Q2 2024 Ncc AB Earnings Call Transcript
Key Points
- Earnings increased by 24% compared to last year, despite no profit recognition in property.
- Orders received are at a good level, leading to a healthy order backlog.
- Net sales in the quarter are up, with a stable performance in the first half of the year.
- Industry segment showed strong performance with increased volumes and lower overhead costs.
- Net debt is well below the target, currently at 1.48 times EBITDA.
- Property transaction market remains slow with no projects sold or started in the quarter.
- Health and safety targets are not met, with the current lost time injury frequency at 4, above the target of below 2.
- Building Sweden continues to have weak profitability with a 2% EBIT margin.
- Increased competition in the market, particularly in Sweden and Finland, leading to price pressure.
- IT development costs are expected to increase by SEK40 million to SEK60 million in the coming year.
Good morning and welcome to this presentation of the second quarter and the first half year for the NCC Group. I'm Tomas Carlsson, CEO, and on this call, we also have Susanne Lithander, CFO.
So let's start with the summary. We had a good second quarter and this is the short version on how to understand the quarter. Earnings up compared to last year by 24% despite no profit recognition in property. The main driver behind this industry, both volumes and earnings are up. Orders received on a good level which leads to order backlog on a healthy level.
Market outlook, we think it's a strong outlook even though it's still divided the same way that we've seen for some time now. And in the quarter, no property transactions. There are positive signs for the property transaction markets but we haven't seen any real change yet.
So let's start with orders received on a good level. Book to bill in the quarter and rolling 12 is one. And this order is received while we are maintaining a disciplined approach to tenders, what we
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