Ncc Group Plc · LSE:NCC
Ncc — Q1 2025 Earnings Presentation
37 slides from Ncc's earnings presentation, Apr 29, 2025
Slide 1: Q1 2025
Q1 2025 April 29, 2025 Tomas Carlsson | CEO Susanne Lithander | CFO 1 NCC | Q1 2025 Scandi c Aarhus, Denm ark
Slide 2: Key figures Q1 2025
Key figures Q1 2025 Orders received Net sales SEK 14.0 bn (13.4) SEK 11.1 bn (11.6) Order backlog Operating profit SEK 52.4 bn (56.3) SEK -170 M (-100) 2 NCC | Q1 2025
Slide 3: First quarter
First quarter Stable performance, seasonally slow, good overall demand Sales and EBIT High orders received Clear seasonality in stable. in Building Sweden Industry. Strong Good orders demand received Sønderpark, Refurbishment, Denm ark Infrastructure solid Continued good No profit recognitions with
Slide 4: Good orders received
Good orders received Book-to-bill of 1.0 (R12) 16,288 16,159 14,691 14,664 14,002 13,353 13,264 13,449 9,681 1.0 Book to bill 1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2024 2025 4 NCC | Q1 2025
Slide 5: Solid order backlog
Solid order backlog Negative impact Q1 2025 vs. Q1 2024 from strengthened SEK SEK M 58,910 59,359 56,270 54,956 54,594 53,422 53,498 52,431 50,723 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2024 2025 5 NCC | Q1 2025
Slide 6: Large orders received in the quarter
New school and sports hall Expansion of district heating in Sweden network in Denmark SEK 600 M SEK 600 M Njupkärr School, T yresö, Sweden Reinforcement of European route E10 in Sweden SEK 600 M European route E10 between Avvakko and Lappeasuando in Gällivare, Sweden Heating network, Copenhagen, Den
Slide 7: Net sales
Net sales – Seasonally low, in line with 2024 SEK M 20,323 Property 15,592 15,448 Development 14,854 14,022 14,277 12,464 11,561 11,007 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2024 2025 7 NCC | Q1 2025
Slide 8: EBIT
EBIT – Seasonally low SEK M 844 665 614 * 623 544 510 503 474 358 152 -100 -170 -170 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 2024 2025 *Exc ludi ng dives tm ent of Bergnäset (SE K 175 M) 8 NCC | Q1 2025
Slide 9: EBIT Contracting and Industry
EBIT Contracting and Industry - Follows seasonal pattern SEK M 684 639 574 589 590 * 500 405 341 237 -115 -116 -138 -152 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 2024 2025 *Exc ludi ng dives tm ent of Bergnäset (SE K 175 M) 9 NCC | Q1 2025
Slide 10: Financial targets
Financial targets Earnings per share Net debt Dividend policy Target Target Target ≥16.00 SEK <2.5 x EBITDA ≈ 60% of profit after tax Q1 2025, R12 Q1 2025, R12 Actual 2024 15.63 SEK 0.14 x EBITDA Corporate net debt of SEK -377 M 9+2 SEK 68% of profit after tax 10 NCC | Q1 2025
Slide 11: NCC's sustainability targets
NCC’s sustainability targets Climate and energy Health and safety Revised target: 75% reduction in CO 2e in own operations by 2030 (base year 2015) Reduce all types of accidents but with an increased focus on eliminating serious incidents and fatal accidents 50% 11 reduction in CO 2e across the valu
Slide 12: Target 2030: 75% reduced emissions in own operations
Target 2030: 75% reduced NCC achieved the emissions in own operations Scope 1+2 targets for 2030 already in 2024 (Scope 1 & 2) Hence, we have 6 increased the target to 5.2 -75% 5 4.5 4.1 4 3.6 3.2 3.0 3 2.8 Former 2.5 2.3 target Reduction by 2030 compared to 1.9 ≤2,08 2015, measured as tons of CO 2e
Slide 13: Target 2030: 50% reduced emissions across the value chain
Target 2030: 50% reduced emissions across the value chain (Scope 3) Ready-mix concrete Asphalt Steel reinforcement Transportation and machine services Outcome Q2024 Outcome 2024 Outcome 2024 Outcome 2024 (from 2015) (from 2015) (from 2015) (from 2023) -22% -23% -57% +33% Kilograms of CO 2e per purch
Slide 14: Health and Safety targets – LTIF4
Health and Safety targets – LTIF4* All time low accident frequency rate 7 6 5.8 5 4.1 4.1 4.0 4 3.3 3.6 3.7 2.8 3 Target 2026 2 ≤2,0 1 0 2018 2019 2020 2021 2022 2023 2024 Q1 2025 2026 *LTIF4 – Lost Time Injury Frequency – work related accidents with four days or more absence from ordinary duties pe
Slide 15: Continued positive market outlook
Continued positive market outlook Good market Particularly Solid demand for Commercial demand and strong demand asphalt and stone property and positive outlook for infrastructure residential market for key contracting and public remains slow segments buildings 15 NCC | Q1 2025
Slide 16: Susanne Lithander, CFO
Susanne Lithander CFO NCC | Q1 2025
Slide 17: NCC's Contracting units
NCC’s Contracting NCC units Infrastructure Business update Q1 • Solid Infrastructure with good demand NCC situation Building Nordics • Continued good profit development in Building Nordics • Strong orders received in Building Sweden NCC • In Green Industry Transformation a Building Sweden new long-t
Slide 18: Order backlog and sales
Order backlog and sales Q1 2025. Book to bill in Q1 was 1.3 SEK M 18,273 17,262 15,672 14,427 13,924 13,778 Infrastructure Building Nordics Building Sweden Order backlog Net sales R12 18 NCC | Q1 2025
