Norbit (NORBT) Q1 2025 earnings summary

Executive summary

• Revenues reached NOK 521.7 million in Q1 2025, up 29% year-over-year, with EBIT of NOK 127.4 million (24% margin) and diluted EPS of NOK 1.40, nearly tripling from NOK 0.50 a year earlier.

• Oceans and PIR segments drove record Q1 performance, with Oceans up 92% and strong order intake from the defence sector.

• Gross margin improved to 62% from 53% year-over-year, driven by margin gains in all segments and favorable segment mix.

• AGM approved a NOK 3.00 per share dividend, to be paid in May 2025.

• PIR secured a NOK 125 million order from a European defence client for H2 2025 delivery, with total defence contracts at NOK 260 million.

Financial highlights

• EBITDA was NOK 162.0 million (31% margin), up from NOK 73.1 million (18% margin) in Q1 2024.

• Net income was NOK 89.7 million, with net profit nearly tripling from NOK 30.2 million in Q1 2024.

• Net financial items were negative NOK 10.0 million, mainly due to FX losses and higher interest expenses.

• Cash and undrawn credit facilities totaled NOK 791.0 million at quarter-end.

• Cash flow from operations was NOK 101.3 million.

Outlook and guidance

• FY 2025 revenue target set at NOK 2.2–2.3 billion, with EBIT margin improvement over 2024’s 20%.

• Q2 2025 revenues expected to exceed NOK 700 million, with Oceans >NOK 220 million, Connectivity NOK 160–180 million, and PIR NOK 330–350 million.

• Management considers current annual targets conservative and will update guidance at Q2 reporting.

• PIR's gross margin expected to trend down in Q2 on higher volume, but EBIT margin to improve.

• Continued focus on value-accretive acquisitions to supplement organic growth.