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Peab Audit Report / Information 2025
2954_10-k_2026-02-04_35afe31f-4e37-47ab-8872-b897fcdd120e.pdf
Audit Report / Information
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Strong end to the year
In this report amounts and comments are based on segment reporting if not otherwise specified. The Group has different accounting principles in segment reporting compared to reporting according to IFRS for our own housing development projects and for IFRS 16 (previously operational leasing contracts). For more information on our accounting principles and the differences between segment reporting and reporting according to IFRS, see note 1 and 3. For information on alternative performance measures, see the section Alternative performance measures and definitions.
Summary according to segment reporting
October - December 2025
- Net sales SEK 17.125 million (16.785)
- Operating profit SEK 996 million (1,255)
- Operating margin 5.8 percent (7.5)
- Pre-tax profit SEK 934 million (1,183)
- Earnings per share before and after dilution SEK 2.69 (3.63)
- Orders received SEK 14,947 million (12,052)
- Cash flow before financing SEK 2,250 million (1,719)
January - December 2025
- Net sales SEK 58,589 million (58,697)
- Operating profit SEK 2,626 million (2,763)
- Operating margin 4.5 percent (4.7)
- Pre-tax profit SEK 1,674 million (2,425). The settlement agreement regarding Mall of Scandinavia affected net financial items by SEK -611 million
- Earnings per share before and after dilution SEK 4.66 (7.25)
- Orders received SEK 54,927 million (56,510)
- Order backlog SEK 48,544 million (44,906)
- Cash flow before financing SEK 4,119 million (2,601)
- Net debt SEK 6,400 million (9,118)
- Net debt/equity ratio 0.4 (0.5)
- The Board proposes a dividend of SEK 3.30 (2.75) per share divided into two payments
Group
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
|---|---|---|---|---|
| MSEK | 2025 | 2024 | 2025 | 2024 |
| Segment reporting | ||||
| Net sales | 17,125 | 16,785 | 58,589 | 58,697 |
| Operating profit | 996 | 1,255 | 2,626 | 2,763 |
| Operating margin, % | 5.8 | 7.5 | 4.5 | 4.7 |
| Pre-tax profit | 934 | 1,183 | 1,674 | 2,425 |
| Profit for the period | 770 | 1,037 | 1,342 | 2,080 |
| Earnings per share before and after dilution, SEK | 2.69 | 3.63 | 4.66 | 7.25 |
| Return on equity, $\%$ 1) | 8.3 | 13.3 | 8.3 | 13.3 |
| Return on capital employed, $\%$ $^{1)}$ | 10.2 | 10.7 | 10.2 | 10.7 |
| Net debt | 6,400 | 9,118 | 6,400 | 9,118 |
| Net debt/equity ratio, multiple | 0.4 | 0.5 | 0.4 | 0.5 |
| Equity/assets ratio, % | 39.4 | 37.1 | 39.4 | 37.1 |
| Cash flow before financing | 2,250 | 1,719 | 4,119 | 2,601 |
| Average number of employees | 12,565 | 12,979 | 12,377 | 12,899 |
| Reporting according to IFRS | ||||
| Net sales, IFRS | 17,335 | 17,185 | 58,581 | 61,283 |
| Operating profit, IFRS | 1,067 | 1,369 | 2,693 | 3,163 |
| Pre-tax profit, IFRS | 994 | 1,285 | 1,695 | 2,780 |
| Profit for the period, IFRS | 829 | 1,114 | 1,363 | 2,388 |
| Earnings per share before and after dilution, IFRS, SEK | 2.90 | 3.90 | 4.74 | 8.32 |
| Net debt, IFRS | 7,969 | 11,253 | 7,969 | 11,253 |
| Equity/assets ratio, IFRS, % | 37.0 | 34.6 | 37.0 | 34.6 |
| Cash flow before financing, IFRS | 3,015 | 3,046 | 4,895 | 6,744 |
1) Calculated on rolling 12 months
Operating profit
Orders received
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Comments from the CEO
Peab ends 2025 with both net sales and the operating margin continuing to grow in construction contract operations along with strong development in Swerock/Asphalt's operating margin. Peab is entering the new year with a stable order situation and strong financial position.
