Arctic Falls (ARFA) investor relations material

Executive summary

• Net revenue for Q3 2025/2026 was 58,321 TSEK, nearly unchanged year-over-year, despite a challenging market and weather conditions.

• Operating profit decreased to 24,608 TSEK from 28,682 TSEK, with a margin of 42.2% (down from 49.2%).

• Net income for the quarter was 18,306 TSEK, compared to 20,764 TSEK last year.

• The company maintained stable activity levels and customer engagement, supported by favorable winter conditions but impacted by higher energy costs and reduced demand for track preparation.

Financial highlights

• Revenue for the nine-month period increased by 4.3% to 127,829 TSEK.

• Adjusted operating profit for the nine months was 48,182 TSEK, down 7.9% year-over-year.

• Cash flow from operations for the quarter was 10,550 TSEK, significantly lower than 28,732 TSEK last year, mainly due to temporary buildup of receivables.

• Cash and cash equivalents at quarter-end were 18,233 TSEK.

• EBITDA margin for the quarter was 50.2%, down from 57.1% year-over-year.

Outlook and guidance

• Entering the final quarter with 4.6% growth and a focus on long-term growth and strengthened competitiveness.

• Financial targets include annual growth of 10–20%, EBIT margin around 40% mid-term, net debt/EBITDA below 3x, and dividend payout of 30–50% of net income.