Business area Industry

Business area Industry provides the products and services needed to carry out sustainable and cost-​efficient construction and civil engineering projects on the Nordic market. With local roots we take on jobs big and small.

Industry offers everything from mineral aggregates, concrete, paving and temporary electricity to prefabricated concrete elements. Business area Industry also assists with crane and machine rental, distribution of binder to the concrete industry, transportation as well as recycles production waste and excavated soil. The business area is run in six product areas: Mineral Aggregates, Paving, Concrete, Transportation and Machines, Rentals and Construction System.

Net sales and profit

Business area Industry has a very clear seasonal pattern where the first quarter is characterized by substantial deficits since the season begins in the second quarter.

April – June 2023

Net sales for the second quarter 2023 decreased by twelve percent and amounted to SEK 5,347 million (6,108). The reduction is mainly related to Paving. Operating profit was SEK 333 million (341) and the operating margin amounted to 6.2 percent (5.6). The operating margin increased in the quarter in most of the product areas.

January – June 2023

Net sales for the first half-year 2023 decreased by six percent and amounted to SEK 8,126 million (8,679). The reduction is related to the product areas Paving and Concrete. Adjusted for acquired operations and exchange rate effects net sales contracted by eight percent.

Operating profit during first half-year was SEK -102 million (-55) and the operating margin was -1.3 percent (-0.6). The negative operating profit refers to Paving where operations during the first quarter are primarily preparations for the season through maintenance on machines and asphalt plants since the season does not start until the second quarter. The continued high energy and fuel prices have been handled through higher prices to customers as well as adapting and streamlining operations. The operating margin in the latest rolling 12 month period was 3.4 percent compared to 3.5 percent for the entire year 2022.

Capital employed at the end of the period was SEK 11,885 million compared to SEK 10,807 million at the end of the same period last year. The increase is due to investments in machines and production facilities in Construction System as well as more working capital.

Orders received and order backlog

April – June 2023

The level of orders received during the second quarter 2023 contracted and amounted to SEK 3,159 million (3,614). The reduction is primarily related to Norwegian paving operations.

January – June 2023

The level of orders contracted during the first half-year 2023 and amounted to SEK 5,848 million (7,449). The reduction is primarily due to Peab being more selective about the tenders Paving in Norway submits. Order backlog on June 30, 2023 was SEK 6,077 million (6,973).