NYAB: Impressive execution - ABG

2024 saw 48% EBITA growth and 86% cash conversion
We raise '25e-'26e EBITA by 19-15%, mainly on Dovre acquisition
Positioned for further growth in 2025; trades at 9-7x EBITA '25e-'26e


Impressive execution

NYAB delivered better sales and margins in Q4 (sales and EBIT 15% and 31% above FactSet cons). Growth continued to be high (sales +33% and EBITA/EBIT +48%/51% y-o-y), driven by strong execution on its solid order book. Our impression is that one of the main concerns for the company has been if it can continue to deliver double the margins of construction peers (EBITA margin was 10% in Q4 and 8% in 2024, vs. peers at 3-4%) even after taking on larger contracts. We think Q4 shows that it can. In addition to the strong growth, the company managed its working capital efficiently, resulting in a cash conversion (EBITA to lease adj. FCF) of 86% in 2024, which is impressive. The average cash conversion in 2022-2024 was 78%. Moreover, the EBITA CAGR in 2018-2024 has been 21% compared to 2% for construction peers and 20% for infra service peers.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/nyab/Equity-research/2025/3/nyab---impressive-execution/