(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. 
orwegian Securi-ties Trading Act. \
\
This stock exchange announcement was published by Lars Peder Fensli\, CFO of\
Arendals Fossekompani\, on 13 May 2026 at 0800. \