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Introduction & Market Context
EQVA ASA, a Norwegian industrial investment company listed on the Oslo Stock Exchange, presented its first quarter 2025 results on May 16, 2025, highlighting substantial growth driven by both organic expansion and strategic acquisitions. The company, which describes itself as a "compounder" focused on acquiring and developing profitable niche businesses, reported significant improvements across key financial metrics while continuing to execute on its M&A strategy.
EQVA operates through three main segments: Industrial Solutions (its largest division), Renewables, and Real Estate. The company has positioned itself with a lower valuation multiple (EV/EBITA of 6) compared to Nordic industrial peers that range from 10 to 36, potentially indicating room for valuation expansion as the company continues to execute its growth strategy.
As shown in the following timeline of EQVA’s development journey over the past two years, the company has made several strategic acquisitions to build its industrial platform:
Quarterly Performance Highlights
EQVA reported strong financial results for Q1 2025, with revenue increasing 56% to NOK 401 million compared to NOK 257 million in the same period last year. EBITDA rose to NOK 63 million, up from NOK 46 million in Q1 2024, though EBITDA margin contracted slightly from 18% to 16% as the company scaled through acquisitions.
The company’s order book showed robust growth, reaching NOK 881 million as of March 31, 2025, compared to NOK 545 million a year earlier, providing significant visibility for future revenue generation.
The following chart illustrates the company’s Q1 2025 performance compared to the same period last year:
Earnings per share for Q1 2025 reached NOK 0.48, already exceeding the full-year 2024 EPS of NOK 0.40, demonstrating the company’s accelerating financial performance. The company’s share has delivered a 5% total return in Q1 2025, following a strong 65% return in 2024.
The following slide provides key information about EQVA’s share performance and metrics:
Strategic Initiatives
EQVA’s growth strategy centers on both organic expansion and strategic acquisitions. During Q1 2025, the company completed two significant acquisitions: IMTAS Group (transaction closed March 21, 2025) and Austevoll Rørteknikk (agreement signed in March 2025). These acquisitions follow the October 2024 acquisition of Kvinnherad Elektro Group, demonstrating the company’s consistent execution of its M&A roadmap.
The company’s Industrial Solutions segment, which serves as the main growth platform, comprises several specialized subsidiaries including BKS Industri, BKS VVS, BKS Power & Automation, Zenit Engineering, Marine Support AS, Kvinnherad Elektro, and the newly acquired IMTAS.
EQVA Industrial Solutions serves a diverse range of industrial customers across multiple sectors, as illustrated in the following overview:
The company’s order book remains solid and supports a continued optimistic outlook. The Industrial Solutions segment’s order book stands at approximately NOK 881 million, with BKS Group contributing NOK 640 million, IMTAS NOK 188 million, and Kvinnherad Elektro NOK 53 million. This represents a significant increase from NOK 487 million in Q4 2023 and NOK 770 million in Q4 2024.
The following chart shows the evolution of the company’s order book:
Detailed Financial Analysis
EQVA’s Industrial Solutions segment was the primary driver of growth, with revenue increasing by NOK 153 million (73%) and EBITDA growing by NOK 18 million (114%) compared to the same period last year. The segment demonstrated strong organic growth, with BKS revenues up 12% and EBITDA up 39%.
The following slide illustrates the performance of the Industrial Solutions segment:
Looking at the quarterly pro-forma development of EQVA Industrial Solutions, there has been consistent growth in both revenue and EBITDA since Q1 2023. Revenue has increased from NOK 140 million in Q1 2023 to NOK 363 million in Q1 2025, while EBITDA has grown from NOK 8 million to NOK 34 million over the same period.
The quarterly progression is visualized in the following chart:
From a balance sheet perspective, EQVA maintained a strong financial position with an equity ratio of 35% at the end of Q1 2025. Net interest-bearing debt stood at NOK 186 million, while the company reported a robust cash position of NOK 148 million (of which NOK 10 million was restricted cash).
Forward-Looking Statements
EQVA’s management expressed optimism about future growth prospects, highlighting several macro trends and growth drivers across its target segments. In the smelters segment, increased activity related to the upgrade and modernization of existing facilities is expected. For offshore operations, the extended lifespan of existing installations is anticipated to drive significant investments.
The maritime sector is benefiting from increased newbuild activity due to a weakened Norwegian krone, while land-based industry is seeing growing demand for full-service deliveries. Although the aquaculture sector has experienced lower activity in recent years due to new taxation schemes, the defense sector is expected to see increased activity, particularly within the Norwegian Navy.
EQVA’s comprehensive service offerings across these various sectors are illustrated in the following overview:
The company’s acquisition strategy remains focused on industrial service companies with complementary service offerings and proven business models. Financial criteria for acquisitions include an incrementally positive effect on Group EBITDA margins and an asset-light business model.
With its strong order book, recent acquisitions, and solid financial position, EQVA appears well-positioned to continue its growth trajectory through both organic expansion and strategic M&A activities in the coming quarters.
Full presentation:
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