Eqva ASA

Earnings Release • Nov 14, 2024

EQVA ASA: Third quarter results 2024 – Strong performance, guidance increased for full-year sales

EQVA ASA: Third quarter results 2024 – Strong performance, guidance increased for full-year sales

14 November 2024: EQVA ASA (OSE: EQVA) delivered strong performance in the third quarter of 2024. Our Consolidated Statement of Profit and Loss shows a YTD group revenues of NOK 751 million, demonstrating a growth of 59 percent compared to the corresponding period in 2023 (NOK 471 million adjusted for discontinued operations). The YTD EBITDA was NOK 70 million (NOK 26 million same period in 2023 adjusted for discontinued operations). The EBITDA margin was 9.3 percent, up from 5,5 percent YTD Q3 2023.

After the acquisition of Kvinnherad Elektro and Vassnes Group we have prepared our third quarter presentation on a pro forma basis as if the acquisition was from the beginning of the year. Following EQVA shows a pro forma YTD group revenues of NOK 935 million (NOK 602 million). The YTD EBITDA was NOK 79 million (NOK 26 million same period 2023). The EBITDA margin was 8.4 percent, up from 4.3 percent same period 2023.

EQVA's main operational segment, Products, Solutions & Renewables, recorded a 50 per cent year-over-year growth, with BKS as the primary driver. The YTD pro forma EBITDA in the third quarter was NOK 62 million (NOK 33 million same period in 2023), resulting in 89 percent EBITDA growth year-over-year. The EBITDA margin for the segment was 6,8 percent, compared with 5,4 percent last year.

“EQVA delivered another strong quarter, continuing the positive trend we have seen in the last quarters. The Products, Solutions & Renewables segment experiences high activity across businesses and projects, resulting in significant volume and margin growth,” says CEO Even Matre Ellingsen.

The orderbook at the end of the third quarter of 2024 was NOK 757 million, boosted by a significant contribution of NOK 206 million from acquired power & automation companies Kvinnherad Elektro and Vassnes group. For comparison, the orderbook was NOK 487 million at year-end 2023 and NOK 556 million last quarter. The group expects continued robust order intake and high activity level going into 2025.

Nordic Industrial Solutions (NIS) enhances capacity as a total supplier of industrial services

EQVA ASA currently has three business areas: Nordic Industrial Solutions (NIS), hydropower (Fossberg Kraft), and real estate.

NIS was established as a separate subsidiary earlier this year and will be the main driver of growth in the new corporate structure. Recently, NIS expanded its service area with power and automation expertise through the acquisition of Kvinnherad Elektro and Vassnes Group, a business expected to contribute significantly to EQVA’s bottom line over time.

“This was a strategically important acquisition for us. In NIS, we are now beginning to see the contours of a total supplier of industrial services to land-based industry, ongoing maintenance, upgrades, and life extension. Over time, it will be natural to list NIS as a separate company on the stock exchange, but for now, we are focusing on clarifying the value within Eqva, says Matre Ellingsen.

Updated outlook for 2024 with increased guidance for full-year sales

EQVA operates in markets that continue to be challenged by inflation, high interest rates, and general uncertainty. Despite this, the company benefits from its flexible business model, diversified services, and a strong reputation among its Norwegian customers, investors, and other business partners.

EQVA estimates 2024 revenues in the range of NOK 1 000 – 1 200 million (NOK 750 – 850 million), an increase of NOK 300 million from the previous Q2 2024 guiding. The company expects EBITDA margin in the range of 5-6 percent (6-8 percent), with a long-term EBITDA margin target between 7-9 percent. Higher sales of flow-through goods boost revenue against prior estimates but reduce margin due to lower profit from these goods compared to direct labor sales.

Hence, EQVA reaffirms its positive outlook and increases its guidance for full-year sales with the inclusion of Kvinnherad Elektro and Vassnes Group on a pro forma basis.

“We entered 2024 with solid growth and are very proud to have delivered well above what we initially anticipated. Customer response has been strong, and we are now well positioned in a market that shows clear signs of continued growth. Moving forward, we anticipate a somewhat more moderate growth pace. We believe this will be more sustainable over time, while we continue to seek attractive acquisition opportunities,” says Matre Ellingsen.

A presentation of the results will be held by CEO Even Matre Ellingsen and CFO Petter Sørdahl. The presentation will be available on the company’s web site www.eqva.no and https://vimeo.com/event/4708586 from 09:00 CET.

For more information, please contact:

Even Matre Ellingsen, Chief Executive Officer: + 47 990 05 500

Petter Sørdahl, Chief Financial Officer: +47 917 56 147

EQVA ASA in brief

EQVA ASA is a knowledge-based active owner of engineering, construction and service companies that contribute to the green transition in maritime, power intensive and renewable industries.

The group has a well-diversified product and market portfolio, and further growth will be established through a combination of company-based development, utilization of synergies between the companies in the group as well as value-creating M&A activities.

Key companies in the group are BKS, Kvinnherad Elektro, Vassnes Group and Fossberg Kraft, each building on decades of experience and widely recognized by clients in a broad range of industries.

Read more on www.eqva.no

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