Thank you for taking the time to join us our call today about HusCompagniet full-year results for 2025. I'm Martin Ravn-Nielsen.

I'm CEO of the company, and as usual, CFO, Allan Auning-Hansen, is with me on this call. Let's go straight to slide two and a brief overview of our '25 performance.

We continue to see a gradual market rebound from the drop in sales in 2023 and 2024. Sorry, we have some technical issues here.

Do you still hear us?

Thank you. The rebound followed the overall Danish housing market with an imbalance between supply and demand, at least in the larger cities and urban areas.

We still maintained positive sales traction across the Danish segments, supporting a revenue lift of 29% to 3 billion, and our net order book was worth almost 2.3 billion at year-end. On the negative side, we face challenges and unsatisfactory performance in semidetached.

This impact profitability, which dropped to 61 million and a EBITDA margin of 2.1%. Overcoming the challenges in our B2B business is a key priority to us, and we are focused on returning to the core in semidetached.

We will get back to this. On the positive note, we are proud that customer loyalty remained high with a industry-leading Trustpilot score at 4.8 based on more than 7,400 reviews.

This was secured despite critical media coverage in June month over issues with crumbling mortar joints in detached houses been constructed during the period of 2017 to 2022. We increased the number of houses sold and delivered, and we celebrated the one-year anniversary of Formium, our high-end detached brand.

The concept has been very well received after the launch. Early this year, we opened a dedicated Formium office in Aarhus as well to meet growing interest for exclusive, tailor-made houses in Jutland.

In the same period, we reopened a dedicated showroom and office in Horsens. I'll come back to that later.

With this introduction, let's go to slide three for just a few more comments on the market. The Danish economy remains solid throughout the year, supported by a high employment rate.

Core inflation was around 2%, and the long interest rate were fairly stable. On the other hand, consumer confidence took another turn for the worse in '25 after a positive trend in the second half of '24.

This continued negative perception was reflected in our detached business in the second half of '25. The KPI has improved in first month of '26, and we are monitoring the situation, as always.

Our hope was less global political turmoil in '26. Instead, we have seen another great conflict erupt over the last week.

However, we remain prepared to leverage opportunities in the market. This also means that we remain cautiously optimistic for '26 despite the low visibility and continued volatility.

A lend this slide at a broader outlook on the market opportunities. At the beginning of '26, the Danish Ministry of Urban and Rural Districts published a report on the expected Danish housing expansion until 2034.

Municipalities plan construction of 250,000 new homes, including 50,000 new detached houses in the period. Also in Sweden, the government has proposed incentives to increase real estate transactions by offering an increasing the loan ratio.

We welcome such political incentives and look forward to contributing. Please turn to slide four and comments from Allan about Q4 highlights.

Thank you, Martin. In Q4, revenue increased 22% to 789 million, driven by all segments.

The main drivers were an increased number of deliveries in detached and wooden houses, combined with higher average selling prices in the Danish segments. In addition, there was a good contribution from work in progress in semidetached.

Sales were lower across segments compared to a strong end to 2024 and impacted by the decline in consumer confidence in 2025. Gross profit came to 118 million for a margin of 14.9%.

Gross profit in detached and wooden houses was stable, but lower in semidetached due to the negative effect of the challenges in the three B2B projects. The margin was positively impacted by wooden houses, but offset by provisions to potential future cases related to crumbling mortar joints in detached.

Please note that the recognition of this provision relates to potential future commitments and does not reflect an increased number of registered cases in the quarter. The provision is based on a third-party evaluation, which has provided a stronger foundation for estimating the number of cases.

This estimate is still subject to uncertainty. EBITDA amounted to 15 million for a margin of 1.8% compared to 23 million and 3.5% last year.

The decline was mainly due to the development in gross profit and slightly higher staff costs following the balanced ramp-up of our organization since last year. EBIT came to 1 million, down from 12 million last year.

