Interim report
Page 1
Interim report H1 2026 INTERIM REPORT Q2 AND FIRST HALF 2026 1
Page 2
Highlights – H1 2026 p. 3 p. 10Interim consolidated financial statements p. 24Declaration by the board of directors and CEO p. 4Operational and financial review INTERIM REPORT Q2 AND FIRST HALF 2026 Contents p. 17Notes to the interim consolidated financial statements
Page 3
3 H1 2026 – Strengthened commercial positioning and advanced the path to scalable growth Sharpened commercial focus on U.S. low carbon power, driven by data center demand, and European cement, where Capsol sees the strongest potential for scalable value creation Capsol is well positioned to address the transformational U.S. opportunity to convert gas-fired peaker turbines into low-carbon baseload generation Advanced an exclusive U.S. commercial-scale gas turbine project into pre-FEED and established partnerships with project developers, expanding access to the US low-carbon power market Strengthened the European cement platform through Holcim’s strategic investment, demonstration at Dyckerhoff and partnership with Saipem Developed Capsol’s commercial model beyond traditional technology licensing, with the ambition to capture a larger share of project value H1 2026 – Financial & operational highlights Raised NOK 45 million in a private placement and refinanced existing debt, strengthening financial flexibility Implemented cost and cash preservation initiatives, reducing cash operating expenses by more than NOK 10 million year-on-year to better match reduced activity Ended H1 with NOK 21 million cash and NOK 27 million undrawn RCF, representing NOK 48 million available liquidity Customer engineering requests increased towards the end of H1, with studies secured for E.ON and Holcim and two CapsolGo units expected to operate for most of H2 Highlights – H1 2026 First half 2026 Highlights Subsequent events & Key Figures INTERIM REPORT Q2 AND FIRST HALF 2026 Amounts in NOK million Q2 2026 Q2 2025 H1 2026 H1 2025 2025 Total operating income 7.6 16.4 13.4 41.3 70.7 Gross profit 4.8 6.7 7.1 22.7 38.7 EBITDA -15.0 -15.7 -33.4 -24.6 -52.0 Profit (loss) for the period -21.0 -22.1 -46.0 -38.2 -81.1 Basic earnings per share -0.38 -0.61 Subsequent events Secured CapsolGo campaign for a UK gas engine application, marking the first field deployment in the segment and supporting further development of U.S. gas turbine solutions -0.28 -0.63 -0.41 Q1 2026 5.9 2.3 -18.3 -25.0 -0.35
Page 4
Operational and financal review
Page 5
5 During the first half of 2026, we sharpened Capsol’s commercial focus around two areas where we believe our technology and partnerships offer the strongest potential for long-term value creation: European cement and low-carbon power generation in the U.S. The carbon capture market remains characterized by long decision cycles, and commercial activity during the period was lower than anticipated. We have responded by taking decisive action to strengthen our financial position and align our cost base with the current market. Through the equity raise, refinancing and cost and cash preservation initiatives, we have strengthened our financial flexibility, preserving the capabilities required to pursue our highest-priority opportunities. In the U.S., the underlying market need continues to strengthen as utilities face unprecedented electricity demand while navigating speed-to-power requirements, emissions regulations and permitting constraints. Capsol addresses these challenges by converting underutilized peaker gas turbines into low-carbon baseload generation. Retrofitting existing turbines with carbon capture can unlock substantial additional power from hundreds of simple-cycle turbines across the U.S. Capsol is already evaluating opportunities involving more than 150 turbines, both directly and through partners. At the same time, we are developing Capsol’s commercial model. Historically, our commercial model has primarily centered on licensing our technology to individual projects. Technology licensing remains at the core of our capital-efficient business model. However, our work in the U.S. is creating opportunities for Capsol to participate more broadly in project development and capture a larger share of the value created by each project. This development is particularly evident in the U.S., where utilities and project developers increasingly seek integrated technology, engineering and project-development capabilities. Through partnerships with project developers and leading engineering companies, Capsol is positioning to deliver broader solutions for our customers rather than solely as a technology supplier. Our ongoing U.S. project is an important step in developing and validating this model, but the greater opportunity lies in applying it across a broader portfolio of low-carbon power projects. We are applying a similar portfolio mindset in European cement. Together with industrial partners, including Saipem, we are working with cement producers across multiple projects. Standardization, reuse of engineering and coordinated execution can reduce costs and risks across the portfolio, making each subsequent project more efficient. Our immediate priority is to secure Capsol’s technology and licensing position