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HAAG Group reported a robust performance in Q2 2025, highlighted by a 6.5% increase in revenue for the first half of the year compared to the same period in 2024. The company also achieved a positive EBITDA of NOK 4.1 million for the third consecutive quarter, with a significant cash balance increase to NOK 293 million. With a market capitalization of $39.14 million and trailing twelve-month EBITDA of $0.66 million, the maritime systems provider is focusing on green transition technologies amidst stable global shipbuilding market forecasts. InvestingPro data shows the company maintains strong liquidity with a current ratio of 16.28, indicating robust short-term financial health.
Key Takeaways
- HAAG Group’s revenue grew by 6.5% for the first half of 2025 compared to 2024.
- Positive EBITDA of NOK 4.1 million marks the third consecutive profitable quarter.
- Cash balance doubled year-over-year, reaching NOK 293 million.
- New product innovations in ship design and energy systems are underway.
- The company is scaling down hydrogen energy activities to save NOK 10 million annually.
Company Performance
HAAG Group demonstrated strong financial health in Q2 2025 with a 6.5% revenue increase in the first half compared to the previous year. This growth is supported by a positive EBITDA for the third consecutive quarter and a substantial increase in cash reserves. The company remains focused on its core technological segments—ship design, energy design, hydrogen systems, and water treatment—amidst a stable global shipbuilding market.
Financial Highlights
- Revenue: 6.5% increase in the first half of 2025 compared to 2024
- EBITDA: NOK 4.1 million, marking three consecutive positive quarters
- Cash Balance: NOK 293 million, doubled from the previous year
- Positive Cash Flow: CHF 46 million
Outlook & Guidance
While HAAG Group anticipates solid revenue growth and margin improvements in the second half of 2025, with Q4 expected to be the strongest quarter, InvestingPro analysts forecast a potential sales decline in the current year. The company is actively tendering for new contracts and expects to maintain its competitive edge in low and zero-emission shipping technologies, supported by its moderate debt levels and strong liquidity position.
Executive Commentary
Gunnar Larsson, CEO, stated, "We are experts guiding the marine and maritime industries towards low and zero emission shipping." He emphasized the company’s positioning to tackle industry challenges, noting, "The green transition, stricter regulations and increasing competition continue to shape the maritime industry."
Risks and Challenges
- Stricter maritime regulations could increase operational costs.
- Competition in green shipping technologies may impact market share.
- Economic fluctuations could affect global shipbuilding demand.
- Scaling down hydrogen activities may impact innovation in that segment.
Q&A
During the earnings call, analysts inquired about HAAG Group’s international market expansion strategies and the ship design segment’s contract acquisition approach. The company also detailed progress on the Allen Game Changer carbon capture study, highlighting its commitment to environmental sustainability.
Full transcript - Havilah Resources Ltd (HAV) Q2 2025:
Gunnar Larsson, CEO/Interim Managing Director, HAAG Group: Good Good morning, everybody, and welcome to HAAG Group’s Presentation of Financial Results for the Second Quarter and the 2025. My name is Gunnar Larsson, and I’m here today as usual with our CFO, Paul Alrog. Today, we will talk about the highlights of the quarter, some information about Harp Group in general, We will go more into detail on the business segments. Paul will give you more details about the financials. We will sum up and give you our outlook for the future for Hub.
And at the end, as usual, we will have a Q and A session where you have already sent in and can still send in questions that we will answer. The key developments in the quarter was that we had a very solid quarterly revenue of million. The EBITDA was NOK4.1 million, that is the third consecutive quarter with positive EBITDA. And the Energy Design and Smart Control Systems segment continued to have very strong performance. The balance sheet was steadily strengthening.
Cash balance was million, up from NOK124 million at the same time last year. The order intake was million in the quarter and that was including three charging stations for Norled ferries, million contract with Hachan Shipyard for Power and Automation Systems and very gladly ship design project for North Salmon Service. And that resulted that we maintain a very strong order backlog of close to NOK1.3 billion as of the end of the quarter. And also, we have formalized the collaboration with Havilla Voyages for the next generation of coastal route ships. After the quarter, we have contracted to deliver five container based water purification systems to Greenland and we have been awarded three integrated navigation systems to Tajarn shipyard.