Free cash flow amounted to 128 million, up from -21 million last year, mainly supported by changes in working capital following a high number of deliveries at the end of the period. Let us go to the full-year highlights on slide five.

Revenue grew as expected and reached 3 billion in 2025, an increase of 29%. The progress was driven by higher sales in our Danish segments, mainly in first half of the year, and the activity level was high, and we delivered more detached and wooden houses in 2025.

Gross profit was 488 million and a margin of 16.5%. The increase in gross profit was driven by the detached and wooden houses segments.

The detached segment was aided by slightly improved average selling prices. The margin decline was due to the negative effect of the previously mentioned challenges in semidetached.

The three-challenge B2B projects will also impact profitability in 2026 and the first half of 2027. EBITDA was 61 million for a margin of 2.1%.

The margin decline was caused by the same elements as the gross margin, and in addition, we had higher SG&A costs, mainly due to the balanced ramp-up of the organization in first half of the year, combined with higher marketing costs. The ramp-up was initiated to support higher sales and execute on increased order backlog.

Following the slower Q4 sales, we adjusted the organization in January this year. Still, we do not see structural or macroeconomic indicators of a longer-term drop in sales, but as mentioned earlier, it is a volatile market we are operating in.

Our main focus in 2026 will be our core business and operation. EBIT amounted to 15 million compared to 56 million last year.

Free cash flow was stable at 102 million after changes in net working capital and higher investments in the year. Martin will now provide more insights to the changed market approach in semidetached, please turn to slide six.

Thanks, Allan. After the unsatisfactory performance in semidetached business, we have reviewed the order portfolio and revisit our internal processes.

This includes calculation, tendering, contracts, and internal cooperation, as well as collaboration with developers. We are evaluating our approach to the market and identifying ways to improve performance again, profitability over growth.

Going forward, we will return to the core of the semidetached business and do what we are best at, and it means that we will change our profile from being a contractor to being a developer-focused, focused on our own projects, B2B and B2C. A few good and recent examples include a B2B project with PFA in Aalborg named Rughaven, completed in '25, and a recent completed project in B2B in Skævinge in north of Zealand.

We also engage in carefully selected low-complexity projects with clearly defined risk profiles and execution frameworks. We will have focus on long-term partnerships with key customers.

At the same time, we will look for more opportunities to build on our own land and collab with partners with our house concepts on their land plots. In these cases, we will be drawing on our standard principles and framework, which have proven successful in the past.

We will leverage our core competence to optimize our ability to execute on the projects we engage in. We have begun improving process across the semidetached business to be more effective.

A part of that process, we have drawn on learnings from both the challenge projects and the successfully completed projects throughout the years. We will be financially impacted by the challenge projects in our existing order book in '26 until the first half of '27.

With this, I will return to the '25 developments, first looking at the sales, and please turn to slide seven. In '25, total sales grew by 7% to 1,509 units, driven by progress in Danish segments.

Sales in wooden houses segment declined six, corresponding to six units. This overall sales increase was recorded in the first three quarters of '25, while we saw a decline in Q4.

This was mainly due to the damped sales after a decline in consumer confidence in '25. Detached sales increased by 4% based on a solid performance across the country, and we maintained a market share in the level 17% to 18%.

While the activity level remained high in larger cities and nearby areas, we noted how access to financing remains more challenging for customers in rural areas. As I mentioned in the beginning of this call, we have reopened our office and showroom in Horsens.

The office marks a physical return to a key regional market. It also introduce our first new concept showroom, with architectural materials and design solutions presented in a structured and a new way.

This enabled customers to better understand the implications of the choice, including budget considerations and what it takes to build a new house. We will also here in March launch the new concept in a big showroom in Søborg near Copenhagen, instead of the current detached showroom in Virum.

About a year ago, we established Formium, our exclusive brand for architect-designed premium homes. After 12 months, the brand has proven its commercial viability and market relevance on Zealand.

We have also seen a rapid growing interest from customers in eastern Jutland, and therefore, we have opened a Formium office as well with exclusive showrooms in Aarhus, and already sold several houses. The new location provide customers with a high curated experience, supported by in-house architects, engineers, construction managers, and specialist advisors.

