President & CEO, NCC
Nedgång trots extrautdelning och renodling i NCC
Bygg och anläggningsbolaget NCC slog förväntningarna på både omsättning och orderingång. Bolaget höjer dessutom utdelningen och aviserar en möjlig försäljning av affärsområdet Industry. Trots det fick aktien ett svagt mottagande på Stockholmsbörsen efter måndagens rapport. Bolagets vd Tomas Carlsson ger sin syn på fjolår och framtid i ett samtal med EFN:s Gabriel Mellqvist.
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About Tomas Carlsson
Tomas Carlsson, President and CEO of NCC, discussed the company's second quarter 2026 results in an earnings call and an interview. He described the quarter as a good performance for the group, noting high order intake of 14.1 billion and record Q2 earnings in the Industry business area for stone and asphalt. Carlsson stated that the contracting business showed improved margins but lower sales, which he attributed to low order intake in late 2024 and early 2025. He also mentioned that the company has been maintaining a prudent approach to tendering while seeing strong demand in the market. Carlsson commented on market conditions, saying that while the construction market is generally strong in areas like public buildings, healthcare, prisons, defense, and industry, the residential and commercial real estate sectors remain weak. He noted that the company is seeing some signs of movement in the market. Regarding cost management, Carlsson said NCC is actively working to control costs and ensure it gets paid for them, and he described the company's goal as strengthening margins across all business areas by being more selective in project bidding and phasing out low-margin projects. He also remarked that price increases are manageable but that volatility is a more difficult challenge.
Transcript (28 segments)
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Interviewer0:13
Construction company NCC has reported, with both revenue and order intake above expectations. The stock is trading down slightly, but the company has performed strongly on the stock market recently. We'll get some color and nuance from CEO Tomas Carlsson. Congratulations, we can say. It looks like a strong report. What is your summary?
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Tomas Carlsson0:36
Thank you. I am very pleased with the report, both for the quarter and the full year, overall. We meet our EPS target of 16 kronor, have all-time highs in three business areas, have a fantastically strong cash flow and thereby a strong balance sheet, and the board recommends increasing the ordinary dividend from 8 to 9 kronor and 2 kronor in extra dividend. So I am very pleased with this.
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Interviewer1:05
Should I interpret the extra dividend as some cyclical optimism? That the forecasts are good going forward?
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Tomas Carlsson1:14
We have been quite optimistic for a while and said that we have good demand in our markets, even if it is a bit divided. But we see strong demand for all types of infrastructure, we see demand from public buildings and from industry, we see demand for energy generation, water... and healthcare, and we have had police and judiciary, and now defense is also investing, so it's a good market and strong demand. Then there are certain segments that one tends to focus on, in terms of housing and commercial real estate, where demand is very subdued.
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Interviewer1:58
But you don't work in those areas, if I may summarize.
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Tomas Carlsson2:01
We have decreased... We have managed to shift, we have large construction in both housing and commercial real estate, but shifted to other segments.
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Interviewer2:14
Okay, but one can imagine a shift back when the temperature allows?
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Tomas Carlsson2:19
Absolutely, one can imagine that, but then we need to see that there is a segment where we can actually make a difference.
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Interviewer2:28
A technicality that weighed on the result has to do with... a write-down related to revaluation of certain risks. It is linked to cost increases. Can you briefly explain what we are looking at?
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Tomas Carlsson2:45
It risks getting a bit technical, but we have a project that we won before the cost increase in 2022, and in the Swedish contract model, one then adjusts for extraordinary cost increases, and those discussions are ongoing in a number of mostly completed projects. Since we have a new management in the business area, I asked them to take a fresh look at what the risk profile looks like here, and then we made a provision of 250 million. It has no material impact on the margin in the order book. That is important to keep in mind. We will not deliver these going forward; they are already completed. This gives us a better risk profile in the order book going forward. This is a forward-looking measure.
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Interviewer3:35
And that's a good thing. But my concern is... Does this make one look at other parts of NCC and do a similar review elsewhere? Is there a risk of repeats?
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Tomas Carlsson3:50
No, we don't see that, and if we had, we probably would have done it earlier. This especially applies to Building Sweden.
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Interviewer3:54
Great. Shall we talk about a strategic review? You might sell the Industry business area. Asphalt and other things. Can you give me an explanation of what you are looking at?
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Tomas Carlsson4:09
It concerns our stone business, that is stone products for Swedish construction, and then there is asphalt and paving work. That is in one business area. We are very pleased with the development recently, but also see great potential ahead. One can note that the industry activity differs commercially quite a bit from the contracting activity, it ties up a lot of capital, fixed delivery points from quarries and asphalt plants, it is standardized products in terms of stone and asphalt and standardized contracts. In relation to the contracting business which ties up very little capital, moves around all the time, and deliveries are more of a service. This means we have to double certain costs to run these two, and then we want to do a thorough investigation of how to get the best possible platform for both the industry business and the contracting business to develop in the best way. It may be that we sell the industry business, or we may conclude that we are a pretty good owner of this after all. So that will be a big work during the year.
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Interviewer5:29
It may be premature of me with critical objections, but I have two thoughts. First: This sounds non-cyclical, and that's the non-cyclical or eternally strong that has been so nice with NCC lately.
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Tomas Carlsson5:49
Yes, but we have probably had equally large fluctuations within the industry business as within contracting, and we are working to strengthen both. So it is actually not a question I have had as... It has not been significant in the consideration. It may be that we look at it going forward, it is, as said, a review.
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Interviewer6:12
Yes, and I understand that nothing is decided, but my second objection, then... Thank you for your patience. If I read correctly, this is roughly 20% of revenues, but 29% of profit, so a very profitable part. Sounds nice to keep.
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Tomas Carlsson6:31
Yes, but it ties up more capital and has lower return on capital employed, so it depends on which profit measure one focuses on.
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Interviewer6:40
Yes. Do you have any message to the market that gave NCC a weak reception today?
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Tomas Carlsson6:45
I know the stock has performed strongly, and other construction companies have received warm receptions.
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Interviewer6:52
Do you think they are focusing on the wrong things? This is a positive report.
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Tomas Carlsson6:58
It is not my job to review the stock market. I focus on the company. In the long run, it usually evens out.
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Interviewer7:07
If we look ahead... You mentioned office and housing as the cyclical parts that you have paused a bit recently. Do you have any cyclical feeling? Many want to know if it will turn, and when it will turn. Do you notice any change in the mood?
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Tomas Carlsson7:29
No, not really, not in any concrete things we can grasp. I am probably among the more cautious. I think it will take a while before the housing market comes back. Then the question is at what new level it will stabilize. So I am very cautious about that.
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Interviewer7:52
Very cautious, but still strong order intake and good figures in the report. That sounds wise and nice. Tomas Carlsson, thank you very much for being here. Did I forget to ask anything? Is there anything you want to add?
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Tomas Carlsson8:06
No, well... The overall picture is that the report is good. That's what matters.
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Interviewer8:12
Fine. Thank you very much for being here. See you. Take care.
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Narrator8:27
This is a podcast from EFN Ekonomikanalen. The responsible publisher is Leo Lagercrantz.