Q2 2026 Nyab AB (publ) Earnings Call

August 13, 2026

Erik Petersen: Hello everyone, and welcome to Nyab's result presentation for the second quarter of 2026. Nyab has today released its interim report, and with us in this call, we have the Group CEO, Johan Larsson, and the Interim CFO, Peter Franks. My name is Erik Petersen, and I am the VP of Corporate Affairs and Investor Relations at Nyab. Participants who wish to ask questions after the presentation are welcome to join the teleconference via the link in the invitation. You may also submit your questions in the chat, and you will find the chat under the presentation window on your screen. Now to get started, I hand over to Johan, who will go through the results.

Erik Petersen: Hello everyone, and welcome to NYAB's Result Presentation for the Q2 of 2026. NYAB has today released its interim report, and with us in this call, we have the Group CEO, Johan Larsson, and the Interim CFO, Peter Franks. My name is Erik Petersen, and I am the VP of Corporate Affairs and Investor Relations at Nyab. Participants who wish to ask questions after the presentation are welcome to join the teleconference via the link in the invitation. You may also submit your questions in the chat, and you will find the chat under the presentation window on your screen. Now to get started, I hand over to Johan, who will go through the results.

Speaker #1: Hello everyone, and welcome to Nyab's results presentation for the second quarter of 2026. Nyab has today released its interim report, and with us on this call we have the Group CEO, Johan Larsson, and interim CFO, Peter Franck.

Speaker #1: My name is Erik Petersen, and I'm the VP of Corporate Affairs and Investor Relations at Nyab. Participants who wish to ask questions after the presentation are welcome to join the teleconference via the link in the invitation.

Speaker #1: You may also submit your questions in the chat, and you'll find the chat under the presentation window on your screen. And now, to get started, I'll hand over to Johan, who will go through the results.

Speaker #2: Thank you, Erik. Yeah, welcome everyone. Strong report from our side. As we stated when reporting the first quarter, we had a high underlying growth that comes through now in the second quarter, where we show strong revenue growth and clearly improved profitability.

Johan Larsson: Thank you, Erik. Welcome everyone. Strong report from our side. As we stated when reporting the first quarter, that we had a high underlying growth that comes through now in the second quarter, where we show a strong revenue growth and with a clearly improved profitability. Our Civil Engineering business, mainly in Sweden, drove the performance when it comes to EBIT and the revenue growth is strong, and our order intake remains robust, and our backlog is at the highest level ever, reaching or surpassing EUR 500 million. So quarterly, year-over-year, we grow with 19%. That is even more impressive if you take into account that we still do a lot of work in project and planning in early work agreements and phase 1 agreements.

Johan Larsson: Thank you, Erik. Welcome everyone. Strong report from our side. As we stated when reporting the Q1, that we had a high underlying growth that comes through now in the Q2, where we show a strong revenue growth and with a clearly improved profitability. Our Civil Engineering business, mainly in Sweden, drove the performance when it comes to EBIT and the revenue growth is strong, and our order intake remains robust, and our backlog is at the highest level ever, reaching or surpassing EUR 500 million. So quarterly, year-over-year, we grow with 19%. That is even more impressive if you take into account that we still do a lot of work in project and planning in early work agreements and phase 1 agreements.

Speaker #2: Our civil engineering business, mainly in Sweden, drove the performance both in terms of EBIT and revenue—strong results. Our order intake remained robust, and our backlog is at the highest level ever, reaching or surpassing €500 million.

Speaker #2: So, quarterly, year-over-year, we grow by 19%. That is even more impressive if you take into account that we still do a lot of work in projects and planning, in early work agreements, and phase one agreements.

Johan Larsson: Rolling 12, we have a growth of 25%, and if you go further back, we have close to doubled our revenues in two years looking at rolling 12. We increased our earnings, and we improve our margin from 4.2% in the second quarter last year to 5.1% now. Follows our plan. We have been clear that our growth mainly stems from niches with a bit higher margins, such as railway, waterworks, power lines. The rolling 12, we have an improvement of 21%. Our order intake remains robust. Of course, that is where our growth comes from. Quarterly, it is at the same level as last year. Rolling 12, we grow with 18%, and our order backlog is well-balanced. We are picky, and we grow in a right and good way. There is a lot of balance in our growth.

Speaker #2: Rolling 12, we have a growth of 25%, and if you go further back, we have close to doubled our revenues in 2 years, looking at rolling 12.

Speaker #2: We increased our earnings and improved our margin from 4.2% in the second quarter last year to 5.1% now, following our plan. We have been clear that our growth mainly stems from niches with a bit higher margins, such as railway, waterworks, power headlines, and rolling 12, we have an improvement of 21%.

Speaker #2: On our order intake, we remained robust. Of course, that is where our growth comes from. Quarterly, it's at the same level as last year. On a rolling 12-month basis, we grew by 18%.

Speaker #2: And our order backlog is well balanced. We are picky, and we grow in a right, right and good way. There's a lot of balance in our growth.

Johan Larsson: This is our 12th consecutive year with growth, and we are managing that part very well. As we have stated earlier, Nyab is a low CapEx asset-light company that is set up for growth. A selection of new contracts. We won the trust of the Swedish Transport Administration for a North Bothnia line contract, a railway contract. The completion is scheduled for 2030. We won a contract for A-Train. The project is scheduled for completion in April 2028. It is the expansion of a maintenance depot. The important frame agreement extension with IVL in our Consulting business, global solution won their continued trust. Some selected early involvement projects, just to give a clearer view. We talk a lot about phase 1, phase 2, early agreements and such. After the period, we received a huge order for our joint venture, a EUR 6.5 billion contract for the Uppsala tramway.

Speaker #2: This is our twelfth consecutive year of growth, and we are managing that part very well. As we have stated earlier, Nyab is a low capex-as-applied company that is set up for growth.

Speaker #2: A selection of new contracts—we won the trust of the Swedish Transport Administration for a North Bothnia Line contract, a railway contract. The completion is scheduled for 2030.

Speaker #2: We won a contract for A-Train, which is a project scheduled for completion in April 2028. It's the expansion of a maintenance depot, and an important frame agreement extension with IBEL in our consulting business, Dovre Solution, showing their continued trust.

Speaker #2: And some selected early involvement projects, just to give a clearer view—we talk a lot about phase one, phase two, early agreements, and such.

Speaker #2: After the period, we received a huge order for our young venture—a 6.5 billion contract for the Uppsala tramway. We have been working with planning and projecting for quite a long time, and we're very happy to receive their trust. Half of this value is Nyab's, meaning 3.25 billion.

Johan Larsson: We have been working with the planning and projecting for quite a long time. Very happy to receive their trust. Half of this value is Nyab's, meaning EUR 2.25 billion. We signed some early works agreement with SSAB in April and in July. Our data center contract, Nyab's first data center contract. I am quite confident that there will be more data center contracts that will follow this. We have received the execution orders, so we are doing fine there in Finland. Important step to grow our Finnish business as well. One thing we always measure, of great importance to our owners, our long-term financial targets. We are aiming at an annual revenue growth exceeding 10%, and the outcome rolling 12 is 25%.

Speaker #2: We signed some early works agreements with SSA, in April and in July, and our data center contract—Nyab's first data center contract. I'm quite confident that there will be more data center contracts to follow this, but we have received the execution orders and so we are doing fine there in Finland.