Group development
Group net sales amounted to SEK 58.6 billion for 2025 which is on par with last year. Operating profit amounted to SEK 2,626 million (2,763) and the operating margin was 4.5 percent (4.7). Civil engineering operations, premise construction and large sections of business area Industry continued to develop well while the low level of housing construction impacted operations in project development and construction system operations. Cash flow before financing was strong during the quarter and amounted to SEK 2.3 billion (1.7). Net debt was clearly lower than at the end of 2024, and per December 31, 2025 amounted to SEK 6.4 billion (9.1) making the net debt/equity ratio 0.4 (0.5).
The level of orders received was high during the fourth quarter including a major order from the Swedish Transport Administration for SEK four billion in business area Civil Engineering. The level of orders received for the entire year 2025 amounted to SEK 54.9 billion (56.5). Order backlog per December 31, 2025 increased by close to four billion Swedish kronor and was SEK 48.5 billion (44.9). We also continued to have a stable level of incoming phase 1 contracts which are preliminary agreements that can lead to construction contracts. The potential value of final construction contracts at the end of the year's last quarter was around SEK 17 billion over the next two years (SEK 13 billion per December 31, 2024).
Business area development
Net sales contracted slightly in business area Construction in 2025. The portion of housing construction has contracted while premise construction has grown. The operating margin improved during the year to 2.2 percent (1.7). During the quarter we announced that construction operations have created a joint venture with KB Gruppen in Western Norway to take advantage of product and geographic synergies. Activity continued to be high in business area Civil Engineering in both Sweden and Norway. Net sales increased by six percent and the operating margin improved to 4.0 percent (3.0). Several Nordic governments have announced major investments in infrastructure, both new investments and operation and maintenance. In addition, public projects are being carried out in areas such as water and sewage and power supply as well as in investments related to the ongoing climate transition. In total, the operating margin for the construction contract businesses was 2.9 percent (2.3).
In business area Industry net sales contracted by seven percent in 2025. The decrease is primarily related to Finnish and Norwegian paving operations. Operating profit increased in the period to SEK 1,485 million (1,415) and the operating margin improved to 7.4 percent (6.6). As of this report we are increasing transparency in business area Industry by separately reporting the two underlying units Swerock/Asphalt respectively Construction system. The first unit had a strong operating margin of 8.6 percent (6.9) for 2025 while operations in Construction system continued to be impacted by the weak housing market.
Net sales in Project Development for 2025 amounted to SEK 4,345 million (4,270). Business area Project Development continues to be marked by less demand on the housing market in the Nordic region. Operating profit was SEK 238 million (728) and the operating margin was 5.5 percent (17.0). The operating margin in Housing Development was 0.2 percent (-2.7).
The market for new housing production has stabilized in 2025. Lower interest rates, expected relaxation of home loan regulations and price stabilization on the second hand market helps. However, supply on the second hand market continues to be high and consumers are cautious, which means the situation varies in different markets. Markets in metropolises and good micro locations are better than in other geographies. We see similar development in Sweden, Norway and Finland.
As we have previously communicated we work from the strategy of – given our financial targets – more production of own housing developments on our own balance sheet to later on convert them into tenant-owner apart ments. Starting projects on our own balance sheet increases tied-up capital and defers profit effects in segment reporting compared to our traditional method of pre-sales before production starts of our own development projects.
Target outcome
At the end of 2025 we report on all our nine external targets. The operating margin was 4.5 percent calculated on a rolling twelve month basis, which can be compared to our target of 6.0 percent. The net debt/equity ratio was 0.4 (0.5) per December 31, which is in the lower span of the target interval 0.3-0.7. Both customers and employees are satisfied with Peab and the outcome of both the CSI and eNPS exceed target levels. The trend in the level of serious accidents was up to the last quarter of the year clearly lower compared to the full year 2024 but unfortunately the number of accidents increased in the final quarter. In the strategic target of Leader in social responsibility our gender equality target and climate target in our own production continue to develop in the right direction while the climate target for input goods and purchased services is more difficult to achieve.
Market and prospects for the future
Despite geopolitical tensions the macroeconomic situation has stabilized in the Nordic region. In addition to the stabilization of the housing market we have noticed the effects of the ongoing infrastructure investments and the fact that governments in the Nordic countries have announced substantial plans for both investments and maintenance are palpable. All in all, the outlook for the Nordic construction and civil engineering markets is positive for 2026. In certain aspects Peab's business benefits from the volatile world around us and the ongoing investments in the police, the penal system, security and defense related projects as well as the associated infrastructure projects.
