Nordisk Bergteknik (NORB) Q4 2023 earnings summary

Executive summary

• Q4 revenue fell 9% YoY to SEK 888.0m, with organic growth of -15%; adjusted EBIT was SEK 30.7m and adjusted margin 3.5%, recovering from 2.1% in Q3.

• FY revenue rose 4% to SEK 3,526.4m, but organic growth was -4%; adjusted EBIT declined to SEK 173.1m and adjusted margin to 4.9%.

Financial highlights

• Q4 reported EBIT was SEK 26.4m (SEK 78.3m) with a 3.0% margin (8.0%); adjusted EBIT was SEK 30.7m (SEK 78.6m), margin 3.5% (8.1%).

• Q4 net profit was SEK 6.4m (SEK 54.1m); EPS was SEK 0.11 (SEK 0.98). FY net profit was SEK 38.7m (SEK 149.1m); EPS SEK 0.71 (SEK 2.67).

• FY reported EBIT was SEK 133.0m (SEK 238.4m), including SEK 40.0m of comparability items (SEK 5.9m); adjusted EBIT was SEK 173.1m (SEK 244.3m).

• FY operating cash flow was SEK 291.6m (SEK 267.6m); adjusted operating cash flow was SEK 305.8m (SEK 274.2m), supported by lower capital tied up.

Outlook and guidance

• Housing construction and related local infrastructure activity are expected to remain weak in coming quarters; underlying infrastructure investment and demand for operation and maintenance services remain supportive over time.

• Demand tied to the green transition, particularly minerals, is expected to intensify over time; two major infrastructure contracts secured late in 2023 are planned for completion in 2024.