AF Gruppen (AFG) Q1 2025 earnings summary

Executive summary

• Revenue reached NOK 7,129 million in Q1 2025, slightly down from NOK 7,187 million year-over-year, with improved profit margin at 3.0% (2.6%).

• Earnings before tax increased to NOK 214 million from NOK 186 million year-over-year.

• Order intake more than doubled to NOK 11,010 million, driving order backlog to NOK 44,232 million.

• Cash flow from operations improved to NOK 330 million from NOK 128 million year-over-year.

• NOK 100 million in termination costs in Civil Engineering due to a disputed contract in Sweden.

Financial highlights

• EBIT for Q1 2025 was NOK 223 million, up from NOK 201 million in Q1 2024.

• EBITDA was NOK 406 million (NOK 357 million), EBITDA margin 5.7% (5.0%).

• Return on capital employed reached 25.6%, exceeding the 20% target.

• Equity ratio (excluding IFRS 16) was 25.5% as of 31 March 2025.

• Available liquidity was NOK 4,496 million, including financial facilities.

Outlook and guidance

• Strategic focus on safety, profitability (7% EBIT margin, 20% return, 7% annual growth), and halving climate footprint by 2028/2030.

• Emphasis on leadership, expertise, innovation, and productivity to drive future growth.

• Macroeconomic uncertainty, high interest rates, and inflation continue to impact operations in Norway and Sweden.

• Civil engineering market expected to see moderate growth, while construction faces headwinds from high financing costs and material prices.

• Energy efficiency and environmental services expected to benefit from regulatory support and market demand.