Interim report
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今 Argo 2026 Interim Report April - June 今
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CONTENTS 1 Summary of the Period 3 Financial Summary 3 Significant Events During the Quarter 3 Financial Development 4 2 CEO's Comments 5 Comments from CEO Marcus Selme 5 3 About Argo Defence Group 6 This is Argo 6 Our Business Concept and Vision 7 Business Areas 8 4 Argo as an investment 9 Argo as an investment 9 5 Financial Overview 11 Operational Development 11 Financial Comments 12 Other Information 13 6 Financial Statements 14 Financial Statements 14 9 8 7 Declaration 24 Board of Directors' and CEO's Declaration 24 Accounting Policies 23 Accounting Policies 23 Subsidiary Overview 22 Subsidiary Overview 22 10 Financial Calendar 25 Financial Calendar 25
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3 Argo Defence Group Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Declaration Financial Calendar FINANCIAL SUMMARY » Increased growth – Net sales increased by 459% to SEK 69.9 million (12.5) » Solid order backlog – The order backlog increased by 52% to SEK 69.7 million (45.8) » Positive profitability trend – EBITDA amounted to SEK 6.0 million (4.3) » Total framework agreement value of SEK 867 million, of which SEK 564 million remains under existing framework agreements THE GROUP APRIL – JUNE 2026 » Net sales amounted to SEK 69,890 thousand (12,505) » EBITDA amounted to SEK 6,010 thousand (4,291), corresponding to a margin of 8.6% (34.3%) » EBITA amounted to SEK 5,374 thousand, corresponding to a margin of 7.7% » Operating profit amounted to SEK 360 thousand (2,730) » Profit for the period amounted to SEK -1,125 thousand » Earnings per share amounted to SEK -0.05 » Order intake amounted to SEK 29,488 thousand (37,890) and the order backlog to SEK 69,656 thousand (45,780) THE GROUP JANUARY – JUNE 2026 » Net sales amounted to SEK 115,535 thousand (12,505) » EBITDA amounted to SEK 16,167 thousand (4,291), corresponding to a margin of 14.0% (34.3%) » EBITA amounted to SEK 15,437 thousand, corresponding to a margin of 13.4% » Operating profit amounted to SEK 5,937 thousand (2,730) » Profit for the period amounted to SEK 3,544 thousand » Earnings per share amounted to SEK 0.17 » Order intake amounted to SEK 119,820 thousand (37,890) and the order backlog to SEK 69,656 thousand (45,780) *Argo Defence Group AB (publ) was incorporated on 29 April 2025 and the Group's first acquisition was completed in June 2025. Further companies were acquired in December 2025 and in March 2026. The 2025 comparative figures therefore include those operations only from their respective acquisition dates and cover a smaller group than in 2026. The figures are therefore not fully comparable. The Group's first financial year covered 29 April–31 December 2025. SIGNIFICANT EVENTS The quarter April – June 2026 » First delivery of customised containers to the Swedish Armed Forces under the Group's largest framework agreement completed and approved. Events After the End of the Period » No significant events after the end of the period. KEY FIGURES Group, SEK thousand unless stated Apr-Jun 2026 Apr-Jun 2025* Jan-Jun 2026 Apr-Jun 2025* Apr-Dec 2025* Net sales 69,890 12,505 115,535 12,505 62,970 EBITDA 6,010 4,291 16,167 4,291 5,726 EBITDA margin 8.6% 34.3% 14.0% 34.3% 9.1% EBITA 5,374 3,948 15,437 3,948 1,163 EBITA margin 7.7% 31.6% 13.4% 31.6% 1.8% Operating profit 360 2,730 5,937 2,730 -7,549 Profit after net financial items -174 2,676 4,824 2,676 -7,655 Profit for the period -1,125 2,304 3,544 2,304 -7,347 Earnings per share, SEK -0.05 0.14 0.17 0.14 -0.45 Equity 151,633 71,762 151,633 71,762 127,187 Equity ratio, % 51.1% 67.4% 51.1% 67.4% 71.6% Total assets 296,782 106,455 296,782 106,455 177,730 Order intake 29,488 37,890 119,820 37,890 134,686 Order backlog 69,656 45,780 69,656 45,780 70,050
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4 Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Declaration Financial CalendarArgo Defence Group KEY FIGURES Q2 2026 – SUMMARY Framework value, ongoing* SEKm 867 SEKm 564 Framework value, remaining* SEKm 69.9 Net sales SEKm 69.7 Order backlog % 7.7 EBITA margin *The value is based on all additional options and agreements being fully utilised. 867 SEKm 69.9 SEKm EBITDA margin 8.6 % 80 SEKm 40 SEKm 20 SEKm 60 SEKm 0 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 NET SALES PER QUARTER** 69.9 45.6 32.429.0 47.5 1000 SEKm 500 SEKm 750 SEKm 250 SEKm 0 20232022 2024 2025 Q2 2026 573 862 867 ONGOING FRAMEWORK AGREEMENTS 42 131 **The figures for Q2 2025 through Q4 2025 are pro forma figures. Pro forma figures have been prepared for illustrative purposes and are based on the assumption that the Group had owned the five subsidiaries – Swedish Net Air & Defence AB, Disarmament Solutions AB, Disarmament Solutions Ukraine, Zel-Aaren Innovation AB and LPG Trafikmarkeringar AB – throughout the whole of 2025. Poseidon Diving Group AB is not included in the pro forma figures, as the acquisition was completed only on 2 March 2026. The pro forma information is hypothetical in nature and is intended as a supplement to, but does not replace, the statutory financial reporting.
