Selvaag Bolig ASA: Q3 2025: Good sales and solid profitability

Selvaag Bolig has started construction of 354 homes and delivered 172 homes to buyers during the first three quarters of the year. At 30 September, Selvaag Bolig had 1,051 homes under construction with a total sales value of NOK 7.5 billion. 64 per cent of these homes were sold at the end of the quarter, and 90 per cent of the homes to be completed this year were sold.

“We are pleased with the results for the quarter. The strong performance is partly due to effective cost control and having attractive projects in prime locations,” says CEO Sverre Molvik.

During the first nine months of the year, Selvaag Bolig has sold 406 homes for a gross value of NOK 2,689 million.

“Following two interest rate cuts this year, there are signs of optimism in the market. We are planning several major sales launches over the next six months and have a positive outlook for sales going forward. In the fourth quarter, we have guided to complete 261 homes, which will make a solid contribution to the 2025 results,” says Molvik.

A webcast of the presentation will be available from 08:30 here. An English transcript of the presentation will be made available on the company’s website.

Highlights of the third quarter 2025 (third quarter 2024)

• Gross sales* amounted to 93 homes (116) with a sales value of NOK 674 million (NOK 801 million).
• Net sales were 85 homes (100) with a sales value of NOK 600 million (NOK 679 million).
• No new construction starts (43), completions of 114 net (5) and deliveries of 98 net (54) to buyers.
• 1 051 homes net under construction (700) with a combined sales value of NOK 7 457 million (NOK 4 495 million).
• 64 per cent (67 per cent) of homes under construction sold at 30 September.
• 38 completed homes (87) unsold at 30 September.
• IFRS**: Operating revenues of NOK 568 million (NOK 225 million), EBITDA adjusted for financial expenses NOK 73 million (NOK 4 million), corresponding to a margin of 12.8 per cent (1.6 per cent).
• Proforma IFRS** including Selvaag Bolig’s share of joint venture projects: Operating revenues of NOK 659 million (NOK 332 million). EBITDA adjusted for financial expenses NOK 90 million (NOK 19 million), corresponding to a margin of 13.7 per cent (5.8 per cent)
• Earnings per share: NOK 0.25 (NOK -0.05).
• NGAAP***: Operating revenues of NOK 691 million (NOK 516 million), EBITDA of NOK 62 million (NOK 31 million), corresponding to a margin of 8.9 per cent (6.0 per cent).
• Proforma NGAAP*** including Selvaag Bolig's share of joint ventures: Operating revenues of NOK 785 million (NOK 689 million). EBITDA of NOK 80 million (NOK 50 million), corresponding to a margin of 10.2 per cent (7.3 per cent).

 
Highlights of the first nine months of 2025 (first nine months of 2024)

• IFRS**: Operating revenues of NOK 996 million (NOK 1 473 million), EBITDA adjusted for financial expenses NOK 68 million (NOK 233 million), corresponding to a margin of 6.8 per cent (15.8 per cent).
• Proforma IFRS** including Selvaag Bolig’s share of joint venture projects: Operating revenues of NOK 1 202 million (NOK 2 180 million). EBITDA adjusted for financial expenses NOK 107 million (NOK 324 million), corresponding to a margin of 8.9 per cent (14.9 per cent)
• Earnings per share: NOK 0.05 (NOK 1.40).
• NGAAP***: Operating revenues of NOK 1 967 million (NOK 1 666 million), EBITDA of NOK 183 million (NOK 124 million), corresponding to a margin of 9.3 per cent (7.5 per cent).
• Proforma NGAAP*** including Selvaag Bolig's share of joint ventures: Operating revenues of NOK 2 353 million (NOK 2 222 million). EBITDA of NOK 254 million (NOK 200 million), corresponding to a margin of 10.8 per cent (9.0 per cent).
• Gross sales* amounted to 406 homes (505) with a sales value of NOK 2 689 million (NOK 3 243 million).
• Net sales were 360 homes (446) with a sales value of NOK 2 328 million (NOK 2 824 million).
• Construction starts of 354 homes net (261), completions of 132 net (346) and deliveries of 172 net (360) to buyers.

 
* Units sold are sales contracts entered into with customers pursuant to the Norwegian Housing Construction Act and the Tenancy Act in Sweden. In accordance with the IFRS, they are recognised as income on delivery. Net sales include Selvaag Bolig’s share of joint venture projects. Gross sales include all homes in joint venture projects.
** Pursuant to the IFRS, all profit is recognised when the homes are delivered to the buyer. Profit pursuant to the IFRS accordingly derives primarily from homes which began to be built roughly two years ago.
*** The accounts pursuant to Norwegian generally accepted accounting principles (NGAAP) utilise the per centage of completion method. This means that profits are recognised on the basis of construction progress and sales in the projects. That presents ongoing value creation in the company.