Aker Solutions (AKSO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached NOK 12.8 billion, up 45% year-over-year, with EBITDA margin at 9.5% and strong operational performance across major oil & gas, electrification, hydropower, and CCS projects.

• Order intake for Q2 was NOK 15.5 billion (1.2x book-to-bill), driving a robust backlog of NOK 71.4 billion, ensuring strong visibility on future activity.

• Net cash position at quarter-end was NOK 11 billion, with NOK 1.4 billion distributed to shareholders in H1 2024 via dividends and buybacks.

• Launched the ENTR energy consultancy brand and achieved key project milestones, including Castberg FPSO sea trials, Fenris module delivery, and installations at Valhall field.

• Upgraded 2024 revenue guidance to around NOK 50 billion, representing approximately 40% year-on-year growth.

Financial highlights

• Q2 revenue: NOK 12.8 billion (up from NOK 8.8 billion YoY); H1 revenue: NOK 24.3 billion (up from NOK 16.1 billion YoY).

• Q2 underlying EBITDA: NOK 1.2 billion (margin 9.5%); H1 EBITDA: NOK 2.2 billion (margin 9.1%).

• Q2 underlying EBIT: NOK 959 million; H1 EBIT: NOK 1.7 billion (over tenfold YoY increase).

• Q2 net income (excl. special items): NOK 862 million; H1 net income: NOK 1,426 million.

• Q2 EPS: NOK 1.78; H1 EPS: NOK 3.19 (up 55% YoY).

• Operational cash flow in Q2: NOK 1.4 billion; CapEx: NOK 413 million.

Outlook and guidance

• 2024 revenue expected to grow by ~40% vs. 2023, reaching around NOK 50 billion, with EBITDA margin around 7.5%.

• CapEx for 2024 guided at 2.5%-3% of revenues, trending lower in future years.

• Working capital normalization expected in H2 2024, with a negative cash impact of NOK 3 billion.

• High activity and healthy margins expected for 2025, with margin guidance of 6%-7% seen as sustainable.

• Dividend policy targets 40-60% of annual net profit (excluding special items) via dividends and buybacks.