NCC (NCC) Q2 2025 earnings summary

Executive summary

• Operating profit and margins improved in Q2 2025, supported by strong demand in infrastructure and industry, and a growing share of complex early involvement projects.

• Healthy order backlog and stable orders received, with disciplined project selection and strategic priorities.

• Strategic review of the Industry business area is progressing as planned, with potential divestment considered.

• Strategic partnering agreements signed with SSAB and LKAB for major green industrial projects in the Nordics.

• Net sales declined year-over-year due to a selective approach and no profit recognition in Property Development.

Financial highlights

• Q2 2025 net sales: SEK 14,543M (down from SEK 15,448M in Q2 2024); operating profit: SEK 649M (up from SEK 623M); EPS: 4.8; profit after tax: SEK 467M.

• Cash flow before financing for Q2: SEK -216M (improved from SEK -383M); net debt/EBITDA at 0.53x; net cash/debt: SEK -1,388M.

• Dividend payout for 2024 was 68% of profit after tax, above the 60% target; dividend payments split in two tranches.

• Return on capital employed: 7.1% overall, 14% in Industry, 15% company-wide; return on equity: 20%.

• Book-to-bill ratio at 1.0, indicating balanced order intake and sales.

Outlook and guidance

• Market outlook remains positive with strong demand in infrastructure, industrial, and public buildings; commercial property market remains slow.

• Continued focus on early involvement projects and selective project approach to enhance predictability and reduce risk.

• EPS target of SEK 16 remains, with higher contributions expected from contracting and industry.

• The company is well positioned for future growth, especially in green industrial transformation projects.