Norconsult (NORCO) Handelsbanken Nordic Small & Mid Cap Seminar presentation summary

Market position and business overview

• Leading interdisciplinary consultancy in Norway, top five in the Nordics, and among the top 12 in Europe by engineering services turnover.

• Operates across buildings and architecture, infrastructure, energy and industry, and digital sectors with ~6,600 employees and ~140 offices.

• Serves both public and private sectors, with a diversified revenue base and ~35,000 projects for ~14,500 customers.

• Strong local presence balanced with knowledge hubs and cross-office collaboration, leveraging expertise across regions.

• Attracts and retains talent through prestigious projects, leadership programs, and a strong sense of community, with lower employee turnover than peers.

Financial performance and growth

• Achieved a 10% net revenue CAGR from 2014 to Q1 2025, with consistent adjusted EBITA margins around 10%.

• Demonstrates robust revenue visibility with a NOK 7bn order backlog and low project risk due to a cost-plus model for most contracts.

• Maintains a superior financial track record with stable margins and strong organic growth, supported by rigorous pricing and project management.

• Financial targets include growth above market, >10% adj. EBITA margin, <2.0x net debt/adj. EBITDA, and >50% payout ratio.

Market trends and strategic initiatives

• Benefits from secular growth trends: urbanization, green transition, digital transformation, and infrastructure rehabilitation.

• Stable market conditions in Q1 2025, with public projects supporting private sector activity and continued demand in infrastructure and energy.

• Pursues a pan-Nordic M&A agenda to strengthen its No. 1 position in Norway and expand in the Nordics, aiming to be a top 3 player.

• Selective M&A and organic growth strategies target both niche competencies and broader interdisciplinary offerings.