Speaker #2: An important step to grow our Finnish business as well. And one thing we always measure, of great importance to our owners, is our long-term financial targets. We are aiming at annual revenue growth exceeding 10%, and the outcome, rolling 12 months, is 25%. And if you take into account the volumes we have in phase two that aren't in the order book yet, the possibility to heavily exceed our revenue growth target is there.

Johan Larsson: If you take into account the volumes we have in phase 2 that are not in the order book yet, the possibility to heavily exceed our revenue growth target are there. Profitability, operating margin, EBIT exceeding 7.5%. Our outcome rolling 12 is 6%. We are in a good position to improve the rolling 12 outcome the coming quarters, when we have our prosperous second half of the year. Then, of course, we have also stated quite clear to the market that 2025 and 2026, we will not reach our target, but it is a long-term target. The main reason why we will not reach that is because of our Consulting business. We acquired a company that are diluting the margin, and is expected to do so during 2025 and 2026. But we take a lot of good actions. We have a new leadership. We are establishing the Consulting business in Sweden.

Speaker #2: Profitability, operating margin, EBIT exceeding 7.5%. Our outcome rolling 12 is 6%. We are in a good position to improve the rolling 12 outcome in the coming quarters, when we have our prosperous second half of the year. And then, of course, we have also stated quite clearly to the markets that in 2025 and 2026 we want to reach our targets, but it's a long-term target. The main reason why we want to reach that is because of our consulting business, which requires the company that are diluting the margin, and is expected to do so during 2025 and 2026. But we are taking a lot of good actions. We have a new leadership, we are establishing the consulting business in Sweden, and we have a lot of use in our civil engineering business, and in all our consulting business as well, and that helps us be stronger in these early-phase planning and projecting.

Johan Larsson: The main reason why we will not reach that is because of our Consulting business. We acquired a company that are diluting the margin, and is expected to do so during 2025 and 2026. But we take a lot of good actions. We have a new leadership. We are establishing the Consulting business in Sweden. We have a lot of use in our Civil Engineering business, or our Consulting business as well, and that helps us being stronger in this early phase planning and projecting objects as well.

Johan Larsson: We have a lot of use in our Civil Engineering business, or our Consulting business as well, and that helps us being stronger in this early phase planning and projecting objects as well. Capital structure. We have a goal of a net debt in relation to EBITDA below 1.5x. We have a negative net debt, so a lot of room for maneuvers. An entrepreneur-led company like this should be in this position. We have to stay strong. It is somewhat related also to our equity ratio that is in the level of 67%, but we are a company that should stay on solid grounds and be stable and do not take too much financial risks. Nothing new, our direct shareholder return, we have a goal of a dividend exceeding 35% of the net profit, and the outcome was 47%. With that, I hand over to Peter Frank.

Speaker #2: Projects as well. Capital structure—we have a goal of a net debt in relation to EBITDA below 1.5x. We have a negative net debt, so there is a lot of room for maneuvers. A company like this, with an entrepreneurial mindset, should be in this position. We have to stay strong. It's somewhat related also to our equity ratio, which is at the level of 67%. We are a company that should stay on solid ground, be stable, and not take too much financial risk.

Johan Larsson: Capital structure. We have a goal of a net debt in relation to EBITDA below 1.5x. We have a negative net debt, so a lot of room for maneuvers. An entrepreneur-led company like this should be in this position. We have to stay strong. It is somewhat related also to our equity ratio that is in the level of 67%, but we are a company that should stay on solid grounds and be stable and do not take too much financial risks. Nothing new, our direct shareholder return, we have a goal of a dividend exceeding 35% of the net profit, and the outcome was 47%. With that, I hand over to Peter Frank.

Speaker #2: And nothing new—our direct shareholder return. We have a goal of a dividend exceeding 35% of the net profit, and the outcome was 47%.

Speaker #2: And with that, I hand over to Peter Franks.

Speaker #1: Thank you, Johan. I'm Peter Franks, interim CFO, and now I'll take you through the financial highlights of the second quarter. I'll start with group revenue, profitability, and the group financial position, and then move to the performance of our two business segments: Civil Engineering and Consulting.

Peter Franks: Thank you, Johan. I am Peter Frank, Interim CFO, and now I will take you through the financial highlights of Q2. I will start with group revenue, profitability and the group financial position, and then move to the performance of our two business segments, Civil Engineering and Consulting. Group revenue for Q2 came in at EUR 161.9 million, up 19% on the same quarter last year, and almost all of that growth was organic. The increase was driven by higher production during the quarter, which reflects a combination of drivers. Some production slipped from Q1 2026 into Q2 2026 because of the tougher 2025, 2026 Nordic winter than we experienced in 2024, 2025.

Speaker #1: Group revenue for the second quarter came in at €161.9 million, up 19% on the same quarter last year, and almost all of that growth was organic.

Speaker #1: The increase was driven by higher production during the quarter, which reflects a combination of drivers. Some production slipped from Q1 2026 into Q2 2026 because of the tougher 2025/2026 Nordic winter than we experienced in 2024/2025.

Speaker #1: In addition, our production levels were higher, reflecting that our order intake has grown 18% over the past year and that we had several large infrastructure projects in Sweden with short delivery timelines, which made a strong revenue contribution.

Peter Franks: In addition, our production levels were higher, reflecting that our order intake has grown 18% over the past year, and that we had several large infrastructure projects in Sweden with short delivery timelines, which made a strong revenue contribution, alongside several larger projects being moved from the planning phase into the construction phase. On a rolling 12-month basis, revenue grew 25% to EUR 566.5 million, of which 15% was organic and 10% from acquisitions. The rolling 12-month revenue split is broadly stable. By market segment, Energy's revenue share has moved from 56% to 46%, and Infrastructure's revenue share has increased from 32% to 42%, in line with market opportunities. By operating segment, Civil Engineering represents 81% of group revenues and Consulting 19%. Geographically, Sweden remains our largest market at 65%, followed by Finland at 17% and Norway at 13%.

Speaker #1: Alongside, several larger projects are being moved from the planning phase into the construction phase. On a rolling 12-month basis, revenue grew 25% to €566.5 million, of which 15% was organic, and 10% came from acquisitions.

Speaker #1: The rolling 12-month revenue split is broadly stable. By market segment, Energy's revenue share has moved from 56% to 46%, and Infrastructure's revenue share has increased from 32% to 42%, in line with market opportunities.

Speaker #1: By operating segment, Civil Engineering represents 81% of group revenues, and Consulting 19%. Geographically, Sweden remains our largest market at 65%, followed by Finland at 17% and Norway at 13%.

Speaker #1: The private sector accounts for 63% of group revenue, and the public sector 37%. Moving on to group profitability, we delivered improved margins in Q2 2026 versus Q2 2025.

Peter Franks: The private sector accounts for 63% of group revenue and the public sector 37%. Moving on to group profitability. We delivered improved margins in Q2 2026 versus Q2 2025. Operating profit rose 45% to EUR 8.3 million, from EUR 5.7 million in Q2 2025. The operating margin improved to 5.1% from 4.2%. This was supported by the quarter's revenue growth and a more favorable project mix as several larger projects moved into production phase. On a rolling 12-month basis, operating profit increased 21% to EUR 33.7 million at an operating margin of 6%, underpinned by a healthy margin profile across the project portfolio. Net profit for the quarter was EUR 7.7 million, up 84% from EUR 4.2 million.

