Nordisk Bergteknik (NORB) Q2 2024 earnings summary

Executive summary

• Net sales for Q2 2024 decreased by 5% year-over-year to SEK 858m, with organic growth at -6%; H1 2024 net sales down 12% to SEK 1,609.5m.

• Adjusted EBIT margin declined to 5.6% from 8.2% in Q2 2023; Q2 EBIT was SEK 46.8m, H1 EBIT SEK 69.5m.

• Rock Sweden showed resilience, while Foundation Sweden and Rock Norway faced challenges from weak housing and subdued Norwegian market activity.

• Restructuring and streamlining in Rock Norway and Foundation Sweden have yielded positive outcomes.

• Framework agreement for production drilling extended in May, valued at SEK 500m.

Financial highlights

• Adjusted EBITDA for Q2 2024 was SEK 131.4m, margin 15.3%; H1 adjusted EBITDA margin 14.8%.

• Adjusted cash flow from operating activities dropped to SEK 36m from SEK 108m YoY; H1 cash flow was SEK 85.9m.

• Net debt increased to SEK 1,600m, with a debt ratio of 3.6x adjusted EBITDA LTM.

• Cash and cash equivalents at period end were SEK 28m, down from SEK 161m.

• Equity/assets ratio at 34.8% as of June 30, 2024.

Outlook and guidance

• Management expects gradual improvement as restructuring and cost adjustments take effect.

• Signs indicate the worst market conditions may be over, with continued strong demand in infrastructure, mining, and maintenance.

• Housing construction remains weak, impacting related infrastructure projects; low activity expected to persist.

• No acquisitions completed in 2024, but M&A remains a strategic focus.

• Long-term market outlook remains positive, supported by infrastructure investment pipeline.