Wästbygg Gruppen (WBGR) Investor Update summary

Strategic focus and operational changes

• Shifted strategy to prioritize profitability over growth, leading to more selective project intake and cost reductions, including SEK 100 million in savings in 2024 with further positive effects expected in 2025.

• Divested the residential project development unit and discontinued property management to focus on core business areas: logistics & industry, commercial, and residential construction.

• Enhanced cost control, streamlined workforce, and leveraged intra-group synergies to improve efficiency and margins.

• Increased focus on digitalization and strategic procurement to further reduce costs and manage risks.

Financial performance and position

• Revenue for FY24 was SEK 4,348 million, with an EBIT margin of -7.7%, reflecting ongoing restructuring and market challenges.

• Order backlog at year-end was SEK 3,790 million, and order intake was SEK 2,085 million, both lower due to the new selective approach.

• Amortized SEK 200 million on the SEK 400 million secured bond, with available liquidity of SEK 302 million at year-end, expected to rise to SEK 452 million post-rights issue.

• The rights issue and operational measures are expected to secure funding, boost profitability, and strengthen the project portfolio in 2025.

Segment and market developments

• Logistics & Industry accounted for 43% of revenue, Commercial for 38%, and Residential for 19% in 2024.

• Positive momentum in community service and special properties, with major investments in defense, prisons, and hospitals expected to continue.

• Strategic divestment of residential project development aims to allocate capital toward higher-margin commercial and logistics projects.

• New leadership in 2025, with an acting CEO and incoming CFO, supports the transition and future growth.