Speaker #1: Operating profit rose 45% to €8.3 million, from €5.7 million in Q2 25. The operating margin improved to 5.1% from 4.2%. This was supported by the quarter's revenue growth and a more favorable project mix, as several larger projects moved into the production phase.

Speaker #1: On a rolling 12-month basis, operating profit increased 21% to €33.7 million at an operating margin of 6%, underpinned by a healthy margin profile across the project portfolio.

Speaker #1: Net profit for the quarter was €7.7 million, up 84% from €4.2 million. Beyond the higher operating profit, this reflected lower financing costs from our net cash position compared to our net debt position a year ago, alongside higher earnings from associates and joint ventures, as the Upsala tramway project progressed.

Peter Franks: Beyond the higher operating profit, this reflected lower financing from our net cash position compared to our net debt position a year ago, alongside higher earnings from associates and joint ventures as the Uppsala Tramway project progressed. Moving on to our group financial position. We closed the quarter with solid cash generation and a strengthened balance sheet. Free cash flow for the quarter was EUR 1.8 million against EUR 5.5 million a year ago. The lower figure reflects the weaker Q1 revenue, an increase in working capital, and investments in machinery. We view the working capital build as temporary, relating to inventory for an upcoming project and extended payment terms with compensating revenue adjustments on a strategic project in its early phases. The rolling 12 free cash flow was EUR 35.6 million, with a cash conversion rate of 88% of EBITDA.

Speaker #1: Moving on to our group financial position, we closed the quarter with solid cash generation and a strengthened balance sheet. Free cash flow for the quarter was €1.8 million, compared to €5.5 million a year ago.

Speaker #1: The lower figure reflects the weaker Q1 revenue, an increase in working capital, and investments in machinery. We view the working capital build as temporary, relating to inventory for an upcoming project and extended payment terms, with compensating revenue adjustments on a strategic project in its early phases.

Speaker #1: The rolling 12-month free cash flow was €35.6 million, with a cash conversion rate of 88% of EBITDA. We maintained a net cash position of €12 million, compared with a net debt of €10.3 million a year ago.

Peter Franks: We maintained a net cash position of EUR 12 million, compared with a net debt of EUR 10.3 million a year ago. The net debt to EBITDA ratio was -0.3 times versus 0.56 times at the end of Q1 2026. The return on capital employed was 15.6%, and the equity ratio was 67%. Now let's turn to our largest business segment, Civil Engineering. In Civil Engineering, market activity remained high. Order intake held at Q1 levels and was slightly ahead of the same quarter last year at EUR 166.6 million. The quarter's order intake includes the Norrbotniabanan railway project, the A-Train project, and additions to the SSAB and Mikkeli projects. On a rolling 12-month basis, order intake represents a Book-to-Bill ratio of 1.2 times revenue. Order backlog grew during the quarter to EUR 501.6 million, up 18% year-on-year.

Speaker #1: The net debt to EBITDA ratio was minus 0.3 times, compared to 0.56 times at the end of Q1 2026. The return on capital employed was 15.6%, and the equity ratio was 67%.

Speaker #1: So now let's turn to our largest business segment, civil engineering. In civil engineering, market activity remained high. Order intake held at Q1 levels and was slightly ahead of the same quarter last year, at SEK 166.6 million.

Speaker #1: The quarter's order intake includes the North Bothnia Railway project, the A-Train project, and additions to the SSAB and Macaulay projects. On a rolling 12-month basis, order intake represents a book-to-bill ratio of 1.2 times revenue.

Speaker #1: Order backlog grew during the quarter to €501.6 million, up 18% year on year. Both intake and backlog exclude the phase two Upseller tramway project, which Johan mentioned was signed in early July.

Peter Franks: Both intake and backlog exclude the Phase 2 Uppsala Tramway project, which Johan mentioned was signed in early July. Beyond the reported backlog, Civil Engineering has several early-stage engagements with potential for significant follow-up phases. Based on scoping discussions and pricing estimates with our customers, these future phases, if signed, could represent additional order intake of around EUR 600 million. With that, let me turn to Civil Engineering's revenue and profitability for the quarter. Civil Engineering followed its expected seasonal pattern, with revenue increasing from Q1. Revenue rose 28% versus the same quarter last year to EUR 137.6 million, reflecting the catch-up of delayed Q1 revenue after the tougher Nordic winter, improved order intake and backlog, and the shift of several large projects from the planning phase into the construction phase, together with the ramp-up of production-intensive infrastructure projects. Operating profit increased 52% to EUR 8.7 million from EUR 5.7 million.

Speaker #1: Beyond the reported backlog, Civil Engineering has several early-stage engagements, with potential for significant follow-up phases. Based on scoping discussions and pricing estimates with our customers, these future phases, if signed, could represent additional order intake of around €600 million.

Speaker #1: With that, let me turn to Civil Engineering's revenue and profitability for the quarter. Civil Engineering followed its expected seasonal pattern, with revenue increasing from Q1.

Peter Franks: With that, let me turn to Civil Engineering's revenue and profitability for the quarter. Civil Engineering followed its expected seasonal pattern, with revenue increasing from Q1. Revenue rose 28% versus the same quarter last year to EUR 137.6 million, reflecting the catch-up of delayed Q1 revenue after the tougher Nordic winter, improved order intake and backlog, and the shift of several large projects from the planning phase into the construction phase, together with the ramp-up of production-intensive infrastructure projects. Operating profit increased 52% to EUR 8.7 million from EUR 5.7 million.

Speaker #1: Revenue rose 28% versus the same quarter last year to €137.6 million, reflecting the catch-up of delayed Q1 revenue after the tougher Nordic winter, improved order intake and backlog, and the shift of several large projects from the planning phase into the construction phase, together with the ramp-up of production-intensive infrastructure projects.

Speaker #1: Operating profit increased 52% to €8.7 million, from €5.7 million. The operating margin improved to 6.3%, from 5.3%. On a rolling 12-month basis, operating profit grew 15% at an operating margin of 7.3%.

Peter Franks: The operating margin improved to 6.3% from 5.3%. On a rolling 12-month basis, operating profit grew 15% at an operating margin of 7.3%. We are pleased with this performance, both the improvement in operating margin and the profitability of the project portfolio. We now move on to our Consulting business, Dovre Group, which represents 20% of group revenues. The demand in the Norwegian offshore market stayed soft, and the number of consultants on assignments fell during the quarter. The appetite for new renewable energy investment projects also remained weak. Against this backdrop, order intake fell to EUR 14 million, bringing the rolling 12-month Book-to-Bill ratio to 0.7 times revenue. Quarterly revenue declined 13% to EUR 24.7 million, and the operating margin was 2.1%, down from 2.9% in the prior year. On a rolling 12-month basis, revenue was EUR 107.4 million at an operating margin of 2.4%.

Speaker #1: We are pleased with this performance—both the improvement in operating margin and the profitability of the project portfolio. We now move on to our consultancy business, Duravra Solutions, which represents 20% of group revenues.

Speaker #1: The demand in the Norwegian offshore market stayed soft, and the number of consultants on assignments fell during the quarter. The appetite for new renewable energy investment projects also remained weak.