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5 Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Declaration Financial CalendarArgo Defence Group A QUARTER OF SIGNIFICANT PROJECT DELIVERIES, HIGH ACTIVITY AND LONG-TERM INVESTMENTS Results for the quarter The second quarter of 2026 has been characterised by fifteen parallel project deliveries and a high level of operational activity, above all within the Defence Materiel business area. It is satisfying to see how our organisation handles a broad and complex flow of deliveries – which testifies to the strong capacity within the companies. Net sales for the quarter amounted to SEK 69.9 million, driven above all by increased call-offs under our framework agreements with FMV and the Swedish Armed Forces – a sign that customers are using the agreements actively and that confidence in our delivery capability is high. EBITDA for the quarter amounted to SEK 6.0 million, a result we are not fully satisfied with. The prevailing global situation has led to higher freight prices than estimated and has thereby affected costs in our delivery projects. We manage this on an ongoing basis and see it as part of the operational reality of working in a geopolitically active market. Order intake amounted to SEK 29.5 million during the quarter and the order backlog stood at SEK 69.7 million at the end of the period, consisting predominantly of planned deliveries to the Swedish Armed Forces within Defence Materiel during Q3–Q4 2026. The majority of the deliveries consist of products and systems specially developed for FMV and the Swedish Armed Forces. The total value of the Group's ongoing framework agreements amounts to approximately SEK 867 million, of which a remaining value of approximately SEK 564 million gives us a stable and predictable revenue base extending into the coming years. In parallel with ongoing deliveries, we maintain a high level of activity within defence procurement. Several tenders are under evaluation and we expect decisions during the autumn. By their nature, these procurements are extensive and complex with long lead times – something that is characteristic of the market in which we operate. Long-term investments and increased demand The Defence Materiel business area is now taking its first steps into the international market – driven by demand we see from armed forces in Germany and northern Europe – within the two product segments where we have a competitive offering: customised container solutions and radio link antennas. The expansion is managed within the existing organisation and in cooperation with local partners, which enables resource- efficient internationalisation without us having to expand the organisation. Cooperation agreements have been signed between Swedish Net Air & Defence and a number of foreign suppliers. Within the Counter-Explosive Risk Solutions business area, Poseidon Diving Systems is developing a new product portfolio – diving systems adapted exclusively for military use – an opportunity we identified in connection with the acquisition and which is now taking shape. The work is already attracting concrete interest from several defence customers, both Swedish and international, which confirms the relevance of the offering we are building. Within the same business area we have also broadened the product portfolio within high-technology defence and established a unique position as a link between Swedish and Ukrainian defence technology. New reseller agreements were signed during the quarter, strengthening our ability to reach new markets and customers. The Airfield Operations business area reports an active quarter with maintenance work at major Swedish airports and product deliveries to international customers. Activity continues into Q3, which is the business area's most delivery-intensive period. Overall, Q2 lays an important foundation. Deliveries are running, the organisation is active, and the investments we are making now are shaping the conditions for the Group's development during the remainder of 2026 and into 2027. I would like to extend warm thanks to our employees, who during an intensive quarter have continued to deliver with high quality and commitment, and to our customers and shareholders for the confidence they place in us. Stockholm, August 2026 Marcus Selme, President & CEO ” Q2 2026 has been characterized by fifteen parallel project deliveries and a high level of operational activity.
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6 Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Declaration Financial CalendarArgo Defence Group 6 THIS IS ARGO Argo Defence Group is a growth-oriented defence group operating in military and civil defence with three business areas: Defence Materiel, Counter-Explosive Risk Solutions and Airfield Operations. Through six specialised subsidiaries, the Group delivers products and services within defence materiel, EOD equipment and explosive risk management, advanced breathing and diving systems, and airfield infrastructure, with a strong emphasis on meeting demanding technical and operational requirements. Supported by long-term framework agreements and international partnerships, Argo Defence Group has established long-standing customer relationships and a clear position within the defence and security sector, with the capacity to deliver value both in peacetime and in situations of heightened preparedness. The Group was founded in 2025 and builds on subsidiaries with roots dating back to the 1950s. Today we are based in six locations – with our head office in Stockholm and operations in Gothenburg, Jönköping, Kumla, Fjugesta and Kyiv in Ukraine. OUR CUSTOMERS Below is a selection of the customers we work with. » Swedish Armed Forces » Swedish Defence Materiel Administration, FMV » Swedish Defence Research Agency, FOI » Swedish Fortifications Agency » Swedish Agency for Civil Defence, MCF (formerly MSB) » Ministry of Defence of Ukraine » United Nations Development Programme, UNDP » United Nations Office for Project Services, UNOPS » Swedavia Airports
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7 Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Accounting Policies Declaration Financial CalendarArgo Defence Group BUSINESS CONCEPT Argo Defence Group's business concept is to be a long-term and reliable supplier of qualified solutions to authorities and organisations within military and civil defence, with the aim of strengthening defence capability in Sweden and in other security-critical environments internationally. VISION Our vision is to contribute to a stronger and safer society through sustainable solutions for the defence and security challenges of the future.
