HusCompagniet Q1 2025 slides: revenue surges 31% while margins compress

Introduction & Market Context

HusCompagniet AS (CPH:HUSCO) reported its Q1 2025 results on May 8, showing continued revenue growth momentum despite challenging market conditions. The Danish homebuilder achieved its seventh consecutive quarter of sales growth amid stable market conditions, though consumer confidence declined further in Q1.

The company highlighted that despite geopolitical turmoil, the Danish market remained relatively stable with high employment rates and core inflation below 2%, though mortgage rates showed a slight upward trend in early 2025.

As shown in the following chart depicting consumer confidence and mortgage rates in Denmark, the market fundamentals remain mixed but generally supportive:

Quarterly Performance Highlights

HusCompagniet reported Q1 2025 revenue of DKK 635 million, a substantial 31% increase compared to DKK 483 million in Q1 2024. However, profitability metrics showed pressure, with EBITDA declining to DKK 17 million from DKK 21 million in the prior-year period, resulting in an EBITDA margin contraction to 2.6% from 4.4%.

The company attributed the margin compression to changes in product mix, higher material costs, and increased staffing to support sales growth. Additionally, a timing effect in the semi-detached houses segment and the acquisition of 12 apartments in Sweden impacted quarterly results.

The following slide summarizes the key financial metrics for Q1 2025:

Sales volume showed impressive growth across all segments, with total unit sales up 31% year-over-year. The detached houses segment, which forms the core of HusCompagniet’s business, saw sales increase by 18%. Semi-detached houses grew by 36%, while wooden houses surged by 175%, supported by a 15-unit B2B contract.

The sales momentum is clearly illustrated in the following chart showing quarterly sales units and segment development:

Deliveries also showed positive momentum, increasing by 17% overall, primarily driven by the detached houses segment. However, the semi-detached segment experienced timing issues with some projects postponed, as shown in the following delivery data:

Detailed Financial Analysis

A particularly encouraging sign for future revenue was the 61% growth in order backlog, which reached DKK 2,091 million compared to DKK 1,297 million in Q1 2024. This substantial increase provides strong visibility for future quarters and supports the company’s full-year outlook.

The order backlog growth by segment is illustrated in the following chart:

Despite the strong top-line growth, HusCompagniet’s free cash flow deteriorated to negative DKK 14 million from negative DKK 3 million in Q1 2024. Gross profit increased by 9.7% to DKK 124 million, but the gross margin contracted significantly to 19.5% from 23.3% in the prior-year period.

This margin compression continues a trend observed in previous quarters. In Q4 2024, the company reported a gross profit margin of 22.1%, indicating ongoing pressure on profitability despite revenue growth.

Forward-Looking Statements

HusCompagniet confirmed its full-year 2025 outlook, projecting revenue between DKK 2.8-3.1 billion and EBITDA between DKK 110-160 million. The EBIT guidance was maintained at DKK 70-120 million.

The company expects to deliver between 1,000-1,200 houses in 2025 and noted that dividend distribution would remain suspended throughout the year. Management’s assumptions include a continued market rebound and no severe supply chain disruptions.

The following chart illustrates the historical performance and 2025 outlook for revenue and EBITDA:

April 2025 sales data provided during the presentation showed 75 units sold in the detached segment, 4 in semi-detached, and 8 in wooden houses, indicating continued momentum into Q2 2025.

HusCompagniet’s stock closed at DKK 51 on May 7, 2025, within its 52-week range of DKK 44.10 to DKK 68.00. The company’s focus on sales growth and order backlog expansion appears to be yielding results, though margin pressure remains a challenge that management will need to address in coming quarters.

Full presentation:

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