Veidekke (VEI) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached NOK 12.1 billion, up 6% year-over-year, with pre-tax profit at NOK 820 million (6.8% margin), and a robust order backlog of NOK 47.3 billion, providing a solid foundation for future growth.

• Full-year revenue was NOK 43.1 billion, with pre-tax profit of NOK 2,057 million, up 22% from 2024, and a margin of 4.8%.

• Five-year strategy period concluded with moderate annual revenue growth of 2.5% and a significant increase in pre-tax profit, despite market turbulence.

• New strategy targets disciplined, profitable growth 2.5% above market rate, aiming for robust profitability and attractive dividend payouts by 2030.

• Strong performance improvements across all business areas, especially in Norway and Sweden, driven by higher activity, better capacity utilisation, and improved profitability.

Financial highlights

• Q4 operating profit (EBIT) was NOK 783 million (Q4 2024: NOK 549 million); EBITDA was NOK 1,060 million (Q4 2024: NOK 877 million).

• Full-year EBIT was NOK 1,956 million (2024: NOK 1,605 million); EBITDA was NOK 3,061 million (2024: NOK 2,712 million).

• EPS for Q4 was NOK 4.7 (Q4 2024: NOK 3.2); full-year EPS was NOK 11.5 (2024: NOK 9.3).

• Operating cash flow in Q4 was NOK 1.5 billion, with net interest-bearing position at NOK 4.0 billion at year-end.

• Cash flow from operations for the year was NOK 3.3 billion (2024: NOK 2.2 billion).

Outlook and guidance

• Order book and book-to-bill ratio of 1.1 signal increased activity and revenue in 2026, with NOK 47.3 billion in backlog and 60% executable in the next 12 months.

• Scandinavian construction market expected to grow over 4% annually in 2026/27, with focus on infrastructure, energy, and rehabilitation.

• Ambition to grow 2.5% above market and maintain profitability above 5% over time, with dividend payout above 70% of profits.

• Market conditions remain challenging due to high construction costs, inflation, and regional variations.