Third quarter financial results: Solid achievements despite lower revenue

07 Nov 2025 08:00 CET

(Arendal, 7 November 2025) Arendals Fossekompani ASA (OSE: AFK) reported revenue
of NOK 853 million (909 million) and an operating profit (EBIT) of NOK 33
million (51 million) in the third quarter of 2025. Ordinary profit after tax,
but before non-controlling interests, totalled NOK 733 million (-25 million).

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% com-pared 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. www.arendalsfossekompani.no

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.
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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, EVP and CFO
of Arendals Fossekompani ASA, on 7 November 2025 at 08:00 CET.

More information:
Access the news on Oslo Bors NewsWeb site

659052_Arendals Fossekompani Q3 Interim Report 2025.pdf
659052_Arendals Fossekompani Q3 Interim Report 2025 Presentation.pdf