NRC Group (NRC) Q4 2024 earnings summary

Executive summary

• 2024 was a year of transformation with strengthened leadership, a new strategy, and a NOK 250 million share issue to support the financial platform.

• Order intake increased by NOK 1 billion year-over-year, with a robust tender pipeline across all countries.

• The ETM project in Norway led to significant provisions and will proceed to legal action after failed mediation.

• Restructuring in Finland and ongoing transformation in Sweden; new Nordic Machine division established.

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

Financial highlights

• Q4 2024 revenue was NOK 1.7 billion, down from NOK 1.8 billion in Q4 2023; FY 2024 revenue reached NOK 6.9 billion, up from NOK 6.7 billion in FY 2023.

• Adjusted EBIT for Q4 2024 was NOK -2 million (margin -0.1%), compared to NOK 24 million (1.4%) in Q4 2023; FY 2024 adjusted EBIT was NOK -93 million.

• Net loss for 2024 was NOK -1,000 million, mainly due to ETM write-downs, goodwill impairment, and restructuring charges.

• Operating cash flow in Q4 2024 was NOK 198 million, but only NOK 31 million for FY 2024, down from NOK 376 million in 2023.

• Order backlog at year-end was NOK 8.0 billion, up from NOK 6.9 billion a year earlier.

Outlook and guidance

• 2025 EBIT margin guided above 2.0%, with a reaffirmed long-term target of >5.0% EBIT margin by 2028.

• Revenue target for 2025 is NOK 7 billion, with >NOK 10 billion targeted for 2028.

• Tender pipeline remains strong at NOK 27 billion, supporting future growth and expansion into new sectors.