Net sales and profit

January – December 2025

Group net sales were relatively unchanged in 2025 and amounted to SEK 58,589 million (58,697). The share of public sector customers in net sales was 55 percent (56) and private customers was 45 percent (44).

Net sales in business area Construction decreased slightly compared to last year. There is a greater portion of industrial projects in net sales while the portion of housing decreased. Activity in business area Civil Engineering was high during the year and net sales increased by six percent. A large part of the increase is related to the product areas streets and groundwork and ports and sea. Net sales in business area Industry decreased by seven percent. The reduction is mainly related to Swerock/Asphalt with lower volumes in paving in Finland and Norway. There has also been less activity in the unit Construction system as a result of the weak market for new housing production. In Project Development net sales increased by two percent. Net sales were higher in Housing Development as a result of more production-starts of tenant-owner apartment projects and more sold homes while net sales in Property Development dropped.

Group operating profit amounted to SEK 2,626 million (2,763) and the operating margin was 4.5 percent (4.7). We have increased earnings in several of our operations during the year. Last year there were two major transactions in Project Development which together contributed SEK 620 million to the Group.

The operating margin improved in business area Construction to 2.2 percent (1.7) during the year and in business area Civil Engineering the operating margin improved to 4.0 percent (3.0). All in all, the operating margin for construction contract operations amounted to 2.9 percent (2.3). The operating margin in business area Industry improved to 7.4 percent (6.6). The operating margin in the unit Swerock/Asphalt improved to 8.6 percent (6.9) with higher earnings in several of the operations there. The operating margin for the unit Construction system contracted to 1.2 percent (4.6), which is explained by a continued weak market for new housing production. Operating profit in business area Project Development amounted to SEK 238 million (728) and the operating margin was 5.5 percent (17.0). Capital gains from divestitures of properties and shares in joint ventures in Property Development contributed with SEK 117 million (440). The comparable period included a capital gain of SEK 220 million from the sale of shares in the joint venture Tornet Bostadsproduktion. Profit contribution from joint ventures in Property Development amounted to SEK 163 (441). During the fourth quarter 2024 assets in the joint venture company Fastighets AB Centur were divided up and both Peab and the other partner, Fastighets AB Balder, acquired the majority of the property portfolio. The transactions had a positive effect on operating profit of SEK 367 million, which was reported in Property Development as profit from joint ventures. During the year more sold homes and more production-starts had a positive effect in Housing Development, although activity continued to be low. The operating margin in Housing Development was 0.2 percent (-2.7).

Seasonal variations

Group operations, particularly in Industry and Civil Engineering, are normally affected by fluctuations that come with the cold weather during the winter half of the year. The first quarter is usually weaker than the rest of the year.