Webstep (WSTEP) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue stable at NOK 225.6 million; full-year revenue up 1.5% to NOK 874.1 million.

• Q4 EBIT improved to NOK 15.5 million from -NOK 26.8 million; full-year EBIT NOK 66.7 million vs. NOK 17.0 million in 2023.

• Net profit for Q4 was NOK 12.5 million (vs. -NOK 26.9 million); full-year net profit NOK 49.2 million (vs. 4.4 million).

• Cost reduction initiatives and divestment of Swedish business sharpened focus on Norwegian core and improved margins.

• Share buyback of NOK 25.2 million completed in October; proposed dividend of NOK 2.30 per share (NOK 62.3 million total).

Financial highlights

• Q4 EBIT margin 6.9% (up from -11.9%); adjusted for one-off costs, margin was 8.4% (vs. 3.6%).

• EBITDA for Q4 was NOK 19.5 million (vs. 2.7 million); full-year EBITDA NOK 85.1 million (vs. 59.8 million).

• Net free cash flow for Q4 at NOK 43.7 million; equity ratio improved to 56.6% from 50.7%.

• Earnings per share Q4 NOK 0.48 (vs. -0.97); full-year NOK 1.80 (vs. 0.16).

• Number of FTEs at period end: 446, down from 471 last year.

Outlook and guidance

• Digitalisation and energy transition remain strong market drivers, especially in the energy sector.

• Market activity is mixed: energy sector vibrant, other sectors cautious; moderate demand overall.

• Company targets long-term EBIT margin above 10% with sustainable top-line growth.

• Organisation adapting to be more dynamic and agile, focusing on collaboration and customer-centricity.