Arctic Falls (ARFA) Q2 25/26 earnings summary

Executive summary

• Achieved a strategic milestone by completing a stock market listing on Nasdaq First North Growth Market in December, enhancing financial flexibility and supporting future investments and international growth.

• Extended a major contract with a leading automotive customer, reinforcing long-term business relationships.

• Despite a challenging market and lower on-demand volumes, the customer base remains robust, with increased volumes from contracted customers.

• Net sales for Q2 2025/2026 decreased by 1.6% year-over-year to 37,586 TSEK, mainly due to a 35.8% drop in on-demand revenues.

• Profitability was temporarily impacted by one-time listing costs.

Financial highlights

• Net sales: 37,586 TSEK, down 1.6% year-over-year, mainly due to a 35.8% drop in on-demand revenues.

• Contracted customer revenues increased by 12% year-over-year, driven by higher demand for services such as tire changers and test drivers.

• Outdoor segment revenues grew by 11.9% in H1, while indoor segment declined by 26.1%.

• Adjusted EBIT margin was 33.9% for H1; adjusted operating margin for Q2 was 30.5%.

• Net income: 2,773 TSEK, down 73.6% year-over-year; earnings per share: 0.3 SEK.

Outlook and guidance

• Short-term on-demand volumes remain under pressure, but long-term prospects are strong due to a solid customer base and new investments enabled by the listing.

• Annual growth target set at 10–20%; H1 achieved 8.3%.

• Mid-term EBIT margin goal of approximately 40%.

• Net debt/EBITDA to remain below 3x over time.

• Dividend policy: 30–50% of net profit to be distributed annually; H1 payout: 33.9%.