Peab’s collaborating business areas
Peab’s business model is made up of four collaborating and specialized business areas structured according to the conditions on each of their markets and organized according to geography and product segments. For developments and results in 2024 please see The Board of Directors’ Report.
Business area Construction
Builds locally close to customers
Business area Industry
Offers products and services with lower climate impact
Business area Civil Engineering
Ties people and communities together
Business area Project Development
Develops sustainable urban environments, homes and commercial 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 eleven 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
- Better conditions for new housing production as interest rates drop but recovery will take time.
- Continued considerable need for public sector construction.
- Participating in large portion of partnering projects in earlier stages.
- Focus on the environment and climate-adapted construction projects, reuse and energy efficient buildings.
- Increasingly digitalized process from the drawing board to production.
Peab’s position
One of the largest actors in construction in Sweden. Peab has considerable operations in Norway and Finland.
Read more about business area Construction on pages 113-115.
Net sales
SEK 23.8 billion
Operating margin
1.7 %
Number of employees
4,681
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. Operation and maintenance handles national and municipal highways and street networks as well as tends parks and outdoor property. The business area is organized in geographic regions and specialized product areas.
Trends and driving forces
- Continued major investments in public infrastructure.
- Participation in larger portion of partnering projects in earlier stages.
- Strong and continually growing focus on climate and environmental measures.
- Significant investments in water and wastewater plants.
- Several industrial projects that are important for the green transition.
- Continual need for operation and maintenance of roads and streets.
- Larger portion of the market consists of big and complex projects.
Peab’s position
Leading civil engineering actor in Sweden and among the larger actors in Norway.
Read more about business area Civil Engineering on pages 116-118.
Net sales
SEK 16.5 billion
Operating margin
3.0 %
Number of employees
3,365
Business area Industry
Business area Industry delivers products and services for a more sustainable and cost-efficient production of construction and civil engineering projects on the Nordic market. Its offer includes industrial construction, strategically placed quarries, asphalt and concrete, recycling of surpluses from the construction and civil engineering industry, prefabricated concrete elements as well as rental of construction equipment and cranes. Industry is organized in product areas and consists of a number of brands such as Swerock, Peab Asfalt, Lambertsson, Smidmek and Byggelement with trademarked products like ECO-Asfalt, ECO-Betong (ECO-Concrete) ECO-Ballast (ECO-Mineral Aggregates) and ECO-Prefab.
Trends and driving forces
- Market development is driven by the economy in general and public investments.
- Greater demand for climate-improved services and products in construction and civil engineering projects.
- Growing portion of electric vehicles and equipment as well as more energy efficient establishment of construction barracks.
Peab’s position
One of the leading actors in all segments in Sweden. Strong position in Finland and operations in Denmark and Norway.
Read more about business area Industry on pages 119–121.
Net sales
SEK 21.5 billion
Operating margin
6.6 %
Number of employees
4,581
Business area Project Development
Business area Project Development is responsible for the Group’s acquisition, development and divestment of housing, commercial property, community buildings and entire city districts. 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
- High inflation and interest rates in recent years continue to have a detrimental effect on demand for newly produced housing.
- The underlying need for housing has been substantial and constant over time but predicted lower population growth will likely reduce the need somewhat.
- The need for community buildings continues to significant but investments are affected by the public sector’s financial state.
- The market for offices continues to be tentative but there is a certain demand for modern, flexible and environmentally-adapted offices in good locations.
- Development is characterized by sustainable urban development, sustainable construction and environmentally certified buildings.
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 122–127.