Interim report
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Energising companies, communities and technology for generations arendalsfossekompani.no Interim Report Q2 2026
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Arendals Fossekompani Interim Report Q2 2026 2 Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements Contents Highlights 3 About Arendals Fossekompani 5 Performance 6 Shareholder information 13 Declaration by the BoD and CEO 14 Financial statements 15
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Quarterly highlights ARENDALS FOSSEKOMPANI GROUP REVENUE NOK 884 million T otal revenue for Arendals Fossekompani Group amounted to NOK 884 million (899 million) in the second quarter. Operating profit was NOK 123 million (32 million), corresponding to an operating margin of 14% (4%). Fourth consecutive adjusted EBITDA-positive quarter Revenue for Q2 amounted to CAD 10.6 million (9.0 million), up 18% YoY driven by higher activity in both Materials and Systems. Adjusted EBITDA improved to CAD 1.4 million (-2.0 million), marking the fourth consecutive positive adjusted EBITDA quarter. T otal backlog reached CAD 28.5 million, anchored by a CAD 11.5 million Systems order from a new U.S. critical minerals customer. Stable revenue amid project timing delays Revenue for Q2 was GBP 23.2 million (23.0 million), with higher airtime traffic largely offset by fewer project completions due to timing delays. Operating profit was GBP 3.3 million (4.6 million). Contract wins of GBP 4.0 million during the quarter, of which GBP 3.2 million represented new business, support a solid pipeline into late 2026 and beyond. Order intake rebound with improving profitability Operating profit improved to EUR 3.1 million (1.2 million) despite a revenue decline to EUR 32.5 million (37.4 million), driven by cost reductions. After several quarters of prolonged sales cycles, order intake rebounded strongly to EUR 41.9 million (34.3 million). Higher production and prices Power production in Q2 was 124.2 GWh, significantly higher than Q2 2025 (58.6 GWh), which had periods of minimum regulated waterflow. Revenue was NOK 129 million (37 million), supported by an average NO2 price of 96.5 EUR/MWh (58.4 EUR/MWh), driven by persistently low reservoir levels and higher gas prices. Continued growth and active M&A agenda On July 24, TA Associates' strategic investment in Volue was completed, with Arendals Fossekompani receiving cash proceeds of EUR 36.1 million. On July 22, Volue announced an indicative proposal to acquire Energy One Limited (ASX:EOL), an Australian energy market software provider. Recurring revenue grew 17% YoY, with total Q2 revenue of EUR 37.6 million (32.6 million) and an adjusted cash EBITDA margin of 16% (23%). Arendals Fossekompani Interim Report Q2 2026 3 Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements Operational highlights
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Group financial highlights Financial figures (MNOK) Q2 2026 Q2 2025 YTD 2026 YTD 2025 Arendals Fossekompani consolidated Revenue and other income 884 899 1,813 1,868 Operating profit 123 32 278 106 Margin 14% 4% 15% 6% Operating profit by consolidated portfolio companies AFK Parent (Vannkraft & Management) 90 -5 196 68 ENRX 34 13 57 17 NSSLGlobal 42 63 101 110 T ekna 1 -26 -10 -48 AFK Eiendom 2 -1 2 -1 Other investments -45 -12 -67 -38 Operating profit 123 32 278 106 Net financial items -44 29 -40 14 AFK share of profit/loss from associated companies* -16 13 -49 27 Profit before income tax 63 73 189 147 Profit (-loss) cont. operations -23 42 10 38 * Including investment in Faraday T opco, the company that indirectly owns all shares in Volue Revenue and other income (MNOK) 2024 2025 2026 Operating profit (MNOK) 2024 2025 2026 Profit (-loss) (MNOK) 2024 2025 2026 1,027 969 929 Quarter 1 899 884969 1,253 Quarter 2 909 853 Quarter 3 1,175 990 Quarter 4 155 115 75 Quarter 1 73 32 123 Quarter 2 51 33 Quarter 3 155 -159 Quarter 4 Quarter 1 -3 Quarter 2 -55 -23 Quarter 3 -25 Quarter 4 -331 236 33 42 141 141 Arendals Fossekompani Interim Report Q2 2026 4 Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements Group financial highlights
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Arendals Fossekompani Interim Report Q2 2026 5 Arendals Fossekompani around the world MAIN INVESTMENTS 6 (1 listed) EMPLOYEES 2,175 COUNTRIES 24 LISTED ON THE OSLO STOCK EXCHANGE 1913 HEAD OFFICE Arendal (Norway) ABOUT ARENDALS FOSSEKOMPANI Arendals Fossekompani is an industrial investment company. Through active, long-term ownership, we combine industrial, technological, and capital markets expertise to identify and develop opportunities for sustainable value creation. Arendals Fossekompani Group Management HEAD OFFICE Arendal, Norway EMPLOYEES 20 COUNTRIES 1 Industrial induction heating solutions OWNERSHIP 98% HEAD OFFICE Skien, Norway EMPLOYEES 914 COUNTRIES 20 Additive manufacturing materials and plasma systems OWNERSHIP 72% HEAD OFFICE Sherbrooke, Canada EMPLOYEES 142 COUNTRIES 5 LISTED ON Oslo Børs MARKET CAP (30.06) 894 MNOK Cyber secure satellite communication services anywhere OWNERSHIP 80% HEAD OFFICE London, UK EMPLOYEES 247 COUNTRIES 9 Portfolio of property investments and development projects OWNERSHIP 100% HEAD OFFICE Arendal, Norway EMPLOYEES 5 COUNTRIES 1 500 GWh hydropower production providing steady cash flow OWNERSHIP 100% HEAD OFFICE Froland, Norway EMPLOYEES 17 COUNTRIES 1 Software solutions for the energy transition OWNERSHIP 36% HEAD OFFICE Oslo, Norway EMPLOYEES 814 COUNTRIES 11 Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements
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Arendals Fossekompani Interim Report Q2 2026 6 Highlights of Q2 2026 Figures refer to results for continued operations, unless specified otherwise. Figures in parentheses refer to the same period the previous year. Financials T otal revenue for the Group amounted to NOK 884 million (899 million). Group revenue development YoY was primarily impacted by lower revenue in ENRX, offset by high electricity prices and power production in AFK Vannkraft. Operating profit amounted to NOK 123 million (32 million) in the second quarter, corresponding to an operating margin of 14% (4%). The increase reflects higher revenue levels in AFK Vannkraft, as well as improved profitability in ENRX and T ekna. Impairments of NOK 34 million, largely related to organisational and financial restructuring in Veyt, had an adverse effect on operating profit in the quarter. Net financial items in Q2 included fair value adjustments related to financial investments of NOK -22 million and unrealized loss on FX derivatives of NOK -6 million. Recognised share of net loss in Faraday T opco was NOK -16 million (15 million) in Q2. Consolidated earnings before tax amounted to NOK 63 million (73 million), and ordinary profit after tax, but before non- controlling interests, totaled NOK -23 million (42 million). Earnings after tax reflect the high effective tax rate, including the resource rent tax, applicable to Norwegian hydropower. Operating in international markets, Arendals Fossekompani Group is naturally exposed to currency fluctuations. Revenue in ENRX, NSSLGlobal and T ekna, translated into Norwegian kroner, was negatively impacted by the strengthened NOK compared to Q2 2025. Financial position of the Parent company The financial position of Arendals Fossekompani Parent com- pany 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 avail- able liquidity of NOK 2,611 million at the end of the quarter. The Net Interest Bearing Debt (NIBD) was NOK 246 million at the end of the quarter. Book value of equity per quarter end was NOK 5,138 million (5,351 million), corresponding to an equity ratio of 84% (84%). Management cost for the quarter was NOK 14 million (17 million). Events after the close of the quarter On 24 July, the previously announced agreement of bringing in TA Associates as a strategic investment partner in Volue was closed. As an effect of this transaction, Arendals Fossekompani has received cash proceeds of EUR 36.1 million after the close of the quarter. After closing, Arendals Fossekompani’s shareholding in Faraday T opCo/ Volue AS is 36%. On 22 July, Volue announced an indicative and non-binding proposal regarding a potential acquisition of Energy One Ltd, a company listed on the Australian Securities Exchange (ASX:EOL). 