across the portfolio, while our broader commercial model creates opportunities to capture a larger share of the value generated by both U.S. and European projects. Looking to the second half of 2026, we expect two CapsolGo units to be in operation for the majority of the period. We are also seeing increased requests for engineering studies, indicating that Capsol has a strong value proposition that is withstanding a market slowdown. Combined with the measures taken to reduce our cost base, this is expected to narrow the gap to operational break-even in the second half. We enter this next phase as a more focused and financially disciplined company. Our objective is not only to deploy Capsol’s technology in more projects, but to build a scalable commercial platform that lowers carbon capture costs and increases the value Capsolcan capture from each successful deployment. CEO letter Operational and financial review Sharpening our focus and expanding our role in the value chain INTERIM REPORT Q2 AND FIRST HALF 2026 “Capsol is playing in the U.S. race for power. By converting underutilized peaker gas turbines into low-carbon baseload generation, we can unlock substantial additional power faster than alternative sources can be developed, creating a transformational opportunity for utilities, our partners and Capsol.” Wendy Lam, CEO of Capsol Technologies ASA
Page 6
6 During the first half of 2026, Capsol sharpened its commercial focus around European cement and low- carbon power generation in the U.S. Beyond the market opportunity for Capsol’s technology, the U.S. is supporting the development of a commercial model through which the Company can participate more broadly in project development and capture a larger share of the value created by each project. Growing electricity demand from data centers is increasing the need for reliable power, while utilities face pressure to expand generation capacity quickly within increasingly stringent emissions frameworks. According to Wood Mackenzie, hyperscalers are increasingly prioritizing access to reliable power over electricity cost, with carbon capture on natural gas emerging as a viable pathway for delivering low- carbon baseload generation at scale. This supports Capsol’s proposition of enabling utilities to convert existing gas-fired peaker assets into low-carbon baseload generation. The structure of the U.S. market increasingly requires an integrated approach combining technology, engineering and project-development capabilities. Capsol is therefore working alongside project developers and engineering partners from an earlier stage, taking on broader scope where this creates value while retaining the capital-efficient characteristics of its business model. This approach may create additional revenue opportunities and increase Capsol’s share of project-level value creation. Capsol has established partnerships with three U.S. project developers and advanced an exclusive commercial-scale project into pre-FEED. The project is progressing towards FEED, with a Final Investment Decision (FID) currently targeted for Q1 2028. Capsol is evaluating several commercial structures for the project and other US opportunities, including options involving build-own-operate (BOO) partners, Build- Transfer-Agreement (BTA`) and the sale of captured CO2 into the merchant market. The project is an important step to establish a repeatable commercial model for low-carbon power projects, with the potential to expand Capsol’s role and value capture beyond traditional technology licensing. In European cement, Capsol is developing a multi-project approach together with leading producers and industrial partners. The immediate priority is to secure Capsol’s technology and licensing position across multiple plants. By standardizing designs, reusing engineering and operational data and applying learnings across projects, the model has the potential to reduce capture costs, shorten project timelines and lower execution risk. In January 2026, Holcim became a strategic shareholder in Capsol following the successful CapsolGo demonstration campaign at its Dotternhausen cement plant in Germany. The investment represents strategic validation of Capsol’s Hot Potassium Carbonate technology by one of the world’s largest cement producers and strengthens the basis for broader collaboration across the cement sector. During the period, Capsol launched a CapsolGo demonstration campaign with Dyckerhoff at its cement plant in Germany, marking the Company’s fourth consecutive campaign in the sector. The campaign provides additional operational data and experience that can be applied across Capsol’scement portfolio, supporting technology selection and de-risking future full-scale projects. Capsol is working with Saipem and Everllence to strengthen the delivery model for industrial-scale projects. The partnerships combine Capsol’s carbon capture technology with complementary engineering, execution, compression and energy-system capabilities. Applying this integrated approach across multiple projects can improve efficiency throughout the project lifecycle and support a progressively more competitive cost of capture. Beyond cement, construction is progressing at Stockholm Exergi’s