Arribatec Group (ARR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was NOK 130 million, down 1.7% year-over-year; EBITDA was NOK -4.0 million, a significant decline from last year.

• Cash at quarter-end was NOK 18 million, well below the NOK 30–40 million range of previous quarters.

• Announced a comprehensive financial restructuring plan, including credit facility extensions and a proposed NOK 35 million rights issue.

• Signed a NOK 19 million frame agreement with Forsvarsmateriell and a NOK 9 million ERP project.

• Net loss after tax for Q3 2024 was NOK -14.9 million.

Financial highlights

• Recurring revenue reached NOK 63 million, 49% of total revenue, up from 41% a year ago.

• Cash EBITDA for the quarter was NOK -10 million.

• Net cash from operations was NOK -5 million; net working capital contributed NOK 17 million.

• Gross margin was 73.6%, down from 75.9% last year.

• Total balance sheet value at quarter-end was NOK 478 million; equity ratio at 48.6%.

Outlook and guidance

• Focus will shift to profitability improvement, cost reductions, and utilization across all business areas.

• Robust demand is seen for Cloud, EA & BPM, and Business Services, expected to support margin improvement in 2025.

• Orbus partnership expected to accelerate EA & BPM growth outside Norway and in the Nordics.

• Increased demand and new projects expected to continue into 2025.