Today, NRC Group launches its new strategy and ambitions for the next four years
as the most ambitious infrastructure builder in the Nordics. The plan for
profitable growth and long-term value creation is reflected in the following
financial targets for 2028:
. Revenue of more than NOK 10 billion
. EBIT adjusted margin above 5%
NRC Group will continue to strengthen the position in rail construction and
expand civil construction activities, leveraging the Group's established Nordic
market position and unique capabilities in selected attractive niche markets.
Maintenance, led by the rail business, remains an integral part of the offering
with opportunities to include other critical infrastructure over time.
Investments in rail and other critical infrastructure are expected to increase
from already historical high levels due to population growth, urbanisation and
growing activity related to defence, energy and water supply. This is reflected
in budget proposals and national transportation plans in Norway, Sweden and
Finland.
"By expanding into new target markets and leveraging our Nordic capabilities, we
are dedicated to realising our full potential as builders of critical and
sustainable infrastructure. The market outlook is positive, with growth evident
across all countries," says Anders Gustafsson, the CEO of NRC Group. "Megatrends
such as urbanisation, population growth and an intensified focus on critical
infrastructure related to defence, energy and water are strong factors driving
the markets we operate within. As we will prepare ourselves to win larger
contracts within the priority markets, we commit to continuous improvement to
ensure improved execution and cost-efficient operations."
The NRC Way
The updated strategy is founded on clearly defined success factors:
. Delivering operational excellence, ensuring top quality and added customer
value
. Building a unified, digital and cost-effective Nordic structure
. Creating a winning culture across the Nordics
The Group's key strategic enablers are summed up in the NRC way focused on
building winning positions in priority markets, improving project execution,
creating a Nordic spirit and collaborative culture, strengthening leadership,
and building with purpose. High-quality infrastructure enables modern societies
to grow and thrive. NRC Group builds for the future with minimal footprint, as
is reflected in an industry-leading 72% taxonomy alignment for 2023 revenue.
Updated long-term targets and strategic priorities
In the new strategy, NRC Group has set a long-term goal of generating more than
NOK 10 billion of revenue with an adjusted EBIT margin above 5% in 2028. NRC
Group had revenue of NOK 6.7 billion and a margin of 1.8% in 2023. To deliver on
the 2028 targets, the company has identified four strategic priorities:
improving margin in existing business, realising high margins in new markets,
growing revenue and ensuring a robust financial platform.
Following the recent years' transformation, NRC Group has established more
robust tendering and project execution processes in Norway, Sweden and Finland.
These are now further strengthened through unified Nordic project governance
standards with centralised tender processes, risk assessment methodologies and
financial management policies. Together with continued transition towards larger
contracts that enable improved utilisation and margins, these will support
profitable growth in the existing and new markets tied to energy, water and
defence.
NRC Group has a proven track record of delivering higher profitability on
projects within these attractive civil construction niches. Target markets
include renewable energy and power stations, water reservoirs and water supply,
quay facilities and projects aimed at improving the mobility of the armed forces
after Sweden and Finland joined Norway in NATO. The Group will also create a
stand-alone machine unit to optimise utilisation, capture synergies and increase
returns.
NRC Groups estimates a 35% growth in its addressable market from 2023 to 2028 to
NOK 82 billion, based on National Transportation Plans for Norway, Sweden and
Finland, national budgets and investment plans announced by relevant companies.
This provides a credible path to revenue and profitability targets, which is
already materialising in a growing order backlog and near-record tender
pipeline.
"We have built a strong foundation in the recent years and with the new clear
strategic priorities, we are positioned to deliver on the new strategy based on
building and maintaining critical infrastructure in our three prioritised
markets - Rail, Civil and Maintenance - across the Nordics," says Anders
Gustafsson.
Capital markets update and first quarter 2024 presentation today at 09:00 am
(CEST)
The CMU and first quarter presentation is held at Ruseløkkveien 26 (ABG Sundal
Collier), Oslo, and is expected to last approximately two hours, including Q&A.
The presentations will be given in Swedish/ English.
The presentation will also be broadcasted as a webcast on the following link:
https://channel.royalcast.com/webcast/hegnarmedia/20240523_4
The financial report and presentation will be made available under the company's
ticker "NRC" on www.newsweb.no and on the company's homepage: www.nrcgroup.com
For further information, please contact:
Anders Gustafsson, CEO of NRC Group, + 46 76-117 16 32
Ole Anton Gulsvik, CFO of NRC Group, +47 99 56 85 20
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 of the Norwegian Securities Trading Act. This stock exchange
announcement was published by Charlotte Krog, Communication, NRC Group ASA, on
23 May 2024.