OSLO: Norwegian engineering company Aker Solutions reported a strong second quarter performance on Thursday, backed by high project activity and continued momentum in its core markets.
Second-quarter revenue rose to NOK 15.2 billion ($1.43 billion), up from NOK 12.8 billion in the same period last year, as the company executed key milestones including installation of the Valhall PWP substructure and the startup of CO₂ capture at Heidelberg Materials’ cement facility in Brevik.
Earnings before interest, taxes, depreciation and amortization (EBITDA), excluding special items, reached NOK 1.3 billion, yielding a margin of 8.3 percent. Earnings per share came in at NOK 1.46.
Chief Executive Officer Kjetel Digre praised the company’s operational execution and innovation focus: “We continue to deliver solid financial results while achieving key milestones on our major projects, and I am proud of the dedication and hard work demonstrated by our organization,” Digre said. “I am also pleased to see our drive for innovation and the integration of leading-edge technology into our services, such as the use of autonomous drones for offshore inspections.”
Life Cycle Gains Offset Margin Drag in Renewables Segment
Revenues in the Life Cycle segment rose 30 percent year-on-year, supported by improved margins and stable demand for offshore electrification and maintenance services. However, the Renewables and Field Development segment continued to face margin pressure due to legacy lump-sum contracts. Commercial discussions with clients and subcontractors are ongoing.
Backlog Builds Despite Modest Order Intake
Quarterly order intake was NOK 10.9 billion, down from NOK 15.5 billion in Q2 2024, corresponding to a book-to-bill ratio of 0.7. Awards included the Brunei Shell Petroleum brownfield services extension and the steel substructure contract for Germany’s BalWin 2 offshore wind project.
The total order backlog increased to NOK 68.0 billion from NOK 60.9 billion at the end of 2024, positioning the company well for future deliveries.
First-Half Overview and Guidance
For the first half of 2025, revenue reached NOK 29.5 billion and EBITDA totaled NOK 2.5 billion, with a margin of 8.4 percent. Order intake for the six-month period stood at NOK 36.5 billion, translating to a book-to-bill ratio of 1.3.
The net cash position at the end of Q2 was NOK 2.1 billion, after dividend payments of NOK 1.6 billion based on the 2024 results. Aker Solutions also received NOK 145 million in dividends from its 20 percent stake in OneSubsea.
The company reiterated its full-year guidance, expecting revenue to exceed NOK 55 billion and an EBITDA margin between 7.0 and 7.5 percent, excluding contributions from OneSubsea.