Here you see the order intake compared to the last quarters. Both the order intake for the quarter is good and also you see that we keep a steady order book, steady high order book totally for the whole group. Then I will give you some more information again about Hov Group, what we are. So we are an international provider of maritime systems and solutions to ship owners and shipyards all around the world. Our value proposition is to improve vessels’ cargo and owners’ competitiveness by providing advice and optimized solutions throughout the ship’s life cycle.
We are headquartered in Fusnawok. We are about 160 people in Norway, in Poland and in Turkey. And we consider us to be experts guiding the marine and maritime industries towards low and zero emission shipping. We concentrate on four different technological segments. It’s the ship design, energy design and smart control, hydrogen based energy systems and water treatment systems.
And I will give more insight in the development of these segments later in the presentation. Here you see the main industry segments that these segments are focusing on, offshore wind, oil and gas, ferries and rupaks, aquaculture, fisheries and short sea cargo. And then I go over to more details about each of the technological segments. Ship design the Ship design segment won had a very important contract win as design provider for our new live fish carrier for Norwegian aquaculture logistics operator, North Salmon Service. The majority of this design and engineering work will be executed in 2025, but still we have unutilized capacity in this business and we are focusing very much on sales in the segments that we are focusing on.
We also had the management change in the segment. Stig Manne, a long time Managing Director for the company has gone to a new role as Senior Vice President of Design in the company. I am appointed as Interim Managing Director and we are now in the process of hiring our new permanent Managing Director. The Energy Design and Smart Control Systems segment had another quarter with solid financial performance. Some of the important contract wins in the quarter was the million contract for Energy Design and Smart Control Systems for two newbuild vessels.
We delivered we have got a contract for delivery of three charging stations for ferries. And as I mentioned earlier, we had a very important contract also for three integrated navigation systems to Tashan Shipyard, which was the first separate sale of our Raven integrated bridge and navigation system. Also the water treatment system had improved financial results compared to previous quarters. We have new contracts to supply five separate ballast water treatment systems to various shipyards in Norway. We see also that new regulations for land based aquaculture and reopening of license applications announced in July give us creates market opportunities for the products that we have in the water treatment business.
After the end of the quarter, we also contracted to deliver five container based water purification systems to Greenland, which is also entering into a new potential market segment. As we have mentioned earlier, for the hydrogen based energy system, we have taken down cost and activity levels due to the market situation in general for hydrogen energy for ships and also for some of the projects, the progress in some of the projects that we were working on. But we keep the intellectual property rights and safeguard them to be positioned to capitalize on future market opportunities for the technology that we really believe are there. It’s a matter of timing. The responsibility for the maintenance of the technology and expertise has been transferred to Haar Group’s ship design business.
When taking down this activity level, we expect an annual saving of approximately 10,000,000 for this segment until we ramp up the activity again according to the activity in the market. And here you see the order backlog. Total order backlog SEK 1,800,000,000.0 in total. The ship design in the quarter had 160,000,000 backlog. Energy Design and Smart Control System maintains order backlog of over SEK1 billion and the water treatment system has increased their order backlog from same time last year to million.
So it’s a very good development of our order backlog. And then Paul will give you some more details about the financials for the quarter.
Paul Alrog, CFO, HAAG Group: Morning. I will guide you through the financial performance for the quarter. We delivered relatively high turnover on the back of a good activity level in the second quarter, which was at the same level as the 2024, but significantly higher than previous quarter. This is the third quarter in a row with positive EBITDA, which is pleasing, but there is still room for improvement in some of our business segments. If we look at the key financials, high activity level in the quarter, improved EBITDA and net profit compared to the same quarter last year.
