AF Gruppen (AFG) recorded first quarter revenues of NOK 7,129 million. Profit
before tax was NOK 214 million for the quarter, an improvement from the
corresponding quarter in 2024. The Group has a strong order backlog, with an
increase of almost NOK 4 billion since the previous quarter. 

First quarter revenues amounted to NOK 7,129 million (7,187 million). Profit
before tax amounted to NOK 214 million (186 million) for the first quarter. This
represents a profit margin of 3.0 per cent (2.6 per cent). AF Gruppen had an
order backlog of NOK 44,232 million (40,275 million) at the end of the quarter. 


"AF Gruppen has improved its profit compared with last year, has a strong order
backlog and a good cash flow in the quarter. We have improved profitability in
several business areas, although the profit was weakened by approx. NOK 100
million in accrued shutdown and termination costs in the Civil Engineering
business area," says Amund Tøftum, CEO of AF Gruppen. 

"In February, the Swedish Transport Administration terminated its contract with
AF Anläggning AB for the E4 Förbifart Stockholm project. We strongly disagree
with the claims made by the Swedish Transport Administration and are disputing
the termination. AF will claim compensation for any loss we suffer. AF
Anläggning AB is expected to be weakly positioned to receive new assignments in
Sweden while the dispute is ongoing," says Tøftum. 

AF Gruppen is in a strong financial position. Cash flow from operating
activities was NOK 330 million (128 million) for the first quarter of 2025. As
at 31 March 2025, AF Gruppen had net interest-bearing receivables of NOK 290
million (-974 million). Earnings per share for the quarter were NOK 1.27 (1.30).


AF imposes the same strict safety requirements on all its partners and suppliers
as it does on its own employees. Everyone should arrive home safely from our
projects, and figures from subcontractors are included in the injury statistics.
The LTI rate for the first quarter was 0.9 (0.8). The company takes a targeted
and systematic approach to preventing work-related absences, and the absence due
to illness rate for the first quarter was 4.8 per cent (4.5 per cent). 

The company recently presented its corporate strategy for the period 2025-2028. 

"Together, we will continue to clear up the past, and build for the future. In
the period up to 2028, we will work safely and profitably, while halving our
climate and environmental footprint," says Tøftum.  

Selected highlights from the quarter: 

- Civil Engineering had a high level of activity in the first quarter with
revenue growth of 16 per cent compared with the same quarter last year but
delivered a result below expectations for the quarter. The result was affected
by approx. NOK 100 million in shutdown and termination costs due to the Swedish
Transport Administration's termination of the contract for the E4 Förbifart
Stockholm project. AF has disputed the termination. The remaining project
portfolio, which consists of several major production projects, maintains high
activity and strong operations during the quarter. Målselv Maskin & Transport
reported very good profitability in the first quarter. Stenseth and RS also had
good results in the quarter. Eiqon and VSP experienced weak results in the first
quarter of the year. 

- Construction had a slight reduction in activity, but delivered greater
profitability compared with the same quarter last year. AF Byggfornyelse, AF
Bygg Østfold, Strøm Gundersen Vestfold, and ÅBF delivered strong results in the
first quarter. Haga & Berg and LAB Entreprenør delivered results that were
somewhat below expectations. Strøm Gundersen and HTB delivered results below
expectations. AF Bygg Oslo, AF Håndverk and FAS had weak results during this
quarter.

- Betonmast delivered a significant improvement in profitability in the first
quarter, with a stable level of activity compared with the corresponding quarter
last year. The Betonmast Oslo, Buskerud-Vestfold, Røsand, Innlandet and Østfold
units delivered good results for the quarter. Betonmast Trøndelag and Asker og
Bærum delivered slightly below expectations, while Betonmast Romerike and
Boligbygg had weak results in the quarter.

- Property is experiencing a demanding real estate market with high interest
rates and uncertain market sentiment. This contributed to continued low sales in
the first quarter. Sales contracts for 25 (19) homes were signed in the quarter,
of which AF's share is 11 (8). One residential property project was in
production at the end of the quarter: Rolvsrud Arena in Lørenskog. The project
has 95 residential units in production. Sales contracts have been signed for 32
of them. This resulted in a sales ratio for commenced projects of 34 per cent.
 
- Energy & Environment reported revenue growth of 8 per cent in the first
quarter compared with the same quarter last year, and an operating margin of 5.0
per cent. AF Decom maintained its revenue in the first quarter and delivered a
result slightly below expectations. The Environmental Centres contributed with
an very good result in the quarter. AF Energi significantly increased its level
of activity compared to the same quarter last year. Profitability is somewhat
below expectations in the first quarter. 

- AF's Swedish activities within civil engineering, construction, property and
demolition are all gathered under the business area Sweden. Sweden had a 29 per
cent decrease in revenue compared with the same quarter last year, and a
significant improvement in profitability. Kanonaden and AF Prefab in Mälardalen
reported very good results in the quarter. HMB delivered slightly below
expectations, while AF Härnösand Byggreturer, AF Bygg Syd, AF Bygg Öst, and AF
Bygg Väst had weak results in the first quarter. 

- Offshore had less activity than in the same quarter last year. Aeron had
substantial revenue growth compared with the same quarter last year and
delivered a good result for the quarter. AF Offshore Decom saw a lower level of
activity in the first quarter compared with the same quarter last year and
delivered a weak result for the quarter. 

For further information:
Amund Tøftum, CEO, mobile +47 920 26 712
Anny Øen, CFO, mobile +47 982 23 116
Knut Ekern, Communications Director, mobile +47 930 02 600
www.afgruppen.no