Nekkar (NKR) Q2 2024 earnings summary

Executive summary

• Revenue grew 14% year-over-year in Q2 2024 to 150 million NOK, and 29% in H1 2024 to 302.1 million NOK, with portfolio expansion including the Globetech acquisition and FiiZK divestments.

• Q2 2024 EBITDA was 20 million NOK (13.4% margin), down from 25 million NOK (18.6%) in Q2 2023, impacted by project mix and higher Techano Oceanlift contribution with softer margins.

• Order backlog at quarter-end was 725 million NOK, providing strong visibility for 2024 and 2025.

• Cash position remains robust at 227 million NOK, with no interest-bearing debt and a 69% equity ratio.

• Acquisition of 67% of Globetech completed in August 2024, expected to increase recurring digital revenues and enhance margins.

Financial highlights

• Q2 2024 revenue: 150 million NOK (Q2 2023: 132 million NOK); H1 2024 revenue: 302 million NOK (H1 2023: 234 million NOK).

• Q2 2024 EBITDA: 20 million NOK (Q2 2023: 25 million NOK); EBITDA margin: 13.4% (Q2 2023: 18.6%).

• H1 2024 EBITDA: 50.5 million NOK (16.7% margin); H1 2024 net profit: 29.8 million NOK; EPS: 0.28 NOK.

• Net cash flow in H1 2024: 33 million NOK; cash flow from operations: 46–59.7 million NOK.

• Order intake in Q2: 15 million NOK; order backlog: 725 million NOK (Q2 2023: 864 million NOK).

Outlook and guidance

• High tender activity across all business units; strong pipeline for Syncrolift with 2–3 billion NOK in contracts expected to be awarded over two years.

• Backlog provides good revenue visibility for 2024 and 2025; profitability expected to remain solid with some quarterly fluctuations.

• Integration of Globetech expected to drive higher recurring digital revenues and improve margins.

• FiiZK turnaround progressing, with focus on closed and semi-closed aquaculture systems.

• Techano Oceanlift and Intellilift expect improved margins and new opportunities as current projects are executed.