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Introduction & Market Context
Norbit ASA (OB:NORBT) delivered strong first-quarter results for 2025, as presented in its earnings call on May 14, 2025. The Norwegian technology company reported significant revenue growth and margin expansion across its business segments, particularly in its Oceans division. The company’s stock closed at NOK 153 on May 13, 2025, near its 52-week high of NOK 157.6, reflecting investor confidence ahead of the earnings announcement.
CEO Per Jørgen Weisethaunet and CFO Per Kristian Reppe presented results showing that Norbit’s diversified business model continues to deliver robust performance, with particular strength in defense and security applications.
Quarterly Performance Highlights
Norbit reported first-quarter revenue of NOK 521.7 million, representing a 29% increase compared to the same period in 2024. The company’s EBIT reached NOK 127.4 million, resulting in a strong margin of 24%. Diluted earnings per share nearly tripled to NOK 1.40, up from NOK 0.50 in Q1 2024.
As shown in the following quarterly performance chart, Norbit has maintained consistent revenue growth with improving EBIT margins:
The company’s gross margin improved significantly to 62%, up from 53% in Q1 2024, contributing to the enhanced profitability. Net profit for the period reached NOK 89.7 million, compared to NOK 30.2 million in the first quarter of 2024.
The comprehensive profit and loss statement reveals the extent of Norbit’s financial improvement:
Segment Analysis
Oceans Segment
The Oceans segment delivered its second-strongest quarter ever, with revenues of NOK 232.7 million, representing a remarkable 92% increase from Q1 2024. Even after adjusting for the Innomar acquisition, organic growth reached 70%. The segment’s EBIT margin expanded to 35%, up from 8% in the same period last year.
The following chart illustrates the Oceans segment’s strong performance trajectory:
Revenue growth in the Oceans segment was primarily driven by strong sonar sales, which increased significantly compared to the previous year. The company noted that a new buyer agreement was made for a NOK 75 million security project won in September 2024, though revenue recognition will occur only once payments are received.
Connectivity Segment
The Connectivity segment demonstrated stable performance with revenues of NOK 145.9 million, representing a slight 3% decrease from Q1 2024. Despite this minor decline, the segment maintained a robust EBIT margin of 28%, on par with the level reported in the first quarter of 2024.
Within the Connectivity segment, increased sales of enforcement modules for tachographs offset a decline in sales of On-Board Units. The following chart shows the shifting revenue mix within this segment:
PIR Segment
The Product Innovation & Realization (PIR) segment continued its growth trajectory with revenues of NOK 160.6 million, up 11% from Q1 2024. When adjusted for inventory sales in Q1 2024, the growth rate was even more impressive at 23%. The segment’s EBIT margin improved significantly to 14%, up from 3% in Q1 2024.
The PIR segment’s growth was largely driven by increased demand from the defense and security sector within contract manufacturing. This segment received a notable NOK 125 million order from a European defense client for delivery in the second half of 2025. The company expects defense-related revenues in PIR to approach NOK 600 million this year based on first-quarter revenues and current firm orders.
Financial Position and Cash Flow
Norbit maintained a strong balance sheet with total assets of NOK 2,372.9 million as of March 31, 2025. The company’s equity ratio stood at 52%, well above its covenant requirement of 30%. Cash and undrawn credit facilities totaled NOK 791.0 million at the end of the quarter, providing substantial financial flexibility.
The following balance sheet overview highlights the company’s solid financial position:
The company’s cash flow development for the first quarter shows positive operating cash flow of NOK 101.3 million, with investments in R&D amounting to NOK 36.6 million and investments in machinery and equipment of NOK 11.1 million.
2025 Outlook and Forward Guidance
Norbit maintained its previously communicated revenue target of NOK 2.2-2.3 billion for 2025, with an EBIT margin improvement compared to the 20% reported last year. However, management indicated that based on current outlook, these targets are considered conservative and will be updated during the second-quarter reporting in August.
The following chart illustrates Norbit’s historical performance and 2025 targets:
For the second quarter of 2025, Norbit expects to deliver revenues in excess of NOK 700 million. The Oceans segment is moving into a seasonally stronger period with expected revenues exceeding NOK 220 million. The Connectivity segment is projected to deliver between NOK 160 and 180 million in revenues, while the PIR segment is expected to generate between NOK 330 and 350 million, driven by growth in demand from the defense and security sectors.
Norbit continues to explore value-accretive acquisitions to complement its organic growth strategy, while maintaining its strong balance sheet and financial flexibility as top priorities for capital allocation.
Full presentation:
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