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. Outlook There is ongoing uncertainty associated with geopolitical turmoil, changes in trade and regulatory environment, supply chain constraints, interest rates, inflation, as well as volatile energy prices, affecting our portfolio companies to different degrees. In this unpredictable environment, Arendals Fossekompani’s solid financial position enables continued support of our portfolio companies, both in handling potential short-term challenges and with continued investments to accelerate growth and strengthen long-term competitiveness. Arendals Fossekompani Group revenue in 2026 is expected to be in line with 2025. Operating profit is expected to be significantly higher in 2026. Arendals Fossekompani Group HEAD OFFICE Arendal, Norway EMPLOYEES 2,175 COUNTRIES 24 CHIEF EXECUTIVE OFFICER Benjamin Golding CHAIR Trond Westlie Arendals Fossekompani is a long-term industrial investment company that combines industrial, technological, and capital markets expertise to identify and develop opportunities for sustainable value creation. Arendals Fossekompani Group - Financial figures (MNOK) Q2 2026 Q2 2025 YTD 2026 YTD 2025 Revenue and other income 884 899 1,813 1,868 Operating profit 123 32 278 106 Operating margin 14% 4% 15% 6% Earnings before tax 63 73 189 147 Earnings after tax -23 42 10 38 Operating cash flow 80 -54 275 36 NIBD 236 302 236 302 Equity 4,887 5,263 4,887 5,263 Equity ratio 62% 62% 62% 62% Currency rates (NOK/CAD): Average Q2 2026: 6,95. Average Q2 2025: 7,58. End Q2 2026: 6,97. End Q2 2025: 7,38. Currency rates (NOK/GBP): Average Q2 2026: 12,88. Average Q2 2025: 13,84. End Q2 2026: 13,12. End Q2 2025: 13,83. Currency rates (NOK/EUR): Average Q2 2026: 11,17. Average Q2 2025: 11,66. End Q2 2026: 11,31. End Q2 2025: 11,83. Development last five quarters Revenue (MNOK) and operating margin Q2 25 899 Q3 25 853 Q4 25 990 Q1 26 929 Q2 26 884 4% 4% -16% 17% 14% -2% Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements Arendals Fossekompani Group
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Arendals Fossekompani Interim Report Q2 2026 7 HEAD OFFICE Oslo, Norway OWNERSHIP 36% (as of July 2026) EMPLOYEES 814 COUNTRIES 11 CHIEF EXECUTIVE OFFICER Stephan Sieber CHAIR Peter Michael Daffern Volue is a leading supplier of technology for the energy transition. The company offers software, insight and services to energy and grid companies. Over 800 employees support more than 1,100 customers in optimising energy production, trading, distribution and consumption. Volue is co-owned by Arendals Fossekompani, Advent International, Generation Investment Management and TA Associates. Highlights of Q2 2026 Figures in parentheses refer to the same period the previous year. Arendals Fossekompani recognises its share of net profit in Faraday T opco AS (the holding company indirectly owning all shares in Volue). Reported EBITDA in Faraday T opco in the quarter was NOK 57 million (106 million). T otal depreciation and amortisation totalled NOK 107 million (51 million), whilst operating profit amounted to NOK -50 million (55 million). Reported net result after tax ended at NOK -40 million, whereof Arendals Fossekompani recognised its share of loss of NOK -16 million in the quarter. Volue continues to deliver strong growth in recurring revenue as a part of the company's Software-as-a-Service (SaaS) expansions across Europe and Japan. YoY growth in recurring revenue was 17%. T otal revenue in Q2 amounted to EUR 37.6 million (32.6 million). The YoY growth of 15% was a result of strong upsell to existing customers and new logo expansion, with 59 new customers contracted in the quarter. The strong market expansion, combined with Volue's scalable business model, delivered solid margins for the quarter. The adjusted cash EBITDA margin in Q2 was 16% (23%), and the adjusted cash EBITDA was EUR 5.9 million (7.6 million). Volue incurred non-recurring costs of EUR 4.4 million in Q2. The non- recurring costs are related to restructuring, as well as external costs for acquisition processes and post-merger integration work. Volue entered 2026 with a strengthened commercial and leadership platform following significant investments in 2025 to support the company’s next growth phase. These investments are increasingly translating into commercial momentum, with Q2 bookings up 45% YoY on an organic basis and a strong and growing backlog entering H2. With the expanded organisation now largely in place and the cost base expected to remain broadly stable, Volue expects to see increasing operating leverage in H2, with accelerating revenue growth translating into stronger cash EBITDA growth and margin expansion. Volue remains on track to deliver Rule of 40 performance for full year 2026. Operational Intelligence, including Data & Forecasting services, showed strong momentum driven by geographic expansions and onboarding of new customers. YoY growth in recurring revenue was 21% in the quarter. Commercial Operations, consisting of Optimisation & Planning and trading, had a strong quarter, with growth momentum driven mainly by upsell to existing customers. Volatility in the intraday markets is driving structural change in the energy markets, increasing demand for advanced solutions to handle risk and drive profitability. Recurring revenue grew 25% YoY in the quarter. T echnical Operations, consisting of Distribution software and Asset Operations, has a core focus on expanding its business in the Nordics mainly through upselling to existing customers. Existing customers are increasingly seeking more advanced solutions, which continues to generate new opportunities for Volue. YoY growth in recurring revenue was 11% in the quarter. During the quarter, Volue announced the acquisition of FlexPowerHub, a Salzburg-based provider of ancillary bidding intelligence that enables energy market participants to automatically generate optimal bids for the ancillary markets. By adding FlexPowerHub’s bidding intelligence, Volue will enhance its multi-market optimisation and trading across all the markets its customers participate in. On 22 July, Volue announced an unsolicited, indicative, non-binding and conditional proposal regarding a potential acquisition of Energy One Ltd, a company listed on the Australian Stock Exchange (ASX:EOL). 