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Introduction & Market Context
Cambi ASA (OB:CAMBI) presented its first quarter 2025 results on May 13, 2025, revealing a mixed financial performance characterized by modest revenue growth but a significant decline in profitability. The company’s stock closed at NOK 18.10 on May 12, 2025, up 1.93% ahead of the presentation, and has shown resilience with the price sitting well above its 52-week low of NOK 11.20.
The thermal hydrolysis technology provider continues to expand its global footprint, securing strategic new contracts in India and Spain during the quarter, while navigating challenges including slower progress on manufacturing projects and currency headwinds from a stronger Norwegian krone.
Quarterly Performance Highlights
Cambi reported Q1 2025 revenue of NOK 225 million, representing a modest 4.2% increase compared to NOK 216 million in Q1 2024. However, EBITDA fell sharply to NOK 14 million from NOK 36 million in the same period last year, reflecting pressure on profitability.
As shown in the following financial highlights table:
The company’s order intake declined significantly to NOK 170 million in Q1 2025 compared to NOK 401 million in Q1 2024, while the order backlog decreased to NOK 1,177 million from NOK 1,727 million a year earlier. Management attributed the weaker financial performance to slower progress on manufacturing projects and the impact of a stronger Norwegian krone.
Despite these challenges, Cambi made notable progress in its Solutions segment, with bulk soil sales reaching 22,900 tonnes, 15% higher than in Q1 2024. The company also continues its planned exit from the retail soil business, with concrete negotiations ongoing.
Strategic Initiatives
Cambi secured two new Thermal Hydrolysis Process (THP) contracts and one contract expansion during the quarter, marking important strategic developments. Most notably, the company achieved a breakthrough in India with its first THP project in the country.
The new contracts include:
1. A medium-sized THP system for the Versova wastewater treatment plant in Mumbai, India, with delivery scheduled for 2027
2. A compact THP system for the new Silvouta wastewater treatment plant in Santiago de Compostela, Spain, with delivery in 2026
3. Additional scope for the Veas project in Norway, including nitrogen recovery via ammonium sulphate production
As illustrated in the order intake slide showing these strategic new projects:
These new contracts strengthen Cambi’s global presence, which now spans 92 reference plants across 28 countries, serving approximately 121 million people. The company’s expanding geographical footprint is visualized in the following map:
On the operational front, Cambi reported good commissioning progress for Sasol (NYSE:SSL) in Secunda, South Africa, and installation progress for Frevar in Fredrikstad, Norway. The company also completed manufacturing for Tuas in Singapore and reported that engineering is progressing well for projects in the USA, Norway, and Spain.
Detailed Financial Analysis
A closer examination of Cambi’s financial performance reveals divergent trends across its business segments. The Technology segment, which encompasses the company’s core THP business, showed steady but slower progress across its portfolio of ongoing construction projects.
The segment’s performance is illustrated in the following chart:
Meanwhile, the Solutions segment, which includes services and recycling operations, experienced its typical seasonal pattern with lower activity during the first quarter. Despite this seasonality, the segment achieved higher bulk soil sales compared to the previous year.
The order backlog, while lower than a year ago, still provides revenue coverage for the remainder of 2025 and into 2026. The backlog breakdown shows:
Cambi’s balance sheet remains strong with no non-current liabilities. However, the company reported that delays in milestone payments from ongoing construction contracts negatively impacted operating cash flow during the quarter.
In a positive development for shareholders, Cambi’s Annual General Meeting on May 8, 2025, approved an ordinary dividend of NOK 0.30 per share. Additionally, the Board received authorization to approve additional dividends of up to NOK 0.70 per share, potentially bringing the total dividend to NOK 1.00 per share.
Forward-Looking Statements
Looking ahead, Cambi’s management expressed cautious optimism about the company’s prospects while acknowledging potential challenges. The company stated it is ready to meet global demand for sustainable sludge treatment solutions and is making strategic investments in organizational capabilities to deliver more complex projects.
However, management also highlighted that the current order backlog, while providing revenue coverage through 2025 and into 2026, suggests a potential revenue dip in 2026. This forthright acknowledgment reflects the company’s transparent approach to investor communications.
External factors that could impact Cambi’s outlook include U.S. tariffs, which the company is monitoring closely. Management emphasized a focus on trust-based dialogue as a key strategy for navigating these challenges.
The company’s flexible delivery model, which allows it to operate either as a subcontractor for THP equipment or as a main contractor, provides adaptability in responding to market conditions and client preferences. This flexibility, combined with Cambi’s established technology leadership and expanding global presence, positions the company to address both near-term challenges and long-term growth opportunities in sustainable wastewater treatment solutions.
Full presentation:
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