Bravida is a prominent company in the construction and maintenance of properties, with a stock price of 88.10 SEK. The company has a market value of 17,981 million SEK and a net debt of 2,579 million SEK. Bravida operates throughout the Nordic region, with over 13,000 employees working across more than 180 locations.
The company’s roots trace back to 1922 when twelve small building guilds merged to form BPA. In 2000, BPA merged with the installation business of the Norwegian company Telenor to become Bravida. Since 2015, Bravida has been a publicly traded company.
The largest shareholder of Bravida is Mawer Investment Management, a Canadian asset manager, with a 10% stake in the company. Apart from institutional investors, Staffan Påhlsson, a member of the company’s board, is the largest individual shareholder with shares worth 145 million SEK (0.8% of the shares). CEO Mattias Johansson owns shares worth around 67 million SEK.
Bravida’s business model focuses on being one of the largest installation companies in the Nordics, with a market share of approximately 9% in a market valued at over 300 billion SEK. The company’s operations include electrical, ventilation, heating, sanitation, as well as areas such as sprinklers, cooling, security, and automation.
One of Bravida’s recent installation projects is the upgrade of the Henriksdals wastewater treatment plant in Stockholm, worth 183 million SEK. The company is responsible for HVAC installations, support systems, and ventilation systems. Service projects include checks on electrical and security systems or maintenance of HVAC facilities.
Financially, Bravida aims for 10% growth, of which half should be organic, a margin over 7% Ebita, a debt ratio of about 2.5x Ebitda, and a dividend of at least 50% of net profit. The customer base is diversified, with over 80,000 customers, and historically, no single customer has accounted for more than 4% of revenues.
Bravida’s decentralized business model, known as the “Bravida Way,” empowers local branches to tailor their services to local market needs, fostering specialization and customer relationships. This approach allows for quick adaptation to market changes.
While Bravida has experienced steady growth since going public in 2015, challenges in the construction market have impacted organic growth. The company has seen a decline in organic growth due to a weaker installation market, but service revenues remain relatively stable.
In 2024, Bravida faced a decrease in revenue from installations but offset this with growth in service, resulting in a marginal increase in overall revenue. However, the operating margin has fallen from previous levels, primarily due to challenges in the Danish operations.
The Danish segment, which contributes 23% of net sales, has faced profitability issues, with a margin of around 3% in 2023, significantly below the company average. Despite revenue growth in the Danish service business, profitability has continued to weaken, with a negative operating margin in the third quarter of 2024.
To address these challenges, Bravida appointed Christian Alsø as the new CEO of Bravida Denmark in May 2024. Alsø’s background in turning around businesses with a focus on selective project choices aligns with Bravida’s strategy to improve profitability in the Danish market.
In 2024, Bravida completed nine acquisitions, enhancing its position in Sweden and Finland. With a strong balance sheet and net debt well below targets, the company remains open to further acquisitions to drive growth and expand its service segment.
Looking ahead, Bravida aims to achieve growth through improved market conditions and enhanced profitability, particularly in the Danish operations. While challenges persist, the company’s solid financial position and strategic focus on acquisitions and profitability improvement bode well for its future prospects.