Speaker #1: Against this backdrop, order intake fell to €14 million, bringing the rolling 12-month book-to-bill ratio to 0.7 times revenue. Quarterly revenue declined 13% to €24.7 million, and the operating margin was 2.1%, down from 2.9% in the prior year.

Speaker #1: On a rolling 12-month basis, revenue was €107.4 million, at an operating margin of 2.4%. In Norway, we merged the onshore and offshore operations to capture greater synergies and efficiency across the organisation.

Peter Franks: In Norway, we merged the onshore and offshore operations to capture greater synergies and efficiency across the organization. The management remains focused on building an integrated Nordic consulting offering, and we are already seeing more collaboration across the countries, and we expect this work to continue and gradually intensify through the remaining quarters of 2026. I now hand back to Johan to provide a summary of our Q2 2026.

Speaker #1: The management remained focused on building an integrated Nordic consulting offering, and we are already seeing more collaboration across the countries. We expect this work to continue and gradually intensify through the remaining quarters of 2026.

Speaker #1: I now hand back to Johan to provide a summary of our Q2 2026.

Speaker #2: Great. Thanks, Peter. Yeah, first of all, to sum it up, we can clearly state that we are addressing growing markets. Society needs to invest in these areas to be able to be competitive and grow, and it's of importance for the future.

Johan Larsson: Great. Thanks, Peter. First of all, to sum it up, we can clearly state that we are addressing growing markets. Society needs to invest in these areas to be able to be competitive, grow, and it is of importance for the future. The investments, energy, heavy investments, both in energy sources and in energy infrastructure. The defense, which is a client to us in both Sweden and Norway. Infrastructure investments, a lot of investment needed in railway, roads, bridges, around harbors, ports, markets we address. The industry, especially up in the north, where you have a lot of huge, heavy base industry investments, as well as in Finland. So we have a strong revenue growth. We have a higher operating margin in the quarter, and we have a state that a lot of potential from our early phase assignments.

Speaker #2: The investments in energy have the investments both in energy sources and in energy infrastructure. The defense, which is a client to us in both Sweden and Norway.

Speaker #2: Infrastructure investments—a lot of investment is needed in railways, roads, bridges, around harbours, ports, and markets we address, and the industry. Especially up in the north, where you have a lot of huge, heavy base industry investments, as well as in Finland.

Speaker #2: So we had strong revenue growth. We have a higher operating margin in the quarter. And we have stated that there is a lot of potential from our early phase.

Speaker #2: Assignments worth mentioning is that in New York history, we have never won a Phase One nor an early work agreement without receiving the order for the execution phase.

Johan Larsson: Worth mentioning is that in the Nyab history, we have never won a phase 1, nor an early work agreement without receiving the order for the execution phase. That doesn't mean, of course, that that's a truth in the future, but it's at least a good indication. Our Civil Engineering business drove the improvement. Good improvement in profitability in Sweden and increased activity in Finland. I would say that the Swedish improvement comes from niche markets, railway, waterworks, and power lines mainly, and to some extent, also the defense. A robust order intake and the highest order backlog to date in Civil Engineering, which of course, gives us the base for a continued growth. We have 12 straight years of growth, mainly organic. We continue to focus on further strengthening profitability, and our order backlog, where our expected growth is in the right niche segments supports that.

Speaker #2: That doesn't mean, of course, that that's the truth in the future, but it's at least a good indication. Our civil engineering business drove the improvement.

Speaker #2: Good improvement in profitability in Sweden, and the increased activity in Finland. I would say that the Swedish improvement comes from niche markets—railway, waterworks, and power, mainly.

Speaker #2: And to some extent, also the defence. A robust order intake and the highest order backlog to date in civil engineering, which of course gives us the base for continued growth.

Speaker #2: We have 12 straight years of growth, mainly organic. We continue to focus on further strengthening profitability. And our order backlog, where our expected growth is in the right niche segments, supports that.

Johan Larsson: We have 12 straight years of growth, mainly organic. We continue to focus on further strengthening profitability, and our order backlog, where our expected growth is in the right niche segments supports that. We have touched it already, but a solid financial position and a well-balanced product portfolio as we enter H2. H2 has always been the strongest period for both revenue and earnings, and it's just like a football game. We go to half-time with a good result, but in the second half, it's decided if you win the game or not. So I'm happy with our first half.

Johan Larsson: We have touched it already, but a solid financial position and a well-balanced product portfolio as we enter H2. H2 has always been the strongest period for both revenue and earnings, and it's just like a football game. We go to half-time with a good result, but in the second half, it's decided if you win the game or not. So I'm happy with our first half.

Speaker #2: And we have touched on it already, but we have a solid financial position and a well-balanced product portfolio as we enter H2. H2 has always been the strongest period for both revenue and earnings, and it's just like a football game.

Speaker #2: We go to half-time with a good result, but it's in the second half that it's decided if you win the game or not. So I'm happy with our first half.

Speaker #1: Thank you, Johan. And thank you, Peter. We will now open the teleconference for questions.

Erik Petersen: Thank you, Johan, and thank you, Peter. We will now open the teleconference for questions.

Speaker #3: If you wish to ask a question, please dial the pound key, then 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial the pound key, then 6 on your telephone keypad.

Operator: If you wish to ask a question, please dial pound key 5 on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key 6 on your telephone keypad. The next question comes from Simon Johansson from ABG Sundal Collier. Please go ahead.

Speaker #3: The next question comes from Simon Johnson from ABG Sundal Collier. Please go ahead.

Speaker #4: Hello, and good morning, guys. First, I have a few questions on the Uppsala project, the tram project, and first of all, I wonder when you are starting to work.

Simon Johansson: Hello, and good morning, guys. First, I have a few questions on the Uppsala tram project. First of all, I wonder when you are starting the work, is it already now or when they start? Also, how the sales and earnings will be reported for you guys, given the joint venture?

Simon Jönsson: Hello, and good morning, guys. First, I have a few questions on the Uppsala tram project. First of all, I wonder when you are starting the work, is it already now or when they start? Also, how the sales and earnings will be reported for you guys, given the joint venture?

Speaker #4: Is it already now, or when does it start? And also, how will the sales and earnings be reported for you guys, given the joint venture?

Speaker #2: Yeah, to some extent, the work has already started. When it comes to the different alternatives of the accounting of the project, I leave it to Peter.

Johan Larsson: Yeah. To some extent, the work has already started. When it comes to the different alternatives of the accounting of the project, I leave it to Peter.

Speaker #1: Good, thank you. So, as the Uppsala tramway project is a joint venture, we will recognize our share of the profit or loss of the Uppsala joint venture company as our share of equity in associates and joint ventures in our P&L.

Peter Franks: Good. Thank you. As the Uppsala Tramway project is a joint venture, we will recognize our share of the profit or loss of the Uppsala joint venture company as our share of equity in associates and joint ventures in our P&L. It will fit below operating profit, but it is very much managed as part of our overall business and will be part of the Civil Engineering results going forward. Depending on the services provided by Nyab and other companies to the joint venture, there may be kickers in the operating profit as well. That is still in the negotiation and agreement phase. There are no commitments as to what that will look like.

