Peab’s four collaborating business areas
Peab’s business model consists of four collaborating and specialized business areas structured on the conditions in each of their markets, allocated geographically and by product segment. For developments and results in 2021 please see the Board of Directors’ Report.
Business area Construction
Sustainable construction close to customers
With local roots close to customers business area Construction does contract work for both external and internal customers. Construction projects include everything from new production of housing, public and commercial premises to renovations, extensions and rebuilding as well as construction maintenance. The business area’s operations are run through some 150 local offices all over the Nordic region, organized in thirteen regions in Sweden, three in Norway and two in Finland. There are specialized entities in housing production in Stockholm, Gothenburg and the Öresund region.
Trends and driving forces
- Continued high demand for homes and public premises in the Nordic region, some reservation concerning offices and retail space.
- Population growth and an aging population are factors that over time drive demand for construction.
- From the drawing board to production the process is becoming increasingly digitalized.
- More construction projects are permeated by focus on the environment and climate as well as certifying buildings.
- Uncertainty regarding the price of material and energy can affect construction costs.
Peab’s position
One of the largest actors in construction in Sweden in terms of net sales and number of employees. Peab has considerable operations in Norway and Finland.
Net sales
SEK 27.0 billion
Operating margin
2.6 %
Employees
5,796
Business area Civil Engineering
Ties people and communities together
Business area Civil Engineering builds and maintains infrastructure such as roads, railroads, bridges, ports as well as pedestrian and bicycle paths. Focused on the local market, operations do landscaping and pipelining, foundation work and diverse construction. The business area also operates and maintains national and municipal highways and street networks as well as tends parks and outdoor property. It is organized in geographic regions and specialized product areas.
Trends and driving forces
- The Nordic civil engineering market is characterized by continued major investments in public infrastructure and large industrial projects.
- Access to the right expertise continues to be the most significant factor limiting further expansion.
- Much greater focus on the environment and sustainability, particularly by customers in the public sector.
Peab’s position
Leading civil engineering actor in Sweden with operations in Norway.
Net sales
SEK 14.2 billion
Operating margin
3.3 %
Employees
3,634
Business area Industry
Complete supplier focused on climate change
Business area Industry delivers products and services needed for construction and civil engineering projects. Its offer includes industrial construction, strategically placed quarries, asphalt and concrete, recycling of production waste as well as rental of construction equipment and cranes. Industry is organized in six product areas complemented by a number of strong, local brands such as Swerock, Peab Asfalt, Lambertsson and Byggelement.
Trends and driving forces
- Market development follows flows in economies and public investments.
- High activity in the construction and civil engineering market generates a big demand for concrete, paving, mineral aggregates and rentals.
- Growing portion of climate-adapted products and circular material.
Peab’s position
One of the leading actors in all segments in Sweden. Growing position in Norway and Finland with some operations in Denmark.
Net sales
SEK 18.8 billion
Operating margin
5.0 %
Employees
5,110
Business area Project Development
Develops sustainable urban environments, residential and commercial properties
Business area Project Development is responsible for the acquisition, development, management and divestment of housing, commercial property, public property and entire city boroughs. Project development takes place in wholly owned projects or with other partners in joint ventures. Housing Development develops homes for private homebuyers and investors while Property Development acquires, develops, manages and divests commercial property.
Trends and driving forces
- Due to the continued significant underlying need for housing market conditions in the Nordic region are considered good.
- The need for public buildings is rising.
- The demand for modern, flexible and environmentally-adapted offices in good locations will continue to be strong.
Peab’s position
One of the largest housing developers in Sweden with significant operations in both Norway and Finland. Peab is a growing actor in commercial property development in Sweden, Norway and Finland.