Other information

Significant events during the period

Green bond issue

On March 11, 2025 Peab issued green bonds for a total value of SEK 500 million. The bonds have a maturity of 3 years with a variable interest rate of 3 months Stibor (the Stockholm Interbank Offered Rate) plus 1.50 percentage points. Funds from the issue will be used to finance investments in green and energy buildings, ECO efficient and circular products and production processes, sustainable transportation and water management and measures for avoiding and limiting pollution. The green bonds were issued within the framework of Peab’s Swedish MTN program and the framework for green financing.

Peab Industri Oy is cooperating with the Competition and Consumer Authority in an ongoing investigation

In May 2025 the Competition and Consumer Authority in Finland launched a so-called competition law compliance audit of several companies active on the asphalt paving market in Finland, among them Peab’s subsidiary Peab Industri Oy. Peab is cooperating fully with the authority. The fact that the authority has initiated an audit does not mean that Peab Industri Oy is guilty of any anticompetitive conduct and the result of the investigation should not be pre-empted. The Peab Group has zero tolerance of any forms of irregularities.

Settlement agreement regarding Mall of Scandinavia

Through a settlement agreement Peab and Unibail-​Rodamco-Westfield (URW) have agreed on a final resolution of all transactions regarding the contract for Mall of Scandinavia in Solna. The agreement entailed that Peab’s liquidity increased by one billion Swedish kronor in the third quarter, that net financial items in the second quarter 2025 were charged with SEK 611 million and that net debt remained the same.

On June 30, 2023 an arbitral award in the case regarding the contract for Mall of Scandinavia was rendered. The arbitral tribunal concurred with Peab’s claims for compensation for added expenses generated by extensive changes in the project made during the production phase and ruled that Peab was entitled to compensation of approximately one billion Swedish kronor for construction costs as well as SEK 390 million, in default interest. URW then challenged the award to Svea Court of Appeal which on May 28, 2025 rendered a judgment entitling Peab to compensation for the work incurred by changes and additions along with compensation for disorder and disruption. The arbitral award was set aside concerning URW’s claim for liquidated damages for certain delays and Peab’s claims for the costs of the arbitration procedures.

Since no payment was made as required by the judgment Peab initiated bankruptcy proceedings against the project company Rodamco Projekt AB in order to demand payment. URW announced on June 3, 2025 that it intended to initiate a new arbitration procedure regarding its claim for liquidated damages for certain delays and Peab intended to initiate a new arbitration procedure regarding its claim for the costs of the arbitration procedures.

On June 22, 2025 the parties agreed to a settlement entailing a payment of one billion Swedish kronor from URW to Peab which was paid on July 2, 2025. The settlement agreement further entailed that each party retracted all processes, that the contract is considered finally settled and that the parties have no claims against each other, including warranty obligations. The settlement agreement thereby entails that there are no remaining risks for Peab regarding the contract for Mall of Scandinavia.

Expanded framework for MTN program

Peab has a MTN ​program with an original framework of SEK 5 billion. The program was expanded in June 2025 by SEK 2.5 billion to SEK 7.5 billion. More in­for­ma­tion concerning the loan pro­gram­ can be found on Peab’s website.

Peab creates a joint venture with KB Gruppen in Western Norway

Peab and the KB Gruppen have decided to merge their operations in the companies K. Nordang and Christie & Opsahl, both of which operate in Western Norway. The companies are active in new construction, renovation and concrete work. The merger is expected to lead to synergies as the companies complement each other in products and geographically. The combined net sales of the two companies are expected to amount to around NOK 1.9 billion in 2025. In total, the two companies have 350 employees.

KB Gruppen will own 62.5 percent of the new associated company and Peab will own 37.5 percent. Going forward Peab will recognize the company as an associated company in the business area Construction. Net sales in K. Nordang AS were approximately NOK 800 million in 2025. K. Nordang AS will be sold into the associated company at market price and this is expected to have an effect on operating profit in the first quarter 2026 of approximately NOK 100 million. The transaction has been approved from competition authorities and closing is expected to take place in the first quarter 2026.

Significant events after the period

No significant events occurred after the end of the reporting period.

