* EBIT was 35% better than ABGSC and 27% vs cons
* Order backlog +18% y-o-y, plus major Uppsala tram order supports growth
* We expect estimates to be revised up 5-6% on the Q2 numbers
Q2 results
NYAB delivered a strong report with sales of EUR 162m, up 19% y-o-y (19% organic) and 10% better than FactSet consensus. Margins were also better, resulting in an EBIT of EUR 8.3m, up 45% y-o-y (35% vs ABGSCe 6.1m and 27% vs cons 6.5m). Net profit was EUR 7.7m (65% vs ABGSCe 4.7m and 55% vs cons 5.0m). The strength was driven by the Civil Engineering segment, where EBIT increased by 52% y-o-y while Consulting remained a bit softer due to weakness in the Norwegian offshore market. The order backlog in Civil Engineering reached a new high of EUR 502m, increasing 18% y-o-y, providing good support for continued growth as NYAB enters peak season in H2. The FCF was soft at 0.8m due to working capital increases, but the LTM remained strong at 33m (97% of EBIT).
Outlook and preliminary estimate changes
Management continues to see strong demand in key markets (power grid, transport, industry). Moreover, the Uppsala tram order signed in July will boost the order backlog further and support solid growth in the coming years. Based on the Q2 report, we expect consensus to raise earnings estimates by 5-6%. The Uppsala order is also not likely fully reflected in estimates.
Final thoughts
Overall, the report was strong. The share has been relatively flat into the print and trades at 10x EBIT on 2026e. We see good support for the company to continue growing at a double-digit range in the medium term.
There will be a conference call at 10:00 CET, you can use this link to participate in the webcast.