* Signs Phase 2 with Svenska kraftnät worth SEK 1.6bn
* We expect consensus to raise 2027e-2028e EBIT by 5-10%
* Share has done well, but still trades at 9x EBIT 2027e
Largest power line project to date, with limited price risk
NYAB announced this morning that it has signed an agreement with Svenska kraftnät to build a new 400 kV power line in northern Sweden between Letsi and Svartbyn. The order value is SEK 1.6bn (EUR 142m). The contract is structured as a partnering agreement (Sv: samverkan), meaning that NYAB assumes relatively little price risk, as it is largely based on a cost-plus model. Construction will begin immediately, and we expect consensus EBIT estimates for 2027e-2028e to increase by 5-10% as a result of the order. The project will be included in NYAB’s order book in Q3’26, which should lift the order book substantially above the record-high level reported in Q2.
Positive for growth, but also strengthens credibility
This is NYAB’s second major power line project with Svenska kraftnät, following the Aurora Line, a ~SEK 1.0bn project completed in Q4’25. NYAB began working on Phase 1 (planning) of Letsi–Svartbyn shortly after completing the Aurora Line. Although the company indicated that it also expected to secure the larger Phase 2 execution contract, this had not been confirmed until today. The order therefore not only supports growth and positive estimate revisions but also strengthens management’s credibility, in our view.
The order book de-risks strong earnings growth f12m
Before this order, we already expected >20% earnings growth f12m. Adding this new order, we could now see ~25-30% growth f12m. The share has done well, but still trades at 9x EBIT on 2027e. Longer term, we believe that NYAB remains well-positioned towards infrastructure niches with strong demand, and its capital-light operating model facilitates a combination of high growth and high cash generation.