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Introduction & Market Context
Aker Solutions (OSL:AKSO) presented its first quarter 2025 results on April 30, highlighting strong revenue growth across all segments amid a favorable market environment for energy services. The company reported significant order intake while maintaining a balanced risk-reward profile, positioning itself well for continued growth despite ongoing geopolitical uncertainties.
The Norwegian energy services provider continues to benefit from high activity levels in its core markets, with approximately two-thirds of its tender pipeline related to oil and gas projects. Europe remains the company’s strongest market, representing NOK 77 billion in tender value, significantly outpacing other regions.
Quarterly Performance Highlights
Aker Solutions delivered robust financial results in Q1 2025, with revenue reaching NOK 14.389 billion and EBITDA of NOK 1.203 billion (NOK 1.213 billion excluding special items). The company reported EBIT of NOK 853 million and net income of NOK 640 million excluding special items, translating to earnings per share of NOK 1.35.
The company’s Annual General Meeting approved a dividend payment of NOK 3.30 per share for the 2024 fiscal year, scheduled for payment on May 8, 2025, reflecting confidence in Aker Solutions’ financial position and future prospects.
As shown in the following financial performance overview:
The company maintained a strong cash position, ending the quarter with a net cash position of NOK 3.4 billion. Cash flow from operations reached NOK 0.8 billion, while CAPEX investments were limited to NOK 94 million. The company also received dividends of NOK 152 million from OneSubsea during the period.
The following chart illustrates the company’s cash generation during the quarter:
Segment Performance Analysis
Aker Solutions’ Renewables and Field Development segment delivered particularly strong results, with revenue of NOK 10.4 billion, representing a 30% increase compared to the same period last year. EBITDA for the segment reached NOK 870 million, yielding an 8.4% margin. However, management noted that legacy renewables projects continue to be a drag on margins, with these projects expected to be delivered throughout 2025.
The segment’s performance is illustrated in the following chart:
The Life Cycle segment also performed well, with revenue of NOK 3.5 billion, up 16% year-over-year. EBITDA for this segment was NOK 234 million, representing a 6.7% margin. Order intake was NOK 2.6 billion, resulting in a book-to-bill ratio of 0.7x.
OneSubsea, a key strategic investment for Aker Solutions, continued its strong performance with revenue of NOK 10.3 billion and an impressive EBITDA margin of 20.4%. Net income before PPA reached NOK 1.1 billion, demonstrating the value of this investment in the growing subsea market.
The detailed segment performance data provides a comprehensive view of the company’s operations:
When excluding special items, the segment performance shows the underlying strength of the business:
Order Intake and Backlog
A standout aspect of Aker Solutions’ Q1 2025 results was the exceptional order intake of NOK 25.6 billion, significantly higher than the NOK 3.4 billion recorded in the same period last year. This strong performance increased the company’s order backlog to NOK 72.1 billion, providing substantial visibility for future revenue.
The Renewables and Field Development segment was particularly successful in securing new orders, with an order intake of NOK 22.4 billion, resulting in a book-to-bill ratio of 2.2x. This segment’s backlog increased to NOK 49.3 billion.
The following breakdown provides additional insight into the company’s order intake and backlog:
The company highlighted that its new orders maintain a balanced risk-reward profile, with particular strength in HVDC (High Voltage Direct Current) and CCS (Carbon Capture and Storage) projects. The order backlog is geographically diverse, though Europe remains the dominant market.
Outlook and Guidance
Looking ahead, Aker Solutions provided a positive outlook for 2025, expecting revenues to exceed NOK 55 billion with an EBITDA margin between 7.0% and 7.5%, excluding net income from OneSubsea. The company anticipates that OneSubsea will distribute dividends of more than USD 250 million in 2025.
Management emphasized that the company’s large secured order backlog for 2025 execution will be a key focus, with predictable project execution as a priority. The company continues to see high tendering and early-phase study activity, while closely monitoring the geopolitical situation.
Aker Solutions expects working capital to normalize over time to a level between negative NOK 4 and 6 billion, reflecting the company’s efficient capital management practices.
The company’s operational highlights include the first oil for Johan Castberg in the Barents Sea, good progress on the Aker BP (NYSE:BP) portfolio, and ongoing work on several HVDC and CCS projects. While acknowledging challenges with legacy renewables projects, management expressed confidence in the company’s ability to deliver on its commitments for 2025.
Full presentation:
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