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. Outlook Volue will continue to prioritise strategic investments in its SaaS platform and expansion into new markets to capture market opportunities arising from the energy transition. Volue expects organic growth to accelerate in the second half of 2026, supported by a strong order backlog, healthy pipeline and continued demand across its markets. With the investments in its commercial and organisational platform largely in place, the company expects incremental growth to translate into increasing operating leverage, driving year- on-year cash EBITDA margin expansion. Volue will continue to combine disciplined organic growth with an active M&A agenda to strengthen its market positions and capture the significant opportunities created by the energy transition. Faraday T opCo AS – As reported (MNOK) Q2 2026 Q2 2025 YTD 2026 YTD 2025 Revenue and other income 437 413 862 819 EBITDA 57 106 97 196 Depreciation & Amortisation1 107 51 215 103 Operating profit -50 55 -118 94 Profit (-loss) -40 36 -123 73 NIBD -663 309 -663 309 Equity 6,385 6,776 6,385 6,776 Equity ratio 83% 83% 83% 83% 1. NOK 48 million of the Q2'26 amortisation and depreciation costs in Faraday T opco was related to amortisation of excess values identified as part of the Purchase Price Allocation (PPA) regarding Faraday T opco’s acquisition of Volue AS in November 2024 2. YoY change in NIBD largely impacted by proceeds from the sale of Volue Infrastructure business Volue group – Pro-forma figures (MNOK) Q2 2026 Q2 2025 YTD 2026 YTD 2025 Revenue 420 380 813 723 EBITDA 67 103 129 168 Adjusted EBITDA2 116 126 223 208 Adjusted Cash EBITDA3 66 88 136 130 The pro forma figures include financial information of PowerBot, SmartPulse, Quorum and Hakom Time Series, as if these entities were consolidated for all periods presented. Similarly, the pro forma figures exclude financial information of Infrastructure and Scanmatic for all periods presented. In addition, the quarterly pro forma figures exclude financials for the entity VEMS AS. 2. EBITDA less non-recurring items. In 2025, adjustments were related to company-wide strategy update, restructuring, recruitment and operational turn around initiatives and transaction costs. 3. Adjusted EBITDA less capitalised R&D and leasing costs. Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements Volue
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Arendals Fossekompani Interim Report Q2 2026 8 Q2 25 437 Q3 25 368 Q4 25 417 Q1 26 346 Q2 26 357 3% -3% -91% 7% 9% HEAD OFFICE Skien, Norway OWNERSHIP 98% EMPLOYEES 914 COUNTRIES 20 CHIEF EXECUTIVE OFFICER Bjørn E. Petersen CHAIR Benjamin Golding Leveraging decades of experience, ENRX is a global leader in industrial induction heating solutions, serving industries including automotive, tube and pipe, renewable energy, electrotechnical appliances and HVAC. ENRX’s solutions help customers improve efficiency and precision while reducing energy consumption. Financial figures (MNOK) Q2 2026 Q2 2025 YTD 2026 YTD 2025 Operating revenue 357 437 703 871 Operating profit 34 13 57 17 Operating margin 9% 3% 8% 2% Earnings before tax 25 2 40 -4 Operating cash flow 37 8 65 49 NIBD 556 1,098 556 1,098 Equity 455 394 455 394 Equity ratio 26% 18% 26% 18% Currency rates (NOK/EUR) Average Q2 2026: 11,17. Average Q2 2025: 11,66. End Q2 2026: 11,31. End Q2 2025: 11,83. Highlights of Q2 2026 Figures in parentheses refer to the same period the previous year. T otal operating revenue in Q2 amounted to EUR 32.5 mil- lion (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), driven by effective cost reduction initiatives and the absence of operating losses from the former Charge division. After several quarters of prolonged sales cycles, ENRX saw a notable improvement this quarter, with stronger order intake and customers moving through investment decisions more quickly. T otal order intake for the quarter was EUR 41.9 million (34.3 million) with all regions performing well. The total order backlog at the end of Q2 was EUR 67.1 million (61.5 million). The underlying political, tariff and trade-related uncertain- ties that previously lengthened customer decision-making remain unresolved, and management continues to moni- tor closely whether the improved momentum is sustained into the coming quarters. In addition, the global oversupply in automotive production capacity negatively impacts the demand for hardening machines, an important product category for ENRX. Other segments, including tube and pipe induction welding, are seeing more favourable condi- tions. Despite a revenue decline YoY in the quarter, ENRX is maintaining its Heat market share as market conditions are affecting all players in the industry. ENRX has taken both short- and long-term actions to adapt to the challenging market conditions and increase profit- ability and cash generation across the group. These include revenue initiatives, process optimisation programs as well as personnel- and material cost reductions. Several cost reduction initiatives were completed in Q4 2025 with run-rate effects in Q1 2026 onwards. Operating costs in Q2 were down 8% YoY. Outlook Despite a strong pick-up in order intake in Q2, ENRX expects the market for heating products to remain challenging over the coming 12 months. Customer decision-making processes will continue to take longer than normal as uncertainty dampens customers’ investment appetite. The cost base has been reduced going into 2026, positioning ENRX to navigate the current outlook. ENRX remains prepared to take additional measures should the market conditions deteriorate. -18% Development last five quarters Revenue (MNOK) and operating margin Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements ENRX
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Arendals Fossekompani Interim Report Q2 2026 9 Financial figures (MNOK) Q2 2026 Q2 2025 YTD 2026 YTD 2025 Revenue and other income 293 317 618 619 Operating profit 42 63 101 110 Operating margin 14% 20% 16% 18% Earnings before tax 40 56 104 101 Operating cash flow 74 56 165 115 NIBD -503 -426 -503 -426 Equity 605 646 605 646 Equity ratio 52% 55% 52% 55% Currency rates (NOK/GBP) Average Q2 2026: 12,88. Average Q2 2025: 13,84. End Q2 2026: 13,12. End Q2 2025: 13,83. Highlights of Q2 2026 Figures in parentheses refer to the same period the previous year. 