Peab reports stable annual results on big shift to public sector

Sweden-based contractor Peab reported net sales of SEK 58.7 billion (US$6 billion) for full-year 2024, largely flat year-over-year, as weaker housing and construction markets were offset by growth in civil engineering and public sector demand.

Homes in a subdivision Image: Adobe Stock Rising costs are limiting residential construction in Europe. Image: Adobe Stock

Operating profit rose to SEK 2.8 billion ($290 million), with a 4.7% operating margin, which is up from 3.2% in 2023.

The company’s Construction business saw a 14% sales drop due to declining housing activity across all its markets, while the Civil Engineering division grew 9%, supported by large public infrastructure contracts in Sweden and Norway.

The Industry business area also rose 8%, driven by higher paving demand in Finland.

Broad shift to public works for Peab
Graph showing Peab's increase in public sector activity in 2024. Image generated by AI Image generated by AI

Peab noted that public sector clients now account for 56% of revenue, up from 48% in 2023, reflecting a broader market shift toward government-funded work. Meanwhile, Project Development sales fell 25%, as new housing production continued to slow across the Nordics.

Order intake increased 25% year-on-year to SEK 56.5 billion ($5.9 billion), with major wins including the NOK 3.3 billion ($318 million) Bodø Airport project in Norway and the SEK 1.5 billion ($155 million) West Link section in Gothenburg. The company also highlighted a growing pipeline of phase 1 “pre-agreements,” with a potential value of SEK 13 billion ($1.3 billion).

Peab ended the year with an order backlog of SEK 44.9 billion ($4.7 billion), 37% of which extends beyond 2025. Net debt rose modestly due to property acquisitions but is expected to decrease in early 2025.

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