In total, we now have dedicated strong team for more than 20 employees serving our Formium concept. Semidetached sales grew by 13%, driven by three larger announced projects and some smaller ones.

At year-end, the projects were all unconditional, meaning that we can execute according to plans aligned with the customers. Looking at the development in the two first months of '26, we sold 105 units in detached and six in semidetached and 10 houses in Sweden.

On that note, let's go to slide eight and update on deliveries. The increased sales during 2024 and in early 2025 had a positive impact on deliveries, which grew by 15% to 1,031 units.

The progress was driven by 21% increase in the detached segment and 40% increase in wooden house. In semidetached, the number of deliveries declined by 10%.

In the first two months of this year, we delivered 77 units in detached, zero in semidetached, and 14 in Sweden. Please go to slide nine, and Allan will take us to our order backlog.

Thank you, Martin. We continued to build our net order backlog in 2025, and it reached 2.3 billion at year-end.

This was an increase of 21%. The positive development was driven by the Danish segments.

Detached accounted for 58% of the total order backlog, semidetached 37%, and wooden houses for the remaining 5%. We are pleased to note that we enter 2026 backed by an increased order backlog.

We will now move on to the financial outlook for 2026. Please turn to slide 10.

We saw stabilization and a gradual rebound in the housebuilding market last year, as macroeconomic indicators remained solid. Core inflation was around the 2% mark, and interest rates were quite stable.

Also, consumer confidence has actually improved slightly in recent months after declining in 2025. While the macro trends are sound, the uncertainty has still been leading to increased cautiousness among homebuilders in Q4 and the beginning of this year.

It means that we are facing low visibility, continued volatility, and higher price sensitivity, also on the back of global geopolitical turmoil and conflicts. Furthermore, the winter season was unusually cold, causing delays in more deliveries and initiation of work.

We are working on this to catch up, but we're also very much focused that we ensure the customer's quality and the quality in the houses. Based on the higher order backlog, we expect moderate growth in 2026, with revenue in the range of 3 to 3.3 billion.

We assume that we'll deliver between 1,000 and 1,300 houses this year. Earnings are expected to improve as well, with a 2026 EBITDA in the range of 70 to 130 million.

This is based on the market perspective I just highlighted and impact from the three-challenge B2B projects, which will affect profitability until the first half of 2027. In addition, we will see an effect of higher SG&A costs due to the full-year effect of the organizational ramp-up.

We are monitoring inflation and costs closely and will mitigate if needed. EBIT is expected to be in range of 15 to 75 million.

The EBIT level is impacted by higher depreciations following investments in new showrooms at several leased locations. There will be no dividend distribution in 2026, and dividends are not expected to be reintroduced before our leverage is below two times net debt to EBITDA.

With this, we want to thank you for listening in. Please turn to next slide for the Q&A session.

Yes, thank you. I have a few questions.

I'll just do them one by one. Firstly, on your updated strategy for semidetached, if I should summarize, it sounds like you're going from a growth focus to a profitability focus.

While that makes a lot of sense, I'm just curious how your factories fit into this equation, because you also highlight being more selective and disciplined, which I would interpret as something which ultimately could lead to lower volumes. Yet you are dependent on having a optimal utilization of your factory.

Can you just elaborate on that balance, please?

Thank you for your question, Christian. You are correct.

When we look ahead, it's more a profitability than growth focus that we clearly have in the semidetached segment, also learning from the past year, especially. It also means that in terms of strategy for the factory, it will still be a supporting element to our semidetached business.

It's also something we have worked with the factory around to be able to operate on a more standalone basis and serve and provide huselementer, which is something that we already sell to various customers. We are operating with the factory in terms of being more specific and more able to stand on alone basis, while still support the B2B business.

Previously, it was mainly a focus of supporting the B2B business, but we do see a demand for huselementer products as well.

All right. That makes sense.

