Trading Update
Q1 2026
May 2026
TRADING UPDATE Q1 2026
Q1 2026 - Key highlights
SCANFIBER INTEGRATION |
SUBSEQUENT OFFERING |
RECORD-HIGH ORDERBOOK |
REVENUE AND EBITDA MARGIN |
REVENUE GROWTH |
SIGNIFICANT CONTRACT AWARD FOR FD AS |
FJORD DEFENCE AS |
SCANFIBER COMPOSITES A/S |
NEW BOARD OF DIRECTORS |
ACQUISITION OF MILPRO |
First quarter of 2026 Subsequent events
Note: (1) Including Milpro FD = Fjord Defence AS
The acquisition of Scanfiber Composites A/S for approximately NOK 400 million was completed on 25 February 2026, and the first quarter focused on integrating this unit into the group
On January 14, 2026, the company launched a subsequent offering for eligible shareholders who were not part of the previous private placement of NOK 25 million
The company reported a robust order book at an all-time high as of the start of 2026, with NOK ~20 million added during the first quarter. Including the contemplated acquisition of Milpro, the current orderbook amounts to NOK ~535 million
The group anticipates stable margins and solid growth throughout 2026. First quarter pro forma revenue from defence segment1 of NOK ~80 million and EBIDTA margin of 15%
Growth is expected to be driven by a strong European defence market, and expect pro forma 2026 revenues of NOK 420-450 million and EBITDA of NOK 60-110 million from the defence segment1
3
A leading military vehicle OEM has placed a new order for weapon mounts valued at NOK 43 million, of which NOK 16 million will be delivered during 2026
Moved into new production facilities in Nøtterøy, increasing production capacity 10-fold
Successfully recruited new CEO to lead and scale the
operations in Denmark, and hired new sales team
The nomination committee has proposed to the Annual General Meeting that Niels Ihloff takes the helm as new chair of the board, and that former Norwegian Minister of Justice Emilie Mehl joins as a board member
A leading integrator of mission-critical bespoke light boat platforms (such as RIBs, inflatables and other types of crafts typically below 10 meters) for military and professional use
TRADING UPDATE Q1 2026
LTM Q1'26 pro forma defence revenue of NOK ~340 million, up ~25% YoY
Revenue development Fjord Defence, Scanfiber and Milpro (NOKm) ~335CAGR +50%
~260 ~155 ~100400
300
200
100
Revenue development year-over-year (NOKm)YoY +25%
~340 ~270400
300
200
100
0
2022 2023 2024 2025 Fjord Defence Scanfiber Composites Milpro0
LTM Q1'25 LTM Q1'26 Fjord Defence Scanfiber Composites Milpro~G0
CAGR +100%
~60 ~25 ~10 EBITDA development Fjord Defence, Scanfiber and Milpro (NOKm)100
80
60
40
20
0
2022 2023 2024 2025 Fjord Defence Scanfiber Composites MilproEBITDA development year-over-year (NOKm)
YoY +55%
~G0 ~60100
80
60
40
20
0
LTM Q1'25 LTM Q1'26 Fjord Defence Scanfiber Composites Milpro4
Note: Unaudited pro forma figures prepared by the Company's management solely for illustrative purposes. Investors are cautioned not to place undue reliance on the pro forma financial information. Adj. EBITDA for Milpro
TRADING UPDATE Q1 2026
Record-high orderbook of NOK ~535m across the three defence companies
~140 ~535
~95
~300
2026 YTG 2027 2028+ TotalYTG = Year-to-go (Q2-Q4) 5
