Nordic Group (MR7) H2 2024 earnings summary

Executive summary

• FY2024 net profit rose 10% to S$17.5m as revenue edged down 1% to S$158.4m; 2H net profit climbed 53% to S$9.0m.

• Stronger 2H followed 1H order-book replenishment; the S$201.6m year-end order book included 58% from Maintenance Services.

• Greater emphasis on Maintenance Services aims to build recurring income and mitigate cyclical risks.

Financial highlights

• FY2024 revenue was S$158.4m versus S$160.6m in FY23; gross profit increased 1% to S$36.7m.

• Net profit rose to S$17.5m from S$16.0m; FY2024 net profit margin increased 1.2 ppts to 11.1%.

• EBITDA increased 4% to S$28.6m from S$27.5m; FY2024 EBITDA margin rose 0.9 ppts to 18.0%.

• 2H2024 revenue rose 15% to S$82.2m and gross profit rose 33% to S$19.1m; EBITDA increased 17% to S$14.5m.

• FY2024 EPS was 4.4 cents versus 4.0 cents; NAV per share was 32.5 cents versus 29.4 cents.

Outlook and guidance

• Priorities include winning more maintenance contracts, prudent cost and risk management, and pursuing growth opportunities including M&A.

• Near-term results may face pressure from large project completions and longer tenures of new projects over the next 12 months.