NRC Group (NRC) Q3 2025 earnings summary

Executive summary

• Third quarter 2025 showed profit improvement and margin expansion, confirming strategic progress and completion of the strategic restart, with margin targets on track for 2025 and beyond.

• Order backlog reached NOK 8.5 billion, supporting future growth and reflecting major contract wins in all three countries.

• Market outlook for sustainable infrastructure remains favorable, with a robust tender pipeline and strong political support in the Nordics.

• New segment reporting (Machines and Special Operations) to be introduced from 2026.

• Health and safety performance improved, with LTI frequency rate reduced to 2.1 over the last twelve months.

Financial highlights

• Q3 2025 revenue was NOK 1,818 million, down from NOK 2,103 million in Q3 2024 due to timing effects in Sweden and Finland.

• EBIT increased to NOK 65 million (3.6% margin) from NOK 40 million (1.9%) year-over-year.

• Net profit was NOK 31 million, compared to a loss of NOK 9 million in Q3 2024; EPS NOK 0.18 (up from NOK -0.13 YoY).

• Operating cash flow was negative NOK 95 million, with cash release expected in Q4.

• Year-to-date revenue was NOK 4,845 million (down from NOK 5,156 million YoY); EBIT NOK 98 million (up from NOK -800 million YoY).

Outlook and guidance

• Confident in achieving 2025 EBIT margin above 2.0%, targeting NOK 135–140 million EBIT for the full year, with revenue expected below NOK 7 billion.

• 2026 targets: revenue of approximately NOK 7.5 billion and EBIT margin above 3.0%.

• Long-term strategy aims for revenue above NOK 10 billion and EBIT margin above 5.0% by 2028.

• Book-to-bill ratio expected to exceed 1.0x from Q4 2025 onwards.

• Robust revenue growth expected from Q2 2026.