Business area Civil Engineering

Business area Civil Engineering is a leading player in Sweden and has operations in Norway. Civil Engineering’s operations in Finland became part of business area Industry in the autumn of 2020. 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 geographic regions and the specialized product areas Local market, Infrastructure and heavy construction and Operation and maintenance.

Local market works with landscaping and pipelines, does foundation work and builds different kinds of facilities. Infrastructure and heavy construction builds roads, railroads, bridges, tunnels and ports. Operation and maintenance maintains federal and municipal road and street networks, tends parks and outdoor property as well as maintains water and wastewater networks.

Net sales and profit

April – June 2021

Net sales for the second quarter 2021 increased by nine percent to SEK 3 ,743 million (3,432). The growth is primarily attributable to Local market. Operating profit for the second quarter 2021 amounted to SEK 146 million (127) and the operating margin improved to 3.9 percent (3.7).

January- June 2021

Net sales during the first half-year 2021 increased by ten percent and amounted to SEK 6,833 million (6,202). Even after adjustments for acquired units net sales increased by ten percent.

Net sales increased in Local market and Operation and maintenance during the first half-year while net sales were unchanged in Infrastructure.

Operating profit for the first half-year 2021 was SEK 198 million (168) and the operating margin improved to 2.9 percent (2.7). Earnings increased in both Infrastructure and Operation and maintenance during the period. The operating margin for the latest rolling 12 month period was 3.1 percent compared to 3.0 percent for the entire year of 2020.

Orders received and order backlog

April – June 2021

Orders received during the second quarter 2021 amounted to SEK 3,612 million (3,493).

January- June 2021

Orders received during the first half-year 2021 increased to SEK 8,220 million (6,928). Order backlog on June 30, 2021 amounted to SEK 14,689 million (14,174).

Acquisition of HGT AS in Bergen

After the end of the period Peab signed a contract to acquire 90 per­cent of the shares in HGT AS. HGT is a general contractor in civil engineering and is domiciled in Bergen. In 2020 the company had net sales of NOK 150 million. Peab strengthens its business in civil engineering in Norway with the acquisition. The transaction is conditional on approval from competition authorities. Takeover is expected to occur during the second half of 2021.