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 with a value of GBP 4.0 million across the government and maritime sectors, of which GBP 3.2m was new business opportunities with the remainder being existing business contract extensions. The new contracts and extension of existing contracts confirm the continued relevance of NSSLGlobal’s product portfolio and service offerings across land and sea. The shift towards project-based work for the government and maritime sectors continues, and the organisation is adapting accordingly. Despite increased competition in airtime, customers continue to value NSSLGlobal's resilient and cyber secure solutions. NSSLGlobal’s sales and bid pipeline remains strong, including 12 multi-million tender opportunities across both the government and maritime sectors that are in this years opportunity pipeline for implementation from late 2026 and onwards. Outlook The satellite communications industry is undergoing structural change following the introduction of LEO constellations, offering lower-cost and higher-throughput alternatives to traditional GEO-based VSAT solutions. This development has put sustained pressure on airtime margins across the industry. NSSLGlobal is currently in a transition phase, shifting its business mix from airtime to higher value-added services. These services are more labour-intensive, resulting in structurally lower margins compared to traditional airtime. However, these offerings enhance NSSLGlobal’s long-term relevance for military, government and maritime customers The current geopolitical environment continues to drive high government activity and sales, which is expected to persist in the near term. HEAD OFFICE London, UK OWNERSHIP 80% EMPLOYEES 247 COUNTRIES 9 CHIEF EXECUTIVE OFFICER Sally-anne Ray CHAIR Arild Nysæther NSSLGlobal is an independent provider of cyber secure satellite and mobile communications and IT support, delivering high-quality voice and data services across the globe, regardless of location or terrain. NSSLGlobal’s activities are divided into four main areas: Airtime, Projects, Hardware and Service. Its main customers are within the maritime segment, the military and government sector, large international corporations, and the energy sector. Development last five quarters Revenue (MNOK) and operating margin 317 340 334 324 293 20% 19% 14% 18% 14% Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 -7% Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements NSSLGlobal
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Arendals Fossekompani Interim Report Q2 2026 10 Financial figures (MNOK) Q2 2026 Q2 2025 YTD 2026 YTD 2025 Operating revenue 73 67 143 132 EBITDA 8 -16 6 -30 Adjusted EBITDA1 9 -15 11 -21 Operating profit 1 -26 -10 -48 Operating margin 1% -38% -7% -37% Earnings before tax 1 -28 -10 -52 Operating cash flow -19 0 5 -31 NIBD -80 205 -80 205 Equity 380 139 380 139 Equity ratio 78% 29% 78% 29% Currency rates (NOK/CAD) Average Q2 2026: 6,95. Average Q2 2025: 7,58. End Q2 2026: 6,97. End Q2 2025: 7,38. 1. Adjusted EBITDA: In order to give a better representation of underlying performance, EBITDA is adjusted for non-recurring items. Highlights of Q2 2026 Figures in parentheses refer to the same period the previous year. 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 favorable sales mix and new orders in Systems. Both Materials and Systems performed above the company’s long-term target of 50% and 60% respectively. Adjusted EBITDA amounted to CAD 1.4 million (CAD -2.0 million), reflecting a CAD 3.4 million improvement. This marks T ekna’s fourth consecutive adjusted EBITDA-positive quarter. The profitability improvement was driven by higher revenue, improved contribution margin, and sustained effects from the company’s cost reduction program. Cash flow from operating activities was CAD -1.2 million (CAD 0.5 million) in the quarter, down CAD 1.7 million on working capital movements that offset the improved EBITDA. Materials revenue reached CAD 7.9 million (6.6 million) in the quarter, an increase of 20% YoY. Growth was driven by strong operational execution and sustained demand from aerospace and defense customers. Order intake amounted to CAD 7.4 million (CAD 7.0 million) and the backlog stood at CAD 16.6 million at quarter end (CAD 18.2 million). Although the backlog per quarter-end was reduced YoY, the order quality continued to improve, with higher average selling prices and shorter delivery schedules. Systems revenue reached CAD 2.7 million (2.4 million) in the quarter, up 13% YoY. Revenue benefited from the execution of projects in the backlog and the initial contribution from a CAD 11.5 million order from a new U.S. critical minerals cus- tomer secured in June. Order intake in the quarter was CAD 11.7 million (CAD 2.1 million). As a result, backlog increased to CAD 11.9 million (2.7 million) at quarter end, strengthening revenue visibility for the remainder of 2026 and providing a solid foundation for production into 2027. Outlook Reshoring and localised manufacturing trends bolster growth in additive manufacturing and long-term demand for T ekna’s products. Materials order intake, growing customer order sizes, and an expanding systems pipeline, combined with current market trends, support T ekna’s long-term ambitions of double-digit annual topline growth through 2030. Rising defense spending represents a meaningful opportunity across both business areas, with defense OEMs advancing qualification of T ekna’s powders for additive manufacturing applications and continued pipeline development in our PlasmaSonic systems. Materials business is primarily driven by aerospace and defense, supported by T ekna’s established qualifications and strong relationships with major OEMs in North America and Europe. Medical demand and qualifications are growing. Despite the natural volatility of the Systems business, caused by public funding delays, tariffs and other geopolitical events, the sales pipeline continues to advance, with further orders anticipated in 2026. T ekna remains focused on profitability, working capital reduction and disciplined capital management. HEAD OFFICE Sherbrooke, Canada OWNERSHIP 72% EMPLOYEES 142 COUNTRIES 5 CHIEF EXECUTIVE OFFICER Claude Jean CHAIR Dag T eigland T ekna is a world-leading provider of advanced materials and plasma systems for industrial applications. The company produces high-purity metal powders used in additive manufacturing for the aerospace and defence, medical and consumer electronics sectors, and develops optimised induction plasma systems used in industrial research and production. Development last five quarters Revenue (MNOK) and operating margin 67 61 71 71 73 -38% -11% -6% -15% 1% Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 8% Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements T ekna
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Arendals Fossekompani Interim Report Q2 2026 11 0 100 200 300 400 500 600 0.0 2.5 5.0 7.5 10.0 12.5 15.0 03/21 09/21 03/22 09/22 03/23 09/23 03/24 09/24 03/25 09/25 03/26 HEAD OFFICE Froland, Norway OWNERSHIP 100% EMPLOYEES 17 COUNTRIES 1 CHIEF EXECUTIVE OFFICER Benjamin Golding CHAIR Trond Westlie AFK Vannkraft generates power at two locations in the Arendal watercourse. The Bøylefoss and Flatenfoss hydropower plants produce around 500 GWh annually. T ogether with Åmli and Froland municipalities, AFK Vannkraft is also constructing a new hydropower facility, Kilandsfoss, which will produce an annual average of 38 GWh. AFK Vannkraft sells its hydropower production in the day-ahead (spot) market. Financial figures (MNOK) Q2 2026 Q2 2025 YTD 2026 YTD 2025 Revenue and other income 129 37 292 163 Operating profit 104 13 235 106 Operating margin 80% 34% 80% 65% Earnings before tax 104 13 235 106 Earnings after tax 38 7 83 41 Operating cash flow 19 -68 84 -53 Highlights of Q2 2026 Figures in parentheses refer to the same period the previous year. Power production in Q2 was 124.2 GWh (58.6 GWh), significantly higher than the same quarter last year, which had periods of minimum regulated waterflow due to low reservoirs, precipitation, and inflow locally. The average price in the NO2 price area during the quarter was 96.5 EUR/ MWh (58.4 EUR/ MWh). NO2 power prices remained elevated year-on-year through most of Q2 2026, reflecting persistently low reservoir levels and limited spring inflow in Southern Norway, as well as higher gas prices due to the ongoing situation in the Middle East. Underlying reservoir levels stayed critically low for the season entering Q3. Outlook Power prices in 2026 are expected to be higher than 2025 levels, with uncertainty primarily driven by hydrological con- ditions, fuel prices, and cross-border transmission capacity. Hydropower production is expected to be higher in 2026 compared to 2025, despite some planned downtime related to Flatenfoss dam from mid Q2 to mid Q4 2026. Power price & power generation Power generation (GWh/Week) Power price (EUR/MWh) Development last five quarters Revenue (MNOK) and operating margin 37 59 137 162 129 34% 60% 77% 81% 80% Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 249% Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements AFK Vannkraft
