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 region, organized in eleven 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 is a nationwide organization in Sweden focused on major cities. Other regions are responsible for all types of construction projects in their geographic area.

Net sales and profit

Net sales for the first quarter 2024 decreased by 22 percent and amounted to SEK 5,788 million (7,422). The reduction is primarily due to a lower demand in new production of housing in all countries.  The proportion of other building construction, primarily to the public sector, has increased in net sales while the proportion of housing continues to decrease. Calculated on a rolling 12 month period per March 31, 2024 housing accounted for 36 percent (43) of net sales.

Operating profit contracted during first quarter and amounted to SEK 101 million (162) and the operating margin was 1.7 percent (2.2). The operating margin for the latest rolling 12 month period excluding the Mall of Scandinavia effect was -0.1 percent compared to 0.1 percent for the full year 2023. For more information regarding the Mall of Scandinavia arbitration see the Annual and Sustainability Report 2023. The operating margin was 1.5 percent calculated on a rolling 12 months compared to 1.6 percent for the full year 2023.

Orders received and order backlog

The level of orders received during the first quarter rose amounting to SEK 6,654 million (4,804). The quarter includes a new swimming pool block with a swimming pool facility, homes, commercial premises and parking space in Partille for a total worth of around SEK 1.3 billion. In addition, orders received from the public sector for other building construction continued to be good during the quarter.

Order backlog on March 31, 2024 amounted to SEK 25,483 million (26,577). The proportion of other building construction has continued to increase in order backlog while the proportion of housing projects has decreased.