Aker Solutions shares dROP despite Q2 revenue beat, legacy projects drag margins

Published 11/07/2025, 06:50
Updated 11/07/2025, 09:10

Investing.com -- Shares of Aker Solutions (OL:AKSOA) declined more than 9% on Friday despite an 18% year-over-year rise in second-quarter revenue, as ongoing challenges from legacy projects and flat full-year guidance weighed on results.

The company reported revenue of 15.2 billion Norwegian kroner, exceeding Visible Alpha’s consensus of NOK 14.2 billion and RBC Capital Markets’ estimate of NOK 14.5 billion. The increase was attributed to high activity across business segments.

EBITDA came in at NOK 1.26 billion, compared to NOK 1.24 billion expected by Visible Alpha and NOK 1.28 billion by RBC.

The EBITDA margin was 8.3%, or 7.2% when excluding income from Aker’s 20% stake in OneSubsea. EBIT was NOK 899 million, below the NOK 957 million consensus and RBC’s NOK 968 million estimate. 

Earnings per share, excluding special items, were NOK 1.46 versus expectations of NOK 1.51 (Visible Alpha) and NOK 1.57 (RBC).

Order intake during the quarter reached NOK 10.9 billion, resulting in a book-to-bill ratio of 0.7. 

The backlog stood at NOK 68 billion. First-half revenue increased 22% year-over-year to NOK 29.5 billion.

Guidance for full-year 2025 was unchanged. Aker Solutions expects revenue above NOK 55 billion and an EBITDA margin of 7–7.5%, excluding OneSubsea. 

Consensus estimates forecast revenue of NOK 52.8 billion. The company anticipates more than $50 million in dividends from OneSubsea, which is projected to distribute over $250 million in 2025. Capital expenditures are forecast at 1.0–1.5% of revenue.

In the Renewables and Field Development segment, revenue rose 14% to NOK 10.8 billion. 

EBITDA was NOK 829 million, with a 7.7% margin. Order intake totaled NOK 7.9 billion, and backlog reached NOK 46.4 billion. 

Life Cycle revenue grew 30% to NOK 3.9 billion, generating NOK 275 million in EBITDA at a 7% margin. The segment recorded NOK 2.9 billion in orders, with a NOK 20.3 billion backlog.

Cash flow from operations was NOK 0.4 billion, supported by a NOK 520 million working capital reversal.

Capital expenditures were NOK 135 million, mainly for facility and equipment maintenance. 

Aker received NOK 145 million in dividends from OneSubsea and paid NOK 1.6 billion in dividends to shareholders.

The company cited steady tendering activity, with most orders linked to alliance projects with Aker BP (NYSE:BP) and life cycle services. The tender pipeline remained at NOK 80 billion.

Revenue from renewables and transitional energy accounted for 22% of total revenue, up from 16% a year earlier. 

Backlog execution for the second half of 2025 totals NOK 25.3 billion, largely tied to oil and gas projects in Norway.

RBC Capital Markets maintained a “sector perform” rating and a NOK 33 price target, noting a subdued outlook for large-scale oil and gas infrastructure in Norway.

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