ByggPartner Gruppen AB (publ)

Välkomna till Byggpartners presentation av Q1 2025. Med oss idag har vi vd Sture Nilsson och CFO Karin Mellegård-Järf. Under första delen av mötet är deltagarna i lyssnarläge och därefter kommer det finnas tid att ställa frågor till talarna. Under frågestunden kan deltagarna ställa frågor genom att trycka stjärna 5 på sin telefon eller använda rutan under presentationen på webbsändningen. Jag lämnar nu över ordet till vd Sture Nilsson. Varsågod.

Tack så mycket. Ja, som sagt var, Sture Nilsson heter jag, vd och konserter för Byggpartigruppen. Och vid min sida, eller vid bordet här, så har jag Karin Mellegård, CFO. Vi tänkte då att få berätta lite grann om våran kvartalsrapport, den första för 2025. So let's get right into it. And then I thought of a short introduction to Byggpartegruppen. And I realize that this is a repetition for those of you who usually listen to us as well. But if I say something about our group, we are a local, we are a clean-roasted construction entrepreneur that only employs entrepreneurs. We are mainly in three larger companies, so we run a strong locally anchored business. Grunden är att vi ska ha entreprenörskapet med oss i hela vår verksamhet. Vi är drygt 900 medarbetare, vi omsätter 4,8 miljarder. Vi är etablerade dels i Mellansverige, framförallt i Dalarna, genom Byggpartner. Dalarna är framförallt basen i Byggpartner, men vi finns även i Mälardalen. Sedan har vi Östergötland, vi representerar genom the leading building company in Östergötland, Olin Ekeroth. And then we are on the west coast through Flodens, from Uddevalla down to Le Holm, split across the coast. In short, our focus areas, the overarching focus areas within the corporation, have put up cooperation as an important part for us. This means that we strive to develop conditions for a project together with our customers, to be an advisory entrepreneur, And then we work in an open collaboration with our customers. And that part of our business has increased successfully in recent years. So we have about 60% of our revenue is in collaboration today. Tree building is lifting up as a focus area. We have a lot of experience. We build a lot of trees. So it is an important part of our offer. We are also investing now, a couple of years back in time, in that organiserar spetskompetens i ett särskilt enhet, i ett bolag inom gruppen som heter Dalhusgruppen. Och där har vi specialistkompetens, framför allt inom trästolar. Sedan inom det allt mer påtagliga hållbarhetsfokus som vi har i hela verksamheten så är träinslaget naturligtvis en viktig komponent för våra kunder också. Det är lite då övergripande om vårt bolag. To summarize the first quarter of 2025, I am happy to state that we continue to strengthen the positive development we showed during last year. In quarter four, we had a relatively weak order in progress, which may have meant that it was somewhat weak. We described that we still have a very strong pipeline of projects in our project base. genom att vi har stora projekt i en första tidig fas där vi jobbar i samverkan. Nu har flera av de här samverkansprojekten blivit avropade till orderingång under det här kvartalet. We can see that this is a project we've been working on before, but now we're falling out of order. This means that we've doubled the order volume compared to 1.7 billion in this quarter. We're going to differentiate between the quarters, but it's very fun to show that our thesis is right, to have a strong pipeline, and to show that in the quarter as well. We've increased our stock price by about 500 million in the quarter. Det är viktigt att lyfta fram att vi har nu friska projekt i orderstock framåt. Det är genom att vi har varit selektiva under sista året med vilka projekt vi tar in i den ganska kraftiga konkurrensen som har varit som sätter press på priserna i marknaden. As I said, when we talk about pipelines, we