NYAB has signed an agreement with Svenska kraftnät for Phase 2 of the Letsi-Svartbyn collaboration project, valued at approximately 1.6 BSEK (~142 MEUR). The agreement covers the construction and commissioning of a new 400 kV overhead power line in Norrbotten. In our view, securing the execution phase of this major energy infrastructure project is a strong testament to NYAB's strategic positioning and its ability to convert early-stage planning into substantial execution contracts. We will revisit our estimates accordingly in the near future.

Converting early-stage involvement into a major execution contract

The Letsi-Svartbyn project involves an approximately 100-kilometre 400 kV overhead power line between Jokkmokk and Boden, which will contribute to increased transmission capacity in northern Sweden. NYAB previously signed the agreement for Phase 1 of the project, covering planning and engineering, in November 2025. In our view, the transition into Phase 2, which involves the actual construction and commissioning, aligns well with NYAB's strategy of focusing on value-accretive project stages and leveraging early involvement to secure the execution phase. The work will begin immediately and is scheduled for completion in the second quarter of 2029.

Significant boost to long-term visibility

The contract value of ~1.6 BSEK translates to approximately 142 MEUR. Assuming revenues are distributed evenly over the contract period (~52 MEUR annually), the order represents only about 8% of our FY27 revenue estimate of 683 MEUR. The order will be included in the Civil Engineering business segment's order backlog in the third quarter of 2026. At the end of Q2'26, the Civil Engineering order backlog stood at a record 502 MEUR, and this new addition further strengthens the company's long-term visibility. The project highlights the ongoing strong demand for energy infrastructure investments driven by the green transition and electrification in Sweden. As the execution of the project ramps up over the 2026-2029 period, we believe it de-risks NYAB's growth trajectory and our expectations of continued solid performance in the Swedish operations.