Strong growth and good results in the 3rd 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.