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Introduction & Market Context
Norwegian IT consultancy Bouvet (OB:BOUV) presented its first quarter 2025 results on May 21, showing continued growth and improved profitability despite facing increased competition in certain market segments. The company’s stock closed at NOK 79.1 on May 20, having declined 1.86% ahead of the earnings announcement.
Bouvet continues to benefit from strong demand in its key sectors, particularly in energy and public administration, while noting that competition has intensified in some segments. The company highlighted growing demand for AI-related assignments and reported low employee turnover, positioning it well in a competitive talent market.
Quarterly Performance Highlights
Bouvet reported operating revenues of NOK 1,074.7 million for Q1 2025, representing a 5.8% increase compared to the same period last year. The company achieved an EBIT of NOK 155.2 million, resulting in an improved EBIT margin of 14.4%, up from 13.3% in Q1 2024.
As shown in the following chart of key financial metrics, Bouvet demonstrated solid performance across its core indicators:
Profit for the period increased by 15.1% to NOK 121.0 million, with earnings per share (fully diluted) rising to NOK 1.16 from NOK 1.01 in the previous year. The company maintained its workforce at 2,347 employees, representing a modest 1.3% year-over-year increase.
Among the quarter’s highlights, Bouvet secured a new framework agreement with the Norwegian Public Roads Administration and hosted the Bouvet One event, which was mentioned as a significant corporate milestone.
Detailed Financial Analysis
Bouvet’s financial performance showed improvement across multiple metrics. The company’s revenue from its own consultants increased by 6.7% to NOK 972.6 million, while revenue from sub-contracted consultants decreased by 4.6% to NOK 87.1 million.
The following chart illustrates Bouvet’s revenue and EBIT development, showing the consistent upward trend in both metrics:
A detailed breakdown of the EBIT changes reveals that increased capacity contributed NOK 37 million to EBIT growth, while higher hourly rates added NOK 8 million. These positive factors were partially offset by calendar effects (NOK -20 million) and increased personnel expenses (NOK -31 million), as shown in this analysis:
Bouvet maintains a strong financial position with cash and cash equivalents of NOK 741.1 million. The company has no interest-bearing debt and reported an equity ratio of 27.1%, slightly down from 28% in Q1 2024. The liquidity ratio stands at 1.27, compared to 1.28 in the same period last year.
The company’s balance sheet remains robust, as illustrated in the following summary:
Strategic Initiatives & Customer Relationships
Bouvet’s business continues to be concentrated in key sectors, with oil, gas, and renewables representing 39.4% of total revenues (up 3.6% year-over-year). Power supply accounts for 20.8% (up 8.3%), while public administration and defense represent 18.7% (up 9.4%).
The following chart shows the distribution of Bouvet’s revenue across business sectors:
The company is experiencing a growing concentration of revenue among its largest clients, with the top 10 customers now representing 68% of total revenues, up from 66% in Q1 2024. Public sector revenue has increased to 47.4% of the total, up from 43.6% in the same period last year.
This customer distribution is illustrated in the following chart:
Bouvet highlighted several key client relationships during the presentation, including its work with Statnett (Norway’s transmission system operator), the Norwegian Armed Forces’ Command and Control Information System, the Norwegian National Courts Administration, and the Norwegian Directorate for Higher Education and Skills.
Forward-Looking Statements
Looking ahead, Bouvet characterized the market as having continued strong demand in key sectors, though with stronger competition and reduced demand in some segments. The company noted that clients are increasingly seeking strategic partnerships and that demand for AI-related assignments is growing.
The following image summarizes Bouvet’s outlook:
Bouvet’s employee growth has slowed significantly compared to previous years, with just 31 additional employees year-over-year, down from 205 in the previous comparable period. However, the company reported low and stable turnover, suggesting it is maintaining its workforce effectively despite competitive pressures in the talent market.
The following chart illustrates this trend in employee growth:
With its strong financial position, established client relationships, and focus on high-demand sectors, Bouvet appears well-positioned to navigate the evolving market landscape despite increased competitive pressures in certain segments.
Full presentation:
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