AFG: Strong growth and good results in the 3rd quarter

AF Gruppen (AFG) had revenues of NOK 8,881 million in the 3rd quarter. Operating
profit was NOK 576 million, giving an operating margin of 6.5 per cent for the
quarter. 

AF Gruppen's revenues were NOK 8,881 million (7,803 million) in the 3rd quarter
and NOK 25,910 million (22,740 million) year to date. Operating profit was NOK
576 million (406 million) in the 3rd quarter and NOK 1,422 million (1,019
million) year to date. This gave an operating margin of 6.5 per cent (5.2 per
cent) in the 3rd quarter and 5.5 per cent (4.5 per cent) year to date. The total
order backlog was NOK 45,958 million (44,382 million) at the end of the quarter.


AF Gruppen has a solid financial position. Cash flow from operating activities
was NOK 1,017 million (1,000 million) in the 3rd quarter of 2026 and NOK 1,584
million (1,910 million) year to date. AF Gruppen had net interest-bearing
receivables of NOK 959 million (524 million) as at 30 September 2026. Earnings
per share for the quarter were NOK 3.33 (2.36). The Board of Directors has
resolved to distribute an additional dividend for the financial year 2025 of NOK
4.50 (4.00) per share.

- We have completed a solid quarter, with strong growth, improved profitability
and high cash flow. Profitability is good, with an operating margin of 6.5 per
cent for the quarter and 5.5 per cent year to date in 2026. Our core business is
contributing well to the growth, while we have also expanded our range of
services, says Amund Tøftum, CEO of AF Gruppen. 

AF imposes the same strict safety requirements on all partners and suppliers as
on its own employees. Figures from subcontractors are included in the injury
statistics. The LTI-1 rate for the 3rd quarter was 1.4 (0.2). Year to date, the
LTI-1 rate was 1.0 (0.5). 

AF works systematically and purposefully to prevent work-related absence. The
sick leave rate for the 3rd quarter was 4.0 per cent (4.4 per cent). Year to
date, the sick leave rate was 4.3 per cent (4.5 per cent).

- Over the past year, AF Gruppen has entered both new market segments and new
geographical areas. We have strengthened our position in the power sector and
expanded our international operations. The common denominator for these ventures
is project-based operations, and they are leading players in their markets.
Sound operations in our contracting businesses, together with a strong financial
position, give us a foundation for further organic and structural growth, says
Tøftum. 

Overview of the quarter: 
-	The Civil Engineering Business Area had revenue growth of 6 per cent compared
with the same quarter last year, with an operating margin of 8.6 per cent. AF
Anlegg has high activity and delivered a very good result in the 3rd quarter. AF
Anlegg has a solid project portfolio with several large projects in production.
The projects generally maintain a high activity level and sound operations.
Målselv Maskin & Transport, Stenseth & RS, Consolvo and VSP also delivered very
good results in the 3rd quarter. As of this quarter, Consolvo and VSP have been
operationally divided into two business units.

-	The Construction Business Area encompasses the Norwegian building activities
except for Betonmast and had revenue growth of 12 per cent compared with the
same quarter last year. AF Bygg Oslo and Strøm Gundersen delivered very good
results in the 3rd quarter. AF Byggfornyelse, AF Bygg Øst and AF Håndverk
delivered good results. LAB reported a result somewhat below expectation in the
quarter.

-	The Betonmast Business Area increased revenues by 8 per cent compared with the
same quarter last year and delivered a good result. Betonmast Trøndelag and
Østfold delivered very good results in the 3rd quarter. Betonmast Oslo, Røsand
and Innlandet delivered good results. Betonmast Buskerud-Vestfold reported a
result somewhat below expectation.

-	Property reported a weak result in the quarter, with weak results in both AF
Eiendom and LAB Eiendom. Residential sales were low in the quarter, and only
four homes were handed over. At the end of the quarter, 108 completed homes
remained unsold, of which AF's share is 32 (50). Fagerblom in Oslo was the only
residential project in production, with a sales ratio of 65 per cent. After the
end of the quarter, construction commenced on the Nyhaugen residential project
at Wergeland in Bergen.
 
-	Energy and Environment had revenue growth of 76 per cent compared with the
same quarter last year. The increase was mainly due to the acquisition of AF
Elkraft. The Business Area achieved an operating margin of 9.1 per cent. AF
Decom and AF Elkraft both had high activity and delivered very good results in
the 3rd quarter. AF Energi had lower activity compared with the same quarter
last year and reported a result somewhat below expectation. 

-	The Sweden Business Area had revenue growth of 22 per cent compared with the
same quarter last year, with a good result. Kanonaden Mälardalen changed its
name to Kanonaden Construction during the quarter and, together with AF
Härnösand Byggreturer, delivered very good results in the 3rd quarter. AF Bygg
Syd delivered a good result. HMB reported a result somewhat below expectation.
Kanonaden Entreprenad reported a weak result in the quarter.

-	Offshore had revenue growth of 56 per cent compared with the same quarter last
year, mainly driven by the acquisition of AF Claxton. Operating profit for the
Business Area was very good. AF Offshore Decom and AF Claxton delivered very
good results in the 3rd quarter. Aeron reported a result somewhat below
expectation in the quarter.


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