Norconsult (NORCO) Q2 2025 earnings summary

Executive summary

• Achieved solid growth and stable profitability in Q2 and H1 2025, with 6% organic revenue growth after adjusting for calendar effects and stable margins, supported by robust market and significant project wins such as NRK's new head office and media house in Oslo.

• Announced and completed the acquisition of Aas-Jakobsen Group, the largest in company history, strengthening infrastructure and complex project capabilities.

• Order book increased to NOK 7.1 billion, reflecting robust project intake and providing a strong outlook for H2.

• Maintained a balanced customer base between public and private sectors, with business spread across buildings, infrastructure, energy, and industry.

• Employee engagement remains high, with 66% participating in the share program, aligning interests between staff and shareholders.

Financial highlights

• Q2 2025 net revenues rose to NOK 2,468 million (up from NOK 2,399 million), with organic growth of 6% after adjusting for calendar effects.

• Adjusted EBITA/EBITDA for Q2 was NOK 152 million, with an adjusted margin of 11.2% (up from 11.0%); profit after tax for Q2 was NOK 114 million (down from NOK 138 million last year).

• H1 2025 net revenues reached NOK 5,105 million, adjusted EBITA/EBITDA at NOK 487 million, and adjusted margin at 9.9%.

• EPS for H1 was NOK 1.23 (up from NOK 0.85); Q2 EPS was NOK 0.37 (down from NOK 0.48).

• Order book at NOK 7.1 billion, providing a strong outlook.

Outlook and guidance

• Market conditions remain stable, with optimism in private Buildings & Architecture and continued strength in public and defense sectors.

• Infrastructure and energy markets are robust, especially in hydropower and transmission.

• Geopolitical uncertainty and international political risks may delay investments and impact demand in some industry segments.

• Continued focus on improving profitability and efficiency in selected business areas; no specific guidance on future billing ratios.

• No significant price pressure observed in new project pricing; index adjustments for multi-year contracts are lower than last year.