Nordisk Bergteknik (NORB) Q3 2024 earnings summary

Executive summary

• Net sales for Q3 2024 decreased by 3% year-over-year to SEK 799m, with organic growth at -2%; Jan–Sep 2024 net sales fell 9% to SEK 2,408.4m and organic growth was -10%.

• Adjusted EBIT margin for Q3 2024 was stable at 2.1%; Jan–Sep adjusted EBIT margin was 3.7%, down from 5.4% year-over-year.

• Rock Sweden and Foundation Sweden saw stronger market activity and more large projects, while Rock Norway continued to face low market activity.

• The business remains diversified, with a large project portfolio and limited exposure to fixed-price contracts, reducing risk.

• No acquisitions were completed in 2024, but the company maintains a disciplined M&A strategy and flexible operations.

Financial highlights

• Adjusted EBITDA for Q3 2024 was SEK 98m, with a margin of 12.3%; Jan–Sep 2024 EBITDA margin was 13.8%.

• Adjusted cash flow from operating activities improved to SEK 64m in Q3 and SEK 148.6m for Jan–Sep 2024.

• Net debt at period end was SEK 1,578m, with a net debt/adjusted EBITDA ratio of 3.6x, above the long-term target of 2.5x.

• Cash and cash equivalents stood at SEK 13m, with available liquidity (including unused facilities) at SEK 245m.

• Items affecting comparability for Jan–Sep 2024 were SEK -4.0m, mainly restructuring and acquisition-related costs.

Outlook and guidance

• Long-term market outlook remains positive, driven by infrastructure investment needs and the green transition.

• Organic growth has slowed due to the current market climate, but continued growth is expected through synergies, M&A, and geographic expansion.

• The company targets annual net sales growth above 15% over a business cycle and an adjusted EBIT margin of 7% medium-term.

• Net debt/adjusted EBITDA is targeted below 2.5x, though it may temporarily exceed this in connection with acquisitions.

• Management expects continued challenges in housing construction and local infrastructure, but sees long-term demand in mining and infrastructure projects.