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8 Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Declaration Financial CalendarArgo Defence Group BUSINESS AREAS » Equipment and training for land and un- derwater mine clearance » Explosive risk management » Threat & risk assessment » Safety distances and protective measures » Ammunition and weapons disposal » Diving systems for military applications COUNTER-EXPLOSIVE RISK SOLUTIONS » Design and installation of airfield systems at civil and military airports » Repair and maintenance at airfields » Development and international sales of customised products for airfields AIRFIELD OPERATIONS » Development and delivery of defence materiel and systems » Equipment and services to strengthen civil defence DEFENCE MATERIEL
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9 Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Declaration Financial CalendarArgo Defence Group 9 ARGO AS AN INVESTMENT DEFENCE AND SECURITY – A STABLE MARKET WITH LONG-TERM GROWTH Argo Defence Group operates in a market with growing demand, driven by a changed global security situation, increased defence budgets and rising requirements for preparedness and modernisation. This creates a stable and long-term need for the Company's specialised products, solutions and services in a sector that is affected only to a limited extent by economic cycles. SUCCESS IN COMPLEX PROCUREMENTS With long experience of public procurement and a strong ability to identify relevant business opportunities at an early stage, Argo Defence Group works selectively and with discipline – taking part in procurements where it has a competitive offering and strong prospects of winning. This focused approach lets the Company prioritise business with strong potential and thereby lay the foundation for profitable growth. OPERATIONAL PRESENCE IN UKRAINE The Company's operations in Ukraine provide direct access to a region with high security requirements and substantial materiel needs. This proximity provides a deeper understanding of prevailing needs and market conditions, contributing to a clearer picture of demand and enabling shorter decision-making processes, needs- adapted solutions and efficient execution in a complex and operationally demanding environment. STABLE REVENUES THROUGH LONG-TERM FRAMEWORK AGREEMENTS AND CONTRACTS The business is largely based on multi-year framework agreements and long-standing customer relationships, complemented by airport projects and sales of specialised products. The business model generates recurring revenues and stable cash flows. Argo Defence Group has an extensive framework agreement portfolio and strong momentum from recently awarded contracts, providing good revenue visibility for the remainder of 2026 and the years ahead. The focus going forward is on securing further major framework agreements on favourable commercial terms. ESTABLISHED OPERATIONS WITH LONG EXPERIENCE The Group is built on operations with roots dating back to 1958. Although Argo Defence Group was formed as a group in 2025, it consists of six established subsidiaries with extensive industry experience in the defence and security sector, providing a stable operational foundation, proven business models and deep industry expertise. STRATEGY FOR GROWTH AND PRODUCT EXPANSION Argo Defence Group combines organic growth with selective, value-creating acquisitions to strengthen its market position. Organic growth is driven by increased volumes under existing framework agreements, new contracts and a sharper sales focus, while acquisitions broaden the Group's offering within the defence and security field. At the same time, an important part of Argo Defence Group's strategy going forward is to broaden the portfolio of proprietary and internally developed products. By combining technical expertise, experience and targeted acquisitions, both recurring business and Argo Defence Group's product portfolio are strengthened over time.
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10 Argo Defence Group This is Argo CEO Comments Financial Information TO CONTRIBUTE TO A SAFER SOCIETY AND A MORE STABLE FUTURE OUR MISSION IS CLEAR –
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11 Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Declaration Financial CalendarArgo Defence Group OPERATIONAL DEVELOPMENT The second quarter of 2026 was characterised by continued high delivery activity within Defence Materiel, the seasonal start-up of project operations within Airfield Operations, and the first full quarter with Poseidon Diving Group as part of the Group. The Group's net sales for the quarter amounted to SEK 69.9 million with EBITDA of SEK 6.0 million. The Group operates within three business areas: Defence Materiel, Counter-Explosive Risk Solutions and Airfield Operations. The development of each business area is commented on below. DEFENCE MATERIEL Swedish Net Air & Defence Swedish Net Air & Defence again accounted for the largest share of the Group's revenue this quarter, with net sales of SEK 44.9 million and EBITDA of SEK 5.6 million, corresponding to an EBITDA margin of 12.5%. Rising freight prices have led to an updated cost assessment in a larger project, which has affected the margin for the period. The underlying profitability of the project portfolio is essentially unchanged. Deliveries under the framework agreements with FMV otherwise continued according to plan. Ongoing projects include specially developed