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Soiltech ASA reported robust financial results for the third quarter of 2025, showcasing significant year-on-year growth in both revenue and profitability. The company achieved a 50% increase in revenues, reaching NOK 102 million, and a 78% rise in adjusted EBITDA, amounting to NOK 24 million. Following the earnings announcement, Soiltech’s stock price increased by 0.84%, reflecting investor optimism about its performance and future prospects.
Key Takeaways
- Soiltech’s Q3 revenues grew by 50% year-on-year to NOK 102 million.
- The company’s stock price rose by 0.84% post-earnings.
- Soiltech is on track to achieve its long-term revenue goal of NOK 1 billion by 2030.
- The company is expanding its international market presence, focusing on the Middle East and Europe.
Company Performance
Soiltech ASA demonstrated strong performance in Q3 2025, driven by its innovative waste management solutions and strategic market expansion. The company’s revenue growth of 50% year-on-year highlights its successful execution in key segments, including fluid treatment and solid waste management. Soiltech’s focus on technology and service quality has helped it maintain a competitive edge in the waste treatment industry.
Financial Highlights
- Revenue: NOK 102 million (50% year-on-year growth)
- Adjusted EBITDA: NOK 24 million (78% year-on-year growth)
- Profit Before Tax: NOK 10 million
- Revenue Segments: Fluid Treatment (54%, NOK 54 million), Solid Waste Management (46%, NOK 48 million)
Earnings vs. Forecast
Despite the absence of specific EPS data, Soiltech’s revenue exceeded forecasts, reaching NOK 102 million against an expected NOK 90 million. This 13.3% surprise indicates the company’s strong operational performance and effective market strategies.
Market Reaction
Following the release of its Q3 earnings, Soiltech’s stock price rose by 0.84% to NOK 72.2. The stock’s movement reflects positive investor sentiment, driven by the company’s solid financial results and strategic growth initiatives. Soiltech’s stock remains near its 52-week high of NOK 74.8, indicating confidence in its future performance.
Outlook & Guidance
Soiltech is targeting NOK 1 billion in revenue by 2030 through organic growth and selective investments. The company plans to leverage its strong contract portfolio and available liquidity of NOK 213 million to support continued expansion. While expecting a short-term activity drop in Q4, Soiltech remains optimistic about its long-term growth prospects, particularly in the Middle East and European markets.
Executive Commentary
CEO Jan Erik Tveteraas expressed confidence in Soiltech’s growth trajectory, stating, "We expect to continue to deliver solid growth." He emphasized the company’s financial strength, noting, "We are fully financed. We have excess capacity of NOK 167 million." Tveteraas also highlighted the increasing demand for Soiltech’s services, saying, "We see a strong and increasing market for our services."
Risks and Challenges
- Potential short-term activity drop in Q4 could impact near-term financial performance.
- Dependence on the oil and gas sector exposes Soiltech to industry-specific risks.
- Stricter environmental regulations may require continuous innovation and adaptation.
- Expanding into international markets poses operational and competitive challenges.
Q&A
During the earnings call, analysts inquired about Soiltech’s revenue goal and market expansion plans. The company confirmed its NOK 1 billion revenue target, emphasizing organic growth and strategic investments. Soiltech also discussed opportunities in Saudi Arabia and the broader Middle East, highlighting the region’s potential for waste management solutions.
Overall, Soiltech ASA’s Q3 2025 performance underscores its strong market position and commitment to growth, with investors responding positively to its strategic initiatives and financial results.
Full transcript - Soiltech ASA (STECH) Q3 2025:
Nikolay, Moderator: Presenting today will be Jan Erik Tveteraas and Tove Vestlie. My name is Nikolay and I will have the pleasure of moderating this session. Please note that if you have any questions to the management, use the chat function at the bottom of the screen here and we will get back to them during the Q and A session at the end of the presentation. With that said, I’ll leave the word over to you, Tove and Jan Erik.
