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 2022 please see the Board of Directors’ Report.
Business area Construction
Builds sustainably close to customers
Business area Industry
Total supplier focused on the climate
Business area Civil Engineering
Ties people and communities together
Business area Project Development
Develops sustainable city environments, homes and properties
Business area Construction
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 twelve 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
- High material and energy prices and high interest rates dampen demand on the construction market.
- Population growth drives the need for community buildings.
- More construction projects are permeated by focus on the environment and climate as well as certifying buildings.
- From the drawing board to production the process is becoming increasingly digitalized.
- Access to the right talent is a key factor for construction projects.
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.
Read more about business area Construction on pages 66–68.
Net sales
SEK 29.0 billion
Operating margin
2.2 %
No. of employees
5,671
Business area Civil Engineering
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
- Continued major investments in public infrastructure.
- Several large industrial projects are important for the green transition.
- Continual need for operation and maintenance of roads and streets.
- Right talent is a prerequisite for complex projects.
- Strong 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.
Read more about business area Civil Engineering on pages 69–71.
Net sales
SEK 15.0 billion
Operating margin
3.3 %
No. of employees
3,405
Business area Industry
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, prefabricated concrete elements as well as rental of construction equipment and cranes. Industry is organized in six product areas complemented by a number of strong brands such as Swerock, Peab Asfalt, Lambertsson and Byggelement.
Trends and driving forces
- Market development is driven by national economies and public investments.
- Greater demand for climate-improved ECO-products in construction and civil engineering projects.
- Growing portion of electric vehicles and machines as well as setting up construction barracks more energy efficiently.
Peab’s position
One of the leading actors in all segments in Sweden. Strong position in Norway and Finland with some operations in Denmark.
Read more about business area Industry on pages 72–74.
Net sales
SEK 21.4 billion
Operating margin
3.5 %
No. of employees
4,931
Business area Project Development
Business area Project Development is responsible for the acquisition, development, management and divestment of housing, commercial property, community buildings 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 develops commercial property.
Trends and driving forces
- Weak demand on the housing market in the Nordic region but the underlying need for housing is relatively constant over time.
- There is a significant need for community buildings but investments are affected by the public sector’s financial state.
- The demand for modern, flexible and environmentally-adapted offices in good locations continues to be strong.
- Focus on sustainable city development and more environmentally certified properties.
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.
Read more about business area Project Development on pages 75–80.