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Introduction & Executive Summary
Byggmax Group AB (STO:BMAX) presented its second quarter 2025 results on July 11, revealing continued sales growth and improved profitability. The Nordic DIY retailer reported net sales of 2,199 million SEK, a 5.6% increase compared to the same period last year, with like-for-like sales growing by 7.3%.
The company’s EBITA reached 237 million SEK, up from 184 million SEK in Q2 2024, while the EBITA margin expanded to 10.8% from 8.8% a year earlier. Byggmax also reported a strengthened financial position with net debt reduced to 372 million SEK and a leverage ratio of 0.8x, down from 1.5x in the previous year.
"We continue to increase both sales and profitability in the quarter, building on our momentum from Q1," said CEO Karl Sandlund during the presentation.
Quarterly Performance Highlights
Byggmax’s Q2 2025 results showed improvements across key financial metrics compared to the same period last year. The company achieved sales growth of 5.6%, reaching 2,199 million SEK, while also expanding its EBITA margin by 2 percentage points to 10.8%.
As shown in the following chart of quarterly performance highlights:
The gross margin improved to 34.2% in Q2 2025, up from 33.6% in Q2 2024. This improvement was attributed to accounts payable early settlement discounts and enhanced e-commerce assortment and logistics. Like-for-like sales grew by 7.4% in Sweden and 7.2% in other Nordic markets.
The following chart illustrates the sales development and gross margin improvement:
Byggmax has demonstrated consistent growth over multiple quarters, with both sales and profitability showing positive trends. The company’s focus on core operations and simplification strategies appears to be yielding results.
The following chart shows the consecutive quarters of sales and profitability growth:
Operational Improvements and Strategic Initiatives
Byggmax highlighted several operational improvements that contributed to its Q2 performance. The company successfully ramped up operations ahead of the high season, with accelerated staffing to ensure full-service capacity from the start. This preparation helped drive strong store operations with low waste and efficient supply flows.
Inventory management was another area of focus, with total inventory value decreasing to 1,334 million SEK in Q2 2025 from 1,422 million SEK in Q2 2024. Despite the lower inventory value, product availability improved significantly, with out-of-stock situations reduced by 50% compared to the previous year.
The following chart illustrates these inventory management improvements:
E-commerce continues to be a strategic priority for Byggmax, representing 18% of rolling 12-month sales. The company reported positive effects from changes in its e-commerce operations, including increased sales of customized products such as windows, doors, and cabins, as well as benefits from a revised logistics setup.
The company also noted ongoing improvements to the in-store experience, with positive customer feedback from re-arranged stores and new technology to enhance customer experience and support. Byggmax operated 212 stores at the end of Q2 2025, compared to 213 in the same period last year, adding one new store in Stockholm.
Financial Position and Cash Flow
Byggmax’s financial position strengthened in Q2 2025, with net debt excluding IFRS 16 decreasing to 372 million SEK, down 108 million SEK from Q2 2024. The net debt to EBITDA ratio improved to 0.8x, compared to 1.5x in the same period last year, well below the company’s financial target of 2.5x.
The following chart shows the improvement in the company’s leverage ratio:
Cash flow from operating activities (on a rolling 12-month basis) was 638 million SEK in Q2 2025, down from 744 million SEK in Q2 2024. The company explained that while cash flow before changes in working capital strengthened due to improved profitability, the overall operating cash flow was affected by reduced accounts payable levels resulting from increased early payments to secure cash discounts.
Investment activities also declined, with 70 million SEK spent on a rolling 12-month basis in Q2 2025, compared to 90 million SEK in the same period last year.
The following chart illustrates the cash flow development:
Profitability Analysis
Byggmax’s improved profitability in Q2 2025 was driven by multiple factors. The company provided a detailed breakdown of the changes in EBITA from Q2 2024 to Q2 2025, showing contributions from volume growth, gross profit improvement, and lower depreciation and write-downs.
As illustrated in the following waterfall chart of EBITA development:
The 53 million SEK increase in EBITA was primarily driven by volume growth (+39 million SEK) and gross profit improvement (+13 million SEK). These gains were partially offset by higher operating expenses (-9 million SEK), which the company attributed to increased store personnel to secure service levels during the high season.
The EBITA margin expanded by 2 percentage points to 10.8%, reflecting the company’s ability to grow sales while maintaining cost discipline and improving operational efficiency.
Outlook and Forward-Looking Statements
Looking ahead, Byggmax indicated it is well-prepared for the ongoing high season in Q3 2025. The company highlighted its solid foundation, successful operational ramp-up, and strong performance as key factors positioning it for continued success.
Management emphasized three focus areas for the remainder of the high season:
1. Building on the solid foundation established
2. Focusing on customers and driving sales while leveraging operational efficiency
3. Prioritizing simplicity and speed in execution
The company noted improving macroeconomic indicators across its Nordic markets, including normalizing inflation rates and recovering consumer confidence, which could support continued growth in the DIY retail sector.
Byggmax shares (STO:BMAX) closed at 53.1 SEK on July 10, 2025, up 1.14% on the day. The stock is trading near its 52-week high of 55.7 SEK, reflecting investor confidence in the company’s performance and outlook.
Full presentation:
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