Third quarter financial results: Strong operating results across the portfolio

(Arendal, 10 November 2026) Arendals Fossekompani ASA (OSE: AFK) reported revenue of NOK 892 million (853 million) and an operating profit of NOK 104 million (33 million) in the third quarter of 2026. Ordinary profit after tax, but before non-controlling interests, totalled NOK 118 million (141 million).

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.

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: https://arendalsfossekompani.no/en

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Arendals Fossekompani (AFK) released its Q3 2026 results today, 10 November, at 08:00 CET. The results will be presented by CEO Benjamin Golding and CFO Lars Peder Fensli via webcast at 09:00 CET the same day. The presentation will be held in English and followed by a Q&A session. To attend the presentation and submit questions, please visit: https://qcnl.tv/p/R80AcoamXPta_tt28r09lw

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For enquiries or additional comments, please contact: Hanne Watts, VP Communications & Sustainability: +47 974 04 496

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About Arendals Fossekompani | https://arendalsfossekompani.no

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 on the Oslo Stock Exchange since 1913.

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This information is considered inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

This stock exchange announcement was published by Lars Peder Fensli, CFO of Arendals Fossekompani, on 10 November 2026 at 08:00 CET.