Nordisk Bergteknik (NORB) Q3 2025 earnings summary

Executive summary

• Net sales increased by 5% to SEK 838.0 million in Q3 2025, with organic growth of 6%, primarily driven by strong performance in Norway and stable activity in Sweden's rock segment.

• Adjusted EBIT margin improved to 3.6% in Q3, supported by restructuring and efficiency measures, especially in Norway.

• Maintains a diversified project portfolio with high revenue diversification and limited exposure to fixed-price contracts, reducing risk.

• Operational synergies and economies of scale contribute to competitive advantages and high barriers to entry.

• Strategic cooperation agreement signed with Norwegian Oden, granting access to large projects without further tendering.

Financial highlights

• Q3 net sales: SEK 838.0 million (+5% YoY); organic growth 6%.

• Adjusted EBIT rose to SEK 30.2 million (3.6% margin); Q3 EBIT: SEK 24.1 million (2.9% margin).

• Adjusted EBITDA margin remained stable at 12.7% in Q3.

• Cash flow from operating activities was SEK -7.5 million in Q3, impacted by increased working capital from new project startups.

• Net debt/adjusted EBITDA at 3.5x.

Outlook and guidance

• Long-term market outlook remains positive, supported by infrastructure investment needs and stable demand in core segments.

• Growth strategy focuses on organic expansion, M&A, and vertical integration within the value chain.

• Ongoing start-up of major infrastructure projects expected to improve capacity utilization and profitability.

• Market activity in Norway is improving, with normalization of prices anticipated as demand rises.

• Financial targets include >15% annual net sales growth, 7% adjusted EBIT margin, and net debt/EBITDA below 2.5x over the cycle.