Hav Group (HAV) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was NOK 193.2 million, with EBITDA at break-even, marking a significant improvement from previous quarters and reflecting the absence of last year's one-off gain.

• Order intake reached NOK 570 million, driving the order backlog to a record NOK 1.387 billion, up 130% from year-end 2023, with a book-to-bill ratio of 2.95.

• Major contract wins included equipment packages for Havyard Tersan, automation for Lavik-Oppedal ferries, and a significant contract for a battery package for a live fish carrier post-quarter.

• Most recent contract wins are in early phases and have yet to impact income or margins.

• The group is positioned for growth in sustainable maritime solutions, targeting NOK 1.3 billion in revenue by 2026.

Financial highlights

• Q2 2024 revenue was NOK 193.2 million, compared to NOK 200–200.3 million in Q2 2023, which included a NOK 46.9 million one-off gain.

• EBITDA for Q2 2024 was NOK 0.0 million (0.0% margin), versus NOK 63.8 million (31.8%) in Q2 2023; EBIT was NOK -3.9 million.

• Net profit for Q2 2024 was NOK -7.0 million; cash balance at quarter-end was NOK 124 million.

• Total assets increased to NOK 537.2 million, while equity fell to NOK 60.4 million, with an equity ratio of 11.2%.

• Net cash flow from operations was NOK 0.9 million in Q2, with negative NOK 28.0 million YTD 2024.

Outlook and guidance

• Revenue growth is expected in 2024, with further increases in 2025; the company targets NOK 1.3 billion in revenue by 2026.

• The largest impact from the current order backlog will be realized from 2025, especially in ship design and energy design and smart control segments.

• Focus remains on sales, capacity utilization, and efficient project execution to secure profitable margins.

• Market outlook is positive, but some investment decisions are delayed, and the project-driven business may cause periodic fluctuations.