Vow (VOW) Q3 2024 earnings summary

Executive summary

• Revenue increased to NOK 267.4 million in Q3 2024, up 5% year-over-year, driven by Industrial Solutions and Aftersales, with Maritime Solutions stable.

• EBITDA before non-recurring items improved to NOK 18.4 million (6.9% margin), up from negative NOK 15.5 million last year, reflecting operational improvements and cost reductions.

• Fully underwritten NOK 250 million rights issue confirmed, aimed at strengthening the balance sheet and liquidity by year-end.

• Annual cost savings for 2024 estimated at NOK 40-50 million due to ongoing business improvement initiatives.

• Order backlog reached NOK 1,103 million, with additional option agreements of NOK 116 million, supporting future revenue visibility.

Financial highlights

• YTD Q3 2024 revenue was NOK 752.5 million, up 6.5% year-over-year; gross margin YTD at 29.5% (down from 32.0% YTD 2023).

• Group EBITDA before non-recurring costs reached NOK 44.4 million (5.9% margin) YTD.

• Net result before tax was -NOK 20.7 million, an improvement from -NOK 53.4 million in Q3 2023.

• Operating cash flow for Q3 was NOK 7.5 million, a turnaround from negative NOK 77.0 million in Q3 2023.

• Cash and cash equivalents at quarter-end were NOK 15.2 million, with NOK 94.4 million in undrawn credit lines.

Outlook and guidance

• Profitability expected to benefit from cruise newbuild and aftersales markets, with cost reduction programs targeting NOK 40-50 million in annual savings for FY 2024.

• Industrial Solutions segment focused on converting advanced FEED contracts into firm orders to rebuild backlog.

• Rights Issue of NOK 250 million to be completed by year-end, strengthening liquidity and balance sheet for 2025.

• Margin improvements expected to continue, supported by cost savings and operational enhancements.

• Continued focus on cost discipline, margin improvement, and working capital management.