Peab is in a favorable position with 12,000 competent employees taking on the growing opportunities in our markets. Our strong cash flow and lower net debt gives a lot of room for manoeuvre.
I also want to take this opportunity to heartily thank all my colleagues for the past year.
Dividend proposal
Taking into consideration profit for 2025, our financial position and future capital needs, the Board proposes that Peab's Annual General Meeting decide on a dividend of SEK 3.30 (2.75) per share divided into two payments. Calculated on the number of outstanding shares on December 31, 2025, this corresponds to 70 percent (38) of profit for the year according to segment reporting, which is higher than our financial target of more than 50 percent of profit for the year.
Jesper Göransson President and CEO
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Net sales and profit
October – December 2025
Group net sales increased by two percent during the fourth quarter 2025 and amounted to SEK 17,125 million (16,785).
Business area Construction had a high level of activity, particularly in Sweden during the fourth quarter and net sales increased by ten percent compared to the corresponding quarter last year. The level of activity was also high in business area Civil Engineering during the quarter and net sales increased by seven percent. Net sales in business area Industry decreased by eight percent. The decrease is mainly related to Swerock/Asphalt with lower volumes in paving in Finland and Norway. Net sales in Project Development were on par with the corresponding quarter last year.
Group operating profit decreased during the fourth quarter and amounted to SEK 996 million (1,255). During the corresponding period last year assets in the joint venture Fastighets AB Centur were divided up which had a positive effect on the Group by SEK 400 million, of which SEK 367 million was in business area Project Development and SEK 33 million was a dissolution of internal profit. The operating margin was 5.8 percent (7.5).
The operating margin improved in business area Construction to 2.1 percent (1.5) and in business area Civil Engineering the operating margin improved to 4.1 percent (2.9). All in all, the operating margin for construction contract operations amounted to 2.9 percent (2.1). The operating margin in business area Industry improved to 12.0 percent (10.7). The improvement came from Swerock/Asphalt where the operating margin increased to 14.1 percent (10.0) while Construction system continued to be impacted by the weak housing market and reported lower profitability. The operating margin in Construction system contracted to 2.4 percent (13.0). Operating profit in business area Project Development amounted to SEK 120 million (521), of which property transactions in Property Development amounted to SEK 53 million (169). During the fourth quarter 2024 assets in the joint venture company Fastighets AB Centur were divided up and both Peab and the other owner, Fastighets AB Balder, acquired the majority of the property portfolio. The transactions had a positive effect on operating profit in Property Development of SEK 367 million which was recognized in profit from joint ventures. In Housing Development sales of homes and conversions of homes on our own balance sheet to tenant-owned housing projects had a positive effect during the quarter. The operating margin in Housing Development was 2.1 percent (-1.1).
Depreciation and write-downs for the fourth quarter were SEK -390 million (-433).
Elimination and reversal of internal profit in our own projects affected operating profit during the quarter by net SEK 20 million (43).
Net financial items amounted to SEK -62 million (-72) of which net interest was SEK -77 million (-87).
Pre-tax profit was SEK 934 million (1,183). Profit for the quarter was SEK 770 million (1,037).
Operating profit and operating margin, per quarter
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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).
Depreciation and write-downs for the year were SEK -1,461 million (-1,499).
Elimination and reversal of internal profit in our own projects affected operating profit during the year by net SEK 50 million (46).
Net financial items amounted to SEK -952 million (-338) of which net interest was SEK -335 million (-402). The effect of the settlement regarding Mall of Scandinavia affected net financial items by SEK -611 million. For more information about the settlement see the section Other information.
Pre-tax profit was SEK 1,674 million (2,425). The tax for the year amounted to SEK -332 (-345) and corresponds to a tax rate of 20 percent (14).
Profit for the year was SEK 1,342 million (-2,080).
Operating profit and operating margin, rolling 12 months
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.
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Financial position and cash flow
Financial position
Total assets according to segment reporting per December 31, 2025 were SEK 42,472 million (45,226). Equity amounted to SEK 16,716 million (16,760), which entails an equity/assets ratio of 39.4 percent (37.1).
