JM (JM) Q3 2024 earnings summary

Executive summary

• Revenue for Jan–Sep 2024 decreased to SEK 9,132m from SEK 10,444m year-over-year, with operating profit down to SEK 424m from SEK 822m and EPS at SEK 3.00 compared to SEK 8.90.

• Number of residential units sold rose to 2,204 from 1,128, and housing starts increased to 1,504 from 869.

• Cash flow from operations improved to SEK 132m from SEK -452m, and return on equity dropped to 0.60% from 13.50%.

• The company is adapting to a cautious market, focusing on liquidity and operational efficiency, and has postponed plans for an extra dividend.

• Market recovery is expected to be gradual, dependent on further interest rate cuts to boost consumer buying power.

Financial highlights

• IFRS revenue for Jan–Sep 2024 was SEK 10,271m, down from SEK 12,528m; IFRS EPS was SEK 3.90, down from SEK 16.50.

• Operating margin for the nine months was 4.6% (7.9%); Q3 margin was 3.8% (5.1%).

• Cash and cash equivalents at period end were SEK 465m, with available liquidity of SEK 3,615m.

• Equity/assets ratio improved to 55% from 53%.

• Interest-bearing net liabilities at period end were SEK 1,856m (1,587m); debt/equity ratio was 0.2.

Outlook and guidance

• Sales in Q3 were seasonally lower than Q2 but significantly higher than Q3 last year, supporting increased housing starts.

• Share of sold/reserved residential units in current production reached 61%, within the normal range of 60–65%.

• Customers' willingness to sign contracts early has improved gradually during the year.

• No extra dividend will be proposed for 2023 due to the slow recovery in the new production housing market.

• Operational focus remains on liquidity, cost control, and readiness to capitalize on future opportunities.