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 twelve 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 a nationwide organization 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 2023

Net sales for the second quarter 2023 amounted to SEK 7,540 million (7,628). Operating profit excl. MoS amounted to SEK 141 million (177) and the operating margin was 1.9 percent (2.3).

A decision in the case between Peab and Unibail Rodamco Westfield regarding the contract for Mall of Scandinavia in Solna was handed down on June 30, 2023. The judgement had a positive effect on the operating profit of SEK 400 million in the second quarter. For more information see Significant events. Operating profit amounted to SEK 541 million and the operating margin was 7.2 percent.

January – June 2023

Net sales for the first half-year 2023 increased by four percent and amounted to SEK 14,962 million (14,363). Housing generated the largest portion of net sales with 43 percent (41) calculated on a rolling 12 months.

Operating profit excl. MoS amounted to SEK 303 million (337) and the operating margin was 2.0 percent (2.3). The operating margin for the latest rolling 12 month period was 2.0 percent compared to 2.2 percent for the entire year 2022. The high costs of material and energy in contracts received before the war broke out in Ukraine has resulted in dilution of the operating margin in all our countries. Operating profit amounted to SEK 703 million and the operating margin was 4.7 percent.

Orders received and order backlog

April – June 2023

The level of orders received contracted during the second quarter and amounted to SEK 6,563 million (6,926). There is a smaller portion of housing projects in orders received. In the second quarter orders from public customers contiued to be good.

January – June 2023

Orders received during the first half-year were SEK 11,367 million (12,921). There is a greater portion of other building construction and a smaller portion of housing projects in orders received. Order backlog on June 30, 2023 amounted to SEK 25,848 million (28,839). The portion of housing projects in order backlog has contracted and represented 37 percent (54).