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Arendals Fossekompani Interim Report Q2 2026 12 HEAD OFFICE Arendal, Norway OWNERSHIP 100% EMPLOYEES 5 COUNTRIES 1 CHIEF EXECUTIVE OFFICER T om Krusche Pedersen CHAIR Lars Peder Fensli AFK Eiendom is a property company which owns and develops properties in and around Arendal, and in connection with Arendals Fossekompani's portfolio companies. Residential development Bryggebyen A 55-dekar property transforming an old shipyard area into a new urban residential and commercial zone under the name, Bryggebyen. The transformation is expected to take 10-15 years and will establish 500–700 residential units in combination with exciting trade and commerce offerings. The third stage of the apartment complex was completed in 2024, adding 48 apartments to the total of 161 apartments developed so far. The company Bryggebyen Folkebad AS is in the planning process to build an indoor swimming facility at Bryggebyen. Arendal municipality has signed a long-term rental agreement, and a final investment decision is expected in Q3 2026. Bryggebyen Folkebad AS is owned by AFK Eiendom (51%), Pactum Eiendom (29%) and Uthalden Eiendom (20%). Commercial development Bøylestad Energy Park A 1,600-dekar property in Froland with immediate proximity to the largest power hub in the eastern part of Agder. The property is designated and approved for the development of energy-intensive industries by the Ministry of Local Government and Regional Development. Longum Property A 90-dekar property outside Arendal, close to the E18 highway. AFK Eiendom built a new 7,500 sqm production facility for Kitron on a long-term lease. Arendal Airport & Property Gullknapp AFK Eiendom is the majority owner of Gullknapp, which comprises an airport and an attractive 2,000-dekar industrial and commercial area. The main user of the airport facility is OSM Aviation Academy which runs a pilot school. Industrial Lease Bølevegen 4 Located along the River Skien, one kilometre south of the town centre, the 4,700 sqm building is fully let to Arendals Fossekompani's portfolio company, ENRX, on a long-term lease. Bedriftsveien 17 A 3,500 sqm building located in the middle of the emerging commercial area, Krøgenes, three kilometres east of central Arendal. The facility is fully let to Scanmatic on a long-term lease. Vindholmen A 3,600 sqm facility fully let to National Oilwell Varco (NOV) on a long-term lease. Financial figures (MNOK) Q2 2026 Q2 2025 YTD 2026 YTD 2025 Operating revenue 13 16 22 37 Operating profit 2 -1 2 -1 Operating margin 14% -9% 9% -3% Earnings before tax -2 -6 -3 -10 Operating cash flow -5 17 11 36 NIBD 235 232 235 232 Equity 264 184 264 184 Equity ratio 42% 32% 42% 32% Kontali ARR was NOK 22.7 million in Q2 2026 (20.7 million), corre- sponding to 10% growth YoY. The quarter was characterised by continued growth in recurring revenue and active users on the insight platform, while consulting revenues showed a slight decline. During Q2, Kontali further enhanced several trade and market dashboards, and the company continued to provide in-depth analyses on trade flows and market dynamics. Kontali is well-positioned for increased growth both with its subscription product and advisory business. Veyt ARR was NOK 25.5 million in Q2 2026 (NOK 23.2 million), corresponding to 10% growth year-on-year. The quarter was characterised by organisational and financial restructuring, which resulted in impairments of NOK 26.1 million in the quarter. Cellect ARR was NOK 1.1 million in Q2. Revenue and ARR are expected to continue to grow in 2026, as Cellect further develops its solutions for managing utility-scale energy storage systems. The company has so far contracted with six large energy storage players and is in advanced discussions with several energy storage players in Europe. Other investments A world leading aquaculture data and analysis provider. A market intelligence provider for low-carbon markets. Enhancing energy storage asset management through advanced analytics and seamless integration. Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements AFK Eiendom and Other investments
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Arendals Fossekompani Interim Report Q2 2026 13 Shareholder information Shares and shareholders There were a total of 54,982,463 outstanding shares in the company at the end of the quarter. At the end of the quarter, a total of 1,012,787 were treasury shares. The share price was NOK 175 on 30 June 2026, compared to NOK 131.5 on 30 June 2025. Risks and uncertainties Arendals Fossekompani is exposed to credit risk, market risk and liquidity risk. These matters are described in detail in Note 16 to the annual financial statements for 2025. Related party transactions The company’s related parties comprise subsidiaries, associates and members of the Board of Directors and executive management. Transactions between Arendals Fossekompani companies and other related parties are based on the principles of market value and arm’s length distance. Transactions carried out between related parties are detailed in Note 4. None of these transactions are considered of material importance for the company’s financial position or earnings. 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. Note that there is uncertainty associated with geopoliti- cal turmoil, changes in trade and regulatory environment, supply chain constraints, inflation, as well as volatile energy prices. These factors contribute to uncertainty in our forward-looking statements. Financial guidance on key metrics is performed by each portfolio company in their local currency. ENRX ENRX expects revenue to be lower in 2026 than in 2025, while operating profit is expected to be higher in 2026. NSSLGlobal NSSLGlobal expects 2026 revenue to be in line with 2025. Operating profit in 2026 is expected to be lower than 2025. T ekna T ekna expects revenue and operating profit in 2026 to be higher than in 2025. AFK Vannkraft AFK Vannkraft expects revenue and operating profit in 2026 to be higher than in 2025. AFK Eiendom AFK Eiendom expects revenue in 2026 to be in line with 2025. Operating profit is expected to be higher in 2026 compared to 2025. Volue (Associated company) Volue expects revenue and operating profit to be higher in 2026 compared to 2025. The Board of Directors emphasises that significant uncertainty is associated with assessments of future circumstances. Froland, 20 August 2026 The Board of Directors, Arendals Fossekompani ASA Share price last ten years (NOK) Share price Share price incl. accumulated dividend (reinv.) 06/2016 06/2017 06/2018 06/2019 06/2020 06/2021 06/2022 06/2023 06/2024 06/2025 06/2026 0 100 200 300 400 500 600 700 800 900 1,000 Arendals Fossekompani is committed to maintaining an open dialogue with its shareholders, investors, analysts, and the financial markets in general. Our goal is to ensure that the share price reflects its underlying value by making all price-relevant information available to the market. 9% 16% Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements
