Wästbygg Gruppen (WBGR) Q2 2024 earnings summary

Executive summary

• Operations and organization are being restructured with staff reductions and office closures to adapt to lower order intake and production volumes expected in 2025, with a focus on prioritized markets and the green transition.

• Strategic collaborations, management changes, and a new CFO appointment are part of ongoing adaptation efforts.

• Asset divestments and increased apartment sales are supporting improved cash flow and efforts to reduce the debt ratio.

• Operations reflect lowered production volumes, with continued focus on restoring profitability and process improvements.

Financial highlights

• Q2 2024 revenue: SEK 1,270m (down from SEK 1,358m in Q2 2023); H1 2024: SEK 2,213m (down from SEK 2,737m); EBIT margin Q2: -2.4%, H1: -3.5%.

• Segment operating profit H1: SEK -78m (improved from -239m), profit after tax: SEK -66m (from -216m), EPS: SEK -2.03 (from -6.68).

• Significant write-downs and one-off effects, including about SEK 50m in Q2.

• Equity/assets ratio at period end: 32% (segment), 25% (IFRS), with solid liquidity.

Outlook and guidance

• Market conditions remain challenging and unpredictable, with no significant upturn expected soon.

• Further staff reductions and office closures are planned to align with anticipated lower production in 2025.

• No new residential projects will start in 2024; possible start in 2025 depending on market development.

• Long-term strategy focuses on three core business areas for profitability and sustainable growth.

• Positive signals in Logistics and Industry, especially in projects linked to the green transition.