Interest-bearing net debt decreased and amounted to SEK 6,400 million (9,118) per December 31, 2025. At the beginning of the year dividends of SEK 1,100 million were received from Fastighets AB Centur, which were offset against interestbearing debt that arose in connection with the acquisition of properties from Fastighets AB Centur during the fourth quarter of 2024. Net debt includes project financing of the unsold part of our own housing developments while they are in production. At the end of the year the unsold part amounted to SEK 2,131 million (2,237). Interest-bearing receivables amounted to SEK 523 million (1,643). The comparable period included an interest-bearing receivable of SEK 1,067 million on Unibail-Rodamco-Westfield regarding Mall of Scandinavia. The arbitration was settled during the second quarter 2025 and Peab received payment on July 2, 2025. For more information regarding the settlement of Mall of Scandinavia, see the section Other information. The average interest rate in the loan portfolio was 4.4 percent (5.1) on December 31, 2025.
Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 10,079 million at the end of the year compared to SEK 8,822 million on December 31, 2024.
As a consequence of Peab consolidating Swedish tenant-owner associations according to IFRS, surety for tenant-owner associations under production is not reported. When homebuyers take possession of their apartments and the tenantowner association is no longer consolidated in Peab's accounts, Peab then reports the part of surety that covers unsold homes. Peab has a guarantee obligation to acquire unsold homes six months after completion. Group contingent liabilities, excluding joint and several liabilities in trading and limited partnerships, amounted to SEK 1,973 million at the end of the year compared to SEK 2,193 million on December 31, 2024. Surety for credit lines in tenant-owner associations regarding the unsold part after deconsolidation made up SEK 455 million of contingent liabilities compared to SEK 508 million on December 31, 2024.
Investments and divestments
Group investments during the fourth quarter in tangible and intangible fixed assets amounted to SEK 207 million (133). The investments mainly refer to investments in machines and vehicles in business area Industry. Group investments during 2025 in tangible and intangible fixed assets amounted to SEK 900 million (596). The investments mainly refer to investments in machines, vehicles and cranes in business area Industry. During the quarter tangible and intangible fixed assets of SEK 66 million (23) were divested. During 2025 tangible and intangible fixed assets of SEK 240 million (245) were divested.
Project and development properties
Project and development properties, which are reported as inventory items, amounted to SEK 16,283 million as of December 31, 2025, compared to SEK 16,828 million per December 31, 2024. The net change during 2025 was SEK -545 million (2,432) and the reduction is mainly due to more sold rental apartment projects. The change during the previous year is largely explained by the acquisition of building rights in Nacka through the purchase of Sicklaön Bygg Invest AB and the acquisition of properties in Varvsstaden, Malmö.
Net debt
| MSEK | Dec 31 2025 |
Dec 31 2024 |
|---|---|---|
| Bank loans | 2,968 | 3,790 |
| Commercial papers | 97 | 642 |
| Bonds | 4,098 | 3,722 |
| Financial leasing liabilities | 758 | 733 |
| Project financing, unsold part of housing projects | 2,131 | 2,237 |
| Other interest-bearing liabilities | 16 | 1,115 |
| Interest-bearing receivables | -523 | -1,643 |
| Liquid funds | -3,145 | -1,478 |
| Net debt, segment reporting | 6,400 | 9,118 |
| Additional leasing liabilities according to IFRS 16 | 1,335 | 1,460 |
| Project financing, sold part of housing projects | 234 | 675 |
| Net debt, IFRS | 7,969 | 11,253 |
Net debt and net debt/equity ratio
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Cash flow
October – December 2025
Cash flow from current operations was strong and amounted to SEK 2,012 million (968) during the fourth quarter 2025, of which cash flow from changes in working capital was SEK 771 million (-150). The positive cash flow is mainly derived from business areas Industry and Project Development.
Cash flow from investment activities was positive and amounted to SEK 238 million (751). The low level of investments in business area Industry and the sale of shares in joint ventures in Project Development are behind the positive cash flow. During the fourth quarter last year interest-bearing receivables from joint ventures in business area Project Development were repaid.
Cash flow before financing improved to SEK 2,250 million (1,719).
Cash flow from financing operations amounted to SEK -945 million (-1,091), of which SEK -357 million (-) was paid to shareholders and a charge of SEK -255 million (-) came from repurchasing own shares. Loan repayment amounted to SEK -332 million (-1,091).
