AF Gruppen Reports Record Fourth Quarter and Strong Full-Year 2025 Results
AF Gruppen delivered its strongest quarter ever in the fourth quarter of 2025, achieving record-high revenues, improved profitability, and solid order intake. The company closed the year with strengthened financial performance, a robust order backlog, and continued focus on safety, operational excellence, and strategic growth.
Record Revenues and Profitability
AF Gruppen reported revenues of NOK 9,252 million in the fourth quarter of 2025, up from NOK 8,595 million in the same period the previous year. For the full year 2025, revenues reached NOK 31,992 million, compared to NOK 30,638 million in 2024.
Earnings before tax (EBT) in the fourth quarter amounted to NOK 653 million, an increase from NOK 589 million in the corresponding quarter last year. For the full year, EBT rose significantly to NOK 1,653 million, compared to NOK 1,085 million in 2024.
This translated into a profit margin of 7.1 percent for the fourth quarter (up from 6.9 percent), while the full-year margin improved markedly to 5.2 percent, compared with 3.5 percent in 2024. The final quarter of the year thus marked the highest revenues and strongest earnings performance in the company’s history.
Strong Order Intake and Record Backlog
Order intake in the fourth quarter totaled NOK 9,587 million, compared with NOK 12,505 million in the same period last year. As of 31 December 2025, the company’s order backlog stood at NOK 44,716 million, up from NOK 40,351 million a year earlier.
The substantial backlog provides a solid foundation for continued activity and revenue generation in the coming periods, reinforcing the company’s market position.
Solid Financial Position and Cash Flow
AF Gruppen maintains a strong financial footing. Cash flow from operating activities reached NOK 1,128 million in the fourth quarter (NOK 1,080 million in 2024), while full-year operating cash flow increased significantly to NOK 3,038 million, up from NOK 2,217 million the previous year.
As of 31 December 2025, the company had net interest-bearing receivables of NOK 1,274 million, a substantial improvement compared to NOK 99 million at the end of 2024.
Earnings per share for 2025 rose to NOK 9.99, compared with NOK 6.52 the previous year. Reflecting the strong performance, the Board of Directors has proposed a dividend of NOK 6.50 per share, up from NOK 5.00, to be paid in the first half of 2026.
CEO Commentary
Amund Tøftum, CEO of AF Gruppen, expressed satisfaction with the results:
We are delivering our best quarter ever, with both revenues and results at record levels. It is gratifying to see strong performances, and the results are supported by high cash flow and order intake. Combined with a strong long-term safety performance, we are very pleased with the close of the year.
He further emphasized the company’s focus on strengthening project management capabilities, enhancing professional expertise, and pursuing strategic acquisitions to capture new growth opportunities.
Strong Commitment to Safety and Workforce Wellbeing
Safety remains a core priority for AF Gruppen. The company applies strict safety requirements across all partners and suppliers, aiming for zero serious injuries and zero work-related absence.
The LTI1 rate (lost time injuries per million hours worked) was 0.2 in the fourth quarter, unchanged from the previous year. For the full year, the LTI1 rate improved to 0.4, down from 0.5 in 2024.
Sick leave stood at 4.5 percent in the fourth quarter, consistent with the previous year. For 2025, the annual sick leave rate was 4.5 percent, compared to 4.1 percent in 2024.
An employee satisfaction survey conducted in November revealed strong engagement levels. Employees rated their working environment 5.3 out of 6, highlighting competence development and career progression as key drivers of satisfaction, motivation, and loyalty.
Business Area Performance
Civil Engineering
The Civil Engineering segment increased revenues by 12 percent compared to the same quarter last year and delivered a solid result. High activity levels and efficient operations characterized the quarter, particularly within AF Anlegg and its strong project portfolio. Subsidiaries Målselv Maskin & Transport and Stenseth & RS also delivered very good results.
Construction
The Construction business area maintained activity levels comparable to the previous year and achieved very strong profitability. Several units, including AF Byggfornyelse, AF Bygg Oslo, AF Bygg Østfold, Haga & Berg, Strøm Gundersen, ÅBF, and FAS, reported very good results.
After the quarter ended, ÅBF agreed to acquire 70 percent of the shares in ByggMesteren Vest, strengthening AF Gruppen’s presence in Bergen’s carpentry services market.
Betonmast
Although activity levels were lower, Betonmast delivered solid profitability. Units in Oslo, Trøndelag, Røsand, Innlandet, Asker og Bærum, and Østfold achieved very good results, while Betonmast Buskerud-Vestfold delivered a good performance.
Property
The Property segment posted a good quarterly result, largely driven by two land plot sales. AF Eiendom sold its share in the Rådhushagen Ski development project to Selvaag Bolig, while LAB Eiendom sold 100 percent of the shares in Sandbrogaten 11 AS to TIF Viking.
Nine home sales contracts were signed during the quarter, and 122 unsold units were completed at quarter-end. The Fagerblom residential project in Oslo, consisting of 82 units, remained under production with a 62 percent sales rate.
Energy and Environment
The Energy and Environment segment achieved revenue growth of 48 percent, largely driven by the acquisition of AF Elkraft. Profitability in this segment was very strong. AF Decom and AF Energi both delivered very good results, while AF Elkraft reported a solid contribution in its first quarter as part of the group.
Additionally, AF Gruppen completed the majority acquisition of Brødrene Myhre, a specialist in well and energy drilling.
Sweden
AF Gruppen’s Swedish operations reported stable activity and very strong profitability. Kanonaden, AF Härnösand Byggreturer, and AF Bygg Syd delivered very good results, while HMB achieved a good outcome. AF Projektutveckling, however, reported a weak result due to no active residential production projects. AF Prefab in Mälardalen was divested during the quarter.
Offshore
The Offshore segment experienced revenue growth but reported a negative result due to a project loss of approximately NOK 100 million in AF Offshore Decom. Despite this, all planned offshore campaigns have now been completed. Aeron delivered a very good result following increased activity levels.
SOURCE LINK: https://www.afgruppen.com/