solutions for the Swedish Armed Forces such as transport and storage containers, technical spaces and technical cabinets, radio link antennas and transition coupling kits, as well as standard products within, for example, medical devices and training equipment. AIRFIELD OPERATIONS Zel-Aaren Innovation & LPG Trafikmarkeringar The season within Airfield Operations began during the quarter in line with the normal pattern. LPG Trafikmarkeringar reported net sales of SEK 2.7 million with EBITDA of SEK 0.3 million – a clear recovery from the seasonally weak first quarter. Zel-Aaren Innovation reported net sales of SEK 3.7 million and EBITDA of SEK 0.4 million as planned projects were started up. COUNTER-EXPLOSIVE RISK SOLUTIONS Disarmament Solutions AB, Disarmament Solutions Ukraine & Poseidon Diving Group Disarmament Solutions AB increased net sales to SEK 7.1 million during the quarter (SEK 1.9 million in the first quarter), driven mainly by equipment deliveries to defence customers in Sweden and internationally, including a larger export order. EBITDA amounted to SEK -0.6 million. The quarter's deliveries consisted largely of the resale of purchased detection and clearance equipment with a lower gross margin, while the company carries the costs of an organisation dimensioned for continued growth. Disarmament Solutions Ukraine developed in line with the established structure, with a permanent management function in Kyiv, and reported net sales of SEK 4.7 million for the half-year with a positive EBITDA of SEK 0.4 million. The quarter was the first full quarter with Poseidon Diving Group in the Group. Net sales amounted to SEK 9.6 million with EBITDA of SEK -0.3 million – a clear improvement compared with the consolidation period in March. During the period, considerable focus has been placed on developing a product portfolio of diving systems adapted solely for military applications. The integration work is proceeding according to plan and the acquisition strengthens the Group's overall offering within underwater environments and clearance operations. Financial Overview
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12 Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Accounting Policies Declaration Financial CalendarArgo Defence Group Results Net sales amounted to SEK 69,890 thousand for the period April–June 2026 (SEK 45,645 thousand in the first quarter). EBITDA amounted to SEK 6,010 thousand (8.6%) and EBITA to SEK 5,374 thousand (7.7%). Operating profit amounted to SEK 360 thousand. Profitability for the quarter was adversely affected by the updated cost assessment in a larger project described under Operational Development, with a negative earnings impact of approximately SEK 3.0 million, and by the fact that the quarter includes a full quarter of amortisation of acquisition-related fair value adjustments from the Poseidon acquisition. For the half-year January–June 2026, net sales amounted to SEK 115,535 thousand with EBITDA of SEK 16,167 thousand (14.0%) and an operating profit of SEK 5,937 thousand. Interest expenses amounted to SEK 539 thousand during the quarter (SEK 586 thousand in the first quarter). Profit after net financial items amounted to SEK -174 thousand and profit for the period to SEK -1,125 thousand, after a tax expense of SEK -951 thousand attributable to the earnings accrued during the quarter in the operating subsidiaries. Earnings per share amounted to SEK -0.05. Cash flow Cash flow from operating activities before changes in working capital amounted to SEK 4,935 thousand. Changes in working capital amounted to a net of SEK -11,592 thousand. The largest negative item consisted of increased trade receivables and accrued income as a result of high invoicing and delivery activity during the latter part of the quarter, attributable to deliveries under existing framework agreements, the export order within Counter-Explosive Risk Solutions and Poseidon's first full quarter in the Group. This was partly offset by reduced inventories and increased trade payables and other current liabilities; the latter change includes a reduction in the utilised overdraft facility of SEK -1,843 thousand. Cash flow from operating activities thus amounted to SEK -6,657 thousand. Cash flow from investing activities amounted to SEK -1,778 thousand and related mainly to investments in property, plant and equipment. Financing activities contributed SEK 8,003 thousand through a new bank loan of SEK 10,000 thousand, raised as a general liquidity reinforcement, less loan repayments of SEK 1,997 thousand. Cash flow for the period amounted to SEK -432 thousand and cash and cash equivalents at the end of the period to SEK 9,828 thousand. Together with an unutilised overdraft facility of approximately SEK 14,751 thousand, the Group's total available liquidity at the end of the period amounted to approximately SEK 24,579 thousand, which is considered sufficient to finance planned commitments during the 2026 financial year. Financial position At the end of the period, equity amounted to SEK 151,633 thousand, corresponding to an equity ratio of 51.1% (57.2% as at 31 March 2026). Total assets amounted to SEK 296,782 thousand. Goodwill amounted to SEK 74,854 thousand. Other intangible assets amounted to SEK 20,029 thousand. Interest-bearing liabilities to credit institutions amounted to a total of SEK 31,492 thousand, comprising non-current loans of SEK 23,266 thousand and current loans of SEK 8,226 thousand. In addition, the Group has access to overdraft facilities totalling SEK 37,500 thousand, of which SEK 22,749 thousand was utilised at the end of the period and is classified within other current liabilities. Including the utilised overdraft facility, the Group's gross interest-bearing debt amounted to SEK 54,241 thousand. FINANCIAL COMMENTS Financial Overview
