Arribatec Group (ARR) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of NOK 146.4 million, up 15.4% year-over-year, reflecting progress in turnaround strategy, divestments, and focus on core business areas.

• EBITDA improved to NOK 11.9 million from negative NOK 3.1 million in Q1 2024, with an EBITDA margin of 8.1% versus negative 2.5% last year.

• Organization streamlined to around 249–250 employees focused on three core business areas after divesting Marine and Hospitality.

• Divestment of Marine and Hospitality segments completed, with equity valuations of NOK 12.5 million and NOK 25 million, respectively.

• Net profit from continuing operations was NOK 2.6 million, compared to a loss of NOK 10.3 million in Q1 2024.

Financial highlights

• Recurring revenue grew 20% year-over-year to NOK 66 million, representing 45% of total revenue.

• Cash position at quarter-end was NOK 65.3 million, up from NOK 23.1 million at year-end 2024.

• Net cash flow from operations was NOK 11 million; investing activities contributed NOK 30 million, mainly from divestments.

• Share issue raised NOK 41 million, further strengthening the capital base.

• Consulting revenue increased 16% to NOK 75.5 million, with growth across all regions.

Outlook and guidance

• Turnaround largely completed with focus on profitable, simplified operations and lower fixed costs from a new, smaller head office effective May.

• Ongoing large-scale ERP projects and new cloud initiatives expected to drive growth through 2025 and beyond.

• Weighted sales pipeline stands at NOK 463 million, with NOK 130 million in new contracts signed in Q1, up 21% year-over-year.