Three phases for profitable growth

The strategic effort to achieve profitable growth progresses through three phases: Stabilise business, Ensure profitability and Grow business. However, the challenging market situation means that all markets had receding business volumes in 2023. The market must turn around before growth can be relevant.  

Three phases

Our markets differ as regards competition, degree of consolidation and government regulations and plans for residential development. Moreover, our business units differ in the degree of maturity and standardisation. That is why there are differences in the strategic plans of the business units for moving on to the next phase. Over the long term, all of the business units will either progress through the three phases or be wound down.

Phase 1: Stabilise business

The first phase focuses on stabilising the business. The purpose is to ensure sufficient continuous volumes for sustainable operations, and address challenges related to an operation without growth. In this step, we will assess whether the operation has the conditions to take the next step in which we can ensure profitability, or if it should be wound down.

Phase 2: Ensure profitability

The second phase is to ensure profitability and minimise variations in profitability among projects, and at the same time to ensure commercial excellence and to develop more well-defined building systems and repetitive processes in order to pursue cost-efficient production. Ensuring profitability also includes investments in building rights in order to achieve a stronger presence and position.

Phase 3: Grow business

The third phase is growing the business. For the business units in this phase, repetitive production processes and building systems are well defined and established. Optimising investments in building rights based on risk and return in combination with evaluating and introducing new business models to meet customer needs and utilise growth opportunities ensures a stable, profitable and growing business over time.

Targets and interim targets

By starting the right projects with proper control of costs, we will reach our target of at least 10 per cent in operating profit before items affecting comparability starting from 2026. Return on equity will total at least 15 per cent over time.