Should Major Nordic Contracts Spur Action From NCC (OM:NCC B) Investors?

• In October 2025, NCC announced it had secured several major construction contracts in Finland and Sweden, including a SEK 1.7 billion order for the Oulu University Hospital and additional SEK 200 million projects with LKAB and Stockholm Stads Parkerings AB.
• These new contracts highlight NCC's strong presence in public infrastructure and expand its workload across healthcare, industrial, and urban mobility sectors in the Nordic region.
• We'll assess how these substantial new hospital and infrastructure contracts could influence NCC's investment narrative and future growth expectations.

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NCC Investment Narrative Recap

To be a shareholder in NCC, I believe you need confidence in the company's ability to consistently secure major infrastructure contracts and maintain solid execution in the Nordic region. The recent SEK 1.7 billion Oulu University Hospital contract and additional SEK 200 million orders strengthen NCC’s order book, but do not materially shift the short-term catalyst, which remains the company’s financial flexibility and potential for margin improvement. The biggest risk right now is continued weakness in the property transaction market, which could mute earnings growth if the Property Development unit fails to recognize new sales.

Of this month’s announcements, the Oulu University Hospital project is most relevant: it demonstrates NCC’s expertise in healthcare infrastructure and suggests ongoing demand in essential public works, supporting the existing catalyst, its robust balance sheet and potential for selective M&A, which could drive future earnings. Still, this news does little to offset risks tied to slow property sales or sustained pricing pressure in its core markets.

But while NCC’s new contracts make headlines, investors should be aware that...

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 requires a 0.7% annual revenue decline and flat earnings compared to current earnings of SEK1.5 billion.

Uncover how NCC's forecasts yield a SEK200.00 fair value, a 5% downside to its current price.

Exploring Other Perspectives

Community fair value estimates for NCC range widely from SEK132.53 to SEK2,631.96, based on five individual Simply Wall St Community views. Many see opportunity given NCC’s strong balance sheet, though a muted property transaction market could weigh on results, explore these different outlooks for fresh perspectives.

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.

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