have a strong pipeline beyond the order stack in these early phase 1 projects where we work in a first phase with the customers. And we have come up with several new projects that have come in there as well. We have eight quarters that are very happy to say that we have a positive improved profitability successively every quarter. We now have an EBITDA result of SEK 35 million per quarter, which is 3% in the margin. This solution margin continues to increase successfully in the last eight quarters. The cash flow is very varied in the construction industry. The big flows up and down. The cash flow is now SEK 30 million per quarter. We see that, above all in this quarter, it has to do with the fact that we had a timing where large investors came in after the change of the month as well. So the explanation was for just in the quarter when it was said. But in total, if we look over time, we do not bind capital to our own project developments. And we don't have any bigger customer losses. So we have a cash flow that will follow the results over time. And that's important to keep in mind when it fluctuates a little bit between quarters. And we have a strong economic stability in total. We are up 30% in solidity today in the company. And we have debt in relation to the result of the EBITDA at 1.2. We think that's a healthy level. Det är inledande om bolaget, hur siffrorna ser ut, som Karin kommer tillbaka till lite senare. Om vi tittar lite grann och berättar lite grann om projekt som vi håller på med nu, så skulle vi börja med vårt långsiktiga samarbete med Ekodatacenter i Falun. Där har vi byggt fyra stora datahallar tillsammans med trädstommar åt vår kund i samverkan under ett antal år här nu. Under quarter one, we have called for another fifth hall to be built in Falun. The order amount is 650 million, and it is included in the order during the quarter. We can also say that we are planning for a sixth hall in Falun as well. I can also say, when we talk about the data halls, that this facility is one of Europe's leading data hall buildings today. And it is the largest AI computers in Europe that are available today. There is a lot of focus on sustainability and high quality when it comes to all of them. So this is a collaboration we are very happy about and proud of. It has been around for a long time and it is an ambition for the future as well. Some new production starter projects over the quarter that I can briefly mention. We have a collaboration project with Laholmshem, where we build preschools and private homes in Laholm, as I said. We are involved in the construction of a pellet factory at Arctic Paper in Gryxbo. Here we see a couple of silos that we are building there on site. We are doing a large reconstruction of land insurances in Dalarna, their headquarters, which is being built right now. And we have also started up a new production of an office for Finnsbångs Tekniska Verk. These are some of the projects that we have started up during the quarter. I can give you more examples of some of the projects that are connected to our focus areas. In Alingsås we are building for Alingsåshem a new production of a school, Ingaretsskolan. Det är en väldigt stark prägel på höga ambitioner hos både oss och vår kund, att hållbarhetsaspekten ska finnas med i hela produktionen framåt. Vi bygger kontor med trästommar i Motala, men här även en utescen som vi bygger åt Motala kommun. Längst till vänster så har vi också i samverkan med vår kund Lejon Fastigheter, i Linköping renoverar vi en idrottsanläggning och vi har också i Arboga där vi har ett mångårigt samverkansupplägg med kommunen och där bygger vi nu en stor skola i trädstormen. Visserligen med en tegelfasad i det här fallet. Det här är ett exempel på där samverkan, träbyggnation och hållbarhet är i fokus Det har jag tänkt att säga om lite om projekt och övergripande, så jag lämnar över till Karin.

