Nekkar (NKR) Q4 2024 earnings summary

Executive summary

• 2024 revenue grew 8.5%–9% year-over-year to NOK 624 million, with Q4 revenue at NOK 181 million and EBITDA at NOK 27 million (15.1% margin), impacted by margin pressure in Techano Oceanlift.

• Net profit for 2024 was NOK 86 million, with Q4 net profit at NOK 15 million; EPS for Q4 was 0.14 NOK.

• Strong cash position of NOK 205 million at year-end, no interest-bearing debt, and an undrawn credit facility of NOK 200 million.

• Order intake in Q4 was NOK 187 million, with a year-end order backlog of NOK 744 million, mainly from Syncrolift.

• Strategy targets NOK 2 billion+ revenue by 2027 via organic growth and M&A, expanding to 6–8 platform companies.

Financial highlights

• Q4 EBITDA margin was 15.1%, down from 18% in Q4 2023; full-year EBITDA margin was 14.7%–14.8%, down from 18.9%–19%.

• Cash flow from operations was positive at NOK 68 million in Q4 and NOK 111 million for the full year, driven by working capital reduction.

• Net capitalized development costs were NOK 6 million in Q4 and NOK 23 million for 2024, mainly for Techano and Syncrolift technology.

• Equity ratio was 60% at year-end 2024.

• Working capital at year-end was NOK 57 million, down NOK 62 million from Q3.

Outlook and guidance

• Organic growth target is NOK 1.5 billion by 2027, with M&A to reach NOK 2 billion+; order backlog provides good visibility for 2025.

• Strong tender pipeline: NOK 2 billion in Syncrolift tenders expected to be awarded in 2025.

• Service revenue in Syncrolift expected to surpass 20% of total revenue in 2025; service revenue was 18% in 2024.

• Margin improvements anticipated for Techano as new contracts are secured.

• Substantial market interest in FiiZK's closed fish cage solutions, with further growth opportunities anticipated.