Norconsult (NORCO) Q3 2024 earnings summary

Executive summary

• Achieved solid growth and improved profitability in Q3 2024, with net revenue up 13% year-over-year to NOK 1,924 million and organic growth of 11%.

• Adjusted EBITA/EBITDA margin increased to 8.6% (from 6.4%), with adjusted EBITA of NOK 162 million.

• Employee count rose to approximately 6,500, reflecting ongoing recruitment and low turnover, and the company was recognized for HR excellence and employer attractiveness.

• Public sector demand and energy markets remained robust, offsetting private sector weakness, especially in Buildings & Architecture.

• Won multiple industry awards and secured major new contracts in infrastructure, renewable energy, and environmental projects.

Financial highlights

• Net revenue increased to NOK 1,924 million from NOK 1,705 million in Q3 2023, with 11% organic growth adjusted for calendar effects.

• Adjusted EBITA/EBITDA rose to NOK 162 million (NOK 108 million last year), with an EBITA margin of 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, with YTD cash flow from operations at NOK 559 million.

• Cash and cash equivalents at quarter-end were NOK 815 million, down from NOK 1.1 billion due to dividend payout.

Outlook and guidance

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

• Buildings & Architecture shows early signs of improvement, while energy and infrastructure activity remains strong.

• Order book at NOK 6.3 billion, with a shift toward more medium and smaller projects.

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

• Lockup expiration and IPO gift shares distribution to employees in Q4.