Q2 2026 Arendals Fossekompani ASA Earnings Call Transcript
Key Points
- Group operating profit surged to NOK123 million from NOK32 million year-on-year, with a 14% margin driven by strong performances in hydropower, ENRX, and Tekna.
- Volue delivered 17% recurring revenue growth and a 45% increase in organic bookings, supported by a strong backlog and an active M&A agenda.
- ENRX improved operating margin to 9% from 3% year-on-year, driven by cost reduction initiatives and elimination of operating losses, with order intake up 22%.
- Tekna posted its fourth consecutive quarter of positive adjusted EBITDA, with 18% revenue growth and a record backlog of $28.5 million, underpinning long-term growth.
- Hydropower production more than doubled year-on-year, with operating profit of NOK104 million and an 80% operating margin, benefiting from higher power prices.
- Group revenue declined 2% year-on-year to NOK884 million, primarily due to softer markets for ENRX.
- NSSLGlobal reported a softer quarter with operating profit down to GBP3.3 million from GBP4.6 million, due to delayed project invoicing.
- Volue's cash EBITDA margin of 16% was below expectations, reflecting front-loaded investments in commercial and organizational platforms.
- Consolidated earnings after tax were negative at NOK23 million, impacted by impairments of NOK34 million and a high effective tax rate including resource rent tax.
- ENRX expects heating markets to remain challenging for the next 12 months, with revenue still down year-on-year despite improved profitability.
Good morning, and thanks for joining us for the Q2 update for Arendals Fossekompani. My name is Benjamin Golding, and I'm the CEO of Arendals Fossekompani. Together with me here today is CFO, Lars Peder Fensli.
Arendals Fossekompani is a long-term industrial investment company. We invest in B2B growth companies operating within the energy and/or technology space. We drive sustainable value creation in our portfolio companies through active ownership. Today, Arendals Fossekompani holds 6 main investments. Our companies have presence across the globe.
Over time, AFK has built a diversified portfolio of B2B companies focused on industrial technology and energy. Volue is a software company operating in the intersection of technology and energy. ENRX and Tekna are world leaders in cutting-edge industrial technologies related to advanced materials, additive manufacturing, and induction heating solutions.
NSSLGlobal delivers secure satellite communication services. Hydropower is our oldest business, producing a
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
