Norconsult ASA: Q3 2024 - Solid growth and improved profitability

Sandvika, 7 November 2024 (OSE: NORCO): Income after external project costs increased with 13 percent compared to the third quarter last year. Organic growth adjusted for calendar effects was 11 percent. The adjusted EBITA margin adjusted for calendar effects was 8.6 percent in the quarter, up from 6.4 percent in the same quarter last year.

Highlights Q3 2024

• Solid growth in income after external project costs of 13 percent to NOK 1 924 million (1 705)
• Negative calendar effects of NOK 4 million
• Organic growth of 11 percent adjusted for calendar effects
• Adj. EBITA was NOK 162 million (108) with an adj. EBITA margin of 8.4 percent (6.4)
• Adj. EBITA margin was 8.6 percent, adjusted for calendar effects
• Expenses for the employee share program 2023 of NOK 83 million (0) is excluded from adj. EBITA
• Net profit of NOK 53 million (80)
• Earnings per share (EPS) NOK 0.18 (0.28)

Highlights YTD Q3 2024

• Growth in income after external project costs of 8 percent to NOK 6 684 million (6 161)
• Negative calendar effects of NOK 38 million
• Organic growth of 7 percent adjusted for calendar effects
• Adj. EBITA was NOK 652 million (601) with an adj. EBITA margin of 9.8 percent (9.8)
• Adj. EBITA margin was 10.3 percent, adjusted for calendar effects
• Expenses for the employee share program 2023 of NOK 247 million (-3) is excluded from adj. EBITA
• Net profit of NOK 295 million (442)
• Earnings per share (EPS) NOK 1.03 (1.57)

Comments from CEO Egil Hogna:

“The third quarter figures, influenced by seasonality and summer holidays in the Nordic region, demonstrated a quarter with solid growth and improved profitability”

Outlook:

The overall market is still affected by uncertain macroeconomics.

There are small signs of improvement in the private market for Buildings & Architecture, while we now see a bit more uncertainty in the demand from local municipalities in Norway. We expect high activity and healthy demand from the energy sector, 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 across markets.

Norconsult has considerable flexibility with 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. Overall, we continue to expect a relatively stable market outlook going forward, despite the macroeconomic uncertainties.

In order to compensate for inflation and increasing cost levels, 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/registration/jEbwL86LWTbHHe0W99FS2Lnz7FGjTt6UZdatcdEa68hdPKWMdZxxTZucZOPZX6Lv

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 considered to be inside information pursuant to the EUR Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock exchange release was published by Elin Spieler, Head of Treasury and Investor Relations Manager, Norconsult ASA at the date and time as set out above.

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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 6,500 employees across around 140 offices in Norway, Sweden, Denmark, Iceland, Poland and Finland.