Third quarter financial results: Solid achievements despite lower revenue

The decline in Group revenue and operating profit YoY was driven by challenging market conditions for ERNX and lower hydro power production. 

“Despite lower numbers on group level, we note several solid achievements in individual portfolio companies. Volue delivered 24% revenue growth YoY and a cash EBITDA margin of 19%, NSSLGlobal reported growth on revenue and profit, and Tekna reported its first quarter of positive EBITDA since IPO” says Benjamin Golding, Chief Executive Officer at Arendals Fossekompani. 
 

Tekna milestone 

In the quarter, Tekna delivered its first positive EBITDA quarter since IPO. Revenue was CAD 8.3 million, corresponding to 9% growth YoY. The growth was driven by a strong quarter for the Materials business which grew its revenue by 28% YoY. 

“This is an important milestone for Tekna. As a long-term owner, we remain confident in the company’s continued development and value creation potential,” says Golding. 

After the close of the quarter, the company announced a financing agreement with Scotiabank, and a fully underwritten rights issue of 300 million NOK. With this, Tekna has fully funded its business plan towards its 2030 targets. 

Continued strong performance in Volue 

Volue reported strong performance both in terms of growth and margin expansion. With an ARR growth of 22% and a Cash-EBTIDA margin of 19%, the company is delivering its second consecutive quarter as a “Rule-of-40”-company. 
 

In the quarter, Volue completed the sale of its Infrastructure business to FSN Capital, resulting in recognition of a NOK 1.8 billion financial gain. After the close of the quarter, the company acquired smartPulse, accelerating expansion into Southern and Eastern Europe and Turkey, while enhancing capabilities within full-scale power trading and battery optimization. 
 

Sale of Factlines  

In line with strategy of reducing early phase exposure, after the close of the quarter, Arendals Fossekompani sold Factlines to the leading Nordic ESG software and advisory firm, Position Green. As a result of the transaction, Arendals Fossekompani is now a minority shareholder in Position Green. 

 
Highlights from the portfolio 

Volue: Continued strong performance 
The company reported total revenue of NOK 349 million (281 million), corresponding to a YoY growth of 24%. SaaS revenue reached NOK 150 million in the quarter, an increase of 30% compared to Q3 2024, representing 43% of total revenue. In the quarter, Volue completed the sale of its Infrastructure business to FSN Capital, thereby completing its transformation into a pure play Energy and Power Grid software company. The transaction resulted in recognition of a NOK 1.8 billion financial gain. 

ENRX: A challenging quarter 
Total operating revenue in Q3 was EUR 31.2 million (35.5 million). The decline was due to challenging market conditions in the Heat segment. As a result, operating profit for the quarter ended at EUR -0.9 million (2.1 million). Total order intake was EUR 30.8 million (34.1 million) and the order backlog at the end of the quarter was EUR 61 million (77 million). ENRX will continue to reduce costs and maintain strict capital discipline to adapt to the market cycle and improve profitability. 
 

NSSLGlobal: Revenue and profit growth 
The company reported revenue of GBP 24.9 million (23.7 million). The quarter was characterised by continued high airtime activity and the completion of certain large-scale projects. Operating profit in the quarter was GBP 4.6 million (4.1 million), corresponding to an operating margin of 19% (18%). NSSLGlobal won GBP 16.8 million (9.1 million) in contracts across its corporate, government and maritime sectors. 
 

Tekna: First quarter with positive EBITDA since IPO 
Total operating revenue in Q3 was CAD 8.3 million (7.6 million). The increase was driven by a 28% growth in Materials revenue YoY, partly offset by low activity level within the Systems business area. The strong Materials growth was driven by a record high trailing twelve month  

Materials order intake of CAD 32.5 million. Adjusted EBITDA in the quarter was positive at CAD 0.5 million (-1.4 million), while operating cash flow was CAD -0.3 million (-0.6 million). Operating cost reduction measures will continue throughout 2025 which is expected to further improve Tekna’s profitability going forward. 

AFK Vannkraft: Low production only partly offset by prices 
AFK Vannkraft reported total operating revenue of NOK 59 million (75 million). The first half of the quarter was characterised by low total reservoir levels and low outflow, and consequently lower power production of 83.4 GWh (161.7 GWh). The average price in the NO2 price area during the quarter was 67 EUR/ MWh (37.8 EUR/ MWh). Higher prices so far in 2025 were largely driven by lower total reservoir levels compared to 2024. 
 

Solid Financial position  
Arendals Fossekompani Parent company's financial position remains solid. The Parent company’s available cash on 30 September amounted to NOK 720 million. In addition, the company has undrawn credit facilities of NOK 2,003 million, securing available liquidity of NOK 2,723 million as per the end of the quarter. Net debt (NIBD), which excludes shareholder loans, was at the end of the quarter NOK 131 million. 

“We remain focused on cost and profitability, while optimizing our portfolio for long-term value creation,” says Golding. 
 
Operating in international markets, Arendals Fossekompani Group is naturally exposed to currency fluctuations. Revenue denominated in NOK in ENRX and NSSLGlobal was positively impacted by the weakened NOK compared to the third quarter of 2024. 

ENDS    

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Q3 FINANCIAL REPORT  
The Q3 Financial Report is attached as a pdf file. All reports are published on the company's website: Reports & Presentations - Arendals Fossekompani 

Q3 FINANCIAL RESULTS WEBCAST AND Q&A SESSION  
Arendals Fossekompani Q3 financial results will be presented by CEO Benjamin Golding and CFO Lars Peder Fensli, Friday November 7 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/20251107_1/ 

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  

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For inquiries or additional comments, please contact:     
Benjamin Golding, Chief Executive Officer: +47 974 04 496    
Hanne Watts, VP Communications & Sustainability: +47 974 04 496 

About Arendals Fossekompani | https://arendalsfossekompani.no/en   
Arendals Fossekompani is a long-term industrial investment company. We are active owners and developers of companies enabling the energy transition and next generation industrial technologies. Established in 1896, we have been a proud producer of hydropower for more than 100 years. Arendals Fossekompani is headquartered in Arendal and has been listed at the Oslo Stock Exchange since 1913.