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 area, organized in 13 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 operations are run in a nationwide region in Sweden focused on the big city areas. Other regions are responsible for all types of construction projects in their geographic area.

Net sales and profit

April – June 2022

Net sales for the second quarter 2022 increased by 15 percent and amounted to SEK 7,628 million (6,648). The increase is attributable to Swedish and Norwegian operations. Net sales are well spread among different product areas. Operating profit for the second quarter amounted to SEK 177 million (187) and the operating margin was 2.3 percent (2.8). Higher construction costs and energy price hikes have in general been compensated by charging higher prices to customers but have still had a negative effect on the operating margin.

January – June 2022

Net sales for the first half-year 2022 increased by twelve percent and amounted to SEK 14,363 million (12,844). The increase is attributable to Swedish and Norwegian operations. Net sales are well spread among different product areas. Housing generated the largest portion of net sales with 41 percent (37) calculated on a rolling 12 months.

Operating profit for the first-half year amounted to SEK 337 million (338) and the operating margin was 2.3 percent (2.6). The operating margin was down in both Sweden and Finland. For the latest rolling 12 month period the operating margin was 2.5 percent compared to 2.6 percent for the entire year of 2021. Prices for material and energy have risen considerably during 2021 and the first part of 2022. We have handled price hikes and delivery disruptions through adjustments and streamlining, but the operating margin has been affected negatively.

Orders received and order backlog

April – June 2022

Orders received during the second quarter increased and amounted to SEK 6,926 million (6,088).

January – June 2022

Orders received during the first half-year were SEK 12,921 million (13,117). The orders received are well spread in both products and geographically. Order backlog on June 30, 2022 increased and amounted to SEK 28,839 million compared to SEK 26,427 million at the end of June 2021.

Orders received after the report period

Peab has been commissioned to renovate and rebuild the southern part of Sperlingens Backe neighborhood at Stureplan in central Stockholm. The customer is Sturegallerian AB and the contract is worth around SEK 2 billion. The project is a partnership contract that comprises approximately 48,000 m² in total of the Sturekvarteret. Work will begin immediately and is expected to be completed in 2026. The project will be order registered in the third quarter of 2022.