First quarter report 2026

Magnora

The Group maintains a robust risk management framework and continues to focus on the most material uncertainties that could affect financial and operational performance. Risk exposures are reviewed regularly across all business units and governance levels. As of the end of the first quarter of 2026, the Group’s overall risk profile remains consistent with the disclosures provided in the 2025 Annual Report.

Our data center business receives very high attention. Responding to the strong growth and market interest for our DC projects, and to deliver on this market opportunity, we have engaged Arctic Securities as financial adviser to explore a stock exchange listing of the data center business. An IPO will provide for better recognition of values, more resources and flexibility in pursuing a great market opportunity.

I look forward to continuing to deliver on our ambitions and on our stakeholders' expectations. Please do not hesitate to reach out to me or my colleagues with any questions, ideas or feedback.

Reached the 10 GW project portfolio target in the first week of 2026, driven by data center additions in the Nordics and renewable energy growth in South Africa, Germany and Italy.

Sales processes (of 500-800 MW) concerning renewable energy projects continued to advance across all regions and technologies. Increasing number of projects in the portfolio becoming sales ready as they are being developed and de-risked.

Battery energy storage ("BESS") projects in Germany and Italy passed a combined potential of 1.5 GW. In South Africa wind projects of 480 MW were originated.

Capital discipline remains strong and spending was prioritised to the most high-potential and sales-ready renewable energy projects. Total commitments were reduced (e.g. for the Talisk project, where low costs are expected from Q2 2026 and in total less than NOK 5 million during the last three quarters of 2026).

I am very pleased to give this update on our exciting start to 2026. The main themes of the quarter were the improving market sentiment for renewable energy and the high growth of our data center ("DC") project portfolio.

Magnora’s operational data center Storespeed was upgraded, and initiated evaluation of expansion possibilities. The company is being developed in close dialogue with its management and our co-owner Blix Solutions.

A new DC project for a high-density, AI-ready 120 MW data center in Hämeenlinna near Helsinki, Finland, was established. Magnora owns 70%. It is expected to reach Ready-to-Build stage by end of 2026.

A new DC project for a 100 MW data center in the northwestern part of Norway was established, together with strong regional partners. Magnora owns 60%.

Magnora reached its 10 GW project portfolio target in January 2026, driven in large part by the addition of high-value data center projects in the Nordics.

Magnora invested in a DC project for a 10 MW data center in the outskirts of Oslo, Norway.

Our DC business has reached significant scale after its launch in 2025, having:

Our Italian and South African subsidiaries started DC origination work, extending our reach beyond the Nordics.

Based on high market interest, Magnora decided to engage Arctic Securities for exploring a listing of Magnora’s data center business during 2026.

 totalled NOK 128.4 million as of 31 March 2026 (Q1 2025: NOK 229.6 million), reflecting strong origination focus on data center opportunities and continued development of the growing portfolio.


 was a net loss of NOK 44.7 million, compared to a net profit of NOK 38.6 million in the same quarter last year. The prior-year result included a non-recurring milestone payment, while the current quarter reflects increased development activity and associated costs related to the expansion of the Magnora’s data center platform.

Magnora Sweden DC secured its first project in April, marking an important milestone for the business. The project comprises an initial capacity of 60 MW, with a further 120 MW planned for phase two.

On 22 April 2026, Magnora secured a 30 MW data center project in North Italy. The site is less than a kilometer from grid connection in the outskirts of a metro area and minutes from an airport.

In early April, Magnora secured a 150 MW BESS project in Hessen, Germany, located in proximity to a key substation.

Continued high growth of the data center business:

 The DC portfolio is expected to continue to grow in a pace comparable to what we have seen in the recent months. The European DC market is expected to more than double over the next five years, driven by AI infrastructure buildout. Magnora is positioned to capture a fair share of that growth in the Nordics. Our strategy combines project development with selective ownership of operational assets, created organically and through partnerships and targeted M&A. Inbound interest from municipalities, landowners, utilities, and industrial partners is strong and growing. The shift toward sovereign and regionally anchored compute capacity reinforces a trend towards the Nordics as a preferred location given its power availability, political stability, and cooling advantages. We expect to announce both origination (new projects) and project milestones in the coming months.

established a DC team in Sweden and partnerships in Norway and Finland,

Sales processes for renewable energy projects: 

that ongoing sales processes materialise in sales during the coming months. The project portfolio continues to develop, with over 2,500 MW of renewable energy projects in a stage that enables sales. Discussions from Q1 concerning 500-800 MW of project sales have advanced further, and the volume may also be higher. The geopolitical environment continues to strengthen the strategic case for domestic renewable capacity. Although experiencing extended timelines in some processes, we have live dialogues with credible bidders across all regions and technologies and remain confident that the quality of our portfolio will be reflected in the outcomes we achieve.

aim to develop a unique greenfield portfolio of land, grid and permits for the hyperscale DC acquired the operational data center Storespeed,

Magnora’s Talisk project in Scotland has been developed steadily according to plan since 2022. Further costs are expected less than NOK 5 million in total over the rest of 2026.

