NRC Group ASA – Third quarter 2021 results

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Today, 9 November 2021, NRC Group has released its financial results for the third quarter 2021.

The company will host a physical presentation at 09.00 AM (CET), followed by a Q&A session, at House of Oslo, Ruseløkkveien 34, Oslo. The presentation will be held by CEO Henning Olsen and CFO Dag Fladby.

The event will also be livestreamed via:!/nrcgroup/20211109_1

Below you will find highlights and a summary from the report.


  • NOK 1.7 billion (NOK 2.0 billion)


  • NOK 102 million (NOK 88 million)
  • EBITA* margin 6.0% (4.5%)


  • Order intake of NOK 2.7 billion (NOK 1.2 billion)
  • Order backlog of NOK 7.6 billion (NOK 6.8 billion)


  • Operating cash flow of NOK 238 million (NOK 129 million)
  • Cash position of NOK 565 million (NOK 606 million)

*Before other income and expenses (M&A expenses)

Improved margins and strong order intake

Third quarter revenue was NOK 1,698 million compared to NOK 1,956 million for the same period of 2020. The revenue declined with 13% in the quarter, mainly due to lower revenue in Sweden in addition to some currency effects and lower revenue in Norway. Group EBITA* was NOK 102 million compared to NOK 88 million for the same period last year. The EBITA* margin increased to 6.0% from 4.5% in the same quarter last year due to improved profitability in all countries. The order intake in the quarter was solid with NOK 2,683 million and a book-to-bill ratio of 1.6. The cash flow from operation in the quarter was strong with NOK 238 million compared to NOK 129 million in the same quarter last year.

Finland had a revenue of NOK 793 million compared to NOK 831 million in the third quarter of 2020. The difference is mainly related to currency effects, with an organic growth of -1%. The profitability was solid with an EBITA of NOK 87 million compared to NOK 84 million in the same period of 2020, leading to an EBITA* margin of 10.9% for the quarter, up from 10.1% last year. The profitability is a result of good performance in all divisions.

Revenue from the Swedish operation amounted to NOK 411 million for the quarter compared to NOK 583 million in the same period of 2020. The organic growth in the quarter was -28%. The decline is related to the fierce price competition and low order book going into 2021. In the third quarter, the Swedish operation was awarded several important contracts improving the order book. EBITA* for the quarter was zero compared to NOK -7 million in the same period of 2020. The low revenue impacts the profitability negatively, while improved margins in the projects mitigate some of the effects.

Revenue in Norway was NOK 495 million compared to NOK 541 million in the third quarter of 2020. The organic growth was -8% in the quarter mainly explained by lower activity in rail construction. EBITA* was NOK 20 million compared to NOK 16 million in the same period of 2020, which lead to an EBITA* margin of 4.1% this quarter, up from 3.0% for the same period last year. The increased profitability is due to improved margins in all divisions.

Group operating profit (EBIT) for the quarter was NOK 89 million, an increase from NOK 70 million last year. Net financial items amounted to NOK -17 million for the quarter, compared to NOK -23 million for the same period last year.

Third quarter order intake was NOK 2,683 million, split on announced contracts of NOK 2,048 million and unannounced order intake of NOK 634 million. The order backlog amounted to NOK 7,647 million at the end of September, an increase of NOK 954 million from last quarter.

In Norway, new orders included an appointed contract by Bane NOR of NOK 760 million for electrification of Trønder- and Meråkerbanen. The contract will be a joint contract between our Norwegian and our Swedish organisation. The work will commence in October 2021, and the project is scheduled for completion in November 2024. NRC Group Norway was also appointed to a contract valued at NOK 105 million for mass transportation, scheduled for completion in January 2023. NRC Group Sweden was appointed to a contract by the Swedish Transport Administration, for signal related work on the railway connection between Gävle and Storvik. The contract is valued at approximately SEK 65 million. The work will commence in November 2021 and is scheduled for completion in September 2023. New orders in Finland included the Helsinki City Council approval of the construction phase of the Crown Bridges tramway. The contract will be executed as an alliance project and NRC Group Finland’s share of the contract is estimated to NOK 1,085 million. The contract includes construction of the tramway and other street construction projects to develop the city. According to the preliminary project schedule, track construction is planned to commence in late 2021 and the project is scheduled for completion in 2026. NRC Group Finland was also appointed to an announced contract valued at EUR 3.3 million during the third quarter.

The Group has identified an addressable tender pipeline of approximately NOK 20 billion for the next nine months. This compares to a NOK 20 billion tender pipeline three months ago and NOK 16 billion at the same time in 2020.

The tender pipeline in Finland is approximately NOK 3.9 billion, an increase of approximately NOK 1.1 billion compared to the tender pipeline three months ago. The tender pipeline is approximately NOK 1.2 billion higher than the same period last year.

In Sweden, the tender pipeline is approximately NOK 8.7 billion, a decrease of NOK 0.3 billion from the level three months ago. The tender pipeline is NOK 1.5 billion higher than the same period last year, which is mainly related to several larger rail construction projects coming into the market.

The tender pipeline in Norway is approximately NOK 7.4 billion, a decrease of NOK 0.9 billion compared to the tender pipeline three months ago, as the new government har decided to not privatise the maintenance market.

The announced maintenance project is thereby withdrawn from the market. The tender pipeline has increased approximately NOK 1.2 billion compared with the same time last year.

Update on Covid-19

NRC Group continues a sharp focus on adopting guidelines and policies to prevent and handle Covid-19 outbreaks. The Group monitors the development of the pandemic and its potential impact on the industry and on business continuity. The main risks are related to potential operational impact with new outbreaks and if restrictions reoccur. Entry restrictions have been lifted gradually in the Nordics. Nearly 90% are fully vaccinated in Norway, nearly 70% in Sweden and Finland.

NRC Group’s main priority is to keep employees safe while maintaining operations. The Group communicates regularly and transparently to equip teams for virtual working and safe project execution. The Group complies with restrictions and guidelines from relevant authorities and follows up with immediate actions when relevant and needed.

The Covid-19 pandemic has had limited financial impact for NRC Group to date. Still the long-term impact for the societies and people is characterised by uncertainty.


NRC Group is strongly positioned in a growing market with a substantial tender pipeline. Proposed national budgets and updated proposals of the National Transportation Plans with substantial long-term investments, confirm a positive market outlook.

NRC Group continues focus on execution of improvement measures to restore profitability. For 2021, the Group expects an EBITA* margin between 1.75% and 2.5%.

The third quarter 2021 result report and result presentation can be found attached and will be available on the company’s homepage:

For further information, please contact Dag Fladby, Chief Financial Officer, NRC Group ASA on tel: +47 90 89 19 35.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act. This stock exchange announcement was published by Cecilie Blaauw Cock, Marketing & Communication at NRC Group ASA, on 9 November 2021.