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 fourth quarter 2024 decreased by seven percent and amounted to SEK 6,541 million (7,029). The decrease is due to less activity in new housing production that has not been fully compensated by other types of projects. Operating profit was SEK 96 million (-358) and the operating margin was 1.5 percent (-5.1). During the fourth quarter last year, the operating profit was charged with provisions and write-downs totaling SEK -465 million, of which goodwill write-downs were SEK -125 million.

January – December 2024

Net sales for 2024 decreased by 14 percent and amounted to SEK 23,817 million (27,780). 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. Housing accounted for 27 percent (39) of net sales for the full year 2024.

Operating profit amounted to SEK 416 million (41 excl. MoS) and the operating margin was 1.7 percent (0.1 excl. MoS). Last year the operating profit was charged with provisions and write-downs of a total of SEK -465 million, of which goodwill write-downs were SEK -125 million. Last year included a positive effect of SEK 400 million from the outcome of the arbitration in the case between Peab and Unibail-Rodamco-Westfield regarding the construction contract Mall of Scandinavia (MoS) in Solna. Operating profit for the comparable period amounted to SEK 441 million and the operating margin was 1.6 percent.

Orders received and order backlog

The level of orders received in the fourth quarter increased to SEK 6,325 million (5,835).

January – December 2024

The level of orders received during 2024 amounted to SEK 22,224 million (22,779), among them a new swimming pool block with a swimming pool facility, homes, commercial premises and parking space in Partille 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 December 31, 2024 amounted to SEK 23,188 million (24,469). There is a large portion of other building construction for the public sector in order backlog. The proportion of housing projects at the end of the year was 29 percent (32).

Net sales