First half year revenue is 6.5% higher than first half twenty twenty four. Year to date improvement in all main financial KPIs versus the first half year twenty twenty four. And based on order backlog, operating income is expected to increase in the 2025 versus first half twenty twenty five. Then look at the segments. Ship design performance is impacted by low capacity utilization.
The recent contract win improves utilization for 2025, but the business needs to win more contracts in order to reach the profitability we expect. Energy and Design smart Control System is the main contributor to both the return turnover and the margin. In addition to winning new contracts, the segment has good progress on projects and delivers significantly improved financial results. Water Treatment segment is impacted by lower than expected sales in the Marine segment. However, it’s pleasing to see that the business is returned to positive EBITDA figures in the second quarter.
Then if we look at the balance sheet. The main changes in the balance sheet is driven by operational activities. On the asset side, the current assets increased by approx 140,000,000 year to date, and this is caused mainly by increase in receivables by million and an increase in cash by NOK43 million. On the liability side, the current liability has increased by approx NOK140 million year to date, and this is caused by increase in advance payment from customers by NOK 140,000,000. And as you can see, our cash balance has grown to a very healthy NOK $293,000,000, which is more than double the cash balance at the same time last year.
Then if you sum up and look at the cash flow, strong positive cash flow with CHF 46,000,000 increase from first quarter, summing up to CHF $293,000,000. And this is mainly driven by operating activities and especially reduction in net other current RIPE receivables. The negative cash flow from investing activities is investments in R and D and equipment, And the negative cash flow from financing activities is related to repayment of non current debt. Then back to Gunnar that sum up the quarter.
Gunnar Larsson, CEO/Interim Managing Director, HAAG Group: Thank you very much, Paul. To sum up, we had a very positive EBITDA in 2020 in Q1 twenty twenty five with growth and solid results in Energy Design and Smart Control segment and totally also the EBITDA was positive for the third quarter in a row. We had strong and improved cash generation in the quarter. We had new orders for SEK215 million signed in Q2, which gave a solid order backlog of SEK1288 billion at the end of the quarter. Very positively, we had an important contract win for the ship design business and we have executed the necessary strategic alignment to downscaling of the hydrogen business waiting for the market to come back.
The outlook for half still looks very strong. The green transition, stricter regulations and increasing competition continue to shape the maritime industry. We are very well positioned to address these challenges with the technology that we have that will add enhance the vessel’s operations, profitability and environmental performance. There is a lot of uncertainty in the geopolitical situation and tariff issues that create some turmoil and some headwinds, but we see that the global shipbuilding market is still predicted to remain at a stable level in the coming years and also for the segments that we are focusing on. Our market presence is mainly in Europe and in Norwegian markets and that reduces our exposure to intercontinental trade conflicts.
So based on this and what we are presenting for our results and what we see from our order book, we maintain our guidance and we expect solid revenue growth driven by recent contract awards and the active tendering that we are doing. And we also expect corresponding margin improvements. So that was the presentation. Now we will go over to the Q and A session, where I will be joined by Paul and we will answer the questions that you have sent in. So Paul, have you got any exciting questions this Yes,
Paul Alrog, CFO, HAAG Group: we’ll have to go through and see if there are some new questions that’s coming up here. And yes, we can start with first one. Harv Design competitors are delivering vessel designs to customers all over the world. Why doesn’t Harv Design deliver ship design to customers in Asia and America, for example?
Gunnar Larsson, CEO/Interim Managing Director, HAAG Group: If you look at the reference and what we have delivered in Half DESIGN over the years since the startup in 02/2005, we have delivered more than 130 vessels. Many of those has been delivered to Asia, to South America, to America, different type places in Europe. And also today, we are delivering to American shipyard and we are delivering to Danish owners. And we are also focusing on both shipyards and ship owners, not only in Norway, but abroad. So I would not be surprised if we have more international customers also for the ship design segment in the future.
Paul Alrog, CFO, HAAG Group: Yeah. Yeah. This is maybe this one or the same and you’ve mentioned in your stock exchange announcement that how design must win new projects. How are you working to win new projects and which market segments are you targeting?