BECCS facility following FID in 2025, with Capsol’s industrial partner Saipem involved in project delivery. The project provides significant full- scale validation of Capsol’s HPC technology and an important industry reference. Building on this position, E.ON selected Capsol in June 2026 to perform a feasibility study for its Norrköpingenergy facility in Sweden. The study further strengthens Capsol’s position in biomass and waste-to-energy, where carbon capture can deliver both emissions reductions and permanent carbon removals. Subsequent to the reporting period, Capsol was selected by a major oil and gas company for a feasibility study in the refinery sector, further validating the applicability of Capsol’s technology beyond the Company’s current priority markets and highlighting the potential to expand its addressable market over the long term. Operational Review – First half 2026 Expanding value capture in U.S. low-carbon power Scaling a multi-project model in European cement INTERIM REPORT Q2 AND FIRST HALF 2026 Operational and financial review
Page 7
7INTERIM REPORT Q2 AND FIRST HALF 2026 Capsol’s technology is based on Hot Potassium Carbonate (HPC), a proven process used for decades in hundreds of industrial plants in pre-combustion applications. Through extensive laboratory work and CapsolGo demonstration campaigns across a range of industrial flue gases, Capsol believes it has developed the world’s most extensive experience applying HPC to post-combustion carbon capture. During the first half of 2026, Capsol continued to invest in research and development through its dedicated laboratory facilities in Stavanger. Combined with operational data from CapsolGo campaigns, the laboratory provides a controlled environment for testing and optimizing solvent performance, energy efficiency and process design across different operating conditions and industrial applications. This work continuously identifies new ways to improve performance, reduce operating and capital costs and expand the addressable range of industrial applications. The laboratory also supports customer-specific testing, validation and solvent optimization, strengthening Capsol’s commercial offering and providing a foundation for long-term service relationships. Capsol’s competitive advantage is therefore not a static technology, but a proven technology platform that continues to improve through laboratory testing, commercial deployment and operational data. Operational Review Operational and financial review Technology development Customer projects Operational data Improved technology Next projectLaboratory
Page 8
8INTERIM REPORT Q2 AND FIRST HALF 2026 For the first half of 2026, total operating income was NOK 13.4 million, down from NOK 41.3 million in the corresponding period of 2025. The lower activity level was also reflected in gross profit, which decreased to NOK 7 million from NOK 23 million in H1 2025. Revenues continued to be primarily generated by CapsolGo demonstration campaigns, and the year-on-year decline mainly reflected lower campaign utilization. During the second quarter, the campaign at Dyckerhoff was operational for less than two months due to planned downtime at the cement plant, resulting in a limited revenue contribution during the period. The downtime does not affect the total contract value but extends the duration of the campaign. The plant has resumed production, and the demonstration campaign is expected to run throughout the remainder of 2026. Cost of contract fulfilment was NOK 6.3 million in H1 2026, compared with NOK 18.6 million in the corresponding period of 2025. The gross margin remained relatively resilient despite the lower activity level, reflecting both the mix of project activity and a more consistent allocation of personnel and operating costs to cost of contract fulfilment. As a result, part of the cost reduction achieved during the period is reflected in gross profit rather than operating expenses. The decrease in cost of contract fulfilment primarily reflected the lower activity level related to demonstration campaigns. Personnel expenses amounted to NOK 30.0 million in H1 2026, compared with NOK 32.5 million in H1 2025. The 2026 figure included approximately NOK 4 million in non-cash share-based remuneration, while the corresponding remuneration had a cash effect in 2025. In addition, lower activity meant that approximately NOK 3 million less of personnel costs were allocated to cost of contract fulfilment than in the prior year. Adjusted for these effects, cash personnel expenses decreased by approximately NOK 9 million year on year, reflecting measures taken to align the Company’s organization and cost base with current activity levels. Other operating expenses amounted to NOK 10.5 million in H1 2026, compared with NOK 14.9 million in H1 2025. The NOK 4.4 million decrease reflects continued cost discipline and tighter prioritization of expenditures. Combined with the reduction in cash personnel expenses, this resulted in a year-on-year reduction in cash operating expenses, excluding cost of contract fulfilment, of more than NOK 10 million. Net financial items amounted to an expense of NOK 0.4 million in H1 2026, compared with an expense of NOK 3.4 