Per Aarsleff (PAAL) Q1 24/25 earnings summary

Executive summary

• Q1 revenue grew 4.1% year-over-year to DKK 5,523 million, with EBIT of DKK 239 million (4.3% margin), and strong operating cash flow of DKK 854 million driven by reduced working capital.

• About one-third of turnover was generated outside Denmark, reflecting a strong international presence.

• Major ongoing projects include harbor developments in Gothenburg and Copenhagen, and a large district heating project in Copenhagen.

• Order intake was DKK 5.4 billion, maintaining a robust order backlog of DKK 24.2 billion.

• Investment in ArtiCon P/f (DKK 144 million) strengthens North Atlantic presence; acquisition to be completed mid-March.

Financial highlights

• Net income for Q1 was DKK 181 million, up from DKK 160 million year-over-year.

• Gross margin improved to 11.8% from 10.5% year-over-year.

• Return on equity (ROE) at 3.81% for the quarter; equity ratio at 36.3%.

• Net interest-bearing debt/EBITDA at 0.3, well within target.

• Earnings per share (EPS) increased to DKK 9.33 from DKK 8.15 year-over-year.

Outlook and guidance

• Full-year revenue growth expected at 0–5% (DKK 21.7–22.8 billion) and EBIT guidance maintained at DKK 1,050–1,150 million, with an EBIT margin near 5%.

• Investment in ArtiCon P/f not yet included in guidance; 75% of expected revenue covered by order backlog.

• Capex for property, plant, and equipment (excl. leases) expected at DKK 700–750 million.

• Ground engineering outlook depends on successful tenders in Q3 and Q4, with management expressing confidence in the pipeline.

• Technical solutions and pipe technologies expect continued strong demand, especially in energy and infrastructure.