NRC Group (NRC) Q1 2025 earnings summary

Executive summary

• Achieved all-time high order backlog of NOK 8.9 billion and strong order intake, especially in Norway and Sweden, with major contracts secured in Q1 2025.

• EBIT improved to NOK -27 million from NOK -99 million in Q1 2024, reflecting progress on strategic initiatives and operational efficiency.

• Completed internal restructuring, strengthened management teams across all countries, and launched a new 2024-2028 strategy focused on profitable growth.

• Initiated operational efficiency programs in Norway and continued restructuring in Finland, showing visible results.

• Board changes occurred after the quarter, with new directors elected at the May 8 General Meeting.

Financial highlights

• Q1 2025 revenue was NOK 1.26 billion, slightly down from NOK 1.31 billion in Q1 2024; EBIT margin improved to -2.1% from -7.5%.

• Net loss reduced to NOK -41 million from NOK -92 million year-over-year; EPS at NOK -0.24.

• Operating cash flow was NOK -150 million, down from NOK -126 million in Q1 2024, mainly due to working capital increase from ETM project.

• Net interest-bearing debt at NOK 832 million as of Q1 2025; equity ratio stood at 39%.

• Order intake was NOK 2,238 million, with a book-to-bill ratio of 1.8x.

Outlook and guidance

• Confident in achieving more than 2.0% EBIT margin for 2025, with revenue target set at NOK 7 billion.

• Long-term goal of over NOK 10 billion revenue and EBIT margin above 5% by 2028.

• Robust tender pipeline of NOK 29 billion across all countries, supported by governmental infrastructure initiatives.

• Management is confident in achieving EBIT margin targets, supported by strong order backlog and high tender activity.