JM (JM) Q2 2024 earnings summary

Executive summary

• Revenue for January–June 2024 was SEK 6,617m, down from SEK 7,598m year-over-year, with operating profit at SEK 329m versus SEK 676m and EPS at SEK 2.40 compared to SEK 7.50.

• Sales and housing starts increased, especially in Sweden and Finland, despite a cautious market and lower production.

• Q2 2024 saw improved sales and cash flow, with cash flow from operations at SEK -285m, up from SEK -351m year-over-year.

• Market conditions remain cautious with high supply and limited consumer buying power, but expectations of interest rate cuts support gradual improvement.

• Sustainability efforts were recognized, including emission reductions and industry awards.

Financial highlights

• Operating margin for H1 2024 was 5.0% (down from 8.9%).

• Return on equity dropped to 1.1% from 16.4% year-over-year.

• According to IFRS, H1 revenue was SEK 7,432m (down from SEK 8,071m) and EPS was SEK 3.30 (down from SEK 10.80).

• Equity/assets ratio was 55% (up from 53%), with available liquidity of SEK 3,267m and cash of SEK 417m.

• Interest-bearing net liabilities increased to SEK 2,151m (1,498).

Outlook and guidance

• Market recovery is expected to be gradual, with further improvement tied to additional interest rate cuts and increased consumer buying power.

• Cautious housing market persists, but customer willingness to sign early contracts has slightly increased in Stockholm.

• The company is adapting to prevailing market conditions and maintains a well-balanced risk profile.

• Price increases in existing home markets are anticipated to continue in H2 2024, but new production remains exposed to consumer financial strain.