NYAB: Uppsala Municipality withdrew the original decision on the tramway project

Translation: Original published in Finnish on 11/26/2024 at 7:20 am EET

On Monday, the company announced that Uppsala Municipality had informed that it would withdraw its decision from the end of October to select NYAB together with Azvi as the main contractor for the Uppsala tramway project (see our comment here). This was a result of the appeal filed by another bidder, as previously announced by the company, which delayed the signing of the contract (see our comment here). According to NYAB's press release, Uppsala Municipality has determined that further assessments are necessary before awarding the contract, but a new decision will be published as soon as possible.

We feel the withdrawal of the original contract cannot be interpreted strongly in either direction, as it may also be mainly due to technical issues. We see, however, that the withdrawal raises some uncertainty regarding the finalization of the contract, the ultimate cancellation of which would naturally be a disappointment for NYAB. However, we are waiting for a new decision at this stage.

On the other hand, the withdrawal does not have an immediate impact on our forecasts, but we believe especially the possible finalization of the second stage of the project (value of the second stage for the joint venture estimated to be 5 BNSEK) will significantly support our growth forecasts for the coming years, especially from 2026 onwards. We will add the business transactions announced by the company last week to our forecasts in the coming days.