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Peab reports stable annual results on big shift to public sector
08 May 2025
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.
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
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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