Business area Civil Engineering

Business area Civil Engineering is a leading player in Sweden and one of the larger players in Norway. Civil Engineering works with landscaping and pipelines, builds and maintains roads, railroads, bridges and other infrastructure as well as does foundation work. Operations are organized in geographic regions and the specialized product areas Local market, Infrastructure and heavy construction and Operation and maintenance.

Local market works with landscaping and pipelines, does foundation work and builds different kinds of facilities as well as offers services in power and electricity distribution. Infrastructure and heavy construction builds roads, railroads, bridges, tunnels and ports. Operation and maintenance maintains federal and municipal road and street networks, tends parks and outdoor property as well as maintains water and wastewater networks.

Net sales and profit

Net sales for the first quarter 2023 increased by eight percent and amounted to SEK 3,328 million (3,083). Adjusted for acquired operations and exchange rate effects net sales increased by six percent. The increase refers to all three product areas and is largely due to the continued high cost of material and energy, which has affected pricing to customers.

Operating profit amounted to SEK 59 million (53) and the operating margin was 1.8 percent (1.7). The operating margin for the latest 12 month period was 3.3 percent which was unchanged compared to full year of 2022. The high cost of material and energy in contracts received before the war broke out in Ukraine has to a certain extent resulted in dilution of the operating margin.

Orders received and order backlog

The level of orders received decreased during the first quarter 2023 and amounted to SEK 4,442 million (4,980). Orders received in the comparable period included a number of operation contracts regarding road maintenance for the Swedish Transport Administration totaling SEK 1.3 billion. Order backlog on March 31, 2023 amounted to SEK 15,087 million (15,917).