Nordrest (NREST) Q2 2024 earnings summary

Executive summary

• Achieved a successful stock market listing in May 2024, raising SEK 86 million through a new share issue.

• Net sales grew 6.2% year-over-year in Q2 to SEK 475 million, with 5.1% organic growth.

• For H1 2024, revenue rose 12.6% to SEK 960 million, with 11.1% organic growth.

• Strong cash generation and a net cash position, with operational cash generation at 104.3% (R12).

• All customer segments showed growth except Defense, which saw lower Q2 sales due to order timing.

Financial highlights

• Q2 EBITA reached SEK 42 million (SEK 38 million last year), with an EBITA margin of 8.9% (8.5%).

• H1 EBITA was SEK 80 million (SEK 70 million), with an EBITA margin of 8.4% (8.2%).

• Q2 EBITDA: SEK 46.7 million (SEK 40.8 million); H1 EBITDA: SEK 88.9 million (SEK 74.8 million).

• Net result for H1: SEK 62.4 million (SEK 51.3 million).

• Cash flow from operations H1: SEK 94.1 million (SEK 4.6 million); cash position SEK 164.7 million, net debt -SEK 92.6 million.

Outlook and guidance

• Medium-term targets: organic growth above 10%, EBITA margin 8–10%, dividend payout above 50%, net debt/EBITDA below 2.0x.

• Major NATO NSPA order for €12.9 million (approx. SEK 150 million) for MRE products, to be delivered over two years from 2025.

• Continued focus on expansion, new concepts, operational efficiency, and customer segments with stable, predictable flows and long-term contracts.