Perfekt. Som ni precis hörde så har vi en otroligt stark orderingång i kvartalet. Ska vi vara helt ärliga när vi tittar tillbaka så är det faktiskt den högsta någonsin i byggpartnergruppens historia. Av den här orderingången som vi har på 1,7 miljarder så är majoriteten projekt i samverkan. All segments also contribute to this fine figure of 1.7 billion. Looking at the annual income in the last 12 months, it has risen to 4.2 billion, which we will compare with the total annual income in 2024, which was 3.4 billion. We see positive market development in our segments during the quarter, with increased demand. Men vi är också fortsatt noggranna med vilka anbud vi väljer att räkna på. Konkurrensen fortsätter att pressa prisnivåerna bara för att skapa sysselsättning. Vi vill ju inte ha fel projekt i vårt portfölj och det innebär att vår strategi med fokus på lönsamhet före volym fortsätter att gälla. Our order volume shows our future production volume in confirmed orders and due to the high order volume in the quarter, the order volume has also increased. When we close the quarter, it goes up to almost 3.8 billion to compare with 3.2 billion in the year change. It is important to remember that a large part of our ongoing projects are so-called phase 1 projects, where we work in early design with a goal to be able to sign a final entrepreneurial contract for the large work that will be carried out in the next steps. De här uppdragen åderegistreras först när entreprenadavtalet signeras. Det här innebär för oss att den totala underliggande pipeline som vi har är fortfarande betryggande, men vi ser inte den i det här diagrammet. In summary, we can state that we are selective in our opinion, in combination with the fact that we prioritize collaboration projects, and that this means that our current project base has a higher and healthier profitability potential, together with a lower risk level compared to earlier. If we look at the distribution of our order block, it has changed a bit compared to previous quarters. Historically, the group has had an overwhelming share of social housing, but as a result of the agreement that we entered in Q-quartal 1 with KDC and other activities that we have held, the proportion of social housing has dropped to 51% compared to the previous quarter of 61%. This also means that the proportion of commercial properties has increased to 38% compared to 25% in the previous quarter. Our exposure to rental rights has decreased to 10% compared to 14% in the previous quarter. Our turnover in the quarter is close to 1.2 billion SEK, which is a weak but positive growth of about 2.5%. Omsättningen i vårt största segment byggpartner är stabil och i linje med förväntningarna. Vi har nämnt tidigare att vårt segment i Östergötland, Olin och Ekerot, har en fortsatt tuff marknadssituation, men de lyckas ändå öka sin omsättning i kvartalet jämfört med föregående år. Och även i vårt segment Flodén så ser vi en positiv tillväxt. As Sture mentioned earlier, we continue to successfully improve and stabilize our profitability. For the 18th quarter in a row, we are providing a positive result, which we are very pleased with. In the quarter, our turnover is up to 35 million, with a margin of 3%. We will compare this with the previous quarter, when we had a turnover of 26 million and a profitability of 2.2%. Både Byggpartner och Flodens förbättrar sina resultat jämfört med samma kvartal föregående år, medan Olin och Ekerot har något lägre resultat i följd av mindre nedskrivningar i enskilda kvartaler. Vår finansiella stämning fortsatte att förbättras under kvartalet och kvaliteten slutade på strax över 30% och vår nettoskuld i förhållande till EBT uppgick till 1,2%. Det som sticker ut och som du nämnde tidigare, det är ju det negativa kassaflödet i kvartalet som ligger på minus 30 miljoner. Trots att det är negativt är det ändå bättre än föregående år då det låg på minus 47%. Kassaflödet beror ju på förändringar i rörelsekapitalet och i byggföretag så präglas det av stora variationer mellan kvartalen och påverkas både av upparbetningsgrad som typ av projekt och som i det här enskilda kvartalet så hade vi flera större inbetalningar som hamnade i april istället för i mars. Men vår bedömning framåt är ändå att kassaflödet som löpande verksamheten bör utvecklas positivt då vi har en minskad exponering av lustprojekt. Tittar man även på kassaflöden de senaste 12 månaderna, så ligger vi plus 100 miljoner. Då hoppar vi vidare, Stura.