million in H1 2025. Net financial items were affected by foreign exchange movements, while interest expenses decreased by approximately NOK 1 million year on year following the refinancing of the Company’s debt facilities. Financial review Operational and financial review Summary of profit and loss Total assets amounted to NOK 108.7 million at the end of Q2 2026, compared with NOK 148.8 million at the end of Q2 2025. Non-current assets were NOK 70.9 million, including NOK 52.1 million in property, plant and equipment. Current assets amounted to NOK 37.8 million, of which NOK 20.7 million was cash and cash equivalents. Total equity was NOK 66.5 million, corresponding to an equity ratio of 61.2%, compared with NOK 80.8 million and an equity ratio of 54.3% at the end of Q2 2025. During the first half of 2026, the Company strengthened its financial position through NOK 43.0 million in net proceeds from the private placement completed in January. Total liabilities amounted to NOK 42.2 million, of which NOK 19.1 million was classified as current. This compares with total liabilities of NOK 67.9 million and current liabilities of NOK 43.3 million at the end of Q2 2025. During the first half of 2026, the Company restructured its debt facilities with DNB, consolidating three existing facilities into a new revolving credit facility and repaying NOK 31.8 million under the legacy debt structure. Total debt to financial institutions was NOK 25.0 million at the end of Q2 2026, of which NOK 5.7 million was current, compared with NOK 37.7 million and NOK 17.1 million, respectively, at the end of Q2 2025. At 30 June 2026, the new EUR-denominated revolving credit facility remained undrawn, with NOK 27.3 million available. The refinancing materially reduced near-term debt repayment requirements and, together with the undrawn RCF, provides greater flexibility in managing the Company’s liquidity. Net cash flow from operating activities was negative NOK 36.5 million in H1 2026, compared with negative NOK 14.4 million in H1 2025. The H1 2025 figure included a NOK 20 million license payment from Stockholm Exergi received in Q1 2025. Adjusted for this payment, operating cash flow was broadly comparable year-on- year, reflecting the effect of the reduced cost base despite lower commercial activity. Net cash flow from investing activities was negative NOK 1.1 million in H1 2026, compared with positive NOK 0.1 million in H1 2025. Net cash flow from financing activities was positive NOK 8.3 million, driven by the equity raise in January, compared with negative NOK 12.3 million in the corresponding period of 2025. Balance sheet & cash flow
Page 9
9INTERIM REPORT Q2 AND FIRST HALF 2026 Near-term outlook – Two CapsolGo campaigns to narrow gap to operating break-even in H2 Two CapsolGo units will be in operation for the majority of the second half of 2026, providing improved revenue visibility and a meaningful contribution to operating cash flow. Each unit typically generates between NOK 2 million and NOK 3 million in monthly revenue while in operation. The Company has also seen an increase in requests for engineering studies, providing an early indication of improving customer activity following a slow market over the past 12 months. Combined with the reduced cost base, the expected contribution from the demonstration campaigns is anticipated to narrow the gap to operating break-even during the second half of the year. Long-term outlook – Expanding value capture through a capital-efficient commercial model Capsol is developing commercial structures that can enable the Company to capture a larger share of project value and create additional revenue opportunities alongside traditional technology licensing. The US low-carbon power market provides an important opportunity to develop and validate these models across a growing project pipeline. Beyond the near-term contribution from CapsolGo and engineering activities, Capsol is developing commercial structures that can enable the Company to take on broader scope and capture a larger share of project value than through traditional technology licensing alone. This can create different revenue streams across the project lifecycle, including opportunities during project development and following commercial operation, while maintaining the capital-efficient characteristics of Capsol’s business model. Capsol evaluates these opportunities based on established financial KPIs, including project NPV, to ensure that broader participation translates into attractive risk-adjusted value creation. Capsol’s objective is to combine this commercial development with a disciplined cost base and a scalable technology platform to support long-term growth. Financial outlook Operational and financial review
Page 10
Interim consolidated financial statements
Page 11
11 Consolidated statement of profit and loss Consolidated statement of financial position Consolidated statement of cash flow Consolidated statement of changes in equity Note 1 General information Note 2 Basis of preparation Note 3 Going concern Note 4 Significant events and transactions in the period Note 5 Operating segments and revenue Note 6 Net financial items Note 7 Depreciation, amortization and impairment expenses Note 8 Intangible assets and property, plant and equipment Note 9 Share-based payments Note 10 Financial instruments and borrowings Note 11 Liquidity Note 12 Contract balances Note 13 Alternative performance measures Note 14 Related party transactions Note 15 Events after the reporting period Interim consolidated financial statements Capsol interim financial statements H1 and Q2 2026 INTERIM REPORT Q2 AND FIRST HALF 2026
