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Introduction & Market Context
Environmental technology company Soiltech ASA (EURONEXT:STECH) presented its first-quarter 2025 results on May 8, showcasing record financial performance and significant operational achievements. The company, which specializes in waste management and environmental solutions, reported substantial year-over-year growth across key metrics as it continues to expand its global footprint.
Soiltech’s shares closed at 51.8 NOK on May 7, 2025, representing a 1.97% increase ahead of the earnings presentation. The stock has traded between 42.3 NOK and 64 NOK over the past 52 weeks.
Quarterly Performance Highlights
Soiltech delivered its strongest quarterly performance to date, with revenues reaching 85.6 million NOK in Q1 2025, representing a 53% increase compared to the same period last year. The company’s adjusted EBITDA surged 84% year-over-year to 18.1 million NOK, while profit before tax more than doubled, jumping 118% to 6.7 million NOK.
As shown in the following chart of quarterly revenue and EBITDA growth, Soiltech has maintained a consistent upward trajectory since 2023:
The company’s adjusted EBITDA margin improved to 21% in Q1 2025, up from 18% in the year-ago quarter, while the profit before tax margin increased to 8% from 5%. Management attributed this performance to strong operational execution and an increasing contribution from the company’s waste handling business, which now accounts for 40% of total sales.
Operational Developments
During the quarter, Soiltech made significant progress on several key operational fronts, including the commencement of new contracts and advancement of strategic partnerships.
The company highlighted the start of the Transocean (NYSE:RIG) Barents campaign for OMV Petrom in the Black Sea, where Soiltech is providing offshore fluid processing and cuttings containment and transfer services. Additionally, the Deepsea Bollsta contract with Northern Ocean for Equinor is now underway, with Soiltech delivering fluid processing and cuttings containment solutions.
As illustrated in the following operational highlights slide, these projects represent important milestones in the company’s growth strategy:
Soiltech’s contract portfolio remains robust, with numerous agreements extending through 2030 across both Norwegian and international markets. The company is also making progress on its installation at Hanøytangen, scheduled to commence operations in the second half of 2025.
In the Middle East, Soiltech reported advancement in its strategic partnership with Estedama in Saudi Arabia, with a cuttings treatment unit ready for testing. This initiative aligns with the company’s international expansion strategy.
Financial Analysis
The first-quarter results revealed a comprehensive picture of Soiltech’s financial health, with detailed breakdowns of income statement items and balance sheet metrics.
The following slide provides a detailed overview of the company’s Q1 2025 financial performance:
Beyond the headline revenue and profit figures, Soiltech reported a gross profit of 32.8 million NOK for Q1 2025, representing a margin of 38%. The company maintained a solid balance sheet with total assets of 440.2 million NOK and total equity of 210.3 million NOK.
Liquidity remains strong, with a cash position of 21.4 million NOK and an unused bank facility of 39.6 million NOK, providing a total available cash reserve of 61 million NOK. The company reported net interest-bearing debt of 163 million NOK at the end of Q1, resulting in a NIBD/EBITDA ratio of 2.26.
As shown in the following financial results slide, Soiltech has maintained a balanced approach to growth and financial stability:
Outlook and Forward-Looking Statements
Looking ahead, Soiltech expressed optimism about its market position and growth prospects for the remainder of 2025 and beyond. Management cited clients’ increased focus on cost-effective solutions and options for waste reduction and recycling as important market drivers that align with the company’s service offerings.
The company noted that it is currently evaluating potential dividend payments, suggesting confidence in its financial position and future cash flow generation capabilities.
As illustrated in the outlook slide below, Soiltech remains focused on leveraging its technological capabilities and market position to drive continued growth:
With a strong contract backlog, improving operational efficiency, and strategic international partnerships, Soiltech appears well-positioned to maintain its growth momentum throughout 2025, provided market conditions remain favorable and operational execution continues at current levels.
Full presentation:
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