Q2 2025 Arendals Fossekompani ASA Earnings Call Transcript
Key Points
- Volue delivered strong performance with 22% ARR growth and a cash EBITDA margin of 19%, positioning itself as a key player in the European energy software market.
- ENRX's heat business experienced a 5% growth with an operating margin increase from 6% to 7%, indicating effective cost management.
- NSSL Global maintained a healthy 20% operating margin and secured contracts worth GBP8.4 million, showcasing its robust market position.
- Tekna reported a 42% year-on-year increase in order intake, reflecting growing demand and potential opportunities from increased defense spending.
- The company maintains a strong financial position with available liquidity of around NOK2.8 billion, providing flexibility for future investments.
- Group revenue declined to NOK0.9 billion from NOK1.25 billion last year, primarily due to lower revenue in AFK property and reduced hydropower production.
- Hydropower production fell by 57% year-on-year, significantly impacting revenue and operating profit from this segment.
- Tekna experienced a 20% year-on-year topline decline due to order timing fluctuations and uncertainty around public funding and tariffs.
- The Alytic investment team was dissolved, indicating a strategic shift away from early-phase investments, which may limit future growth opportunities.
- Forecasts for 2025 suggest lower revenue and operating profit for the group compared to the previous year, driven by expected reductions in hydropower production and NSSL Global's operating profit.
Good morning and welcome to the Q2 update for Arendals Fossekompani. My name is Benjamin Golding, and I'm the CEO of Arendals Fossekompani. And 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 six main investments in addition to a number of smaller assets. Our companies have presence across the globe.
Over time, AFK has built a diversified portfolio of B2B companies focused on industrial technology and energy. Volume and our other smaller investments are pure software companies. NSSL delivers both software, hardware, and data services. ENRX and Tekna are world leading in cutting edge industrial technologies related to advanced materials, additive manufacturing, and induction heating and power transfer.
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