Norconsult ASA: Q1 2024 - Growth and underlying stable profitability

Sandvika, 14 May 2024 (OSE: NORCO): The first quarter was significantly affected by an Easter holiday calendar effect of five less working days compared to the first quarter of 2023, which negatively impacted income after external project costs and adjusted EBITA of NOK 178 million. Adjusted for calendar effect, income after external project costs increased with 8 percent, where the organic growth adjusted for calendar was 6 percent. Adjusted EBITA margin was 15.9 percent for the quarter adjusted for calendar effects (16.2).

Highlights Q1 2024

• Income after external project costs was NOK 2 360 million (2 359)
• Significant calendar effects in the quarter due to Easter holiday in March resulting in five less working days compared with Q1 2023 amounting to NOK -178 million in reduced income after external project costs and adj. EBITDA
• Organic growth of 6 percent adjusted for calendar effects
• Adj. EBITA was NOK 227 million (381) with an adj. EBITA margin of 9.6 percent (16.2)
• Adj. EBITA margin adjusted for calendar effects was 15.9 percent (16.2)
• Costs for employee share program 2023 (gift shares) of NOK 77 million (0) is excluded from adj. EBITA
• Net profit of NOK 103 million (283)
• Ordinary earnings per share NOK 0.36 (1.02)

Comments from CEO Egil Hogna

"Norconsult delivered another quarter with growth and underlying stable profitability. The three months ending in March had significant calendar effects due to Easter holiday this year being in March resulting in five less working days for the quarter. The market for Norconsult’s services in the first quarter of 2024 was at large in line with last quarter. We observe a slightly more optimistic market sentiment for the coming quarters, driven by macroeconomic forecasts."

Outlook

The overall market is still affected by uncertainty influenced by macroeconomics. There are signs of improvement in the market for Buildings & Architecture, while we expect high activity and healthy demand from the Energy & Industry markets. The demand in the Infrastructure market is expected to be quite stable going forward, but we do notice some delay with regards to construction of new large capital-intensive projects.

Norconsult has considerable flexibility, a diversified mix of services and end-market exposures in the Nordics. Most of the demand for our services comes from the public sector. This makes Norconsult less exposed towards short-term cyclicality in the general economy. We continue to expect a relatively stable market outlook going forward, despite the macroeconomic uncertainties we are experiencing.

Our orderbook has increased during the quarter, with a good mix of new projects and growth in existing contracts. We continue to take proactive measures to improve our underlying profitability and maintain our efficiency.

For detailed information, please see the attached report and presentation.

The company will present the results today at 09:00 CET at VIA – House of Oslo, Ruseløkkveien 34, Oslo. The presentation will be held by CEO Egil Hogna and CFO Dag Fladby. The results will also be presented online through a live webcast where the participants will have the opportunity to submit questions online.

The live webcast wil be avaliable at: https://api.screen9.com/registration/dywKHDjMQEcJNtRK1btxfbwaO21vNItPmWGVkMeoRwFxXI9Sdv_uDpn9EHqTgtSY

For further information, please contact:

Investors: Elin Spieler, Head of Treasury and IR Manager, IR@norconsult.com

Media: Henrik Charlesen, Senior Communication Advisor, Henrik.Charlesen@norconsult.com

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

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About Norconsult

Norconsult is a leading pan-Nordic interdisciplinary consulting firm combining engineering, architecture and digital expertise across projects of all sizes, for private and public customers in infrastructure, energy and industry, buildings and architecture. Headquartered in Sandvika, Norway, Norconsult’s delivery model is centred around knowledge hubs and local presence through approximately 6,300 employees across around 140 offices in Norway, Sweden, Denmark, Iceland, Poland and Finland.