JM (JM) Q4 2025 earnings summary

Executive summary

• Revenue and profit declined year-over-year due to lower completion rates, fewer sold commercial projects, and impairments in development properties.

• Housing starts increased, but residential unit sales decreased, reflecting ongoing market caution despite some improvement in consumer confidence.

• Profitability measures included organizational restructuring, divestment of contracting operations, and cost-reduction initiatives.

• Fewer completed unsold residential units and a well-balanced risk profile.

• The Board proposes a reduced dividend of SEK 2.00 (3.25) per share.

Financial highlights

• Full-year revenue: SEK 9,981m (12,507m), Q4 revenue: SEK 2,766m (3,375m); both declined year-over-year.

• Full-year operating profit: SEK 297m (531m), Q4 operating profit: SEK -8m (107m); operating margin: 3.0% (4.2%).

• Earnings per share: SEK 0.97 (3.83) for the year; Q4: SEK -0.32 (0.86).

• Cash flow from operating activities improved to SEK 74m (-268m) for the year and SEK 467m (-401m) in Q4.

• Surplus value of development properties: SEK 5.0bn (5.2bn).

Outlook and guidance

• Cautious optimism for 2026 amid ongoing geopolitical uncertainty impacting customers.

• Signs of market improvement with increased housing starts and expectations of higher housing prices in 2026.

• Expectation of increased net sales in Norway due to recent acquisitions, projected at close to SEK 1,000m per year over seven years.

• Continued focus on cost reduction, operational efficiency, and sustainability.

• Well-positioned for a potential market recovery, supported by a strong financial position and unutilized credit facilities.