NYAB signs early works agreement for SSAB logistics facility
Summary
- NYAB has signed an Early Works Agreement with SSAB for preparatory works on a steel coil logistics facility in Luleå, positioning itself favorably for future project phases.
- The agreement covers early project phases such as design and engineering, with ongoing negotiations for further commitments in subsequent phases.
- NYAB's involvement aligns with its expertise in industrial infrastructure and strengthens its market position in Northern Sweden, particularly in SSAB's Luleå transformation projects.
- Despite the positive outlook, the lack of financial details means no changes to current estimates are made at this stage.
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NYAB has entered into an Early Works Agreement (EWA) with SSAB regarding preparatory works for a steel coil logistics facility in Luleå. While the initial financial value of this early phase is likely relatively small, we view the agreement positively as it positions NYAB favorably for the subsequent, more valuable execution phases. We believe the project aligns perfectly with NYAB's expertise in industrial infrastructure and its strong market position in Northern Sweden. However, given the lack of financial details in the press release, the news does not trigger any estimate changes at this stage.
Well positioned to secure larger construction phases
The EWA covers early project phases, including design, engineering, project management, and preparatory works for the logistics facility and associated infrastructure. In parallel, negotiations are ongoing for additional commitments during the project's subsequent development and execution phases. This EWA structure follows a familiar pattern from NYAB's recent strategic wins, such as the pump station project with SSAB announced in April. We believe securing early-stage involvement is a key part of NYAB's strategy that allows the company to influence project execution through its engineering capabilities and provides a strong advantage when competing for larger construction phases later.
Expanding footprint in SSAB's Luleå transformation
The logistics facility is a vital part of the industrial infrastructure required for SSAB's ongoing transformation of steel production in Luleå. NYAB and SSAB share a longstanding relationship, and NYAB is already engaged in several projects in the Luleå Industrial Park area, including the aforementioned pump station project. With SSAB targeting an operational start-up by the end of 2029, the timeline suggests that the main execution phases for these infrastructure projects will need to begin in the near to medium term to align with the overall schedule. In our view, NYAB's early involvement and established local presence position it very favorably to capture a significant share of the infrastructure work as SSAB's large investment progresses. However, these prospects remain speculative at this early stage, and we await further details before revisiting our estimates.
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NYAB provides services within engineering, construction and maintenance with a focus on sustainable infrastructure and renewable energy. The offering includes roads, railways, bridges, airports, wind and solar power and power grids. NYAB also provides various types of facilities for industrial customers. NYAB operates in Sweden and Finland in both the private and public sectors.
Read more on company pageKey Estimate Figures08.05.
| 2025 | 26e | 27e | |
|---|---|---|---|
| Revenue | 547.0 | 600.0 | 654.8 |
| growth-% | 58.1 % | 9.7 % | 9.1 % |
| EBIT (adj.) | 34.3 | 39.7 | 45.3 |
| EBIT-% (adj.) | 6.3 % | 6.6 % | 6.9 % |
| EPS (adj.) | 0.03 | 0.04 | 0.05 |
| Dividend | 0.01 | 0.01 | 0.02 |
| Dividend % | 1.9 % | 2.5 % | 2.8 % |
| P/E (adj.) | 15.3 | 13.3 | 11.4 |
| EV/EBITDA | 9.4 | 7.8 | 6.6 |
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