Speaker #1: So, it will fit below operating profit, but it's very much managed as part of our overall business and will be part of the civil engineering results going forward.

Speaker #1: And depending on the services provided by Nyab and other companies to the joint venture, there may be kickers in the operating profit as well.

Speaker #1: But that's still in the negotiation and agreement phase. There are no commitments as to what that will look like.

Simon Johansson: All right. Got it. As you said, Johan, it is already started in some ways, and it is going to go on for a few years. Should we expect the work is done on a relatively even pace throughout those years, or could there be any swings or differences in the different years, you think, in terms of how much will be completed?

Simon Jönsson: All right. Got it. As you said, Johan, it is already started in some ways, and it is going to go on for a few years. Should we expect the work is done on a relatively even pace throughout those years, or could there be any swings or differences in the different years, you think, in terms of how much will be completed?

Speaker #4: All right. Got it. And as you started in some ways. And it's going to go on for a few years. Should we expect work is done on a relatively even pace throughout those years, or could there be any swings in or differences in the different years, you think, in terms of how much will be completed?

Speaker #2: It's relatively even. But if you look at our growth as a whole, it's not a big chunk every year—it's less than 10 percent, truly less than 10 percent of our annual revenue.

Johan Larsson: It's relatively even, but if you look at our growth as a whole, it's not a big chunk every year. It's clearly less than 10% of our annual revenue going forward, this project's volume alone.

Speaker #2: Going forward, this project's volume alone.

Simon Johansson: Yes, I see. All right. Thanks for that. Very good. Then another follow-up on the project in Uppsala. I understand that this is also a partnering contract. But what does it mean for margins, you think? Is it relatively similar to the rest of your Civil Engineering business in Sweden, or is there something we should think about in terms of profitability here for this project?

Simon Jönsson: Yes, I see. All right. Thanks for that. Very good. Then another follow-up on the project in Uppsala. I understand that this is also a partnering contract. But what does it mean for margins, you think? Is it relatively similar to the rest of your Civil Engineering business in Sweden, or is there something we should think about in terms of profitability here for this project?

Speaker #4: All right. Yes, I see. All right. Thanks for that. Very good. And then another follow-up on the project in Uppsala—I understand that this is also a partnering contract.

Speaker #4: But what does it mean for margins, you think? Is it relatively similar to the rest of your civil business in Sweden, or is there something we should think about in terms of profitability here for this project?

Johan Larsson: No, it follows the rules of the business. So the margins are quite similar to our average margin in Civil Engineering.

Speaker #2: Now, it follows the rules of the business, so the margins are quite similar to our average margin in civil engineering.

Speaker #4: All right, thanks for that. And then, Peter, you talked a bit about the Phase One pipeline that you have right now. I think it was $600 million in potential order value for those Phase Twos later.

Simon Johansson: All right. Thanks for that. Then Peter, you talked a bit about the phase 1 pipeline that you have right now. I think it was EUR 600 million in potential or the value for those phase 2s later. I guess Uppsala is included in those 600. Correct me if I'm wrong.

Simon Jönsson: All right. Thanks for that. Then Peter, you talked a bit about the phase 1 pipeline that you have right now. I think it was EUR 600 million in potential or the value for those phase 2s later. I guess Uppsala is included in those 600. Correct me if I'm wrong.

Speaker #4: I guess Uppsala is included in those 600. Correct me if I'm wrong.

Johan Larsson: You are wrong.

Speaker #2: No wrong.

Speaker #4: And, okay, so 600 is excluding Uppsala.

Simon Johansson: Okay, 600 is excluding Uppsala.

Simon Jönsson: Okay, 600 is excluding Uppsala.

Johan Larsson: No. Uppsala is included. It was after the end of the quarter.

Speaker #2: No, no. Uppsala is included; that was off to the end of the quarter.

Simon Johansson: Okay. 600 is including Uppsala.

Simon Jönsson: Okay. 600 is including Uppsala.

Speaker #4: Okay. 600 is including Uppsala.

Speaker #2: Yes.

Johan Larsson: Yes.

Speaker #4: Yes. Yeah. And the rest of it, how long would it typically take for you to convert that? Are we talking six months, twelve months, or what's the average timeline of those projects turning to phase twos?

Simon Johansson: How long would it typically take you to convert that? Are we talking 6 months, 12 months, or what is the average timeline of those projects turning into phase IIs?

Simon Jönsson: How long would it typically take you to convert that? Are we talking 6 months, 12 months, or what is the average timeline of those projects turning into phase IIs?

Speaker #2: Well, first of all, there are not signed as execution contracts yet. So that has to happen, of course, but the production time or the lifelength of those contracts, which is—they have been announced—it's the Mikkeli data center.

Johan Larsson: Well, first of all, they are not signed as execution contracts yet. That has to happen, of course, but the production time or the life length of those contracts, they have been announced. It is the Mikkeli Data Center. It is two contracts with SSAB related to their new steel mill, and it is Svenska Kraftnät. The production time varies on those projects, but the shortest one is 2 years, and the longest one is close to 4 years.

Speaker #2: It is two contracts with SSAB, related to their new steel mill, and it's Svenska Kraftnät. The production time varies on those projects, but the shortest one is two years.

Speaker #2: And the longest one is close to four years.

Simon Johansson: 2 to 4 years, is that how long the phase Is are taking?

Simon Jönsson: 2 to 4 years, is that how long the phase Is are taking?

Speaker #4: Two to four years—is that how long the Phase Ones are taking?

Speaker #2: No, no. That is how long the execution phase and phase two are taking.

Johan Larsson: No. That is how long the execution phase and the phase II is taking.

Speaker #4: Okay.

Simon Johansson: Okay.

Simon Jönsson: Okay.

Speaker #2: The phase one is that most likely all of these will materialize in phase two during this year.

Johan Larsson: The phase 1 is that most likely all of these will materialize in phase 2 during this year.

Speaker #4: All right. Okay. Yeah, that was my question. Very clear, thank you. Just one last question from me on the consulting business. You have guided before that growth would be muted.

Simon Johansson: All right. Okay. That was my question. Very clear. Thank you. Just one last question from me on the Consulting business. You have guided before that growth to be muted, so that's all good. But you also said that you are working to improve the margins. Where do you think you are right now in terms of potential margin improvement for the Consulting business?

Simon Jönsson: All right. Okay. That was my question. Very clear. Thank you. Just one last question from me on the Consulting business. You have guided before that growth to be muted, so that's all good. But you also said that you are working to improve the margins. Where do you think you are right now in terms of potential margin improvement for the Consulting business?

Speaker #4: So that's all good. But you also said that you're working to improve the margins. Where do you think you are right now in terms of potential margin improvement for the consulting business?

Speaker #2: Yeah, when it comes to the...

Johan Larsson: When it comes to the Consulting business, we made an acquisition January 2025. We have been quite clear that we will have a dilution of the group's margin due to that business. We have divested and sold our North American Consulting business. We are first and foremost a Nordic company. We have made leadership changes. We have established the Consulting business in Sweden during the summer. We have made some restructurings in the setup of the organization and the entities within Consulting. We are doing the right things, and I, at this moment, see no reason not to believe in a quite heavy margin improvement during 2027. That's what we are aiming for.

Speaker #4: Yeah.

