Growth is running well ahead of profit

FORCES AS, a Norwegian limited company based in Skien, reported revenue of NOK 28.1m for FY2025, up from NOK 5.9m a year earlier. Profit moved the other way. Operating profit fell to NOK 810k from NOK 1.6m, and net profit to NOK 517k from NOK 1.3m. The operating margin narrowed by 24.8 pp to 2.9%, after 27.7% in FY2024. The company is now much larger and earns less from its operations in absolute terms.

Margins usually thin in a jump like this when new business is won on price, or when staff and overhead are added before the revenue pays for them. The balance sheet shows the same stretch: total assets rose to NOK 9.2m and the equity ratio fell to 17.8% from 44.8%, though cash rose to NOK 1.4m. The operating margin now sits 0.9 pp below the peer median of 3.8%. The accounts do not say which customers or costs caused it. I would watch whether the margin recovers as the new revenue settles.