Page 12
12INTERIM REPORT Q2 AND FIRST HALF 2026 Consolidated statement of profit and loss Amounts in NOK 1,000 H1 2026 H1 2025 2025 Revenues 13,416 41,330 70,652 Cost of contract fulfillment 6,337 18,619 31,968 Gross profit 7,080 22,711 38,685 Personnel expenses 29,979 32,472 64,471 Other operating expenses 10,464 14,868 26,237 Operating profit or loss before depreciation & amortization (EBITDA) -33,364 -24,629 -52,024 Depreciation 12,271 10,195 24,078 Operating profit or loss (EBIT) -45,634 -34,823 -76,102 Finance income 4,653 3,452 4,412 Finance costs 5,033 6,832 9,451 Net financial items -380 -3,380 -5,038 Profit (loss) before tax -46,014 -38,203 -81,140 Basic earnings per share -0.61 -0.41 Income tax expense - Profit (loss) for the period -81,140 - - -46,014 -38,203 Q2 2026 Q2 2025 7,558 16,385 2,734 9,662 4,824 6,723 14,592 16,817 5,260 5,618 -15,028 -15,712 6,119 5,460 -21,147 -21,171 2,501 2,097 2,403 3,009 98 -913 -21,049 -22,084 -21,049 -22,084 -0.38 -- -0.28 -0.63 Interim consolidated financial statements
Page 13
13INTERIM REPORT Q2 AND FIRST HALF 2026 Consolidated statement of comprehensive income Amounts in NOK 1,000 H1 2026 H1 2025 2025 Profit (loss) for the period -46,014 -38,203 -81,140 Other comprehensive income: Items that subsequently may be reclassified to profit or loss: Exchange differences on translation of foreign operations 32 195 632 Other comprehensive profit (loss) for the period 32 195 632 Total comprehensive profit (loss) for the period -45,982 -38,009 -80,508 Total comprehensive profit(loss) attributable to: Equity holders of the parent company -45,982 -38,009 -80,508 Q2 2026 Q2 2025 -22,084-21,049 213 213 121 -20,836 -21,963 -20,836 -21,963 121 Interim consolidated financial statements
Page 14
14 Consolidated statement of financial position INTERIM REPORT Q2 AND FIRST HALF 2026 30.06.2026 30.06.2025 2025 ASSETS Non-current assets Intangible assets 13,645 12,558 12,598 Deferred tax assets - - - Property, plant and equipment 52,127 72,336 62,243 Right-of-use assets 5,135 6,185 6,330 Total non-current assets 70,907 91,079 81,170 Current assets Trade receivables 7,599 13,184 10,519 Contract assets - 2,776 - Other receivables 9,566 5,058 8,806 Cash and cash equivalents 20,666 36,682 50,205 Total current assets 37,831 57,701 69,531 TOTAL ASSETS 108,738 148,780 150,701 Amounts in NOK 1 000 30.06.2026 30.06.2025 2025 EQUITY AND LIABILITIES Equity Share capital 37,524 31,449 33,005 Share premium 245,772 186,058 206,537 Other capital reserves 36,543 27,616 33,303 Other equity -253,293 -164,293 -207,312 Total equity 66,546 80,831 65,533 Non-current liabilities Non-current interest-bearing liabilities 19,276 20,617 33,859 Non-current lease liabilities 3,832 4,030 3,507 Total non-current liabilities 23,108 24,646 37,366 Current liabilities Current interest-bearing liabilities 5,720 17,055 23,743 Current lease liabilities 1,465 2,282 2,980 Trade and other payables 4,485 10,774 5,611 Contract liabilities 3,981 5,823 - Income tax payable 1,695 2,080 4,256 Other current liabilities 1,738 5,287 11,212 Total current liabilities 19,083 43,302 47,802 Total liabilities 42,191 67,949 85,168 TOTAL EQUITY AND LIABILITIES 108,738 148,780 150,701 Interim consolidated financial statements Amounts in NOK 1 000
Page 15
15INTERIM REPORT Q2 AND FIRST HALF 2026 Consolidated statement of cash flow Amounts in NOK 1 000 Q2 2026 Q2 2025 H1 2026 H1 2025 2025 Cash flows from operating activities Profit (loss) Before tax -21,049 -22,084 -46,014 -38,203 -81,140 Adjustments to reconcile profit before tax to net cash flows: Net financial items -98 913 380 3,380 5,038 Depreciation, amortization and impairment 6,119 5,460 12,271 10,195 24,078 Share-based payment expense 3,904 1,365 3,904 2,406 7,799 Working capital adjustments: Changes in trade and other receivables -1,306 -2,586 2,161 17,493 19,402 Changes in trade and other payables -1,818 1,881 -3,687 -4,560 -9,764 Changes in other liabilities -4,701 -58 -9,474 -1,609 1,681 Change in contract balances -213 -797 3,981 -3,547 -6,594 Net cash flows from operating activities -19,162 -15,907 -36,479 -14,446 -39,500 Cash flows from investing activities Development expenditures - - -736 - -414 Purchase of property, plant and equipment - - -395 -51 -1,734 Government grants received on investment activities - - - - 2,511 Interest received - 25 21 143 402 Net cash flow from investing activities - 25 -1,110 92 765 Cash flow from financing activities Proceeds from issuance of equity 143 43,091 22,034 Proceeds of interest-bearing liabilities - 30,883 Repayment of interest-bearing liabilities -23,173 -4,792 -31,802 -9,525 -20,607 Payments for the principal portion of the lease liability -736 -546 -1,507 -1,066 -2,759 Payments for the interest portion of the lease liability -89 -131 -228 -267 -576 Interest paid -530 -711 -1,230 -1,403 -2,954 Net cash flows from financing activities -24,386 -6,180 8,325 -12,261 26,021 Net increase/(decrease) in cash and cash equivalents -43,548 -22,062 -29,264 -26,616 -12,714 Cash and cash equivalents beginning of the period 64,556 58,524 50,205 64,444 64,444 Net foreign exchange difference -343 220 -274 -1,146 -1,525 Cash and cash equivalents end of the period 20,666 36,682 20,666 36,682 50,205 Amounts in NOK 1 000 Q2 2026 Q2 2025 H1 2026 H1 2025 2025 --- -- Interim consolidated financial statements
