Veidekke: Q2 2024 results

Veidekke achieved revenues of NOK 10.8 billion in Q2, and a profit before tax of NOK 484 million. The group’s order book totalled NOK 41.1 billion at quarter-end. The profit per share was NOK 2.7.

“Veidekke maintained a high level of activity and delivered a year-on-year improvement in both profits and profitability,” says Group CEO Jimmy Bengtsson.

“Our operations are solid, and even with somewhat lower earnings, we improved our profits significantly compared to the second quarter of last year. Infrastructure Norway made the greatest progress, and I am particularly pleased about the improvements achieved by the asphalt operation,” says Bengtsson.

“The group’s order book remains strong thanks to a broad-based and substantial Q2 order intake. We expect activity levels to remain high for the infrastructure operations, with many interesting projects available in the market. Construction Norway’s order book is robust, although revenues will stay below last year’s levels in the quarters ahead. Construction Sweden’s order book reflects both a decline in the residential market and our ongoing organisational restructuring. We do not anticipate any change in outlook in the short term,” says Jimmy Bengtsson.

Veidekke achieved revenues of NOK 10.8 billion in Q2 2024, compared to NOK 11.2 billion in the second quarter of 2023. Revenues increased for Infrastructure Norway and Denmark, and were stable for Infrastructure Sweden, while the construction operations in Norway and Sweden reported a slight drop in earnings.

The quarterly profit before tax amounted to NOK 484 million, up 25% from NOK 387 million in Q2 2023. With the exception of Construction Norway, all of the operations improved their profit performance year-on-year. Overall, the profit margin was 4.5%, compared to 3.5% in the second quarter of 2023.

The group’s quarterly order intake was NOK 9.8 billion, compared to NOK 12.2 billion in the same period last year. At quarter-end, the order book amounted to NOK 41.1 billion, down from NOK 45.0 billion at the same time last year but up from NOK 40.4 billion at the beginning of the year. Some 54% of the order book will be converted into revenue in the next 12 months.

Net interest-bearing assets totalled NOK 1.0 billion as at 30 June 2024, compared to NOK 1.1 billion one year ago. Cash flow from operational activities in the first half of the year amounted to NOK -123 million, down from NOK 499 million in the first half of 2023. The statement of financial position totalled NOK 17.5 billion as at 30 June, up from NOK 16.8 billion at the same time last year.

In the second quarter there was a fatality at a Veidekke project in Malmö. The police and the Swedish Work Environment Authority are investigating the cause of the incident. Thus far there is no indication that it can be linked to a work operation.

The group’s LTI (lost time injury) rate was 2.8 in the second quarter, compared to 4.6 in the preceding quarter and 3.7 in Q2 2023. No serious injuries occurred during the quarter. The quarterly sick leave rate was 5.3%, compared to 6.4% in the preceding quarter and 4.2% in the second quarter of last year.

Revenues totalled NOK 20.3 billion in the first half of 2024, compared to NOK 20.6 billion in the first half of 2023. The pre-tax profit for the first half-year amounted to NOK 509 million, up from NOK 240 million in the same period last year. The result for the first half of 2023 included a settlement with the Norwegian Public Roads Administration related to a project involving a stretch of the E39 motorway (Svegatjørn–Rådal), which had a negative profit effect of NOK -110 million. The profit margin totalled 2.5% as at 30 June 2024, compared to 1.2% one year ago.

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.