Nordecon (NCN1T) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was €92.6 million, down 19% year-over-year, with both Buildings and Infrastructure segments declining.

• Net profit for H1 2025 was €471 thousand, a significant decrease from €1.8 million in H1 2024, mainly due to foreign exchange losses from the Ukrainian hryvnia.

• Order book surged 70% year-over-year to €303.9 million as of June 30, 2025, with €172.2 million in new contracts signed.

• The Buildings segment contributed 89% of revenue, while Infrastructure's share fell to 11%.

• Management expects 2025 business volumes to remain at 2024 levels, focusing on cost management and productivity.

Financial highlights

• EBITDA for H1 2025 was €3.4 million (H1 2024: €4.7 million); EBITDA margin fell to 3.7%.

• Operating profit for H1 2025 was €2.1 million, down from €3.3 million year-over-year.

• Gross margin for H1 2025 was 5.9% (H1 2024: 6.3%); operating margin was 2.3%.

• Net cash inflow from operating activities was €2.95 million, down from €6.1 million in H1 2024.

• Cash and cash equivalents at June 30, 2025 were €9.3 million, down from €12.5 million a year earlier.

Outlook and guidance

• Strategic agenda targets at least 5% annual revenue growth and operating margin above 3%.

• Order book supports stable business volumes for 2025, with focus on cost management and leveraging professional advantages.

• Focus on organic growth, efficiency, digitalization, and balanced order books across segments.

• Market remains highly competitive, with public investment expected to decline, especially in infrastructure.

• Plans to deliver strong dividend yield and increase operating profit per employee to at least €10,000 per year.