Speaker #2: Yes. Regarding the consulting business, we made an acquisition in January 2025. We have been quite clear that we will see a dilution of the group's margin due to that business.

Speaker #2: We have divested and sold our North American consulting business. We are, first and foremost, a Nordic company. We have made leadership changes. We have established the consulting business in Sweden during this summer.

Speaker #2: And we have made some restructurings in the setup of the organisation and the entities within consulting, so we are doing the right things.

Speaker #2: And I, at this moment, see no reason not to believe in a quite significant margin improvement during 2027. And that's what we're aiming for.

Speaker #4: All right. Got it. Okay, that's all from me. Thank you so much.

Simon Johansson: All right. Got it. Okay, that was all from me. So thank you so much.

Simon Jönsson: All right. Got it. Okay, that was all from me. So thank you so much.

Speaker #2: Thank you so much. Thanks, Simon.

Johan Larsson: Thank you, Simon. Thanks, Simon.

Johan Larsson: Thank you, Simon.

Peter Franks: Thanks, Simon.

Speaker #1: The next question comes from Christopher Jennell from Indiers. Please go ahead.

Operator: The next question comes from Christoffer Jennel from Inderes. Please go ahead.

Speaker #3: Hello, Johan, Peter, and Eric. Thank you for taking my questions. I'll take them one by one. So starting with revenue, you saw very strong growth now in Q2.

Christoffer Jennel: Hello, Johan, Peter, and Erik. Thank you for taking my questions. I take them one by one. Starting with revenue, you saw a very strong growth now in Q2, despite a very strong last year, and the Civil Engineering backlog reached a record level. My question is, do you see that the H2 now being more backloaded than in previous year, or how do you see the second half developing from here?

Speaker #3: Despite a very strong last year, and with the civil engineering backlog reaching a record level, my question is: Do you see that H2 is now more backloaded than in previous years, or how do you see the second half developing from here?

Speaker #2: Well, I would say that the signs that we can see now are, of course, that our great margins in civil engineering during Q2 are from projects that are ongoing in H2.

Johan Larsson: Well, I would say that the signs that we can see now is, of course, that our great margins in Civil Engineering during Q2 is from projects that are ongoing in H2, meaning that we are quite optimistic about the second half of the year. Our seasonality is always the same. We have 75% or more of our earnings in H2, and I see no reason why it shouldn't be like that this year.

Speaker #2: This means that we are quite optimistic about the second half of the year. Our seasonality is always the same: we have 75% or more of our earnings in H2.

Speaker #2: And I see no reason why it shouldn't be like that this year.

Speaker #3: Okay. And then on margins, the group EBIT margin improved to 5.1% from 4.2% a year ago, and civil engineering in Sweden reached 7.7% from 5.8%.

Christoffer Jennel: Okay. Then on margin. The group EBIT margin improved to 5.1% from 4.2% a year ago, and Civil Engineering in Sweden reached 7.7% from 5.8%. I am wondering how much of that is operating leverage from higher volumes versus a structurally more favorable project and segment mix.

Speaker #3: And I'm wondering, how much of that is operating leverage from higher volumes versus a structurally more favorable project and segment mix?

Johan Larsson: It is a combination, of course. But since I have founded this company, and I have seen the yearly patterns for 13 years, I must say that this is by far the strongest Q2, which is a semi slow quarter for us. Q1 is very slow. Q2 is semi slow. The margin improvements are both structurally, it comes from our outspoken goal to address niche markets that has higher margins. But of course, you get an effect as well with higher volumes to carry the overhead costs.

Speaker #2: It's a combination, of course. But since I founded this company, and I have seen the yearly patterns for 13 years, I must say that this is by far the strongest Q2, which is a semi-slow quarter for us.

Speaker #2: Q1 is very slow. Q2 is semi-slow. And it's the margin improvements of both—structurally, it comes from our outspoken goal to address the niche market.

Speaker #2: Niche markets that have higher margins, but of course, you also get an effect with higher volumes to carry the overhead costs.

Speaker #3: Right. Got it. And then on the full-time employees, which saw an 11% decrease year-on-year to 970, while revenue grew 19% and backlog grew 80%.

Christoffer Jennel: Right. Got it. Then on the full-time employees, which saw an 11% decrease year on year to 970, while revenue grew 19% and backlog grew 18%. With H2 traditionally the strongest period and Uppsala now ramping, do you see that the organization is sized for the volume ahead? Then whether Uppsala is staffed with incremental hires and subcontractors or from teams that would otherwise be working on Nyab's own contract.

Speaker #3: 18%. So, with H2 traditionally being the strongest period and Uppsala now ramping, do you see that the organization is sized for the volume ahead? And then, whether Uppsala is staffed with incremental hires and subcontractors, or from teams that would otherwise be working on Nyab's own contracts?

Speaker #2: Yeah. Well, when it comes to Uppsala, it's always a combination. First and foremost, we have a team there already. During phase one, the revenue on that team isn't too high because they work with project and planning, meaning that there isn't any production under them.

Johan Larsson: Well, when it comes to Uppsala, it is always a combination. First and foremost, we have a team there already. During phase 1, the revenue on that team are not too high because they work with projects and planning, meaning that there are not any production under them. So now the revenue takes off, but the number of people does not increase much. As you know, we are a white collar company. We have like 85% white collar, less than 10% of our total production in the group is made by our own staff. So it does not have that much effect. If you break down Uppsala to the total contract length of eight years, it is not that much for Nyab as a whole, and simultaneously we are growing in other areas. So I just see it as a normal part of Nyab's growth.

Speaker #2: So now the revenue takes off, but the number of people doesn't increase much. And as you know, we are a white-collar company. We have about 85% white-collar employees and less than 10% of the total production in the group is made by our own staff.

Johan Larsson: We have like 85% white collar, less than 10% of our total production in the group is made by our own staff. So it does not have that much effect. If you break down Uppsala to the total contract length of eight years, it is not that much for Nyab as a whole, and simultaneously we are growing in other areas. So I just see it as a normal part of Nyab's growth. We have always handled that, and that's the reason why a small northern company is now a Nordic player.

Speaker #2: So it doesn't have that much effect. And if you break down Uppsala to the total contract length of eight years, it's not that much.

Speaker #2: For Nyab as a whole, and simultaneously, we are growing in other areas. So I just see it as a normal part of Nyab's growth.

Speaker #2: We have always handled that, and that's the reason why a small northern company is now a Nordic player.

Johan Larsson: We have always handled that, and that's the reason why a small northern company is now a Nordic player.

Speaker #3: And then on the cash conversion, which came in at 18% versus 75% a year ago, how much of that is normal working capital build ahead of the summer champion, and how much reflects timing effects from the phasing of larger projects?

Christoffer Jennel: On the cash conversion, which came in at 18% versus 25% a year ago, how much of that is normal working capital build ahead of the summer trim PM? How much reflects timing effects of the phasing from larger projects, and what should we expect for the full year?

Speaker #3: And what should we expect for the full year?

Speaker #2: Yeah, it's a combination. If you look at our free cash flow over time, it's not far from the level of EBIT. A quarter is a very short period.

Johan Larsson: Yeah, it's a combination. If you look at our free cash flow over time, it's not far from the level of EBIT. A quarter is a very short period, so there are timing effects. We have growth. We ramp up and start with higher revenues from May forward. April is also a slow month. So I would say that there's not too much to take into account with the free cash flow. It's positive, and it will even out during the year.

