NYAB Q3 on Friday: Our estimates see revenue and earnings growing year-on-year
Translation: Original comment published in Finnish on 11/8/2023 at 6:23 am EET.
NYAB will publish its Q3 report on Friday. We expect the company's revenue and EBIT to grow in the seasonally strong quarter. In addition to the figures, we will be interested in any revisions to the current year's guidance and comments on the market outlook.
Our estimates see revenue and earnings growing year-on-year
We forecast NYAB's Q3 revenue to increase by 10% year-on-year to EUR 99.4 million. We expect growth to be supported by the order book that was particularly strong in Q2'23 (252 MEUR), although it is uncertain how the order book will be unloaded more precisely.
We expect the company's reported EBIT to land at EUR 8.6 million, corresponding to an EBIT margin of 8.7%. Thus, our estimates see relative profitability significantly increasing year-on-year, supported by the profitability turnaround in the Finnish businesses. However, in light of the company's summer earnings warning, we believe that inflation has had a negative impact on the profitability of some projects. At the bottom of the P&L, we forecast that the result will be depressed by losses in associates and slightly higher financing expenses due to the costs related to the re-domiciliation. In turn, we expect taxes to have been at a moderate level in line with the parent company's previous deductible losses and, reflecting this overall picture, we expect the reported net result to have been EUR 7.1 million.
Possible specification of guidance is of interest
Under its current guidance, NYAB expects revenue to be EUR 290-315 million and EBIT to be EUR 16-24 million. As such, our eyes are on any revisions to the guidelines in the context of the report. Before the report, our expectations for the current year are around the midpoint of the guidance range (revenue 303 MEUR, EBIT 19.1 MEUR).
In addition, we will continue to monitor any comments on the market outlook. In the summer, the company anticipated a short-term headwind from macroeconomic factors (inflation and rising interest rates), which it expected to delay investment decisions in the Swedish infrastructure and Finnish energy construction markets (especially wind power BoP). Thus, we will continue to monitor the situation with regard to the evolution of the demand picture (including the order book). However, after the reporting period, the company announced a significant contract for construction work on the Aurora Line in Sweden, which will support the company's development in the coming years, although we understand that it will not be yet reflected in Q3 order intake (we estimate that it will be included in Q4 order intake). We will also keep an eye out for any comments on the re-domiciliation and transferring from Nasdaq Helsinki to Nasdaq Stockholm.
NYAB
NYAB är verksamma inom energisektorn. Bolagets verksamhet är inriktad mot energi, infrastruktur och industriellt byggande, samt tillhörande projektledning inom förnybar energi. Särskild fokus innehas mot vindkraftverk. Utöver huvudverksamheten erbjuds alternativa energilösningar samt tillhörande service. Bolagets kunder återfinns exempelvis inom industri samt offentlig sektor. Störst verksamhet återfinns inom den nordiska marknaden.
Read more on company pageKey Estimate Figures2023-10-11
2022 | 23e | 24e | |
---|---|---|---|
Omsättning | 253,3 | 302,6 | 348,1 |
tillväxt-% | 92,33 % | 19,45 % | 15,02 % |
EBIT (adj.) | 27,2 | 21,1 | 25,5 |
EBIT-% | 10,74 % | 6,98 % | 7,33 % |
EPS (adj.) | 0,04 | 0,02 | 0,03 |
Utdelning | 0,01 | 0,01 | 0,01 |
Direktavkastning | 0,80 % | 1,69 % | 2,12 % |
P/E (just.) | 24,85 | 19,72 | 16,18 |
EV/EBITDA | 20,52 | 12,91 | 10,67 |