Gunnar Larsson, CEO/Interim Managing Director, HAAG Group: The segments that we are targeting in general is the same as we presented in an earlier slide. What we are doing is that we are extending the number of potential clients that we are targeting in each market. We are focusing the marketing and we are also strengthening the sales activity towards these targeted markets. And we see the results from how we have been working in some of the markets lately that lead portfolio or the pipeline of leads, sales leads is becoming stronger and that is increasing the chance for getting new orders. And I would not be surprised if we have more than one new order also this year.
But it remains to be seen.
Paul Alrog, CFO, HAAG Group: Yes. And there is also one market question, what measures have Half Group taken to attract new customers during 2025, including new customers from different international markets?
Gunnar Larsson, CEO/Interim Managing Director, HAAG Group: We are trying of course to get our message through. What we are focusing is on is what kind of value that we can deliver to our customers and becoming even more precise, becoming better to tell that market message to target both through social media to other digital channels, targeted meeting with customers. We are using all the efforts that we can and we see the results. We see that have seen the results especially in the energy design and smart control segment. And I’m quite sure we would see the results also in the other segments.
And we are constantly evaluating how we are working and adapting to the new and modern sales and marketing technologies in order to reach customers and generate leads.
Paul Alrog, CFO, HAAG Group: Yes, please roll down. Are guiding significant revenue growth in 2025. Can you provide some indications that on what third and fourth quarter looks like in the terms of activity level?
Gunnar Larsson, CEO/Interim Managing Director, HAAG Group: Yes, maybe you can answer that, Paul.
Paul Alrog, CFO, HAAG Group: Yes. As we have said, we if we compare first and second half, we think that the second half will be on a higher level. And if we look at the third and fourth quarter, we think that the fourth quarter will be the strongest of the two ones. So I think we will see an increasing activity level if you look at the turnover side in 2025. Yes.
Then despite the generally strong market for newbuilds and green ship designs, Harv Design continues to underperform with low utilization and limited contract wins. What are the key reasons behind the segment?
Gunnar Larsson, CEO/Interim Managing Director, HAAG Group: I don’t like to talk about lock and unlock, but in football you can hit the post and the ball goes either in or outside the goal. And we have had some of these cases lately also. We have been very close and then not hit the goal. But strengthening the market and sales persons as we have done now for a period will give results. If you have been working with ship owners, you know that they start their investment investigations long before they take their investment decision And we are working together with the clients for a long time and have to establish relations and work with the projects for a long time until they finalizing contracts.
We have been doing that and we have a pipeline. So I’m quite confident that the work we have done, the work that we have been will continue to do and improve how we are working will results in new contracts for the future.
Paul Alrog, CFO, HAAG Group: Yeah. Then there is a question, what is the status progress of the Allen Game changer study?
Gunnar Larsson, CEO/Interim Managing Director, HAAG Group: Yeah. The Allen Game changer study is a very interesting and potential project that we are taking part in. It’s a feasibility study to prove the theories that we have that we can very efficiently collect carbon and store carbon from LNG fueled fuel cells. And we are now in the startup of this feasibility study. So we will be working throughout this year and into next year before we can present so much results, but we will also keep you updated, the market updated if we have some milestones that we feel it’s interesting for the market to know in this project.
And at the end, if our theories are proven, there might be a very good business potential for Haab Group to productify this product and it can be applied both retrofits of existing vessels and for new vessels that wants to use LNG as the fuel. And it’s also very, very good mean in order to reduce emissions and a shorter and cheaper way to reduce emissions and many other measures that we have today. So we are really looking forward to see the development in this project.
Paul Alrog, CFO, HAAG Group: Yes. Is there any new questions coming in?
Gunnar Larsson, CEO/Interim Managing Director, HAAG Group: No. I think that was the questions. Thank you very much again for following our presentation. We will see you again at least at the next presentation for Q3. Thank you very much and have a very nice day.
Thank you.
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