Nordecon (NCN1T) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 reached €223.9 million, up 20% year-over-year, with significant gross margin improvement to 7.5% from 2.0% in 2023.

• Operating profit was €8.1 million, reversing a prior year operating loss of €3.4 million; net profit was €5.2 million compared to a €6.4 million loss in 2023.

• EBITDA improved to €11.0 million (4.9% margin) from a negative €0.4 million in 2023.

• Order book at year-end was €209.5 million, down 3% from 2023, with a significant shift toward Infrastructure contracts and new contracts signed totaling €181.4 million.

• Gross margin rose to 7.5% from 2.0% year-over-year, with both main segments showing profitability improvements.

Financial highlights

• Gross profit increased to €16.8 million (2023: €3.8 million); gross margin for Q4 was 9%.

• Administrative expenses rose 20% to €7.9 million, mainly due to higher performance-based remuneration.

• Net margin improved to 2.3% from -3.4% in 2023; return on equity rose to 21%.

• Equity ratio increased to 23.4%, and gearing decreased, reflecting a stronger capital structure.

• Cash and cash equivalents at year-end were €8.2 million, down from €11.9 million the previous year.

Outlook and guidance

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

• Management expects 2025 business volumes to remain stable, with a focus on cost management and productivity.

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

• Dividend yield for shareholders is a stated priority.

• Market conditions remain highly competitive, with no significant recovery in private investment anticipated.