Bonava (BONAV) CMD 2025 summary

Strategic direction and business model

• Transitioned to a decentralized operating model, empowering regional units and reducing costs for scalability and profitability.

• Exited non-core markets and divested assets to focus on core growth regions, improving balance sheet strength.

• Maintains a strong land bank of 25,900 building rights, supporting SEK 60 billion in potential revenue and 3-4 years of production.

• Controlled growth phase initiated, prioritizing project starts only when sales, costs, and team criteria are met.

• Focus on profitability over volume, with a laser-sharp approach to margin improvement.

Financial guidance and targets

• Financial targets remain unchanged: operating EBIT margin above 10% by 2026, return on equity at least 15% over time, and 40% net profit distribution.

• Income statement targets now based on the percentage of completion (PoC) method, enhancing transparency and predictability.

• Net debt reduced from SEK 8 billion to SEK 3 billion, with further cost and debt discipline planned.

• SG&A expected to remain around 5% of net sales over the long term, with gross margin needing to be at least 15% to meet EBIT targets.

• 2025 is expected to be a transition year, with optimal volume and profitability reached in 2026.

Market outlook and business unit updates

• Germany: Streamlined organization, mature land bank secures business for 2-3 years, and several projects with 15-20% margins are ready to launch.

• Finland: Leaner operations, increased market activity, and new projects targeting 16-26% margins.

• Sweden: Volumes increasing from a low base, planning 16 new sale starts in 2025, with a focus on consumer sales and margin improvement.

• Baltics: Maintained production and profitability, leading positions in capital cities, and expansion in the rental segment with BREEAM-certified projects.

• All units prioritize project starts, with strict margin discipline and selective land investments.