NYAB strengthens its position in Swedish grid expansion
Summary
- NYAB has signed a collaboration contract with Svenska kraftnät for a new 400 kV power line in Norrbotten, with the project divided into two phases, starting with planning and design activities.
- The total project value is estimated at 136 MEUR, representing a significant portion of NYAB's projected revenue, supporting growth estimates for 2026–2028.
- Phase 2, the larger construction stage, is expected to begin in Q1 2026, and its potential signing could positively impact NYAB's financial forecasts.
- The agreement highlights NYAB's strategic positioning in energy infrastructure investments driven by the green transition in Northern Sweden.
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NYAB announced that it has signed a collaboration contract with Svenska kraftnät, for the construction of a new 400 kV power line of roughly 100 kilometers between Letsi and Svartbyn in Norrbotten. The project will be executed in two phases. The now-signed agreement covers Phase 1, which includes planning and design activities. Phase 2, the substantially larger construction and commissioning stage, is scheduled to begin in Q1 2026 and conclude in Q4 2028. While Phase 2 will be agreed upon separately, and yet to be signed, we believe the collaborative project model and NYAB’s proven track record with Svenska kraftnät, including the Aurora Line, make it likely that NYAB will receive the full construction order. The total value of the two-phase project is estimated at 136 MEUR (1.5 BNSEK)
The order strongly supports our growth estimates for the coming years
While we expect the value of Phase 1 to be limited (the company did not disclose a figure), Phase 2 would be significant in size. The total project value represents around 22% of our 2026 revenue estimate (614 MEUR), and around 7% on an annualized basis over the three-year construction period. Thus, if fully realized, the order would provide great visibility and a solid foundation for our 2026–2028 growth forecasts (currently 12–7% organic growth), which could prove conservative, particularly for 2027–2028. Overall, we feel this agreement is yet another confirmation of the company's ability to capitalize on the massive investments in energy infrastructure driven by the green transition in Northern Sweden.
The release does not cause immediate changes to our estimates or view of the company, as the value-driving Phase 2 contract remains to be formally awarded. However, we expect a potential signing to occur within the coming quarters, possibly also the Phase 2 of Uppsala Tramway (~447 MEUR, with the partner Azvi), which, if secured, would put upward pressure on our estimates. Our latest company report on NYAB is available here.
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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 Figures06.11.
| 2024 | 25e | 26e | |
|---|---|---|---|
| Revenue | 345.9 | 549.1 | 613.7 |
| growth-% | 23.4 % | 58.7 % | 11.8 % |
| EBIT (adj.) | 26.4 | 33.1 | 40.1 |
| EBIT-% (adj.) | 7.6 % | 6.0 % | 6.5 % |
| EPS (adj.) | 0.03 | 0.03 | 0.04 |
| Dividend | 0.01 | 0.01 | 0.01 |
| Dividend % | 2.3 % | 2.3 % | 2.6 % |
| P/E (adj.) | 15.3 | 15.5 | 12.4 |
| EV/EBITDA | 9.1 | 9.7 | 7.5 |
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