HusCompagniet (HUSCO) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 revenue was DKK 588m, up 3% year-over-year, with gross profit rising to DKK 126m and margin improving to 21.4%.

• Year-to-date (Q1–Q3 2024) revenue declined 11% to DKK 1,650m, but gross margin improved to 22.7% from 21.0%.

• Sales activity increased, with YTD house sales up 38% to 881 units, driven by detached and semi-detached segments.

• Net order backlog increased 29% to DKK 1,413m, reflecting improved sales momentum.

• Deliveries remained impacted by low 2023 sales, with YTD 2024 deliveries down 37%.

Financial highlights

• Q3 2024 EBITDA was DKK 32m (margin 5.5%), nearly flat year-over-year; free cash flow was DKK -4m, down from DKK 56m.

• Q1–Q3 2024 EBITDA was DKK 77m (margin 4.7%), down from DKK 91m; EBIT was DKK 41m, down 28% due to higher depreciations.

• Free cash flow for Q1–Q3 was DKK 126m, down 12% year-over-year.

• Available cash including RCF increased 46% to DKK 577m; net interest-bearing debt fell 44% to DKK 245m.

• Gearing/leverage ratio improved to 2.6x from 3.1x year-over-year.

Outlook and guidance

• 2024 revenue guidance maintained at DKK 2.3–2.4bn; EBITDA narrowed to DKK 95–115m (from DKK 90–120m); EBIT to DKK 45–65m (from DKK 40–70m).

• Expected 2024 deliveries revised to 850–900 houses (from 850–950).

• Dividend distribution suspended for 2024, with reintroduction planned once leverage targets are met.

• Guidance assumes no major supply chain disruptions or significant raw material price increases.