EQVA ASA Q2 2025 presentation: 47% revenue growth fueled by acquisition strategy

Introduction & Market Context

EQVA ASA (OB:EQVA), a Norwegian industrial compounder company, presented its second quarter 2025 financial results on August 28, 2025, highlighting substantial revenue growth and a strengthening order book. The company, which specializes in acquiring and developing niche businesses, has seen its share price rise to NOK 5.36, up 1.52% ahead of the results presentation.

EQVA has positioned itself as an M&A-focused compounder with a significantly lower valuation multiple (EV/EBITA of 6) compared to industry peers (35-36), potentially representing an attractive value proposition for investors interested in the industrial services sector.

Quarterly Performance Highlights

EQVA reported impressive year-over-year growth for Q2 2025, with revenue increasing 47% compared to the same period last year. The company’s EBITDA reached NOK 81.0 million year-to-date, up from NOK 62.5 million in Q2 2024. However, EBITDA margin contracted slightly to 10.8% from 12.3% in the prior year period.

As shown in the following chart of quarterly performance highlights:

The company’s order book has shown remarkable strength, reaching NOK 932 million, representing a 68% increase from Q2 2024. This robust backlog provides significant revenue visibility for the coming quarters and reflects strong market demand for EQVA’s services.

The order book breakdown by subsidiary shows BKS Group with NOK 644 million, IMTAS with NOK 238 million, and Kvinnherad Elektro with NOK 50 million. The following chart illustrates the consistent growth in the company’s order book:

Detailed Financial Analysis

On a pro forma basis, EQVA’s last twelve months (LTM) operating revenue reached NOK 1,572 million, with EBITDA of NOK 124 million. The company maintains a solid financial position with net interest-bearing debt of NOK 225 million and a book value equity of NOK 386 million, resulting in a net leverage ratio of 1.8x.

The key financial metrics are summarized in the following slide:

By segment, Industrial Solutions continues to be the primary revenue and profit driver, generating NOK 708.4 million in revenue and NOK 66.9 million in EBITDA year-to-date. The segment’s EBITDA margin improved to 9.4% from 8.1% in Q2 2024, demonstrating operational efficiency gains despite rapid growth.

The segment performance is illustrated in the following chart:

EQVA has maintained a strong balance sheet with an equity ratio of 34% as of June 30, 2025. The company reported a cash position of NOK 126 million, including NOK 20 million in restricted cash, providing ample liquidity for continued operations and potential acquisitions.

The quarterly pro-forma development for EQVA Industrial Solutions shows a consistent upward trend in both revenue and EBITDA, particularly following the acquisitions of Kvinnherad Elektro and IMTAS:

Strategic Initiatives

EQVA’s growth strategy centers on building an industrial platform through both organic growth and strategic acquisitions. The company has been actively executing this strategy, with several key milestones achieved since its establishment in October 2022:

• May 2024: Launch of EQVA Industrial Solutions (EIS)
• October 2024: Acquisition of Kvinnherad Elektro Group
• February 2025: Acquisition of IMTAS Group
• March 2025: Acquisition of Austevoll Rørteknikk (ART)

The company operates through three platforms: EQVA Industrial Solutions (the main platform), EQVA Renewables, and Real Estate. This structure allows EQVA to diversify its operations while maintaining focus on its core industrial services business.

EQVA Industrial Solutions has established itself as a leading provider of multidisciplinary services to various industries including smelters, offshore, maritime, land-based, aquaculture, and defense sectors. With 640 highly qualified permanent employees, the segment offers engineering services, pipe and tank systems, load-bearing structures, mechanical solutions, ventilation, and power and automation services.

The comprehensive capabilities of EQVA Industrial Solutions are summarized in this overview:

Forward-Looking Statements

EQVA has outlined clear growth targets, aiming for 10-15% annual growth in revenue and EBITA over a business cycle. The company is focused on maintaining an equity ratio above 30% while delivering strong returns on working capital (EBITA/WC > 40%).

Management highlighted several market trends supporting future growth, including increased demand in the smelter industry driven by electrification, continued investments in offshore and maritime sectors, and growing opportunities in aquaculture and defense.

The company’s acquisition strategy remains a key driver of future growth, with clear criteria ensuring accretive acquisitions. EQVA targets industrial service companies with complementary offerings, proven business models, and operations primarily in the Nordic region. Financial criteria include positive impact on group EBITDA margins, asset-light business models, and identifiable synergies.

With its strong order book, solid financial position, and clear strategic direction, EQVA appears well-positioned to continue its growth trajectory through both organic expansion and strategic acquisitions in the coming quarters.

Full presentation:

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