Jan Erik Tveteraas, CEO, Soiltech ASA: Hello.
Tove Vestlie, CFO/Financial Officer, Soiltech ASA: Good morning. Before we begin, I would like to remind all parties that some of the statements we will be making today are forward-looking. These matters involve risks and uncertainties that could cause our results to differ materially from those projected in these statements. Our comments today also include non-IFRS financial measures. Additional details and reconciliations to the most directly comparable IFRS financial measures can be found in our third quarter press release, which is on our website. With that, I will turn the call over to Jan Erik Tveteraas.
Jan Erik Tveteraas, CEO, Soiltech ASA: Thank you, Tove. In today’s agenda we’ll go through the highlights of the quarter and we’ll discuss operational status, also market status, how we see the markets going forward. I will do a financial review and finally we’ll discuss how we see the market and out of Soiltech going forward. Let’s start with the highlights of the quarter. We will go through more in detail the numbers later on. We are quite happy with the third quarter. We feel we managed to deliver, you know, an increase in revenues and results compared to previous periods.
Tove Vestlie, CFO/Financial Officer, Soiltech ASA: We.
Jan Erik Tveteraas, CEO, Soiltech ASA: Also did this time for the second time have revenues about NOK 100 million. The third quarter revenues were NOK 102 million. Adjusted EBITDA was NOK 24 million and the Q3 profit before tax was NOK 10 million. All in all, we managed to deliver on all the line items and the reason for this quarter’s pretty good results, I would say, is that we continue to get a very positive response from the market, which is key. We’re going to discuss that later on too. If you compare the year-on-year growth, it’s strong. Also in this quarter, the revenues increased by 50% compared to last year. Third quarter EBITDA was up 78% and the profit before tax, we couldn’t calculate the percentage there because we had a minus last year with plus 10 this year. Anyway, it was also a strong improvement on the profits.
It’s not 100% apple to apple because last year we also had the effect of stock exchange listing, so we booked some cost there to go through that. In Soiltech ASA, we focus a lot on the profitability, the bottom line, and other key metrics. We are happy that we were able to continue the growth while maintaining the profitability, which is key for us. When we grow, the growth needs to be profitable. One key for this is definitely to maintain the cost control as the activity varies between a quarter. This is key for us in particular, to have a good control over the manning, the personnel cost, which is a key element of our operating cost. We managed to do that during the quarter. The key drivers for us are really not very special, I think, from many other companies, but for us it really means something.
We have very demanding clients, as you all know, in this sector. Both oil and gas companies and rig contractors, which are among the world leaders within their range, and we need to deliver the same quality to them. We have a very strong customer focus, really focusing that we’re doing a good job. We are not better than the last job that we did, so we need to have very strong operations. This is something which is really key for us and we also put a lot of emphasis on training and delivering this and be on the bidding side when we are offshore. Last, I think, is key for us is to never forget the innovation to try to improve these services. If you look at the.
Also, if you look at the picture on the right-hand side, you see this is from a PSV and it’s what we call the boat transfer tanks where we transfer the cuttings from the rig to onshore. This is from an operation with Transocean Barrens in the Black Sea. Even with these tanks, we have done improvements compared to other existing tanks. This is really key for us to keep on, to be ahead if possible, ahead of competition on these things. Let’s go a little bit into the operation and markets. Maybe see, it was a pretty straightforward quarter. There was high activity across the projects. We once again managed to have 100% commercial uptime on the project, which means that there hasn’t been any downtime where we have suffered any reduced rates, which is also a key to earnings.
We see now that we have divided our business in two business areas. We have fluid treatment and we have solid waste management. They are both the same size, and now with 54% of the revenue from fluid treatment, also using the Slop Treatment Technology as you know, and then solid waste management is 46%. Norway is still the largest market, and we’re seeing really a stronger, stronger interest international, and we expect international portion to grow going forward, but now it remains at 22%. This is a short summary of the operations. Nothing special to report. Really very good operation. We’re very happy and good feedback from the clients. If you look at the outlook in the markets, our main market, Europe, including Norway, I would say that the visibility in this market is very high.
