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.

July – September 2023

Net sales for the third quarter 2023 decreased by four percent and amounted to SEK 6,780 million (7,096). The reduction is mainly related to Paving and Concrete. Operating profit was SEK 588 million (519) and the operating margin improved to 8.7 percent (7.3). The improvement is due to better earnings in Paving.

January – September 2023

Net sales for the period decreased by six percent and amounted to SEK 14,906 million (15,775). 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 was SEK 486 million (464) and the operating margin was 3.3 percent (2.9). The improved operating margin is mainly due to better earnings in Paving. 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 3.7 percent compared to 3.5 percent for the entire year 2022.

Capital employed at the end of the period was SEK 11,805 million compared to SEK 10,957 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

July – September 2023

The level of orders received during the third quarter increased and amounted to SEK 2,914 million (2,212).

January – September 2023

The level of orders contracted during the period and amounted to SEK 8,762 million (9,661). The reduction is primarily due to Peab being more selective about the tenders Paving in Norway submits. Order backlog on September 30, 2023 was SEK 4,327 million (4,325).

Net sales

per product area, rolling 12 months

per geographic market, rolling 12 months

Key ratios

Jul-Sep
2023		 Jul-Sep
2022		 Jan-Sep
2023		 Jan-Sep
2022		 Oct-Sep
2022/2023		 Jan-Dec
2022
Jul-sep
2023		 Jul-sep
2022		 Jan-sep
2023		 Jan-sep
2022		 Okt-sep
2022/2023		 Jan-dec
2022
Net sales, MSEK Nettoomsättning, Mkr 6,780 7,096 14,906 15,775 20,564 21,433
Operating profit, MSEK Rörelseresultat, Mkr 588 519 486 464 769 747
Operating margin, % Rörelsemarginal, % 8.7 7.3 3.3 2.9 3.7 3.5
Orders received, MSEK Orderingång, Mkr 2,914 2,212 8,762 9,661 11,889 12,788
Order backlog, MSEK Orderstock, Mkr 4,327 4,325 4,327 4,325 4,327 4,273
Capital employed at the end of the period, MSEK
Sysselsatt kapital vid periodens utgång, Mkr
 11,805 10,957 11,805 10,957 11,805 10,807
Operating cash flow, MSEK Operativt kassaflöde, Mkr 557 452 -436 -1,016 62 -518
Average number of employees Medeltal antal anställda 4,991 5,535 4,438 4,663 4,595 4,761
Concrete, thousands of m3 1) Betong, tusentals m3 1) 272 385 849 1,008 1,190 1,349
Paving, thousands of tons 1) Beläggning, tusentals ton 1) 2,636 3,283 4,362 5,598 5,949 7,185
Mineral Aggregates, thousands of tons 1) Ballast, tusentals ton 1) 7,463 7,416 18,212 21,452 25,707 28,947

1) Refers to sold volume