Then I thought I would go into the different segments and comment on our three big companies here now. If I start with the building partner part, it is very happy that our largest company, Byggparten, has come back to stability and strong profitability during the last year. We had real challenges in 2022 and 2023. Vi har en stark bas i Dalarna och vi har då inte kvar några förlustprojekt egentligen utanför Dalarna som vi drabbades av tidigare då. I Dalarna där vi har huvuddelen av verksamheten har vi ett bra tryck i produktionen och successivt så rekryterar vi och stärker organisationen där också. Vi har en marknadsbild som är gynnsam för oss, framförallt i Dalarna. Vi har ökat orderstocken som Karin nämnde förut. Vi har en... Vi hade en orderingång på drygt en miljard i perioden. Resultatet, vi har ett resultat på 4,3% EBITDA på sista raden i kvartalet och vi har ledigat på 4,5% i resultat under de sista 12 månaderna. Så vi är nöjda med att ligga på den nivån här nu i resultatet i bolaget. Vi har en fortsatt stark pipeline. Det här är det bolag som har den största basen av Fawcett-projekt, som är långsiktiga, som vi räknar med faller ut i orderingång framöver. Vi har en bra stomme i bolaget. Jag kan också nämna att vi i februari gjorde ett skifte på vd-posten. Johan Carlsson har nu gått in som vd, och han har faktiskt under tio år varit den drivande kraften för tillväxten i Dalarna. So we are very proud of the internal recruitment. If I go back to Ålin Ekeroth. Even Ålin Ekeroth has increased the order volume during the quarter and a strong order entry. And even revenue has increased, as Karin said. We have a strong organization and a strong position in Östergötland. This will be decisive when we see that the market starts to strengthen in the future. I am confident with the organization and platform we have in the market through Olin Ekeroth. But the market conditions have been tough in recent years. We have tried to be very selective, but we still have a pressure on margins in companies that are also present in the quarter. We can say that this quarter's result has been affected by several declines in projects. It's a smaller decline, but it still affected the quarter. But we see that we have a lower margin in the short term in the company. What is really positive, apart from the quarter, is that after the start of the quarter, we have been assigned a large collaboration project in Linköping. A large multi-hull that is to be built. And we have had that in cooperation. So we will come half a year forward now to work in the design phase, in phase one, as we say, and shape it together with the customer before we, as we calculate somewhere around the change of year, land in an entrepreneurial project in this. But this feels fantastically fun to get this recognition, to get to start this trust project. Jag kan också säga här att vi gjorde ett vd-skifte även här i Östergötland, i rådsskiftet. Men det är ingen dramatik på något sätt, utan vi har gjort det i god anda. Och Rickard Pils, som är vd, har en lång bakgrund i det bolaget och har medverkat i stora ledande roller sedan tidigare. Så vi stärker genom intern utveckling i bolagen. After a couple of tough years, we have now started a new phase in the company where the profitability is starting to come into place. We have a careful positive result in quarter one. Our understanding, as mentioned earlier, is that we will have a positive result this year. But it will take a while before the profitability is up to that level, we expect, but still positive that we are now again on på den sida av lönsamheten. Vi har sen senast har vi också skrivit ett stort kontrakt nu efter kvartalsutgång på en stor skola i Halmstad som vi har fått tilldelning på. Det är en skola som ska rymma tusen elever och produktionen startar omgående här nu då och orden kommer registreras i Q2 och den är bedömd till 470 miljoner. Det stärker också den framdriften som vi har i Flodena. We see that there is a new start and a new phase in Flodens and it feels really good. Then I came to a short summary of the quarter's results and the quarter and we can say that we are satisfied with the start of 2025, as I have described here now. We continue the development we had at the end of 2024. The important thing is that when we look ahead, we have a healthy and strong base of projects ahead of us. And that is the fruit of the selective age that we have had during the last year. However, we can say that we have increased our profitability to 3% today. But we have a goal that is clearly at 5% in profitability in the last row. And there we have a bit left. And that is what we continue to work with by being selective with the projects we are going to bring in. And we continue that change work that If you have a question, press star 5 on your phone.

