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NRC Group Interim / Quarterly Report 2025
3693_rns_2025-11-04_5f0fa76e-04ce-45b1-9209-a4aaf9e4cb19.pdf
Interim / Quarterly Report
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{0}------------------------------------------------
3 rd quarter 2025
CEO
Anders Gustafsson
CFO
Åsgeir Nord
{1}------------------------------------------------
Summary from CEO
- Third quarter confirms that we are on the right track
- Order backlog at solid levels
- Improved margin to 3.6% shows disciplined approach and strategic focus
- Reduced cash flow expect cash release during Q4
- Timing effects in Finland and Sweden impact revenue on short term
- Moderate order intake, strong start for fourth quarter
- Market outlook for sustainable infrastructure remains favorable
- Confident on 2025 EBIT-margin, range of NOK 135-140 million
- Will report on two additional segments, Machines and Special Operations (Gunnar Knutsen and NRC Kept), from 2026
- Expect more than 3.0% in margin and approximately NOK 7.5 billion in revenue in 2026
{2}------------------------------------------------
Third quarter with profit improvement
Key figures Q3 2025
Revenue
► NOK 1.8 billion
Q3 2024: NOK 2.1 billion
Order intake
► NOK 0.9 billion
Q3 2024: NOK 1.0 billion
EBIT
► NOK 65 million
Q3 2024: NOK 40 million
Operating cash flow
► NOK -95million
Q3 2024: NOK -48 million
EBIT margin
≥ 3.6%
Q3 2024: 1.9%
Order backlog
► NOK 8.5 billion
Q3 2024: NOK 6.8 billion
{3}------------------------------------------------
Order backlog at solid levels
Backlog
Order intake & Book-to-bill LTM Order backlog (total)1 Order backlog execution1
NOK million
NOK million NOK million
NRC Group expects the Book-to-bill to exceed 1.0x from Q4 and onwards
- In Q4 2024 a new principle for order backlog recognition was implemented. Order backlog figures for periods preceding this have not been restated. In addition, order backlog for Maintenance contracts in Sweden have been revised (increased) in Q3. The numbers for 2024 and 2025 are not directly comparable.
{4}------------------------------------------------
Lowest figure since we started measuring LTI systematically
Health and safety
LTI1 Serious injuries2 Sickness absence
-
- LTI: Injuries resulting in absence at least one full day per million man-hours (incl. subcontractors)
-
- Injury that results in prolonged disability
{5}------------------------------------------------
Solid EBIT, temporarily decrease in revenue mainly due to timing effect
Profit & loss
Revenue LTM
NOK million
EBIT LTM
NOK million and percent
| (Amounts in NOK million) | Q3 2025 | Q3 2024 | YTD Q32025 | YTD Q32024 | FY 2024 |
|---|---|---|---|---|---|
| Revenue | 1 818 | 2 103 | 4 845 | 5 156 | 6 892 |
| Operating expenses | -1 700 | -2 015 | -4 589 | -5 104 | -6 790 |
| Other income and expenses | 0 | 0 | 0 | -59 | -77 |
| Depreciation and amortisation | -53 | -48 | -158 | -142 | -844 |
| EBIT | 65 | 40 | 98 | -800 | -820 |
| EBIT margin | 3.6% | 1.9% | 2.0% | -15.5% | -11.9 % |
| EBIT Margin | 0.070 | ||||
| 251111101911 | |||||
| Net financial items | -23 | -20 | -66 | -62 | -81 |
| -20-18 | -660 | -62-18 | -81-18 | ||
| Net financial items Share of loss from associates | -23 | ||||
| Net financial items Share of loss from associates and JVs | -230 | -18 | 0 | -18 | -18 |
Notes
- ► EBIT was NOK 65 million in the quarter, significantly up from third quarter last year
- Revenue down from third quarter last year due to i) timing effects in Sweden and Finland, ii) reduction of change orders and iii) a reduced order intake in the quarter
- Robust revenue growth expected from second quarter 2026
{6}------------------------------------------------
Restored profit – order backlog renewal remains priority
Operational review NRC Group Norway
2 247 2 136 2 091 2 061 2 030 2 016 2 073 2 125 2 108 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25
Key figures Notes
| (NOK million) | Q3 2025 | Q3 2024 |
|---|---|---|
| Revenue | 552 | 569 |
| EBIT | 19 | 12 |
| EBIT margin | 3.4% | 2.2 % |
| Order intake | 417 | 282 |
Order backlog (total)
- Steady improvement in EBIT from same quarter last year
- Gunnar Knutsen continues to deliver solid results
- ETM-project nearly completed, preparing final settlement
- Order backlog needs strengthening, especially within civil
{7}------------------------------------------------
Profit trends upward despite decreased revenue
Operational review NRC Group Sweden
Order backlog (total)1
Key figures Notes
| (NOK million) | Q3 2025 | Q3 2024 |
|---|---|---|
| Revenue | 592 | 701 |
| EBIT | 10 | 10 |
| EBIT margin | 1.8% | 1.4 % |
| Order intake | 190 | 294 |
- Decreased revenue from same quarter last year, mainly due to decline in the Rail division. Timing effect for certain projects, especially rail project in Nyköping, and less change orders.
