Vow Asa

Second-quarter revenue was NOK 253 million, up 11% year over year. Gross profit was NOK 88 million and gross margin was 35%; adjusted EBITDA was NOK 32 million versus negative NOK 33 million in Q2 last year; result before tax was NOK 12 million. Maritime revenue increased to NOK 131 million, Aftersales revenue was NOK 63 million, and Industrial revenue was NOK 59 million. Backlog ended at NOK 1.6 billion. For the first half, available liquidity was NOK 118 million. Management did not provide full-year revenue or EPS guidance, but said order intake was soft, backlog is strong, and after quarter-end it signed about NOK 150 million in new contracts.

Gunnar Pedersen emphasized that the company has gone through major organizational change over the past year, including new management and three business units, and said the operational improvements are now showing through in customer satisfaction, delivery precision, and employee engagement. He framed the quarter as evidence that the strategy and profit improvement program are working, while acknowledging that order intake was soft and liquidity and refinancing remain key priorities. His tone was constructive and upbeat, especially on Maritime and Aftersales, but careful on Industrial and the balance sheet.

Cecilie Hekneby highlighted the financial turnaround: revenue of NOK 253 million, gross profit of NOK 88 million at a 35% gross margin, adjusted EBITDA of NOK 32 million, and pre-tax profit of NOK 12 million. She said margins improved due to stronger operational performance, lower employee and other operating expenses, and fewer legacy-project effects, while interest expense was NOK 13 million and net finance was negative NOK 6 million. On cash, she noted that trade receivables rose by NOK 86 million from year-end, available liquidity ended H1 at NOK 118 million, and a temporary overdraft increase was used but terminated in August after July payments arrived. She also said covenant breaches occurred because of delayed customer payments, a waiver was received after the reporting period, refinancing is in progress with DNB, and the company does not expect to need additional equity.

Analysts focused on delayed customer payments, currency exposure, refinancing, food safety options, cruise market demand, and the pace of Industrial commissioning. Management said the late payment was a substantial amount, above NOK 100 million, and came from recurring, important customers after a very large number of deliveries; they said the issue was anticipated and mitigated with the bank. On refinancing, Cecilie said they expect to conclude with DNB, do not expect a very different covenant structure, and do not expect additional equity. On Industrial, Gunnar said the reactors are producing but not yet fully run because surrounding equipment is still being installed, and he reiterated confidence in the technology.