Second quarter financial results

The decline in Group revenue YoY was primarily driven by lower revenue in AFK Property resulting from revenue recognition of NOK 245 million related to the Bryggebyen apartment complex in Q2 2024.

“Despite lower revenues on group level, we note several solid achievements in the underlying portfolio companies. ENRX achieved 5% growth in the Heat segment, and Tekna saw 42% increase in order intake YoY, and positive operating cash flow from operations. NSSLGlobal had continued high activity levels within airtime and governmental & maritime projects, and an operating margin of 20%. In addition, Volue delivered another strong quarter, with recurring revenue growth of 22% YoY and a cash EBITDA margin of 19%,” says Benjamin Golding, Chief Executive Officer at Arendals Fossekompani.

In the quarter Volue announced the sale of its Infrastructure business to FSN Capital, and completed the divestment of Scanmatic AS, as announced in Q1, delivering on its clear strategy to become a pure play Energy and Grid software company.

“Volue is undergoing a strategic transformation, focusing on expansion of its core business within Energy and Power Grid. Going forward, we aim for around 15% organic growth, cash EBITDA margin uplift YoY, and a continued active M&A agenda,” says Golding.

SOLID FINANCIAL POSITION

Arendals Fossekompani Parent company's financial position remains solid. The Parent company’s available cash on 30 June amounted to NOK 757 million. In addition, the company has undrawn credit facilities of NOK 1,997 million, securing available liquidity of NOK 2,754 million as per the end of the quarter. Net debt (NIBD), which excludes shareholder loans, was at the end of the quarter NOK 100 million.

“Across our portfolio, we continue to refine cost structures to support profitability targets, while actively optimizing the portfolio to create long-term value. Our solid financial position enables us to continue investing to accelerate growth and strengthen long-term competitiveness,” says Golding.

HIGHLIGHTS FROM THE PORTFOLIO

Volue: Growth and margin expansion 
The company reported total revenue of NOK 413 million (369 million), corresponding to a YoY growth of 12%. SaaS revenue reached NOK 195 million in the quarter, an increase of 44% compared to the second quarter of 2024, representing 47% of total revenue. Adjusted EBITDA in the quarter equalled NOK 126 million (82 million), corresponding to an adjusted EBITDA-margin of 31% (22%). The cash EBITDA margin ended at 19% (7%).

ENRX: 5% growth in Heat segment, ongoing cost savings program improving margins 
Total operating revenue in Q2 was EUR 37.4 million (36.9 million). The company saw 5% growth from the Heat segment, driven by continued demand for industrial induction heating solutions, especially in the North American and Asian markets. Operating profit for the quarter was EUR 1.2 million (3.1% margin), up from EUR 0.2 million (0.5% margin) in Q2 2024. The Heat segment generated an operating margin of 7.2% (5.7%) in the quarter. Total order intake was EUR 37.5 million (40.3 million) and the order backlog at the end of the quarter was EUR 61.5 million (75.6 million). ENRX continues to refine its cost structure and capital allocation to meet its profitability targets.

NSSLGlobal: GBP 8.4 million in new contracts, 20% operating margin 
The company reported revenue of GBP 23.0 million (29.3 million). The quarter was characterised by continued high airtime activity and high activity level within governmental and maritime projects. A large project delivery in Q2 2024, which was not repeated in Q2 2025, largely explained the YoY reduction in revenue. Operating profit in the quarter was GBP 4.6 million (5.5 million), corresponding to a 20% (19%) operating margin. NSSLGlobal won GBP 8.4 million (6.1 million) in contracts across its corporate, government and maritime sectors.

Tekna: Solid materials order intake, and positive cash flow from operations 
Total operating revenue in Q2 was CAD 9.0 million (11.2 million). The decline was driven by low activity level within the lumpy Systems business area, as well as short-term fluctuations in Materials order timing. Adjusted EBITDA in the quarter was CAD -2.0 million (-1.5 million), while operating cash flow was positive at CAD 0.4 million (0.1 million). The order intake totalled CAD 9.1 million (6.4 million), and the backlog was CAD 20.9 million (18.2 million) at the end of the quarter. Tekna is pursuing further cost and capital adjustments to align with annual profitability targets.

AFK Vannkraft: Lower production compared to Q2 2024 
AFK Vannkraft reported total operating revenue of NOK 37 million (70 million) in a quarter driven by low total reservoir levels, reduced waterflow, and consequently lower power production of 58.6 GWh (135.2 GWh). Average power price in the NO2 region was EUR 58.4/MWh (44.8 EUR/MWh) in the quarter.

Q2 FINANCIAL RESULTS WEBCAST AND Q&A SESSION

Arendals Fossekompani Q2 financial results will be presented by CEO Benjamin Golding and CFO Lars Peder Fensli, Friday August 29 at 09:00 am CEST. The presentation will be held in English and followed by a Q&A session.

To attend the presentation and submit questions, please visit: https://channel.royalcast.com/landingpage/hegnarmedia/20250829_5/

1:1 MEETINGS WITH CEO and CFO

Following the presentation, investors and analysts may schedule one-on-one meetings with CEO Benjamin Golding and CFO Lars Peder Fensli.

For meeting requests, please contact CFO Lars Peder Fensli: lars.peder.fensli@arendalsfoss.no