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 eleven 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 is a nationwide organization in Sweden focused on major cities. Other regions are responsible for all types of construction projects in their geographic area.

Net sales and profit

Net sales for the second quarter 2024 decreased by 16 percent and amounted to SEK 6,358 million (7,540). The decrease is due to less activity in new housing production which has not been fully compensated by other types of projects and has been experienced in all the countries we operate in. Operating profit amounted to SEK 123 million (141 excl. MoS) and the operating margin was 1.9 percent (1.9 excl. MoS). The comparable period includes a positive effect of SEK 400 million from the outcome of the arbitration decision in the case between Peab and Unibail-Rodamco-Westfield regarding the contract Mall of Scandinavia in Solna (MoS). Operating profit for the comparable period amounted to SEK 541 million and the operating margin was 7.2 percent. For more information on the outcome of arbitration, see the section Risks and uncertainty factors and Annual and Sustainability Report 2023.

January – June 2024

Net sales for the first half-year 2024 decreased by 19 percent and amounted to SEK 12,146 million (14,962). The decrease is due to less activity in new housing production which has not been fully compensated by other types of projects and has been experienced in all the countries we operate in.

The portion of other building construction, primarily for the public sector, has increased in net sales while the portion of housing has continued to decrease. Calculated on a rolling 12 month period, per June 30, 2024 housing accounted for 32 percent (43) of net sales.

Operating profit amounted to SEK 224 million (303 excl. MoS) and the operating margin was 1.8 percent (2.0 excl. MoS). The comparable period includes a positive effect of SEK 400 million from the outcome of the arbitration decision in the case between Peab and Unibail-Rodamco-Westfield regarding the contract Mall of Scandinavia in Solna (MoS). Operating profit for the comparable period amounted to SEK 703 million and the operating margin was 4.7 percent. The operating margin for the latest rolling 12 month period was -0.2 percent compared to 0.1 percent excluding the effect of MoS for the full year 2023.

Orders received and order backlog

The level of orders received during the second quarter contracted and amounted to SEK 4,756 million (6,563). Orders received from the public sector for other building construction continued to be good during the quarter.

January – June 2024

The level of orders received during the first half-year amounted to SEK 11,410 million (11,367). The period includes a new swimming pool block with a swimming pool facility, homes, commercial premises and parking space in Partille for a total worth of around SEK 1.3 billion. In addition, orders received from the public sector for other building construction continued to be good.

Order backlog on June 30, 2024 amounted to SEK 23,870 million (25,848). The portion of other building construction has continued to increase in order backlog while the portion of housing projects has decreased.

Net sales