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 our companies 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

October – December 2021

Net sales for the fourth quarter 2021 increased by four percent and amounted to SEK 5,138 million (4,929). Net sales in Mineral Aggregates, Paving, Concrete and Construction System grew during the quarter while they contracted in Rentals and Transportation and Machines.

Operating profit was SEK 420 million (397) and the operating margin improved to 8.2 percent (8.1). Peab acquired YIT’s Nordic paving and mineral aggregates operations on April 1, 2020, which was when the season started. Depreciation on surplus values related to customer contracts in taken over order backlog and tangible assets have charged operating profit by SEK -21 million (-30).

January – December 2021

Net sales for 2021 amounted to SEK 18,787 million (18,720). Adjusted for acquired operations net sales contracted by one percent compared to the last year. Net sales in Mineral Aggregates, Concrete and Construction System grew while it contracted in Rentals and Transportation and Machines. Paving had lower volumes during the year but as a result of higher prices for bitumen net sales were on the same level as last year.

Operating profit amounted to SEK 938 million (1,105) and the operating margin was 5.0 percent (5.9). Peab acquired YIT’s Nordic paving and mineral aggregates operations on April 1, 2020. The acquired operations have a very clear seasonal pattern which means the first quarter carries considerable deficits since the season starts in the second quarter.

If the acquisition had taken place on January 1, 2020 profit in the first quarter would have been affected by SEK -297 million. Depreciation on surplus values related to customer contracts in taken over order backlog and tangible assets have charged operating profit by SEK -80 million (-189). The comparable period also included acquisition costs and transfer tax of SEK -55 million. The beginning of 2021 with a long, cold winter has had a negative effect on profit in operations in business area Industry since the season started up later than last year.

Capital employed at the end of the year was SEK 9,266 million compared to SEK 8,822 million at the end of the last year. The increase is due to investments in machines and business combinations.

Orders received and order backlog

October – December 2021

The level of orders received during the fourth quarter 2021 amounted to SEK 2,255 million (2,816).

January- December 2021

The level of orders received during 2021 increased to SEK 10,568 million (9,893). The comparable period included orders received from the acquired paving and mineral aggregates operations as of April 1, 2020.

Order backlog on December 31, 2021 was SEK 3,886 million (3,921).

Acquisition of Frøseth AS in Trøndelag

Peab strengthened its operations in the Trøndelag area in central Norway through acquisition of Frøseth AS, which works with mineral aggregates, paving, transportation and recycling. Included in the acquisition were 40 employees, nine quarries, an asphalt plant and modern machines and equipment. In 2020 the acquired business had net sales of around NOK 104 million. After approval by the competition authority, the acquisition was finalized on July 1, 2021.