Page 16
16INTERIM REPORT Q2 AND FIRST HALF 2026 Consolidated statement of changes in equity Interim consolidated financial statements Other equity Share capital Share premium Other capital reserves Cumulative translation differences Retained earnings Total equity Equity as at 31 December 2024 31,449 186,058 25,272 - -126,804 115,975 Profit (loss) for the period -38,203 -38,203 Other comprehensive profit (loss) 195 195 Total comprehensive profit (loss) 195 -38,203 -38,009 Share-based payments 2,345 2,345 Other changes to equity 520 520 Equity as at 30 June 2025 31,449 186,058 27,616 195 -165,008 80,831 Equity as at 31 December 2025 33,005 206,537 33,303 634 -207,945 65,533 Profit (loss) for the period -46,014 -46,014 Other comprehensive profit (loss) 32 32 Total comprehensive profit (loss) 32 -46,014 -45,982 Private placement 4,327 40,673 45,000 Transaction cost share issues -2,155 -2,155 Employee share purchase programme – ESPP 99 717 817 Bonus RSU/ LTI RSU share issue 93 -663 -570 Share-based payments 3,904 3,904 Equity as at 30 June 2026 37,524 245,772 36,543 666 -253,959 66,546 <blank> <blank> <blank> <blank> <blank> <blank> <blank>
Page 17
Notes to the interim consolidated financial statements
Page 18
18 Capsol Technologies is a Norwegian provider of carbon capture technology. The group develops and licenses proprietary carbon capture solutions for industrial and power generation applications. The group’s principal activities comprise the development, commercialization and licensing of carbon capture technologies and related engineering, technical and project development services. Capsol Technologies ASA is the parent company of the CapsolGroup. The Company’s registered office is in Oslo, Norway, and its shares are listed on the Oslo Stock Exchange under the ticker CAPSL. Note 2 Basis for preparation Statement of Compliance Capsol Technologies’ condensed consolidated half-year financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting, applying the same accounting principles as in the 2025 Annual Report. They do not include all disclosures required in annual financial statements and should therefore be read in conjunction with the 2025 Annual Report, available at www.capsoltechnologies.com . The half-year financial statements are unaudited, while the 2025 annual figures are derived from the audited financial statements. Judgments and Estimates Preparation of the half-year financial statements requires management to make judgements, estimates and assumptions affecting reported amounts. Actual results may differ from these estimates. The significant judgements and key estimation uncertainties are consistent with those described in the 2025 Annual Report. Where relevant, estimates have been updated based on information available at 30 June 2026, including changes in project status, customer balances, financing arrangements and market conditions. The Board of Directors and management have assessed the Group’s financial position, available liquidity, forecast cash flows, expected commercial activity and financing arrangements for at least twelve months from the reporting date. Based on this assessment, the Board of Directors confirms that the going concern assumption remains appropriate. Further information on the Group’s expected financial development is provided in the Financial outlook section earlier in this report. Note 4 Significant events and transactions in the period During the first half of 2026, the Company completed a private placement with gross proceeds of NOK 45.0 million. Transaction costs directly attributable to the share issue have been recognized in equity. The Group refinanced a large share of its interest-bearing debt during the period and signed a new revolving credit facility with DNB Bank ASA. Following the establishment of the new revolving credit facility, three of the four pre-existing loan facilities were repaid. In total, NOK 16.4 million of debt was repaid in April 2026, leaving the Group with two facilities outstanding and simplifying the capital structure. The revolving credit facility was undrawn at 30 June 2026. During the first half of 2026, the Company issued shares under the Employee Share Purchase Program and in connection with vested Bonus RSUs and LTI RSUs. See Note 9 Share-based payments for further information. There were no other significant events or transactions during the first half of 2026 that require separate disclosure under IAS 34. Note 1 General information Note 3 Going concern INTERIM REPORT Q2 AND FIRST HALF 2026 Notes to the consolidated financial statements Notes to the interim consolidated financial statements
Page 19
