Selvaag Bolig (SBO) Q4 2024 earnings summary

Executive summary

• Achieved strong sales growth and highest construction starts in three years, despite challenging market conditions.

• FY 2024 gross sales increased by NOK 1.78bn to NOK 4.36bn, with 208 more homes sold and NOK 1,565m higher sales value than 2023.

• 298 construction starts in Q4 and 829 units under construction at year-end, up from 784 a year earlier.

• Land bank expanded by 880 units in 2024, with new land agreements in Stockholm and Moss.

• Proposed dividend of NOK 1.25 per share for 2024, down from NOK 2.00 in 2023.

Financial highlights

• Q4 2024 operating revenues (IFRS) at NOK 498m, down from NOK 1,247m in Q4 2023; adjusted EBITDA NOK 87m (NOK 203m in Q4 2023).

• FY 2024 operating revenues (IFRS, proforma incl. JVs) NOK 3,098m (NOK 3,460m in 2023); adjusted EBITDA NOK 482m (NOK 477m in 2023).

• Full-year 2024 operating revenues: NOK 1,971m (2023: NOK 3,255m); adjusted EBITDA NOK 320m (2023: NOK 452m).

• EPS for Q4 2024 at NOK 0.50 (NOK 1.16 in Q4 2023); FY 2024 EPS NOK 1.90 (NOK 2.62 in 2023).

• Cash and equivalents increased to NOK 384m at year-end (2023: NOK 267m).

Outlook and guidance

• Housing shortages in Oslo, Akershus, and Bergen expected to support favorable conditions for new housing.

• 75% of homes to be completed in 2025 are already sold; company expects higher market activity and more project launches.

• Anticipate increased purchasing power and sales as interest rates trend down; plan to increase homes under construction.

• Strong land purchasing capacity through Urban Property partnership.

• Market uncertainty remains due to macroeconomic factors, but company is well-positioned with a solid land bank and capital access.