Norconsult (NORCO) Q3 2024 earnings summary

Executive summary

• Achieved solid growth and improved profitability in Q3 2024, with net revenue up 13% to NOK 1,924 million and adjusted EBITA/EBITDA margin rising to 8.6% year-over-year, driven by higher billing rates and increased FTEs.

• Maintained a stable market position despite macroeconomic uncertainty, with strong demand in public and energy sectors offsetting private sector weakness.

• Employee count increased to approximately 6,500, with continued focus on recruitment, retention, and HR development; recognized as a top employer.

• Recognized for employer attractiveness and awarded for innovative projects, including major infrastructure and renewable energy initiatives.

• Marisa Ruiz Retamar appointed EVP Human Resources, joining Group Management from October 2024.

Financial highlights

• Net revenue/income after external project costs grew to NOK 1,924 million (up from NOK 1,705 million), with 11% organic growth adjusted for calendar effects.

• Adjusted EBITA/EBITDA reached NOK 162 million (NOK 108 million last year), margin 8.6% (6.4%).

• Net profit for Q3 2024 was NOK 53 million, down from NOK 80 million, mainly due to NOK 83 million in employee share program expenses.

• Cash flow from operations was NOK -126 million in Q3, impacted by working capital, but YTD cash flow from operations was NOK 559 million.

• Cash and equivalents plus other current financial assets totaled NOK 815 million at quarter end, with no drawings under credit facilities.

• Order book at NOK 6.3 billion, stable from previous quarter.

Outlook and guidance

• Market expected to remain stable but uncertain due to macroeconomic and political factors, with public sector demand providing resilience.

• Small signs of improvement in Buildings & Architecture; infrastructure demand stable but shifting to more, smaller projects.

• Energy sector activity remains strong; industry performance mixed by geography and sector.

• Continued focus on cost management, efficiency, and proactive profitability measures to offset inflation.

• Calendar effect in Q4 expected to be around NOK -16 million.