Norbit (NORBT) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenues reached NOK 371.9 million, up 13% year-over-year, with EBIT margin at 16% for the first nine months and continued momentum toward long-term targets.

• Year-to-date revenues totaled NOK 1,195.3 million, a 6% increase, with EBIT of NOK 196.7 million (16% margin).

• Major orders included NOK 160 million GNSS-based onboard unit, NOK 100 million Guard Point sonars, and NOK 50 million contract manufacturing.

• Growth in Oceans and PIR segments offset a decline in Connectivity due to postponed OBU deliveries.

Financial highlights

• Q3 gross margin improved to 63% from 59% last year, driven by Oceans and Connectivity margin expansion.

• Q3 EBITDA was NOK 86.6 million (23% margin); adjusted EBITDA margin was 25%.

• Net income for Q3 was NOK 35.1 million; net finance expenses were negative NOK 4.8 million.

• Cash flow from operations was NOK 83.8 million; liquidity at quarter-end was NOK 528 million.

• Net interest-bearing debt increased to NOK 352.4 million due to Innomar acquisition financing.

Outlook and guidance

• Full-year 2024 revenue expected at NOK 1.75 billion, EBIT margin around 20%, with positive outlook for 2025 and progress toward 2027 targets.

• Oceans Q4 revenue guidance: NOK 240–300 million, with timing of a major security contract as a key variable.

• Connectivity Q4 expected at NOK 140–150 million, driven by increased onboard unit and tachograph module sales.

• PIR Q4 guidance: NOK 150–160 million, supported by new and existing contracts.

• 2027 ambition: organic revenue above NOK 2.75 billion, EBIT margin around 20%, ROCE around 30%.