Lamor Corporation Plc | Stock Exchange Release | May 08, 2025 at 09:00:00 EEST
Lamor's Q1/2025: Orders received clearly above comparison period
The value of orders received in the first quarter increased to EUR 27.6 million, and profitability improved. Revenue was lower than the comparison period, as expected. Preparations for the Kilpilahti plastic recycling plant continued as planned. The strategy execution proceeded with the optimisation of the sales organisation and the global centralisation of delivery chain management. Lamor is preparing to establish a service center in Saudi Arabia to meet regional demand.
This release is a summary of Lamor's financial report. The complete report is attached to this release as a pdf file. It is also available on the company website at lamor.com/investors.
January-Mach 2025 in brief
- Revenue was EUR 19.0 million (23.9), a decrease of 20.3%
- EBIT was EUR 1.6 million (0.4) or 8.5% of revenue (1.6%), an increase of 318.2%
- Adjusted EBIT was EUR 1.7 million (0.5) or 9.1% of revenue (2.0%), an increase of 258.6%
- Net cash flow from operating activities was EUR -5.6 million (-13.1)
- Net working capital remained at the same level as at the end of the previous quarter and decreased by 27.7% compared to Q1/2024, amounting to EUR 55.8 million euros at the end of the period (77.1).
- Earnings per share (basic) was EUR 0.00 (-0.01)
- Orders received was EUR 27.6 million (16.0), an increase of 71.9%
- After the reporting period, on 7 May 2025, Lamor held its Annual General Meeting, which approved all the proposals made by the Board of Directors and the Shareholders' Nomination Board to the meeting.
The figures in brackets refer to the comparison period, which is the same period the previous year, unless otherwise stated.
Johan Grön, CEO
In the first quarter, the value of new orders received by Lamor increased significantly from the comparison period. Orders totalled EUR 27.6 million (EUR 16.0 million), turning the order backlog into growth. The growth in orders received was primarily driven by equipment orders for environmental protection technology, with the most significant ones being an EUR 8 million order from Kuwait and approximately a EUR 5 million order from Italy. Smaller orders were received widely from all market areas.
Lamor's environmental protection business is supported by high geopolitical risks, which increase the pressure to improve regional oil spill response capabilities. The nationwide spill in Ecuador in March was also a concrete reminder of the importance of maintaining oil spill response preparedness. After the incident, we have closely supported the customer by quickly delivering necessary oil spill response equipment to the area. Lamor has extensive experience in both incident control and soil remediation, typically required in the next phase - especially in particularly vulnerable areas. Due to good market demand and the NEOM deliveries, our environmental protection revenue in January-March was at the same level as last year, although the NCEC service project still contributed to the comparison period.
I am also pleased that our profitability increased significantly from the comparison period. Lamor's adjusted operating profit was at a good level of EUR 1.7 million (EUR 0.5 million) in January-March, although total revenue was predictably lower than last year. The decline in revenue was due to lower recognition from the Kuwait project compared to the same period last year and the impact of the NCEC project on the comparison period.
In the early part of the year, we have continued to make determined progress in line with our strategy, focusing on our key focus markets. This is reflected, for example, in the company's preparations to open a service centre in Saudi Arabia to meet the demand in the Middle East region. Our installed equipment base in the area has grown significantly in recent years, and a local service centre will enable us to start local manufacturing as well as to increase maintenance and training activities more broadly in the region.
Additionally, to scale up sales and use resources more efficiently, we reorganised our global sales organisation from a country-specific to a regional structure during the beginning of the year. Also, we centralised global delivery chain management and strengthened our project management team as part of our efforts to streamline procurement and deliveries.
In the soil remediation and material recycling businesses, we continued the planning phases for two significant projects in South America and the Middle East. Being involved in the early stages of these projects indicates customers' trust in Lamor's expertise and allows us to be in a good position to participate in the main projects when they begin. Preparations for the Kilpilahti plastic recycling plant continued as planned, and in April, we received the expected extension to our trial operation permit from the authorities.
