ALM Equity (ALM) Q1 2025 earnings summary

Executive summary

• Net sales increased to SEK 278m in Q1 2025 from SEK 241m in Q1 2024, with a reduced net loss of SEK -163m compared to SEK -276m year-over-year, mainly due to lower unrealized value changes and reduced financial costs.

• Strong liquidity position and reduced bond debt following early redemption and refinancing activities.

• High activity in project initiations, with 223 external homes started in Jakobsberg and ongoing conversion of 500 homes in Solna.

• Strategic focus on executing the business plan and affordable housing, despite a challenging market environment.

• No significant events after the end of the quarter.

Financial highlights

• Net sales: SEK 278m (Q1 2025) vs SEK 241m (Q1 2024); full year 2024: SEK 3,127m.

• Net loss: SEK -163m (Q1 2025) vs SEK -276m (Q1 2024); full year 2024: SEK -1,100m.

• Return on equity: -8% (Q1 2025) vs -16% (Q1 2024).

• Equity ratio improved to 54% (Q1 2025) from 35% (Q1 2024).

• Cash and cash equivalents: SEK 1,083m (Q1 2025) vs SEK 316m (Q1 2024).

Segment performance

• Project development: 20 homes sold from conversion projects and 5 from ALM Småa Bostad; 2,344 building rights as of Q1 2025.

• Construction: 223 units started externally, order intake SEK 325m, order backlog SEK 787m.

• Property management: Rental value SEK 345m, property value SEK 6,230m, net operating income SEK 59m, occupancy rate 88%.

• Financial assets: Klövern stake diluted to 15% after not participating in a new share issue; Besqab stake at 14%.

• Gross profit from contracting: SEK 11m; development operations impacted gross profit by SEK -7m due to no ongoing projects.