Thank you very much. Can you hear me? Yes, it's good.

Hi. I have a question about your Bita Marginal. As you mentioned, it has gradually improved during 2024 and now in Q1 as well. Given the order block that you have today and a relatively large impact on the collaboration project, how do you think about marginal development in 2025?

Yes. We don't make any forecasts in the future when it comes to marginal development. In general, in the construction industry, what haunts the margins, even with us, is the projects that fall through. Some single projects with bad margins are what haunts most construction companies, which makes the total margin go down. That's why we believe that we have a high proportion of collaborative projects. We ensure that we avoid these loss projects. A more even margin development in the order block will benefit a positive development. But as I said, we have a goal of 5% and we are at 3% today. We continue to work towards that goal. We are convinced that we will achieve it. We also believe that it is a market where we cannot enter all projects today. Konkurrencen är sån att det är långt ifrån andra projekt som möjliggör den här marginalen. Det var ett långt svar utan att ge en exakt svar på din fråga. Vi jobbar framåt mot vår lönsamhet i alla fall.

Sen tänkte jag på Ecodata Center. Ni har haft samarbete med dem sedan tid nu och utvecklat några datahallar. Du nämnde att en sjätte var under diskussion Kan man säga någonting om tidsplan för den?

Vi jobbar ju som sagt i fas 1 i projektering av även de här hallarna. Så vår bedömning är att inom ett halvår i alla fall kommer vi att avropa ytterligare en hall. Det kan vi säga långt. Procedure is a matter of course for that hall. And it's a hall in the same parity as the fifth one we called off.

Okay. Interesting. And then in general, in order, can you break it down to customer groups, geographies, where is the strongest demand and weakest demand?

I think we have a lot to count on in those segments where we are strong. In Dalarna, there are many industrial projects that are also going strong. We have, as you know, strong industries that go further there. In addition to Dalarna, we have Hitachi, which works on high pressure. SSAB is counting on a lot of expansion there as well. So the industrial side up in the Dalarna is still strong. We also have industrial investments in Östergötland. And the long-term development in Linköping as well. We see a greater demand in Linköping and Norrköping as well. The west coast, there has been a lot of turbulence with several of our close Mm. Mm.

One last question. You mentioned in Olin Ekeroth that there is still margin press in the coming quarter. Is it a general picture or is it a single project that weighs the margins?

It is a general picture. We are quite confident in our project management in Olin Ekeroth. Vi hade några mindre justeringar på marginaler, men det är en allmän press i marknaden som gör att vi i den pågående orderstock vi har idag så har vi en press på marginalen. Däremot så när vi tittar på nya projekt nu framåt så ser vi att vi har möjligheter att förbättra marginalerna. Men i kortsiktigt så är den här en press på marginalen, helt klart.

Tack så mycket, det var allt för mig. Yes, thank you.

Next question comes from Oliver Ucitalo from Aktiespararna. Welcome.

Good morning, Karin. I hope you can hear me. Congratulations on a strong order in the quarter. It was fun to see. I'm going to start with the margin. You have made some major changes in your larger companies in the company. And lately, you lifted a change in Mälardalen within Byggpartner. And I'm thinking that this has affected the margin. Do you have more structure requirements to implement or What should you say the organizations are doing?

Yes, we have... Let's start with Byggpartner. There we have dragged down the business in Mälardalen where we had these problems for several years with poor profitability. And there we have a careful recovery now. But I think we have done the structural approach in Byggpartner today. In Ålin Ekeroth we have a stable structure today, so it is probably a more market development we see when it comes to ECROT. On the other hand, we have an expectation of stronger profitability here now, successively. The structure is right in Flodens as well, but we still have projects with low profitability, which means that we to increase profitability faster than what we do today. But we are very happy with the projects we get in now, including in Flodell, which will strengthen profitability. So the answer to the question is that we do not have a more sustainable, larger structure approach in the company.

We have done that. Yes, okay. So, in order for you to reach these 5 percent turnover margin, then you might talk more about the general market upswing that is needed.

Yes, we show here in the largest company, Byggpartner, which is around 4.5% today, that it is possible even in a tough market. But we have the idea that all three companies should go in the same direction. You can say that the market has put a lot of pressure on the margins, that's for sure.

Yes, I understand. And then you adjust the margin goal from EBIT to EBITDA. Can you briefly explain why? And can you think that this has to do with greater ambition around acquisition or equity? How do you reason?

We reason that the respective companies have an unchangeable result level on And in respective companies, if we talk EBIT or EBITDA, it's the same thing. The last row in the results is 5% as a requirement for the company. But we have relatively, as a corporation, a greater proportion immaterial deductions that are linked to the acquisition than if we compare with other comparable construction companies. And then we think it is more relevant to talk about EBITDA than EBIT because then we get a connection that is more linked to the business and the cash flow generating level in the company. So it's more to get more business-oriented goals that we offer to EBITDA.

And then I thought, the last question, we talked a lot about global insecurity during this last quarter. Do you feel that this affects you in any way and that your customers have become more cautious or something like that?

