NYAB approves revised long-term financial targets and a new strategic plan for 2024-2026 (inside information)
22.12.23NYAB Plc
COMPANY ANNOUNCEMENT
22 December 2023 at 09:02
NYAB approves revised long-term financial targets and a new strategic plan for 2024–2026 (inside information)
NYAB’s Board of Directors has approved a new strategic plan for 2024–2026. NYAB’s vision is to become the preferred partner in building a better future for generations to come, as well as to be the first-choice workplace for dedicated professionals.
In connection with the strategic plan, NYAB has revised its long-term financial targets. The new long-term financial targets are:
- annual revenue growth exceeding 10%
- EBIT margin exceeding 7.5%
- net debt to EBITDA of less than 1.5
- dividend exceeding 35% of net profit
According to previous financial targets that were updated in June 2023, NYAB pursued an organic growth exceeding 15%, EBIT margin exceeding 9%, equity ratio exceeding 50%, and a dividend exceeding 30% of net profit. Decision to update long-term financial targets reflects a thorough strategy work that has been conducted during the autumn. NYAB continues to strive for achieving industry-leading margins and outpacing market growth without compromising meticulous focus on balancing the project risks. NYAB also targets to maintain its strong balance sheet that is seen as important enabler for achieving its targets relating to sustainable profitable growth and future value creation for shareholders.
NYAB’s strategic plan for 2024–2026 is based on four pillars: people first, responsibility to customers and society, operational excellence, and profitable growth.
People first
NYAB highlights safety as the highest priority and targets to become the most preferred workplace in the industry. NYAB’s success is a result of skilled and motivated employees, as well as a high-performance culture that focuses on utilizing each individual’s and team’s strengths and offering opportunities for development and growth. During the strategy period, NYAB will, among others, focus on improving collaboration and building joint success between business units.
Responsibility to customers and society
NYAB has set a company purpose of enabling the progress of society for future generations and its mission is to deliver high-quality, cost-effective solutions in demanding infrastructure, renewable energy, and industrial construction. Through its services for public and private sector customers, NYAB is enabling the green transition in the Nordics. During the strategy period, NYAB sets an extended focus on customer satisfaction and invests in sustainability to further strengthen its offering and contribution to society, as well as to align with EU’s climate targets and upcoming CSRD requirements.
Operational excellence
NYAB’s exceptional track-record of profitable growth is made possible by key enablers within its operations that support high efficiency and competitive advantages and provide opportunities to leverage the business model. NYAB aims to further strengthen its key enablers by focusing on continuous improvement in its operations. Initiatives to further improve operational excellence relate to enhancing cross-border resource sharing and project execution, focusing on holistic cost awareness in all parts of the organization and seeking incremental improvements in operations by utilizing smart digital solutions and collaboration. NYAB has simultaneously decided to initiate a strategic review of its minority shareholdings, such as the associated company Skarta Energy.
Profitable growth
NYAB’s business model is based on a lucrative position in the value chain of infrastructure, energy and industrial projects and an optimized organizational structure for successful project execution. NYAB aims at leveraging its business model by, among others, capturing organic growth opportunities relating to green transition investments in Sweden and Finland, as well as opportunities relating to large-scale infrastructure projects in Sweden and energy projects in Finland. NYAB also aims at increasing the share of collaborative and long-term maintenance contracts in Sweden and Finland, as well as supplementing its growth with strategic acquisitions that provide synergies and/or key competencies for the prioritized business areas.
Targeted re-domiciliation of the parent company and subsequent listing transfer to First North Premier in Sweden are expected to support the strategic plan and achieving the long-term targets. NYAB has proceeded well with preparations regarding the re-domiciliation plan and will provide more information on the progress of these initiatives in due course.
Contacts
- Aku Väliaho, CFO, NYAB Oyj, +358 (0)40 559 2772, aku.valiaho@nyabgroup.com
- Johan Larsson, CEO, NYAB Oyj, +46 (0)70 182 5070, johan.larsson@nyabab.se
About NYAB Oyj
NYAB is a builder of a clean future with decades of experience in complex and demanding projects. We are enabling green transition in the Nordics by providing engineering, construction, and maintenance services to public and private sector clients regarding renewable energy and sustainable infrastructure. NYAB is headquartered in Oulu and it has more than 400 employees at different locations in Finland and Sweden.
NYAB Plc's Certified Adviser is Augment Partners AB, info@augment.se, phone +46 8 604 22 55.