Holdings of own shares

At the beginning of 2025 Peab’s holding of its own shares was 8,597,984 B shares which corresponds to 2.9 percent of the total number of shares. The Board of Directors of Peab AB (publ) has, through the authorization given by the Annual General Meeting on May 6, 2025, decided to repurchase its own shares. The repurchases will be carried out continuously until the Annual General Meeting in 2026. The purpose of the repurchasing is to safeguard costs and deliveries connected to implementing the company’s long-term Performance Share Program and to be able to use the repurchased shares in financing acquisitions. Repurchasing will take place with consideration to the company’s financial position and capital structure. The shares will be repurchased on Nasdaq Stockholm according to the Nordic Main Market Rulebook for Issuers of Shares – Nasdaq Stockholm (Supplement D) and implemented in accordance with EU Parliament’s and Council’s EU regulation nr. 596/2014 on market abuse (MAR). According to the Board’s decision shares may be repurchased during the period for a maximum of SEK 500 million and a number of shares so that the company’s holding of its own shares after the repurchasing does not exceed one tenth of all shares in the company. The shares may only be repurchased at a price per share within the price interval registered at any given time on Nasdaq Stockholm, meaning the interval between the current highest buy price and the lowest sell price published by Nasdaq Stockholm. The acquired shares will be paid for in cash. During 2025, 5,374,000 B shares have been repurchased for a total amount of SEK 415 million. After the repurchase, Peab holds 13,971,984 own B shares corresponding to 4.7 percent of the total number of shares.

Related parties

The character and extent of transactions with related parties is presented in the Annual and Sustainable Report 2024, note 36. For more information about transactions with related parties during the period see business area Project Development. No other new significant transactions have occurred during the 2025.

Proposed dividend

The Board has proposed a dividend of SEK 3.30 (2.75) per share for 2025 divided into two payments. Exckluding the 13,971,984 shares owned by Peab AB per December 31, 2025, which are not entitled to dividends, the proposed dividend is equivalent to a total dividend distribution of SEK 931 million (788). Calculated as a share of the Group’s reported profit for the year after tax according to segment reporting, the proposed dividend amounts to 70 percent (38). The proposed dividend is equivalent to a direct return of 3.7 percent based on the closing price on February 3, 2026. The proposed record day for the first payment amounting to SEK 1.80 per share is May 4, 2026. The proposed record day for the second payment amounting to SEK 1.50 per share is October 30, 2026.

Annual General Meeting

The Annual General Meeting of Peab will be held on April 29, 2026. The form of the Annual General Meeting will be decided by the Board at the latest in connection with the notice to attend the Annual General Meeting.

Nomination Committee

The Nom­i­na­tion Com­mit­tee of Peab AB has been con­sti­tut­ed ac­cord­ing to the prin­ci­ples for the Nom­i­na­tion Com­mit­tee’s ap­point­ment adopt­ed by the An­nu­al Gen­er­al Meet­ing. The Nom­i­na­tion Com­mit­tee is ba­se­d on the largest share­hold­ers of the com­pa­ny per the final bank­ing day in June 2025 that wish to appoint a member. Ulf Lil­je­dahl, appointed by AB Axel Granlund, has stepped down from the Nom­i­na­tion Com­mit­tee in advance of the An­nu­al Gen­er­al Meet­ing 2026. Ci­ce­ro Fon­der is the new re­pre­sen­te­d shareholder in this year’s Nom­i­na­tion Com­mit­tee.

The fol­low­ing persons have been appointed to the Nom­i­na­tion Com­mit­tee for the An­nu­al Gen­er­al Meet­ing 2026:

  • Anders Sundström, appointed by Ekhaga Utveckling AB
  • Suzanne Sandler, appointed by Handelsbanken Fonder
  • Christer Sterndahlen, appointed by Cicero Fonder
  • Anders Runevad, Chairman of the Board of Peab AB

The Nom­i­na­tion Com­mit­tee has at its constituent meeting ap­point­ed An­ders Sund­ström to be Chair­man of the Nom­i­na­tion Com­mit­tee. The Nom­i­na­tion Com­mit­tee has begun its work on nominations for, among others, the Board, auditor and remunerations.