Borgestad (BOR) Q4 2024 earnings summary

Executive summary

• 2024 marked a transformational year with profit before tax of MNOK 82.3, up from a loss of MNOK 37.3 in 2023, and a proposed NOK 0.80 per share dividend for the first time since 2011.

• Both main segments—refractory and real estate—showed strong operational improvements and momentum, with Agora Bytom achieving high occupancy and tenant revenue growth, and Höganäs Borgestad reaching its 2025 EBIT margin target early.

• Record-high EBIT and a significant reduction in net interest-bearing debt reflected a robust financial position.

• Board proposes a NOK 0.80 per share dividend for 2024, based on strong operational cash flow and asset sales.

Financial highlights

• Full-year revenue increased by 2.5% to MNOK 1,169, with Q4 revenue up 7.1% year-over-year.

• Adjusted EBITDA rose by MNOK 58.0 from 2023 to 2024, mainly from refractory improvements.

• Net financials improved by MNOK 20.8 due to reduced debt and lower interest payments.

• Net cash flow for 2024 was positive at MNOK 67.8; operational cash flow reached MNOK 146.0; available liquidity at year-end was MNOK 276.0.

• Net interest-bearing debt reduced to MNOK 227.5 from MNOK 307.3; total interest-bearing debt at MNOK 447.9.

Outlook and guidance

• Continued operational improvements and profitability gains expected in 2025 for both segments, with cost-cutting and efficiency measures planned.

• Moderate increases in revenue and EBITDA anticipated, with strategic M&A and liquidity events for Agora Bytom and add-on acquisitions for Höganäs Borgestad prioritized.

• Midterm EBIT margin target of 10% for the refractory business, with ongoing initiatives to achieve this.