Itera (ITERA) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue declined 4% year-over-year to NOK 212.2 million, with a 3% decrease for the full year; adjusted EBIT margin was 5.6% in Q4 and 6.2% for the year, impacted by a NOK 4.4 million partnership investment write-off.

• Strategic expansion included new service offerings in Ukraine, a new office and acquisitions in Rogaland, and major contracts such as the Bergen Engines energy project.

• Recognized as a finalist for the UN Sustainability Award and other international business awards for humanitarian and business efforts in Ukraine.

• Order intake in Q4 resulted in a book-to-bill ratio of 1.4, supported by a new three-year framework agreement with Gjensidige.

• Total dividend payout for 2024 was NOK 0.60 per share, with a proposed ordinary dividend of NOK 0.20 per share for 2024.

Financial highlights

• Q4 2024 operating revenue was NOK 212.2 million, down 4% year-over-year; full-year revenue was NOK 849.1 million, down 3%.

• Adjusted EBIT for Q4 was NOK 11.9 million, down 44% year-over-year; reported EBIT was NOK 7.5 million after a NOK 4.4 million write-off.

• Adjusted EBITDA margin in Q4 was 9.4% (down from 13.3%); full-year adjusted EBITDA margin was 10.0%.

• Earnings per share for Q4 was NOK 0.07; full-year was NOK 0.43; total dividend per share was NOK 0.60.

• Cash flow from operations was NOK 45.3 million in Q4 and NOK 73.7 million for the year; EBITDA-to-cash conversion was 91%.

Outlook and guidance

• Market conditions are showing signs of normalization, with improved pipeline visibility and strong order intake (book-to-bill of 1.4 in Q4).

• Growth is expected from new service offerings, expanded presence in Sweden and Rogaland, and business advisory projects in Ukraine.

• Focus remains on profitable, balanced growth, leveraging opportunities in cloud transformation and AI.

• Banking and insurance sectors remain soft, while energy and public sector are improving.

• Gradual improvement in billable utilization and sales pipeline observed in Q4.