Business area Construction

With local roots close to customers business area Construction does construction work for both external and internal customers. Construction projects include everything from new production of housing, public and commercial premises to renovations and extensions as well as construction maintenance.

Operations in business area Construction are run via some 150 local offices around the Nordic area, organized in 13 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 region in Sweden focused on the big city areas. Other regions are responsible for all types of construction projects in their geographic area.

Net sales and profit

Net sales for the first quarter 2022 increased by nine percent and amounted to SEK 6,735 million (6,196). The increase is attributable to Swedish and Norweigan operations. Net sales are well spread among different product areas. Housing generated the largest portion of net sales with 39 percent (37) calculated on a rolling 12 months.

Operating profit for the first quarter increased and amounted to SEK 160 million (151) while the operating margin was unchanged at 2.4 percent (2.4). The operating margin for the latest rolling 12 month period was 2.6 percent which was the same level as for the entire year 2021. Prices for material and energy have risen considerably during 2021 and the first part of 2022. We have handled the price hikes as well as delivery disturbances through adjusting and streamlining operations and so far there has been a limited impact on operating profit in Construction.

Orders received and order backlog

The level of orders received in the first quarter 2022 amounted to SEK 5,995 million (7,029). The orders received are well spread in both products and geographically although a large portion is housing projects.

Order backlog on March 31, 2022 was higher compared to the corresponding quarter last year and amounted to SEK 29,452 million (27,385). There is a higher portion of homes along with schools and educational premises in order backlog compared to the first quarter 2021.