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13 Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Accounting Policies Declaration Financial CalendarArgo Defence Group Largest shareholders as at 30 June 2026 Shareholder Number of shares Capital % Swedish Net Holding AB 10,200,000 48.62% Nordnet Pensionsförsäkring AB 2,672,753 12.74% Exelity AB 1,249,024 5.95% RICON AB 800,000 3.81% OneFive AB 720,000 3.43% Total five largest shareholders 15,641,777 74.56% Other shareholders 5,337,223 25.44% Total 20,979,000 100.00% Holdings are based on the most recent fully available share register as at 30 June 2026. The capital share is recalculated on the total number of shares as at 30 June 2026 (20,979,000), including the effect of the over-allotment and non-cash issues during Q1 2026. Incentive Programme 2025/2028 There are 100,000 warrants within the 2025/2028 incentive programme for the Company's Board of Directors. Each warrant entitles the holder to subscribe for one (1) new share in Argo Defence Group AB at a subscription price of SEK 22.1 per share during the period 15 October – 31 December 2028. Upon full exercise, the Company will receive approximately SEK 2.21 million. Shareholder Warrants Lars Granbom 50,000 Anna Höjer 25,000 Magnus Ericsson 25,000 Total 100,000 The Share Since 16 December 2025, Argo Defence Group has been listed on NGM Growth Market, a marketplace operated by Nordic Growth Market, under the ticker ARGO with ISIN code SE0026820540. Number of Shares and Share Capital As at 30 June 2026, the Company's share capital amounted to SEK 727,004.37, divided among 20,979,000 shares. The quota value of the shares amounts to approximately SEK 0.03465 per share. Earnings per share Earnings per share for the period January–June 2026 amounted to SEK 0.17, calculated as profit for the period (SEK 3,544 thousand) divided by the weighted average number of shares outstanding during the period (20,683,096 shares). Development of share capital during the first half of 2026 Event Date Shares added Total number of shares Share capital (SEK) Opening balance 1 January 2026 20,010,486 693,441.57 Over-allotment issue 2026-01-15 98,963 20,109,449 696,871.03 Non-cash issue 2026-03-02 869,551 20,979,000 727,004.37 Closing balance 30 June 2026 20,979,000 727,004.37 Group Structure As at 30 June 2026, the Group consists of the Parent Company Argo Defence Group AB and six subsidiaries: Swedish Net Air & Defence AB (100%), Disarmament Solutions AB (100%), Disarmament Solutions Ukraine (100%), Zel-Aaren Innovation AB (100%), LPG Trafikmarkeringar AB (100%) and Poseidon Diving Group AB (100%). Risk Factors The risk factors set out in Argo Defence Group AB's Information Memorandum and in the Year-End Report 2025 are considered to remain relevant as at 30 June 2026. As a result of the acquisition of Poseidon Diving Group, the Group's risk profile has been extended to include risks related to the integration of the acquired company. Employees As at 30 June 2026, the Group had a total of 36 employees. Financial Overview OTHER INFORMATION
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14 Argo Defence Group Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Declaration Financial Calendar SEK thousand 2026-04-01 - 2026-06-30 2025-04-29 - 2025-06-30 2026-01-01 - 2026-06-30 2025-04-29 - 2025-06-30 2025-04-29 - 2025-12-31 Operating revenue Net sales 69,890 12,505 115,535 12,505 62,970 Other operating income 425 535 989 535 4,243 Total operating revenue 70,315 13,040 116,524 13,040 67,213 Operating expenses Direct costs -48,882 -8,130 -75,190 -8,130 -50,892 Other external expenses -5,733 322 -7,419 322 -3,347 Personnel expenses -9,574 -941 -17,321 -941 -7,249 Depreciation and amortisation of property, plant and equipment and intangible assets -5,650 -1,561 -10,230 -1,561 -13,275 Other operating expenses -116 0 -427 0 1 Total operating expenses -69,955 -10,310 -110,587 -10,310 -74,762 Operating profit 360 2,730 5,937 2,730 -7,549 Net financial items Interest income and similar income items 5 -142 12 -142 509 Interest expenses and similar expense items -539 88 -1,125 88 -615 Total net financial items -534 -54 -1,113 -54 -106 Profit before tax -174 2,676 4,824 2,676 -7,655 Current/deferred tax -951 -372 -1,280 -372 308 PROFIT FOR THE PERIOD -1,125 2,304 3,544 2,304 -7,347 Earnings per share before and after dilution, SEK -0.05 0.14 0.17 0.14 -0.45 Weighted average number of shares outstanding 20,979,000 15,892,839 20,683,096 15,892,839 16,226,252 Consolidated income statement Financial Statements
