Dovre - Margins were soft despite growth
Dovre Q3 results came in mixed relative to our estimates in the sense that Renewable Energy grew a lot faster than we expected, while earnings were soft as the EUR 2.4m EBIT missed our estimate by EUR 0.5m. Dovre however retained its FY’24 guidance, which now implies relatively strong margins for Q4’24.
- Dovre Q3 revenue grew by 19.8% y/y to EUR 63.2m, compared to our EUR 57.6m estimate. Project Personnel amounted to EUR 25.1m vs our EUR 27.2m estimate, while Consulting was EUR 2.8m vs our EUR 3.6m estimate. Renewable Energy landed at EUR 35.3m, compared to our EUR 26.8m estimate. Renewable Energy has seen record high activity levels this year, as Q3 revenue grew by 72.5% y/y, thanks to several large solar and wind park construction projects in Sweden and Finland.
- EBITDA amounted to EUR 2.6m, compared to our EUR 3.1m estimate. EBIT was EUR 2.4m vs our EUR 2.9m estimate. Project Personnel EBIT landed at EUR 1.0m vs our EUR 1.3m estimate, whereas Consulting was EUR 0.3m vs our EUR 0.3m estimate. Renewable Energy EBIT came in at EUR 1.4m, compared to our EUR 1.6m estimate. Consulting managed a relatively strong profitability despite lower activity in Norway, as Finland has remained stable, while a large Canadian renewable energy project no longer contributed for Project Personnel following its completion last year.
- Dovre guides FY’24 revenue to be in the range of EUR 185-210m and EBIT of EUR 2-4m (unchanged). Q4’24 EBIT is thus implied to be at least EUR 2.7m.