NYAB in brief

NYAB is a Nordic company that develops, builds, and maintains a sustainable society within energy, industry, and infrastructure. The company offers comprehensive solutions across the entire project lifecycle, from early-phase planning and design through construction and maintenance, to both public and private sector customers. Operations are organized into two business segments: Civil Engineering (covering Sweden and Finland) and Consulting (with a presence primarily in Norway).

From Luleå roots to Nordic scale

1990
Year of establishment of NYAB's predecessor Nyanläggarna i Luleå

2024
Changed its listing from Finland to Sweden

547 MEUR (346 MEUR)
Reported revenue 2025 (reported revenue 2024)

31 MEUR (25 MEUR)
Reported EBIT 2025 (reported EBIT 2024)

1,026
Headcount at the end of 2025 (492 at the end of 2024)

65% / 35%
Revenue split between private and public sectors

67% / 15% / 14% / 5%
Sweden / Norway / Finland / Other share of revenue in 2025

Company overview

A specialized Nordic contractor across infrastructure, energy, and industry

NYAB is a specialized contractor and provider of projects and services across infrastructure, energy, and industrial construction sectors. The company operates in Sweden, Finland, and Norway, with a small presence in selected international markets.

NYAB was originally founded in 1990 in Luleå, Sweden, and operated on a modest scale for its first two decades. From the 2010s onwards, a combination of strong organic growth and several selective acquisitions transformed the company, with the pivotal step being the 2022 reverse takeover of the Finnish Skarta Group, which materially increased NYAB's size and, together with the acquisition of Dovre in 2025, gave it its current form. Over this journey, revenue grew from approximately 2 MEUR in 2011 to 547 MEUR in 2025.

Two segments spanning the full project lifecycle

Within its focused sectors, NYAB provides engineering, construction, and maintenance services, specializing in demanding and complex projects. The Consulting segment has strengthened NYAB's capabilities in project management and engineering for large-scale projects, adding consulting services, staff leasing, and advisory solutions, and enabling the company to support customers from the early project phases through the full project lifecycle.

NYAB serves both public and private sector clients. Historically, the public sector dominated the revenue mix (60/40 in 2024), but in 2025 the balance shifted to the private sector (35/65), as the consolidation of Dovre's largely private-sector Consulting business, together with a higher share of private energy and industrial work, lifted private-sector revenue. We view this as more of a cyclical swing than a structural retreat from public work, and management has stated that it prefers a mix of roughly 50/50 over time. Recent order intake also points back toward public clients, including the Phase 2 contract for Svenska kraftnät's Letsi–Svartbyn 400 kV line (~142 MEUR) and the Uppsala tramway (~294 MEUR NYAB share) project, which is for a public client (more on these contracts later in the report).

Civil Engineering: the core across infrastructure, energy and industrial

Consulting: advisory and project personnel, anchored in Norway

Renewable energy joint venture under strategic review

In addition to the Civil engineering and Consulting business segments, NYAB co-owns a joint venture, Skarta Energy, with CapMan Nordic Infrastructure ll. Established in 2022, the JV focuses on developing renewable energy projects. In recent years, NYAB's stake has been diluted as the company has opted out of financing rounds, reducing its ownership to 20.9%, with a reported value of ~17 MEUR on the balance sheet. NYAB has stated that its stake in the JV is currently under strategic review.

Sweden leads, with cross-border flexibility across the Nordics

NYAB has a particularly strong presence in northern Sweden and Finland, where the company has deep-rooted origins. This regional concentration enables efficient cross-border collaboration and resource allocation. For instance, if one market slows down, NYAB can re-deploy its workforce across borders, which would be far more difficult in fragmented or disconnected markets. This cross-border collaboration has also direct implications for how the profitability within the country units should be interpreted. For example, if market activity is stronger in Sweden (as it currently is) while Finland is softer, NYAB can deploy its Finnish resources on Swedish projects. In such cases, the Finnish unit continues to absorb the associated personnel costs, but the corresponding revenue is recognized in Sweden. This optimizes overall Group utilization, but it mechanically depresses the reported profitability of the Finnish unit while flattering the Swedish one. Given this dynamic, we believe it is more relevant to assess the profitability of the Civil Engineering segment as a whole, rather than reading too much into the standalone margins of the individual Swedish and Finnish operations over any given period.

