JM (JM) CMD 2025 summary

Strategic direction and market outlook

• New strategy emphasizes operational efficiency, cost reduction, standardization, and customer focus, with a broader offering and continuous development across Sweden, Norway, and Finland.

• Growth target is 3,800 housing starts by 2028, with 4% annual growth and a 12% operating margin; return metric shifted to over 20% return on capital employed.

• Market conditions remain challenging, but forecasts are more optimistic for 2026, with signs of recovery and a 13% increase in housing starts expected by 2027.

• Sustainability target is an 85% reduction in emissions by 2030, with a continued dividend policy of 50% of profit and a debt ratio under 0.5.

• Organizational changes include merging business units and strategic reviews to boost profitability and accelerate timelines.

Operational initiatives and productivity

• Productivity Boost initiative targets SEK 250,000 cost savings per unit by 2026–2030, through standardization, lean design, and digitalization.

• Lead times and production times have been reduced by over 30% since 2019, strengthening resilience and offsetting cost inflation.

• Digitalization and internal design departments are key enablers for efficiency and cost control.

• Cost savings are expected to gradually improve margins, with full impact visible in projects starting 2027 and beyond.

• Further cost reduction potential exists beyond 2026, with ongoing focus on eliminating waste and increasing standardization.

Portfolio management and growth

• Active management of the building rights portfolio includes trading, selling, and converting land to optimize capital turnover and profitability.

• Focus on expanding the addressable market by introducing senior housing, rentals, care homes, co-living, student housing, and single-family houses across all regions.

• Senior housing and rental segments are key growth areas, with demographic trends supporting long-term demand, especially in Norway and Finland.

• Land bank of 36,000 building rights provides flexibility, with ongoing optimization to ensure the right mix for future growth.

• Value is driven from land acquisition through to property management, emphasizing structured project development and digitalization.