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How Investors May Respond To NCC (OM:NCC B) Winning SEK 160m Climate-Focused Road Maintenance Contracts

Simply Wall St · 2d ago
  • NCC has signed contracts with the Swedish Transport Administration for approximately SEK 160,000,000 of road surface maintenance over three years in southwestern Sweden, covering about 200 kilometers of roads and supplying asphalt from its Halmstad and Borås plants.
  • A key feature of these contracts is the requirement for plant-specific environmental product declarations, highlighting NCC’s focus on quantified climate impact, which currently covers about 93% of its Swedish asphalt plants.
  • Next, we’ll examine how these SEK 160,000,000 multi-year, sustainability-focused road contracts could influence NCC’s existing investment narrative.

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NCC Investment Narrative Recap

To own NCC, I think you need to believe in a steady, contract driven Nordic construction and infrastructure business with a clear sustainability focus. The new SEK 160,000,000 Swedish road contracts modestly reinforce that narrative and slightly support the near term earnings catalyst in NCC Industry, but they do not fundamentally change the biggest current risk around a muted property transaction market and uncertain timing for any potential Industry divestment.

Among recent announcements, the SEK 2,370,000,000 office and laboratory project in Denmark stands out alongside these road contracts, as both highlight NCC’s exposure to long duration public and quasi public projects. Together, they tie directly into the key catalysts of a solid balance sheet supporting selective growth and infrastructure exposure, while also reminding investors that project execution and pricing pressure from smaller competitors remain central points to monitor.

However, investors should also be aware that if the muted property transaction market persists and NCC cannot realize expected outcomes from its Property Development unit, then...

Read the full narrative on NCC (it's free!)

NCC's narrative projects SEK61.6 billion revenue and SEK1.5 billion earnings by 2028. This implies a 0.7% yearly revenue decline, with earnings expected to remain flat at SEK1.5 billion from today’s level.

Uncover how NCC's forecasts yield a SEK227.50 fair value, in line with its current price.

Exploring Other Perspectives

OM:NCC B 1-Year Stock Price Chart
OM:NCC B 1-Year Stock Price Chart

Five members of the Simply Wall St Community currently see NCC’s fair value anywhere between SEK 132.53 and SEK 2,631.96, highlighting sharply different expectations. When you set those views against NCC’s reliance on multi year public infrastructure contracts as a key earnings driver, it becomes even more important to compare several perspectives before forming a view on the company.

Explore 5 other fair value estimates on NCC - why the stock might be a potential multi-bagger!

Build Your Own NCC Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your NCC research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
  • Our free NCC research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate NCC's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.