- Increased margin compared to last year on lower revenue
- Weak order intake for the quarter, strong start in Q4
- Order backlog at robust levels
- In Q4 2024 a new principle for order backlog recognition was implemented. Order backlog figures for periods preceding this have not been restated. In addition, order backlog for maintenance contracts was revised (increased) as of Q3. The increase is not included in the order intake for the quarter. The numbers for 2024 and 2025 are not directly comparable.
{8}------------------------------------------------
Significant increase in profits – despite revenue timing effects
Operational review NRC Group Finland
Revenue LTM NOK million
Key figures
| (NOK million) | Q3 2025 | Q3 2024 |
|---|---|---|
| Revenue | 682 | 841 |
| EBIT | 52 | 31 |
| EBIT margin | 7.7 % | 3.7 % |
| Order intake | 293 | 393 |
Order backlog (total)1
Notes
- Significant improvement in EBIT from third quarter last year
- Revenue reduced from same quarter last year, mainly caused by timing effects in light-rail and the maintenance area, in addition to reduced rail and materials volumes.
- Expect revenue growth from second quarter 2026
In Q4 2024 a new principle for order backlog recognition was implemented. Order backlog figures for periods preceding this have not been restated.
{9}------------------------------------------------
Reduced cash flow, cash release expected in the fourth quarter
Cash flow and working capital
Net working capital (NWC)
NOK million
Cash flow from operations
NOK million
Change in cash Q3 2025
NOK million
{10}------------------------------------------------
Net interest-bearing debt, maturity profile and leverage ratio
Financial position
{11}------------------------------------------------
Solid headroom on all covenants
Financial covenants
| Bank term loan and overdraft facility | Covenant Q3 25 | Calculated Q3 25 |
|---|---|---|
| Minimum adj. EBITDA LTM | > NOK 210 million | NOK 301 million |
| Minimum available liquidity | > NOK 75 million | NOK 384 million |
| Equity ratio | ≥ 25 % | 39 % |
| Borrowing base | ≤ 60 % of accounts receivables | 2 % |
| Leverage ratio | Suspended until Q4 25 (≤ 3.25)1 | 3.2 |
| Interest coverage ratio | Suspended until Q4 25 (≥ 3.0)1 | 3.4 |
Bond
| Equity ratio | ≥ 25 % | 39 % |
|---|---|---|
| Interest coverage ratio | > 2.02 | 3.5 |
-
- The waiver was lifted in Q3 25 as the company is in full compliance with all covenant requirements
-
- Increases to 2.5 from Q4 and onwards
{12}------------------------------------------------
Q3 2025
Summary
Financials
- Third quarter confirms we are on the right track
- EBIT of NOK 65 million in the quarter (3.6%)
- Moderate order intake, strong start for fourth quarter
- Market outlook for sustainable infrastructure remains favorable, order backlog at NOK 8.5 billion
- Confident on 2025 guiding of more than 2.0% EBIT-margin, in range of NOK 135 140 million for full year
Operations
- Improved margin shows disciplined approach and strategic focus
- Timing effects in Finland and Sweden impacts revenue growth
- ETM is largely finalised, documentation is remaining
- Will report on two additional segments, Machines and Special Operations, from 2026
{13}------------------------------------------------
Guiding
Targets for long-term strategy
| 2025 | 2026 | 2028 targets | |
|---|---|---|---|
| Revenue | <nok 7<br="">bn | ~NOK 7.5 bn | >NOK 10 bn |
| EBIT margin | >2.0%NOK 135 -140 million | >3.0% | >5.0% |
| Linear profit improvement towards 2028 |
{14}------------------------------------------------
Q4 2025 results 17 February
{15}------------------------------------------------
Appendix
{16}------------------------------------------------
Interim condensed consolidated statement of profit or loss
| (Amounts in NOK million) | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | FY 2024 |
|---|---|---|---|---|---|
| Revenue | 1 818 | 2 103 | 4 845 | 5 156 | 6 892 |
| Operating expenses | -1 700 | -2 015 | -4 589 | -5 104 | -6 790 |
| Other income and expenses | 0 | 0 | 0 | -59 | -77 |
| EBITDA | 118 | 88 | 256 | -8 | 25 |
| Depreciation | -49 | -45 | -148 | -132 | -181 |
| EBITA | 69 | 43 | 108 | -140 | -156 |