Speaker #2: So there are timing effects. We have growth. We ramp up and start with higher revenues from May forward. April is also a slow month.

Speaker #2: So I would say that there's not too much to take into account with the free cash flow. I mean, it's positive and it will even out during the year.

Christoffer Jennel: Okay. One last question from me, and just a clarification on the 600 million pipeline. Is that including your half of the Uppsala Tramway project?

Speaker #3: Okay. And then one last question from me, and just a clarification on the 600 million pipeline. Is that including your half of the Uppsala tramway project, or is it?

Johan Larsson: Yes

Johan Larsson: Yes.

Speaker #3: The full amount?

Christoffer Jennel: the full amount?

Christoffer Jennel: The full amount?

Johan Larsson: Yeah, that was signed after the end of Q2.

Speaker #2: Yeah, yeah. That was signed after the end of the second quarter.

Speaker #3: But it represents the 50% share? In the joint venture? Okay. Perfect. Thank you. That was all from me. Thanks, Christophe.

Christoffer Jennel: But it represents the 50% share

Christoffer Jennel: But it represents the 50% share-

Johan Larsson: Correct

Johan Larsson: Correct.

Christoffer Jennel: in the joint venture.

Johan Larsson: Yeah.

Christoffer Jennel: Okay, perfect. Thank you. That was all for me.

Christoffer Jennel: Okay, perfect. Thank you. That was all for me. Thank you.

Johan Larsson: Thank you.

Erik Petersen: Thanks, Christoffer.

Johan Larsson: Thanks, Christoffer.

Speaker #1: As a reminder, if you wish to ask a question, please dial the pound key 5 on your telephone keypad.

Operator: As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad.

Speaker #2: Okay. So.

Johan Larsson: Okay, so let's-

Operator: There are no more questions at this time, so I hand the conference back to the speakers for any written questions and closing comments.

Speaker #1: There are no more questions at this time. So, I will hand the conference back to the speakers for any written questions and closing comments.

Speaker #4: Thanks for the telephone conference questions. Now, let's move on to questions from the chat. We still have some time for that. The first question.

Erik Petersen: Thanks for the telephone conference questions. Now let's move on to questions from the chat. We still have some time for that. The first question from Staffan, Swedia Capital. You have a high cash conversions ratio for L12 of 88%. Sounds like dressing glass, why is that potentially sustainable?

Speaker #4: Staffan Svedia, Capital. You have a high cash conversion ratio for the last 12 months of 88%. That sounds like best in class. Why is that potentially sustainable?

Johan Larsson: Well, if you look at our history, self-finance growth from nothing, it stems from a group of then young guys started the company, being very poor. We take care of the pound, so to speak, and there's no reason why we shouldn't continue to have the best free cash flow in our class. We are asset light. We have low CapEx, and we take care of the cash flow on how we handle our projects and how we lead them. I'm not planning on having lower than 88% going forward. My clear wish is to be a bit better than 88%, but yeah.

Speaker #2: Well, if you look at our history, self-financed growth from nothing stems from a group of then-young guys who started the company being very poor.

Speaker #2: We take care of the pound, so to speak, and there's no reason why we shouldn't continue to have the best free cash flow in our class.

Speaker #2: We are asset-light. We have low capex, and we take care of the cash flow in how we handle our projects and how we lead them.

Speaker #2: So, I'm not planning on having lower than 88% going forward. My clear wish is to be a bit better than 88%, but yeah.

Speaker #4: Next question from Staffan Svedia: Are any of your areas of expertise relevant to delivering infrastructure for the larger projects, which has apparently moved forward?

Erik Petersen: Next question from Staffan, Swedia. Are any of your areas of expertise relevant to delivering infrastructure for the Laver projects, which has moved forward apparently? If so, which ones?

Speaker #4: If so, which ones?

Johan Larsson: Great question, Staffan, since Laver is at home for Nyab and at home for you as well, even if it's a long time since you moved from Intel. Boliden, first of all, is a trusted client of ours, a preferred client. We like to work with them when they choose us. Of course, a project like that contains a lot of earth moving infrastructure, setting things up, electricity, energy, planning, projecting and execution, I would say that our whole tablet of competencies are right for a project like that.

Speaker #2: Great question, Staffan. And since Larver is at home for Nyab and at home for you as well, even if it's been a long time since you moved from Piteå, Boliden, first of all, is a trusted client of ours—a preferred client.

Speaker #2: We like to work with them when they choose us. And, of course, a project like that, which contains a lot of earth-moving, infrastructure, setting things up, electricity, energy planning, project planning, and execution—I would say that our whole palette of competences is right for a project like that.

Speaker #4: Moving on to questions from Hans Lauge, Medium Invest OS. What insights can you provide on the Q2 gross margin, which improved year on year but declined sequentially?

Erik Petersen: Moving on to questions from Hans Laage, Medius Invest AS. What insights can you provide on the Q2 gross margin, which improved year-on-year but declined sequentially? What do you consider a sustainable gross margin run rate for H2? Can you repeat that one? You said declined subsequently.

Speaker #4: And what do you consider a sustainable gross margin run rate for H2? Can you repeat that one? Because you said it declined subsequently? Sorry, which question?

Johan Larsson: Sorry.

Erik Petersen: Next question. "What insights can you provide on the Q2 growth margin, which improved year-on-year but declined sequentially?" Sorry. Okay. "What do you consider a sustainable growth margin run rate for H2?

Speaker #4: So, what insights can you provide on the Q2 gross margin, which improved year-on-year but declined sequentially? Sorry. Okay. And what do you consider a sustainable gross margin run rate for H2?

Speaker #4: I suppose, in terms of gross margin, there are benefits of higher volumes as we move into higher production volumes, and therefore that absorbs more of the underlying cost base.

Johan Larsson: I suppose, in terms of gross margin, there is the benefits of higher volumes as we move into higher production volumes, and therefore that absorbs more of the underlying cost base. We see the gross margins that we are achieving as we are running the projects over longer periods than quarters. They can run for a year, so therefore, we expect those kind of margins to be sustained over those project periods. We have a very healthy project portfolio with good margins. So yes, I would say we see it as sustainable.

Peter Franks: I suppose, in terms of gross margin, there is the benefits of higher volumes as we move into higher production volumes, and therefore that absorbs more of the underlying cost base. We see the gross margins that we are achieving as we are running the projects over longer periods than quarters. They can run for a year, so therefore, we expect those kind of margins to be sustained over those project periods. We have a very healthy project portfolio with good margins. So yes, I would say we see it as sustainable.

Speaker #4: And we see the gross margins that we are achieving as we are running the projects over longer periods and quarters. They sort of can run for a year.

Speaker #4: And so, therefore, we expect those kinds of margins to be sustained over those project periods. We have a very healthy project portfolio, with good margins.

Speaker #4: So, yes, I would say we see it as sustainable.

Speaker #2: Yeah. And Hans Lauge is a clever guy, because if you want to know the value in your bets, you have it in the gross margin.

Erik Petersen: Yeah. Hans Lau is a clever guy because if you want to know the value in your beds, you have it in the gross margin. That tells a lot about our business. We can only say that our gross margin, if you look at last year's H2, I am quite confident from where we stand now that we will improve from that. Second question from Hans Laage. "Any update on the potential uplisting to the main market in Stockholm?

