Nordisk Bergteknik (NORB) Q3 2025 earnings summary

Executive summary

• Operates in the Nordic market, focusing on mining, infrastructure, and construction, with about 1,000 employees and 18 operational companies.

• Achieved continued organic growth in Q3 2025, primarily driven by strong performance in the Norwegian market and stable activity in Sweden's rock segment.

• 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

• Net sales increased by 5% year-over-year to SEK 838.0 million in Q3 2025; organic growth was 6%.

• Adjusted EBIT rose to SEK 30.2 million (from SEK 16.5 million), with an adjusted EBIT margin of 3.6% (up from 2.1%).

• Adjusted EBITDA margin remained stable at 12.7%.

• 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; cash and cash equivalents at SEK 8 million.

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.

• Expects continued strong demand in mining and infrastructure for years ahead, with plans to strengthen the mining segment offering.

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