It might be maybe the market in the world with the best visibility, at least for ourselves and for drilling market. We see that key clients like Equinor and key operators like Equinor and Vår Energi and Aker BP, all of them have an ambition to continue to maintain the oil and gas production up to 2035 and beyond. We know that in order to be able to do that, there needs to be a lot of drilling activity. The fields, discoveries are smaller. In order to fulfill this, there needs to be a lot of drilling, which is good for us. It’s good for drilling contact but also good for Soiltech. Of course, that means that there is a lot of drilling waste to handle in the market going forward as we see it. We touched about the international market.
We have several initiatives ongoing in the international focus markets. We are developing several projects in parallel which we hope can come to a realization. We see that internationally it is really an increased focus on the waste reduction and reuse and recovery. This is something where we think that we have a very good edge. I think there’s potential for us because we have a lot of technologies that the international market really don’t know so much about. I think that we can help the clients really improve. On the recovery side, for example, which is brine, which we do a lot, but also water that we see in several markets is important. Parallel with this you see that there are stricter regulations going on at the same time, which is also kind of helping the overall picture.
I will say that major companies, the focus that they have on kind of having a more efficient handling of the waste and also the reuse element is something that we should be able to take advantage of going forward. If you look at the contract status of Norway, we’re very proud of this. We have a very solid contract portfolio here with a lot of long-term activity. This is something which we think will be a good basis for us to grow, to be able to sell our services across our technology portfolio. We think that there are really good opportunities to grow in Norway based on this and also on other potential opportunities from last time. There are two changes on status. Equinor will now going forward do injection of the waste. It means that the waste will be injected.
On the other hand, we have added new A to our portfolio so we have the same number of projects on the Norwegian Continental Shelf. Going over to the next slide and look on the international market, there is no change there. We keep the two Noble rigs open. We’ve been on these rigs for some time. We can see there is a possibility if we do overall things right to be able to come back on these rigs as they are going on contracts. I think Noble has disclosed the contract for the Noble Resolute, for example. We will see what happens on this contract. I hope that over the next year and I believe that we are able to expand this with several other contracts international. Okay, next one is Tove. I’ll leave it over to you to go through the financial review.
Tove Vestlie, CFO/Financial Officer, Soiltech ASA: Thank you. Thank you, Jan Erik. I’m very pleased to take you through Soiltech ASA’s strong performance this quarter. All figures that I will refer to are in Norwegian kroner unless otherwise stated. We are very proud to report a strong third quarter with revenues of NOK 102 million, up 50% year on year. Although slightly down from the previous quarter, this is still the second highest quarterly revenue in our company’s history, mainly reflecting normal variations in project activity from this quarter on. As Jan Erik said, we report revenue in two segments, Fluid Treatment and Solid Waste Management. Fluid Treatment accounted for NOK 54 million in the quarter, while Solid Waste Management contributed NOK 48 million. Both segments showing growth compared to the same period last year.
Turning to adjusted EBITDA, this came in at NOK 24 million, up 78% year on year with a margin of 24% compared to 20% in Q3 2024. We managed to keep the EBITDA margin stable at 24% even with somewhat lower activity than in Q2. This was driven by strong operations and, as mentioned by Jan Erik, a continued cost discipline across the organization. SG&A costs remained flat at NOK 16 million, giving an SG&A margin of 16% compared to 20% in the same period last year. After a long period of recruitment and training, more of our new employees are now fully operational, which is contributing to higher efficiency and a gradual normalization of operating costs. However, quarterly variations can still be expected as we continue to grow. Profit before tax was NOK 10 million compared to a minus NOK 10 million in Q3 2024.