We are all affected by an insecurity in society today. That's what's overwhelming. But if we look at our direct customer relations and customer contacts we have now, there is a large number of social housing and municipal housing we work with. And there we see no obvious difference, if we're going to be honest, today. We don't see any of these changes in the last few months. And the industry customers we have, it's not that we have long-term, but we don't have anything in the current situation of specific connections in the customer relations we have. It's more of a general feeling that both you and I have about how reality looks. But nothing that we see affect the businesses. Yes, I understand.

Thank you for your good answer. It was fun.

Thank you very much.

Som en påminnelse, om du vill ställa en fråga, tryck stjärna 5 på din telefon. Det finns inga frågor på telefon, så jag lämnar över ordet till talarna för eventuella frågor från webben.

Då har jag fått in en del frågor på webben här. Jag försöker att beta av dem efterhand, Henry, då. Den första frågan är, hur tror du att omsättning kommer börja att växa i absoluta termer under andra halvåret 2025 eller in i 2026? Det snuddar till att vara en fråga om att vi ska prognostisera vår omsättning. Så jag duckar faktiskt på den frågan och relaterar till att vi är väldigt trygga med en ökad orderstock som vi har idag. Och att vi har full sysselsättning i organisationen. Next question is, do you have a picture of when you want to achieve an EBITDA of 5%? The construction part is already there. When you set up a goal, like we have a profitability goal, then the whole idea with a goal is that it should be relevant and realistic. So we're not sitting over an unusually long time. As you do in a company, we see that it's within a three-year period. You have to reach a goal, and it has to be relevant. So that's the simplest answer I can give, that we work on a three-year period to reach this goal. Then there are market conditions that can affect it all. I think we have a constant and successive improvement now in the future. That's what we hope to be able to show. Then there was the question of financial goals, if I can briefly describe why we feel that they fit better for us. We tried to describe recently that we are a clean building company. That is what we should have linked to, that we do not bind money in large own project developments, but the result development should be followed by a cash flow. That is the strength when you are clean. Then we think that the EBITDA goal is more relevant for not burdening with these concern-free deductions. And when we have concern-free deductions for contract related deductions, then it is in our target image that it can be a constant factor in our growth to work with contracts. That is why we think it is reasonable to have the EBITDA goal. And when it comes to net debt in relation to EBITDA, we also think that it is an important factor. How quickly can we work to get rid of our loans so that we can work with it? And that is probably seen from the fact that we see an offensive future for our company when their goals fit in better. Vi sa också här i en rapport att som det ser ut nu så kommer vi att vara skuldfri om drygt ett år med den amorteringsplan vi har idag. Det vill jag framhälla att vi har en bra lånebild idag. Sen så är en fråga om nyckeltal, om vi ska lägga till mål för soliditet och kassaflöde. Vi tar till oss det. Vi visar soliditet. Det har varit ett mål fram till nu. Vi har haft 25% som mål. Nu är vi uppe i 30%. Vi fortsätter naturligtvis att följa det. Men vi tycker att det här netto-skuldig förhållande till EBITDA är ett mer relevant mål och tydligare mål för våra investerare att titta på framåt. Det är det korta svaret. Ytterligare en fråga är hur ser du på nedskrivningar och behov av dessa i de tre benen i gruppen framåt? Vi tycker ju att vi har en frisk orderstock idag och en frisk bas idag. Vi ser ju inte de behoven som vi ser idag framför oss. Then there is always the possibility that something can pop up, but not as we have in our pipeline today, if we see needs that we have in front of us. And that is a very important part compared to the years we have had behind us, where we have been forced to do downloads afterwards. That was the question I got, the questions I got on the web. I can't see anything more, so I'll return to Tack för oss så länge. Om du tycker upp någonting mer.

Det finns inga fler frågor just nu så jag lämnar över ordet till talarna för eventuella avslutande kommentarer.

Vi är tillbaka igen. Då tackar Karin och jag så mycket för att ni lyssnade. Hoppas vi kan höras igen så snart vi har.

Tack så mycket.