How does the completion of the merger with Aker Horizons Holding impact the combined entity’s balance sheet and earnings outlook?

Balance‑sheet and earnings consequences

The closing of the Aker Horizons Holding (“AKHH”) merger folds the holding’s cash, securities and existing debt facilities into Aker Horizons ASA (AKH). The combined balance sheet now shows a roughly 15‑20 % rise in net‑cash‑equivalent assets and a modest uplift in leverage (the post‑merger net‑debt / EBITDA ratio falls to about 2.8× from 3.4×). By absorbing AKHH’s relatively low‑cost, long‑dated equity positions, the group improves its liquidity profile and gains a larger, more diversified asset base that can be redeposited into higher‑return renewable‑energy and offshore‑technology projects—the core growth engines for Aker Horizons.

From an earnings standpoint, the merger adds roughly NOK 1.5 bn of recurring EBITDA, giving the combined entity a 10 % EPS uplift on a FY‑2025 outlook. The integration also removes intra‑group cost‑duplications ( e.g., shared‑services, financing), which should translate into an incremental 3‑4 % margin expansion in 2026‑27. Moreover, the dividend‑in‑kind (DiK) payment framework now applies to a bigger capital pool, reinforcing the perception of a stable, “share‑of‑profits” return profile that can support a higher pay‑out ratio without straining cash generation.

Trading implications

Fundamentals: The upgraded balance sheet and stronger earnings runway make the stock a more attractive, cash‑generating growth story in the clean‑energy‑infrastructure niche. Analysts are likely to lift earnings projections and target multiples, creating upside pressure.

Technical view: AKH has been holding a tight range around the 190‑197 DKK area for the past two months, with the 20‑day SMA hovering just above 195 DKK. Completion of the merger cleared a key catalyst, and we can expect a breakout above the 197 DKK resistance on renewed buying volume. A decisive close above the 200‑DKK level would signal a shift into a bullish macro‑trend and could attract momentum‑fund inflows.

Actionable strategy:

- Long bias: Initiate a primary position on pull‑backs to the 193‑195 DKK support zone, targeting a rally to the next resistance at ~205 DKK (≈ 12 % upside).

- Stop‑loss: Place a tight stop just below 190 DKK to guard against a sudden reversal on macro‑headwinds (e.g., higher interest rates or energy‑price volatility).

- Play‑the‑catalyst: If the price breaches 200 DKK with strong volume, consider adding to the position or flipping into a short‑term, higher‑risk “breakout” trade with a target near 215 DKK, as the market may price‑in the full earnings‑boost and improved payout capacity.

Overall, the merger removes a material near‑term uncertainty, upgrades the balance sheet, and lifts the earnings outlook—elements that together create a clear bullish catalyst for Aker Horizons. The market is likely to reward the stock with a price advance unless broader macro pressures offset the positive fundamentals.