NRC Group ASA – Third quarter 2023 results

NRC Group today published its financial results for the third quarter of 2023.

CEO Anders Gustafsson and CFO Ole Anton Gulsvik will present the results at 09:30 am (CET) at House of Oslo, Ruseløkkveien 34, Oslo.

The presentation will also be webcast live on the following link:

https://channel.royalcast.com/landingpage/hegnarmedia/20231124_2/

The presentation will be followed by a live Q&A-session. Investors, analysts and journalists are welcome to participate at House of Oslo or follow the presentation digitally, where questions can be submitted during the event.

3rd quarter:

• Revenue of NOK 1,844 million (NOK 1,988 million), -7% growth and -13% organic growth
• Operating profit (EBIT adj.) of NOK 80 million (NOK 91 million), corresponding to a margin of 4.3% (4.6%)
• Order backlog reduced from NOK 8,610 million to NOK 6,613 million explained by a book-to-bill ratio of 0.4x in the quarter
• Financial improvement in Norway and Sweden continues, while profitability in Finland has decreased 
• Operating cash flow of NOK 12 million (NOK 96 million) due to increased working capital. Net interest-bearing debt increased by NOK 25 million to NOK 992 million
• Tender pipeline within Rail construction remains strong across all segments

Year to date:

• Revenue of NOK 4,932 million (NOK 5,075 million)
• Operating profit (EBIT adj.) of NOK 96 million (NOK 110 million), corresponding to a margin of 2.0% (2.2%)
• Operating cash flow of NOK 70 million (NOK 75 million) and net interest-bearing debt at NOK 992 million (NOK 950 million at year-end 2022)
• Successful completion of the sale of the Gravco business unit in first quarter
• In Q1, the Civil construction division in Sweden was decided to be discontinued, and in Q3 disposal of the business has been completed

Outlook:

NRC Group is strongly positioned in a growing market with a substantial tender pipeline. In 2024, NRC Group expects investments in rail to be at same level as in 2023, based on national budgets and national transportation plans in Norway, Sweden and Finland.

NRC Group continues its focus on measures to improve profitability. For 2023, NRC Group previously guided a slight decrease in revenue and a moderate increase in EBIT adj. margins compared to 2022. Following the development in Finland, we now expect an EBIT adj. margin in line with 2022 and still a slight decrease in revenue. The Group is confirming the commitment to achieving long-term profitability above 5%.

The forthcoming strategy period, navigating the Group from mid-2024 until the end of 2028, will be presented in a Capital Markets Update during May 2024.

The result report and result presentation can be found attached and will be available on the company’s homepage: www.nrcgroup.com

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 Charlotte Krog, Communication, NRC Group ASA, on 24 November 2023.