Working together to meet targets
The opportunities for us to achieve our targets grow when our four business areas collaborate with each other and when we as a Group work together with customers, suppliers and other prioritized stakeholder groups.
Peab reports the performance of our business by monitoring nine external targets, of which three are financial, and are based on segment reporting, and six are non-financial. The non-financial targets comprise our sustainable targets. We particularly want to highlight the external targets and they are subset of all our targets and action plans. Both the external and internal financial and non-financial targets are categorized under the strategic targets; most satisfied customers, most profitable company, best workplace and leader in social responsibility. All the targets are measured in comparison to the construction and civil engineering industry.
Most satisfied customers
We are close to our customers and meet their needs with sustainable offers. Quality permeates our work methods and end results. The right expertise in the right place is key to success.
Best workplace
We are a safe, secure and inclusive workplace rooted in a strong company culture. Leadership takes responsibility and is close to operations. Employees have value-creating and developing work assignments that they complete together.
Most profitable company
We take on the right projects and have the right business mix. Employees work according to quality-ensured work methods that are efficient in every aspect. Through our own resources and internal collaboration we maintain a high degree of value creation. We take advantage of our size and experience.
Leader in social responsibility
As the Nordic community builder we drive developments in our industry in matters concerning the climate and environment, ethics, and equal opportunity and inclusion. We work well together with stakeholders in the world around us and stride every day towards a sustainable value chain. With our extensive local presence we are also an important actor in the local community.
How we achieve our targets
Our employees are fundamental to our ability to achieve our targets. It’s their work and efforts that create value for our customers, other stakeholders and society. Together we focus on a number of Group strategic areas to develop our business and achieve the targets we have set.
For Peab 2024 has entailed continued development of the collaboration between business areas, geographic cooperation and transitioning operations to becoming environmentally and socially more sustainable. The continued challenging market situation in some areas has meant that we have both worked to increase the efficiency of our operations and to position ourselves to be even better prepared to seize opportunities when they arise. We have made significant progress in all four of our strategic targets during the period, even if not all targets have been met. Target fulfillment for 2024 displays several important advances in sustainability, despite the challenging market conditions that characterized the year. Particularly gratifying is the clearly declining trend regarding serious workplace accidents. For the full year 2024, these continued to decrease and amounted to 33 (48). We will continue to work to ensure that this declining trend persists. Our climate and gender equality targets have also continued to develop in the right direction, and for 2025 we are raising the target regarding recruiting women as skilled workers. Regarding our target for carbon dioxide intensity we are well on our way to converting the production we ourselves have control over but the greater challenge is when we are dependent on other parties for a reduction in our carbon footprint. Both customers and employees alike are pleased with Peab and the outcomes of both CSI och eNPS surpass our targets.
Regarding Peab’s financial targets, the operating margin increased significantly to 4.7 percent (3.2) for 2024 compared to the target of six percent. The net debt/equity ratio at the end of the year was 0.5, which is in the middle of the target interval of 0.3-0.7. Taking into consideration earnings in 2024, our financial position and future capital needs, the Board of Directors proposes that Peab’s Annual General Meeting decide on a dividend of SEK 2.75 (1.50) per share divided into two payments. This corresponds to 38 percent of profit for the year to be compared with our target of more than 50 percent of profit for the year.
We still have a ways to go to reach our set targets. Nonetheless we are convinced that our business model and strategy are spot on. When the market is normalized in our segments we have good prerequisites to achieve our nine external tagets.
New business plan period
Our current business plan is for the period 2024-2026 and our primary areas are customer focus, sustainability and sustainable offers and efficiency. Collaboration amongst our business areas is key to success in all these areas. We have also established two Group-wise development programs that aid these advances. The first is “Climate Road Map and strategic input goods” which, by breaking down our climate targets into practical action plans and measures, is aimed at ensuring we reach our climate targets and at safeguarding access to critical input goods. The other program is “Quality-ensured and traceable value chain”, which both supports the first program and contributes to our structured work and Peab’s responsibility in our value chains.
| Target areas | Target | 2024 | 2023 | 2022 |
| Most satisfied customers | CSI >75 | 78 | 80 | 80 |
| Best workplace | Contracting trend, serious accidents <48 | 33 | 48 | 49 |
| eNPS >benchmark | 28 | 26 | 29 | |
| Most profitable company 1) | Operating margin >6% | 4.7% | 3.2% | 4.3% |
| Net debt/equity ratio 0.3-0.7 | 0.5 | 0.6 | 0.5 | |
| Dividends >50% of profit for the year | 38%2) | 30%2) | 56% | |
| Leader in social responsibility | Carbon dioxide intensity for our own production -60% (cf. base year 2015) | -50% | -49% | -43% |
| Carbon dioxide intensity for input goods and purchased services -50% (cf. base year 2015) | -12% | -9% | -2% | |
| Equal opportunity >5,0% share of women (SW) | 10.6% | 14.2% | 7.9% | |
| Equal opportunity >30,0% share of women (WCW) | 39.1% | 18.8% | 45.3% |
1) Based on segment reporting. 2) Calculated on the number of outstanding shares.