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Third party research

NYAB: New power line contract with Svenska Kraftnät - ABG

NYAB

This is a third party research report and does not necessarily reflect our views or values

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* Signs new phase-1 contract for Norrbotten power line* Phase-2, starting 2026, could be the largest contract yet (~EUR136m)* This and the Uppsala Tram project could drive substantial cons. revisions
Another major power line project de-risks estimates
NYAB announced a new phase-1 (planning phase) contract with Svenska Kraftnät regarding a new power line in Norrbotten, with project beginning immediately (link to press release). It also states that the phase-2 (expected to start in early 2026) could be worth ~EUR 136m. NYAB typically wins phase-2 contracts after it has won the phase-1, and we therefore think it is likely that it will sign this phase-2 as well, potentially within the coming months. This reduces estimate risk for 2026-2027 significantly. For reference, the current order backlog in Civil Engineering already supports growth in 2026 (order backlog was EUR 404m, +6% y-o-y in Q3) and we currently forecast 7% organic growth for NYAB in 2026e. In addition to this new power line project, which would be NYAB's largest contract so far, it has also signed a phase-1 contract for the Uppsala Tram project where the phase-2 (not signed yet) is estimated at ~EUR 450m (where NYAB could receive ~50% through the JV). We think it is likely that both are signed in the coming quarters, which we think would trigger at least 5-10% positive revisions to consensus estimates.
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