» Continued sales growth – Net sales increased by 137% to SEK 44.8 million (18.9)

» Good profitability trend – EBITDA amounted to SEK 9.7 million (-0.1), corresponding to an EBITDA margin of 21.6% (-0.7%)

» Solid order backlog – The order backlog increased by 31% to SEK 58.2 million (44.4)

» Extensive framework agreements – Total framework agreement value of SEK 781 million, of which SEK 520 million remains

The Group July–September 2026

» Net sales amounted to SEK 44,784 thousand (18,865)

» EBITDA amounted to SEK 9,663 thousand (-128), corresponding to a margin of 21.6% (-0.7%)

» EBITA amounted to SEK 8,959 thousand, corresponding to a margin of 20.0%

» Operating profit amounted to SEK 3,945 thousand (-4,067)

» Profit for the period amounted to SEK 1,463 thousand

» Earnings per share amounted to SEK 0.07

» Order intake amounted to SEK 34,891 thousand (38,376) and the order backlog to SEK 58,197 thousand (44,390)

The Group January–September 2026

» Net sales amounted to SEK 160,319 thousand (31,370)

» EBITDA amounted to SEK 25,830 thousand (4,163), corresponding to a margin of 16.1% (13.3%)

» EBITA amounted to SEK 24,396 thousand, corresponding to a margin of 15.2%

» Operating profit amounted to SEK 9,882 thousand (-1,337)

» Profit for the period amounted to SEK 5,007 thousand

» Earnings per share amounted to SEK 0.24

» Order intake amounted to SEK 154,711 thousand (76,266) and the order backlog to SEK 58,197 thousand (44,390)

*Argo Defence Group AB (publ) was incorporated on 29 April 2025 and the Group's first acquisition was completed in June 2025. Further companies were acquired in December 2025 and in March 2026. The 2025 comparative figures therefore include those operations only from their respective acquisition dates and cover a smaller group than in 2026. The figures are therefore not fully comparable. The Group's first financial year covered 29 April–31 December 2025.

**Argo Defence Group prepares its financial statements in accordance with K3. Under K3, goodwill is amortised on an ongoing basis, which is charged against operating profit, whereas companies reporting under IFRS do not amortise goodwill. Goodwill amortisation amounted to SEK 4.6 million for the quarter (SEK 13.6 million for January–September). EBITA therefore provides a more meaningful basis for comparison with such companies.

SIGNIFICANT EVENTS

The quarter July–September 2026

» On 11 September 2026, Disarmament Solutions Ukraine was awarded a contract worth SEK 17 million for specialised defence technology, with deliveries to Ukrainian end users during 2026 and 2027. The contract is the company's first commercial order in a new business segment in Ukraine.

Events After the End of the Period

» On 15 October 2026, Argo Defence Group announced that the company's shares are intended to be dual-listed on Boerse Stuttgart as of 18 November 2026.

» On 26 October 2026, it was announced that Poseidon Diving Systems had received a pilot order from the U.S. Navy within a larger US defence programme, as well as pilot orders from two special forces units within NATO. The orders are considered capable of leading to series deliveries, and the target is for Poseidon to achieve net sales of SEK 150 million in 2029 with an EBITDA margin of 15–20%.

» On 4 November 2026, Swedish Net Air & Defence received an award decision from FMV for a framework agreement covering water tank systems for the Swedish Armed Forces. The value of the framework agreement amounts to SEK 68 million. The agreement period is two years with an option to extend for a further two years.

COMMENTS FROM THE CEO, MARCUS SELME

Strengthened profitability, broader customer base and new business

Results for the quarter

The third quarter shows that the breadth of the Group is starting to deliver results. Net sales amounted to SEK 44.8 million and EBITDA to SEK 9.7 million, corresponding to an EBITDA margin of 21.6% (8.6% in Q2). The margin improvement compared with the second quarter is mainly due to deliveries under Swedish Net Air & Defence's framework agreements with FMV and the Swedish Armed Forces. Freight rates, which weighed on earnings in the second quarter, were locked in over the summer and are now at normal levels. The margin is affected by which deliveries are carried out and may vary between quarters.

A question I am often asked is why our order intake fluctuates so much between quarters. The answer lies in how our largest business works. Over the year, approximately two thirds of the Group's order intake comes from call-offs under our framework agreements within Defence Materiel. As call-offs do not come at an even pace, the Group's order intake varies, from SEK 90.3 million in Q1 to SEK 29.5 million in Q2. In the third quarter, there were fewer call-offs, and order intake of SEK 34.9 million consisted mainly of direct orders within Counter-Explosive Risk Solutions and Airfield Operations. This is also reflected in the order backlog, which amounted to SEK 58.2 million at quarter-end (SEK 69.7 million at the half-year). At the same time, of the total value of the framework agreements of approximately SEK 781 million, approximately SEK 520 million remains, which customers have the option, but not the obligation, to call off.

After the end of the quarter, Swedish Net Air & Defence received an award decision in FMV's procurement of water tank systems for the Swedish Armed Forces, a framework agreement with a value of SEK 68 million. We continuously submit tenders in a large number of procurement processes, and more are now under evaluation.

Developments in the business areas

Within Counter-Explosive Risk Solutions, Disarmament Solutions has signed its first agreement with the Swedish Police Authority, covering personal equipment. The agreement is limited in value, but the Police is a new customer for the company, and the deal strengthens our role as a supplier to uniformed personnel and authorities performing critical societal functions.

In Ukraine, Disarmament Solutions Ukraine has received its first order in a new segment relating to specialised defence technology. We see the order as a first step in an area where we expect further orders going forward.

When we acquired Poseidon Diving Systems in March, we saw the opportunity to build a leading supplier of diving systems for military units. After the end of the quarter, the first pilot orders arrived, from the U.S. Navy within a larger US defence programme and from two special forces units within NATO. Pilot orders are the route to series deliveries, which is why we have set the target for Poseidon to achieve net sales of SEK 150 million in 2029, with an EBITDA margin of 15–20%.

For Airfield Operations, the third quarter was peak season for deliveries at both Zel-Aaren Innovation and LPG Trafikmarkeringar. So far this year, Zel-Aaren has increased its net sales and broadened its customer base, while LPG has reported slightly lower net sales and order intake than in the corresponding period last year. Both companies have received enquiries about larger assignments for 2027, both in Sweden and internationally.

Defence Materiel is now also participating in international procurement processes, mainly in Germany and other NATO countries, with offerings such as container solutions and radio link antennas.

Looking ahead, we see opportunities in all business areas, and each new framework agreement we win can quickly have a significant impact on the Group's net sales. We enter the final quarter of the year with strengthened profitability, a broader customer base and several deals with strong growth potential. This makes me optimistic about 2027.

Many thanks to our employees, who have delivered a strong quarter, and to our customers and shareholders for their continued confidence.

Stockholm, November 2026

Marcus Selme, President and Group CEO

FINANCIAL CALENDAR

The next report, the Year-End Report for 2026, will be published on 18 February 2027.

The full report attached to this press release is also available for download on the company’s website: https://argodefence.se/investor-relations/financial-reports/