Q3 2025 NCC AB Earnings Call Transcript
Key Points
- NCC AB (STU:NCGB) reported a strong EBIT growth of over 15% compared to the previous year.
- The company achieved an all-time high profit in its industry segment, with SEK461 million in profit.
- There is a positive outlook due to a large number of early involvement projects, with approximately 40 projects estimated above SEK500 million.
- The company has secured significant contracts, including a SEK7.5 billion power line development project in Sweden and a major construction contract for a new steel mill in Lulea.
- NCC AB (STU:NCGB) has a low net debt and a strong return on capital employed, outperforming its target of 12% with a return of 17.1%.
- The property development segment faced challenges with very low letting in the quarter and a minus SEK10 million in earnings.
- The order backlog was negatively impacted by the strengthened Swedish krona, resulting in relatively flat sales.
- The infrastructure segment experienced a weak order intake, with a decrease in the order backlog expected in the fourth quarter due to a terminated contract.
- The Finnish market remains weak, affecting the performance of the Building Nordics segment.
- The company faces potential legal challenges and claims related to the terminated Korsvagen project in Gothenburg.
Welcome everybody, and good morning and welcome to this third quarter earnings call for the NCC Group. And I'm Tomas Carlsson, the CEO, and with me here I have our CFO Susanne Lithander. And I will start this presentation by summarizing the quarter like this. We have a very strong EBIT growth in the quarter, 15% plus compared to last year.
Driven by two things all-time high profit in industry. We are really happy about that, SEK461 million in profit for industry, but also solid development in the contracting business with EBIT margin about 3% at this quarter.
So, current earnings, are in very good shape, and we're also really happy about the large number of early involvement projects that we have and that we have one during the quarter, and I will get into more details about that. But currently we have Approximately 40 projects above 500 estimated volume of above SEK500 million. So, overall, a good quarter now, but also a positive outlook through our early involvement projects.
Earnings quarter on quarter developing
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