Arendals Fossekompani reports mixed Q2 2025 results amid strategic divestments

Arendals Fossekompani ASA reported Q2 2025 revenue of NOK 899 million, down from NOK 1,253 million in Q2 2024, with operating profit (EBIT) decreasing to NOK 32 million from NOK 73 million year-over-year. The reduction was primarily attributed to lower revenue in AFK Property, stemming from the revenue recognition of NOK 245 million related to the Bryggebyen apartment complex in Q2 2024. Ordinary profit after tax, before non-controlling interests, turned positive at NOK 42 million, compared to -NOK 55 million in the prior year period.

Key portfolio highlights include Volue’s strong quarter, marked by 22% year-over-year growth in annual recurring revenue and a cash EBITDA margin of 19%. Volue also strategically divested its Infrastructure business and completed the sale of Scanmatic AS, aligning with its focus on energy and grid software. ENRX’s Heat segment achieved 5% growth, while NSSLGlobal maintained a 20% operating margin and secured £8.4 million in new contracts. Tekna saw a 42% increase in order intake year-over-year and positive operating cash flow.

Arendals Fossekompani's financial position remains solid, with NOK 757 million in available cash and NOK 1,997 million in undrawn credit facilities, totaling NOK 2,754 million in liquidity. The net debt (NIBD) stood at NOK 100 million at the end of the quarter. The company anticipates lower group revenue and operating profit for 2025 compared to 2024, mainly due to reduced hydropower production from AFK Vannkraft and lower operating profit from NSSLGlobal.