After the reporting period, international economic uncertainties have clearly increased, and market volatility has grown, which may cause delays in our customers' decision-making and tender schedules. The prevailing economic uncertainty emphasises the importance of ensuring operational efficiency.
Key figures
| EUR thousand (unless otherwise noted) | Q1 2025 | Q1 2024 | Change % | 1-12/2024 |
| Revenue | 19,026 | 23,886 | -20.3% | 114,396 |
| EBITDA | 2,301 | 2,135 | 7.8% | 11,587 |
| EBITDA margin % | 12.1 % | 8.9 % | 10.1 % | |
| Adjusted EBITDA | 2,410 | 2,172 | 11.0% | 12,422 |
| Adjusted EBITDA margin % | 12.7 % | 9.1 % | 10.9 % | |
| Operating profit or loss (EBIT) | 1,611 | 385 | 318.2% | 5,315 |
| Operating profit (EBIT) margin % | 8.5 % | 1.6 % | 4.6 % | |
| Adjusted operating Profit (EBIT) | 1,725 | 481 | 258.6% | 6,385 |
| Adjusted operating Profit (EBIT) margin % | 9.1 % | 2.0 % | 5.6 % | |
| Profit (loss) for the period | 155 | -393 | -1,273 | |
| Earnings per share, EPS (basic), euros | 0.00 | -0.01 | -0.06 | |
| Earnings per share, EPS (diluted), euros | 0.00 | -0.01 | -0.06 | |
| Return on equity (ROE) % | 0.2% | -0.6% | -2.0% | |
| Return on investment (ROI) % | 1.3% | 0.3% | 4.5% | |
| Equity ratio % | 37.6% | 37.7% | 37.5% | |
| Net gearing % | 82.0% | 86.4% | 62.1% | |
| Net working capital | 55,760 | 77,120 | -27.7% | 54,751 |
| Orders received | 27,577 | 16,042 | 71.9% | 80,938 |
| Order backlog | 98,895 | 117,461 | -15.8% | 88,020 |
| Number of employees at the period end | 729 | 754 | -3.3% | 643 |
| Number of employees on average | 653 | 710 | -8.0% | 636 |
Guidance for 2025 (unchanged)
- Revenue is expected to increase compared to the previous year (2024: EUR 114.4 million).
- Adjusted operating profit is expected to increase compared to the previous year (2024: EUR 6.4 million).
Assumptions
The guidance is based on the existing order backlog and the management's view on market demand and known tenders. The company is currently negotiating several significant equipment sales and medium-sized service contracts in all its market areas.
Revenue is expected to be below the comparison period during the first half of the year and exceed it during the second half of the year. Achieving the revenue guidance requires a strong accumulation of new orders in the first half of the year. In 2025, the revenue from the continuing large service project in Kuwait is expected to be at the same level as the previous year, while the growth of other revenue outside of large service projects is expected to continue. For plastic recycling, the guidance assumes revenue will be limited during 2025.
In terms of profitability, the company estimates that the enhancement of sales and operational activities will lead to improved profitability, but the planned measures will have a more significant impact in 2026.
Long-term financial targets
The company's long-term financial targets (by the end of 2027) are:
- Growth: Increase revenue to EUR 170 million
- Profitability: Adjusted operating profit (EBIT) over 14% of revenue
- Dividend policy: Aim to distribute dividends, considering business development
- Capital structure: Suitable for the company's strategy, targets, and project portfolio by maintaining a strong balance sheet
Events after the reporting period
Annual General Meeting
The Annual General Meeting of Lamor was held on Wednesday 7 May 2025 as a hybrid meeting in accordance with the Finnish Companies Act. The Annual General Meeting was in favour of all proposals submitted to the General Meeting by the Board of Directors and the Shareholders' Nomination Board.
The Annual General Meeting adopted the 2024 financial statements, resolved not to distribute dividend, discharged the Board members and the Managing Director from liability, and approved the 2024 Remuneration Report for Governing Bodies in an advisory vote.
