EL7.AI
StocksMedium•22 October 2026•
4 min read

Bonava raises operating profit to SEK 168 million, cuts 2026 outlook

Key Facts

1Segment EBIT was SEK 168 million in the third quarter, compared with SEK 148 million a year earlier.
2Bonava cut its 2026 sales growth forecast to about 10% from 20–25%, and its operating margin forecast to about 7% from 8–9%.
3Home sales rose to 959 units and production started on 947 units in the third quarter.
4Cash flow before financing and tax was -SEK 536 million, compared with SEK 95 million a year earlier.

Bonava raised operating profit on a segment reporting basis to SEK 168 million in the third quarter of 2026, from SEK 148 million a year earlier, while lowering its full-year forecasts for sales growth and operating margin, according to its interim report. Chief Executive Peter Wallin said the company delivered positive performance in most areas and improved profitability, pointing to an increase in both housing starts and homes sold. But the operating indicators did not prevent a forecast cut, amid a downturn in the German market and higher long-term interest rates. The company’s shares fell 16% after it lowered its outlook, according to an EFN report published on October 22. The report highlights a divergence between improvement in some activity and segment profitability indicators and weaker full-year forecasts, while the share remained loss-making under IFRS.

Net sales on a segment reporting basis were SEK 2,216 million in the third quarter, compared with SEK 2,167 million in the same period of 2025, while the gross margin rose to 14.1% from 13.8%. The EBIT margin climbed to 7.6% from 6.8%, as operating profit increased to SEK 168 million from SEK 148 million. However, the result fell short of analysts’ average forecast of SEK 228 million, while revenue of SEK 2,216 million was also below their estimate of SEK 2,578 million, according to Infront estimates cited by EFN. In terms of activity, Bonava sold 959 homes, compared with 456 a year earlier, and started production of 947 units, against 708 units. The number of homes under production stood at 4,931 units on September 30, with a sales rate of 64% compared with 57% a year earlier.

Profitability looks different under IFRS accounts: quarterly sales rose to SEK 1,511 million from SEK 1,201 million, and EBIT turned to a profit of SEK 85 million after a loss of SEK 28 million a year earlier. Even so, earnings per share remained negative at SEK 0.08, although the loss was smaller than SEK 0.36 in the third quarter of 2025. Bonava says the difference between IFRS and segment reporting reflects the timing of revenue and cost recognition: IFRS recognizes them upon delivery, while segment reporting records them as a project progresses. Cash flow before financing and tax was also negative at SEK 536 million, after a surplus of SEK 95 million a year earlier. For the first nine months of 2026, segment EBIT rose to SEK 417 million from SEK 291 million, and the margin increased to 6.9% from 5.2%.

The company cut its forecast for 2026 net sales growth to about 10% compared with 2025, after adjusting for currency effects, from its previous range of 20–25%. It also lowered its operating margin forecast to about 7%, excluding potential restructuring costs, from 8–9%. The forecast revision comes as the company said higher long-term interest rates deepened the slowdown in consumer sales in Germany during the quarter, negatively affected the investor segment and lengthened the conversion of demand into sales agreements. Wallin said Germany would not be a growth driver during the 12 months following his October 22 statement. By contrast, the company said the Swedish housing market continued to perform positively, with volumes and prices rising, while the Baltic markets remained strong overall.

EFN, citing Nyhetsbyrån Direkt, reported that Bonava expects the cost of expanding its efficiency program in Germany to be SEK 75 million, with annual cost savings of about SEK 100 million once the program’s full impact is realized. The company expects the full effect to be visible by mid-2027. The program comes as German activity weakens, while the company continues to target an annual EBIT margin of at least 10% from 2026 and a return on equity of at least 15% over the long term, according to targets published in its 2025 report. The chief financial officer said the company expects to deliver up to about 1,000 units in the fourth quarter, which is expected to support positive cash flow, without specifying an expected amount. Bonava set February 4, 2027, as the publication date for its full-year report covering January–December 2026.