Norbit (NORBT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues reached NOK 419 million with EBIT of NOK 102 million and a 24% margin, driven by strong Oceans and PIR segments, while Connectivity declined due to lower OBU sales.

• H1 2024 revenues were NOK 829 million, up 4% YoY, with EBIT of NOK 143 million and a 17% margin, reflecting recovery from a weaker Q1.

• Strategic milestones include the acquisition of Innomar for EUR 39.7–40.5 million, expanding technology and market reach, and a NOK 160 million contract with Toll4Europe for a new GNSS onboard unit.

• NOK 200 million private placement completed to strengthen cash position and support growth.

• Dividend of NOK 2.55 per share (NOK 152.9 million) paid in Q2 2024.

Financial highlights

• Q2 gross margin was 61%, EBITDA NOK 131.9 million (31% margin), and net income NOK 72.1 million.

• Oceans segment delivered NOK 195 million in Q2 revenues (up 28% YoY) with a 41% EBIT margin; first half revenues NOK 317 million, up 10% YoY.

• Connectivity Q2 revenues declined 41% YoY to NOK 101 million, EBIT margin 20–25%, but gross margin improved to 66% due to higher subscription e-toll share.

• PIR Q2 revenues up 32% YoY to NOK 134 million, EBIT margin 13%.

• Cash flow from operations was strong at NOK 149.5 million in Q2; H1 cash flow from operations NOK 203.4 million.

Outlook and guidance

• 2024 full-year revenue guidance reiterated at NOK 1.7–1.8 billion, with expectations to be at the lower end; EBIT margin targeted in line with 2023.

• Oceans and PIR segments expected to drive growth in 2024; Connectivity and PIR Q3 revenues each guided at NOK 120–130 million.

• Guidance excludes Innomar contribution; 2027 ambition: NOK 2.75 billion in revenues and 20% EBIT margin.

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