January – December 2025
Cash flow from current operations improved during the year and amounted to SEK 3,148 million (1,356), of which cash flow from changes in working capital was SEK -21 million (-1,617). The improved cash flow from changes in working capital comes primarily from business area Project Development. Last year cash flow in Project Development was charged by the acquisition of development rights particularly in Kvarnholmen, Nacka and the acquisition of property in Varvsstaden in Malmö.
Cash flow from investment activities was SEK 971 million (1,245) where payment of the interest-bearing receivable relating to the settlement of Mall of Scandinavia had a positive effect of SEK 1,000 million. Sales of shares in joint ventures in Project Development have also had a positive effect on cash flow. Investments have increased compared to last year and mainly consisted of machines, cranes and vehicles in business area Industry. Last year cash flow was positively affected by the divestment of the shares in the joint venture Tornet Bostadsproduktion in business area Project Development and by repayment of interest-bearing receivables from joint ventures.
Cash flow before financing improved to SEK 4,119 million (2,601).
Cash flow from financing operations amounted to SEK -2,455 million (-2,375), of which dividends of SEK -788 million (-431) were paid to shareholders and and a charge of SEK -415 million (-) came from repurchasing own shares. Loan repayment amounted to SEK -1,248 million (-1,946).
Cash flow before financing
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Order situation
October – December 2025
Orders received were high during the fourth quarter 2025 and amounted to SEK 14,947 million (12,052). The level of orders received rose in business area Civil Engineering and Industry during the quarter while it fell in business area Construction and Project Development. Orders received in business area Civil Engineering include around SEK 4 billion for the continuation of the Haga-Rosenlund stage of the West Link in Gothenburg commissioned by the Swedish Transport Administration.
January – December 2025
The level of orders received during 2025 was high and amounted to SEK 54,927 million (56,510). The level of orders received increased in business area Construction during the year, spread well geographically and among product areas. A large portion of orders received is for the public sector. The level of orders received was lower during the year in business area Civil Engineering. Orders received include around SEK 4 billion for the continuation of the Haga-Rosenlund stage of the West Link in Gothenburg commissioned by the Swedish Transport Administration. The level of orders received in business area Civil Engineering was high in the comparable period when several large, billion kronor projects were registered, including the New Bodø Airport in Norway worth NOK 3.3 billion, the Haga-Rosenlund stage of the West Link in Gothenburg worth about SEK 1.5 billion, a new dock in Skellefteå worth about SEK 1.1 billion and operation and maintenance contracts for about SEK 1.1 billion. In business area Industry order intake was slightly lower but remained at a high level. In Industry, Swerock/Asphalt had a lower level of orders received in Finland and Norway while the level of orders received in Construction system was higher. Business area Project Development started production of more tenant-owner apartments/condominiums compared to last year, which had a positive effect on the level of orders received. A large portion of orders received in the Group is for projects in the public sector.
Order backlog yet to be produced at the end of the year grew and amounted to SEK 48,544 million (44,906). Of the total order backlog, 38 percent (37) is expected to be produced after 2026 (2025). Swedish operations accounted for 86 percent (79) of the order backlog.
Preliminary agreements
Operations in business areas Construction and Civil Engineering often participate in dialogues with customers at an early stage prior to planned projects, so-called phase 1 contracts. Through these preliminary agreements Peab is contracted to arrive at, together with the customer, an optimal product with the right quality and also deal with risks and uncertainties. As of 2024, we present the potential value of the final construction contracts generated by these preliminary agreements.
At the beginning of 2025 the potential value was around SEK 13 billion. During the period several projects went from phase 1 to phase 2, which means that the projects have been converted into construction contracts and included in Peab's orders received. At the same time, we see that new projects have flowed into phase 1 while a few have fallen away. During the period several new projects were added to both business areas but especially to the business area Construction. The value of the construction contracts generated from these phase 1 contracts at the end of December was around SEK 17 billion, and these orders will potentially be received over the next two years.
