Q2 2026 Multiconsult ASA Earnings Call Transcript
Key Points
- Multiconsult ASA (LTS:0R8N) reported a strong revenue growth of 7.8% in Q2, with a significant EBITDA margin improvement to 7.8% from 4.8% in the prior year.
- The company secured three new framework agreements with the Norwegian Defense Estates Agency, bringing the total to 26 with Nordic state defense agencies, positioning it well for future defense-related projects.
- Multiconsult ASA (LTS:0R8N) demonstrated effective cost control, reducing other operating expenses by 6 million NOK year-over-year despite revenue growth, and cutting 35 employees in Norway to align capacity.
- The company received a favorable court ruling in the Sutralink project, securing 84.2 million NOK in damages plus interest, with a total positive earnings before tax impact of 41.3 million NOK in the quarter.
- Multiconsult ASA (LTS:0R8N) maintains a strong financial position with positive cash flow of 388 million NOK over the last 12 months and a gearing ratio of 1.91, well within its financial targets.
- The company is well-positioned in digital and AI capabilities, with structured data and applied AI in both internal processes and customer projects, which is crucial for future growth.
- Multiconsult ASA (LTS:0R8N) experienced a decline in billing ratio by 1.3 percentage points in Q2, which is not at a satisfactory level and pressures profitability.
- Organic growth was only 0.7% in the quarter, significantly lower than the overall revenue growth, indicating underlying market challenges.
- The order backlog decreased by 13.5% year-on-year, raising concerns about future revenue visibility despite the company's reassurances.
- The company faces margin pressure as employee benefit costs increased by 4% per FTE, outpacing the modest organic revenue growth, requiring ongoing cost adjustment measures.
- Delayed project starts, particularly on framework agreements, are negatively impacting the billing ratio and creating uncertainty in revenue timing.
- The international segment saw a 6.3% decrease in net operating revenues due to negative currency effects and lower billing ratios, reflecting challenging market conditions in Sweden and Poland.
Hello and welcome to this presentation of MultiConsults Group's second quarter results and also my first quarter presentation as a new CEO in MultiConsults. I will do this together with my CFO Uwe Haltberg and I will start with some introduction from my side. First sharing my first impression as a new CEO.
Having now spent two and a half months, I've been warmly welcomed by the staff and I really see engaged and highly skilled people. So it's really exciting to learn about our organization and how we are well positioned within a lot of areas. I'm impressed by our ability to collaborate both internally.
And also with our partners and clients and also how we are able to deliver large and complex projects to our clients in a good way. I've noticed we have a very good order backlog, we have a healthy sales pipeline and we have a lot of framework agreements. So good on the market side.
One of the things I was curious about when I entered this new role was how we are positioned within digital and AI. Of
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