The Annual General Meeting resolved to elect five members of the Board of Directors, and re-elected Nina Ehrnrooth, Fred Larsen, Kaisa Lipponen, Timo Rantanen and Mika Ståhlberg as members of the Board of Directors. It is recommended that a member of the Board of Directors acquires shares in the company at the price paid in public trading with 40 per cent of her/his gross fixed annual fee until the value of the shares in the company owned by the respective member of the Board of Directors equals to two times her/his gross fixed annual fee.
The firm of authorised public accountants Ernst & Young Oy was elected as the Company's Auditor and the sustainability reporting assurance provider, with APA, ASA Mikko Rytilahti as the auditor and sustainability reporting assurance provider with principal responsibility.
The resolutions by and minutes of the Annual General Meeting will be available in their entirety on the company's website on 21 May 2025 at the latest.
Annual General Meeting's authorisations to the Board of Directors
The Annual General Meeting resolved to authorise the Board of Directors to decide on the issuance of new shares or treasury shares, on the terms defined in the resolution. Under the authorisation, a maximum of 2,500,000 shares, which corresponds to approximately 9 per cent of all of the shares at the time of the proposal, may be issued.
The Annual General Meeting resolved to authorise the Board of Directors to decide on the acquisition of the company's own shares in such a way that the number of own shares to be repurchased shall not exceed 2,500,000 shares.
The Annual General Meeting resolved to authorise the Board of Directors to decide on the issuance of shares as well as the issuance of option rights and other special rights entitling to shares pursuant to Chapter 10 of the Companies Act and on the terms defined in the resolution in such a way that the shares to be issued either directly or on the basis of option rights and other special rights under the authorisation shall not exceed 300,000 shares in aggregate, which would correspond to approximately one (1) per cent of all the company's shares at the time of the proposal.
The authorisations are valid until the close of next Annual General Meeting, however no longer than until 30 June 2026.
Organisation of the company's governing bodies
Convening after the Annual General Meeting on 7 May 2025 to its organisational meeting, the Board of Directors re-elected Mika Ståhlberg as its Chair and Fred Larsen as the Deputy Chair. The committee members were resolved as follows; Audit Committee: Chair Timo Rantanen, members Kaisa Lipponen and Mika Ståhlberg; Remuneration Committee: Chair Nina Ehrnrooth, members Kaisa Lipponen and Timo Rantanen.
Financial calendar for 2025
In 2025, Lamor will publish financial reports as follows:
- Half-year report January-June 2025 on 31 July 2025
- Interim report January-September 2025 on 30 October 2025
Webcast for shareholders, analysts and media
Webcast for shareholders, analysts and media on the results for the financial period January-March 2025 will be arranged on 8 May 2025 at 12:00 p.m. EEST. The webcast includes a Q&A session, and participants can ask questions in English and Finnish via the event chat room. The webcast can be followed at https://lamor.events.inderes.com/q1-2025.
A recording of the webcast will be available later at the company's website at lamor.com/investors/reports-and-presentations.
Porvoo, 8 May 2025
Lamor Corporation Plc
Board of Directors
Further information
Johan Grön, CEO, Lamor Corporation Plc
+358 40 5464186, johan.gron@lamor.com
Mikko Forsell, CFO, Lamor Corporation Oyj
+358 50 434 2516, mikko.forsell@lamor.com
About Us
Lamor is one of the world's leading providers of environmental solutions. For four decades, we have worked to clean up and prevent environmental incidents on land and at sea.
Environmental protection, soil remediation and material recycling: Our innovative technologies, services and tailored solutions, ranging from oil spill response, waste management and water treatment to soil remediation and plastic recycling, benefit customers and environments all over the world.
We are capable of vast and fast operations thanks to our connected ecosystem of local partners, steered by our experts. We have over 600 employees in more than 20 countries. In 2024, our turnover was 114 million euros. Lamor's share is listed on the Nasdaq Helsinki (ticker: LAMOR). Further information: www.lamor.com
