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

July – September 2023

Net sales for the third quarter 2023 decreased by eight percent and amounted to SEK 5,789 million (6,306). The reduction is primarily due to a lower demand in new production of homes in all countries, which Peab has not been able to compensate for with other kinds of projects. Operating profit amounted to SEK 96 million (126) and the operating margin was 1.7 percent (2.0).

January – September 2023

Net sales for the period January-September 2023 amounted to SEK 20,751 million (20,669). Housing generated the largest portion of net sales with 42 percent (42) calculated on a rolling 12 months.

A decision in the case between Peab and Unibail Rodamco Westfield regarding the contract for Mall of Scandinavia in Solna (MoS) was handed down on June 30, 2023. The judgement had a positive effect on operating profit of SEK 400 million in the second quarter. For details see Other information. Operating profit excl. MoS amounted to SEK 399 million (463) and the operating margin was 1.9 percent (2.2). Work is in the process of adjusting to the lower demand in housing developments. The operating margin for the latest rolling 12 month period was 1.9 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 799 million and the operating margin was 3.9 percent.

Orders received and order backlog

July – September 2023

The level of orders received contracted during the third quarter and amounted to SEK 5,577 million (8,490). The comparable period included the renovation and rebuilding of the southern section of city borough Sperlingens Backe at Stureplan in central Stockholm for about SEK 2 billion. The portion of housing projects in orders received has decreased. The level of orders received from public customers continued to be good during the quarter.

January – September 2023

Orders received during January-September were SEK 16,944 million (21,411). There is a greater portion of other building construction and a lower portion of housing projects in orders received. Order backlog on September 30, 2023 amounted to SEK 25,702 million (31,052). The portion of housing projects in order backlog has contracted and represented 34 percent (46).