Speaker #2: That helps a lot with our business, and we can only say that our gross margin—if you look at last year's H2—I am quite confident, from where we stand now, that we will improve from that.

Speaker #4: Second question from Hans Lauge: Any update on the potential uplifting to the main market in Stockholm?

Johan Larsson: No update. As we stated early this year, they made some changes, regulatory changes, that will make buybacks possible and will make a thing like a reverse split possible. Two of the reasons why we were heading for main list. I can only say that long term, this company belongs on the main list. We have clients that we have deep collaborations with that are listed on the main list. It makes our business easier, and it makes us more attractive eventually, but no decision is made yet. So I will guess I will have to leave it at that.

Speaker #2: No update, as we stated early this year. They made some changes—regulatory changes that will make buybacks possible and will make a thing like a reverse split possible.

Speaker #2: Two of the reasons why we were heading for the Main List. I can only say that, long-term, this company belongs on the Main List.

Speaker #2: We have clients that we have deep collaborations with, that are listed on the main list. It makes our business easier, and it makes us more attractive.

Speaker #2: Eventually. But no decision has been made yet, so I guess I'll have to leave it at that.

Speaker #4: Next question comes from Carl. What needs to change for Finland to reach a 5 to 7 percent margin? And how confident are you that this is achievable?

Erik Petersen: Next question comes from Carl. "What needs to change for Finland to reach a 5% to 7% margin? How confident are you that this is achievable?

Speaker #2: Hi, Carl. Yeah, well, now they were at 3.1% if I remember correctly in Q2. And that is a semi-slow quarter. I would say that 5% to 7% is within reach.

Johan Larsson: Well, now they were at 3.1%, if I remember correctly, in Q2, and that is a semi-slow quarter. I would say that 5% to 7% is within reach. It doesn't take too much. We need growth in Finland, which we are growing at the moment. So I hope that we, on an annual yearly basis, reach that margin within the coming years at least, not to be too optimistic.

Speaker #2: It doesn't care take too much. We need growth in Finland, which we are growing at the moment. So I hope that we, on an annual yearly basis, reach that margin within the coming years at least.

Speaker #2: Not to be too optimistic.

Speaker #4: Next question comes from Axel M. Hello. Thank you for your presentation. I'm wondering if there are any new plans for expanding the data center builds.

Erik Petersen: Next question comes from Axel N. "Hello. Thank you for your presentation. I'm wondering if there are any new plans on expanding the data center build. Some new contracts in Sweden, for example. What margins are expected in data centers?

Speaker #4: Some new contracts in Sweden, for example. What margins are expected for data centers?

Speaker #2: First of all, there is a lot of activity within data centers—nothing new. We won our first data center contract this year, and we are moving forward with that.

Johan Larsson: First of all, there is a lot of activity within data centers. Nothing new. We won our first data center contract this year. We are moving forward with that. I can't disclose too much about the future, but I can say that we are interested in more contracts. We are a reliable partner, and are viewed as a reliable partner. So when a new contract for a data center is signed, it will of course be announced. When it comes to the margins, I would say that they are slightly better than the average business due to first the need, and you build something that has such a high value for the client that they can value quality and time higher than money.

Speaker #2: I can't disclose too much about the future, but I can say that we are interested in more contracts. We are a reliable partner, and our view is that a reliable partner is essential.

Speaker #2: So, when a new contract for a data center is signed, it will of course be announced. And when it comes to the margins, I would say that they are slightly better than the average business due to, first, the need, and you build something that has such a high value for the client.

Speaker #2: That they can value quality and time higher than money.

Speaker #4: Moving on to a question from Lucas: Has the large growth in recent years been easy to implement? For instance, with newly hired project managers working with contractors you might not have worked with before.

Erik Petersen: Moving on to a question from Lucas. "Has the large growth in last years been easy to implement? For instance, newly hired product managers working with contractors you might not have worked with before.

Speaker #2: Easy to implement. I mean, we are a growth company, and we are ready for growth. That's what we know when we handle it. There are always complications, no matter what.

Johan Larsson: Easy to implement. We are a growth company, and we are rigged for growth. That is what we know, and we handle it. There are always complications no matter what. If you stand still, you have other complications, such as your key personnel cannot grow within the company and such, or your most trusted partners cannot gain volumes with you because you are not growing, and you will have problems to hire the best subcontractors and such. It is a lot of parameters, but I would say that we have everything in control. Worth mentioning and related to this is that we do not have to invest in new equipment. We do not have to hire more blue collars while we grow due to our business model. With that said, only approximately 30% of our total volume has a price risk.

Speaker #2: If you stand still, you have other complications, such as your key personnel can't grow within the company and such, or your most trusted partners can't gain volumes with you because you are not growing, and you will have problems hiring the best subcontractors and such.

Speaker #2: So, it's a lot of parameters, but I would say that we have everything under control. Worth mentioning, and related to this, is that we don't have to invest in new equipment.

Johan Larsson: It is a lot of parameters, but I would say that we have everything in control. Worth mentioning and related to this is that we do not have to invest in new equipment. We do not have to hire more blue collars while we grow due to our business model. With that said, only approximately 30% of our total volume has a price risk. The other 70% is Consulting by the hour, it is collaborative contracts, and it is frame agreements and such that does not carry a price risk.

Speaker #2: We don't have to hire more blue-collar workers while we grow, due to our business model. So with that said, only approximately 30% of our total volume has a price risk.

Speaker #2: The other 70% is consultancy by the hour. It's collaborative contracts, and it's framework agreements, and such. That doesn't carry a price risk.

Johan Larsson: The other 70% is Consulting by the hour, it is collaborative contracts, and it is frame agreements and such that does not carry a price risk.

Speaker #4: And we move to the last question for the Q&A session, coming from Johan. Have you considered reporting to the SEC?

Erik Petersen: We move to the last question for the Q&A session coming from Johan. Have you considered reporting in SEK?

Speaker #2: Yeah, I have considered it, and we have had discussions about it. No decision has been made. Of course, it has a few parameters to take into consideration.

Johan Larsson: Well, I have considered it and we have had discussions about it. No decision made. Of course, it has a few parameters to take into consideration. First of all, we are more Nordic now since we divested our Canadian business and our small American business as well. So we will have to get back with something firm. But it has some values to have a stronger and bigger currency, but it also has an uncertainty in the exchange ratio that moves.

Speaker #2: First of all, we are more Nordic now since we divested our Canadian business and our small American business as well. So we will have to get back with something firm, but of course, it has some value to have a stronger and bigger currency.

Speaker #2: But it also has an uncertainty in the exchange ratio. That moves.

Speaker #4: Thank you for that. With that, we conclude the Q&A session. Nyab will release its interim report for the third quarter of 2026 on November 4.

Erik Petersen: Thank you for that. With that, we end the Q&A session. Nyab will release its interim report for Q3 2026 on 4 November. For now, we thank everyone for participating and see you again next time. Thank you very much.

Speaker #4: For now, we thank everyone for participating, and see you again next time.

Speaker #1: Thank you very much.

Peter Franks: Thank you very much.

Johan Larsson: Thank you.

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Q2 2026 Nyab AB (publ) Earnings Call

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