LEIRVIK AS lifted its operating margin to 8.6% while revenue fell 21.9%

LEIRVIK AS, a Norwegian company based in Stord, posted an operating margin of 8.6% in FY2025, up from 5.6% a year earlier. Revenue fell to NOK 1.2bn from NOK 1.5bn, yet operating profit rose to NOK 101m from NOK 84.1m, and net profit reached NOK 79.3m against NOK 64.2m. Across 4 comparable companies the median operating margin was 0.8%. That leaves LEIRVIK AS 7.8 pp ahead. Smaller sales, larger profit: the usual order of things, reversed.

A margin this far above peers usually comes from pricing power, a less crowded niche, a lower cost base or owned premises. The accounts do not say which applies here. Falling revenue with rising profit can mean weaker business was shed or costs were cut, but a thinner top line can also flatter a margin. The balance sheet is stronger: the equity ratio rose to 43.2% from 24.1%, and cash reached NOK 34.6m. A gap this wide invites competitors, and a good year on a smaller base is not yet a habit.