EQVA Q2 2026 slides: margin recovery starts as data center push gains

EQVA ASA released its second quarter and half-year 2026 financial results on August 26, indicating a start to margin recovery after a tough first quarter, alongside the growth in data centers and renewable energy sectors. The Norwegian industrial services firm reported H1 revenue of NOK 735 million, with Q2 profitability improving, though shares dropped 1.96% to $3 following the announcement, staying within the stock's 52-week range of $2.74 to $5.36.

The presentation highlighted EQVA's transition from a regional player to a national industrial platform, driven by strategic acquisitions and an expanding order book totaling NOK 1,067 million. Management emphasized data centers as a key growth driver, alongside their expanding renewable energy portfolio through Fossberg Kraft's hydropower development.

Q2 demonstrated a positive profit trend, with revenue of NOK 365 million and EBITDA of NOK 19.2 million, achieving a 5.2% margin, compared to 4.9% in Q1. For the first half, EQVA generated NOK 735 million in revenue and EBITDA of NOK 29.7 million, yielding a 4.0% margin. The company reported a pretax loss of NOK 15.7 million for H1 2026, mainly due to higher financing costs from its NOK 500 million bond issuance and post-acquisition integration expenses.

Adjusting for recent acquisitions, EQVA's pro forma last-twelve-month revenue was approximately NOK 1,567 million, with EBITDA of 6.8%, reflecting a better underlying business. Net leverage stood at 3.4 times EBITDA, with net interest-bearing debt of NOK 360 million. EQVA's growth strategy encompasses two paths: expanding its industrial services through acquisitions and developing renewable energy assets.

CEO Olav Hilmar Koløy emphasized the company's strategic position at the intersection of two major industrial megatrends: the surge in data centers and increasing demand for power. The acquisition of Einar Øgrey Farsund in June 2026, a mechanical and electro-mechanical specialist in Southern Norway, bolstered EQVA's geographical reach and service capabilities.

The company maintains a cash position of NOK 245 million and continues to assess acquisition opportunities at typical entry multiples of 4-5 times EV/EBITDA. EQVA Industrial Solutions, as a full-service industrial group, offers engineering, piping, steel structures, tank systems, power and automation, ventilation, and mechanical solutions.

This segment delivered pro forma LTM revenue of NOK 1,511 million and EBITDA of NOK 117 million, with a 7.4% margin. The company's diverse portfolio spans aquaculture (26%), defense and other (25%), maritime (14%), offshore (13%), land-based industries (12%), and smelters (9%), providing resilience against sector-specific downturns.

A notable Q2 achievement was securing a contract exceeding NOK 100 million with Data Centre Installations for a project in Tydal, showcasing EQVA's integrated capabilities across various disciplines. CFO Daniel Molvik highlighted the group's ability to quickly mobilize across functions to win higher-margin projects. EQVA's order book stood at NOK 1,067 million at the end of Q2 2026, showing consistent growth since Q4 2024, fueled by both organic expansion and acquisitions.

The order book composition, comprising 52% framework agreements, 40% fixed price contracts, and 7% time and material contracts, reflects EQVA's diversified contracting approach with major industrial clients. H1 2026 profit and loss showed significant revenue growth driven by acquisition-related volume increases, with operating income of NOK 735.3 million and EBITDA of NOK 29.7 million.

Operating profit (EBIT) amounted to NOK 9.1 million after accounting for depreciation of NOK 20.6 million. Net financial items totaled NOK 24.8 million, primarily due to higher interest costs on the recent bond issuance, leading to a pretax loss of NOK 15.7 million. Management stressed that Q2 marked a recovery from Q1's weaker project mix, with revenue of NOK 735 million indicating substantial growth, though EBITDA remains a concern.