Norconsult ASA: Q2 and first half year 2024 – Solid growth and stable profitability

Sandvika, 23 August 2024 (OSE: NORCO): Income after external project costs increased with 14 percent compared with the second quarter last year. The quarter was significantly affected by four more working days. Organic growth adjusted for calendar effects was 7 percent. The adjusted EBITA margin adjusted for calendar effects was 5.3 percent in the quarter, on level with last year. Cash flow from operating activities was NOK 501 million in the quarter, up from NOK 192 million last year.

Highlights Q2 2024

• Income after external project costs was NOK 2 399 million (2 097)
• Significant positive calendar effects of NOK 144 million as a result of four working days more in the quarter compared with last year
• Organic growth of 7 percent adjusted for calendar effects
• Adj. EBITA was NOK 263 million (112) with an adj. EBITA margin of 11.0 percent (5.3)
• Adj. EBITA margin was 5.3 percent, adjusted for calendar effects
• Expenses for the employee share program 2023 of NOK 87 million (-2) is excluded from adj. EBITA
• Net profit of NOK 138 million (79)
• Net cash flow from operating activities was NOK 501 million (192)
• Earnings per share NOK 0.48 (0.28)

Highlights H1 2024

• Solid growth in income after external project costs of 7 percent to NOK 4 760 million (4 456)
• Negative calendar effects of NOK 34 million due to one less working day in H1 2024 compared to last year
• Organic growth of 6 percent adjusted for calendar effects
• Adj. EBITA was NOK 490 million (493) with an adj. EBITA margin of 10.3 percent (11.1)
• Adj. EBITA margin was 10.9 percent, adjusted for calendar effects
• Expenses for the employee share program 2023 of NOK 164 million (-2) is excluded from adj. EBITA
• Net profit of NOK 242 million (362)
• Net cash flow from operating activities was NOK 685 million (452)
• Earnings pr share NOK 0.85 (1.30)

Comments from CEO Egil Hogna:

“Norconsult’s positive development continued in the second quarter, and the Group delivered another quarter with solid growth and stable profitability. The organic growth is mainly driven by a higher number of employees and increased average billing rates”

Outlook:

The overall market is still affected by uncertainty influenced by macroeconomics.

There are small signs of improvement in the market for Buildings & Architecture, while we expect high activity and healthy demand from the energy markets, and a mixed development in the industry markets. The demand in the infrastructure market is expected to be quite stable going forward. We do notice some delay and uncertainty 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 economy in general. We continue to expect a relatively stable market outlook going forward, despite the macroeconomic uncertainties.

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.

The live webcast can be accessed at:

https://api.screen9.com/preview/MuWX-T1bi97sY8nqotDKe7Kyg7IREAMLzGbfdJ6GeyrP0DHnNuOI8NQKxeDs1llu

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.