Multiconsult's Strong Performance in Q4 2024 Fuels Growth Prospects

Overview

Multiconsult ASA, listed on the OSE under the ticker MULTI, has expressed solid financial outcomes for the fourth quarter and the full year of 2024. Reporting an EBITA of NOK 98.0 million for the fourth quarter—a decrease from NOK 118.4 million in the same period last year—the company's full-year EBITA reached NOK 523.4 million, a substantial increase compared to NOK 419.5 million in 2023. The firm's strong performance can be attributed to high operational activity, leading to a well-maintained billing ratio of 72.5%, slightly up from last year.

Financial Highlights

In terms of net operating revenues, Multiconsult achieved NOK 1,443.3 million, marking a 6.0% increase from NOK 1,361.5 million the previous year. Adjusting for calendar effects, the organic revenue growth was noted at a remarkable 4.8%. The quarter's metrics reflect the company's strategic efforts and market demand, although it faced a NOK 7.1 million impact from the calendar effect. The EBITA margin for the quarter settled at 6.8%, compared to 8.7% from last year.

For the entire year, net operating revenues soared by 12.1% to NOK 5,383.6 million. This growth surfaces despite a challenging market atmosphere for sectors like housing and real estate. While the overall market remains positive, the architecture and engineering sectors face fluctuating price competitions.

Operational Insights

CEO Grethe Bergly highlighted in her remarks that the fourth quarter showcased a robust order intake, fuelled by consistent operational performance. The increase in demand for Multiconsult's services, particularly in sectors related to energy and environmental projects, signifies the competencies of their workforce. Multiconsult’s ongoing adaptation to evolving market needs has enabled them to secure contracts that align with their revised strategy, "Think Beyond," launched in November.

Furthermore, the full-time equivalents (FTE) within the company increased by 3.3%, emphasizing the growing capacities facilitated by new project acquisitions and hiring. Total net profit reported for Q4 was NOK 89.7 million, and the earnings per share were NOK 3.28, showcasing the company’s commitment to shareholder returns, as reflected in the proposed dividend of NOK 10.00 per share for 2024.

Future Outlook

Looking ahead, Multiconsult remains optimistic about the market’s trajectory, citing significant demand within defense and energy industries as key growth encompassing factors. As noted in the operational performance, the company expects stable public investments in infrastructure to support their business, while challenges in the real estate market may persist.

Multiconsult’s commitment to sustainability via multiple initiatives reaffirms its dedication to participating in the green transition. Their strategic alliances with firms like Statkraft and Equinor underscore their positioning within impactful growth sectors.

In conclusion, Multiconsult's strong performance in Q4 2024, driven by high activity levels and a diversified order backlog, lays a solid foundation for future growth. The company is well-positioned to navigate opportunities in emerging markets and meet the needs of its clients, justifying their stronghold in the architectural and engineering industry. As the year progresses, Multiconsult plans to fine-tune its strategies in line with market demands, continuing to innovate for the future.