Order situation
January – March 2024
The level of orders received increased dramatically during the first quarter 2024 and amounted to SEK 17,889 million (11,042). The level of orders received increased in all business areas but particularly in business areas Civil Engineering and Construction. Business area Civil Engineering includes a part of Västlänken’s Haga-Rosenlund stage in Gothenburg worth about SEK 1.5 billion, a new dock in Skellefteå worth about SEK 1.1 billion and operation and maintenance contracts worth about SEK 1.1 billion. A new swimming pool block in Partille worth about SEK 1.3 billion is included in business area Construction. In business area Industry several paving contracts were received during the quarter, among them in Finland. The level of orders received from public customers continued to be good in the quarter.
Order backlog yet to be produced at the end of the period increased and amounted to SEK 47,808 million compared to SEK 44,595 million at the end of the corresponding period last year. The increase in order backlog primarily concerns production that will be carried out next year and thereafter. Of the total order backlog, 46 percent (42) is expected to be produced after 2024 (2023). Swedish operations accounted for 81 percent (79) of the order backlog.
Preliminary agreements
Operations in Construction and Civil Engineering increasingly participate in dialogues early on with customers prior to planned projects and we are therefore experiencing a greater number of preliminary agreements, so-called phase 1 contracts. Through the preliminary agreements Peab is contracted to arrive at, together with the customer, an optimal product with the right quality and also deal with risks and uncertainties. As of this report we will present the potential value of the final construction contracts generated by these preliminary agreements.
At the start of 2024 the potential value was approximately SEK 19 billion. During the first quarter of the year several projects went from phase 1 to phase 2, which meant that the projects became construction contracts and are included in Peab’s orders received. At the same time new projects continue to flow into phase 1. The value of the construction contracts generated from these preliminary agreements was at the end of March around SEK 20 billion, and these orders will potentially be received over the next two years.
Orders received
| MSEK | Jan-Mar 2024 | Jan-Mar 2023 | Apr 2023- Mar 2024 | Jan-Dec 2023 | |
| Mkr | Jan-mar 2024 | Jan-mar 2023 | Apr 2023- mar 2024 | Jan-dec 2023 | |
| Construction | Bygg | 6,654 | 4,804 | 24,629 | 22,779 |
| Civil Engineering | Anläggning | 8,188 | 4,442 | 18,836 | 15,090 |
| Industry | Industri | 2,932 | 2,689 | 11,429 | 11,186 |
| Project Development | Projektutveckling | 627 | 143 | 620 | 136 |
| Eliminations | Elimineringar | -512 | -1,036 | -3,559 | -4,083 |
| Group | Koncernen | 17,889 | 11,042 | 51,955 | 45,108 |
Order backlog
| MSEK | Mar 31 2024 | Mar 31 2023 | Dec 31 2023 | |
| Mkr | 31 mar 2024 | 31 mar 2023 | 31 dec 2023 | |
| Construction | Bygg | 25,483 | 26,577 | 24,469 |
| Civil Engineering | Anläggning | 18,623 | 15,087 | 13,905 |
| Industry | Industri | 6,211 | 6,092 | 3,954 |
| Project Development | Projektutveckling | 1,709 | 4,165 | 1,620 |
| Eliminations | Elimineringar | -4,218 | -7,326 | -4,888 |
| Group | Koncernen | 47,808 | 44,595 | 39,060 |
Project size of order backlog, March 31, 2024
Order backlog allocated over time
Train depot
Eskilstuna
We received a number of major construction projects and contracts in the first quarter, including:
- Construction of a new dock in Skelleftehamn. The customer is Skellefteå Municipality. The contract is worth SEK 1,132 million.
- Construction of a new fire station in Kaarina. The customer is the City of Kaarina. The contract is worth EUR 11 million.
- Rebuilding Uddebo wastewater treatment plant in Luleå. The customer is Luleå miljöresurs AB (Lumire). The contract is worth SEK 157 million.
