NYAB: Good execution - ABG

We leave estimates relatively unchanged after Q3...
...but are more confident in 2025e growth (EBITA +31%)
Share is trading at 12-10x EV/EBITA on '25e-'26e


Margin improvements and record order backlog

NYAB continued to deliver on the expected margin improvements in Q3, leading to EBITA growth of 27% y-o-y with the margin increasing to 10% (8%). Sales growth was somewhat lower than expected (6% y-o-y), but still constituted an acceleration from last year when sales growth was flat in Q3. And with strong growth in the order backlog (108% y-o-y), now at EUR 382m, we feel confident in our sales estimate of EUR 366m for 2025e (13% y-o-y). With a positive margin trajectory as well, we predict 31% EBITA growth in 2025e. Moreover, with NYAB's most important customer, Svenska Kraftnät, expecting to triple its annual investments between 2024 and 2029, we see potential for NYAB to maintain strong earnings growth in the coming years as well.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/nyab/Equity-research/2024/11/nyab---good-execution/