NYAB (NYAB) Avanza Börsdag 2024 summary

Business profile and performance

• Specialised contractor focused on infrastructure, energy and industrial projects across Sweden and Finland; 487 employees and ~57% public-sector revenue at Q3'24.

• LTM Q3'24 revenue €317m, EBIT €19.7m, EBIT margin 6.2%, free cash flow €21m and net debt/EBITDA 0.06x; order backlog €382m.

• Revenue grew 18.8% YoY in Q1–Q3'24; Q3'24 order backlog increased 108% YoY. LTM Q3'24 revenue growth was 12.2%.

• Sweden-focused revenue rose at a 41% CAGR from 2014 to LTM Q3'24; 2014–2020 figures use prior holding-company consolidated statements, while 2021 onward uses IFRS figures.

Markets and demand drivers

• Green transition, electrification, climate impacts, de-globalisation and urbanisation support demand for power transmission, renewable energy and infrastructure investments.

• Planned long-term green-project investments in Sweden and Finland exceed €300bn; Sweden's main-grid investment need is €90bn over the next 20 years.

• Swedish construction excluding housing is forecast to grow 4% in 2024 and 9% in 2025; Norrbotten forecasts are 19% and 7%, respectively.

• Finnish construction excluding housing is forecast to decline 3% in 2024, then grow 2% in 2025; energy-sector projects are identified as a source of investment interest.

Projects and operating model

• Recent work includes a 90 km, 400 kV Sweden–Finland transmission line for Svenska kraftnät, due 2026, and a 102.5 MWp solar farm in Finland, due 2026.

• Other selected projects include Trafikverket road, railway and water works; power lines for Vattenfall; and industrial facilities for LKAB, Duroc Rail, Talga and Yara.

• Asset-light model emphasizes design and project management, with subcontractors performing parts of delivery; over 70% of the Swedish project organisation are white-collar roles.

• FY'23 revenue per FTE was €684k, versus €471k for niche providers and €336k for broad legacy providers in the cited peer comparison.