Third quarter financial results: Strong operating results across the portfolio

The 5% increase in Group revenue YoY was driven by high electricity prices and growth in Tekna. Operating margin for the quarter was 12% (4%). The improvement was driven by stronger profitability in ENRX, high electricity prices and reduced exposure to early-phase companies. 
 

“Q3 was marked by strong operational performance across the portfolio. Volue delivered well above the Rule of 40 with 24% revenue growth and a 25% adjusted cash EBITDA margin. ENRX’s operational focus continued to pay off, with improved profitability and order intake up 33% YoY. Tekna had a very strong quarter with 61% revenue growth, and our hydropower business delivered an operating profit of NOK 64 million on the back of high power prices,” says Benjamin Golding, Chief Executive Officer of Arendals Fossekompani. 
 

Portfolio highlights 
 

Volue: Continued growth while operating leverage coming through 
Revenue amounted to EUR 38.7 million (31.3 million), corresponding to YoY growth of 24%. The growth was largely driven by recurring revenue which grew by 25%. A total of 49 new customers were contracted in the quarter. The adjusted cash EBITDA was EUR 9.6 million (7.6 million), corresponding to a margin of 25% (24%).  
 

ENRX: Profitable growth and commercial momentum 
Revenue amounted to EUR 33.3 million (31.2 million), corresponding to YoY growth of 7%. Operating profit improved to EUR 2.8 million (-0.9 million), driven by higher revenue and tight cost control. Order intake was EUR 41 million, up 33% YoY, corresponding to a book-to-bill of 1.2, driven by North America and Asia. Order backlog was EUR 73 million, up 19.5% YoY. 
 

NSSLGlobal: Significant new contracts  
Revenue was GBP 24.5 million (24.9 million) with high airtime traffic offset by project invoicing timing effects. Operating profit was GBP 3.8 million (4.6 million) due to lower gross margins and higher operating costs compared to Q3 2025. During the quarter, NSSLGlobal won contracts with a value of GBP 38.6 million (16.8 million) across the government and maritime sectors.  
 

Tekna: Profitability and enhanced commercial visibility 
Revenue was CAD 13.4 million (8.3 million). The YoY growth of 61% was driven by sustained Materials demand and strong order and project execution in Systems. Adjusted EBITDA was CAD 2.9 million (0.5 million), corresponding to a margin of 21.5% (5.6%). Order intake was CAD 10.6 million (5.3 million), reflecting robust Materials demand across aerospace, defence and medical. Order backlog ended at CAD 25.5 million, up 40% YoY, extending visibility into 2027. 

 
AFK Vannkraft: Strong quarter with high prices 
Revenue in Q3 amounted to NOK 90 million (59 million), driven by high electricity prices. Operating profit was NOK 64 million (36 million), corresponding to an operating margin of 71% (60%). 

 

Structural changes in the portfolio  
During the quarter, Arendals Fossekompani closed the previously announced transaction bringing in TA Associates as a new strategic partner in Volue. The transaction, which involved sale of shares, resulted in a gain of NOK 82 million recognised in the consolidated financial statements. After closing, Arendals Fossekompani holds 35.67% of Faraday Topco, the holding company that indirectly owns all shares in Volue.  
 

In September, NSSLGlobal acquired MetOcean Telematics (UK) Ltd, a provider of security, surveillance and IoT asset tracking solutions. The acquisition broadens NSSLGlobal’s product offering and gives access to adjacent markets by combining communications and security capabilities. 
 

As a result of financial restructuring in Veyt, Arendals Fossekompani reduced its ownership in the company from 62.1% to 33.9% in the quarter. Consequently, Veyt's financials are no longer consolidated in the Arendals Fossekompani Group.  

 

Solid financial position  
The financial position of Arendals Fossekompani Parent company remains solid. The company’s available cash on 30 September amounted to NOK 941 million. In addition, the company has undrawn credit facilities of NOK 2,126 million, securing available liquidity of NOK 3,067 million at the end of the quarter. 
 

“Our strong balance sheet gives us the financial flexibility to support our existing portfolio and to capture opportunities as they become actionable,” says Golding. 

 
Outlook  
Arendals Fossekompani Group revenue in 2026 is expected to be in line with 2025. Operating profit is expected to be significantly higher in 2026.