Nordisk Bergteknik (NORB) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 increased by 2% to SEK 873.9 million, with organic growth of 3%; H1 net sales rose 6% to SEK 1,701.5 million, reversing prior negative trends.

• Adjusted EBIT for Q2 2025 was SEK 38.0 million (margin 4.4%), down from SEK 48.1 million (5.6%) last year, due to project mix and market conditions.

• Strong demand in Rock Sweden, cautious market in Rock Norway, and lower volumes in Foundation Sweden.

• Cash flow from operating activities improved significantly in Q2 to SEK 99.3 million, despite lower profit.

• New projects worth over SEK 1 billion were secured, with increased demand for large infrastructure and defense-related assignments.

Financial highlights

• Adjusted EBITDA for Q2 2025 was SEK 119.0 million (margin 13.6%), down from 15.3% last year; H1 EBITDA margin was 12.7%.

• Adjusted cash flow from operating activities rose to SEK 101 million from SEK 36 million year-over-year.

• Net debt at period end was SEK 1,502 million; net debt/adjusted EBITDA ratio at 3.5x, slightly improved from 3.6x last year.

• Cash and cash equivalents stood at SEK 33 million, with SEK 233 million in unused credit facilities.

• Q2 profit for the period was SEK 18.9 million; H1 profit was SEK 15.6 million, with EPS of SEK 0.33 and SEK 0.27, respectively.

Outlook and guidance

• Continued strong demand in infrastructure, mining, and maintenance services, with market activity expected to gradually improve.

• Positive long-term outlook driven by infrastructure investment needs, public sector demand, and interest rate cuts.

• Strategy includes further M&A, vertical integration, and geographical expansion.

• Financial targets: >15% annual net sales growth, 7% adjusted EBIT margin, net debt/EBITDA <2.5x, and 40% dividend payout.

• The company aims to reduce net debt and deliver on long-term financial targets as the market normalizes.