Nordisk Bergteknik (NORB) Q1 2025 earnings summary

Executive summary

• Net sales rose 10% year-over-year to SEK 828m in Q1 2025, with organic growth of 11% driven by Foundation Sweden.

• Adjusted EBIT was SEK 20.8m, margin 2.5%, down from 3.2% last year; operating profit (EBIT) was SEK 18.3m.

• Largest order to date received: SEK 500m for a Swedish infrastructure project.

• Foundation Sweden saw significantly higher demand; Rock Sweden benefited from infrastructure and mining, while Rock Norway remained cautious.

• The business model emphasizes diversification, operational synergies, and a high entry barrier, with a project portfolio of ~1,500 annually and less than 10% turnover from large projects.

Financial highlights

• EBITDA was SEK 99.4m (margin 12.0%), down from SEK 105.2m (14.0%) year-over-year.

• Adjusted cash flow from operating activities was SEK -27m, compared to SEK 52m in Q1 2024, due to capital tied up in project starts.

• Net debt stood at SEK 1,541m, with a net debt/EBITDA ratio of 3.5x; cash and equivalents were SEK 13m.

• Earnings per share were SEK -0.06, up from SEK -0.26 year-over-year.

• Equity/asset ratio was 35.6%, up from 34.1% last year.

Outlook and guidance

• Management is positive for the rest of 2025, citing a strong order book and several large project starts.

• Foundation Sweden and Rock Sweden expected to benefit from increased market activity and defense investments.

• Organic growth is expected to continue, though the current market climate has slowed both organic and M&A-driven expansion.

• Long-term targets: annual growth >15%, adjusted EBIT margin >7%, net debt/adjusted EBITDA LTM ≤2.5x.

• Long-term market growth is anticipated, with further upside from synergies and efficiency initiatives.