Nordecon (NCN1T) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 was €147.7 million, down 17% year-over-year, mainly due to a 21% decline in the Buildings segment, while Infrastructure revenue remained stable.

• Gross profit was €9.9 million with a gross margin of 6.7%, slightly lower than the previous year's 7.1%.

• Operating profit reached €4.8 million, down from €7.0 million in the prior year; EBITDA was €6.7 million versus €9.2 million.

• Net profit for the period was €2.6 million, compared to €4.5 million in 2024, impacted by foreign exchange losses from the Ukrainian hryvnia.

• The order book increased by 41% year-over-year to €276.3 million as of 30 September 2025, with significant new contracts secured, especially in Infrastructure.

Financial highlights

• Revenue decreased by 17.4% year-over-year; net profit margin was 1.8% (down from 2.5%).

• Gross margin for the nine months was 6.7%; EBITDA margin was 4.6%.

• Return on equity was 9.2%, and return on invested capital was 7.2%.

• Equity ratio improved to 23.6%, and gearing was 15.8%.

• Current ratio stood at 0.94, indicating higher liquidity risk.

Outlook and guidance

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

• Management expects business volumes in 2025 to decrease compared to 2024, despite a strong order book, due to a highly competitive environment and slow market recovery.

• Focus on organic growth, efficient resource use, digitalization, and managing fixed costs to improve profitability.

• Plans to deliver strong dividend yield and increase operating profit per employee to at least €10,000 per year.