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.
October – December 2023
Net sales decreased by eleven percent and amounted to SEK 5,056 million (5,658). The reduction is mainly related to product areas Paving and Concrete but net sales for the quarter were also lower in Rentals and Construction System due to a weaker construction market. Operating profit improved to SEK 476 million (283) and the operating margin improved to 9.4 percent (5.0). The improvement is due to better earnings in Paving while earnings in Rentals were lower during the quarter.
January – December 2023
Net sales for the year decreased by seven percent and amounted to SEK 19,962 million (21,433). 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 improved to SEK 962 million (747) and the operating margin was 4.8 percent (3.5). 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. Operating profit for the year was lower in Rentals due to a weaker construction market.
Capital employed at the end of the year was SEK 10,699 million compared to SEK 10,807 million at the end of last year.
Orders received and order backlog
October – December 2023
The level of orders received during the fourth quarter amounted to SEK 2,424 million (3,127).
January – December 2023
The level of orders contracted during the year and amounted to SEK 11,186 million (12,788). The reduction is primarily due to Peab being more selective about the tenders Paving in Norway submits. Order backlog on December 31, 2023 was SEK 3,954 million (4,273).
Net sales
per product area, 2023
per geographic market, 2023
Key ratios
| Oct-Dec 2023 | Oct-Dec 2022 | Jan-Dec 2023 | Jan-Dec 2022 | ||
| Okt-dec 2023 | Okt-dec 2022 | Jan-dec 2023 | Jan-dec 2022 | ||
| Net sales, MSEK | Nettoomsättning, Mkr | 5,056 | 5,658 | 19,962 | 21,433 |
| Operating profit, MSEK | Rörelseresultat, Mkr | 476 | 283 | 962 | 747 |
| Operating margin, % | Rörelsemarginal, % | 9.4 | 5.0 | 4.8 | 3.5 |
| Orders received, MSEK | Orderingång, Mkr | 2,424 | 3,127 | 11,186 | 12,788 |
| Order backlog, MSEK | Orderstock, Mkr | 3,954 | 4,273 | 3,954 | 4,273 |
| Capital employed at the end of the period, MSEK | Sysselsatt kapital vid periodens utgång, Mkr | 10,699 | 10,807 | 10,699 | 10,807 |
| Operating cash flow, MSEK | Operativt kassaflöde, Mkr | 1,448 | 498 | 1,012 | -518 |
| Average number of employees | Medeltal antal anställda | 4,620 | 5,050 | 4,485 | 4,761 |
| Concrete, thousands of m3 1) | Betong, tusentals m3 1) | 255 | 341 | 1,104 | 1,349 |
| Paving, thousands of tons 1) | Beläggning, tusentals ton 1) | 1,149 | 1,587 | 5,511 | 7,185 |
| Mineral Aggregates, thousands of tons 1) | Ballast, tusentals ton 1) | 6,572 | 7,495 | 24,784 | 28,947 |
1) Refers to sold volume