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15 Argo Defence Group Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Declaration Financial Calendar Consolidated balance sheet SEK thousand As at 30 June 2026 As at 30 June 2025 As at 31 Decem- ber 2025 Non-current assets Intangible assets Goodwill 74,854 71,833 75,698 Other intangible assets 20,029 4,833 637 Total intangible assets 94,883 76,666 76,335 Property, plant and equipment Buildings and land 2,987 0 2,725 Equipment, tools, machinery and installations 4,467 640 2,499 Total property, plant and equipment 7,454 640 5,224 Financial non-current assets Deferred tax assets 1,906 0 1,112 Other non-current receivables 18,128 36 0 Total financial non-current assets 20,034 36 1,112 Total non-current assets 122,371 77,342 82,671 Current assets Inventories Inventories 24,700 1,567 8,292 Total inventories 24,700 1,567 8,292 Current receivables Trade receivables 38,237 6,800 13,956 Current tax assets 757 0 334 Other receivables 2,322 2,384 2,769 Accrued but not invoiced revenue 28,619 0 4,664 Prepaid expenses and accrued income 69,948 11,361 28,758 Total current receivables 139,883 20,545 50,481 Cash and bank balances 9,828 7,001 36,286 Total current assets 174,411 29,113 95,059 TOTAL ASSETS 296,782 106,455 177,730 Financial Statements SEK thousand As at 30 June 2026 As at 30 June 2025 As at 31 Decem- ber 2025 EQUITY Share capital 727 551 693 Other equity, including profit for the period 150,906 71,211 126,494 Total equity 151,633 71,762 127,187 Provisions Deferred tax liability on fair value adjustments 3,082 0 0 Total provisions 3,082 0 0 Non-current liabilities Liabilities to credit institutions 23,266 6,000 20,152 Total non-current liabilities 23,266 6,000 20,152 Current liabilities Liabilities to credit institutions 8,226 0 3,527 Trade payables 32,931 10,241 3,725 Current tax liabilities 3,161 576 1,326 Other current liabilities 31,307 16,336 5,170 Accrued expenses and deferred income 43,176 1,540 16,643 Total current liabilities 118,801 28,693 30,391 TOTAL EQUITY AND LIABILITIES 296,782 106,455 177,730
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16 Argo Defence Group Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Declaration Financial Calendar Consolidated cash flow statement SEK thousand 2026-04-01 - 2026-06-30 2025-04-29 - 2025-06-30 2026-01-01 - 2026-06-30 2025-04-29 - 2025-06-30 2025-04-29 - 2025-12-31 Operating activities Operating profit 360 2,731 5,937 2,731 -7,549 Adjustments for depreciation and amortisation 5,650 1,561 10,230 1,561 13,275 Adjustments for non-cash items, etc. -416 0 -896 0 312 Interest received, etc. 4 0 12 0 509 Interest paid -539 -54 -1,125 -54 -303 Income tax paid -124 0 -326 0 -165 Cash flow from operating activities before changes in working capital 4,935 4,238 13,832 4,238 6,079 Cash flow from changes in working capital Change in inventories 3,363 -1,567 -981 -1,567 -8,292 Change in trade receivables -30,395 -6,800 -19,295 -6,800 -13,956 Change in current receivables -6,176 -13,746 -61,118 -13,746 -36,191 Change in trade payables 10,564 10,241 22,692 10,241 3,725 Change in current liabilities 11,052 18,452 43,528 18,452 23,140 Acquired working capital (reclassified to investing activities) 0 -5,021 0 -5,021 13,025 Cash flow from operating activities -6,657 5,797 -1,342 5,797 -12,470 Investing activities Investments in and disposals of property, plant and equipment -1,589 -365 -1,824 -365 -365 Acquisition of subsidiaries -189 -2,231 -29,493 -2,231 -25,272 Cash flow from investing activities -1,778 -2,596 -31,317 -2,596 -25,637 Financing activities New share issue 0 3,300 1,682 3,300 58,250 Issue costs 0 0 0 0 -7,648 Warrants 0 0 0 0 112 Change in interest-bearing liabilities 8,003 500 4,584 500 23,679 Cash flow from financing activities 8,003 3,800 6,266 3,800 74,393 Cash flow for the period -432 7,001 -26,393 7,001 36,286 Cash and cash equivalents at the beginning of the period 10,325 0 36,286 0 0 Exchange rate differences in cash and cash equivalents -65 -65 Cash and cash equivalents at the end of the period 9,828 7,001 9,828 7,001 36,286 Financial Statements
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17 Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Accounting Policies Declaration Financial CalendarArgo Defence Group Changes in Equity for the Group SEK thousand Share capital Other contributed capital Other equity Profit for the period Total Opening balance 1 January 2026 693 133,694 146 -7,347 127,187 Transfer of previous year's result -7,347 7,347 0 Non-cash issue/new share issue 33 21,649 21,682 Group adjustments -546 -546 Translation differences -234 -234 Profit for the period 3,544 3,544 CLOSING BALANCE 30 JUNE 2026 727 155,343 -7,981 3,544 151,633 SEK thousand Share capital Other contributed capital Other equity Profit for the period Total Opening balance 29 April 2025 0 0 0 0 0 New share issue 643 141,606 142,250 Warrants 112 112 Issue costs -8,024 -8,024 Formation of the company 50 50 Group adjustments 146 146 Profit for the period -7,347 -7,347 CLOSING BALANCE 31 DECEMBER 2025 693 133,694 146 -7,347 127,187 Financial Statements Changes in equity for the period 1 January – 30 June 2026 Changes in equity for the period 29 April – 31 December 2025 Changes in Equity for the Group
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18 Argo Defence Group Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Declaration Financial Calendar Parent Company income statement SEK thousand 2026-04-01 - 2026-06-30 2025-04-29 - 2025-06-30 2026-01-01 - 2026-06-30 2025-04-29 - 2025-06-30 2025-04-29 - 2025-12-31 Operating revenue Net sales 2,303 0 4,792 0 176 Total operating revenue 2,303 0 4,792 0 176 Operating expenses Cost of goods sold 0 0 0 0 -111 Other external expenses -1,748 -81 -3,191 -81 -1,648 Personnel expenses -686 -131 -1,373 -131 -929 Depreciation of property, plant and equipment -19 -6 -37 -6 -43 Other operating expenses 0 0 0 0 -6 Total operating expenses -2,453 -218 -4,601 -218 -2,737 Operating profit -150 -218 191 -218 -2,561 Net financial items Interest income and similar income items 67 0 82 0 17 Interest expenses and similar expense items -305 0 -367 0 -314 Total net financial items -238 0 -285 0 -297 Profit before tax -388 -218 -94 -218 -2,858 PROFIT FOR THE PERIOD -388 -218 -94 -218 -2,858 Financial Statements
