NCC (NCC) Q4 2024 earnings summary

Executive summary

• Net sales reached SEK 20,323M in Q4 and SEK 61,609M for the year, with operating profit at SEK 844M in Q4 and SEK 2,032M for the year, both higher than last year.

• Record earnings achieved in Property Development, Industry, and Building Nordics, with strong cash flow and high financial flexibility.

• EPS target of SEK 16 reached for the second consecutive year, ending at SEK 16.1.

• Board proposed a dividend increase to SEK 9 per share plus an extra dividend of SEK 2 per share.

• Strategic review of the Industry business area initiated for 2025, with options including divestment.

Financial highlights

• Q4 net sales were SEK 20,323M, up from SEK 14,277M in Q4 2023; full-year net sales at SEK 61,609M.

• EBIT for Q4 2024 was SEK 844M, up from SEK 358M in Q4 2023; full-year EBIT at SEK 2,032M.

• Cash flow from operating activities in Q4 2024 was SEK 4,980M, and for the year SEK 4,638M, both record highs.

• Net cash position achieved, with net debt/EBITDA at -0.08x and net cash of SEK -200M.

• Dividend payout proposed at 68% of profit after tax, exceeding the 60% policy.

Outlook and guidance

• Positive market outlook for 2025, with strong demand in infrastructure, energy, water, industry, and public buildings.

• Cautious market for residential and commercial offices; uncertainty remains in the property transaction market.

• Gradual improvement expected in Building Sweden's underlying earnings after risk profile adjustment.

• Strategic review of Industry business area in 2025 may include divestment.

• Continued focus on long-term sustainable profitability and leveraging core competencies.