Besqab (BESQAB) Q1 2025 earnings summary

Executive summary

• Net sales reached 512 Mkr in Q1 2025, with a gross profit of 92 Mkr and a gross margin of 18%.

• 221 homes were sold or reserved, with 80% of homes in ongoing production sold or reserved.

• Integration with Aros Bostad is nearing completion, and preparations for a main market listing on Nasdaq Stockholm are underway.

• Two new residential projects started production, adding 104 homes.

• The company maintains a strong land bank with 6,996 building rights across 71 projects in 22 municipalities.

Financial highlights

• Net sales for Q1 2025 were 512 Mkr, with a gross margin of 18% and operating profit of 30 Mkr, corresponding to an operating margin of 6%.

• Cash position at quarter-end was 338 Mkr (IFRS) and 275.1 Mkr (segments).

• Solid equity ratio of 55% (IFRS), with total equity of approximately 3.1 billion SEK.

• Cash flow from operations was SEK -99.4m (segments) and SEK -225.9m (IFRS).

• Net profit for the quarter was SEK 15.0m (segments), with EPS SEK 0.14.

Outlook and guidance

• Real wage growth and expected interest rate cuts are seen as positive for the business.

• Underlying demand for new homes in Stockholm and Uppsala remains strong.

• Target to maintain at least 2,000 homes in ongoing production by 2027.

• The plan to realize synergies from the recent merger remains on track.

• No significant events after the reporting period.