Cyclicality is more moderate than in the broader construction market

The construction sector is exposed to the economic cycle, and NYAB's revenue is predominantly project-based, which introduces cyclical elements to the business. Infrastructure and energy construction have nonetheless been considerably less cyclical than the rest of the construction market, and particularly than residential construction, to which NYAB has no exposure. Demand in the company's end markets is driven by electrification and grid capacity, public transport infrastructure, defense and statutory maintenance needs rather than by the property cycle, and a part of it originates from public authorities and utilities whose investment programs are set in multi-year plans and are not closely tied to the prevailing economic situation. Often large infrastructure projects and investments are driven by the public sector, and their demand is not very dependent on the economic situation (e.g. railway projects). As the economy weakens, stimulus measures are often initiated by national and local governments, which may even bring counter-cyclical features to the business.

The public-sector buffer is, however, smaller today than NYAB's history would suggest, following the shift to a 35/65 public/private revenue mix in 2025. The private share is the more cyclical component of the business, as industrial and energy investments depend on customers' own capital allocation decisions and can be postponed or canceled. We would also expect a weaker business cycle or a declining housing market to tighten competition for projects in NYAB's markets as contractors from adjacent segments seek volume elsewhere, as seen during 2023.

Separately, it is worth distinguishing market cyclicality from revenue volatility at the company level. Because of the nature of the project business, revenue swings at NYAB are larger than those of the underlying market, driven by the timing of individual projects, or by the pace at which early-phase engagements convert into execution contracts. As large projects complete, the company must replace them simply to hold revenue at least flat.

Seasonality of the business is high, but has decreased over the years

The acquisition of Dovre's Project Personnel and Norwegian consulting businesses, completed in January 2025, worked in the same direction, as hourly consultancy carries little seasonality. Seasonality has diminished somewhat as a result of these efforts but remains a defining feature of the earnings profile.

Cash flow follows its own rhythm. Working capital builds through the construction season and peaks over the summer, then unwinds toward the turn of the year as projects complete and final payments are invoiced, making Q4 and Q1 the strongest quarters for cash generation.

Business model

A capital-light model built on the value-added project phases

NYAB's operations are based on project deliveries, and in its construction business the most common customer contract is the all-in contract, under which NYAB delivers the project to the customer as one entirety (accounted for as a single performance obligation). The all-in label describes the scope of the delivery rather than how it is priced, however, and such contracts can be priced either at a fixed price or under collaborative, cost-based terms. On the fixed-price part of the portfolio, the company estimates the time and resources required, including materials and subcontracting, before submitting a tender, which makes cost-efficiency and the accuracy of budget calculations central to the model. Protection against cost increases is largely claims-based rather than automatic, where additional work and modifications agreed during a project are folded into the transaction price, and variable consideration includes fines and additional fees. We understand that some contracts also contain certain indexation clauses (e.g. most work with Trafikverket has indexation for fuel), but these don’t fully protect against, for example, possible increases in material prices (cf. cost inflation in 2022-2023). Compensation is therefore largely negotiated after the fact, which is a weaker safeguard than indexation. To our understanding, there are also structural differences across markets, where Swedish project owners often bear greater responsibility for contractual terms, allowing contractors more extensive additional billing for cost overruns than is customary in Finland.

