Borgestad (BOR) Q3 2024 earnings summary

Executive summary

• Q3 2024 profit before tax reached NOK 44.1 million, a turnaround from NOK -29.4 million in Q3 2023, driven by operational improvements, especially in the refractory segment, and stable real estate performance.

• Net income for Q3 2024 was NOK 32.5 million, compared to a loss of NOK 46.5 million in Q3 2023.

• Both business segments—real estate (Agora Bytom) and refractory—contributed positively, with no one-off gains or asset sales impacting results.

• The company maintains a strategy to monetize both segments, with proceeds intended for dividends and future investments.

• Strengthened balance sheet and liquidity, with available liquidity at NOK 161.6 million at period end.

Financial highlights

• Q3 2024 revenue was NOK 359.8 million, down from NOK 372.4 million in Q3 2023; LTM revenue at NOK 1,153 million.

• Group EBITDA for the quarter was NOK 63.3 million, with last year's Q3 including a NOK 46.4 million extraordinary gain.

• Refractory business achieved a record-high Q3 EBIT margin of 13.4% and a year-to-date increase of 5.7% in EBIT margin.

• Agora Bytom's EBITDA margin improved to 53% in Q3 2024, with EBITDA up NOK 2.3 million year-over-year.

• Net interest-bearing debt reduced to NOK 352.3 million as of 30.09.24, down from NOK 689.7 million a year earlier.

Outlook and guidance

• Expectation of continued operational improvements, though future gains may be more gradual.

• Fourth quarter is seasonally slower for refractory, but full-year 2024 is projected to be strong.

• First dividend payout in recent years likely in 2025, based on 2024 performance.

• Midterm EBIT margin target for refractory is 10%, with a long-term ambition of 13–15%.

• Exploring transformational M&A and liquidity events for Agora Bytom.