Norconsult (NORCO) Q1 2025 earnings summary

Executive summary

• Net revenue grew 12% year-over-year to NOK 2,637 million, with 5% organic growth after adjusting for calendar effects, supported by increased headcount and higher billing rates.

• Adjusted EBITA rose to NOK 335 million from NOK 227 million, with a reported margin of 12.7% and an underlying margin of 8.5% (down from 9.6%).

• Order book increased to NOK 7.0 billion, up from NOK 6.4 billion at year-end, reflecting strong project intake and market improvement.

• Workforce reached 6,600 employees, up from 6,300, partly due to the acquisition and integration of 115 Sigma Civil employees in Sweden.

Financial highlights

• Net revenue: NOK 2,637 million (up from NOK 2,360 million), with a NOK 122 million positive calendar effect.

• Profit after tax: NOK 257 million (up from NOK 103 million), with last year including NOK 77 million in gift share costs.

• Cash flow from operations: NOK -53 million, mainly due to increased working capital and seasonal effects.

• Cash and cash equivalents: NOK 1,399 million at quarter-end; no interest-bearing debt or a net cash position.

• EPS was NOK 0.85 (Q1 2024: NOK 0.36).

Outlook and guidance

• Market expected to remain stable, with some optimism in private buildings and architecture, especially in Denmark, but continued uncertainty from international political and macroeconomic factors.

• Infrastructure demand remains steady; energy sector, particularly hydropower, continues to be strong.

• Proactive measures planned to improve profitability and maintain efficiency.