Endúr (ENDUR) Q2 2024 earnings summary

Executive summary

• Achieved strong financial performance in Q2 and H1 2024, with adjusted EBITDA up 6% year-over-year to NOK 97.5 million in Q2 and H1 adjusted EBITDA of NOK 164.5 million (+28%).

• Revenue for H1 2024 was NOK 1,267.6 million, up 23% year-over-year; Q2 2024 revenue was NOK 691.8 million, down 4% year-over-year but up 27% vs. Q2 2023 in another source.

• Major increase in backlog, reaching NOK 3.0 billion as of June 30, 2024, driven by strong order intake and Salmon Evolution phase 2 FID.

• Robust liquidity with NOK 221 million available and cash flow from operations of NOK 153.3 million in H1 2024.

• Initiated a share buyback program up to NOK 50 million, to be completed by February 2026.

Financial highlights

• Adjusted EBITDA margin improved to 14.1% in Q2 2024 and 13.0% for H1 2024.

• EBT was positive at NOK 23 million in Q2; H1 2024 net income was NOK 11.9 million, up from a loss of NOK 28.0 million in H1 2023.

• Cash at bank stood at NOK 71 million, with total available liquidity of NOK 221 million.

• Net interest-bearing debt was NOK 909 million; equity ratio at 40.5%–40.6%.

• Leverage ratio at 2.4, well within covenant limits.

Outlook and guidance

• Strong backlog and high tender activity across all segments support attractive growth prospects.

• Norwegian and Swedish infrastructure and aquaculture markets expected to see increased investments, supported by the National Transport Plan.

• Exponential growth anticipated from land-based fish-farming investments.

• Targeting annualized group revenue of NOK 4 billion by end of 2025, through organic growth and M&A.

• Expects significant revenue growth into 2025 and beyond, supported by market trends and new project wins.