Wästbygg Gruppen (WBGR) Q1 2025 earnings summary

Executive summary

• Revenue increased 28% year-over-year to SEK 1,206 million, driven by high activity in ongoing projects, especially Stegra in Boden and Ahlsell in Norway.

• Operating profit remained negative at SEK -36 million, impacted by SEK 65 million in one-off costs, mainly write-downs of unsold apartments.

• Profit after tax was SEK -105 million, with earnings per share at SEK -3.13.

• Order intake surged to SEK 1,328 million from SEK 338 million year-over-year, with all group companies contributing.

• A rights issue of SEK 150 million was completed to strengthen liquidity, and the share issue was oversubscribed.

Financial highlights

• Segment reporting: Revenue SEK 1,206 million (942), operating profit SEK -36 million (-47), profit after tax SEK -105 million (-37), equity ratio 32% (34), interest-bearing net debt SEK -368 million (-112).

• IFRS: Revenue SEK 1,203 million (896), operating profit SEK -81 million (-46), profit after tax SEK -105 million (-41), equity ratio 32% (27), interest-bearing net debt SEK -438 million (-1,318).

• Cash flow from operating activities was SEK -28 million (5) in segment reporting and SEK -29 million (-97) in IFRS.

• Order backlog at quarter-end was SEK 4,033 million (5,563).

Outlook and guidance

• The group is now streamlined and positioned to operate efficiently as the market recovers.

• Underlying business is profitable, and management expects improved results as market conditions stabilize.

• The financial target for operating margin was adjusted to 5% over time, reflecting reduced focus on self-developed residential projects.