Bonava (BONAV) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw improved market conditions, higher disposable income, lower interest rates, and strong demand, resulting in increased sales and project starts, with 589 units sold and 481 units started year-over-year.

• Operating EBIT margin improved to 4.0% from 1.4% in Q1 2024, with net sales at SEK 1,608M and a positive shift in operating cash flow.

• Decentralized organization, cost adjustments, and a robust building rights portfolio support controlled growth and market adaptability.

• No visible impact from global market volatility on consumer demand; investor interest in rental housing remains steady.

• Significant refinancing of SEK 960M green bond extended maturity, reduced costs, and improved financial flexibility.

Financial highlights

• Sales rate in ongoing production rose to 66%, the highest in years, with net sales at SEK 1,608M (1,650M Q1 2024).

• Operating EBIT was SEK 65M (24M Q1 2024), and EBIT margin increased to 4.0% (1.4%).

• Operating cash flow turned positive at SEK 280M, compared to -SEK 207M in Q1 2024.

• Net debt remained stable at SEK 3,058M (4,282M Q1 2024), with available liquidity of SEK 1.6B.

• Equity/assets ratio at 41.4% (38.7% Q1 2024), well above the 30% target.

Outlook and guidance

• Guidance for 2025 EBIT margin maintained at 5%-6%, aiming for at least 10% in 2026.

• Controlled growth strategy continues, with project starts aligned to sales rates and a strong project pipeline.

• Targets for return on equity and dividend anticipated to be met in 2027–2028.