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 third quarter 2024 decreased by eleven percent and amounted to SEK 5,130 million (5,789). The decrease is due to less activity in new housing production that has not been fully compensated by other types of projects and has been experienced in all the countries we operate in. Operating profit was unchanged compared to the same quarter last year and amounted to SEK 96 million. The operating margin improved and amounted to 1.9 percent (1.7).

January – September 2024

Net sales for January-September 2024 decreased by 17 percent and amounted to SEK 17,276 million (20,751). The decrease is due to less activity in new housing production that 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 September 30, 2024 housing accounted for 29 percent (42) of net sales.

Operating profit amounted to SEK 320 million (399 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 construction contract Mall of Scandinavia in Solna (MoS). Operating profit for the comparable period amounted to SEK 799 million and the operating margin was 3.9 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 third quarter contracted and amounted to SEK 4,489 million (5,577). Orders received for the quarter included a commission for the construction of Gothenburg’s new station building worth SEK 870 million.

January – September 2024

The level of orders received during January-September amounted to SEK 15,899 million (16,944). 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 and construction of Gothenburg’s new station building for SEK 870 million. In addition, orders received from the public sector for other building construction continued to be good.

Order backlog on September 30, 2024 amounted to SEK 23,154 million (25,702). The portion of other building construction in order backlog has continued to increase while the portion of housing projects has decreased.

Net sales