TRADING UPDATE Q1 2026
Pro forma Q1 for the defence segment (including Milpro), legacy and the Group
Commentary
− Total pro forma Defence revenues increased 6% y/y, driven by a solid contribution from Milpro
− Scanfiber's Q1 was impacted by stock shortage of input raw materials that pushed some deliveries forward. This is expected to be caught up, and on a pro forma basis, revenues from these two companies are expected to grow 10-20% in 2026. Including Milpro, total defence revenues are expected to grow 25-35% YoY
− Defence EBITDA ended at NOK 13.9m in the quarter, reflecting the timing effect on revenues and ramp-up costs incurred to meet strong demand and a growing backlog. For the full year, pro forma defence EBITDA is expected to come in at NOK 90-110m, with stable margins YoY
− Transaction costs of NOK 4.2m in Q1 2026, including NOK 0.5m related to a transaction that was abandoned. The remaining cost relates to Scanfiber Composites
− Multi-Client amortizations are tax deductible. PPA amortizations are not and carry no cash effect
− Unrealized losses on Capsol shares of NOK 6.7m in Q1 2026
Milpro | SF | FD | Def. seg. | Legacy Group |
1.8 | 42.2 | 32.0 | 76.0 | 0.0 76.0 |
(0.9) | (24.6) | (23.1) | (48.6) | (0.1) (48.7) |
1.0 | 17.6 | 8.G | 27.4 | (0.1) 26.3 |
53% | 42% | 28% | 28% | N/A 78% |
(0.4) | (7.2) | (2.6) | (10.2) | (2.3) (12.5) |
(0.7) | (0.9) | (1.5) | (3.2) | (3.1) (6.2) |
0.0 | 0.0 | 0.0 | 0.0 | 4.0 4.0 |
0.0 | 0.0 | 0.0 | 0.0 | 0.0 0.0 |
(0.1) | G.4 | 4.8 | 14.1 | (1.6) 11.5 |
0.0 | 0.0 | 0.0 | 0.0 | (4.0) (4.0) |
(0.1) | G.4 | 4.8 | 14.1 | (5.5) 8.5 |
(8%) | 22% | 15% | 15% | N/A 8% |
(0.0) | (0.8) | (0.4) | (1.3) | 0.0 (1.3) |
0.0 | 0.0 | 0.0 | 0.0 | (16.4) (16.4) |
0.0 | 0.0 | 0.0 | 0.0 | 0.0 0.0 |
(0.2) | 8.6 | 4.4 | 12.8 | (21.G) (G.0) |
(0%) | 0% | 0% | 0% | N/A (0%) |
0.4 | (0.3) | (0.4) | (0.2) | (0.2) (0.4) |
0.3 | 8.3 | 4.0 | 12.6 | (22.1) (G.6) |
Milpro | SF | FD | Def. seg. | Legacy Group |
28.G | 32.2 | 1G.7 | 80.8 | 1.2 82.0 |
(20.3) | (18.4) | (12.1) | (50.8) | (0.1) (50.9) |
8.6 | 13.G | 7.6 | 30.0 | 1.1 31.1 |
30% | 43% | 38% | 28% | S0% 38% |
(0.8) | (6.2) | (3.5) | (10.6) | (2.9) (13.4) |
(1.4) | (1.4) | (2.8) | (5.6) | (15.8) (21.3) |
0.0 | 0.0 | 0.0 | 0.0 | 6.7 6.7 |
0.0 | 0.0 | 0.0 | 0.0 | 4.2 4.2 |
6.4 | 6.3 | 1.2 | 13.G | (6.6) 7.2 |
0.0 | 0.0 | 0.0 | 0.0 | (10.9) (10.9) |
6.4 | 6.3 | 1.2 | 13.G | (17.6) (3.7) |
22% | 1S% | c% | 15% | N/A (4%) |
(0.1) | (0.7) | (0.5) | (1.3) | 0.0 (1.3) |
0.0 | 0.0 | 0.0 | 0.0 | (14.4) (14.4) |
0.0 | 0.0 | 0.0 | 0.0 | (7.3) (7.3) |
6.3 | 5.5 | 0.7 | 12.5 | (3G.3) (33.0) |
0% | 0% | 0% | 0% | (3%) (0%) |
0.2 | (0.1) | (1.3) | (1.3) | (12.3) (13.5) |
6.5 | 5.4 | (0.6) | 11.3 | (51.5) (40.3) |
Cost of materials and direct services
NOKm
Contribution margin
Personnel cost
Other operating costs
Adjust for unrealised loss Capsol Deducting transaction costs
NOKm
"
"
"
Addback of Trans. Costs C CAPSOL
NOKm
EBITDA margin
Depreciation and amortization NOKm Amortization C Impairment multi-client library " Amortization of other intangible assets (PPA) "
Operating margin
Net finance
NOKm
