Selvaag Bolig (SBO) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 sales of NOK 1.2bn, the highest Q1 since 2022, with a robust order backlog over NOK 7bn and more than 1,000 units under construction at quarter end.

• Delivered 34 units in Q1 2025, down from 179 in Q1 2024, leading to lower revenues and EPS.

• Inventory of completed units reduced by NOK 500m year-over-year; construction started on 183 units during the quarter.

• Net sales value rose to NOK 1,038 million, with 169 units sold in Q1 2025.

• Order backlog and land bank strengthened, positioning for future growth.

Financial highlights

• Proforma operating revenues (IFRS) were NOK 194m in Q1 2025, down from NOK 868m in Q1 2024; adjusted EBITDA was NOK -8m (Q1 2024: NOK 134m), and EBITDA NOK -25m (Q1 2024: NOK 78m).

• Operating revenues fell to NOK 167m from NOK 628m year-over-year; adjusted EBITDA was NOK -19m (Q1 2024: NOK 106m).

• EPS for the quarter was NOK -0.22, compared to NOK 0.60 in Q1 2024.

• Cash flow from operations was negative NOK 1,039m, mainly due to increased inventories; cash flow from financing activities was positive NOK 1,004m, driven by new construction loans.

• Net income was NOK -21m, down from NOK 56m year-over-year.

Outlook and guidance

• Housing shortages in all core regions are expected to support favorable conditions for new housing.

• Anticipates increased purchasing power and improved sales as interest rates trend down.

• 85% of 2025 completions already sold; 18 units expected to be completed in Q2 2025, 393 for the full year.

• Company plans more sales starts and new project launches in line with market demand.

• Plans to increase the number of homes under construction, leveraging a robust land portfolio and strong land purchasing capacity.