Dovre - Slightly higher EBIT than estimated
Dovre’s Q2 results were a bit higher than we estimated as Project Personnel and Consulting came in slightly lower than we expected while Renewable Energy figures were clearly better.
- Dovre Q2 revenue increased by 7.5% y/y to EUR 50.9m vs our EUR 50.1m estimate. Project Personnel was EUR 25.3m, compared to our EUR 26.2m estimate, while Consulting landed at EUR 3.5m vs our EUR 4.2m estimate. Renewable Energy amounted to EUR 22.1m, compared to our EUR 19.7m estimate. Suvic has commenced work on several new renewable energy projects in Sweden and Finland while Renetec is advancing several solar projects.
- EBITDA was EUR 2.1m vs our EUR 2.0m estimate. EBIT came in at EUR 1.9m, compared to our EUR 1.8m estimate. Project Personnel EBIT amounted to EUR 0.7m vs our EUR 1.0m estimate while Consulting was EUR 0.2m, compared to our EUR 0.4m estimate. Renewable Energy was EUR 1.1m vs our EUR 0.7m estimate. Project Personnel profitability decreased due to a shift in project and client portfolio while Consulting’s Norwegian public sector activity was negatively affected by new temporary hiring legislation, which slowed down hiring processes. There has also been a decline in Norwegian public investments across civil construction, transport and ICT sectors. Meanwhile the Finnish market has remained stable.
- Dovre guides FY ’24 revenue to be in the range of EUR 185-210m and EBIT in the range of EUR 2-4m (unchanged).