Business area Civil Engineering
Business area Civil Engineering is a leading player in Sweden and has operations in Norway. 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 as well as offers services in power and electricity distribution. 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 2022
Net sales for the fourth quarter 2022 increased by eight percent to SEK 4,405 million (4,062). The increase is explained by greater activity in Infrastructure and Operation and maintenance. Operating profit amounted to SEK 175 million (164) and the operating margin was unchanged at 4.0 percent (4.0). Higher construction and energy costs have in general been compensated by charging higher prices to customers but have had a negative effect on the operating margin.
January – December 2022
Net sales during 2022 increased by six percent and amounted to SEK 14,965 million (14,180). The increase is mainly related to Infrastructure and Operating and maintenance. Adjusted for acquisitions and exchange rate effects net sales increased by five percent. Net sales are well spread among different product areas.
Operating profit for year was SEK 494 million (471) and the operating margin was 3.3 percent (3.3). Prices for material and energy rose considerably during 2021 and 2022. We have handled the price hikes as well as delivery disturbances through adjusting and streamlining operations, but since we have not been able to completely compensate cost increases they have had a negative impact on the operating margin.
Orders received and order backlog
October – December 2022
Orders received during the fourth quarter 2022 amounted to SEK 2,904 million (3,016). Orders received are well spread in product areas and geographically.
January – December 2022
Orders received during 2022 increased to SEK 14,877 million (14,819). Orders received included rebuilding the lock canal in Södertälje for SEK 1.5 billion for The Swedish Transport Administration. Order backlog on December 31, 2022 amounted to SEK 13,939 million (13,955). Roads and other infrastructure generated the largest portion of order backlog at 40 percent (36).
Acquisition of civil engineering company in Larvik
Peab has acquired 90.4 percent of the shares in civil engineering company Arne Olav Lund A/S (AOL) based in Larvik. This acquisition reinforces Peab’s civil engineering business in Norway. The company is domiciled in Larvik and in 2021 had net sales of around NOK 315 million. AOL works throughout eastern Norway with production and improvement of roads, water lines and waste water as well as with groundwork and landscaping. The transaction was conditional on approval from the competition authority. Takeover took place in December 2022.
Net sales
per product area, 2022
per geographic market, 2022
Order backlog, December 31, 2022
per product area
per project size
Key ratios
| Oct-Dec 2022 | Oct-Dec 2021 | Jan-Dec 2022 | Jan-Dec 2021 | ||
| Okt-dec 2022 | Okt-dec 2021 | Jan-dec 2022 | Jan-dec 2021 | ||
| Net sales, MSEK | Nettoomsättning, Mkr | 4,405 | 4,062 | 14,965 | 14,180 |
| Operating profit, MSEK | Rörelseresultat, Mkr | 175 | 164 | 494 | 471 |
| Operating margin, % | Rörelsemarginal, % | 4.0 | 4.0 | 3.3 | 3.3 |
| Orders received, MSEK | Orderingång, Mkr | 2,904 | 3,016 | 14,877 | 14,819 |
| Order backlog, MSEK | Orderstock, Mkr | 13,939 | 13,955 | 13,939 | 13,955 |
| Operating cash flow, MSEK | Operativt kassaflöde, Mkr | -211 | 220 | -114 | 921 |
| Number of employees 1) | Antal anställda 1) | 3,568 | 3,634 | 3,568 | 3,634 |
1) Caluculated on rolling 12 months