NYAB AB: NYAB AB's Interim Report January-September 2024: Doubled order backlog and strong profit improvement

• Solid revenue growth and strong project execution
• Improved operating margins and net profit
• Favorable market conditions resulting in a record-high order backlog

July-September in brief

• Revenue amounted to EUR 93.6 (88.1) million, representing a change of 6.2%. In constant currencies, revenue growth was 4.2%.
• Operating profit (EBIT) improved 35.4% and was EUR 8.9 (6.6) million, amounting to 9.5% (7.5%) of revenue.
• Free cash flow was EUR -8.3 (-3.8) million.
• Net debt/EBITDA was 0.06 (0.30).
• Order backlog improved 108.4% and amounted to EUR 381.9 (183.3) million.

January-September in brief

• Revenue amounted to EUR 228.8 (192.6) million, representing a change of 18.8%. In constant currencies, revenue growth was 18.3%.
• Operating profit (EBIT) improved 52.6% and was EUR 13.1 (8.6) million, amounting to 5.7% (4.5%) of revenue. In the comparison period in 2023, EBIT was benefited by EUR 3.3 million related to the settlement of Mikkeli dispute in Finland.
• Net profit was EUR 7.5 (5.5) million. Parent company's re-domiciliation and listing transfer to Sweden increased finance expenses by EUR 2.3 (0.7) million.
• Free cash flow was EUR 4.2 (5.5) million. In comparison period in 2023, free cash flow was benefited by EUR 9.2 million related to the settlement of Mikkeli dispute.

This release is a summary of NYAB AB's Interim Report January-September 2024. The complete report is attached to this release and available at https://nyabgroup.com/en/investors/nyab-as-an-investment/reports-and-presentations/.

Key figures (IFRS)

	7-9/2024	7-9/2023	1-9/2024	1-9/2023	R12 10/2023-9/2024	1-12/2023
Revenue, EUR thousand	93,551	88,098	228,820	192,569	316,668	280,417
Year-on-year change in revenue, %	6.2%	-2.5%	18.8%	17.7%	12.2%	10.7%
EBITDA, EUR thousand	10,080	8,000	16,726	12,796	25,304	21,374
% of net sales	10.8%	9.1%	7.3%	6.6%	8.0%	7.6%
EBITA, EUR thousand	9,047	7,132	13,864	10,174	21,508	17,818
% of net sales	9.7%	8.1%	6.1%	5.3%	6.8%	6.4%
Operating Profit (EBIT), EUR thousand	8,901	6,576	13,083	8,573	19,697	15,187
% of net sales	9.5%	7.5%	5.7%	4.5%	6.2%	5.4%
Profit for the period, EUR thousand	6,693	4,566	7,492	5,484	11,057	9,049
Earnings per share (EPS), basic, in euros	0.01	0.01	0.01	0.01	0.02	0.01
Earnings per share (EPS), diluted, in euros	0.01	0.01	0.01	0.01	0.02	0.01
Interest-bearing liabilities, EUR thousand	15,165	25,780	15,165	25,780	15,165	17,014
Equity, EUR thousand	184,521	181,032	184,521	181,032	184,521	185,326
Balance sheet total, EUR thousand	261,883	262,229	261,883	262,229	261,883	266,088
Return on equity, last 12 months, %	6.0%	14.5%	6.0%	14.5%	6.0%	4.9%
Return on capital employed, last 12 months, %	9.1%	13.8%	9.1%	13.8%	9.1%	6.6%
Equity ratio -%	73.9%	70.9%	73.9%	70.9%	73.9%	73.0%
Net debt, EUR thousand	1,454	10,037	1,454	10,037	1,454	-5,630
Net gearing -%	0.8%	5.5%	0.8%	5.5%	0.8%	-3.0%
Net debt/EBITDA, last 12 months	0.06	0.30	0.06	0.30	0.06	-0.26
Free cash flow, EUR thousand	-8,332	-3,787	4,157	5,518	20,977	22,338
Order backlog, EUR thousand	381,920	183,298	381,920	183,298	381,920	294,730
Number of employees at the end of the period	487	430	487	430	487	403

CEO Johan Larsson's review

Market conditions have continued to be favorable for NYAB, and we leave the third quarter with a record-high order backlog. As a result of solid revenue growth and strong project execution, we can also report improved operating margins and net profit in the third quarter as well as year-to-date.

In the third quarter and year-to-date, NYAB reports strong revenue growth and improved earnings compared to the corresponding period last year. Revenue, year-to-date, grew 19% and EBIT grew 52%, demonstrating good operational leverage. Our EBIT-margin improved to 9.5% (7.5%) for the quarter and on a rolling 12-month basis to 6.2%.

Market conditions in Sweden have continued to be favorable, with high activity in our core market segments. With subdued inflation and lowered interest rates, the macroeconomic environment now shows positive trends. Stable and low interest rates are an important factor for the markets we address. In Finland, markets are still subject to certain slowness, but we have seen signs of improvement.

As a result of our intensified work within power network construction, we have seen a good return on our efforts. During the third quarter, we secured projects worth more than EUR 100 million. Thanks to the flexibility of our organization and a high degree of collaboration between both countries and business units, we have been able to optimize resources and expertise towards this rapidly growing market segment, where we also have good conditions for further growth in 2025. After the quarter, NYAB together with our partner Azvi, was awarded the Uppsala Tramway project.

Without having a direct effect on our business, we have noticed that some large-scale projects within the ongoing green transition have encountered challenges. No one can still question that investments related to the green transition and reduced carbon dioxide emissions are necessary and will continue for a long time going forward. However, the focus is now on lowering risk and on financial viability, which can be regarded as a healthy development trend, and we anticipate that maturity to have positive effects on NYAB's addressable markets.

NYAB works with customers who have a strong financial position and with whom we have in most cases already worked on previous projects, establishing good relationships. This provides a solid foundation for further scaling up operations and volumes without increasing the relative risk.

While we still have room for improvement, our skilled personnel and scalable business model have shown their strengths both during the quarter and the first nine months of the year. I am really satisfied with our execution in accordance with our strategy during the third quarter. It has resulted in both increased volumes and improved profitability, which, together with a healthy order backlog, creates good conditions for a strong end of the year.

Presentation of the Interim Report

NYAB will arrange a live audiocast regarding the Interim Report on Wednesday, 6 November 2024 at 13:00 CET. In the webcast, NYAB CEO Johan Larsson and CFO Aku Väliaho will present NYAB's financial information and significant events for the third quarter. The audiocast will be available at https://nyabgroup.events.inderes.com/nyab-q3-report-2024.

Contacts

Johan Larsson, CEO, NYAB AB, [e-mail], [phone]

Aku Väliaho, CFO, NYAB AB, [e-mail], [phone]

NYAB's Investor Relations can be contacted by e-mail, [e-mail].

NYAB's Certified Adviser is Augment Partners AB, [e-mail], phone [phone].

This information was submitted for publication at 08:40 CET on 6 November 2024.

About NYAB

NYAB enables the progress of society for future generations with extensive experience from complex and challenging projects. NYAB provides services of engineering, construction and maintenance within sustainable infrastructure, industrial construction and renewable energy and therefore contribute to the green transition. NYAB operates in Sweden and Finland within both private and public sector.