Goodtech (GOD) Q3 2024 earnings summary

Executive summary

• Net operating revenue after external project costs was 107 MNOK in Q3 2024, up 1% year-over-year, despite seasonal weakness.

• Order backlog increased 5% to 397 MNOK, driven by large contract wins and service agreements.

• EBITDA for Q3 2024 was 2.1 MNOK (2.0% margin), down from 7.7 MNOK (7.3%) in Q3 2023, mainly due to loss-making Swedish MES projects and lower staff utilization.

• EBIT was -5.4 MNOK (-5.1% margin) for the quarter.

• No absence injuries reported in the last 12 months; sick leave at 3.7%.

Financial highlights

• Total revenue declined 31% year-over-year to 147.8 MNOK, but net operating revenue after external project costs remained stable (+1%).

• Other operating expenses reduced from 24 MNOK in Q3 2023 to 15 MNOK in Q3 2024.

• Salaries and personnel costs rose to 89.9 MNOK, reflecting a 17% increase in employees to 350.

• Cash and cash equivalents stood at 106 MNOK at quarter-end; equity ratio at 53%.

• Cash flow from operations was -6.5 MNOK, down from 13.9 MNOK in Q3 2023.

Outlook and guidance

• Investments in aftermarket services and digitalization are expected to drive more stable and recurring revenue streams.

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

• Ongoing margin improvement initiatives and cost reductions continue.

• MES rollout in Sweden expected to impact Q4 2024, but at a lesser degree.

• Nordic industry trends and high energy prices support further growth opportunities.