Net sales and profit

January – March 2026

Group net sales were slightly lower in the first quarter 2026 and amounted to SEK 10,771 million (10,925). Net sales for the latest rolling 12 month period amounted to SEK 58,435 million compared to SEK 58,589 million for the full year 2025. Projects for the public sector remain on a high level and the share of public sector customers of net sales calculated on a rolling 12 month basis was 55 percent (56) and private customers were 45 percent (44).

Net sales in business area Construction were on par with the first quarter 2025. Net sales in Sweden increased but declined in Norway due to the divestment of K Nordang AS, which was sold to a company partly owned by Peab and KB Gruppen during the quarter. There was a high level of activity in business area Civil Engineering during the quarter and net sales increased by eleven percent. Net sales in business area Industry increased by eight percent and the increase is related to the unit Construction system. Net sales in Project Development were lower compared to the corresponding quarter last year due to fewer production starts of our own housing developments. Two major housing projects were production-started in the corresponding quarter last year.

Group operating profit improved during the first quarter and amounted to SEK -156 million (-278) and the operating margin was -1.4 percent (-2.5). The first quarter is significantly affected by the season, particularly in business area Industry, since the beginning of the year is characterized by considerable deficits because the paving season begins in the second quarter. Costs for Peab’s long-term Performance Share Programs, which are under construction and include key personnel in the Group, are reported in Group functions. The programs will contribute to retaining and attracting competent personnel and strengthen the connection between reward and shareholder value. During the first quarter higher costs for the Performance Share Programs abetted lowering operating profit in Group functions. For the latest rolling 12 month period Group operating margin was 4.7 percent compared to 4.5 percent for the full year 2025.

The operating margin in business area Construction improved to 4.2 percent (2.1). The divestment of K Nordang AS to the jointly owned company resulted in a capital gain of SEK 114 million. Compared to the corresponding quarter last year, the transaction had a net impact of approximately SEK 100 million. The operating margin in business area Civil Engineering improved to 3.6 percent (3.1). Several of the units in Civil Engineering in Sweden reported higher earnings during the quarter. All in all, the operating margin for construction contract operations amounted to 3.9 percent (2.5). Operating profit in business area Industry improved and the operating margin amounted to -16.7 percent (-24.0). An overhaul of part of the Norwegian paving and mineral aggregates operations was initiated in 2025 as a result of low profitability, which entailed higher costs. In connection with the discontinuation of operations capital gains from the sale of fixed assets had a positive effect during the first quarter 2026. In addition, business area Industry has been affected positively in the quarter from forward hedging of raw material contracts. Increased activity in the unit Construction system in business area Industry contributed to higher operating profit. In business area Project Development operating profit amounted to SEK 9 million (83) and the operating margin was 1.8 percent (8.4). There have been no substantial transactions in the unit Property Development during the quarter. In the corresponding quarter last year capital gains from the divestiture of property and participations in joint venture companies had an impact of SEK 47 million. The operating margin in Housing Development was 0.4 percent (3.6).

Seasonal variations

Group op­er­a­tions, par­tic­u­lar­ly in In­dus­try and Civil En­gi­neer­ing, are nor­mal­ly af­fect­ed by fluc­tu­a­tions that come with the cold weath­er dur­ing the win­ter half of the year. The first quar­ter is usu­al­ly weak­er than the rest of the year.