Selvaag Bolig (SBO) Q3 2024 earnings summary

Executive summary

• Sold 100 homes valued at NOK 679m in Q3 2024; 446 homes worth NOK 2.8bn in first 9 months; 505 units sold year-to-date valued at NOK 3,243m.

• Delivered 54 units in Q3 2024, down from 74 last year, leading to lower revenue and profit margins.

• Earnings impacted by low number of deliveries; only 54 units delivered in Q3 2024 compared to 74 last year.

• Increased number of units under construction, with further growth expected.

• Order backlog at quarter-end was 700 units valued at NOK 4,495 million, with 67% sold.

Financial highlights

• Q3 2024 operating revenues (IFRS) NOK 225m, down from NOK 437m year-over-year.

• Adjusted EBITDA NOK 4m (NOK 44m in Q3 2023); EBITDA NOK -10m (NOK 26m in Q3 2023).

• EPS for the quarter NOK -0.05 (NOK 0.21 in Q3 2023).

• Cash flow from operations negative NOK 101m, mainly due to inventory changes and increased units under construction.

• Book value of equity NOK 24.9 per share; equity ratio 49.4%.

Outlook and guidance

• Housing shortages in Oslo, Akershus, and Bergen create favorable conditions for new housing.

• Well-positioned with robust land portfolio and strong land purchasing capacity.

• Expect to increase homes under construction as market recovers and interest rates trend downward.

• More construction and sales starts planned if positive market momentum continues, but macroeconomic uncertainty may impact new project launches.

• 85% of 2024 completions sold; 67% of units under construction sold.