Nordic Unmanned (NUMND) Q3 2024 earnings summary

Executive summary

• Q3 2024 marked by higher activity, strong adjusted EBITDA, and a clarified focus on defense, security, and consolidation, with record flight hours in Flight Services.

• Strategic turnaround underway, including cost cuts, organizational right-sizing, and clarified focus on defense and security.

• Financial and legal restructuring completed, including NOK 47 million share capital increase, EUR 6 million debt reduction conversion, and ongoing legal restructuring to establish a holding company with Flight Services and OEM as separate segments.

• Transition to an asset-light model in Flight Services and ongoing efforts to strengthen sales and partnerships.

• Significant cost reductions implemented, with personnel costs down 13% in Q3 and 20% YTD year-over-year.

Financial highlights

• Q3 2024 revenue reached EUR 6.6 million, up from EUR 6.1 million year-over-year; YTD 2024 revenue EUR 13.9 million, slightly down from EUR 14.9 million YTD 2023, adjusted for discontinued business.

• Adjusted EBITDA improved to EUR 2.0 million from EUR 0.9 million year-over-year; YTD 2024 adjusted EBITDA negative EUR 1.0 million, improved from negative EUR 1.6 million YTD 2023.

• Q3 2024 net loss of EUR 7.2 million after EUR 6.3 million non-cash impairments; YTD 2024 net loss EUR 15.5 million.

• Significant asset impairment of EUR 6.3 million related to the drone park and fleet.

• Cash and cash equivalents at quarter end EUR 0.1 million, with EUR 1.3 million available in undrawn overdraft facilities.

Outlook and guidance

• Ongoing capital raise expected to complete by November or early December to further strengthen the balance sheet.

• 2024 defined as a transition year, focusing on OEM growth in defense and security and structural options for Flight Services.

• Legal restructuring to create a holding company with two pureplay segments expected by year-end 2024.

• Estimated contract backlog at EUR 44 million, with a significant pipeline of opportunities.

• Strategic review of Flight Services ongoing, with potential for merger, partial or full sale.