NYAB’s Q3/2023: Improved profitability10.11.23
NYAB Plc’s business review 1 July – 30 September 2023 was published today.
July-September in brief
- Revenue amounted to EUR 88.1 (90.3) million, representing a change of -2.5%. In constant currencies, revenue growth was 3.6%.
- EBITDA was EUR 8.0 (6.6) million, amounting to 9.1% (7.3%) of revenue
- Operating profit (EBIT) improved 26.0% and was EUR 6.6 (5.2) million, amounting to 7.5% (5.8%) of revenue
- Free cash flow was EUR -3.8 (2.4) million
- Net debt/EBITDA was 0.30
- Order backlog amounted to EUR 183.3 (267.7) million
- A significant agreement regarding the construction of Aurora Line with an estimated value of EUR 89 million was signed after the end of the quarter
January-September in brief
- Revenue amounted to EUR 192.6 (163.6) million, representing a change of 17.7%. In constant currencies, revenue growth was 24.7%.
- EBITDA was EUR 12.8 (9.6) million, amounting to 6.6% (5.9%) of revenue
- Operating profit (EBIT) improved 31.3% and was EUR 8.6 (6.5) million, amounting to 4.5% (4.0%) of revenue
- Free cash flow was EUR 5.5 (-5.8) million
CEO Johan Larsson’s review
NYAB has continued to perform well. In the third quarter, our revenue amounted to EUR 88 million with an improved EBIT margin of 7.5% after a strong performance in project execution.
From an overall perspective, we are in a period of macroeconomic headwinds resulting in a challenging market situation. Inflation and increasing interest rates have caused delays in customers’ investment decisions mainly in Swedish infrastructure and Finnish energy markets.
Our addressable market continues to offer a high level of business opportunities and tenders. The newly signed contract with Svenska kraftnät also demonstrates NYAB’s capabilities and the underlying growth potential in our markets.
Furthermore, we have been able to mitigate increasing costs with solid project execution and by that preserve healthy margins in our projects. We have also remained selective when taking on new projects to ensure profitability and not to increase our risk level.
In September, it was communicated that the Board of Directors decided to proceed with preparations for re-domiciliation to Sweden and that NYAB aims for a listing on Nasdaq First North Premier Growth Market in Sweden. The cross-border conversion and the listing transfer are expected to be completed during the first half of the year 2024. We aim to provide more information on the process for our shareholders during the fourth quarter, as legal decisions on the re-domiciliation are expected to be made.
To summarize, I am convinced that NYAB will continue to display positive development also in a challenging market environment. In the short term, I expect that we will see continued fluctuation in our order intake and revenue recognition. However, we have a strong financial position, solid project execution, flexibility, and capabilities, and we are operating in a market with continued high underlying demand. This gives us opportunities to continue our journey with profitable growth.
Read the entire release online:
NYAB Plc’s business review 1 July – 30 September 2023: Improved profitability