AKVA Group (AKVA) Q1 2025 earnings summary

Executive summary

• Achieved record high Q1 revenue of NOK 1,013 million, up 29% year-over-year, with strong order intake of NOK 1.2 billion and EBIT of NOK 57 million, supported by major contracts and improved project margins.

• Sale of shares in Abyss Group generated net proceeds of NOK 144 million and a net gain of NOK 12 million, positively impacting profit.

• Order backlog stands at NOK 2.8 billion, providing a solid foundation for activity in the coming quarters.

• Focused on further development and implementation of Nautilus deep farming solutions, with strong customer momentum.

• Profitability improved significantly, with net profit of NOK 42 million and EPS at NOK 1.16.

Financial highlights

• EBITDA reached NOK 113 million, with margin improved to 11.1% from 8.6% year-over-year, driven by higher revenue and improved project margins.

• Net financial costs were NOK 12 million, positively impacted by an NOK 8 million increase in market value of Nordic Aqua Partners investment.

• Net interest-bearing debt reduced to NOK 1,230 million, with leverage ratio at 2.47, well below the covenant threshold of 4.5.

• Available cash, including facilities, was NOK 500 million at quarter-end, up from NOK 353 million year-end.

• Dividend of NOK 1 per share paid in April 2025.

Outlook and guidance

• Revenue guidance for 2025 is NOK 4 billion, representing 15% growth year-over-year, with minimum EBIT margin of 6%.

• Medium-term goals include organic topline growth of at least 10% year-over-year and ROACE of minimum 10% by end of 2025.

• Strong momentum expected for deep farming, especially in Norway, with potential for adaptation in Chile.

• Post-smolt market in Norway expected to normalize gradually.

• Continued investment and improvement across all business segments.