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 twelve 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 2023 increased by ten percent and amounted to SEK 7,422 million (6,735). The increase refers to all countries and is largely due to the continued high cost of material and energy, which has affected pricing to customers. Housing generated the largest portion of net sales with 43 percent (39) calculated on rolling 12 months.

Operating profit amounted to SEK 162 million (160) and the operating margin was 2.2 percent (2.4). The operating margin for the latest rolling 12 month period was 2.1 percent compared to 2.2 percent for the entire year 2022. The high cost of material and energy in contracts received before the war broke out in Ukraine has resulted in dilution of the operating margin in all our countries.

Orders received and order backlog

The level of orders received in the first quarter 2023 was lower and amounted to SEK 4,804 million (5,995). There is a larger portion of construction projects for the public sector in orders received compared to the same quarter last year.

Order backlog on March 31, 2023 amounted to SEK 26,577 million (29,452). The proportion of housing projects in order backlog has contracted and represented 42 percent compared to 52 percent at the end of the first quarter 2022. Different types of public sector and office projects have increased instead.