Orders received
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
|---|---|---|---|---|
| MSEK | 2025 | 2024 | 2025 | 2024 |
| Construction | 5,918 | 6,325 | 25,298 | 22,224 |
| Civil Engineering | 6,682 | 3,229 | 20,019 | 22,453 |
| Industry | 3,341 | 3,091 | 13,246 | 13,763 |
| Project Development | 928 | 1,246 | 2,865 | 2,213 |
| Eliminations | -1,922 | -1,839 | -6,501 | -4,143 |
| Group | 14,947 | 12,052 | 54,927 | 56,510 |
Order backlog
| Dec 31 | Dec 31 | |
|---|---|---|
| MSEK | 2025 | 2024 |
| Construction | 25,134 | 23,188 |
| Civil Engineering | 22,201 | 19,853 |
| Industry | 5,390 | 4,282 |
| Project Development | 1,702 | 1,536 |
| Eliminations | -5,883 | -3,953 |
| Group | 48,544 | 44,906 |
Project size of order backlog, December 31, 2025
Order backlog allocated over time
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We received a number of major construction projects and contracts in the fourth quarter, including:
- Continuation of the West Link stage Haga-Rosenlund commissioned by the Swedish Transport Administration. The contract is worth SEK 5.5 billion, of which SEK 4 billion was order registered in the fourth quarter 2025 and SEK 1.5 billion was order registered in 2024.
- Construction of 109 apartments in Limhamn in Malmö. The customer is HSB Projekt i Malmö AB. The contract is worth SEK 254 million.
- Commission to renovate Högdalen Reservoir in southern Stockholm. The customer is Stockholm Vatten och Avfall AB. The contract is worth SEK 159 million.
- Construction of a new school in Huvudsta in Solna. The customer is Solna City. The contract is worth SEK 438 million.
- Commission to develop Hyndevad Waterworks in Eskilstuna by building new process steps that complement the existing plant. The customer is Eskilstuna Strängnäs Energi o Miljö AB. The contract is worth SEK 326 million.
- Commission to carry out a new civil engineering contract in Stockholm's Meatpacking District in southern Stockholm. The customer is the City of Stockholm. The contract is worth SEK 113 million.
-
Construction of a new retirement home in Falun. The customer is Sehlhall. The contract is worth SEK 177 million.
-
Entrusted with an extension of two more operation contracts for road maintenance with the Swedish Transport Administration through the exercise of two-year options. The contracts have a total value of SEK 240 million.
- Renovation of Taserud High School in Arvika. The customer is Arvika Fastighets AB. The contract is worth SEK 256 million.
- Construction of housing in Lund. The customer is Lunds Kommuns Fastighets AB (LKF). The contract is worth SEK 130 million.
- Commission to lay the foundation and erect the frame of what will be the new laboratory facilities at the University Hospital of Umeå. The customer is Region Västerbotten. The contract is worth SEK 180 million.
- Commission to develop an office building in central Karlstad by building two new floors and completely refurbishing three existing floors. The customer is Erna Fastigheter. The contract is worth SEK 150 million.
- Commission to rebuild and expand an office building in central Skövde to create a new jail. The customer is Lorentzon Våmb AB. The contract is worth SEK 763 million.
- Construction of a new swimming and wellness facility in Skurup. The customer is Kunskapsporten Magistern AB. The contract is worth SEK 155 million.
In the fourth quarter own housing developments of tenant-owner/condominium apartments were production-started or converted and therefore reported as orders, including:
- Brf Ängahusen in Vellinge comprising 67 apartments. The property will be Swan ecolabeled and built with ECO-Betong (ECO-Concrete). The project was converted from homes on our own balance sheet to tenant-owner apartments and is expected to be completed in the spring of 2027.
- Brf Kajutsikten in Karlstad comprising 65 apartments. The property will be Swan ecolabeled. The project was converted from homes on our own balance sheet to tenant-owner apartments and is ready to move into.
- Brf Skutan in Västerås comprising 46 apartments. The property will be Swan ecolabeled. The project was converted from homes on our own balance sheet to tenant-owner apartments and is ready to move into.
We received a number of paving contracts in the fourth quarter, including:
- One-year federal contract in the Stockholm region of SEK 77 million.
- One-year municipal contract in southern Jutland for 17 MDKK.
- Three-year federal contract in Östergötland worth SEK 67 million.
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Overview business areas
The Peab Group is presented in four different business areas: Construction, Civil Engineering, Industry and Project Development. The business areas are also operating segments.
For more information regarding the differences between segment reporting and reporting according to IFRS, see note 1 and note 3.
In addition to the business areas central companies, certain subsidiaries and other holdings are presented as Group functions. The central companies primarily consist of the parent company Peab AB and Peab Finans AB.
