Nekkar (NKR) Q3 2024 earnings summary

Executive summary

• Net profit for Q3 2024 reached NOK 42 million, up 90–91% year-over-year, driven by divestments, FiiZK turnaround, and portfolio contributions.

• Revenue for Q3 was NOK 140 million, a 13% decrease year-over-year, mainly due to lower Syncrolift activity.

• EBITDA for Q3 was NOK 14 million, down from NOK 29 million last year, with a margin of 10.3% versus 17.8%.

• GlobeTech was acquired and consolidated from mid-August, contributing NOK 9 million in Q3 revenue and expanding recurring service agreements.

• Order intake for Q3 was NOK 83 million, with a backlog of NOK 700–704 million, not including a NOK 164 million contract awarded post-quarter.

Financial highlights

• Net profit increased 90–91% year-over-year to NOK 42 million, with EPS doubling to 0.40.

• Revenue declined 13% year-over-year to NOK 140 million in Q3; year-to-date revenue up 12% to NOK 442 million.

• EBITDA margin was 10.3% in Q3 2024, compared to 17.8% in Q3 2023, impacted by lower Syncrolift volumes and project mix.

• Cash position at quarter-end was NOK 159 million, with no interest-bearing debt and NOK 200 million undrawn credit facility.

• Order intake was NOK 83 million, with a backlog of NOK 704 million.

Outlook and guidance

• Strong backlog and high tender activity support a positive outlook for coming quarters and 2025.

• Revenue ambition set at over NOK 2 billion by 2027, targeting double-digit growth in core and new companies.

• Mix of organic growth and M&A expected to drive expansion to 6–8 platform companies.

• Margin improvement anticipated as growth companies mature and product mix shifts toward services.

• Market analysts predict increased investment in naval, maritime, offshore energy, and aquaculture segments.