Despite an 8% Y/Y decline in sales, NRC Group reported a Q2/21 EBITA margin of 3.1% vs. 1.6% in Q2/20. The 1.5pp improvement Y/Y was explained by improved cost efficiency in Finland, where measures to reduce overhead costs were implemented in H2/20. Despite fierce competition in Norway and Sweden we expect financial performance to gradually improve, following a strong order intake in Q2/21. We reiterate our Buy recommendation with a TP of NOK 25.
