Soiltech (STECH) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw high activity, 100% commercial uptime, and strong delivery across technology segments, with revenues of NOK 67.6 million and adjusted EBITDA of NOK 13.4 million.

• Profit before tax was NOK 3.5 million, excluding IPO expenses, and the company completed a merger with Oceanteam, leading to a successful Euronext Expand listing in September 2024.

• Proactive investments of NOK 100 million in new equipment position the company for future growth, with CapEx largely completed for 2025 and 2026.

• New sizable contracts were secured with major industry players, including Equinor, Transocean, PGNIG, COSL Drilling, and Pipetech.

• Soiltech continues to gain market share, driven by tightening environmental regulations and proactive investments in equipment and personnel.

Financial highlights

• Q3 2024 revenue was NOK 67.6 million, up from NOK 66.4 million in Q3 2023; YTD 2024 revenue reached NOK 193.4 million, up from NOK 171.3 YTD 2023.

• Adjusted EBITDA for Q3 2024 was NOK 13.4 million (20% margin); gross profit margin was 40% for the quarter and 39% YTD.

• Profit before tax for Q3 2024, excluding IPO expenses, was NOK 3.5 million; reported loss before tax was NOK -10.1 million due to NOK 13.6 million IPO expenses.

• YTD 2024 profit before tax (excluding IPO expenses) was NOK 13.3 million; reported YTD loss before tax was NOK -4.3 million due to NOK 17.5 million IPO and merger expenses.

• Net interest-bearing debt at Q3 2024 was NOK 149.7 million, up from NOK 111.2 million at year-end 2023; available cash at quarter end was NOK 73.5 million, with NOK 39.6 million in unused credit.

Outlook and guidance

• Anticipates higher activity in Q4 2024, with significant momentum expected through 2025 and 2026, supported by tightening environmental regulations in the EU and globally.

• Proactive investments in equipment position the company for growth without further major CapEx until new projects arise.

• Focus remains on expanding within Norway and Europe, with selective international growth opportunities.

• Market demand for sustainable waste management is growing, and the company is well positioned to increase market share.