Then another part of your updated strategy is a focus on pursuing opportunities to build on own land. Yet when we look on your balance sheet, the level of own land is almost unchanged versus '24, and materially below the levels in '22 and '23.

To what degree is your current financial leverage really a challenge to accelerate that part of the strategy?

Yes, and thank you again, Christian. All in all, I think when we look at own land, there are various ways of getting that financing in place.

We are looking at various ways of being able to do that. I also think that we have a very good dialogue with the bank around these elements, which also has shown support in our dialogues with them.

We have some interesting projects, especially when we look in 2027 and onwards. That's why we are going to be focusing more on own land, and then own land can come in various ways.

All right. Fair enough.

Then you highlight that we should expect these effects to materialize in 2028. Does this also mean that we should expect you to target an EBITDA margin of these 8% to 10% by 2028 in semidetached?

I would say, on the longer run, it's still our ambition to get to that level. What we are saying is that the B2B projects and the three-challenge B2B projects we have, they are going into 2027 or, unfortunately, impacting a part of 2027.

Then we consider that towards a normal, to say, EBITDA margin level from there.

Okay. The target is still 8% to 10%?

Our target is still 8% to 10%, that's correct.

Yeah.

Christian, also in the past, we have seen semidetached projects on own land have better margins, of course. Therefore, when we have more own land going forward, then we can see another split in B2B projects, semidetached projects, but also B2C projects.

It's both of those kind of semidetached is in total in our business, and we have more focus also to look into B2C as well, with higher margins.

Understood. Then the last topic I wanted to touch upon is just the SG&A cost in Q4.

It seems quite low. Usually, SG&A is higher in Q4 than Q3, but in '25, it's on par.

Can you tell us what happened exactly?

Yes. Basically, throughout the year, we make a provision for employee bonuses, and based on the results that we have generated in 2025, this bonus is lower than initially assumed.

That's the primary thing for it.

That makes sense. Great.

That was all for me. Thank you.

Thank you, Kristian. Thank you, Christian.

Good morning, Martin and Allan, and also thank you for taking my question. First, I would like to follow up on the Christian's question regarding the factory.

I guess I'm struggling to fully understand what makes you the right owner of the factory if it's not going to play an integrated part of your semidetached strategy, and they have to acquire most of their volumes themselves, because, to my knowledge, these factories have never, on a standalone basis, been in a strong business model, at least we don't have a lot of evidence for that historically here in Denmark. Sebastian,

thanks for your question. The way that we look at it is that the factory is still a supporting element to our semidetached business, also when we look at the future for now, and it also supports our B2C business with the construction of the roof cassettes.

I would say historically, also selling huselementer has been a rather profitable business for the factory. I would say there are several elements that means that where we are from now, we still think we're the right owner of the factory.

Okay. No, that's very clear.

Thank you, Allan. Then I would like to ask a question about the detached sales trends.

We've seen a slow, but fairly steady recovery since '23, and now in the quarter, sales are down, units-wise, more than 20%, and also it seems like current trading in January and February has been turning somewhat softly. I know uncertainty is high, and, obviously, there's a lot of things going on outside the borders of Denmark.

Are you seeing anything sort of fundamental reasons why we're seeing this slowdown? Have your overall expectations for a continued recovery, are those still in place?

Thanks again, Sebastian. If we look at the Q4, and as you said, on the back of our publication of the Q3 financials, Q4 sales are lower than we expected on the back of more uncertainty, and we also saw consumer confidence decline further in the second half.

What we have seen lately is that consumer confidence has improved over the past couple of months, and what we see from our activity and from our lead generation is that we are more positive going forward. This being said, and as you also recalled here, is that it is a very uncertain time, and lately only a week ago, we saw a war in the Middle East initiate.

I would say, looking ahead, we are slightly optimistic, but as you also said, this is very uncertain times.

Okay. Again, what do you build this optimism on, Allan, if I may ask?

Sure. Overall, our macroeconomic indicators are pretty strong in Denmark.

