NCC Classifies Industry as a Discontinued Operation Under IFRS 5

NCC classified Industry as a discontinued operation under IFRS 5 for the third quarter after agreeing to sell the business, while its head office move is expected to save SEK 50 million annually from 2028.

NCC released its third-quarter results Nov. 3 at 1:10 a.m. ET (06:10 UTC). The results cover July through September and the first nine months of 2026. Industry includes asphalt and stone materials operations. The classification presents the business separately from continuing operations, but Industry remains part of NCC until the sale closes. NCC will continue recognizing the unit’s earnings and cash flow through closing.

The binding sale agreement divides the business by country. Heidelberg Materials will acquire operations in Sweden and Norway, while CRH will take operations in Denmark and Finland. The transaction’s enterprise value is SEK 8.2 billion, and NCC expects about SEK 7 billion in positive cash flow at completion. NCC targets a close in the second half of 2027, pending regulatory approval. President and CEO Tomas Carlsson called the deal an “important step toward a more focused NCC, built around contracting.”

Third-quarter net sales from continuing operations totaled SEK 10.066 billion; operating profit before items affecting comparability was SEK 290 million. With Industry included, third-quarter net sales totaled SEK 14.340 billion, and operating profit before items affecting comparability was SEK 831 million. The higher totals include the business classified separately as discontinued; the continuing-operations figures exclude it.

Separately, NCC plans to move its head office from Solna to the Hangar 5 complex in Bromma in the third quarter of 2027. The new office is expected to cover about 8,000 square meters, compared with about 16,000 square meters at the current premises. NCC estimates savings of about SEK 25 million during 2027 and about SEK 50 million per year from 2028.

The Solna lease runs through the end of the third quarter of 2029. NCC will record a SEK 198 million noncash item in its third-quarter 2026 results for its remaining lease commitment. The item affects comparability but has no cash-flow impact.