This represents a profit margin of 9% up from minus 15% last year. Please note that 2024 figures were impacted by IPO related cost of NOK 14 million. Looking at the results for the first nine months, we delivered record revenues of NOK 299 million, increasing by 55% year on year from NOK 193 million in 2024. This means that we now have already surpassed the full year 2024 revenue of NOK 274 million, which is a clear milestone for us. This year, adjusted EBITDA increased by 78% to NOK 69 million with a margin of 23% up from 19% last year. Profit before tax came in at NOK 29 million compared to a minus NOK 4 million in 2024 with a profit margin of 10% up from 2% year on year. Again, 2024 was impacted by IPO related expenses of NOK 18 million.
Looking at the growth in a longer perspective, the charts on the right show the strong development since 2019 with a compounded annual growth rate of 34% in revenue and 44% in adjusted EBITDA over the past six years. These results for the first nine months underline the scalability of our model and our ability to deliver profitable growth. Let’s move to the next slide for the key financials. Please also note that the full set of financial details is available in the quarterly report. We have already covered the numbers or the key numbers on the income statement, so let’s take a look at the balance sheet. Our equity ratio remains strong at 43%. Total assets amounted to NOK 541 million, up from NOK 408 million in Q3 2024. This is mainly due to investments in fixed assets.
Turning to financial metrics, earnings per share were NOK 0.92 in the quarter and NOK 2.76 year to date. Return on capital employed was 16%. The net interest-bearing debt over EBITDA ratio as of Q3 was 2.21. I would say that these metrics highlight a solid financial position giving us flexibility to continue investing in our growth strategy. Now let’s turn to the cash flow on the next slide. This is a new format this quarter for us. If we then start at the beginning of 2025, we had a cash and available unused bank facility totaling NOK 74 million. Further, in the first nine months of 2025, we generated a strong NOK 62 million in cash flow from operations. Investing activities amounted to NOK 42 million, which is mainly related to new equipment for solid waste handling.
This gives a free cash flow of approximately NOK 20 million for the period based on operational and investing cash flows. Please also note that we invested in additional equipment of NOK 63 million which was financed through financial leasing, which is then not reflected in the cash flow which is in accordance with IFRS 16. Moving on to the financing activities, this includes new borrowings of NOK 23 million, repayment of leases and borrowings of NOK 24 million, refinancing cost of NOK 1 million, net interest paid of NOK 13 million, and a capital increase of NOK 7 million from the exercise of employee share options. This gives us a cash position at the end of Q3 of NOK 46 million and then together with the new loan facility of NOK 167 million, this brings total available liquidity to NOK 213 million.
These new facilities provide a strong buffer for working capital and future investments and strengthen Soiltech ASA’s financial flexibility going forward. Thank you for your attention. With that, I will hand it back to Jan Erik for discussions on the outlook.
Jan Erik Tveteraas, CEO, Soiltech ASA: Thank you, Tove. Okay, we’re getting to the end of the presentation. Let’s have a look on how we see Soiltech going forward. Obviously, you know our starting point is that we continue to receive very positive feedback from our clients to our technologies and our solutions. This is kind of the basis for us and we’re never satisfied. You know, we will always try to excel and improve on our performance. We expect a short term drop in the activity in Q4 compared to Q3. This is due to a reduction in drilling on specific projects before we expect activity to pick up again in the first quarter next year. I can just explain what the effect is here and how this works is that when you are on a drilling project, sometimes there are other activities than drilling going on or when they are drilling.
For example, the initial top holes, we’re not using oil based mud, but water based mud which can be discharged. What happens during these periods with lower activity is that there is.
Tove Vestlie, CFO/Financial Officer, Soiltech ASA: Less.
Jan Erik Tveteraas, CEO, Soiltech ASA: Amount, reduced amount of waste for us to handle on the rig. That has two effects. One effect is that some of the equipment goes on standby, and the other effect is that there are fewer people from oversight on the rig to handle the waste. This is the effect that we are talking about. We have some products, several projects that are happening at the same time in the fourth quarter. They will go back up again and drilling in the next quarter. If you look at 2026 as a whole, based on the strong contract portfolio we have, we will continue to deliver solid growth. Looking beyond 2026, we see a strong and increasing market for our services. Just to go back a little bit to a discussion we’ve had before, you know, Soiltech, we’re not depending on the growth in number of weeks or not.
