NYAB (NYAB) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 grew to EUR 135.3 million, up 29.5–30% year-over-year, with EBIT more than doubling to EUR 4.2 million and a margin of 3.1%.

• Order backlog reached a record EUR 342.6 million, up 36% year-over-year, driven by large energy and infrastructure projects.

• Completed cross-border conversion and listing transfer to Nasdaq First North Premier in Sweden, enhancing share liquidity and institutional ownership.

• Acquired Dyk & Anläggning Stockholm AB, expanding waterworks and marine construction capabilities.

• Asset-light business model and strong balance sheet position the company for continued growth.

Financial highlights

• Q2 2024 revenue was EUR 76.1 million, up 16.5–17% year-over-year, mainly from energy projects, especially power network projects.

• Sweden contributed nearly 75% of revenue in Q2, with public sector share rising to 61%.

• H1 2024 net profit was EUR 0.8 million, impacted by EUR 2 million in costs related to redomiciliation and listing transfer.

• Free cash flow for H1 2024 was EUR 12.5 million, up from EUR 9.3 million; Q2 free cash flow was minus EUR 1 million, flat when adjusted for acquisition costs.

• Net cash position at end of Q2 2024 was EUR 7.2 million; equity ratio 73.3%; ROCE 8.1%.

Outlook and guidance

• Reaffirmed guidance for 2024: revenue and operating profit expected to increase from 2023, with long-term targets of >10% annual revenue growth, EBIT margin >7.5%, and net debt/EBITDA <1.5.

• Underlying market growth expected to remain high in core Swedish and Finnish construction markets through 2025, especially in northern Sweden; Finnish market remains soft but with some positive signs.

• Tendering activity in Sweden robust and above last year, with continued strong pipeline in infrastructure and energy.