Nordecon (NCN1T) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was €39.4m, down 15% year-over-year; gross margin stable at 4.6%.

• Operating profit fell to €191k from €386k in Q1 2024; EBITDA decreased to €858k.

• Net loss widened to €403k versus €182k loss a year earlier; EPS remained at -€0.02.

• Order book surged 43% year-over-year to €283.5m, with €111.3m in new contracts signed, mainly in infrastructure.

• Cash and cash equivalents fell to €7.4m from €16.1m a year earlier; cash flow from operations was negative €249k.

Financial highlights

• Revenue declined 14.9% year-over-year; Buildings segment down 16%, Infrastructure down 1.5%.

• Gross profit was €1.8m (Q1 2024: €2.1m); operating margin at 0.5% (Q1 2024: 0.8%).

• EBITDA margin at 2.2% (Q1 2024: 2.4%); net margin at -1.0%.

• Equity ratio improved to 22.9% from 19.1% a year ago; gearing reduced to 24.4%.

• Administrative expenses stable at €1.5m; ratio to revenue increased to 3.6%.

Outlook and guidance

• Strategic agenda targets 5% annual revenue growth and operating margin above 3%.

• Management expects 2025 business volumes to remain at 2024 levels, supported by a strong order book.

• Focus on balanced order books, digitalization, and sustainable development goals.

• Emphasis on cost management, productivity, and leveraging professional advantages.

• Operating profit per employee targeted at €10k/year; strong dividend yield planned.