ByggPartner Gruppen (BYGGP) Q2 2024 earnings summary

Executive summary

• Profitability improved in Q2 2024, with positive operating cash flow and a strengthened financial position, supported by a strong project pipeline and selective project intake.

• Increased demand for collaborative contracting and early-stage project planning, especially in public and residential sectors.

• All segments contributed to stable revenue, with ByggPartner and Åhlin & Ekeroth showing improved margins, while Flodéns is still in turnaround.

Financial highlights

• Q2 2024 net sales were 1,275 MSEK (1,281 MSEK in Q2 2023); EBITDA was 45 MSEK (3.5% margin), up from 29 MSEK (2.2%); EBIT was 24 MSEK (1.9% margin), up from 8 MSEK (0.6%).

• Net income after tax was 22 MSEK (3 MSEK); EPS was 0.49 (0.12); operating cash flow was 21 MSEK, a significant improvement from -126 MSEK.

• Net cash position (excl. IFRS 16) improved to -146 MSEK from -431 MSEK; equity ratio at period end was 27.1%, up from 8.0%.

• H1 2024 net sales were 2,421 MSEK (2,419 MSEK); EBITDA was 81 MSEK (-155 MSEK), margin 3.4% (-6.4%); EBIT was 40 MSEK (-196 MSEK), margin 1.7% (-8.1%).

• Order intake in Q2 was 941 MSEK (1,331 MSEK); order backlog at period end was 4,744 MSEK, up from 3,987 MSEK in Q2 2023.

Outlook and guidance

• Management expects continued focus on profitable project selection and risk management, with a strong pipeline of early-phase collaboration projects supporting 2025.

• Flodéns is expected to return to positive results in 2025 after resolving legacy projects.

• Selective approach to new projects and a high share of collaborative projects are expected to lower risk.

• Leading position in timber construction and strong project pipeline support continued margin improvement.