Alongside fixed-price work, NYAB has increasingly emphasized collaborative (partnering) models, where the company and the client jointly plan and execute the project under a shared-risk structure with early contractor involvement and greater cost transparency. Taken together with hourly consultancy in the Consulting segment and framework agreements on a running-account basis, management puts contracts carrying no or very little price risk at close to 70% of total Group volume, leaving around 30% genuinely exposed to price risk. In other words, fixed-price work is a minority of Group volume, even though the all-in contract remains the most common contract structure within construction. We estimate roughly one-third of revenue comes from collaborative setups specifically, though the company does not disclose the split. On the exposed portion that actually carries price risk, NYAB subcontracts on fixed prices as well, so the residual risk is less about its own cost estimation than about a subcontractor failing and having to be replaced. As such, this is narrower than the contract form alone suggests, and part of why project write-downs have been absent. The trade-off is that collaborative models typically compress both the downside and the upside of individual project margins (vs. pure fixed-price contracts), while playing to NYAB's strengths in the early, value-added phases (planning, design and project management), and deepening customer relationships.

The operational model behind this is capital-light. NYAB acts as main contractor and concentrates on the technical and competence-intensive parts of a project, with around 85% of employees being white-collar engineers, site managers and project managers. Less than 10% of total production is carried out by its own personnel. Against roughly 1,000 own employees, NYAB works with approximately 4,000 suppliers, sub-consultants and subcontractors, and pushes cost risk down to them at the contract stage where possible. That makes supplier relationships a genuine dependency, though NYAB, to our understanding, appears to be regarded as an attractive partner in the industry. The upside with this operational model is minimal ownership of heavy machinery and physical infrastructure, low capital expenditure, and a cost base that flexes with volumes.

It also means the binding constraint on growth is recruiting and integrating white-collar competence rather than financing capacity, which in our view is the more relevant thing to monitor. That constraint also frames a long-term risk we see to the model. Today, NYAB's margins rest on its emphasis on the higher-value phases of a project (engineering, project development and the client relationship), rather than in physical execution. As the model becomes better understood, we would expect competitors to move in the same direction, intensifying competition both in tenders within NYAB's prioritized niches and for the white-collar competence the model depends on. Over a longer horizon, we also see the risk that two structural forces could shift value the other way. Advances in AI may compress the premium on engineering, design and project-management work, while de-globalization and demographics point toward scarcer execution capacity, which would strengthen subcontractor pricing power. Either development would have a "flattening-effect" of the value curve, leading to margin compression within NYAB's current area of focus.

Order book and pipeline underpin revenue visibility

Beyond the order book and framework agreements, NYAB's visibility is further supported by a pipeline of phase-1 (early-phase collaboration) projects yet to convert into firm execution contracts, with a potential execution value of ~600 MEUR at the end of Q2'26. A large part of this has since converted. Shortly after the quarter, NYAB secured the Phase 2 construction contract for the Uppsala tramway, the largest single contract in its history at ~588 MEUR (via a 50%-owned joint venture, NYAB's share corresponds to ~294 MEUR ). This was followed in late Q3'26 by the Phase 2 agreement with Svenska kraftnät for the Letsi-Svartbyn 400 kV overhead line (~142 MEUR), which will enter the Civil Engineering order book in Q3'26 and, unlike the equity-method-accounted Uppsala JV, will flow through revenue. In our view, these back-to-back conversions strongly validate the Phase-1-to-Phase-2 strategy that has become the company's focal point in recent years. The remaining near-term optionality consists mainly of two SSAB contracts, which management expects to convert during H2'26, and NYAB's first data center project, Compute Nordic's site in Mikkeli, Finland, where construction has already begun, and orders are called off progressively (management estimates its potential total value at ~100 MEUR). While conversion is not guaranteed, NYAB's track record (discussed below) lends support to the pipeline's indicative value and highlights the benefit of its growing presence in the early, value-added phases of large projects.

Selective tendering as a risk-management tool

NYAB's asset-light business model enables a highly selective approach when bidding for tenders and choosing projects. We believe less than 10% of the projects NYAB evaluates are ultimately pursued. The selection process is influenced by several key factors, including whether the company has the right capabilities and is the best-suited organization for the project, the seasonality of the work, the project's size, and whether it involves a new or existing client.

