<a id="bm-comp-38860fde-e196-4c5f-89a5-6f225df19b68" name="bm-comp-38860fde-e196-4c5f-89a5-6f225df19b68" class="BMCustomAnchor"></a><table><tr><td bm-component-id="38860fde-e196-4c5f-89a5-6f225df19b68" style="vertical-align: top; width:100.000000%;"><ul><li>We leave estimates relatively unchanged after Q3...</li><li>...but are more confident in 2025e growth (EBITA +31%)</li><li>Share is trading at 12-10x EV/EBITA on '25e-'26e</li></ul></td></tr></table><a id="bm-comp-4ecb5327-3473-44f5-8e6d-009baf22fb82" name="bm-comp-4ecb5327-3473-44f5-8e6d-009baf22fb82" class="BMCustomAnchor"></a><table><tr><td bm-component-id="4ecb5327-3473-44f5-8e6d-009baf22fb82" style="vertical-align: top; width:100.000000%;"><h3 class="bm-h3">Margin improvements and record order backlog</h3><p>NYAB continued to deliver on the expected margin improvements in Q3, leading to EBITA growth of 27% y-o-y with the margin increasing to 10% (8%). Sales growth was somewhat lower than expected (6% y-o-y), but still constituted an acceleration from last year when sales growth was flat in Q3. And with strong growth in the order backlog (108% y-o-y), now at EUR 382m, we feel confident in our sales estimate of EUR 366m for 2025e (13% y-o-y). With a positive margin trajectory as well, we predict 31% EBITA growth in 2025e. Moreover, with NYAB's most important customer, Svenska Kraftnät, expecting to triple its annual investments between 2024 and 2029, we see potential for NYAB to maintain strong earnings growth in the coming years as well.</p><h3 class="bm-h3">Limited estimate changes</h3><p>We make limited estimate changes on the back of Q3, cutting sales by 3-2% for '24e-'26e on the slightly weaker Q3 figure. That said, the stronger profitability offsets the lower sales, resulting in unchanged EBITA for 2024e while we cut '25e-'26e by 2%.</p><h3 class="bm-h3">Well-positioned to capitalise on positive market trends</h3><p>We expect NYAB's quarterly growth to remain volatile due to timing of project starts and completions. But on an LTM basis, we expect earnings growth to remain strong, within a range of 10-30% in the coming quarters. Moreover, the company remains flexible with its net cash position, allowing it to act swiftly if opportunities arise as the macroeconomic environment is turning more positive (subdued inflation and lower interest rates). The share is trading at 12-10x EV/EBITA on our updated estimates for 2025e-2026e.</p></td></tr></table>