Profit (loss) before tax " Operating Profit " Reported EBITDA " Adj. EBITDA " Gross contribution " Sales revenue NOKmNote: Unaudited pro forma figures (as if all defence entities were owned from 01.01.2024) prepared by the Company's management solely for
illustrative purposes. Investors are cautioned not to place undue reliance on the pro forma financial information. Adj. EBITDA for Milpro. 6
SF = Scanfiber Composites; FD = Fjord Defence
TRADING UPDATE Q1 2026
Outlook: high-level financials, MsA activity and organizational developments
PRO FORMA FINANCIAL TARGETS1 |
ORDERBOOK |
MsA ACTIVITY |
NEW FACILITIES |
ORGANIZATION |
Expected year-over-year pro forma revenue growth for the defence segment of ~25-35% for 2026, corresponding to NOK 420-450 million in pro forma revenue and NOK 60-110 million of pro forma EBITDA. Supported by a record-high order backlog and strong pipeline, we expect accelerated growth for Fjord Defence and Scanfiber in 2027
Orderbook at all-time high, exceeding NOK 535 million across Fjord Defence, Scanfiber Composites and Milpro
In line with DFENS' acquisition strategy, the company is continuously engaged in dialogue with potential acquisition targets. In particular, DFENS has started on due diligence and is currently in discussions to potentially acquire another well-established Scandinavian defence company with strong products, reputable customers, a solid order book and mid-teen EBIT margins. DFENS has been granted exclusivity, but no assurance can be given that the transaction will be completed.
Fjord Defence AS moved into new facilities during Q2 and expands production capacity to meet higher demand
Focused on building a strong organization to execute significant organic growth and new MsA
Note: (1) For the defence segment 7
Appendix
TRADING UPDATE Q1 2026
Fjord Defence Group - Consolidated income statement
INCOME STATEMENT | UNIT | Q1 20261 | Q1 2025* |
Total revenue | NOKm | 32.1 | 0 |
Cost of goods sold | NOKm | (21.2) | (0.1) |
Gross profit | " | 10.G | (0.1) |
Other income (losses) | NOKm | 0 | 2.2 |
Sales, general and administrative expenses | " | (15.1) | (3.7) |
Transaction costs | " | (4.2) | 0 |
EBITA | " | (8.5) | (1.6) |
Amortization multi-client | NOKm | (14.4) | (16.4) |
Amortization identified intangible assets | " | (7.3) | 0 |
EBIT | " | (30.2) | (18.0) |
Change in fair value investments | NOKm | (6.7) | (4.0) |
Financial items | " | (13.3) | (0.2) |
Profit (loss) before tax | " | (50.2) | (22.1) |
Income tax (expense) | NOKm | 1.5 | 0 |
Profit (loss) for the period | " | (48.7) | (22.1) |
Other comprehensive income, items that will not be reclassified to profit or loss | |||
Currency translation adjustments | NOKm | (0.5) | 16.6 |
Other comprehensive income (loss) for the period | " | (0.5) | 16.6 |
Total comprehensive income (loss) for the period | " | (4G.2) | (5.5) |
Earnings (loss) per share Basic earnings per average share | NOK / sh. | (0.85) | (1.23) |
Diluted earnings per average share | NOK / sh. | (0.85) | (1.23) |
* Comparative figures have been restated | |||
Commentary
− Profit and loss includes Fjord Defence AS from 01.01.2026 and Scanfiber Composites A/S from the closing date 25.02.2026, while Q1 2025 only consist of previous Group activities
