Goodtech (GOD) Q1 2025 earnings summary

Executive summary

• Net operating revenue after external project costs rose 14% year-over-year to 136.8 MNOK, with a 23% increase in order backlog to 340 MNOK.

• EBITDA improved 28% to 15.2 MNOK (11.1% margin), and EBIT increased 45% to 9.0 MNOK (6.6% margin) compared to Q1 2024.

• Discontinued operations in Sweden and Finland resulted in total losses of 8.9 MNOK, impacting both continued and discontinued results.

• No lost-time injuries in the last 12 months; sick leave stable at 3.9%.

• Equity ratio at 51% and cash & cash equivalents at 95 MNOK, reflecting a robust capital structure.

Financial highlights

• Total revenue declined 5% year-over-year due to a lower share of external project costs, but net operating revenue after external project costs increased 14%.

• EBITDA margin improved to 11.1% from 9.9% year-over-year; EBIT margin rose to 6.6% from 5.2%.

• Personnel costs increased 8.5% due to headcount growth; other operating expenses rose partly from losses on receivables linked to insolvency in Sweden.

• Net financial items were -1.6 MNOK, affected by currency swings.

• Cash flow from operating activities was -4.3 MNOK, a significant improvement from -68.0 MNOK in Q1 2024.

Outlook and guidance

• Positioned for further growth in automation, robotisation, and digitalisation, with a strong order backlog and high activity across business areas.

• Macro factors such as inflation and wage increases are being monitored; high energy prices and sustainability focus are positive for order intake.

• Order backlog diversified across customers and segments, with projects ranging from short-term to mid-2026 completion.