Significant need for homes and public buildings

Operations in business area Construction are run via 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 housing production units in Stockholm, Gothenburg and the Öresund region. Construction maintenance operations are run in a nationwide organization in Sweden focused on big city regions. Other regions are responsible for all types of construction projects in their geographic area.

The Business 2021

In 2021 housing construction increased and there is a growing need for public buildings like schools and sports facilities. We – along with more and more customers – continue to work towards more climate smart construction and sustainable products. Many of the properties we build are energy efficient and environmentally and climate certified, particularly the projects Peab develops on its own. The year has also been marked by dealing with rising material and energy costs and alternative solutions to cement in concrete.

In 2021 housing construction increased and there is a growing need for public buildings like schools and sports facilities.

Major housing shortage

Housing represents a substantial portion of net sales in the business area and an increasing amount of order backlog. During the year we continued to develop our new concept for predesigned apartment buildings, NärBo, which is a modifiable, cost-efficient and sustainable Building Type Concept. The first finished product in the concept was a low-rise apartment building. In 2021 we developed a NärBo tower block.

During the year business area Construction has received a number of housing projects all over the Nordic region. In Lin­nésta­den in Kal­mar Peab is building 162 rental apartments for PPE Fas­tig­he­ter i Kal­mar AB. The apartment building will made of mo­der­n ma­te­ri­al­ and be energy efficient. On Öster Mä­lar­strand in Väs­terås Peab is building 183 rental apartments for Bo­stads AB Mimer. The pro­ject has a laser focus on the environment and will be certified according to Mil­jö­bygg­nad Sil­ver. In Stock­holm the second stage of construction of student quarters continues in Lapp­kärrs­ber­get (Cam­pus Lap­pis) for Stock­holms Stu­dent­bo­stä­der. This project will also be certified according to Mil­jö­bygg­nad Sil­ver and adds another 182 stu­dent apartments. In Jön­kö­ping Peab is building 149 rental apartments for HSB Göta. One of the building materials used is ECO-​Betong (ECO-Concrete) that reduces carbon emissions. There will also be sol­ar panels on the roof and a big recycling room for simpler waste sorting.

In Ålesund in Norway Peab is building the third and final stage of the apartment pro­ject Fri Sikt with 46 new apartments in a 14 story apartment building with a view over the fjor­d. When the building is ready there will also be a completely new city borough surrounding it. In Pors­grunn in Lar­vik Municipality Peab is building 46 rental apartments for Ma­jor­bygg, a joint venture owned by Peab and PBBL. The pro­ject will be Swa­n ecolabeled and the building and construction ­ma­te­ri­a­l as well as the actual building process will meet comprehensive demands on energy consumption, chemicals and quality.

I Fin­land Peab is building 179 apartments in Oulu. The customer is He­alth City Fin­land Oy and the apartments will be allocated in two high-rises. Peab is building two high-rises in Vanda as well with a to­tal of 159 apartments for Sato-​Rakennuttajat Oy.

Government investments in public buildings

Our order books have been filled with different kinds of public buildings in 2021 due to the growing population in the Nordic region. The need for new schools and universities is on the rise and Peab has started construction on a number of schools during the year. One example is the Wes­terlunds­ka High School in En­kö­ping which will accommodate 1,600 students, 200 teachers and other personnel. The school will be built with natural and robust material and have a wooden and brick frame. The project is permeated by a focus on sustainability and climate consideration.

Peab is building an elementary school with a gym and swimming pool in the Norwegian municipality of Kau­to­ke­i­no. The Lappish culture is a fundamental component of the architecture and the school will be designed space efficiently and according to national requirements with the extensive use of solid wood. In Finnish Turku Peab is extending the Sirkkala School and renovating premises from different eras.

There is a substantial need for new swimming facilities in Sweden and Peab has extensive experience in building these. During the year Peab signed contracts to build a number of swimming facilities. In Ud­de­val­la a new swimming pool is being built in the Rim­ner area for Ud­de­val­la Municipality. In Snurrom in Kal­mar Peab is building a new pool and wellness facility at Kun­skaps­por­ten and in Årjäng in Värm­länd Peab is building a new pool facility with a relaxation section.

During the year Peab was commissioned to build several prisons and jails, among them Skän­ning­e Prison outside Mjöl­by with two new housing sections containing a total of 96 cells and premises for work and studies. The buildings will be certified according to Miljöbyggnad Gold.

Peab is building a retirement home with 90 apartments in Jönköping and a nursing home in Oslo for 130 residents and a day activity center in a four story building of solid wood. The nursing home will be environmentally certified according to BREEAM Excellent and be a zero emission building. Peab is also building hospitals at several sites in the Nordic region and Southern Älvsborg Hospital in Borås and The County Hospital in Kalmar are two major projects about to be turned over to our customers.

Other major projects

Peab has been commissioned to build a new poultry production plant for the food company Atria in Seinäjoki. The new factory building will be 200 meters long and 130 meters wide making up a total area of 36,000 m². Peab has been commissioned by Forsvarsbygg to build a hangar, warehouse, workshop and administration building for military flight surveillance airplanes at Evenes Airport in Northern Norway.

Net sales

Net sales for 2021 was unchanged and amounted to SEK 26,980 million (26,989). Net sales in Sweden and Norway increased while it decreased in Finland. The proportion in net sales of housing and public sector projects has grown compared to last year.

Profit

Operating profit for the year increased amounting to SEK 711 million (663) and the operating margin improved to 2.6 percent (2.5). Earnings increased in both Sweden and Finland during the year while the operating profit contracted in Norway.

Orders received and order backlog

Orders received increased by 16 percent in 2021 to SEK 30,903 million (26,597). The orders received are well spread regarding products and location even though a large part consists of housing.

Order backlog on December 31, 2021 was SEK 30,142 million compared to SEK 26,558 million at the end of December 2020. There is a higher proportion of housing as well as schools and educational premises than at the end of 2020. Risk in the order backlog is well spread since 91 percent (89) of the projects are under SEK 500 million.