Veidekke (VEI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was NOK 9.0 billion, a 5% decrease from Q1 2024, mainly due to declines in Construction Norway and Sweden and normal low seasonality.

• Profit before tax declined to NOK -21 million from NOK 25 million in Q1 2024, reflecting lower capacity utilisation, seasonal downturns, and higher winter costs.

• Order intake reached NOK 12 billion, up from NOK 10.2 billion last year, raising the order book to NOK 44.4 billion and providing strong visibility.

• Strong operational cash flow of NOK 313 million, a significant improvement from NOK -339 million in Q1 2024, driven by Norwegian operations.

• Net interest-bearing assets increased to NOK 2.7 billion as of 31 March 2025.

Financial highlights

• Revenue: NOK 9.0 billion, down 5% year-over-year.

• Profit before tax: NOK -21 million, compared to NOK 25 million in Q1 2024.

• Operating cash flow: NOK 313 million in Q1 2025.

• Net interest-bearing position: NOK 2,720 million as of 31 March 2025.

• Order book: NOK 44.4 billion at quarter-end, up from NOK 41.2 billion last year.

Outlook and guidance

• Order book of NOK 44.4 billion provides good visibility for future revenues.

• Revenues expected to stabilise at 2024 levels as the year progresses.

• Construction Norway expects full-year 2025 revenue to remain at 2024 levels.

• Infrastructure Norway anticipates higher volumes in road maintenance contracts for 2025.

• Focus remains on selective project acquisition, cost flexibility, and turning around weak units.