Good morning, everybody, and welc ome to this call regarding the information in the press statement that we sent out earlier this morning. And the subject is the impairment charges of approximately SEK 1.4 billion that NCC will do for the fourth quarter of 2025. And it's in connection with the year that we were working with, the year-end result of the last year, that we've come to the conclusion that we need to reevaluate mainly property values in the business area, Property Development. But also remaining portion of tax, the value of tax assets in Norway, following changed principles for how to valuate that.
In brief, the background is that the commercial property market has been weak during a long time, and we've not seen a recovery on the back of the lowering interest rates over the last couple of years. We see few signs of improvement and lots of uncertainty when it comes to both transaction and the letting market. We have made this review in the connection to the year-end closing process. We think this is important because it, which will create better conditions for sales of the projects in the relative near term. I think there's a couple of things that's important to highlight. One is that it has no cash flow impact whatsoever, which means that, in terms of cash flow, debt, that type of balance sheet items, it's no change.
It does not impact NCC's ability to pay dividends, which I think is important to highlight as well. And then, finally, it has no relation to any part of the operations within contracting or the Industry business area, i.e., we have not revised the project forecasts for projects in connection to this. Which means that there will be no future dilution of project earnings as a result of this impairment. Also, with excluding the extraordinary cost in connection with the impairment, we had strong underlying earnings in the fourth quarter. We have a net income of SEK 15,929 million, and earnings in terms of EBIT of SEK 692 million. All contracting business areas reported stable and improving results.
Industry business area has continued the trend that we've seen during the year, and has once again record earnings in the quarter. We have good orders received in the quarter, and we continue to see lots of early-phase collaboration contracts on a very high level. And with that, operator, I hand over to open up for questions.
Thank you, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on the telephone. You will hear a tone to confirm that you've entered the queue. If you wish to remove yourself from the question queue, you may press star and two. Questioners on the phone are requested to disable the loudspeaker mode while asking a question. Anyone with a question may press star and one at this time. Our first question comes from Kaveh Shirvanpour from SEB. Please go ahead.
Good morning. I have a couple of questions, and the first is: could you maybe clarify which properties that you have written down the values of on, and maybe to what extent on a property basis?
I understand that that's interesting, but, for commercial reasons, we do not specify property values on individual properties, as well as we will not specify which, where we've done, impairments.
Okay. And then my second question is: would you say that the write-downs have been partly carried out to reflect the levels at which you have had potential discussion with buyers, since you mentioned that this affects the condition for your near-term prospects?
There are several el-
Thank you for addressing.
No, I understand the question, Keivan. There are several elements related to the impairment, and that's one part, but there are other elements. So we've done, you know, we've had multiple angles on how to approach it this to find a fair value.
Okay. And then I ask you one final question, and that is, the Q4 earnings. Could you maybe give some more details on the earnings themselves, and do they include any type of significant one-offs?
Well, the earnings for the quarter they are not totally finalized. This is preliminary numbers, but we have improvements in all business areas. And they have, you know, one-offs and project adjustments on a pretty normal level. It's
Okay.
Very much business as usual on for those.
Okay, good. Thanks. Those were my questions.
Once again, to ask a question, please press star followed by one. Sir, so far there are no further questions from the phone.
All right, if there are no further questions, thank you for listening in, and we will.
Sorry to in-
Yeah?
Sorry, sir, to interrupt you. We have a last-second registration from Mr. Stefan Andersson from Danske Bank.
Very good. He's welcome.
Go ahead.
Thank you.
Mr. Andersson, your line is open.
Yeah, thank you, since there's time. Just a little bit curious on the strategic overview of the industry division. Since you're not announcing anything, I'm sure you can't say anything, but could you maybe indicate a little bit on where you are in the process, and when we could expect some kind of comments from you on that?
It's ongoing, but we are evaluating several different options on how to proceed, and I expect that we will, in the relatively near term, announce something. That's my, that's my, expectation right now.
Perfect. Thanks.
For any further question, please press star followed by one. It seems that there are no further questions, sir.
If no further questions, thank you very much, and we will report the numbers for the fourth quarter on the fifth of February, and it will be released at 7:10 A.M. Thank you all. Have a continuous good day.