HusCompagniet (HUSCO) Q3 2025 TU earnings summary

Executive summary

• Revenue for the first nine months of 2025 grew 31% year-over-year to DKK 2,167 million, driven by all business segments, especially Detached and Semi-detached.

• Earnings guidance was adjusted downward due to write-downs on three B2B projects, negative effects from HC Elements projects, and delays in B2B project starts from late building permits.

• Net order backlog increased 57% year-over-year to DKK 2.2 billion, reflecting continued sales momentum.

• Initiatives are underway to improve Semi-detached performance, with a focus on margin improvement.

• Detached segment showed strong growth and resilience despite declining consumer confidence, while Semi-detached faced challenges due to underperforming B2B and HC Elements projects.

Financial highlights

• Q3 2025 revenue grew to DKK 792 million, up from DKK 588 million in Q3 2024, driven by higher activity and more deliveries.

• Gross profit for Q3 2025 was DKK 110 million (13.9% margin), down from DKK 119 million (20.2%) in Q3 2024, mainly due to Semi-detached write-downs.

• Q3 2025 EBITDA was DKK 8 million (0.9% margin), down from DKK 32 million (5.5%) last year; EBIT was -DKK 4 million, down from DKK 20 million.

• Free cash flow for 9M 2025 was DKK -26 million, compared to DKK 126 million in 9M 2024.

• Net interest-bearing debt at end-September was DKK 309 million, with leverage ratio at 4.4x, up from 2.6x a year earlier.

Outlook and guidance

• Full-year 2025 guidance reiterated: revenue DKK 2.9–3.1 billion, EBITDA DKK 60–80 million, EBIT DKK 15–35 million.

• Expected deliveries for 2025 are around 1,000 houses, down from previous guidance of 1,000–1,100.

• Dividend distribution suspended for 2025, with reintroduction expected when leverage falls below the long-term target.

• Negative impact from B2B project write-downs expected to affect earnings in 2026 and H1 2027, with the most significant impact in 2026.

• Targeting 8–10% EBITDA margin long-term, but not expected until after problematic B2B projects are completed (post-2027).