Norbit (NORBT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues were NOK 419 million, with EBIT of NOK 102 million and a 24% margin, marking a rebound from Q1 and matching Q2 2023.

• H1 2024 revenues reached NOK 829 million, up 4% year-over-year, with EBIT of NOK 143 million and a 17% margin.

• Oceans and Product Innovation and Realization (PIR) segments showed strong growth, while Connectivity declined due to lower OBU sales.

• Strategic milestones included the acquisition of Innomar for EUR 39.7–40.5 million, expanding technology and market reach.

• NOK 200 million private placement and NOK 160 million Connectivity contract with Toll4Europe secured.

Financial highlights

• Q2 EBITDA was NOK 131.9 million (31% margin), up from NOK 127.2 million (30%) in Q2 2023.

• Net income for Q2 was NOK 72.1 million; net finance expenses were NOK 8.5 million.

• Q2 gross margin improved to 61% (from 60%); H1 gross margin was 57% (down from 60%).

• Cash flow from operations was NOK 149.5 million in Q2 and NOK 203.4 million in H1, with significant inventory reduction and improved working capital.

• Dividend of NOK 2.55 per share (NOK 152.9 million) paid in May.

Outlook and guidance

• 2024 revenue guidance reiterated at NOK 1.7–1.8 billion, with expectations to be at the lower end; EBIT margin to remain in line with 2023.

• Oceans and PIR segments expected to drive growth in 2024; Connectivity to see sequential revenue increase in Q3.

• Q3 Oceans expected to grow year-over-year, excluding Innomar; Connectivity and PIR Q3 revenues guided at NOK 120–130 million each.

• 2027 ambition targets NOK 2.75 billion in revenues and 20% EBIT margin, with a 30% ROCE.

• Guidance excludes contribution from Innomar acquisition.