Vow (VOW) H2 2024 earnings summary

Executive summary

• Achieved record revenue surpassing NOK 1 billion in 2024, with all segments contributing to growth and a turnaround to positive EBITDA.

• Order backlog reached an all-time high of NOK 1.68 billion, driven by strong cruise market recovery and major contract wins.

• Cost improvement program delivered NOK 44 million in savings, exceeding targets and reducing administration costs.

• Raised NOK 250 million in new equity, strengthening the balance sheet and reducing interest-bearing debt by NOK 245 million.

• Leadership transition underway, with new CEO and CFO appointments in late 2024 and early 2025.

Financial highlights

• Full-year revenue increased 11% to NOK 1,018 million, with gross margin at 29.3%.

• EBITDA before non-recurring items was NOK 61.1 million, up from negative NOK 23.4 million in 2023.

• EBIT was negative NOK 9.8 million; result before tax was negative NOK 93.6 million, both improved from 2023.

• Operating cash flow for 2024 was NOK 159.1 million, with a year-end cash balance of NOK 46.3 million and available liquidity of NOK 228.8 million.

• Equity ratio improved to 35.5% at year-end 2024, up from 25.8% in 2023.

Outlook and guidance

• Cruise market fully recovered, driving strong order intake and robust bid pipeline.

• Focus remains on improving profitability and liquidity, especially in cruise legacy projects and Industrial Solutions.

• Industrial Solutions segment progressing on FEED contracts and heat treatment projects, with need to secure new contracts to offset declining backlog.

• Streamlined cost base and robust capital structure position the group for improved profitability.