Norconsult (NORCO) Q2 2024 earnings summary

Executive summary

• Net revenue for Q2 2024 reached NOK 2,399 million, a 14% increase year-over-year, with 7% organic growth adjusted for calendar effects and strong operational performance across most segments.

• Adjusted EBITA for Q2 was NOK 263 million, with a margin of 11.0% (5.3% adjusted for calendar effects), and net profit rose to NOK 138 million.

• Strong operating cash flow of NOK 501 million in Q2, driven by solid results and significant working capital release.

• Order book at quarter-end was NOK 6.4 billion, slightly down from Q1, with new project wins in infrastructure, energy, and public sector.

• Employee share programs were oversubscribed, with high participation and ownership levels.

Financial highlights

• Net revenue for H1 2024 was NOK 4,760 million, with 6% organic growth and an underlying EBITA margin of 10.9%.

• Adjusted EBITA for H1 was NOK 490 million, with a margin of 10.3%.

• Profit after tax for Q2 was NOK 138 million, with EPS at NOK 0.48.

• Cash and marketable securities totaled NOK 1,017 million at quarter-end; net interest-bearing debt was NOK 551 million.

• Dividend of NOK 343 million paid in Q2 2024.

Outlook and guidance

• Market outlook remains stable, with small improvements in Buildings & Architecture and continued strong energy sector activity.

• Infrastructure demand expected to remain steady, with larger projects anticipated in H2 and some delays in capital-intensive projects.

• Ongoing focus on organic and acquisition-driven growth, supported by a diversified service mix and strong public sector exposure.

• No major changes expected in billing ratio or backlog trends compared to historical patterns.