Slide 19: Sales and earnings on par with last year, following seasonal pattern
Sales and earnings on par with last year, following seasonal pattern Infrastructure Building Nordics Building Sweden SEK M % SEK M % SEK M % 6,000 4 6,000 6 6,000 4 3 5,000 5,000 5 5,000 3 2 4,000 4,000 4 4,000 1 3,000 2 3,000 3 3,000 0 -1 2,000 2,000 2 2,000 1 -2 1,000 1 1,000 1,000 -3 0 0 0 -4 0 0
Slide 20: NCC Industry
NCC Industry Business update Q1 • Seasonally slow quarter • Good orders received • Increased funding for road maintenance investments drive demand for asphalt 20 NCC | Q1 2025
Slide 21: Normal first quarter volumes
Normal first quarter volumes Asphalt sold Stone materials sold Thousands of tons Thousands of tons 1,748 1,792 7,004 7,143 1,716 6,647 6,642 6,431 1,531 6,130 5,829 1,348 5,426 1,222 4,867 188 173 205 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2023 2024 2025 2023 2024 2025 21 NCC | Q1 202
Slide 22: Industry: Continued positive development in seasonally slow quarter
Industry: Continued positive development in seasonally slow quarter SEK M % SEK M % Internal 368 66% target 16 338 281 281 14.2 14 4 191 12 Internal target 4,162 99 2 3,801 10 0 8.0 8 6 -2 4 -4 -261 2 -313 -312 -6 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 31/3 2024 31/3 2025 2023 2024 2025 EBIT EBIT margin R12 O
Slide 23: NCC Property Development
NCC Property Development Portfolio update Q1 • No projects profit recognized • One new project started • 9 projects in the portfolio • High letting in the quarter 23 NCC | Q1 2025
Slide 24: Reduced capital employed
Reduced capital employed EBIT SEK M SEK M % Internal 9,625 12 12% target 564 7,825 10% 8% 7.1% 6% 256 4% 87 2% 42 30 37 10 0.9% 0% 31/3 31/3 -37 -18 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Operating Capital Employed ROCE R12 2023 2024 2025 24 NCC | Q1 2025
Slide 25: Letting sqm over time
Letting sqm over time Lettable space incl SPP, sqm 250,000 100% Previously let area, sqm 200,000 79% 80% Remaining unlet area, sqm 150,000 60% 60% Sold, no letting Let during quarter, sqm 100,000 40% Completion ratio Letting ratio 50,000 20% (economic occupancy rate) Let during quarter (% of availab
Slide 26: NCC Property Development
NCC Property Development Q1: 6 completed unsold, 3 ongoing sold Cleantech Garden Våghuset, Yrket 4 Brick Studios & Mimo Park Central Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2025 2026 2027 2028 Expected time of profit recognition for sold projects Ongoing projects – sold Completed unsold project
Slide 27: Other & eliminations
Other & eliminations Q1 R12, Apr-Mar FY Jan-Dec SEK M 2025 2024 2025 2024 NCC Group common functions, smaller subsidiaries -101 -106 -473 -477 and business area NCC Green Industry Transformation Elimination of internal gains -7 17 55 78 Pensions and other adj & elim 66 53 149 137 EBIT, total -42 -35
Slide 28: Earnings
Earnings Q1 R12, Apr-Mar Jan-Dec SEK M 2025 2024 2024/2025 2024 Earnings in segments (all BAs) -128 -65 2,231 2,294 Other & Eliminations -42 -35 -269 -262 EBIT -170 -100 1,962 2,032 Financial net -5 -17 -157 -169 EBT -175 -117 1,805 1,863 Tax 39 24 -277 -292 Profit for the period -136 -93 1,528 1,57
Slide 29: Cash flow
Cash flow Lower y/y quarterly number R12, due to property sales in Q1 2024 Apr- Jan- Q1 Mar Dec SEK M 2024/ SEK M 2024 2024 2024 2025 5,000 Operating activities 4,000 From operating activities before changes in -10 186 2,871 3,067 3,000 working capital 2,000 From property projects -183 135 1,609 1,9
Slide 30: Low corporate net debt provides financial flexibility
Low corporate net debt provides financial flexibility SEK M Net debt* / EBITDA Target -377 <2.5 Mar 31, 2025 R12 -2471 0.14 Q1 2024 Q1 2025 * Corporate net debt excluding pension liabilities and leasing liabilities 30 NCC | Q1 2025
Slide 31: Tomas Carlsson, CEO
Tomas Carlsson CEO NCC | Q1 2025
Slide 32: Capital allocation: Selective M&A on the agenda
Capital allocation: Selective M&A on the agenda M&A readiness: Financially strong Scalable operational model Robust organization Targeting companies in contracting Above a certain size, used to work in a larger structure with common working methods 32 NCC | Q1 2025
Slide 33: Annual General Meeting
Annual General Meeting Date May 7, 2025 Location Hotel At Six in Stockholm Date May 7, 2025 Location 33 NCC | Q1 2025 Hotel At Six in Stockholm
Slide 34: In summary
In summary A solid quarter Good orders Strong demand in Operational & Positive with seasonal received contracting and financial development in patterns industry readiness for M&A health & safety 34 NCC | Q1 2025
Slide 35: Slide 35
Slide 36: Contact information
Contact information Tomas Carlsson Susanne Lithander CEO CFO susanne.lithander@ncc.se tomas.carlsson@ncc.se Tel +46 730 37 08 74 Andreas Koch Head of Communications & IR ncc.com/Investor-relations andreas.koch@ncc.se Tel +46 705 09 77 61 For definitions and details, 36 please see the quarterly repor
Slide 37: Slide 37