NCC (NCC) Q1 2025 earnings summary

Executive summary

• Q1 2025 showed stable but seasonally low sales and EBIT, with strong demand and robust orders, especially in infrastructure and Building Sweden.

• Orders received increased to SEK 14,002 M from SEK 13,353 M year-over-year, with a book-to-bill ratio of 1.3 in Q1.

• Property Development recognized no project sales or profits this quarter, impacting earnings compared to last year.

• Board proposes a total dividend of SEK 11.00 per share (ordinary + extra), about 68% of after-tax profit.

• Accident frequency rate improved to 2.8 from 4.5 year-over-year, and climate targets have been raised to a 75% reduction by 2030.

Financial highlights

• Net sales were SEK 11,077 M, down from SEK 11,561 M year-over-year, reflecting seasonal trends.

• Operating loss for Q1 was SEK -170 M (Q1 2024: SEK -100 M); loss after tax was SEK -136 M (Q1 2024: SEK -93 M).

• Earnings per share after dilution were SEK -1.39 (Q1 2024: SEK -0.95); rolling 12-month EPS was SEK 15.63.

• Cash flow from operating activities was SEK -359 M (Q1 2024: SEK 191 M), mainly due to the absence of property divestments.

• Return on equity was 20% and return on capital employed was 15% on a rolling 12-month basis.

Outlook and guidance

• Positive market outlook for infrastructure, public buildings, and contracting segments; commercial property and residential markets remain slow.

• EPS target of SEK 16 reiterated for the short and medium term, dependent on normalized property transactions.

• The company aims to create value through selective acquisitions and is ready for M&A, targeting scalable operational models.

• 2030 climate target raised to a 75% reduction in Scope 1 and 2 emissions.