NRC Group (NRC) Q3 2024 earnings summary

Executive summary

• Q3 2024 performance aligned with expectations, with strengthened financial platform and increased Nordic infrastructure investments, especially in Norway.

• Major challenges in 2024 included negative impact from the ETM project and significant restructuring in Finland and Norway.

• Financial platform strengthened by NOK 250 million equity raise and renegotiated bank and bond agreements.

• Major light rail contract wins in Finland post-quarter; tender pipeline remains robust across all countries.

• New strategy targets over NOK 10 billion revenue and EBIT margin above 5% by 2028.

Financial highlights

• Q3 2024 revenue NOK 2,103 million (up from NOK 1,844 million); EBIT adj. NOK 40 million (down from NOK 80 million); EBIT adj. margin 1.9% (4.3%).

• Net loss of NOK 9 million in Q3 2024 (profit of NOK 49 million Q3 2023); YTD net loss NOK 887 million (profit of NOK 43 million YTD 2023).

• YTD 2024 revenue NOK 5,156 million (NOK 4,932 million); EBIT adj. NOK -91 million (NOK 96 million); margin -1.8% (2.0%).

• Significant impairment charges: NOK 500 million in Finland, NOK 150 million in Norway (Q2 2024).

• Order backlog increased to NOK 6.8 billion from NOK 6.6 billion.

Outlook and guidance

• 2024 revenue target of ~NOK 6.6 billion with EBIT adj. margin between -0.9% and -1.5%.

• 2025 forecast: revenue approx. NOK 7.0 billion, EBIT margin above 2%.

• Long-term target: revenue above NOK 10 billion and EBIT margin above 5% by 2028.

• Mediation in ETM project expected to resume in early 2025.