| Amortisation and impairment | -3 | -3 | -10 | -660 | -664 |
| Operating profit/loss (EBIT) | 65 | 40 | 98 | -800 | -820 |
| Net financial items | -23 | -20 | -66 | -62 | -81 |
| Share of profit from associates and joint ventures | 0 | -18 | 0 | -18 | -18 |
| Profit/loss before tax (EBT) | 42 | 2 | 32 | -881 | -919 |
| Taxes | -11 | -11 | -11 | -6 | -81 |
| Net profit/loss | 31 | -9 | 21 | -887 | -1 000 |
| Profit/loss attributable to: | |||||
| Shareholders of the parent | 31 | -9 | 21 | -887 | -1 000 |
| Non-controlling interests | 0 | 0 | 0 | 0 | 0 |
| Net profit / loss | 31 | -9 | 21 | -887 | -1 000 |
| Earnings per share in NOK (ordinary) | 0.18 | -0.13 | 0.12 | -12.17 | -10.54 |
| Earnings per share in NOK (diluted) | 0.17 | -0.13 | 0.12 | -12.17 | -10.54 |
{17}------------------------------------------------
Interim condensed consolidated statement of financial position
| (Amounts in NOK million) | Note | 30.09.2025 | 30.09.2024 | 31.12.2024 |
|---|---|---|---|---|
| ASSETS | ||||
| Deferred tax assets | 1 | 45 | 104 | 37 |
| Goodwill | 1 | 1832 | 1 830 | 1 829 |
| Other intangible assets | 14 | 22 | 21 | |
| Intangible assets | 1891 | 1 956 | 1886 | |
| Fixed assets | 115 | 150 | 146 | |
| Right-of-use assets | 418 | 441 | 427 | |
| Other non-current assets | 2 | 1 | 3 | |
| Total non-current assets | 2 425 | 2 549 | 2 462 | |
| Inventories | 33 | 30 | 25 | |
| Receivables | 6 | 1 985 | 1 962 | 1 723 |
| Cash and cash equivalents | 0 | 7 | 357 | |
| Assets classified as held for sale | 4 | 25 | 42 | 36 |
| Total current assets | 2 043 | 2 042 | 2 141 | |
| Total assets | 4 468 | 4 590 | 4 602 | |
| EQUITY AND LIABILITIES Equity | 2.476 | 3.706 | 2.420 | |
| Paid-in-capital | 2 436 | 2 396 | 2 429 | |
| Other equity | -683 | -821 | -719 | |
| Total equity | 1 753 | 1 575 | 1 710 | |
| Liabilities | ||||
| Pension obligations | 6 | 9 | 6 | |
| Long-term leasing liabilities | 247 | 272 | 259 | |
| Other non-current interest-bearing liabilities | 5 | 476 | 532 | 518 |
| Deferred taxes | 0 | 0 | 0 | |
| Other non-current liabilities | 0 | 3 | 0 | |
| Total non-current liabilities | 730 | 816 | 783 | |
| Short-term leasing liabilities | 144 | 144 | 145 | |
| Other current interest-bearing liabilities | 5 | 74 | 58 | 58 |
| Other current liabilities | 1 741 | 1 956 | 1872 | |
| Liabilities directly associated with assets held for sale | 4 | 27 | 42 | 34 |
| Total current liabilities | 1986 | 2 199 | 2 110 | |
| Total equity and liabilities | 4 468 | 4 590 | 4 602 |
{18}------------------------------------------------
Interim condensed consolidated statement of cash flows
| (Amounts in NOK million) | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | FY 2024 |
|---|---|---|---|---|---|
| Profit/loss before tax | 42 | 2 | 32 | -881 | -919 |
| Depreciation, amortisation and impairment | 53 | 48 | 158 | 792 | 844 |
| Taxes paid | -4 | -1 | -15 | -9 | -8 |
| Net financial items | 23 | 22 | 63 | 63 | 81 |
| Gain from sale of property, plant and equipment | -18 | -3 | -22 | -11 | -16 |
| Share of profit from associates and joint ventures | 0 | 18 | 0 | 18 | 18 |
| Change in working capital and other accruals | -190 | -134 | -378 | -140 | 30 |
| Net cash flow from operating activities | -95 | -48 | -162 | -167 | 31 |
| Purchase of property, plant and equipment | -3 | -3 | -15 | -38 | -49 |
| Acquisition of companies, net of cash acquired | 0 | 0 | 0 | 4 | 4 |
| Investments in associates and joint ventures | 0 | 0 | -4 | 0 | -2 |
| Net proceeds from sale of property, plant and equipment | 35 | 8 | 37 | 56 | 60 |
| Proceeds from subsidiaries and AC | 4 | 0 | 4 | 0 | -13 |
| Net cash flow from investing activities | 36 | 5 | 22 | 22 | 3 |
| Net proceeds from issue of shares | 0 | 0 | 0 | 0 | 236 |
| Net proceeds from borrowings | 16 | 0 | 16 | 0 | 0 |
| Repayment/repurchase of borrowings | -15 | -15 | -44 | -43 | -57 |
| Payments of lease liabilities | -42 | -41 | -124 | -124 | -164 |
| Interest paid | -20 | -19 | -61 | -60 | -78 |
| Net proceeds from acquisition/sale of treasury shares | 1 | 1 | 3 | 2 | -3 |
| Net cash flow from financing activities | -59 | -72 | -209 | -225 | -67 |
| Tabel and flow for the ancied | -119 | -116 | -349 | -370 | -33 |
