million), driven by YoY growth in both business areas. The backlog was CAD 20.5 million (16.7 million) at the end of the quarter.   

AFK Vannkraft: Higher hydropower production and prices 
Total revenue in Q4 was NOK 137 million (96 million) with an operating profit of NOK 106 million (63 million). The quarter was characterised by heavy precipitation and high inflow. Consequently, power production was 163 GWh, approximately 10% higher than the same quarter last year (148.5 GWh). Average power price in the NO2 region in the quarter was EUR 69.7/MWh (53.5 EUR/MWh).   
 

Restatement Q3 

The financial statements include a restatement of NOK -591 million related to share of profit from associated company Faraday Topco AS (the holding company of Volue AS) reported in Q3. The restatement relates to incorrect reporting of Faraday Topco’s gain on sale of Volue's infrastructure business. Please refer to note 8 in the Q4 financial report for details. 

ENDS 

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