Wästbygg Gruppen (WBGR) Q4 2024 earnings summary

Executive summary

• Maintained focus on profitable projects and organizational adjustments, prioritizing profitability over revenue growth.

• Revenue for 2024 was SEK 4,348 million (4,843), with an operating loss of SEK -333 million (-505) and net loss after tax of SEK -316 million (-496), reflecting continued market challenges and restructuring costs.

• Order intake dropped sharply to SEK 2,085 million (5,514), and order backlog at year-end was SEK 3,790 million (6,195), mainly due to selective tendering and weak market demand.

• Strategic actions included divesting the residential project development portfolio, a planned SEK 150 million rights issue, and a new focus on commercial and logistics segments.

• No dividend proposed for 2024; the company aims to strengthen liquidity and improve profitability through cost reductions and portfolio adjustments.

Financial highlights

• Q4 2024 revenue at SEK 1,046 million, nearly flat year-over-year (SEK 1,050 million); EBIT margin improved to -19.8% from -25.5%.

• Full-year 2024 revenue SEK 4,348 million, down from SEK 4,843 million in 2023; EBIT margin improved to -7.7% from -10.4%.

• Operating margin for 2024 was -7.7% (-10.4%), with earnings per share at SEK -9.77 (-15.34).

• Cash flow from operating activities improved to SEK 107 million (-204), despite negative earnings.

• Interest-bearing net debt increased to SEK -438 million (-48), and equity ratio declined to 31% (36).

Outlook and guidance

• Organization positioned for sustainable, profitable growth with a robust order backlog at healthy margins.

• Strategic initiatives in 2023–2024 expected to enable capitalizing on market rebound.

• The company expects a gradual market recovery, supported by lower interest rates and improved economic forecasts, but remains cautious due to ongoing uncertainty and high competition.

• Focus will remain on profitable projects, risk management, and partnerships with strong clients, especially in commercial and logistics segments.

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