Interim report Q3 2025People Green Innovation Technology

"If we can make it now, we can make it anytime" - an adapted application of Frank Sinatra's stanza from “Theme From New York, New York”. The building materials market continues to experience historically low activity, which is reflected in our financial results. Despite this, Byggma has managed to achieve a surplus during a period of historical low construction activity. This is a clear demonstration of resilience and attests to the fact that all employees at Byggma are aware of their responsibilities. They roll up their sleeves and exert extra effort when needed. We should take pride in this accomplishment!

Housing crisis. As a natural consequence of the extremely low level of residential construction in recent years, the housing shortage in Europe and Norway is becoming increasingly severe. The EU Commissioner for Energy and Housing, Dan Jørgensen, describes the situation in Europe as both a housing crisis and a social crisis. The situation is so critical that, for the first time in history, it is now on the agenda at an EU summit.

The crisis is a direct result of the supply of new homes being far too low compared to demand. Around major cities and popular tourist destinations, the problem is further exacerbated by increased use of Airbnb. The low level of housing construction is due in part to rising interest rates and regulatory requirements that lead to high building costs. This has driven sharp increases in housing prices and rental levels, making it increasingly difficult for many people to afford a home, while those who already own property experience significant value appreciation.

The construction industry is Norway’s largest mainland sector, yet it has received limited attention from the government. The industry has been struggling for several years with high bankruptcy rates, capacity reductions, and a loss of expertise, and has long warned of the impending crisis. The situation is now shifting from being an industry-specific crisis to a social crisis affecting society as a whole.

Counter-cyclical policies and tangible measures are essential to address the situation. In Europe, the issue is now on the agenda at a summit, and an “Affordable Housing Plan” is being developed. In Norway, there are also lofty ambitions, such as a target of 130,000 new homes by 2030 and a 72-point action list. Industry professionals, however, see little impact. Activity remains low and is expected to stay that way in the coming years. The government appears to have unwavering confidence in its own policies. In the national budget, it assumes housing construction will grow by 11.7% in 2026, while Statistics Norway forecasts a decline of 2.7%. Who should we trust when planning and budgeting for next year? For 2023, 2024, and 2025, the Ministry of Finance projected growth in housing investments of 1.6%, -4.0%, and 12.1%, respectively. The reality was -15.0%, -17.0%, and the outlook for this year remains persistently weak.

We must start holding politicians accountable for results—not just words and ineffective actions and targets.

The way forward. While we cannot control the market, we can manage our priorities and actions to outperform the market and increase our market share. Although significantly fewer homes are currently being built in the Nordic region than are needed, a theoretical order backlog is forming, necessitating the construction of even more homes in the coming period to catch up. In recent months, the number of housing units sold has exceeded the number of housing units started, which is often a leading indicator that construction activity will increase in the future. There are growing signs that the market has bottomed out, but predicting the speed of normalization remains challenging. As the market gradually recovers, we are committed to improving ourselves and preparing our businesses for the anticipated increase in demand.

At Byggma, we have excellent machinery and equipment, but our most valuable resource is our people. Without your dedication, Byggma would not hold the position it does today. Thank you for your efforts so far in 2025. I look forward to continuing our work together in the future!