− NOK 1.2m of the revenues for Q1 2026 came from Legacy activities and the remaining NO 30.9m stemmed from the Defence segment
− SGCA increased from NOK 3.7m in 2025 to NOK
15.1m in 2026
− NOK 7.4m related to the Defence segment
− NOK 1.8m related to increased salaries and travel cost
− NOK 1.1m related to periodization of audit cost
− NOK 0.5m related to transactions not
consummated
− Transaction costs of NOK 4.2m as a consequence of the current buy and build strategy initiated in Q2 2025
− Amortization of Multi-client libraries according to plan
− Other amortizations of NOK 7.3m are related to PPA
after Fjord Defence and Scanfiber acquisitions
− Financial items include negative unrealized currency effects from assets denominated in USD due to relative strengthening of NOK
Note: (1) Unaudited figures. Full Q1 report will be published on 28 May 2026 9
TRADING UPDATE Q1 2026
Fjord Defence Group - Consolidated balance sheet (Q1 2026)
BALANCE SHEET | UNIT | 31.03.20261 | 31.03.2025 | BALANCE SHEET | UNIT | 31.03.20261 | 31.03.2025 | |
Goodwill | NOKm | 407.6 | 178.2 | Share capital and other paid in capital | NOKm | 1,275.2 | 1,143.2 | |
Multi-client library | " | 142.4 | 162.1 | Own shares | " | (9.0) | (9.0) | |
Other intangible assets | " | 274.5 | 88.1 | Other reserves | " | (535.9) | (487.2) | |
Deferred tax asset | " | 0 | 5.9 | Other reserves - CTA | " | 11.0 | 11.5 | |
Machinery and plant | " | 20.2 | 2.7 | Total equity | " | 741.3 | 658.5 | |
Right of use asset | " | 3.4 | 2.6 | |||||
Investments | " | 19.2 | 26.1 | Interest-bearing debt | NOKm | 131.0 | 17.0 | |
Non-current assets | " | 867.3 | 465.7 | Lease liability | " | 3.0 | 2.2 | |
Non-current liabilities | " | 134.0 | 1G.2 | |||||
Inventory | NOKm | 44.8 | 19.7 | |||||
Trade receivables | " | 34.1 | 19.5 | Interest-bearing debt current | NOKm | 33.6 | 4.9 | |
Other current assets | " | 7.0 | 19.2 | Deferred tax | " | 34.2 | 0 | |
Bank deposits. cash in hand | " | 47.0 | 199.4 | Trade payables | " | 29.0 | 19.4 | |
Current assets | " | 132.G | 257.8 | Taxes payables | " | 10.5 | 10.9 | |
Other current liabilities " 17.5 10.7 | ||||||||
Total assets | NOKm | 1,000.2 | 723.5 | Current liabilities | " | 124.G | 45.8 | |
Total liabilities | NOKm | 258.G | 65.0 | |||||
Total equity and liabilities | NOKm | 1,000.2 | 723.5 | |||||
Commentary
− The consolidated balance sheet at 31.03.2026 include Scanfiber Composites and a preliminary Purchase Price Allocation after the closing of the transaction 25 February 2026
− The increase in goodwill and other intangible assets from year end 2025 stems from the mentioned transaction
− Multi-client library in Egypt will be fully amortized during Q2 2026 and only the Norwegian part of the library remains after that
− Cash of NOK 47m remains satisfactory after a decrease during Q1 due to settlement of the Scanfiber transaction
− Unutilized facilities of NOK 75m per 31 March 2026
− Equity ratio of 74% and net interest-bearing debt of NOK 120.7m
Financial robustness and flexibility persists
Note: (1) Unaudited figures. Full Q1 report will be published on 28 May 2026 10
https://www.fjorddefencegroup.no/
11
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