Norva24 Group (NORVA) Q4 2024 earnings summary

Executive summary

• Achieved 15.5% year-over-year revenue growth in Q4 2024, with currency-adjusted organic growth of 6.2% and all segments contributing positively.

• Margin improvements in Norway, Sweden, and Denmark; Germany impacted by underperformance in Jutzy.

• Strong operational cash flow and cash conversion at 90.8% for the full year, reflecting improved working capital and capital efficiency.

• Excluding underperforming Jutzy in Germany, Q4 growth was 21.5% and organic growth 11.3%.

• Continued robust M&A activity, with over 90% of acquisitions bilateral and a rich pipeline of opportunities.

Financial highlights

• Q4 2024 total operating revenue: NOK 989 million, up 15.5% year-over-year; full year: NOK 3,631 million, up 15.2%.

• Adjusted EBITA Q4: NOK 81.4 million (margin 8.2%), down 1.3 percentage points year-over-year; full year adjusted EBITA: NOK 384 million (10.6% margin).

• Excluding Jutzy, full-year adjusted EBITA was NOK 400 million (11.5% margin).

• Q4 operating cash flow was NOK 298 million, up NOK 92 million year-over-year; full year: NOK 660.6 million.

• Net interest-bearing debt/adjusted EBITDA at 2.1x, with net debt at year-end NOK 1,550.6 million.

Outlook and guidance

• Expectation to continue organic growth in 2025, supported by capacity increases and potential price adjustments.

• Margin improvement methodology and business process tools being implemented, especially in Germany.

• Targeting NOK 4.5 billion in statutory revenue and adjusted EBITA margin of 14–15% by 2025, though acknowledged as challenging.

• ERP and field service management system rollout in Germany anticipated to drive operational improvements in the second half of 2025.

• M&A activity expected to pick up, with a prudent approach to capital allocation.