LUFTTRANSPORT RW more than doubled revenue, but its cash fell by almost two thirds

LUFTTRANSPORT RW AS, a Norwegian limited company based in Tromsø, grew revenue to NOK 380m in FY2025 from NOK 179m a year earlier, an increase of 112.6%. Net profit rose to NOK 27.3m from NOK 6.2m, and the operating margin edged up to 11.2% from 9.6%. Cash moved the other way. It fell by 64.8% to NOK 7.7m, from NOK 21.8m at the end of FY2024. Profit grew sharply, and the cash balance shrank.

Growth usually costs cash before it brings any in. Customers pay weeks after delivery, and new capacity is paid for up front, while profit is booked when the sale is made. Equity rose to NOK 38.4m, so the equity ratio is 15.7% of total assets of NOK 245m. That is a thin cushion for a business that has grown this fast. The accounts do not show how much of the sales is still unpaid. I would watch the cash line before the profit line.