19 Capsol Technologies’ activities relate to the development and commercialization of carbon capture technology and associated services. The Group’s operations are managed as one integrated business, and financial information is reviewed by executive management and the Board of Directors on a consolidated basis. Accordingly, the Group has one operating and reportable segment. Revenue recognition principles are unchanged from those applied in the 2025 Annual Report. Revenue in the first half of 2026 was primarily generated from CapsolGo demonstration campaigns and engineering and feasibility studies. Revenue from demonstration campaigns and engineering services is generally recognized over time as the services are delivered. License revenue is recognized when control of the license is transferred, unless the arrangement provides access to intellectual property over time. Note 5 Operating segments and revenue INTERIM REPORT Q2 AND FIRST HALF 2026 Amounts in NOK 1,000 Q2 2026 Q2 2025 H1 2026 H1 2025 Europe 5,183 11,041 40,742 US 2,375 588 2,375 588 Total revenue 7,558 16,385 13,416 41,330 Timing of revenue recognition At point in time 3,032 2,057 3,032 6,010 Over time 4,526 14,328 10,384 35,320 0 0 0 0 0 15,797 Note 6 Net financial items Amounts in NOK 1,000 Q2 2026 H1 2025 Other interest income 2 143 Currency gain 2,499 3,309 Finance income 2,501 3,452 Interest expense on borrowings 274 1,396 Interest expense lease liabilities 104 267 Other interest expense 7 7 Currency loss 2,019 5,162 Finance costs 2,403 6,832 Net financial items 98 (3,380) Q2 2025 H1 2026 25 23 2,072 4,630 2,097 4,653 711 853 131 220 9 2,167 3,951 3,009 5,033 (913) (380) Note 7 Depreciation, amortization and impairment expenses Depreciation, amortization and impairment expenses (NOK 1,000) Depreciation of property, plant and equipment Depreciation of right-of-use assets Amortization and impairment of intangible assets Total depreciation, amortization and impairment expenses Q2 2026 Q2 2025 H1 2026 H1 2025 5,040 4,776 10,116 8,843 764 575 1,520 1,135 316 108 635 216 6,119 5,460 12,271 10,195 - Notes to the interim consolidated financial statements
Page 20
20 Note 8 Intangible assets and Property, plant and equipment INTERIM REPORT Q2 AND FIRST HALF 2026 Patents Digital Platform R&D Technology Total intangible assets Acquisition cost as at 31 December 2024 7,340 1,965 5,196 14,501 Additions Government grants Acquisition cost as at 30 June 2025 7,340 1,965 5,196 14,501 Acquisition cost as at 31 December 2025 7,340 2,379 5,196 14,915 Additions 1,683 1,683 Government grants Acquisition cost as at 30 June 2026 7,340 2,379 6,879 16,598 Accumulated amortization as at 31 December 2024 1,727 - - 1,727 Amortization charge for the period 216 216 Impairment charge for the period Accumulated amortization as at 30 June 2025 1,943 - - 1,943 Accumulated amortization as at 31 December 2025 2,185 132 - 2,318 Amortization charge for the period 229 407 635 Impairment charge for the period Accumulated amortization as at 30 June 2026 2,414 539 2,953 Net book value: At 31 December 2025 5,155 2,247 5,196 12,598 At 30 June 2025 5,397 1,965 5,196 12,558 At 30 June 2026 4,927 1,841 6,879 13,645 Depreciation plan Straight-line Amounts in NOK 1,000 Property, plant and equipment 101,840 -2,460 99,380 101,063 101,063 18,201 8,843 27,044 38,820 10,116 48,936 72,336 62,243 52,127 Economic life (years) 17 3 5 years Straight-line Straight-line - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 The accounting policies, depreciation and amortisation methods and useful lives applied for intangible assets and property, plant and equipment are consistent with those applied in the 2025 Annual Report. Additions to intangible assets in the first half of 2026 mainly relate to capitalised R&D technology for CapsolGT. There were no material additions to property, plant and equipment during the period. The decrease in the carrying amount of property, plant and equipment primarily relates to ordinary depreciation. Management has assessed whether there are indicators of impairment for intangible assets and property, plant and equipment as at 30 June 2026. Based on this assessment, no impairment indicators have been identified and no impairment loss has been recognised in the first half of 2026. - -- - - - - - - --- -- - - - - - - - - - - - - Notes to the interim consolidated financial statements
Page 21
21 The Group operates equity-settled incentive programs comprising Restricted Share Units (RSUs), Performance Share Units (PSUs) and share options. During the first half of 2026, the Company issued 170,612 shares under the Bonus RSU program and 14,665 shares under the LTI RSU programme. The shares were issued at nominal value of NOK 0.50 per share. In addition, 198,988 shares were issued under the Employee Share Purchase Program at a subscription price of NOK 4.10 per share. Note 9 Share based payment Note 10 Financial instruments, borrowings INTERIM REPORT Q2 AND FIRST HALF 2026 The Group’s financial instruments consist mainly of trade receivables, cash and cash equivalents, interest-bearing borrowings, lease liabilities and trade payables. These are measured at amortized cost. The carrying amounts are considered to approximate fair value, mainly due to the short-term nature of the instruments or because they carry floating interest