AF Gruppen Closes Year with Strong Results and High Order Intake
AF Gruppen reported strong financial results for the fourth quarter of 2024, closing the year with solid profitability and a robust order intake. The company’s revenues reached NOK 8,595 million in Q4, up from NOK 8,378 million in the same period last year. Annual revenue for 2024 stood at NOK 30,638 million, slightly surpassing 2023’s NOK 30,530 million.
Profit before tax saw a significant rise, hitting NOK 589 million in Q4 compared to NOK 292 million last year. For the full year, profit before tax reached NOK 1,085 million, a substantial increase from NOK 700 million in 2023. The profit margin for Q4 improved to 6.9% from 3.5%, while the annual margin rose to 3.5% from 2.3%.
AF Gruppen recorded an order intake of NOK 12,505 million in Q4, up from NOK 8,504 million in the same quarter last year. By year-end, the order backlog stood at NOK 40,351 million, slightly lower than NOK 41,991 million in 2023.
The company maintained a strong financial position, with net operating cash flow rising to NOK 1,080 million in Q4 from NOK 855 million last year. Full-year net operating cash flow increased to NOK 2,217 million from NOK 1,552 million. As of December 31, 2024, AF Gruppen had a net interest-bearing debt (receivable) of NOK -99 million, a significant improvement from NOK 641 million last year. Earnings per share rose to NOK 6.52 from NOK 3.73 in 2023. The Board of Directors has proposed a dividend of NOK 5.00 per share, up from NOK 3.50, to be paid in the first half of 2025.
CEO Amund Tøftum expressed satisfaction with the company’s performance, emphasizing strong profitability, healthy cash flow, and a solid order intake. “The Civil Engineering, Betonmast, and Energy and Environment business areas delivered excellent profitability, and our Swedish operations showed positive development. We are also pleased with the sustained improvement in safety performance across the Group,” Tøftum stated.
AF Gruppen continues to enforce strict safety standards across all partners and suppliers, aiming for zero serious injuries and work-related absences. The LTI-1 rate for Q4 was 0.2, a significant improvement from 0.9 last year, while the annual LTI-1 rate dropped to 0.5 from 0.8. Work-related absences remained stable, with a 4.5% illness-related absence rate in Q4, slightly up from 4.2% last year. The full-year rate remained unchanged at 4.1%.
Tøftum highlighted the company’s strategic approach to diversification, aiming to meet market demand while providing opportunities for employee development. “We have taken on larger and more complex civil engineering projects over time and will continue in this direction. Our teams are well-equipped for demanding projects, ensuring our future competitiveness,” he added.
Business Area Highlights:
Civil Engineering: This division experienced a 30% revenue increase in Q4 compared to the previous year and delivered strong results. AF Anlegg achieved record-high annual revenue in 2024, with a particularly strong Q4 performance. The company maintains a solid project portfolio, with major projects in production performing well. Målselv Maskin & Transport, VSP, and Stenseth & RS reported high profitability.
Construction: Revenue slightly declined compared to last year, but profitability remained stable. AF Byggfornyelse, AF Bygg Østfold, Strøm Gundersen, Strøm Gundersen Vestfold, Haga & Berg, and Åsane Byggmesterforretning delivered strong Q4 results.
Betonmast: Revenue and profitability increased, with a Q4 profit margin of 7.9%. Betonmast Oslo, Trøndelag, Romerike, Røsand, Innlandet, Asker og Bærum, and Østfold all delivered strong results.
Property: High interest rates and market uncertainty led to continued low sales in Q4. AF Gruppen signed contracts for 21 homes, of which its share was eight, compared to 12 homes (six owned by AF) last year. The company sold its stakes in Bekkestua Have and Baneveien 16 without a major impact on financial results. By year-end, one residential project, Rolvsrud Arena in Lørenskog, was in production, with 194 units under construction. Sales contracts had been signed for 96 units, resulting in a 49% sales ratio.
Energy and Environment: Revenue and profitability remained stable. AF Energi significantly increased activity in Q4 and delivered strong results. AF Decom also reported a very good quarter, continuing its environmental efforts by sorting and recycling materials. In Q4, AF Decom demolished structures and facilitated the recycling of approximately 2,917 tonnes of metal, up from 2,875 tonnes last year.
Sweden: The Swedish division, encompassing civil engineering, construction, property, and demolition operations, experienced a 21% revenue decline compared to last year. However, profitability improved significantly. Kanonaden, AF Prefab Mälardalen, AF Bygg Syd, AF Härnösand Byggreturer, and HMB delivered strong results, while former Betonmast Sweden companies struggled.
Offshore: Activity levels were slightly lower than last year. Aeron achieved substantial revenue growth and a solid Q4 result, while AF Offshore Decom experienced a decline in activity and weaker financial performance.
AF Gruppen’s 2024 financial performance underscores its resilience and ability to navigate a complex market environment while maintaining strong profitability and growth potential. The company remains committed to its strategic goals, emphasizing safety, sustainability, and operational excellence across all business areas.