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Arendals Fossekompani Interim Report Q2 2026 14 Declaration by the Board of Directors and the CEO The Board of Directors and CEO have today discussed and approved the interim report for the first half and the condensed consolidated financial statements of Arendals Fossekompani ASA as at 30 June 2026 and for the period 1 January – 30 June 2026, including condensed consolidated comparative figures as of 30 June 2025 and for the first six months of 2025. The interim financial statements have been prepared in accordance with the requirements of IAS 34, Interim Financial Reporting, as adopted by the EU, and additional disclosures pursuant to the Norwegian Securities Trading Act. T o the best of the knowledge of the Board and the CEO, these interim financial statements for the period 1 January – 30 June 2026 have been prepared in accordance with applicable accounting standards and the disclosures in the financial statements present fairly the Group’s assets, liabilities, financial position and performance as at 30 June 2026 and 30 June 2025. T o the best of the knowledge of the Board and the CEO, these interim financial statements present fairly important events in the accounting period and their importance for these interim financial statements. T o the best of the knowledge of the Board and the CEO, the description of the key risks and uncertainties facing the business in the next accounting period and the description of related parties’ material transactions are also fairly presented. Froland, 20 August 2026 The Board of Directors, Arendals Fossekompani ASA Trond Westlie Chair Morten Bergesen Board Member Didrik Vigsnæs Board Member Arild Nysæther Board Member Stine Rolstad Brenna Board Member Lise Lindbäck Board Member Anne Grethe Dalane Board Member Benjamin Golding Chief Executive Officer Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements
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Arendals Fossekompani Interim Report Q2 2026 15 Consolidated statement of income (MNOK) Note Q2 2026 Q1 2026 Q2 2025 YTD 2026 YTD 2025 FY 2025 Revenue 5 876 921 891 1 797 1 857 3 699 Other Income 5 7 8 12 11 12 Revenue and other income 884 929 899 1 813 1 868 3 711 Materials and consumables used 5 323 332 364 655 717 1 487 Employee benefit expenses 247 272 313 519 649 1 242 Other operating expenses 5 115 122 135 236 283 595 Operating expenses 684 726 812 1 411 1 650 3 324 EBITDA 200 202 88 402 218 387 Depreciation 5 34 34 42 68 85 167 Amortisation 10 11 13 21 27 54 Impairment loss property, plant and equipment 3,5 – – – – – 17 Impairment loss intangible assets 3,5,7 34 2 – 35 – 168 Operating profit 123 155 32 278 106 -19 Finance income 38 29 53 67 84 191 Finance costs 82 25 24 107 70 164 Net financial items -44 4 29 -40 14 27 Share of profit or loss of associates and joint ventures -16 -33 13 -49 27 53 Profit before income tax 63 126 73 189 147 61 Income tax expense 86 93 32 179 109 212 Profit (-loss) -23 33 42 10 38 -152 ATTRIBUTABLE TO Non-controlling interests -9 3 -5 -6 -16 -37 Equity holders of the company -14 30 46 16 54 -114 Basic/diluted earnings per share (NOK) -0,26 0,54 0,84 0,29 0,98 -2,08 Statement of comprehensive income (MNOK) Note Q2 2026 Q1 2026 Q2 2025 YTD 2026 YTD 2025 FY 2025 Items that may be reclassified to statement of income T otal Effect from Foreign Exchange -8 -37 -48 -45 -84 -103 Change on Cash flow hedges -8 3 -5 -5 2 3 T ax on cash flow hedges that may be reclassified to P&L 2 -1 1 1 – -1 Items that may be reclassified to statement of income -14 -35 -52 -49 -83 -101 Items that will not be reclassified to statement of income Change in financial assets at fair value through OCI -10 19 12 10 19 1 Actuarial gains and losses – – – – – 1 Items that will not be reclassified to statement of income -10 19 12 10 19 2 T otal Other Comprehensive Income (OCI) -23 -16 -41 -39 -64 -99 Profit (-loss) -23 33 42 10 38 -152 T otal Comprehensive Income -46 17 1 -29 -26 -250 ATTRIBUTABLE TO Non-controlling Interests -11 8 -16 -3 -26 -51 Equity holders of the parent -35 9 17 -26 – -199 Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements
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Arendals Fossekompani Interim Report Q2 2026 16 Consolidated statement of financial position (MNOK) Note Q2 2026 Q1 2026 Q2 2025 FY 2025 ASSETS Property, plant and equipment 1 173 1 202 1 239 1 233 Intangible assets 3,7 807 827 1 028 859 Investments in associates and joint ventures 2 536 2 559 2 585 2 602 Net pension assets 40 40 43 41 Non-current receivables and investments 269 288 187 279 Deferred tax assets 126 120 109 119 Non-current assets 4 952 5 035 5 191 5 133 Inventories 686 639 738 656 Contract assets 101 74 188 108 Current receivables 772 780 790 836 Cash and cash equivalents 1 436 1 617 1 561 1 513 Derivatives - current assets – – 1 – Financial assets at fair value through OCI 45 55 53 36 Current assets 3 040 3 165 3 331 3 149 T otal assets 7 992 8 200 8 521 8 283 Note Q2 2026 Q1 2026 Q2 2025 FY 2025 EQUITY AND LIABILITIES Share capital 224 224 224 224 Other paid-in capital 30 30 28 29 Treasury shares -101 -101 -105 -103 Other reserves 43 48 53 23 Retained earnings 4 430 4 621 4 834 4 640 Capital and reserves attributable to owners of the company 4 626 4 822 5 033 4 812 Non-controlling Interests 260 270 230 293 T otal equity 4 886 5 092 5 263 5 105 Non-current bond loans 499 499 499 499 Non-current interest-bearing debt 361 358 768 301 Pension liabilities 39 37 49 42 Non-current provisions 5 5 17 9 Deferred tax liabilities 24 25 43 25 Non-current lease liabilities 135 149 203 169 Non-current liabilities 1 062 1 073 1 579 1 045 Current interest-bearing debt 489 497 138 497 Bank overdraft 140 130 204 190 Derivatives - current liabilities 5 -3 1 – Accounts payable 217 216 267 234 Payable income tax 210 207 134 197 Dividends and group contribution – 32 – – Contract liabilities 145 88 125 104 Current lease liabilities 48 54 51 53 Current provisions 71 76 84 94 Other current liabilities 718 737 674 762 Current liabilities 2 044 2 034 1 678 2 132 T otal liabilities and equity 7 992 8 200 8 521 8 283 Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements
