Vow (VOW) Q1 2025 earnings summary

Executive summary

• Order backlog nearly doubled year-over-year, reaching NOK 1,532 million, driven by strong Maritime Solutions and Aftersales growth.

• Revenue for Q1 increased by 12.3% to NOK 260.8 million, mainly from Aftersales and Industrial Solutions.

• Adjusted EBITDA improved to NOK 13.2 million (5.0% margin), up from NOK 5.6 million, reflecting increased operational profitability.

• New CEO and CFO appointed, with management focused on operational performance, working capital, and FX risk management.

• Accepted offer to sell Vow Green Metals stake and amended loan covenants, extending facilities to Q3 2027.

Financial highlights

• Q1 revenue up 12.3% year-over-year to NOK 260.8 million; twelve-month rolling revenue slightly above NOK 1 billion.

• Gross margin at 29.4%, down from 31.5% last year due to legacy contracts and currency effects.

• Adjusted EBITDA at NOK 13.2 million, up from NOK 5.6 million in Q1 last year, excluding NOK 3.8 million in non-recurring management change costs.

• Result before tax at negative NOK 30.4 million, impacted by NOK 12.1 million net FX loss and higher depreciation.

• Available liquidity at quarter-end was NOK 126 million, with interest-bearing debt at NOK 480 million, up NOK 85 million from year-end.

Outlook and guidance

• Margins in Maritime Solutions and Aftersales expected to improve as legacy contracts are replaced and operational measures take effect.

• Industrial Solutions to start biocarbon and biochar projects in Norway and Rhode Island in H2 2025, but faces unpredictability and slower order conversion.

• Strong cruise market visibility with contracts to deliver systems to 35 vessels and 44 new bids in tendering.

• Focus on strengthening operational execution, risk management, and sustainable profitability.