- Construction of 191 apartments, offices and a garage in Jönköping. The rental apartment customer is Brandtornet AB and the office building customer is Hamhus AB. The total contract amount is SEK 368 million.
- Expansion of the municipal water and wastewater net in Borlänge Municipality. The customer is Borlänge Energi. The contract is worth SEK 126 million.
- Construction of a new building at Langhaugen High School in Bergen. The customer is Vestland Municipality. The contract is worth NOK 257 million.
- Construction of a new swimming pool block in Partille Municipality. The customer is Partillebo. The contract is worth SEK 1.3 billion.
- Construction of new railway sidings for local and regional trains in Lärje, north of Gothenburg. The customer is the Swedish Transport Administration. The contract is worth SEK 392 million.
- Renovation of a school in Lund. The customer is Lundafastigheter. The contract is worth SEK 139 million.
- Construction of a pilot platform facility for clean energy in Espoo. The customer is VTT Technical Research Centre of Finland Ltd. The contract is worth EUR 19 million.
- Construction of an apartment building in Tapanila in Helsinki. The customer is the City of Helsinki. The contract is worth EUR 13 million.
- Construction of a new assisted living facility in Åmål. The customer is Åmål Municipality. The contract is worth SEK 220 million.
- Construction of another building for inmates at the Sörbyn Prison, south of Umeå. The customer is Specialfastigheter Sverige AB. The contract is worth SEK 104 million.
- Renovation and extension of Stora kontoret for SSAB in Oxelösund. This is a turnkey contract and worth SEK 160 million.
- Five new operation contracts for road maintenance from the Swedish Transport Administration. In total Peab will maintain around 6,070 kilometers of state roads over the next four years with an extension option for another two years. The cumulative worth of the contracts is SEK 1,061 million.
- Commission to tear down the existing bridge over Nattviken in central Härnösand and build a new openable bridge in the same place. The customer is Härnösand Municipality. The contract is worth SEK 247 million.
- Rebuilding Kristine Hall, Dala Sinfonietta’s concert hall, in Falun. The customer is Falun Municipality. The contract is worth SEK 227 million.
- Construction of part of Västlänken’s Haga-Rosenlund stage in Gothenburg. The customer is the Swedish Transport Administration. The contract’s estimated worth is SEK 1.5 billion.
- Rebuilding of a school in Malmö. The customer is Revelop. The contract is worth SEK 186 million.
The following own housing developments were production-started in the first quarter:
- Brf Havtornet on Tjörn comprising 54 apartments. The project takes the environmental and climate into consideration in both the choice of materials and the construction stage by, for example, using Peab’s ECO-products, requiring fossil-free transportation, reuse and rainwater systems as well as a sedum roof on the building. The project is expected to be completed in February 2027.
- Allegro in Ylöjärvi comprising 50 apartments. The apartment building is being constructed according to EU Taxonomy criteria for environmental sustainability and environmental certification according to BREEAM is planned. Green financing will be applied on the project, which is expected to be completed in October 2025.
- Engene hage in the center of Drammen comprising 33 homes. There are green areas next to the property and the shared roof terraces provide opportunities for cultivation. The project is expected to be completed in December 2025.
We received a number of federal and municipal paving contracts in the first quarter, including:
- One-year federal contract in Nyland worth EUR 12.2 million.
- One-year federal contract in Southwest Finland worth EUR 9.0 million.
- One-year federal contract in Southwest Finland worth EUR 7.3 million.
- One-year federal contract in South Ostrobothnia worth EUR 7.3 million.
- One-year federal contract in South Ostrobothnia worth EUR 7.0 million.
- One-year federal contract in Nyland worth EUR 6.5 million.
- One-year federal contract in Nyland worth 6.4 MEUR.
- Two-year federal contract in Norrbotten County worth SEK 65 million.
- Two-year federal contract in Gävleborg County worth SEK 58 million.
- Two-year federal contract in Västernorrland County worth SEK 58 million.
- Two-year federal contract in Värmland County worth SEK 42 million.
- One-year federal contract in Randers Municipality worth DKK 26 million.