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Arendals Fossekompani Interim Report Q2 2026 17 Consolidated statement of cash flows (MNOK) YTD 2026 YTD 2025 Cash flow from operating activities Profit (-loss) for the period 10 38 ADJUSTED FOR Depreciation, impairment and amortisation 125 112 Net financial items 40 -14 Share of profit/loss from associates and joint ventures 49 -27 T ax expense 179 109 T otal after adjustments to net income 402 218 Change in Inventories -44 35 Change in trade and other receivables 68 80 Change in trade and other payables -2 – Change in other current assets -6 -16 Change in other current liabilities 35 -75 Change in other provisions -2 3 Change in employee benefits -1 -1 T otal after adjustments to net assets 448 244 T ax paid -172 -187 Net cash from operating activities A 275 57 Cash flow from investing activities Interest received and realized FX gains 10 17 Dividends received 5 32 Proceeds from sales of PPE 3 – Purchase of PPE and intangible assets -75 -158 Purchase of other investments -10 -4 Purchase of shares in subsidiaries/associates -7 -7 Proceeds from the sales of shares in subsidiaries – 6 Net cash from investing activities B -73 -113 Cash flow from financing activities Equity payments from/to non controlling interests 4 11 New long-term borrowings 70 9 Repayment of long-term borrowings -27 -42 Cash Flow from issuance of receivables 1 -2 Cash Flow from Net change in current interest bearing debt -36 72 Interest paid and realized FX losses -59 -61 Dividend paid -197 -137 Net cash from financing activities C -245 -149 Cash Flow A+B+C -43 -205 Opening balance for cash and cash equivalents 1 513 1 800 FX effects on cash accounts -44 -33 Closing balance for cash and cash equivalents 1 436 1 561 Consolidated statement of changes in equity (MNOK) Share capital Other paid- in capital Treasury shares Other reserves Retained earnings Capital and reserves attributable to owners of the company Non- controlling Interests T otal equity Opening balance at 01.01 2025 224 28 -106 103 4 895 5 144 270 5 414 Profit (-loss) for the period – – – – 54 54 -15 38 T otal Other Comprehensive Income (OCI) – – – -54 – -54 -11 -64 Other changes from subsidiaries – – – 3,8 -6 -2 14 12 Dividends paid – – – – -109 -109 -28 -137 Closing balance at 30.06 224 28 -105 53 4 834 5 033 230 5 263 Opening balance at 01.01 2026 224 29 -103 23 4 640 4 812 293 5 106 Profit (-loss) for the period – – – – 16 16 -6 10 T otal Other Comprehensive Income (OCI) – – – -20 -22 -42 3 -39 Treasury shares – 1 2 – – 3 – 3 Other changes from subsidiaries – – – 41 -37 4 2 6 Dividends paid – – – – -166 -166 -32 -198 Closing balance at 30.06 224 30 -101 43 4 430 4 626 260 4 886 Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements
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Arendals Fossekompani Interim Report Q2 2026 18 Statement of income Parent Company (MNOK) Note Q2 2026 Q1 2026 Q2 2025 YTD 2026 YTD 2025 FY 2025 Revenue 129 162 37 291 163 359 Other Income 4 2 5 6 9 17 Revenue and other income 133 165 42 297 173 376 Materials and consumables used 1 3 1 4 1 7 Employee benefit expenses 15 28 24 44 46 88 Other operating expenses 23 24 20 47 51 96 Operating expense 40 55 44 95 98 191 EBITDA 93 110 -2 203 74 185 Depreciation 3 3 3 6 6 12 Amortisation – – – – 1 1 Operating profit 90 107 -5 196 68 172 FINANCE INCOME AND FINANCE COSTS Finance income 6 29 147 50 176 191 240 Finance costs 6 118 14 -3 132 22 237 Net financial items -89 134 53 44 169 3 Profit before tax 1 240 47 241 237 175 Income tax expense 70 74 7 144 64 147 Profit (-loss) for the period -70 166 40 97 173 29 Basic/diluted earnings per share (NOK) -1,27 3,03 0,73 1,76 3,15 0,52 Statement of comprehensive income (MNOK) Profit for the period -70 166 40 97 173 29 Change in financial assets at fair value through OCI -10 19 12 10 19 1 Items that will not be reclassified to statement of income -10 19 12 10 19 1 T otal Other Comprehensive Income (OCI) -10 19 12 10 19 1 T otal Comprehensive Income -79 186 52 107 192 30 ATTRIBUTABLE TO Equity holders of the parent -79 186 52 107 227 30 Statement of financial position Parent Company (MNOK) Note Q2 2026 Q1 2026 Q2 2025 FY 2025 ASSETS Property, plant and equipment 285 269 239 262 Intangible assets 4 4 5 4 Investment in associates 2 571 2 571 2 571 2 571 Investment in subsidiaries 2 203 2 221 1 596 2 197 Intercompany loans - non current 159 177 722 77 Net pension assets 24 24 22 24 Non-current receivables and investments 186 187 144 188 Deferred tax assets 42 42 44 42 Non-current assets 5 474 5 494 5 342 5 363 Current receivables 86 226 228 121 Cash and cash equivalents 491 568 757 570 Financial assets at fair value through OCI 45 55 53 36 Current assets 622 849 1 038 726 T otal assets 6 095 6 343 6 379 6 090 EQUITY AND LIABILITIES Share capital 224 224 224 224 Other paid-in capital 30 30 28 29 Treasury shares -101 -101 -105 -103 Other reserves 32 41 38 21 Retained earnings 4 954 5 188 5 166 5 022 Capital and reserves attributable to owners of the company 5 138 5 382 5 351 5 193 T otal equity 5 138 5 382 5 351 5 193 Bond 499 499 499 499 Non-current interest-bearing debt 179 177 298 115 Pension liabilities 5 5 6 7 Non-current lease liabilities 57 57 58 57 Non-current liabilities 740 739 861 678 Accounts payable 20 11 30 15 Payable income tax 155 152 69 147 Current lease liabilities 2 2 2 2 Other current liabilities 39 58 67 56 Current liabilities 217 223 168 219 T otal liabilities and equity 6 095 6 343 6 379 6 090 Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements
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Arendals Fossekompani Interim Report Q2 2026 19 Statement of cash flows Parent Company (MNOK) YTD 2026 YTD 2025 Cash flow from operating activities Profit (-loss) for the period 97 173 ADJUSTED FOR Depreciation, Impairment and Amortization 6 7 Net financial items -44 -169 T ax expense 144 64 T otal after adjustments to net income 203 74 Change in trade and other receivables 3 -6 Change in trade and other payables 5 13 Cash flow form Internal Accounts Payable and Receivable -1 -3 Change in other current liabilities -9 -18 Change in employee benefits -1 -1 T otal after adjustments to net assets 199 59 T ax paid -135 -133 Net cash from operating activities A 64 -73 Cash flow from investing activities Interest received and realized FX gains 7 9 Dividends received 134 144 Purchase of PPE and intangible assets -28 -21 Purchase of other investments 146 -5 Purchase of shares in subsidiaries/associates -2 -40 Proceeds from the sales of shares in subsidiaries – 6 Net cash from investing activities B 111 94 Cash flow from financing activities New long-term borrowings 68 – Repayment of long-term borrowings -1 -1 Cash Flow from Internal Loans and Borrowings -128 -39 Interest paid and realized FX losses -31 -26 Dividend paid -165 -110 Cash flow from treasury shares 3 – Net cash from financing activities C -254 -177 Cash Flow A+B+C -79 -157 Opening balance for cash and cash equivalents 570 913 Closing balance for cash and cash equivalents 491 757 Statement of changes in equity Parent Company (MNOK) Share capital Other paid- in capital Treasury shares Other reserves Retained earnings Capital and reserves attributable to own- ers of the company T otal equity Opening balance at 01.01. 2025 224 28 -106 18 5 103 5 267 5 267 Profit (-loss) for the period – – – – 173 173 173 T otal Other Comprehensive Income (OCI) – – – 19 – 19 19 Effect of share based payment – – – 1 – 1 1 Dividends paid – – – – -110 -110 -110 Closing balance at 30.06. 224 28 -105 38 5 166 5 351 5 351 Opening balance at 01.01 2026 224 29 -103 21 5 022 5 193 5 193 Profit (-loss) for the period – – – – 97 97 97 T otal Other Comprehensive Income (OCI) – – – 10 – 10 10 Effect of share based payment – – – 1 – 1 1 Treasury shares – 1 2 – – 3 3 Dividends paid – – – – -165 -165 -165 Closing balance at 30.06. 