Arendals Fossekompani First quarter financial results: Strong performances across the portfolio

(Arendal, 13 May 2026) Arendals Fossekompani ASA (OSE: AFK) reported revenue of NOK 929 million (969 million) and an operating profit (EBIT) of NOK 155 million (75 million) in the first quarter of 2026. Ordinary profit after tax, but before non-controlling interests, totalled NOK 33 million (-3 million).

The decline in Group revenue was primarily driven by lower revenue in ENRX, due to softer market conditions. Operating profit more than doubled YoY, corresponding to a 17% profit margin. The strong result was driven by profitability improvements across the portfolio.

“Q1 was marked by strong performances across all our portfolio companies. Volue continued to deliver on its growth strategy. ENRX operational focus is paying off. NSSLGlobal delivered an 18% operating margin and Tekna reported its third quarter of positive adjusted EBITDA and 19% revenue growth. Our hydropower business also delivered a strong result on the back of high power prices,” says Benjamin Golding, Chief Executive Officer at Arendals Fossekompani.

Portfolio highlights

Volue: Continued broad based growth

Total revenue in Q1 amounted to NOK 402 million (343 million), corresponding to a growth rate of 17% YoY (19% growth in recurring revenue). The strong market expansion combined with Volue’s scalable business model resulted in a solid margin uplift with adjusted cash EBITDA of NOK 69 million (42 million), corresponding to an adjusted cash EBITDA margin of 17% (12%). The acquisitions of Optimeering and dispoEnergy in the quarter enhanced Volue's trading and optimisation capabilities with real-time forecasting and cloud-native scheduling.

ENRX: Focused on core, improved profitability

The strategic milestone this quarter was the completion of the Charge sale. With 75% of Charge sold, ENRX is now fully focused on the Heat business. Operating revenue in Q1 amounted to EUR 30.4 million (37.3 million). The revenue decline was due to lower activity levels across all regions. Operating profit improved to EUR 2.0 million (0.3 million), supported by cost reduction initiatives coming through and the absence of operating losses from the former Charge division.

NSSLGlobal: Higher activity drives margin expansion

Revenue for Q1 was GBP 24.7 million (21.7 million). The YoY increase was primarily driven by higher airtime traffic and the completion of larger-value projects. Operating profit in the quarter was GBP 4.8 million (3.1 million) corresponding to an operating margin of 18%, driven by higher gross margins from increased airtime, equipment and project invoicing.

Tekna: Third consecutive adjusted EBITDA-positive quarter

Operating revenue amounted to CAD 10.0 million (8.4 million). The YoY increase of 19% was driven by higher activity in Materials, while Systems revenue was stable year-over-year. Adjusted EBITDA amounted to CAD 0.2 million (-0.8 million). Materials order intake in the quarter amounted to CAD 7.4 million, including a CAD 1.5 million order from a tier-1 US defence customer. Cash flow from operating activities improved to CAD 3.4 million (-4.4 million).

AFK Vannkraft: Higher prices offset lower production

Power production in Q1 was 141.6 GWh (157.6 GWh) while the average price in the NO2 price area was 103.4 EUR/MWh (66.5 EUR/MWh) driven by lower total reservoir levels and higher gas prices due to the ongoing situation in the Middle East. As a result, revenue increased by 28% YoY and operating profit ended at NOK 131 million (93 million), corresponding to an operating margin of 81%.

Strong balance sheet

Arendals Fossekompani Parent company's financial position remains solid. Available cash at the end of the quarter amounted to NOK 568 million. In addition, the Parent company has undrawn credit facilities of NOK 2121 million, securing available liquidity of approximately NOK 2689 million. Net interest-bearing debt (NIBD), excluding shareholder loans, was NOK 167 million at the end of the quarter.

"We remain committed to capital discipline. Our strong balance sheet gives us the flexibility to support our existing portfolio and 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.

“Our focus is on driving operational value creation in our portfolio companies and capturing structural opportunities both at parent- and portfolio company level,” says Golding.

ENDS

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Q1 Financial report

The Q1 Financial Report is attached as a pdf file. All reports are published on the company's website: https://arendalsfossekompani.no/en/investor-relations/reports-and-presentations

Q1 2026 financial results webcast

Arendals Fossekompani (AFK) will release its Q1 2026 results on Wednesday, May 13 at 08:00am CEST. The results will be presented by CEO Benjamin Golding and CFO Lars Peder Fensli via webcast at 09:00 am CEST 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/IXBc570JaMEvrdWuNM-69Q

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

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 technolo-gies. 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.

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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 Securi-ties Trading Act.

This stock exchange announcement was published by Lars Peder Fensli, CFO of Arendals Fossekompani, on 13 May 2026 at 0800.