We are not vulnerable in variations in day rates because we have always been growing our market share, and this is what we intend. What we do is that we look at projects, available projects, and we see where the opportunity is for Soiltech to come in and improve the logistics and reduce the cost for our clients. We see that there will be a continued growth in the number of opportunities for us. More specifically, we see that, as we already touched on, Norway is a very active market going forward. I can also include the rest of Europe. We see signals that activity is picking up in the Netherlands. There are also some hopes for the UK that restrictions there on the tax regimes could be changed.
This is very early, but we see that there is a very good long-term view in Europe based on the energy demand that we see in Europe and Europe’s intention to stay self-supplied with energy. This is a strong driver for us, and we talked about our international focus markets. We are following up projects and are in the phase of developing projects, and they are moving forward. It’s taking some time, which it always does, but I’m very optimistic that we’ve been able to close on these projects, meaning that we can report increasing revenues from international going forward. To summarize, the refinancing that we did this summer was very important for us. We managed to get competitive terms based on the long-term context that we have, based on the clients that we have, and based on the progress that we are showing.
This means that we are in a strong position. We are fully financed. We have excess capacity of NOK 167 million, as Tove said, which is undrawn on our bank facilities. That puts us in the position to take opportunities in the market and to continue our growth going forward. This ends my presentation, Nikolay, then I will hand it over to you.
Nikolay, Moderator: Yeah, very good. That concludes the presentation of the results and we will now move over to the Q and A session. As a reminder, if you have any questions, post them through the Q and A chat function at the bottom of the screen and we will try to cover as many as possible. Starting off, Jan Erik, you stated in a recent presentation a goal of NOK 1 billion in revenue by 2030. Can you please comment a bit around this? Do you expect to reach this goal with your current asset base or do you expect to make additional investment?
Jan Erik Tveteraas, CEO, Soiltech ASA: We expect to make additional investments on that. This is something we have done every year to add to our asset base. We have tough requirements when it comes to the return on investment. That means that we are going to invest when we see profitable projects in line with the margins that we’re having today. We put this target because it’s good for everybody in Soiltech that we have kind of something that we all can work together, which I think is a realistic target for us. There will be variations between quarters and years, but I think the status is as the more that we are able to expand and diversify our client base and also geographical presence, then we will be able to grow our business on different fronts. We are basing it mainly on organic growth.
If there are opportunities out there which can be accretive to our shareholders and can be meaningful, be fit in our portfolio, we will of course look at that. Current focus is organic growth.
Nikolay, Moderator: Okay, perfect. That’s clear in the Outlook. Next question. In the Outlook section you mentioned demand driven by stricter regulations. Can you please provide some color on what these regulations are and how are they turning stricter?
Jan Erik Tveteraas, CEO, Soiltech ASA: Yeah, basically you can look at two types of regulation. One is related to the fluid business, which is meaning that the regulations for the discharge of water to sea, the oil content in the water is tightening, and they have always been tight in Norway. You see, for example, in the Middle East region, the restrictions on discharging oily water there have been tightened. That means that there are opportunities for companies that have efficient technology that can work on location. Like we have our Slop Treatment Technology units, which are very efficient when it comes to take down the oil content in the water, but also the solids content. I think that will bring us in a good position international on that segment. You have also a focus on, what can I say, the CO₂ reduction.
This is a target among all the oil companies, how that can be reduced. That means that if we can help our clients reducing, you know, the power consumption on the rig, which we do with, if we have a more efficient handling also in that way, if we can treat more on the rig, will be lesser cost to transport to shore, lesser onshore transport. Those are the two regulations that are tightening international.
