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Nordecon (NCN1T) investor relations material

Nordecon Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary7 Aug, 2025

Executive summary

  • Revenue for H1 2025 was €92.6 million, down 19% year-over-year, with both Buildings and Infrastructure segments declining.

  • Net profit for H1 2025 was €471 thousand, a significant decrease from €1.8 million in H1 2024, mainly due to foreign exchange losses from the Ukrainian hryvnia.

  • Order book surged 70% year-over-year to €303.9 million as of June 30, 2025, with €172.2 million in new contracts signed.

  • The Buildings segment contributed 89% of revenue, while Infrastructure's share fell to 11%.

  • Management expects 2025 business volumes to remain at 2024 levels, focusing on cost management and productivity.

Financial highlights

  • EBITDA for H1 2025 was €3.4 million (H1 2024: €4.7 million); EBITDA margin fell to 3.7%.

  • Operating profit for H1 2025 was €2.1 million, down from €3.3 million year-over-year.

  • Gross margin for H1 2025 was 5.9% (H1 2024: 6.3%); operating margin was 2.3%.

  • Net cash inflow from operating activities was €2.95 million, down from €6.1 million in H1 2024.

  • Cash and cash equivalents at June 30, 2025 were €9.3 million, down from €12.5 million a year earlier.

Outlook and guidance

  • Strategic agenda targets at least 5% annual revenue growth and operating margin above 3%.

  • Order book supports stable business volumes for 2025, with focus on cost management and leveraging professional advantages.

  • Focus on organic growth, efficiency, digitalization, and balanced order books across segments.

  • Market remains highly competitive, with public investment expected to decline, especially in infrastructure.

  • Plans to deliver strong dividend yield and increase operating profit per employee to at least €10,000 per year.

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Frequently asked questions

Nordecon AS is an Estonian construction company engaged in a broad range of activities within the construction sector. The company specializes in the construction of both residential and non-residential buildings, including commercial and public infrastructure. Additionally, Nordecon is involved in various civil engineering projects such as road construction, utility, and water projects. The company also participates in housing development and offers general contracting and project management services. The company is headquartered in Tallinn, Estonia, and its shares are listed on the Nasdaq Tallinn.

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