Second quarter financial results: Solid performance and improved operating profit

(Arendal, 21 August 2026) Arendals Fossekompani ASA (OSE: AFK) reported revenue of NOK 884 million (899 million) and an operating profit (EBIT) of NOK 123 million (32 million) in the second quarter of 2026. Ordinary profit after tax, but before non-controlling interests, totalled NOK -23 million (42 million).

The 2% decline in Group revenue was primarily driven by lower revenue in ENRX, largely offset by high electricity prices and power production in Hydropower. Operating profit improved significantly, corresponding to an operating margin of 14% (4%). The strong result was driven by hydropower, ENRX and Tekna. The improvement came despite impairments of NOK 34 million, mainly related to the organisational and financial restructuring in Veyt. Earnings after tax reflect the high effective tax rate, including the resource rent tax, applicable to Norwegian hydropower.

“Q2 was marked by strong operating results across our core portfolio companies. Volue delivered 17% growth in recurring revenues and strong commercial momentum with 45% growth in bookings YoY on an organic basis. ENRX’s continued operational focus is paying off with significant profitability improvement and order intake up 22% YoY. Tekna delivered 18% growth and an adjusted EBITDA margin of 13%. Our hydropower business also delivered a strong result reporting an operating profit of NOK 104 million and production more than double that of Q2 last year,” says Benjamin Golding, Chief Executive Officer of Arendals Fossekompani.

Portfolio highlights

Volue: Strong bookings and broad-based growth

Total revenue in Q2 amounted to EUR 37.6 million (32.6 million), corresponding to 15% growth. YoY growth in recurring revenue was 17%. The growth was a result of strong upselling to existing customers and new logo expansion, with 59 new customers contracted in the quarter. Commercial momentum continued to build, with Q2 bookings up 45% YoY on an organic basis and a strong and growing backlog entering H2. The adjusted cash EBITDA margin in Q2 was 16% (23%), and the adjusted cash EBITDA was EUR 5.9 million (7.6 million). Volue remains on track to deliver Rule of 40 performance for the full year 2026.

On 22 July, Volue announced an indicative, non-binding proposal to acquire Energy One Limited (ASX: EOL), an Australian energy market software provider. The proposal contemplates the acquisition of 100% of the issued share capital of the company by way of a board-recommended scheme of arrangement, for all-cash consideration of AUD 17.00 per Energy One share.

On 24 July, TA Associates’ strategic investment in Volue was completed, with Arendals Fossekompani receiving net cash proceeds of EUR 36.1 million. Following closing, Arendals Fossekompani’s shareholding in Faraday TopCo/Volue AS is 36%.

ENRX: Order intake pick-up and improving profitability

Total operating revenue in Q2 amounted to EUR 32.5 million (37.4 million). The revenue decline was driven primarily by Asia, reflecting slow order intake in the preceding period. Operating profit improved to EUR 3.1 million (1.2 million), corresponding to a 9% (3%) margin, driven by effective cost reduction initiatives and the absence of operating losses from the former Charge division. Total order intake for the quarter was EUR 41.9 million (34.3 million), an increase of 22% YoY. The total order backlog at the end of Q2 was EUR 67.1 million (61.5 million).

NSSLGlobal: Stable revenue amid project timing delays

Revenue for Q2 was GBP 23.2 million (23.0 million). Higher airtime traffic in the quarter was largely offset by lower project revenue, as fewer projects were completed in the quarter compared to Q2 2025, due to timing delays. Operating profit in the quarter was GBP 3.3 million (4.6 million). The YoY decline was largely a result of lower gross margins following delayed project invoicing. During the quarter, NSSLGlobal won contracts worth GBP 4.0 million across the government and maritime sectors, of which GBP 3.2 million was new business and the remainder extensions of existing contracts.

Tekna: Profitability and enhanced commercial visibility

Revenue for Q2 amounted to CAD 10.6 million (CAD 9.0 million). The YoY increase of 18% was driven by higher activity in both business areas, Materials and Systems. Contribution margin in Q2 increased to 57% (45%), supported by margin recovery in Materials on a favourable sales mix and new orders in Systems. Adjusted EBITDA amounted to CAD 1.4 million (CAD -2.0 million), reflecting a CAD 3.4 million improvement. This marks Tekna’s fourth consecutive adjusted EBITDA-positive quarter. Total order backlog reached a record CAD 28.5 million (20.9 million) at quarter end, anchored by a CAD 11.5 million Systems order from a new U.S. critical minerals customer, extending revenue visibility into 2027.

AFK Vannkraft: High production and prices

Power production in Q2 was 124.2 GWh (58.6 GWh). The average price in the NO2 price area during the quarter was 96.5 EUR/MWh (58.4 EUR/MWh). High production and prices resulted in an operating profit of NOK 104 million.

Solid financial position

The financial position of Arendals Fossekompani parent company remains solid. The company’s available cash on 30 June amounted to NOK 491 million. In addition, the company has undrawn credit facilities of NOK 2,119 million, securing available liquidity of NOK 2,611 million at the end of the quarter.

“Our solid financial position gives us the flexibility to create value through forward-looking investments, disciplined capital allocation, and active ownership,” 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, primarily driven by a 2025 impairment in ENRX and higher hydropower revenue.

ENDS

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Q2 Financial Report

The Q2 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

Q2 2026 financial results webcast

Arendals Fossekompani (AFK) will release its Q2 2026 results on Friday, 21 August at 08:00 CEST. The results will be presented by CEO Benjamin Golding and CFO Lars Peder Fensli via webcast at 09:00 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/puewMuacM942uK-Qe2cRDg

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For inquiries 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 21 August 2026 at 08:00 CEST.

More information: Access the news on Oslo Bors NewsWeb site

680446_Arendals Fossekompani Interim Report Q2 2026.pdf 680446_Arendals Fossekompani Interim Report Q2 2026 Presentation.pdf