Financial review

Revenue and own production

Revenue

Revenue increased from DKK 3,806 million in 2023 to DKK 3,942 million in 2024, equalling 3.6% growth compared to 10% last year. The reduced revenue growth is caused by a deliberate reduction in exposure to turnkey projects.

Own production

Own production increased by DKK 311 million and reached DKK 2,660 million, reflecting a growth of 13% compared to 11% last year. The organic growth in own production was 6.0% and was in line with the expectations of 5-10%.

Growth in own production was realised across most markets and sectors. Within Process Industry, in the UK and in Poland, growth was driven by acquisitions, whereas growth within Building, Environment, Utility and Infrastructure, as well as in Denmark and Norway, was created organically.

Profit

EBITA margin

EBITA decreased by DKK 9 million, from DKK 167 million in 2023 to DKK 158 million in 2024, resulting in a reduced EBITA margin from 7.1% to 5.9%. Within Building and in Norway, profits remained very strong. Process Industry and Environment delivered margins close to targets, whereas parts of other segments and markets struggled to reach their targets.

The EBITA margin is slightly lower than anticipated. The decline in profitability is rooted in reduced productivity, mainly driven by increased sales costs in generally more challenging markets, integration of acquisitions, small pockets of temporarily idle resources, and a few large and strategically important infrastructure projects with low margins.

Despite reduced profits, investments in strategic business development, mainly directed towards opportunities related to the green energy transition and digitalisation, increased from DKK 17 million to DKK 27 million.

Based on these circumstances, the result for 2024 is regarded as satisfactory.

EBIT margin

During 2024, NIRAS completed three major business acquisitions, leading to an increase in goodwill amortisations of DKK 31 million compared to 2023. EBIT accordingly decreased from DKK 141 million to DKK 100 million, resulting in a reduction of the EBIT margin from 6.0% in 2023 to 3.8% in 2024.

Net profit

Net financial income was DKK 21 million compared to 14 million in 2023 and was positively impacted by an adjustment of an earn-out provision related to a business acquisition completed in 2022.

Net profit for 2024 was DKK 92 million compared to 115 million in 2023.

Balance and cash flow

Total assets increased by 1.9%, reaching DKK 2,067 million compared to DKK 2,026 million in 2023.

Intangibles, mainly related to business acquisitions, increased from DKK 147 million in 2023 to DKK 361 million at the end of 2024, equalling an increase from 7.2% to 17.4% of total assets.

Net interest-bearing cash was DKK 398 million compared to 469 million at the end of 2023.

Cash flow from operations decreased from DKK 204 million in
2023 to DKK 96 million in 2024.

The decrease is mainly related to a DKK 113 million cash
effect of increased working capital. The increase is a result of reduced prepayments from customers and lower level of accrued salary items from 2023 to 2024.

Total cash flow was DKK -71 million compared to
DKK 7 million in 2023. The decrease was affected by the above mentioned increase in working capital and by business
acquisitions which impacted by DKK 121 million in 2024.

Return on invested capital

Return on invested capital was 23% compared to 45% in 2023. This was caused by the lower operating profit in 2024 and, in particular, the higher level of invested capital due to the three major acquisitions in 2024.

FTE and headcount

The average number of full-time employees increased by 329 from 2,663 in 2023 to 2,992 in 2024, equalling 12%. FTE headcount reached 3,170 by the end of 2024.

Outlook for 2025

We expect to maintain our growth in both revenue and own production. The growth in own production is expected to reach a level of 5-10% across sectors and geographical markets.

The EBITA margin in 2025 is expected to increase compared to 2024 and be at a level of 6-7%.

The result will continue to be affected by significant investments in sustainability, digitalisation, and business development.