| Total cash flow for the period | |||||
| Cash and cash equivalents at the start of the period | 123 | 120 | 357 | 369 | 369 |
| Translation differences | -4 | 4 | -8 | 8 | 21 |
| Cash and cash equivalents at the end of the period | 0 | 8 | 0 | 8 | 357 |
| Hereof presented as: | |||||
| Free cash | 0 | 8 | 0 | 8 | 357 |
| Restricted cash | 0 | 0 | 0 | 0 | 0 |
{19}------------------------------------------------
Reconciliation of EBIT adj. from EBIT
| (Amounts in NOK million) | Q3 2025 | Q3 2024 | YTD 2025 | YTD 2024 | FY 2024 |
|---|---|---|---|---|---|
| Operating profit/loss (EBIT) | 65 | 40 | 98 | -800 | -820 |
| Adjusting items | |||||
| M&A revenue & expenses 1 | -5 | 0 | -5 | -4 | -4 |
| Restructuring recycling and demolition business 2 (NRC Kept) | 0 | 0 | 0 | 63 | 74 |
| Restructuring items, other | 0 | 0 | 0 | 0 | 7 |
| Impairment of goodwill (Norway) | 0 | 0 | 0 | 150 | 150 |
| Impairment of goodwill (Finland) | 0 | 0 | 0 | 500 | 500 |
| Adjusting items, total | -5 | 0 | -5 | 709 | 727 |
| EBIT adj. | 60 | 40 | 93 | -91 | -93 |
| Depreciation | 49 | 45 | 148 | 132 | 181 |
| Amortisation of IT software investments | 3 | 3 | 10 | 10 | 14 |
| EBITDA adj. | 113 | 88 | 251 | 51 | 102 |
{20}------------------------------------------------
High demand for infrastructure – continued robust tender pipeline
NOK 25 billion tender pipeline in Group1 Notes
BNOK value, next 9 months (submission)
- Continued high tender pipeline across all countries
- Foundation for future profitable growth for NRC Group
- Governmental support to upgrade and build sustainable infrastructure, presents significant opportunities (10 years National Transportation Plans)
- Q3 2025: NOK 4 billion from Finland not included in tender pipeline (Turku and Helsinki Alliance projects still in design phase. Amount is related to construction phase)
- NRC Group estimates. Assumes 50% share of alliance contracts in light rail.
{21}------------------------------------------------
Disclaimer
This draft presentation (hereinafter referred to as the "Presentation") has been prepared exclusively for information purposes and does not constitute an offer to sell or the solicitation of an offer to buy any financial instruments.
This Presentation includes and is based on, among other things, forwardlooking information and statements. Such forward-looking information and statements are based on current expectations, estimates and projections. Such forward-looking information and statements reflect current views with respect to future events and are subject to risks, uncertainties and assumptions. We cannot give any assurance as to the correctness of such information and statements.
Several factors could cause the actual results, performance or achievements of the companies mentioned herein to be materially different from any future results, performance or achievements that may be expressed or implied by statements and information in this Presentation, including, among others, risks or uncertainties associated with the company's business, segment, development, growth management, financing, market acceptance and relations with customers, and, more generally, general economic and business conditions, changes in domestic and foreign laws and regulations, taxes, changes in competition and pricing environments, fluctuations in currency exchange rates and interest rates and other factors.
Should one or more of these risks or uncertainties materialise, or should underlying assumption prove incorrect, actual results may vary materially from those described in this document. We do not intend, and do not assume any obligation, to update or correct the information included in this Presentation.
There may have been changes in matters which affect the companies herein subsequent to the date of this Presentation. Neither the issue nor delivery of this Presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the company/companies have not since changed, and we do not intend, and do not assume any obligation, to update or correct any information included in this Presentation.
This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts with Oslo City Court AS exclusive venue.