Unemployment rate is low. Consumer confidence has declined recently.

I would say, all in all, based on the activity that we see from our leads, we are more positive when we look into the coming months. Time will show, based on all this macroeconomic volatility that we see right now.

That's where we are.

Yeah. Sure.

No, that's completely fair. Just my last question.

You allude to a unusually cold winter. I'm just trying to get my head around, do you expect to fully catch up the lost activity here in Q1, or is there sort of a net negative earnings impact embedded into your '26 guidance from winter effects?

I would say

over the year, we do expect to catch up. I would say here in the next coming quarters, we do expect a delay, to say, because of these challenges, and for us, it's very important also to ensure a high quality on the houses that we deliver.

For sure. No, that's very clear.

Thank you for taking my questions both.

Thank you, Sebastian.

Thank you very much, and hello, Martin and Allan, and thank you for taking my questions as well. Going back to what you mentioned on the FTE side, of course landing at 508 on the year-end, which is an all-time higher, I suppose.

Now you've adjusted it a bit. Can you just allude to where we are currently on the FTE side, and where should we see this going forward?

I don't want to go too much into the details of that, Anders, in terms of future perspectives. I think what we did was, if you look at the 508, it's a combination of an increase in both white collars and blue collars.

Due to the significant increase in activity in our factory in Esbjerg, we have increased blue collar employees significantly as well. From a white collar perspective, we did make a balanced ramp-up to support the increased sale and to support the number of deliveries which is taking place here in 2026.

As you can also see from our order backlog and the increase in net order backlog, which is up 20%, it requires additional FTEs to support that. That is the main driver behind the increase in FTEs.

In January, we made an adjustment in our FTE base based on the situation and what we're looking into right now, and focusing very much on our core operation. Okay.

Thank you. I guess it's still fair to assume that your current FTE base should be able to sustain a quite a lot higher detached unit sales than what we're currently seeing and currently looking into.

Can the current sales force that you have, can they sustain a detached unit sale of more than 1,000 units per year?

No, they would not be able to do that.

That is very clear. Thank you.

What we sold in 2025, Anders, was 780 units. Assuming that the current sales force should capture additional 200 units is not going to happen.

That is very clear. Thank you.

If I may move on to the provisions that you mentioned for the detached segment that you booked here in Q4, just to be clear, can you talk about how big a provision it is you've made in terms of the future remediation cost of the mortar joints, and does you making this provision change the stance that you have on the ongoing arbitration case?

Starting with the latter, no, it does not change anything. On the contrary, I would say that the insights we have gained from the work leading to the provision supports our standing in this case.

What I would say is that I fully understand why you want more insights on the numbers, but as in previous quarters, it's something we have not decided to share. That's super

reasonable. A last question from my side, then, but it's baked into one here.

We've seen some quite lumpy earnings for all the segments this year due to various reasons, and now you come with a guidance for '26, but I was wondering if you could maybe guide us even further to what gross margin assumptions one should assume, or what you currently assume, for the different segments for 2026?

Without being too concrete, what we're looking at was a semidetached margin in 2025, which was significantly negatively impacted by the write-downs that we had to do on various projects, unfortunately. We do expect an increase in the gross margin in the semidetached segment.

In the detached segment, we do expect a decrease in the gross margin. We saw a market which was more under pressure in Q4 than we had expected, and therefore, also the sales that we made back then is something that we're going to deliver on here in 2026.

In general, we are very much focused on our market share in combination with profitability, and we are balancing those two all the time.

Thank you very much. That was all for me.

Thank you, Anders.

Yes, thank you. I just want to clarify what you just said, Allan.

You said you expect a lower gross margin in detached. Is that including the provision you do in Q4, so, i.e., lower than the 18.8% you report for the full year?

I expect to be somewhere without being too concrete in that range.

Understood. Thank you.

We would like to thank all of you for your interest in HusCompagniet. Please reach out if you have any following-up question, and have a nice day.

Thank you.