Cambi (CAMBI) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 revenue of NOK 306 million, up 29% year-over-year, and highest-ever EBITDA of NOK 82 million, with strong execution across business segments.

• Rolling last twelve-month revenue surpassed NOK 1 billion for the first time, marking a significant milestone and reflecting sustained growth.

• Maintained a solid balance sheet with no long-term debt, robust operational cash flow, and NOK 160 million in dividends distributed.

• Order backlog stood at NOK 1.5 billion at quarter-end, providing strong visibility for future activity.

• No new large construction contracts in Q2, but several variation and small upgrade orders were received.

Financial highlights

• Q2 2024 revenue reached NOK 306 million, up from NOK 238 million in Q2 2023; EBITDA was NOK 82 million, up from NOK 64 million.

• Gross margin stable at 53% overall; technology segment gross margin at 58%.

• Operational cash flow was NOK 91 million, and NOK 160 million in dividends were distributed in May.

• Bank deposits increased to NOK 259 million at quarter-end, up from NOK 168 million in Q2 2023.

• Order intake was NOK 63 million in Q2 2024, down from NOK 201 million in Q2 2023.

Outlook and guidance

• Order backlog at NOK 1.5 billion provides good visibility for future quarters; about 25% expected to convert to revenue in H2 2024, and 50% in 2025.

• No specific short-term or long-term revenue guidance; focus remains on long-term shareholder value and organic growth.

• Expectation of some pressure on gross margins due to project mix and increased outsourcing.

• Market growth expected, driven by population growth, urbanization, and increased sludge management needs.

• Financial outlook subject to project timelines, currency fluctuations, and geopolitical risks; mitigation strategies in place.