Nordic construction company NCC has reported a positive trend in its third-quarter (Q3) financial performance for 2024 with a significant rise in orders received, primarily within its Infrastructure and Building Sweden divisions.
Orders amounted to Skr13.26bn ($1.24bn) in the period, up from Skr9.68bn in the same period last year. However, net sales remained relatively stable at Skr14.28bn, compared to Skr14.02bn in Q3 2023.
The company reported an 8% improvement in operating profit, which stood at Skr665m compared to Skr614m in the same quarter last year, adjusted for nonrecurring effects from the previous year, including the divestment of Bergnäset.
The company's profit after financial items reached Skr612m, down from Skr771m, and profit after tax was reported at Skr472m, a decrease from Skr621m in the same quarter last year. Earnings per share (EPS) after dilution were Skr4.83, down from Skr6.36 previously.
Meanwhile, during the January-September period of 2024, NCC's orders received increased slightly to Skr41.28bn from Skr40.66bn.
Net sales were almost unchanged at Skr41.29bn. The operating profit for the nine-month period was Skr1.19bn, compared to Skr1.27bn in the previous year, excluding the Bergnäset divestment.
Profit after financial items and profit after tax also saw a decline, with the latter falling to Skr851m from Skr1.18bn. EPS after dilution for the period were Skr8.71, down from Skr12.09.
The company's cash flow was adversely affected by an increase in working capital and the divestment of Bergnäset, which had boosted the previous year's figures.
NCC president and CEO Tomas Carlsson said: “Yet another stable quarter for NCC, primarily due to improvements in the Industry and Building Nordics business areas.”
“The construction market continues to show a mixed picture. There is good demand and a positive outlook, particularly in infrastructure, industry and public buildings. The geopolitical situation and the transition to a more sustainable society are two underlying drivers that support continued investment needs throughout the Nordic region. Maintenance backlogs and the build-out of infrastructure such as roads, electricity, and water networks are other factors driving demand.”
The company’s activities encompass contracting for construction and infrastructure projects, manufacturing asphalt and stone materials, and developing commercial properties.
