Business area Civil Engineering

Business area Civil Engineering is a leading player in Sweden and has operations in Norway. Civil Engineering’s operations in Finland became part of business area Industry in the autumn of 2020. Civil Engineering works with landscaping and pipelines, builds and maintains roads, railroads, bridges and other infrastructure as well as does foundation work. Operations are organized in geographic regions and the specialized product areas Local market, Infrastructure and heavy construction and Operation and maintenance.

Local market works with landscaping and pipelines, does foundation work and builds different kinds of facilities. Infrastructure and heavy construction builds roads, railroads, bridges, tunnels and ports. Operation and maintenance maintains federal and municipal road and street networks, tends parks and outdoor property as well as maintains water and wastewater networks.

Net sales and profit

October – December 2021

Net sales for the fourth quarter 2021 increased by 13 percent to SEK 4,062 million (3,600). The growth is primarily attributable to Local market in both Sweden and Norway. Operating profit increased to SEK 164 million (131) and the operating margin improved to 4.0 percent (3.6).

January- December 2021

Net sales during 2021 increased by ten percent and amounted to SEK 14,180 million (12,843). Even after adjustments for acquired units net sales increased by ten percent.

The increase in net sales is related to Local market and Operation and maintenance. Infrastructure and heavy construction had fewer major ongoing road projects during 2021 compared to 2020. Operating profit for 2021 was SEK 471 million (391) and the operating margin improved to 3.3 percent (3.0). Earnings have increased in all product areas during the year.

Orders received and order backlog

October – December 2021

The level of orders received increased during the fourth quarter 2021 and amounted to SEK 3,016 million (2,724).

January- December 2021

The level of orders received increased by 16 percent during the year to SEK 14,819 million (12,752). Order backlog on December 31, 2021 amounted to SEK 13,955 million (13,075).

Acquisition of HGT AS in Bergen

In July 2021 Peab signed a contract to acquire 90 percent of the shares in HGT AS. HGT is a general contractor in civil engineering and is domiciled in Bergen. In 2020 the company had net sales of NOK 150 million. Peab strengthens its business in civil engineering in Norway with the acquisition. After approval from competition authorities, the acquisition was completed on September 1, 2021.