Nordecon (NCN1T) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was €208.3 million, down 7% year-over-year, with net profit at €2.5 million, significantly impacted by a €750k foreign exchange loss from the Ukrainian hryvnia.

• The Buildings segment saw a 10% revenue decline to €168.3 million, while Infrastructure grew by 10% to €39.9 million.

• Gross margin decreased to 6.5% from 7.5% in 2024; operating margin fell to 2.7% from 3.6%.

• Order book increased by 30% to €273.1 million, with 69% scheduled for 2026 and a shift toward Infrastructure projects.

• Commercial buildings revenue rose 71% year-over-year, while public buildings revenue fell 32%.

Financial highlights

• EBITDA was €8.25 million (margin 4.0%), down from €11.0 million (4.9%) in 2024.

• Administrative expenses declined by 14% to €6.8 million, with a lower ratio to revenue at 3.3%.

• Net margin dropped to 1.2% from 2.3% year-over-year.

• Return on equity was 9.2%, down from 21.0% in 2024.

• Cash and cash equivalents at year-end were €5.3 million, down from €8.2 million in 2024.

Outlook and guidance

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

• Management expects business volumes to increase in 2026, supported by a strong order book and improved market conditions.

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

• Continued strong dividend yield commitment, though no dividends were paid in 2025.