Sweden's Bonava Q3 sales miss; lowers FY forecasts

Overview

• Sweden-based residential developer's Q3 net sales and EBIT missed analyst expectations

• Company raised gross and EBIT margins yr/yr for Q3

• Bonava cut 2026 outlook for operating margin and net sales growth

Outlook

• Bonava lowers 2026 operating margin outlook to about 7% from previous 8–9%

• Company now expects 2026 net sales to grow about 10% vs 2025, down from 20–25% forecast

• Bonava implementing cost-reduction measures in Germany to improve efficiency in Q4

Result Drivers

• UNIT SALES AND STARTS - Co reported increased number of housing units sold and production starts in Q3

• SWEDISH TURNAROUND - CEO said Swedish operation showed clear turnaround in Q3

• COST REDUCTION MEASURES - Co said it is implementing cost-reduction measures, mainly in Germany, to improve efficiency

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the real estate rental, development & operations peer group is "buy"

• Wall Street's median 12-month price target for Bonava AB (publ) is SEK13.00, about 49.8% above its October 21 closing price of SEK8.68

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads

• Oct 21 - Sweden residential developer JM's nine-month profit rises on production activity

• Oct 21 - Fabege Q3 profit rises on residential development

• Oct 21 - Sweden's Neobo Q3 profit from property management rises on lower costs

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)