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19 Argo Defence Group Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Declaration Financial Calendar Parent Company balance sheet SEK thousand As at 30 June 2026 As at 30 June 2025 As at 31 Decem- ber 2025 Non-current assets Property, plant and equipment Equipment, tools, machinery and installations 286 359 323 Total property, plant and equipment 286 359 323 Financial non-current assets Participations in Group companies 173,047 88,705 116,549 Total financial non-current assets 173,047 88,705 116,549 Total non-current assets 173,333 89,064 116,872 Current assets Current receivables Trade receivables 1,145 0 0 Current tax assets 87 0 46 Other receivables 6,154 0 279 Prepaid expenses and accrued income 272 25 121 Total current receivables 7,658 25 446 Cash and bank balances 491 608 21,203 Total current assets 8,149 633 21,649 TOTAL ASSETS 181,482 89,697 138,521 Financial Statements SEK THOUSAND As at 30 June 2026 As at 30 June 2025 As at 31 Decem- ber 2025 EQUITY AND LIABILITIES Equity Restricted equity Share capital 727 551 693 Total restricted equity 727 551 693 Unrestricted equity Share premium reserve 155,343 71,749 133,694 Other equity, including profit for the year -2,952 -218 -2,858 Total unrestricted equity 152,391 71,531 130,836 Total equity 153,118 72,082 131,529 Non-current liabilities Liabilities to credit institutions 5,833 0 0 Total non-current liabilities 5,833 0 0 Current liabilities Liabilities to credit institutions 3,333 0 0 Trade payables 276 104 483 Liabilities to Group companies 18,410 13,205 5,873 Other liabilities 118 4,306 95 Accrued expenses and deferred income 394 0 541 Total current liabilities 22,531 17,615 6,992 TOTAL EQUITY AND LIABILITIES 181,482 89,697 138,521
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20 Argo Defence Group Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Declaration Financial Calendar SEK thousand 2026-04-01 - 2026-06-30 2025-04-29 - 2025-06-30 2026-01-01 - 2026-06-30 2025-04-29 - 2025-06-30 2025-04-29 - 2025-12-31 Operating activities Operating profit -149 -218 191 -218 -2,561 Adjustments for non-cash items, etc. 0 0 0 0 310 Adjustments for depreciation and amortisation 18 6 37 6 43 Interest received, etc. 2 0 2 0 17 Interest paid -77 0 -139 0 -2 Income tax paid -41 0 -42 0 -46 Cash flow from operating activities before changes in working capital -247 -212 49 -212 -2,239 Cash flow from changes in working capital Change in trade receivables -109 0 -1,146 0 - Change in current receivables -2,792 -25 -5,945 -25 -400 Change in trade payables -3,270 104 -57 104 483 Change in liabilities to Group companies -1,103 0 12,159 0 4,632 Change in current liabilities 238 56 -163 56 186 Cash flow from operating activities -7,283 -77 4,897 -77 2,662 Investing activities Investments in and disposals of property, plant and equipment 0 -365 0 -365 -365 Acquisition of subsidiaries -149 -3,250 -24,842 -3,250 -30,445 Shareholder contributions -1,453 0 -11,616 0 -1,363 Cash flow from investing activities -1,602 -3,615 -36,458 -3,615 -32,173 Financing activities New share issue 0 3,300 1,682 3,300 58,250 Issue costs 0 0 0 0 -7,648 Warrants 0 0 0 0 112 Change in interest-bearing liabilities 9,167 1,000 9,167 1,000 0 Cash flow from financing activities 9,167 4,300 10,849 4,300 50,714 Cash flow for the period 282 608 -20,712 608 21,203 Cash and cash equivalents at the beginning of the period 209 0 21,203 0 0 CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 491 608 491 608 21,203 Parent Company cash flow statement Financial Statements
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21 Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Accounting Policies Declaration Financial CalendarArgo Defence Group Changes in Equity for the Parent Company SEK thousand Share capital Share premium re- serve Retained earnings Profit for the period Total Opening balance 1 January 2026 693 133,694 0 -2,858 131,529 Transfer of previous year's result -2,858 2,858 0 Non-cash issue 30 19,970 20,000 Over-allotment issue 3 1,679 1,682 Profit for the period -94 -94 CLOSING BALANCE 30 JUNE 2026 727 155,343 -2,858 -94 153,118 SEK thousand Share capital Share premium reserve Profit for the period Total Opening balance 29 April 2025 0 0 0 0 New share issue 643 141,606 142,249 Warrants 112 112 Issue costs -8,024 -8,024 Formation of the company 50 50 Profit for the period -2,858 -2,858 CLOSING BALANCE 31 DECEMBER 2025 693 133,694 -2,858 131,529 Financial Statements Changes in equity for the period 29 April – 31 December 2025 Changes in equity for the period 1 January – 30 June 2026 Changes in Equity for the Parent Company
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22 Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Accounting Policies Declaration Financial CalendarArgo Defence Group Financial Statements Subsidiary Business area Geography Offering Swedish Net Air & Defence AB Defence Materiel Sweden Defence materiel and equipment; deliveries under framework agreements/public procurements. Disarmament Solutions AB Counter-Explosive Risk Solutions Sweden/International Explosive risk management, training, and project deliveries in complex environments. Disarmament Solutions Ukraine Counter-Explosive Risk Solutions Ukraine Operational activities and project-related services related to risk reduction. Zel-Aaren Innovation AB Airfield Operations Sweden/International Technical solutions and equipment for airfield and infrastructure operations. LPG Trafikmarkeringar AB Airfield Operations Sweden/Nordic Service, repair, and maintenance work on airfields. Poseidon Diving Group AB Counter-Explosive Risk Solutions Sweden/International Development and manufacturing of advanced diving and breathing equipment for military units and professional users. SUBSIDIARY OVERVIEW
