Cambi (CAMBI) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue increased 4% year-over-year to NOK 225 million, but EBITDA dropped significantly due to higher operational costs, project delays, and negative currency effects.

• Order intake was NOK 170 million, down from NOK 401 million year-over-year, with an order backlog of NOK 1.2 billion providing strong visibility into 2025 and 2026.

• Four new contracts were secured, including first market entry in India, new projects in Spain and Norway, and a long-term service agreement in Denmark.

• The company is exiting the retail soil business to focus on core bulk soil, biosolids, and garden waste operations.

• Strategic focus remains on growth, operational resilience, and ongoing investments in marketing, sales, and innovation.

Financial highlights

• Gross margin was 47%, down from 53% year-over-year, mainly due to currency effects and increased costs.

• Operating expenses rose to NOK 92 million from NOK 78 million year-over-year, reflecting investments in organizational growth.

• Negative operating cash flow in Q1, driven by delayed milestone payments, with significant payments expected in coming quarters.

• Bank deposits or cash and cash equivalents at quarter-end were NOK 100 million.

• Dividend of NOK 0.30 per share approved, with potential for up to NOK 0.70 more, subject to project milestones and liquidity.

Outlook and guidance

• Delays in project execution in Q1 are expected to be recovered in subsequent quarters of 2025.

• More than half of the Q1 backlog is expected to convert to revenue in 2025, and one-third in 2026.

• Revenue dip possible in 2026 if order intake remains limited, but management is confident in future growth.

• Market pipeline has grown to 450 projects, with increasing interest and value in both established and emerging markets.

• High energy costs, regulations, and nutrient recovery trends continue to drive long-term demand.