Itera (ITERA) Q3 2024 earnings summary

Executive summary

• Organic revenue declined 5% year-over-year in Q3 2024, mainly due to a temporary loss of a major customer, but a significant customer win-back and new large agreements are expected to benefit future quarters.

• Two large framework agreements worth up to NOK 550 million were secured, with scaling expected in 2025.

• Opened a new office in Stavanger via a small acquisition, adding 20+ employees and expanding presence in energy and offshore sectors.

• Launched a pilot project for housing in Ukraine, supporting market entry and social responsibility.

• Cash flow from operations improved to NOK 6.2 million in Q3, and a supplementary dividend brings the 2024 total to NOK 0.60 per share.

Financial highlights

• Q3 2024 operating revenue was NOK 184.2 million, down 5% from NOK 193.9 million in Q3 2023.

• EBIT margin dropped to 0.1% from 4.5% year-over-year; EBIT was NOK 0.1 million versus NOK 8.7 million.

• EBITDA margin was 4.5% in Q3; EBITDA-to-cash conversion reached 89-90% over the last 12 months.

• Cash and cash equivalents at period end were NOK 29.8 million; cash flow from operations was NOK 6.2 million in Q3.

• Number of employees at quarter end was 699, down 8% year-over-year.

Outlook and guidance

• Gradual improvement in demand is expected as new agreements ramp up and market conditions recover.

• Focus remains on profitable growth, cash flow, and leveraging opportunities in AI, cloud, and the new Stavanger office.

• Profitability expected to improve as managed services and modernization projects scale.

• Strategic initiatives include connecting Ukraine and the Nordics for green energy and rebuilding efforts.

• No material financial impact from the Stavanger acquisition expected in Q4 2024.