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23 Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Accounting Policies Declaration Financial CalendarArgo Defence Group The interim report has been prepared in accordance with the requirements of the Swedish Annual Accounts Act and the rules and regulations of NGM Growth Market. Argo Defence Group AB applies the Swedish Annual Accounts Act and the Swedish Accounting Standards Board's supplementary accounting framework BFNAR 2012:1 Annual Report and Consolidated Financial Statements (K3). Comparative figures for the full year 2025 relating to EBITA and earnings per share have been restated; see the respective definition under Key figures and definitions. Key figures and definitions Net sales Invoiced revenues for the period excluding value added tax, including project revenues and deliveries under framework agreements. EBITDA Operating profit before depreciation and amortisation of property, plant and equipment and intangible non-current assets. EBITDA margin EBITDA as a percentage of net sales. EBITA Calculated as operating profit plus amortisation of goodwill and fair value adjustments from acquisitions. EBITA shows the Group's underlying operational profitability before structural acquisition-related amortisation and is a relevant measure for acquisition- driven groups. The comparative figure for the full year 2025 has been restated to SEK 1,163 thousand (previously 5,581). The restatement relates to a one-off impairment of internally developed intangible assets that was previously added back in EBITA. EBITA margin EBITA as a percentage of net sales. Operating profit Profit after depreciation and amortisation but before net financial items and tax. Profit after net financial items Profit for the period before tax, after interest income and interest expenses have been taken into account. Earnings per share Profit for the period attributable to the parent company's shareholders divided by the weighted average number of shares outstanding during the period. The comparative figure for the full year 2025 has been restated to SEK -0.45 (previously -0.37), as earnings per share are now calculated on the weighted average number of shares outstanding during the period. Order intake The value of orders received during the period, including call-offs from framework agreements. Order backlog The value of orders not yet delivered or recognised as revenue at the end of the period. Equity ratio Equity, including adjusted portion of untaxed reserves, as a percentage of total assets. Total assets The sum of the Group's assets at the end of the period. Cash and cash equivalents Cash and bank balances at the end of the period, excluding utilised overdraft facility (reported as current liabilities). Accounting Policies ACCOUNTING POLICIES
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24 Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Accounting Policies Declaration Financial CalendarArgo Defence Group BOARD OF DIRECTORS' AND CEO'S DECLARATION Board of Directors' and CEO's Declaration The Board of Directors and the CEO certify that this interim report provides a true and fair overview of the Parent Company's and the Group's operations, financial position and results. This interim report has been subject to a limited review by the Company's auditor. Anna Höjer Board Member Magnus Ericsson Board Member Marcus Selme CEO & Board Member Lars Granbom Chairman of the Board Mariem Butler Board Member
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Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Accounting Policies Declaration Financial CalendarArgo Defence Group 25 FINANCIAL CALENDAR Report Date Interim Report Q3 2026 2026-11-12 Year-End Report 2026 2027-02-18 Argo Defence Group prepares and publishes financial reports on a quarterly basis. The Company's financial reports are made available through the MFN news service and on the Company's website, www.argodefence.se. Upcoming reports are scheduled to be published on the following dates: For further information, please contact: Marcus Selme, CEO, Argo Defence Group E-mail: ir@argodefence.se This information is information that Argo Defence Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at the time stated by Argo Defence Group AB (publ)'s news distributor MFN. This report is in all respects a translation of the Swedish original interim report. In the event of any discrepancies between this translation and the Swedish original, the latter shall prevail. Financial Calendar
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26 Summary CEO Comments About Argo Defence Group Argo as an investment Financial Overview Financial Statements Declaration Financial CalendarArgo Defence Group ARGODEFENCE.SE Argo Defence Group AB (publ) I Company registration no.: 559529-0734 I Munkbrogatan 2, 111 27 Stockholm, Sweden I ir@argodefence.se I www.argodefence.se INNOVATION & SECURITY FOR A STRONGER DEFENCE