AKVA Group (AKVA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached NOK 936 million (adjusted), up 14.5% year-over-year, with EBIT at NOK 78 million (adjusted), marking the strongest Q3 to date and year-to-date revenue at NOK 2.7 billion and EBIT at NOK 162 million.

• Order intake in Q3 was NOK 803 million, with order backlog at NOK 2.4 billion, reflecting high activity and solid financial performance.

• Acquisition of 100% of Observe Technologies completed, resulting in a significant one-off gain and contributing to adjusted results.

• Awarded LOI for a major RAS contract in Chile with Cermaq, valued at EUR 30 million, to be booked in Q4.

• Strategic focus on innovation in deep farming, post-smolt technologies, and digital platforms, with new product launches and promising biological results.

Financial highlights

• Q3 2024 adjusted revenue was NOK 936 million, up NOK 118 million year-over-year; adjusted EBIT was NOK 78 million, NOK 49 million higher than Q3 last year.

• Q3 2024 EBITDA was NOK 128 million (adjusted), with actual EBITDA at NOK 199 million including Observe gain; net income was NOK 88 million, compared to a loss of NOK 3 million in Q3 2023.

• Year-to-date adjusted revenue was NOK 2.7 billion, with adjusted EBIT at NOK 162 million.

• Net financial costs were NOK 52 million, including a NOK 26 million loss on Nordic Aqua Partners investment.

• Cash position improved by NOK 156 million in Q3, with available cash at NOK 448 million.

Outlook and guidance

• Full-year 2024 revenue expected at NOK 3.6 billion (5% growth), with EBIT margin at 5%; 2025 guidance is NOK 4 billion revenue and minimum 6% EBIT.

• Land-based revenue for 2024 guided at NOK 600 million, with a minimum 30% increase expected in 2025.

• Digital segment targets 10-20% growth; sea-based expected at 5% growth, land-based at 30%+.

• Salmon prices expected to remain strong due to reduced supply; post-smolt market in Norway expected to normalize into 2025.

• Strong order intake and backlog support positive momentum into 2025.