AKVA Group (AKVA) Q2 2024 earnings summary

Executive summary

• Achieved record high Q2 2024 revenue of NOK 1,014 million, up 8% year-over-year, marking the best second quarter in company history, driven by Sea Based segment and Nordic market momentum.

• EBITDA reached NOK 110 million and EBIT NOK 63 million in Q2 2024, both up from Q2 2023, with EBIT increasing 66% year-over-year.

• Completed acquisition of 100% of Observe Technologies, fully integrating digital solutions and enhancing automation capabilities.

• Sea Based segment drove growth, while Land Based experienced a soft market and lower revenue.

• Order intake for H1 2024 was NOK 888 million, with sea-based at NOK 713 million and land-based at NOK 149 million, showing progress in land-based compared to previous quarters, but overall order intake and backlog declined year-over-year.

Financial highlights

• Q2 2024 revenue: NOK 1,014 million (Q2 2023: NOK 940 million); H1 2024 revenue: NOK 1,799 million.

• Q2 2024 EBITDA margin: 10.8%, driven by a strong 12.6% margin in sea-based; land-based margins remained low due to soft activity.

• Net income for Q2 2024: NOK 26 million; EPS: NOK 0.73.

• Net interest-bearing debt at NOK 1,268 million at Q2 2024, up from NOK 1,123 million year-over-year.

• CapEx for Q2 2024 was NOK 33 million, with NOK 17 million allocated to innovation agendas.

Outlook and guidance

• Maintaining 2024 revenue guidance of at least NOK 3.6 billion and EBIT margin of 4%-5%.

• Long-term guidance targets minimum 10% year-on-year growth, with sea-based at 5%, land-based at 30%, and digital at 10%-20% for 2025.

• Margins expected to improve gradually through 2024 and into 2025, with normalization in the post-smolt market anticipated by year-end.

• No dividend for H2 2024; reassessment planned for H1 2025.

• Continued investment in Sea Based, Digital, and Land Based Technology segments.