224 30 -101 32 4 954 5 138 5 138 Note 1 Confirmation of financial framework The financial statements for the quarter have been prepared in accordance with IAS 34 Interim Financial Reporting. The report does not include all the information required in full annual financial statements and should be read in conjunction with the consolidated financial statements for 2025. Note 2 Key accounting policies The accounting policies for 2026 are described in the Annual Report for 2025. The financial statements have been prepared in accordance with IFRS Accounting Standards as adopted by the European Union and associated interpretations, as well as Norwegian disclosure requirements pursuant to the Norwegian Accounting Act and stock exchange regulations and rules, applicable as at 31 December 2025. The same policies have been applied in the preparation of the interim financial statements as at 30 June 2026. New standards effective from 1 January 2026 have had no material effect on the financial statements. Note 3 Estimates Areas involving significant use of estimates include the valuation of companies in the share portfolio and measurement of goodwill/excess values in subsidiaries and associates, and of impairment indicators for property, plant and equipment and intangible assets. Note 4 Related party transactions Disclosures concerning related party transactions are given in the company’s Annual Report for 2025, Note 24. Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements
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Arendals Fossekompani Interim Report Q2 2026 20 Note 5 Group Management AFK Vannkraft NSSL Global ENRX Segment reporting per: 30.06. 2026 2025 2026 2025 2026 2025 2026 2025 Sales at a point in time – – 291 163 613 619 520 460 Sales over time – – – – – – 187 411 Other Income 5 9 1 – 5 – 6 2 Revenue and other income 5 9 292 163 618 619 713 873 Operating expense 43 47 52 52 502 492 620 807 Depreciation, amortization, impairment 1 1 5 6 14 17 36 49 Operating profit -38 -38 235 106 101 110 57 17 Net financial items 44 169 – – 2 -9 -17 -21 Income tax expense -8 -2 152 65 30 26 9 14 Profit (-loss) from continuing operations 14 132 83 41 73 75 32 -18 T otal assets 5 930 6 118 304 261 1 174 1 172 1 754 2 175 T otal liabilities 764 921 193 107 569 526 1 299 1 782 Net interest bearing debt excl. SH loans 246 100 – – -503 -426 556 1 098 T ekna AFK Eiendom Other Investments (*) T otal Segment Segment reporting per: 30.06. 2026 2025 2026 2025 2026 2025 2026 2025 Sales at a point in time 112 102 16 33 32 38 1 584 1 416 Sales over time 27 30 – – – – 213 440 Other Income 6 3 6 4 – 6 29 23 Revenue & other income 145 134 22 37 32 44 1 826 1 880 Operating expense 139 164 12 29 49 64 1 418 1 656 Depreciation, amortization, impairment 15 18 8 8 50 18 129 117 Operating profit -10 -48 2 -1 -67 -38 279 108 Net financial items -1 -4 -5 -9 -23 -2 2 123 Income tax expense – 6 – – -4 – 179 109 Profit (-loss) from continuing operations -10 -58 -3 -9 -87 -40 102 122 T otal assets 489 475 627 575 220 331 10 498 11 107 T otal liabilities 109 336 363 391 1 129 1 134 4 426 5 197 Net interest bearing debt excl. SH loans -80 205 234 232 150 81 604 1 289 Eliminations & Adjustments T otal Consolidated Segment reporting per: 30.06. 2026 2025 2026 2025 Sales at a point in time – – 1 584 1 416 Sales over time – – 213 440 Other Income -13 -12 15 11 Revenue & other income -13 -12 1 813 1 868 Operating expense -7 -6 1 411 1 650 Depreciation, amortisation, impairment -5 -5 125 112 Operating profit -2 -1 278 106 Income from associates -49 27 -49 27 Net financial items -42 -109 -40 14 Income tax expense – – 179 109 Profit (-loss) from continuing operations -92 -84 10 38 T otal assets -2 506 -2 585 7 992 8 521 T otal liabilities -1 320 -1 939 3 106 3 258 Net interest bearing debt excl. SH loans -367 -987 236 302 (*) Other Investments include Kontali, Veyt, Utel and Cellect. Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements
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Arendals Fossekompani Interim Report Q2 2026 21 Note 6 Finance income, Parent Company (MNOK) YTD 2026 YTD 2025 Interest income, I/C 6 22 Interest income 14 22 Currency exchange income 23 1 Gain on partial sale of subsidiaries – 2 Dividend income 4 33 Dividend income I/C and group contribution 129 111 T otal 176 191 Finance cost, Parent Company (MNOK) YTD 2026 YTD 2025 Interest expense 15 18 Impairment I/C loans 66 1 Currency exchange losses 25 – Impairment shares in subsidiaries 19 – Other finance cost 7 3 T otal 132 22 Note 7 Impairment Recognised intangible assets in the Group amounts to MNOK 807 as of 30.06.2026, consisting of Goodwill MNOK 584 and Other intangibles MNOK 223. Goodwill is tested for impairment by groups or cash-generating units (CGU) equal to the defined operating segments in accordance with note 5. Goodwill is tested for impairment at least annually, or when there are indications of impairment. The impairment test was performed as of year end 2025. The recoverable amount is set to the highest of the estimated value in use or the fair values less costs. The value in use is the net present value of the estimated cash flow before tax, using a discount rate reflecting the timing of the cash flows and the expected risk. The discount rate is based on weighted average cost of capital (WACC) reflecting the current market rate of return in the industry where the CGU is being compared. Growth rate in the period is based on management's expectations of the development in the market. During Q2 2026, indications of impairment have been identified and based on the impairment test, the following write-downs have been recognised in this quarter: Other investments Certain assets no longer meet the recoverability criteria. As a result of this, the recognised goodwill in AFK Group related to early-phase investments was written down by MNOK 7.5 in this quarter, more specifically MNOK 4.4 related to Cellect and MNOK 3.1 related to Veyt. In addition, capitalised R&D related to Veyt was written down by MNOK 26.1. Summary T otal impairment loss intangible assets (including goodwill) recognised in AFK Group in this quarter amounts to MNOK 33.6. Alternative Performance Measures (APM) Net Interest Bearing Debt (NIBD) is defined as interest bearing debt - external interest-bearing receivables – cash and cash equivalents. Intercompany loans are excluded from the NIBD definition. Adjusted EBITDA is EBITDA adjusted for non-recurring items. Adjusted cash EBITDA is Adjusted EBITDA less capitalised R&D and leasing costs. Note 8 Events after the close of the quarter On 24 July, the previously announced agreement of bringing in TA Associates as a strategic investment partner in Volue was closed. As an effect of this transaction, Arendals Fossekompani has received cash proceeds of EUR 36.1 million after the close of the quarter. After closing, Arendals Fossekompani’s shareholding in Faraday T opCo/ Volue AS is 36%. On 22 July, Volue announced an indicative and non-binding proposal regarding a potential acquisition of Energy One Ltd, a company listed on the Australian Securities Exchange (ASX:EOL). 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. Highlights About Arendals Fossekompani Performance Shareholder information Declaration by the BoD and CEO Financial statements
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VISITING ADDRESS Langbryggen 9 4841 Arendal POSTAL ADDRESS Box 280 4803 Arendal +47 37 23 44 00 firmapost@arendalsfoss.no arendalsfossekompani.no © ARENDALS FOSSEKOMPANI ASA. ALL RIGHTS RESERVED. Want to read more? Find all reports at arendalsfossekompani.no