Soiltech (STECH) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 revenue of NOK 80.7 million, up 39% year-over-year, and full-year revenue of NOK 274 million, up 20% year-over-year, with adjusted EBITDA of NOK 25.8 million in Q4 (+90% YoY) and NOK 63.3 million for the year (+24% YoY), and all key financial metrics at all-time highs.

• 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.

• High activity and utilization across all projects, with significant growth in solid waste handling services and international operations now contributing 24% of revenue.

• Completed merger with Oceanteam ASA, resulting in Euronext Expand listing and NOK 12.8 million net cash inflow.

Financial highlights

• Q4 2024 revenue: NOK 80.7 million (+39% YoY); full-year 2024 revenue: NOK 274 million (+20% YoY).

• Q4 adjusted EBITDA: NOK 25.8 million (+90% YoY, margin 32%); full-year adjusted EBITDA: NOK 63.3 million (+24% YoY, margin 23%).

• Q4 adjusted profit before tax: NOK 15.8 million (+151% YoY); full-year adjusted profit before tax: NOK 27.8 million (+9% YoY).

• One-off effects included a NOK 3.7 million positive reversal of accruals in Q4 and NOK 17.8 million in merger and IPO costs for 2024.

• Operating cash flow: NOK 39.4 million; year-end cash position: NOK 34.7 million; available cash reserve: NOK 74.3 million.

Outlook and guidance

• Anticipates continued growth in 2025, supported by a strong contract pipeline, strategic partnerships, and high demand for sustainable waste management solutions.

• Expects EBITDA margin to increase towards 25% as new contracts become operational.

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

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

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