JM (JM) Q4 2024 earnings summary

Executive summary

• Gradual recovery observed across all markets, supported by a strong land bank and competitive production costs.

• Revenue for 2024 was SEK 12,507m (13,851), with operating profit at SEK 531m (732) and profit after tax at SEK 246m (433), reflecting a challenging market but improved sales and housing starts year-over-year.

• The number of residential units sold rose to 2,778 (1,901) and housing starts to 2,237 (1,609), indicating progress toward the goal of 3,800 annual starts.

• Board proposes a dividend of SEK 3.25 (3.00) per share for 2024.

• Market conditions showed signs of recovery, especially in Sweden and Norway, though price levels and margins remain under pressure.

Financial highlights

• Revenue decreased to SEK 12,507m (13,851) for Jan–Dec 2024; IFRS revenue SEK 14,272m (15,969).

• Operating income fell to SEK 531m (732), with an operating margin of 4.2% (5.3).

• Pre-tax profit declined to SEK 403m (632); EPS SEK 3.83 (6.72), IFRS EPS SEK 5.48 (15.95).

• Return on equity at 2.9% (5.0); cash flow from operations at SEK -268m (-48).

• Impairments in development and project properties totaled SEK 72m, mainly in Stockholm's outer suburbs.

Outlook and guidance

• Margins expected to remain under pressure in 2025 due to continued low housing prices and high costs.

• Gradual recovery expected in all markets in 2025, with a focus on operational streamlining and maintaining a strong customer offer.

• The company aims to approach 3,800 housing starts per year.

• Long-term market fundamentals considered strong, with gradual improvement anticipated.