In addition to these considerations, NYAB carefully assesses the overall strategic value of a project. Factors such as the complexity of the project, potential for scope expansion, follow-up business opportunities, and the ability to leverage experience all play a role in determining whether a project is selected. End-market fit is part of this filter too, with NYAB prioritizing tenders within its higher-margin niches (waterworks, rail, high-voltage transmission, and industrial works), as discussed in previous sections. This disciplined approach allows NYAB to focus on high-value projects where it can deliver strong execution, minimize competition, and secure higher-margin contracts.

An increasingly important share of the pipeline, however, is not won through conventional tendering at all. Public clients in particular are running a growing share of their large projects as alliance and partnering models, and NYAB has built a strong position in early contractor involvement, taking on a phase-one planning and design assignment and then continuing into phase two as the executing contractor. Competition in these processes takes place at the planning stage, where selection turns on engineering capability and track record rather than price, and NYAB subsequently enters the execution phase having designed the project from the inside. The company states that it has never won a phase one or Early Works Agreement without going on to receive the execution order.

Management frames this selectivity and discipline primarily as risk management rather than margin optimization. By choosing carefully where to compete, NYAB limits its exposure to the project types where cost overruns and disputes typically arise, which, in our view, is one important factor why the company has avoided significant loss-making contracts. The trade-off is that selectivity means deliberately foregoing revenue, and combining a rejection rate of some 90% (Inderes' estimate) with growth hovering well above its 10% target in recent years only works for as long as demand comfortably exceeds the capacity NYAB is willing to staff. As such, should demand soften, we believe something has to give. Either the filter loosens, which would eventually show up in margins, or growth slows. We think the latter is the more likely outcome, even though we acknowledge that NYAB is still a small player in the space, which means it needs only a sliver of a large market to sustain its growth ambitions, and could therefore keep finding projects that meet its criteria for some time even as overall activity weakens.

A largely variable cost base that flexes with volumes

The acquisition of Dovre's consulting businesses at the start of 2025 did not shift this balance toward fixed costs, and the variable share of revenue remained high. The reason is that Dovre's project-personnel operations are themselves highly flexible, where a substantial part of the consulting workforce is engaged as temporary or self-employed consultants and subcontractors (the company reports 181 self-employed consultants/subcontractors within Consulting, in addition to its own staff), whose costs are recognized within materials and services rather than as employee benefit expenses. As a result, the expanded business carried much of its added staffing cost through the variable cost line, keeping the overall cost base flexible and supportive of downside resilience in weaker markets.

The same dynamic explains the development in own personnel costs. Although NYAB more than doubled its total headcount during 2025 (from 492 at end-2024 to 1,026 at end-2025), employee benefit expenses grew broadly in line with revenue and stood at around 11% of revenue, in line with the historical 10–12% range and roughly unchanged from 2024. With a large share of the enlarged workforce sitting in the variable cost line rather than on the fixed payroll, personnel intensity remained stable despite the step-up in scale.

Other operating costs, mainly administrative and IT-related expenses, accounted for around 4% of revenue, while, given the limited capital requirements of the business, depreciation and amortization remained minor at around 1% of revenue.

Low capital intensity that largely funds itself

Due to the reverse takeover in 2022 and the acquisition of Dovre's businesses in 2025, there are no multi-year time series to evaluate capital commitment in NYAB's current form, which makes precise forecasting somewhat more challenging. The direction, however, is clear. Net working capital has fallen from low double digits (of revenue) in 2023 to below 3% today, averaging ~4% on a quarterly basis during 2025.

While revenue growth typically absorbs working capital, NYAB's model has kept intensity low even during rapid expansion. Despite 58% revenue growth in 2025, changes in working capital were a net source of cash (+12 MEUR), as payables and contract liabilities scaled with subcontracting and inventory unwound. More than a doubling of revenue since 2022 has therefore required no external funding for working capital. We still expect some seasonal swings within the year and a gradual rise in absolute NWC as the business grows, but, in our view, working capital is unlikely to constrain expansion. The Consulting operations consolidated through Dovre are themselves asset-light (people- and time-based, with minimal inventory or fixed assets), so their inclusion has not materially altered the Group's low operating capital intensity, but has instead helped to lower the seasonality in cash flows.

