Business area Civil Engineering

Business area Civil Engineering is a leading actor 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 seven geographic regions, one region for foundations, and one nationwide region in Sweden for operation and maintenance.

Local market, which represents more than half of net sales in business area Civil Engineering, works with landscaping, streets, pipelines, foundation work as well as construction of different kinds of facilities and water and pipeline systems. Infrastructure and heavy construction builds roads, railroads, bridges, tunnels and ports. Operation and maintenance handles national and municipal highways and street networks, tends parks and outdoor property as well as operates water and wastewater networks.

Net sales and profit

Activity was high in business area Civil Engineering during the first quarter and net sales increased by seven percent to SEK 3,558 million (3,328). Even adjusted for divested operations and exchange rate effects, net sales increased by seven percent. The increase is related to all product areas.

Operating profit increased and amounted to SEK 77 million (59) and the operating margin improved to 2.2 percent (1.8). The operating margin for the latest 12 month period was 3.4 percent compared to 3.3 percent for the full year 2023.

Orders received and order backlog

The level of orders received during the first quarter was high and amounted to SEK 8,188 million (4,442). The quarter included part of Västlänken’s Haga-Rosenlund stage in Gothenburg worth around 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.

Order backlog on March 31, 2024 increased and amounted to SEK 18,623 million (15,087).

Orders received after the reporting period

Peab has been commissioned to develop New Bodø Airport as the project moves from the development phase to the implementation phase. The customer is Avinor and the contract is worth NOK 3.3 billion. The construction contract consists of a development phase and an implementation phase. The first phase is a so-called phase 1 contract in which the customer Avinor and Peab, together with subcontractors and consultants, have developed and optimized solutions and set a target price for the project. The project is now entering phase 2 which is the implementation phase. The project comprises the construction of a new runway, taxiways and parking spaces for aircraft. Construction will begin immediately and the project is expected to be completed in June 2028. The project will be order registered in the second quarter of 2024.