Norway's NRC Group Q2 revenue falls
Norway's NRC Group Q2 revenue falls
Overview
Norway rail infrastructure firm's Q2 revenue declined yr/yr
Q2 EBIT margin rose to 3.6% despite NOK 71 mln legal charge
Operating cash flow more than doubled from prior year
Outlook
For 2026, co expects revenue at about NOK 7.5 billion and a margin above 3.0%, measured at constant exchange rates
Co's long-term target is generating more than NOK 10 billion of revenue with an EBIT-margin above 5.0% in 2028
Result Drivers
PROFITABILITY IMPROVEMENT - Co said underlying profitability improved in Norway, Sweden, Finland and Machine business units
LEGAL CHARGE IMPACT - Co recorded NOK 71 mln one-off legal charge related to Swedish project from 2018
ORDER INTAKE - Co said Q2 order intake rose to NOK 2,046 mln, driven by contracts in Norway, Sweden and Finland
Company press release: ID:nMFN9mmj4y
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | NOK 1.70 bln | NOK 1.72 bln (2 Analysts) |
Q2 Operating Cash Flow |
| NOK 180 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy."
Wall Street's median 12-month price target for NRC Group ASA is NOK8.45, about 8.1% above its August 12 closing price of NOK7.82
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)