Investment needs are low, as the business requires few fixed assets, where tangible assets amounted to ~3% of revenue in 2025 (FY22–24: 4–6%), or ~3-4% including right-of-use assets, with capex mainly directed at necessary equipment (vans and, to a lesser extent, excavators).

The asset-light model translates into strong underlying cash generation, with free cash flow amounting to 41 MEUR in 2025 (excl. M&A), corresponding to a cash conversion of ~110%, and has averaged around 100% between 2023-2025.

On the flip side, low capital intensity might in theory imply lower barriers to entry compared to more capital-intensive construction companies. In practice, however, capital has never been the barrier in construction, where even the asset-heavy players operate in markets that are relatively easy to enter, since a plot portfolio is a balance sheet commitment rather than a moat. What limits entry in NYAB's segments is prequalification, references, guarantee capacity, and customer relationships, none of which can be bought with an equipment fleet.

A moderate risk profile versus the broader construction sector

In our view, the risk profile of NYAB's business is moderate compared with the broader construction sector. The risk level is lowered by its focus on less cyclical, at times counter-cyclical infrastructure and energy end markets (with no residential exposure), a flexible and largely variable cost base, low investment needs, and a pricing model that is less risky than its fixed-price contracts suggest. Management estimates that contracts carrying no price risk (partnering, hourly consultancy and running-account frameworks) account for close to 70% of volume, and on the rest NYAB largely subcontracts on fixed prices too. Together with highly selective tendering, this largely explains why project write-downs and loss-making contracts have been effectively absent.

The risk level is increased by the general risk factors of project business, including dependence on individual projects and lumpy revenue, and by a smaller public-sector buffer following the 2025 shift toward private customers (35% public share of revenue), although we view this as a cyclical rather than a structural change. It is further raised by a relatively high dependency on two public clients (Svenska Kraftnät and Trafikverket each accounted for more than 10% of 2025 revenue, though only a fraction of their total spending and spread across multiple projects and segments), the sector's macro sensitivity and M&A integration risk. On balance, we see the main residual risks as lying in project-level execution, revenue lumpiness, and acquisition integration rather than in broad cyclical demand.

Owner-led management with deep industry roots

NYAB has a strong entrepreneurial tradition, with the majority of the management having a long history in the construction industry. The executive management team has seen considerable renewal over the past year as NYAB has scaled and integrated the Dovre acquisition. During 2025–2026, Andreas Öhgren (previously with the Peab Group) was appointed Country Manager Sweden and Petri Kotkansalo Country Manager Finland, while Magnus Granljung, who previously headed the Swedish operations, left the management team. On the Consulting side, Harald Nikolaisen took over as Country Manager Norway for Dovre, and Daniel Wallström was announced as Head of Consulting. In May 2026, NYAB further announced that CFO Klas Rewelj will leave on 1 June 2026, with Peter Franks appointed interim CFO while the recruitment of a permanent successor is ongoing.

In 2025, former board member Anders Berg, who has a long track record as CEO of Lindab International and Plannja, along with senior leadership roles at multiple industrial companies, joined NYAB's management as Head of Business Development.

NYAB's Board of Directors also brings extensive experience from the construction industry and leadership positions in major corporations. Following the 2026 Annual General Meeting, the Board comprises seven members and is chaired by Jan Öhman (former CFO of Industrivärden). Other members include Lars-Eric Aaro (former CEO of the LKAB Group), Johan K. Nilsson (former General Counsel of the Peab Group), CEO Johan Larsson, Barbro Frisch, Kim Wiio, and Ingrid Stenmark, who was newly elected in 2026. We see this expertise as a key enabler of NYAB's growth strategy.