rates. The Group did not hold any financial instruments measured at fair value during the period. Borrowings The Group’s interest-bearing borrowings are provided by DNB Bank ASA and carry floating interest rates based on NIBOR or EURIBOR plus an agreed margin. During the first half of 2026, the Group refinanced a majority of its interest-bearing debt and signed a revolving credit facility with DNB Bank ASA. The facility was undrawn as at 30 June 2026 and is therefore not recognized as interest-bearing borrowings in the statement of financial position. The Group complied with all financial covenants as at 30 June 2026. The share-based payment expense is presented on a year-to-date basis, as the amount recognized in Q2 2026 includes a cumulative catch-up for the first half of the year. A separate Q2 amount would therefore not be representative of the underlying vesting period. Amounts in NOK thousand Share based compensation H1 2026 H1 2025 FY 2025 Share-based compensation expense 4,082 2,345 8031 Social security expense 242 62 Total share-based payment expense 4,324 2,406 7,800 Amounts in NOK thousand Borrowings 30-Jun-26 31-Dec-25 30-Jun-25 Non-current interest-bearing borrowings 19,276 33,859 20,617 Current interest-bearing borrowings 5,720 23,743 17,055 Total interest-bearing borrowings 24,996 57,602 37,672 Notes to the interim consolidated financial statements -231
Page 22
22 The Group manages liquidity risk through cash flow forecasting, cost control and monitoring of available liquidity. On 30 June 2026, available liquidity consisted of cash and cash equivalents and the undrawn revolving credit facility. The credit facility is denominated in EUR and translated to NOK at the closing exchange rate. Contract assets relate to revenue recognized for work performed where the Group’s right to consideration was conditional on factors other than the passage of time at the reporting date. Contract liabilities mainly comprise customer prepayments and amounts invoiced in advance of revenue recognition. Revenue is recognized as the related performance obligations are satisfied. Note 11 Liquidity Note 12 Contract balances INTERIM REPORT Q2 AND FIRST HALF 2026 Liquidity 30-Jun-26 31-Dec-25 30-Jun-25 Cash and cash equivalents 20,666 50,205 36,682 Undrawn revolving credit facility 27,245 Available liquidity 47,911 50,205 36,682 Amounts in NOK 1,000 30-Jun-26 31-Dec-25 30-Jun-25 Contract assets - 2,776.00 Contract liabilities 3,981.00 5,823.00- - - - Notes to the interim consolidated financial statements
Page 23
23INTERIM REPORT Q2 AND FIRST HALF 2026 There were no material related party transactions during the first half of 2026. Following the end of the quarter, Capsol secured a CapsolGo campaign for a UK gas-engine application, marking the company’s first field deployment in this segment and supporting the further development of solutions for US gas-turbine applications. Other than the above, the Board of Directors is not aware of any events after 30 June 2026, or any new information relating to existing matters, that could have a material effect on the consolidated half-year financial statements. Note 14 Transactions with related parties Note 15 Events after the reporting period The Group presents certain alternative performance measures (APMs) as supplementary information to the financial statements prepared in accordance with IFRS. The APMs are used by management to evaluate the Group’s financial performance and liquidity. EBITDA is defined as operating profit or loss before depreciation, amortization and impairment. EBIT is defined as operating profit or loss. Gross profit is defined as revenue less cost of contract fulfilment. Available liquidity is defined as cash and cash equivalents plus undrawn committed credit facilities. Note 13 Alternative performance measures Notes to the interim consolidated financial statements
Page 24
Declaration by the board of directors and CEO
Page 25
25 Declaration by the board of Directors and CEO Declaration by the board of directors and CEO INTERIM REPORT Q2 AND FIRST HALF 2026 Oslo August 25, 2026 The Board of Capsol TechnologiesASA Wendy Lam Chief Executive Officer Monika Inde Zsak Member of the Board Ellen Merete Hanetho Member of the Board Chris Barkey Chair of the Board John Arne Ulvan Member of the Board Wayne Thomson Member of the Board We hereby confirm that, to the best of our knowledge, the accounts for 1 January to 30 June 2026 have been prepared in compliance with IFRS, as adopted by the EU, IAS 34 Interim financial reporting, and requirements in accordance with the Norwegian Accounting Act, and gives a true and fair view of the Company’s assets, liabilities, financial positions, and results for the period. The Board of Directors and the CEO certify that the financial report for the first six months ended 30 June 2026 gives a true and fair view of the Company’s business performance, major related party transactions, and describes the principal risks and uncertainties that the Company faces.The board of directors and the CEO have today considered and approved the consolidated condensed financial statements for the six months ended June 30, 2026, for Capsol Technologies. Oslo, August 25, 2026 The board of Capsol TechnologiesASA