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Introduction & Market Context
Byggmax Group AB (STO:BMAX) presented its second quarter 2025 financial results on July 11, highlighting improved profitability and sales growth despite a cautiously optimistic Nordic home improvement market. The company reported its fourth consecutive quarter of sales growth and fifth straight quarter of profitability improvement.
The Swedish home improvement retailer operates in a market showing gradual recovery, with improving consumer confidence and housing transactions across the Nordic region. Byggmax’s stock closed at 55.9 SEK following the announcement, up 0.54% and well above its 52-week low of 37.24 SEK.
Quarterly Performance Highlights
Byggmax reported net sales of 2,199 million SEK for Q2 2025, representing a 5.6% increase compared to 2,082 million SEK in Q2 2024. Like-for-like sales grew by 7.3%, with Sweden showing a 7.4% increase and other Nordic markets up 7.2%.
The company’s profitability saw significant improvement, with EBITA reaching 237 million SEK, up from 184 million SEK in the same period last year. This translated to an EBITA margin of 10.8%, a substantial increase from 8.8% in Q2 2024.
As shown in the following chart of key financial metrics, Byggmax demonstrated improved performance across multiple indicators:
The company’s gross margin strengthened during the quarter, driven by accounts payable early settlement discounts and improvements in e-commerce assortment and logistics. This margin expansion, combined with increased sales volume, contributed significantly to the overall profitability improvement.
As illustrated in this breakdown of EBITA components:
Byggmax has maintained consistent growth in both sales and profitability over recent quarters, establishing a positive trend after a period of declining performance:
Strategic Initiatives
Byggmax attributed its improved performance to several strategic initiatives focused on operational efficiency and customer experience. The company successfully executed its operational ramp-up ahead of the high season, with accelerated staffing to ensure full service capacity from the start.
Inventory management has been a key focus area, with total inventory reduced to 1,334 million SEK from 1,422 million SEK in Q2 2024. More significantly, products out-of-stock decreased by 50% compared to the previous year, enhancing customer satisfaction and sales potential.
The following chart illustrates these inventory improvements:
E-commerce remains an important growth channel, currently representing 18% of rolling 12-month sales. The company has implemented several changes to its digital operations with positive effects:
The streamlined e-commerce assortment, focusing on core products, has contributed to margin improvement. Additionally, Byggmax has seen increased sales of customized products such as windows, doors, and cabins through its online channels, supported by a revised logistics setup.
Financial Position and Outlook
Byggmax has significantly strengthened its financial position, reducing net debt to 372 million SEK from 480 million SEK in Q2 2024. The company’s net debt to EBITDA ratio improved to 0.8x from 1.5x a year earlier, well below its financial target of 2.5x.
This chart demonstrates the company’s improved leverage position:
Cash flow from operating activities remained strong at 638 million SEK on a rolling 12-month basis, though slightly down from 744 million SEK in the comparable period. This decrease was attributed to reduced accounts payable levels resulting from the company’s strategy of early payments to secure cash discounts.
Looking ahead, Byggmax appears well-positioned for the ongoing high season with its operational improvements and strong financial foundation. The company’s focus remains on driving sales while leveraging operational efficiency, with an emphasis on simplicity and speed in execution.
CEO Karl Sandlund emphasized the company’s preparedness: "Our dedicated employees are prepared to welcome more customers!" This positive outlook is tempered by acknowledgment of ongoing global economic uncertainties that continue to affect consumer sentiment in the Nordic home improvement market.
With 212 stores at the end of Q2 2025, committed credit facilities of 1,500 million SEK (with 1,100 million SEK available), and continued focus on core business simplification, Byggmax appears well-positioned to maintain its growth trajectory while further strengthening profitability.
Full presentation:
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