Hafnarfjörður's half-year accounts for the first six months of 2026

 Operating results for the first 6 months of the year

The operating result for the Hafnarfjörður Municipality Group, Part A and B, was a loss of 1,907 million krónur in the first half of 2026, whereas the budget had provided for a profit of 887 million krónur. The group's operating result before depreciation and financial items (EBITDA) amounted to 1,478 m.kr., which is 2,192 m.kr. below the forecast. Operating cash flow amounted to 1,180 m.kr. at the end of June, which is 176 m.kr. below the forecast.

The operating result for Section A of Hafnarfjörður Municipality was a negative 2,360 m.kr. in the first six months, whereas the plan had provided for a 435 m.kr. profit.  Operating profit before depreciation and financial items (EBITDA) for Section A was positive at 335 m.kr., which is 2,305 m.kr. below forecast. Operating working capital in Section A amounted to 58 m.kr. at the end of June, which is 344 m.kr. below forecast.

The worse operating result is largely due to variances in development charges, higher operating costs, and higher inflation than was budgeted for.

Total assets of Parts A and B, according to the balance sheet as at 30 June 2026, amounted to SEK 111.3 billion, and liabilities and commitments to SEK 75.3 billion. Equity was SEK 36.0 billion and the group's equity ratio 32.41%.

Thórður Thórðarson, Mayor: „The results for the first half of the year are below forecasts. We have begun a targeted programme to address this situation and we expect a good outcome from these measures.

The operating environment for local authorities has become more challenging in recent years. The takeover of expensive service areas has proven to be demanding, and managing them has been more difficult than planned. This includes important services for disabled people with long-term support needs, while education is also over budget. It is clear that current collective agreements have an impact on this, and there are considerable challenges ahead. We will demonstrate responsibility in our operations and financial management, whilst also safeguarding the continued provision of good services to the residents of Hafnarfjörður.

The town responded to the changed and worsening outlook as early as the summer by commissioning administrative and financial reviews of its operations. The results of that work will be available shortly and will be an important input into decisions on necessary austerity measures, improved use of funds and sound future management.

Hafnarfjörður also changed its rules on the collection of building rights fees, and house builders are now given the opportunity to spread the payments over up to two years. This was done in response to the situation in the construction market.  As in most local authorities, the town's revenue from plot fees has decreased alongside reduced activity. The measures have already resulted in an increased number of contracts in recent weeks. Capital items are a heavy burden at this high interest rate and inflation level. Everyone has a great deal at stake in this struggle succeeding as soon as possible.

We will meet these challenges with resolve and ensure that Hafnarfjörður remains a strong and desirable municipality for people and businesses.“

The interim financial statement of the City of Hafnarfjörður, January to June 2026, was submitted to the Town Council on 17 September. The interim financial statement is unaudited and unaudited, and is available on the City of Hafnarfjörður's website, www.hafnarfjordur.is.