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 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 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
July – September 2022
Net sales for the third quarter 2022 increased by five percent and amounted to SEK 6,306 million (5,989). The increase was generated in all countries and is mainly explained by higher costs for material and energy, which has affected prices to customers.
Operating profit for the third quarter decreased to SEK 126 million (164) and the operating margin shrunk to 2.0 percent (2.7). Higher costs for material and energy have for the most part been managed by raising customer prices as well as making adjustments and streamlining but since we have not been able to completely compensate cost increases they have had a negative impact on the operating margin.
January – September 2022
Net sales for the period January-September 2022 increased by ten percent and amounted to SEK 20,669 million (18,833).
The increase is attributable to Swedish and Norwegian operations and is mainly explained by higher costs for material and energy, which has affected prices to customers.
Operating profit for the period January-September amounted to SEK 463 million (502) and the operating margin was 2.2 percent (2.7). The operating margin was down in both Sweden and Finland. For the latest rolling 12 month period the operating margin was 2.3 percent compared to 2.6 percent for the entire year of 2021. During 2021 and 2022 there have been significant price hikes for material and energy as well as delivery disturbances. Higher costs for material and energy have for the most part been managed by raising customer prices as well as making adjustments and streamlining but since we have not been able to completely compensate cost increases they have had a negative impact on the operating margin.
Orders received and order backlog
July – September 2022
Orders received during the third quarter increased and amounted to SEK 8,490 million (8,225). Orders received are well spread among products and geography although the percentage of housing is lower. During the quarter 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.
January – September 2022
Orders received during the period January-September 2022 were SEK 21,411 million (21,342). Order backlog on September 30, 2022 increased and amounted to SEK 31,052 million compared to SEK 28,697 million at the end of September 2021.
Net sales
per product area, rolling 12 months
per geographic market, rolling 12 months
Order backlog, September 30, 2022
per product area
per project size
Key ratios
| Jul-Sep 2022 | Jul-Sep 2021 | Jan-Sep 2022 | Jan-Sep 2021 | Oct-Sep 2021/2022 | Jan-Dec 2021 | ||
| Jul-sep 2022 | Jul-sep 2021 | Jan-sep 2022 | Jan-sep 2021 | Okt-sep 2021/2022 | Jan-dec 2021 | ||
| Net sales, MSEK | Nettoomsättning, Mkr | 6,306 | 5,989 | 20,669 | 18,833 | 28,816 | 26,980 |
| Operating profit, MSEK | Rörelseresultat, Mkr | 126 | 164 | 463 | 502 | 672 | 711 |
| Operating margin, % | Rörelsemarginal, % | 2.0 | 2.7 | 2.2 | 2.7 | 2.3 | 2.6 |
| Orders received, MSEK | Orderingång, Mkr | 8,490 | 8,225 | 21,411 | 21,342 | 30,972 | 30,903 |
| Order backlog, MSEK | Orderstock, Mkr | 31,052 | 28,697 | 31,052 | 28,697 | 31,052 | 30,142 |
| Operating cash flow, MSEK | Operativt kassaflöde, Mkr | 102 | 184 | -65 | 985 | 604 | 1,654 |
| Number of employees 1) | Antal anställda 1) | 5,859 | 5,841 | 5,859 | 5,841 | 5,859 | 5,796 |
1) Calculated on rolling 12 months