NCC (NCC) investor relations material

Executive summary

• Group achieved strong Q2 2026 performance with high order intake of SEK 14.1 billion and record Industry segment earnings of SEK 448 million, supported by improved contracting margins and high-quality backlog.

• EBIT remained stable at SEK 635 million, as higher operating profit was offset by increased legal dispute costs.

• Order backlog increased by SEK 5.2 billion over six months, with a book-to-bill ratio of 1.2 for H1 and higher quality projects.

• Positive market outlook with robust demand in infrastructure, industrial construction, and public buildings, though commercial property market remains cautious but shows signs of recovery.

• Legal dispute costs increased significantly, impacting 'Other and Eliminations' and offsetting operational profit gains.

Financial highlights

• Q2 2026 orders received: SEK 14,129 million (+5.5% YoY); net sales: SEK 14,221 million; EBIT: SEK 635 million; net profit: SEK 452 million; EPS: SEK 4.62.

• Industry segment achieved record Q2 EBIT of SEK 448 million, margin improved to 10.7% (Q2 2025: 9.8%).

• Net debt at SEK -3,330 million at period end, up year-over-year, mainly due to negative cash flow and increased investments.

• Net Debt-to-EBITDA at 2.05x, below the target of 2.5x.

• Cash flow before financing in Q2: SEK -861 million; cash and cash equivalents at period end: SEK 274 million.

Outlook and guidance

• Second half of the year expected to be similar to the first half, with continued high order intake and backlog quality supporting a positive outlook.

• Long-term market conditions in the Nordic region remain positive, driven by infrastructure investments and urbanization.

• Dispute-related costs anticipated to persist for several years, with variability quarter to quarter.

• Major profit contributions from Green Industry Transformation expected next year.

• Uncertainty persists due to volatile energy prices and macroeconomic factors.