AF Gruppen (AFG) Q3 2024 earnings summary

Executive summary

• Revenue in Q3 2024 rose to NOK 7,204 million from NOK 6,907 million, with strong Civil Engineering and Energy and Environment performance, while Construction and Sweden declined.

• Earnings before tax increased to NOK 289 million from NOK 103 million, and net income reached NOK 222 million, up from NOK 78 million.

• Order intake was NOK 5,393 million, with an order backlog of NOK 36,442 million at quarter-end.

• Year-to-date revenue was NOK 22,043 million, slightly down from NOK 22,152 million, but earnings before tax rose to NOK 496 million from NOK 408 million.

• Net interest-bearing debt reduced to NOK 780 million from NOK 1,381 million year-over-year.

Financial highlights

• EBIT for Q3 was NOK 304 million, up from NOK 128 million; year-to-date EBIT was NOK 542 million.

• EBITDA for Q3 was NOK 489 million, with an EBITDA margin of 6.8% (Q3 2023: 3.9%).

• Cash flow from operations in Q3 was NOK 348 million, year-to-date NOK 1,137 million.

• Net cash and cash equivalents at period end were NOK 522 million.

• Equity ratio was 19.4% at quarter-end, or 20.5% excluding IFRS 16 effects.

Outlook and guidance

• High interest rates and inflation continue to impact construction markets, reducing profitability and investment appetite.

• Civil engineering market expected to see moderate growth in 2025–2026; construction may recover with new hospital projects and interest rate cuts.

• Energy efficiency and environmental services to benefit from government initiatives and high electricity prices.

• Offshore recycling and decommissioning demand remains strong, with new contracts and a solid North Sea position.

• Demand for concrete expected to remain high, with ongoing innovation and focus on eco-friendly solutions.