Cambi (CAMBI) Q1 2025 earnings summary

Executive summary

• Revenue increased 4% year-over-year to NOK 225 million in Q1 2025, but EBITDA dropped significantly due to higher operational costs, project delays, and negative currency effects.

• Order intake was NOK 170 million, down from NOK 401 million in Q1 2024, with an order backlog of NOK 1.2 billion, providing strong visibility into 2025 and 2026.

• Four new contracts were secured, including first market entry in India, new projects in Spain, Norway, and Denmark, and the first long-term service agreement outside the UK.

• Strategic investments in R&D, sales, marketing, and organizational capacity were made to support larger, more complex projects and future growth.

• The company is exiting the retail soil business to focus on core biosolids and garden waste activities.

Financial highlights

• Revenue: NOK 225 million, up from NOK 216 million in Q1 2024.

• EBITDA: NOK 14 million, down from NOK 68 million in Q1 2024, mainly due to higher costs and currency impacts.

• Gross margin: 47%, down from 53% year-over-year, impacted by currency effects and higher costs.

• Operating expenses: NOK 92 million, up from NOK 78 million last year, reflecting targeted investments.

• Negative operating cash flow due to delayed milestone payments; significant payments expected in coming quarters.

• No long-term debt; bank deposits at NOK 100 million at quarter-end.

Outlook and guidance

• Delays in project execution in Q1 are expected to be recovered in the following quarters of 2025.

• More than half of the Q1 backlog expected to convert to revenue in 2025, one-third in 2026.

• Revenue dip possible in 2026 if order intake remains limited, but confidence in pipeline and future awards.

• Market drivers remain strong: high energy prices, regulatory pressure, and nutrient recovery importance.

• Uncertainty persists around UK water sector investment cycles and US import tariffs, though steel tariffs on UK exports have been waived.