Future income from sold projects expected over the next years:

 Earnouts, revenue-sharing arrangements and milestone payments from previously sold projects and companies are expected to provide Magnora with substantial income through to 2029.

As of 31 March 2026, Magnora’s share price was NOK 23.70, corresponding to a market capitalisation of NOK 1.6 billion. Magnora did not repurchase any of its own shares during the quarter. At quarter-end, Magnora held 1,726,441 treasury shares. The Board of Directors will evaluate cancellation of these shares in alignment with Magnora’s capital allocation strategy. The Board continues to identify attractive growth opportunities in the short to medium term, consistent with the Group’s long-term growth strategy and will consider various financial alternatives.

invested into a 100 MW DC project in Averøy,

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invested, in Q1 2026, in three DC projects in Norway and Finland (120 MW; 96 MW; 10 MW urban) with a combined potential of 226 MW,

Magnora and its subsidiaries (“the Group”) recognise their share of financial results from portfolio companies in accordance with IFRS, based on the Group’s ownership stake.

Portfolio companies are classified as associates when the Group holds between 20% and 50% ownership and/or does not exercise control over the entity. For these companies, the Group recognises its proportional share of net profit or loss. Further details are provided in Note 6: Investment in Associates.

Companies are classified as subsidiaries when the Group holds more than 50% ownership and/or exercises control as the majority shareholder. These entities are fully consolidated into the Group’s financial statements, and their entire net profit or loss is recognised. Development costs in these subsidiaries are expensed rather than capitalised, as the projects are in early-stage development.

Operating revenue for the quarter amounted to NOK 2.2 million, compared to NOK 49.7 million in the same quarter last year. The decrease is mainly due to a non-recurring milestone payment of USD 4.3 million (NOK 48.4 million) from Shell UK Ltd. related to Magnora’s legacy design royalties.

Total other income was NOK 0 million for the quarter, down from NOK 12.8 million in the first quarter of 2025. The decrease primarily reflects lack of project divestments in the current quarter, while the income from Q1 2025 relates to project divestments in South Africa. No additional earn-out income was recognised from other prior divestments during the period.

The Group’s business model focuses on developing and monetising renewable energy and data center projects, with income primarily generated through project divestments. As such, a significant portion of the Group’s earnings is recognised under other income, rather than through conventional operating revenue streams.

Operating expenses for the quarter amounted to NOK 12.8 million, compared to NOK 9.9 million in the same quarter last year. The increase primarily reflects the growth of the data center project portfolio.

established, in April 2026, a DC project in Sweden for initially 60 MW, plus a potential 120 MW in phase two.

Development and M&A costs for the quarter totalled NOK 27.0 million, compared to NOK 11.5 million in the same quarter last year. The increase primarily reflects the growth of the data center project portfolio.

Net financial items were a negative NOK 5.6 million, compared to a net income of NOK 1.7 million in the same quarter last year. This reflects movement in currency. While not attributable to underlying operational performance, exchange rates had a negative impact on the Group’s overall quarterly result.

The Group reported a net loss of NOK 44.7 million, compared with a net profit of NOK 38.6 million in the same quarter last year. The decline is mainly attributable to reduced other income, as the prior-year period benefited from significant gains related to the milestone payment from Shell UK Ltd. The result for the quarter also reflects higher development investments aligned with the Group’s growth in data center project development.

As of 31 March 2026, the Group’s cash and cash equivalents were NOK 128.4 million, compared to NOK 229.6 million as of 31 March 2025. Cash flow from operating activities was negative NOK 37.5 million, compared to negative NOK 15.4 million in the first quarter last year, mainly due to development costs.
Investing activities were NOK 0 million, down from NOK 6.5 million in the prior year, reflecting last year’s divestment proceeds from the South African SPV investments.
Financing activities resulted in an outflow of NOK 0.4 million, versus NOK 15.5 million in the same quarter last year, mainly due to the prior period’s NOK 12.0 million capital repayment and no capital distribution to shareholders this quarter.

Our DC project portfolio is then by the end of April gross 410 MW (net 290 MW to Magnora). In line with our ambitions and capabilities, we intend to continue the high DC growth. We benefit from a distinct combination of operational skills, power market insight, landbank and permitting expertise, and financial strength, while committing our origination capacity, management attention, and capital accordingly. Local communities and grid operators increasingly require DC developers to also be operators, and our operational credentials have been well received across the Nordics.

