Q1 2026 Ncc AB Earnings Call Transcript
Key Points
- NCC AB (LTS:0OFP) reported a strong order intake of SEK14.8 billion, marking a 5% increase compared to the previous year.
- The company achieved stable earnings in its Contracting business, with improved margins despite lower net sales.
- Industry segment showed a 17% increase in orders received, indicating strong market demand.
- NCC AB (LTS:0OFP) maintained a low net debt level at 0.8, well below their target.
- The company has set ambitious climate targets, aiming for net zero emissions by 2045, with significant progress already made.
- Net sales in the Contracting division fell due to the phasing out of large projects with zero margins.
- The Industry segment experienced negative earnings in Q1, exacerbated by a cold winter impacting stone sales.
- Property Development remains slow with no profit recognitions from project sales, relying solely on property leasing.
- The company faces potential risks from increased energy prices and high market volatility, which could impact costs and demand.
- Residential market outlook remains cautious, with no significant recovery expected in the near term.
Good morning, everybody, and welcome to this presentation of the first quarter for 2026 for the NCC Group. I'm Tomas Carlsson, CEO of NCC. And with me here, I have Susanne Lithander, the CFO of the NCC Group. And Susanne will come back and give you all the details of this quarter. I will start with something I have never done before.
I will start with the readers manual of the Q1 report because there are some things that may confuse in understanding what's going on. And what is important to understand is this, you need to separate the different business areas that we have or business models that we have. And I'd like to talk about Contracting, Industry and Property Development in particular. Contracting business. We have an operating profit earnings that is good.
It's SEK177 million. And that despite the fact that revenues are down heavily, and that's because we have managed to get rid of a number of large projects with 0 margins. So what happens is this, earnings is the same, net sales is down and margins goes up and continued
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