Zengun Group AB (publ) Interim Report January – March 2025

“We maintained 2024’s strong operating margin for the quarter, despite a year-on-year decline in net turnover. Our order book is robust and stable though, and we can see that production rates are gradually accelerating for several of our ongoing projects.” Mick Salonen, President and CEO

First quarter

•         Net turnover amounted to MSEK 523.9 (703.8)

•         EBITDA totalled MSEK 31.9 (37.5), corresponding to an EBITDA margin of 6.1% (5.3)

•         Operating profit (EBITA) totalled MSEK 30.3 (35.8), corresponding to an operating margin of 5.8% (5.1)

•         Earnings for the period amounted to MSEK 14.2 (9.0)

•         Operating cash flow amounted to an outflow of MSEK 29.0 (inflow: 80.2)

•         Orders received totalled MSEK 430.2 (1,059.7)

•         The order book amounted to MSEK 3,005.2 (3,147.7)

Statement by the CEO
The current market conditions mean that long-term customer relationships and good references are of particular importance, which has benefited Zengun in the form of new contracts with returning customers and new projects in the opening months of the year. We have started a number of new phase 1 projects, including the landmark Wenner-Gren Center at Sveaplan in partnership with Fabege.

We maintained 2024’s strong operating margin for the quarter, despite a year-on-year decline in net turnover. In the latter half of 2024 we completed several major projects that, over the last few years, had high production rates, which led to this decline. Our order book is robust and stable, and we can see that production rates are gradually accelerating for several of our ongoing projects.

Sustainable business development advances positions
Zengun’s strategic decisions, our business development and operations in our projects are all guided by sustainability. During the quarter, we published our 2024 Annual and Sustainability Report, which provides a good overview of our work with sustainability.

Working with some of the industry’s most driven and innovative clients is both challenging and rewarding, creating a partnership whereby we are advancing the industry one step at a time. Zengun signed a phase-1 agreement with Fabege for Wenner-Gren Center during the period. The Stockholm City Museum has recognised its historical significance through blue listing the 26-storey building, which was Europe’s tallest steel-framed building when it was constructed. Fabege’s high sustainability ambitions, with a focus on reuse, are aligned with Zengun’s.

Zengun also contracted a phase-2 agreement with Bonnier Fastigheter in the quarter for the new construction of the office building Portalen with a total GFA of 17,500 sqm. Portalen, the gateway to the new Stockholms Hamnkvarter, will also be a property with a high sustainability profile where Zengun can contribute with its expertise.

Zengun participated at the Construction Summit held in March under the theme of sustainable business development. The event saw industry players and decision-makers gather to discuss climate targets, the skills supply and the readiness for change in the construction industry. This is one way in which we can share our knowledge and help drive the industry’s development

People – our future
One of Zengun’s strengths is building teams of skilled individuals who complement each other. In this connection, we have admitted students to our trainee program and awarded internships for students from vocational colleges in the quarter. We also have an ongoing partnership with a vocational college and host trainees and apprentices. We are happy to help the industry grow through skills development and job opportunities, and look forward to welcoming more people to a future at Zengun.

Zengun Life is what we call our health and wellness initiative, which is now in its eleventh year. Zengun Life focuses on health-promoting activities that are driven and initiated by our employees. Events this quarter included our participation in the Stafettvasan race. Bringing employees together in informal settings outside of their regular roles strengthens our community and corporate culture, which is so crucial to our growth as individuals and as a company.

Mick Salonen
President and CEO

For further information, please contact:
Mick Salonen, President & CEO, +46 (0) 70 569 66 73
Oskar Björklund, CFO, +46 (0) 79 072 84 57

This information is information that Zengun Group AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted through the agency of the above contacts for publication on 21 May 2025 at 8:00 a.m. (CEST).

Driving projects drives Zengun. We operate in the Stockholm region, in close collaboration with customers and always with the project and people in focus. We help property owners improve their property portfolios in each project by offering know-how and skills as a collaboration and sustainability partner throughout the entire lifespan of the project. We build commercial properties, with a mix of select public-sector properties and residential projects. We take the long term into consideration for our employees, customers and surroundings, and are constantly developing to make each project a reference project. In 2024, Zengun had sales of approximately SEK 2.6 billion and approximately 150 employees. #zengunbyggerstaden