Group equity by the end of the quarter was NOK 316.4 million (NOK 369.4 million as of 31 December 2025), representing an equity ratio of 80 percent, down from 83 percent at the end of 2025. The reduction in equity during the quarter mainly reflects losses incurred in the period. As of the report date, the Group has undrawn overdraft facilities of NOK 150 million.

The Group remains exposed to a range of financial, operational, and strategic risks, which are actively monitored and managed across all levels of the organisation. As of the end of the first quarter of 2026, there have been no material changes to the Group’s overall risk exposure or assessment compared to those outlined in the 2025 Annual Report.

The Group is directly and indirectly exposed to fluctuations in electricity prices, auctions, inflation, interest rates, and currency exchange rates, which can all impact investment returns and asset valuations. To mitigate these risks, the Group continuously monitors market developments and forecasts, and proactively adjusts its internal strategies, economic assumptions, and valuation models to reflect changing conditions.

As the Group increases its exposure to capital-intensive projects, it faces elevated liquidity and financing risks. These risks are actively managed through robust financial planning, close collaboration with financing partners, and a phased investment strategy aligned with project milestones and planned divestments.

Changes in renewable energy policies, tax regimes, or regulatory frameworks may impact project timelines and profitability. The Group actively monitors policy developments and government signals to ensure timely adjustments to strategic plans and financial forecasts. Risks related to licensing, municipal veto rights, and concession approvals are mitigated through early stakeholder engagement and geographic diversification, which help reduce exposure to localised regulatory hurdles.

 Ongoing geopolitical tensions and conflicts continue to contribute to volatility across several markets. These developments may disrupt supply chains, alter regulatory environments, and impact trade agreements. The Group actively monitors geopolitical developments and regional market dynamics, updating strategic plans and financial forecasts to mitigate potential impacts. This includes scenario planning, geographic diversification, and close engagement with stakeholders to ensure resilience.

Risks such as delays in permitting, grid access, and land acquisition remain material and can impact project timelines. In addition, global supply chain constraints such as limited availability of key components, may lead to increased costs and scheduling disruptions. The Group mitigates these risks through rigorous due diligence, flexible development timelines, and diversification across geographies and technologies to ensure resilience and execution agility.

Environmental considerations, including biodiversity, habitat protection, and land use can significantly influence permitting processes and project design. At the same time, climate change and the global energy transition continue to drive long-term demand for renewable energy, reinforcing the Group’s strategic direction. The Group integrates environmental factors early in project development and actively engages with stakeholders to ensure compliance and minimise ecological impact.

The Group is exposed to risks related to fraud, corruption, and noncompliance. These are mitigated through a robust internal control framework that includes a code of conduct, anti-corruption policies, IT security protocols, and supplier screening procedures. While exposure to fraud remains limited, the Group maintains vigilance through regular training, oversight, and reporting mechanisms. Compliance is followed up mainly by management on various levels, assisted by central Group functions. Magnora also has a whistleblowing channel on its website.

Cyberattacks and to some extent physical interference targeting infrastructure and businesses has been increasing the recent years. Power production and data centers are natural targets. The Group actively monitors threat intelligence and maintains its cybersecurity posture to safeguard operations, data integrity, and stakeholder trust. In both project development and operations, security receives high and increasing attention. This is increasingly relevant for data centers and renewable energy.

Magnora's renewable energy portfolio continues to advance and at is managed with high capital discipline. Capital is allocated mainly to the most advanced and highest-value assets. The Q1 costs were influenced by high data center project origination and development.

The Group’s performance is closely tied to the expertise and continuity of its highly specialised team. The potential loss of key personnel remains an ongoing risk, particularly in areas requiring deep technical, regulatory, or market knowledge. This risk is mitigated through proactive succession planning, targeted recruitment efforts, and initiatives to retain and develop talent across the organisation.

The renewable energy sector is becoming increasingly competitive, with growing interest from established players and new entrants alike. The Group manages this risk through disciplined project selection and execution, rigorous cost control, and a strong market-oriented approach. By focusing on high-quality, strategically located projects and maintaining operational agility, the Group aims to preserve its competitive edge and deliver sustainable value in a dynamic market environment.

Sales processes have taken longer time the last couple of years, but we expect them to gain speed, as the market sentiment for renewable energy is improving. The need for independent, affordable and predictable energy has strengthened the policy and investment backdrop for renewables. We experience that interest from power producers and infrastructure funds remains strong, but perhaps more selective than in previous years, and we advance our projects steadily.

Cash flows from subsidiaries and associated companies are dependent on effective operational execution and the timely achievement of project milestones, introducing both timing and counterparty risk. These risks are mitigated through contractual safeguards, active participation at the board level, and diversification of revenue streams across geographies, technologies, and counterparties to reduce dependency and enhance financial resilience.

First quarter report 2026

Letter from the CEO