Soiltech (STECH) Q4 2024 earnings summary

Executive summary

• Achieved record quarterly and full-year revenue, with Q4 revenue at NOK 80.7 million (+39% YoY) and full-year revenue at NOK 274 million (+20% YoY), driven by strong operational execution and high utilization across projects.

• Adjusted EBITDA reached NOK 25.8 million in Q4 (+90% YoY, margin 32%) and NOK 63.3 million for the year (+24% YoY, margin 23%).

• Secured major long-term contracts with Equinor, OMV Petrom, and Northern Ocean, expected to add over NOK 100 million in annual revenue starting 2025.

• Entered a strategic partnership with Estedama in Saudi Arabia, targeting significant growth opportunities in the Middle East.

• Expanded international operations, with 24% of revenue from outside Norway.

Financial highlights

• Q4 adjusted EBITDA margin improved to 32% from 23% YoY; full-year adjusted EBITDA margin was 23%.

• Q4 adjusted profit before tax was NOK 15.8 million (+151% YoY); full-year adjusted profit before tax was NOK 27.8 million (+9.5% YoY).

• Net interest-bearing debt at year-end 2024: NOK 159 million (up from NOK 111 million in 2023).

• Available cash reserve at year-end: NOK 74.3 million; cash position: NOK 34.7 million.

• Equity ratio at year-end: 47%.

Outlook and guidance

• Strong contract pipeline and strategic partnerships expected to drive continued growth in 2025 and beyond.

• Ambition to increase EBITDA margin towards 25% as new contracts ramp up.

• No immediate need for significant new equipment investments; existing assets expected to support near-term growth.

• Dividend policy under consideration, with updates to be communicated when available.

• Forward-looking statements subject to risks and uncertainties beyond management's control.