Veidekke: Q1 2024 results

Veidekke achieved revenues of NOK 9.5 billion in the first quarter of the year, and a pre-tax profit of NOK 25 million. The group’s order book totalled NOK 41.2 billion at quarter-end.

“Veidekke maintained its momentum in the first quarter. Although market conditions remain challenging and the construction and infrastructure operations are showing quite different trends, we managed to keep activity levels up and the order book strong,” says Group CEO Jimmy Bengtsson.

“As usual, the first quarter was marked by a seasonal downturn for certain parts of the group. Despite achieving a year-on-year improvement in profitability, we see good opportunities to improve profitability further, and are continuing our efforts to realise this potential in all parts of the business,” says Bengtsson.

“The infrastructure market remains robust, and there are grounds for optimism despite difficult market conditions in the construction industry generally and the residential segment specifically. Our strong first-quarter order intake gives us a strong foundation going forward,” says Jimmy Bengtsson.

“In March, one of our asphalt factory employees suffered a serious work injury. People and their safety at work are Veidekke's top priorities. As always, the accident is being investigated, so that we can learn from the incident and avoid that similar accidents happen again,” says Group CEO Jimmy Bengtsson.

Veidekke achieved revenues of NOK 9.5 billion in Q1 2024, on par with the first quarter of 2023. The infrastructure operations improved their revenues, while the construction operations reported a slight drop in earnings.

The quarterly profit before tax amounted to NOK 25 million. In Q1 2023, the group made a loss of NOK -37 million, including an adjustment (totalling NOK -110 million) linked to a payment made in settlement of an older dispute involving Infrastructure Norway. With the exception of Infrastructure Sweden and Denmark, whose performances were on a par with Q1 2023, most of the group's operations delivered improved results. Overall, the profit margin was 0.3%, compared to -0.4% in the first quarter of 2023 (adjusted for the settlement).

The group’s quarterly order intake was NOK 10.2 billion, with more than 40% of received orders relating to commercial buildings. In contrast, the order intake in Q1 2023 was NOK 10.3 billion. At quarter-end, the order book amounted to NOK 41.2 billion, compared to NOK 43.1 billion at the same time last year and NOK 40.4 billion at the beginning of the year. Some 62% of the order book will be converted into revenue in the next 12 months.

Net interest-bearing assets totalled NOK 2.2 billion at the end of Q1 2024, compared to NOK 2.5 billion one year ago and NOK 2.8 billion at the beginning of the year. Quarterly cash flow from operational activities amounted to NOK -339 million, compared to NOK 320 million in the first quarter of last year. The statement of financial position totalled NOK 18.0 billion at quarter-end, compared to NOK 18.2 billion at the start of the year and NOK 17.6 billion in the corresponding quarter of last year.

The first-quarter LTI (lost time injury) rate was 4.6, compared to 6.6 in the preceding quarter and 3.9 in Q1 2023. One serious injury occurred during the quarter. The sick leave rate was 6.4%, compared to 6.0% in the preceding quarter and 6.2% in the first quarter of last year.

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

For more information, contact:
Jimmy Bengtsson, CEO, +47 984 70 000 
Lars Erik Lund, EVP, +47 413 31 369  
Jørgen Wiese Porsmyr, CFO, +47 907 59 058 

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Veidekke is one of Scandinavia's largest contractors. In addition to undertaking all types of building and civil engineering assignments, the group also maintains roads and produces asphalt and aggregates. Veidekke emphasises stakeholder involvement and local experience. Its annual turnover is approximately NOK 43 billion, and half of its 8,000 employees own shares in the company. Veidekke is listed on the Oslo Stock Exchange, and has posted a profit every year since its inception in 1936.