Veidekke (VEI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was NOK 9.7 billion, down 7% from Q3 2023, with pre-tax profit of NOK 616 million and profit per share of NOK 3.4.

• Order book at quarter-end was NOK 41 billion, with 60% to be executed in the next 12 months.

• Margins improved year-over-year, with Infrastructure Norway showing the greatest improvement.

• Net interest-bearing assets rose to NOK 2,110 million at 30 September 2024, up from NOK 1,446 million a year earlier.

• Operational cash flow for the first three quarters was NOK 1.0 billion.

Financial highlights

• Profit before tax increased to NOK 616 million from NOK 601 million in Q3 2023; profit margin rose to 6.4% from 5.8%.

• Net interest-bearing position improved to NOK 2,110 million at quarter-end.

• Strong cash flow in the quarter, with working capital improvements in Norwegian units.

• Dividend of NOK 7.9/share paid in May 2024 for 2023, totaling NOK 1,066 million.

• EBIT was NOK 590 million; EBITDA was NOK 851 million.

Outlook and guidance

• Construction Norway revenue expected to level off in 2025 after a decline in 2024.

• Construction Sweden revenue expected to drop in 2025; no new residential projects contracted.

• Infrastructure Sweden to see revenue boost in 2025 from the Euromining acquisition.

• Market activity expected to stabilize in 2025, with growth prospects for 2026 as interest rates ease.

• Market outlook is weak short-term due to high commodity prices and cautious investment.