In conjunction with Bonava's arrangement of a Capital Markets Day today in Stockholm, the company announced that starting in 2025, Bonava will supplement its statutory financial reporting, in accordance with IFRS, with segment reporting using the percentage of completion method. Going forward, the Group's financial targets will be monitored in accordance with segment reporting, but the target levels will remain unchanged. For full-year 2025, it is believed that the operating EBIT margin will total 5-6 per cent, to reach the target of at least 10 per cent as of full-year 2026.
Beginning with the first quarter of 2025, Bonava will report the Group's segments using a new segment reporting method. Profit/loss from sales of housing units will be reported using the percentage of completion method, in contrast to the previously used method where profit/loss was reported when the customer took possession of the housing unit. The reason is that the company wants to illustrate more clearly how the operations in the business units are performing and creating value for the Group. The new segment reporting corresponds to how the Executive Management Group and Board of Directors will be monitoring operations going forward.
Unchanged financial targets, based on percentage of completion method
In conjunction with the new segment reporting, the Group's financial targets are also being updated. Going forward they will be monitored in accordance with the segment reporting, while the target levels will remain unchanged. The financial targets are therefore:
• In 2026, Bonava will achieve an operating EBIT margin, under the segment reporting, of at least 10 per cent.
• Bonava's return on equity, under the segment reporting, is to be at least 15 per cent over time.
• The dividend on the Group's profit after tax, under the segment reporting, will total 40 per cent over time.
Prospects
Bonava intends to increase its production starts in 2025-2026, in order to over time gradually achieve a start volume of 3,500-4,000 housing units annually, which is a prerequisite to achieve the financial targets. For full-year 2025, it is believed that the operating EBIT margin will reach 5-6 per cent. Bonava expects to achieve the target of an operating EBIT margin of at least 10 per cent as of full-year 2026, and there are good conditions for reaching the return on equity and dividend targets as of 2027-2028. The continued increase of production starts assumes that the right conditions will exist in the market.
- In pace with the strengthening of household disposable income, demand for newly produced housing units is increasing, and business volumes are expected to increase in Europe's growth regions. With the robust measures we have implemented in recent years, we are now moving from consolidation to controlled growth and are gradually increasing our operating EBIT margin, says Peter Wallin, President and CEO of Bonava.
The Group's financial reporting for 2024 has been restated and supplemented with comparative figures for segment reporting, as well as a description of the overall accounting policies for the percentage of completion method. More information is available at bonava.com.
Follow Bonava's Capital Markets Day
Follow and participate digitally in Bonava's Capital Markets Day, which starts today at 9:00 a.m (CET), by clicking here. Presentations will be held in English by Bonava's President and CEO, Peter Wallin, Bonava's CFO, Jon Johnsson, and other senior executives.
For more information, please contact:
Jon Johnsson, Deputy CEO and CFO
jon.johnsson@bonava.com
Tel: +46 700 888 605
Fredrik Hammarbäck, Group Head of Press and Public Affairs
fredrik.hammarback@bonava.com
Tel: +46 739 056 063
This information is such that Bonava AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was issued for publication through the agency of the contact persons set out above on 27 March 2025, at 7:00 a.m. CET.
Bonava is a leading residential developer in Europe with the purpose to create happy neighbourhoods for the many. With its 900 employees, Bonava develops residential housing in Germany, Sweden, Finland, Latvia, Estonia and Lithuania. To date, the company has built about 40,000 homes and reported net sales of approximately SEK 8 billion in 2024. Bonava's shares and green bond are listed on Nasdaq Stockholm.
For more information: www.bonava.com