Nikolay, Moderator: Okay, perfect. Thank you. You reported, I believe it was $14 million of investments during the quarter. Can you please specify what investments were in.
Jan Erik Tveteraas, CEO, Soiltech ASA: The investments that we did this quarter were related to the solid waste management business.
Nikolay, Moderator: Okay, a question from Pel here. He is very interested to hear more about your international activities. Are you seeing an increase in prospective clients or an increase in general discussions outside of the North Sea?
Jan Erik Tveteraas, CEO, Soiltech ASA: We talked about that a little bit earlier. At the moment, we are engaged in, I would call it, discussions with several clients in different key markets. We see that.
Nikolay, Moderator: And.
Jan Erik Tveteraas, CEO, Soiltech ASA: This is a kind of a result of we being more active in these selected markets. These are. It goes two ways. It’s either the initiative has been kind of initiated by Soiltech or can also be initiated by my client who is approaching also. That could be about 50, 50. I would say that in the markets that we talked about, in particular the Middle East, but also in Brazil, are markets that we are aiming at having an exposure or increasing the exposure.
Nikolay, Moderator: All right, there is a follow up to that question. It appears Aramco may begin a slow ramp up of jackup activity in Saudi Arabia. Given your recent ties to the region, have you seen any more specific opportunities related to this market?
Jan Erik Tveteraas, CEO, Soiltech ASA: The answer is yes, we have. This is one market that we are putting a lot of efforts in. We have a very good relationship with Aramco. We also see the same signs, although it has not been confirmed yet, that they are increasing their activity down there. We are looking at, what can I say, both onshore and offshore opportunities in that market. These are developing projects.
Nikolay, Moderator: All right, perfect. There’s a question too. You mentioned a dip sequentially from the third quarter, and you also went into the reasons for that. Are you able to sort of quantify how much lower the activity will be in the fourth quarter than in the third quarter?
Jan Erik Tveteraas, CEO, Soiltech ASA: What we’re saying is that we want to be transparent. We expect to have a lower revenue than we had in this quarter. I don’t want to go into speculation on how that will be. We have to see what is at the end of the quarter.
Nikolay, Moderator: Okay, that’s fine. On your sort of growth strategy going into 2026, what would you sort of see is the low hanging fruit that will create growth in 2026 in your opinion?
Jan Erik Tveteraas, CEO, Soiltech ASA: I would say that no leads are low hanging. I understand the question that some leads are more easy than others. I think it will be a combination of lower hanging fruits in Norway with the new and existing clients, and also that we will be able to realize new projects international that we have been working on for quite some time.
Nikolay, Moderator: All right, sounds good. We’re reaching the end of the question. Just a reminder again, if you have additional questions, post them through the chat function. The final question here is just related to the contract status. Did you have any rigs rolling on or off contracts during the fourth quarter?
Jan Erik Tveteraas, CEO, Soiltech ASA: I mentioned that we had those two. Statue Bear is rolling off due to they will do injection of the waste on the platform. That’s with Equinor. Also with Equinor we have one project calling on which is the new A platform. Other than that, there were no changes during the quarter.
Nikolay, Moderator: All right, perfect. Thank you. We reached the end of the questions and I want to say thank you to all for contributing and also thank you for letting us host your quarterly presentation. With that, I’ll leave the word back over to you, Jan Erik and Tove, for some concluding remarks. Thank you.
Jan Erik Tveteraas, CEO, Soiltech ASA: Thank you. I don’t know, Tove, what can we say? Personally, I would like to thank everybody for attending. We appreciate very much to have this dialogue where we can Q&As directly. I hope that you will continue to support Soiltech and that we will also see you again in the next quarterly presentation. Do you have anything to add to this, Tove?
Tove Vestlie, CFO/Financial Officer, Soiltech ASA: No, just thank you and have a nice day.
Jan Erik Tveteraas, CEO, Soiltech ASA: All right, thanks.
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