Net sales and operating profit per business area
| Net sales | Operating profit | |||||||
|---|---|---|---|---|---|---|---|---|
| MSEK | Oct-Dec 2025 |
Oct-Dec 2024 |
Jan-Dec 2025 |
Jan-Dec 2024 |
Oct-Dec 2025 |
Oct-Dec 2024 |
Jan-Dec 2025 |
Jan-Dec 2024 |
| Construction | 7,169 | 6,541 | 23,683 | 23,817 | 148 | 96 | 512 | 416 |
| Civil Engineering | 5,258 | 4,893 | 17,607 | 16,539 | 217 | 140 | 704 | 499 |
| Industry | 5,123 | 5,576 | 20,037 | 21,548 | 615 | 597 | 1,485 | 1,415 |
| – of which Swerock/Asphalt | 4,192 | 4,611 | 16,770 | 17,974 | 590 | 461 | 1,440 | 1,238 |
| – of which Construction system | 1,063 | 1,050 | 3,672 | 3,875 | 25 | 136 | 45 | 177 |
| – of which eliminations | -132 | -85 | -405 | -301 | – | – | – | – |
| Project Development | 1,711 | 1,737 | 4,345 | 4,270 | 120 | 521 | 238 | 728 |
| – of which Property Development | 25 | 636 | 166 | 686 | 84 | 533 | 228 | 823 |
| – of which Housing Development | 1,686 | 1,101 | 4,179 | 3,584 | 36 | -12 | 10 | -95 |
| Group functions | 371 | 343 | 1,428 | 1,350 | -124 | -142 | -363 | -341 |
| Eliminations | -2,507 | -2,305 | -8,511 | -8,827 | 20 | 43 | 50 | 46 |
| Group, segment reporting | 17,125 | 16,785 | 58,589 | 58,697 | 996 | 1,255 | 2,626 | 2,763 |
| Adjustment housing to IFRS | 210 | 400 | -8 | 2,586 | 61 | 103 | 24 | 364 |
| IFRS 16' additional leases | – | – | – | – | 10 | 11 | 43 | 36 |
| Group, IFRS | 17,335 | 17,185 | 58,581 | 61,283 | 1,067 | 1,369 | 2,693 | 3,163 |
| Of which construction contract businesses according to segment reporting (Construction and Civil Engineering) |
12,427 | 11,434 | 41,290 | 40,356 | 365 | 236 | 1,216 | 915 |
| Operating margin | |||||
|---|---|---|---|---|---|
| Percent | Oct-Dec 2025 |
Oct-Dec 2024 |
Jan-Dec 2025 |
Jan-Dec 2024 |
|
| Construction | 2.1 | 1.5 | 2.2 | 1.7 | |
| Civil Engineering | 4.1 | 2.9 | 4.0 | 3.0 | |
| Industry | 12.0 | 10.7 | 7.4 | 6.6 | |
| – of which Swerock/Asphalt | 14.1 | 10.0 | 8.6 | 6.9 | |
| – of which Construction system | 2.4 | 13.0 | 1.2 | 4.6 | |
| Project Development | 7.0 | 30.0 | 5.5 | 17.0 | |
| – of which Property Development | 336.0 | 83.8 | 137.3 | 120.0 | |
| – of which Housing Development | 2.1 | -1.1 | 0.2 | -2.7 | |
| Group functions | |||||
| Eliminations | |||||
| Group, segment reporting | 5.8 | 7.5 | 4.5 | 4.7 | |
| Adjustment housing to IFRS | |||||
| IFRS 16' additional leases | |||||
| Group, IFRS | 6.2 | 8.0 | 4.6 | 5.2 | |
| Of which construction contract businesses according to segment reporting (Construction and Civil Engineering) |
2.9 | 2.1 | 2.9 | 2.3 |
{10}------------------------------------------------
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
October – December 2025
Business area Construction had a high level of activity, particularly in Sweden during the fourth quarter. Net sales increased by ten percent and amounted to SEK 7,169 million (6,541). Operating profit increased during the quarter and amounted to SEK 148 million (96) and the operating margin improved to 2.1 percent (1.5).
January – December 2025
Net sales for 2025 decreased slightly and amounted to SEK 23,683 million (23,817). There is a greater portion in net sales of industrial projects while the portion of housing construction decreased. A large part of net sales in 2025 consisted of various types of premise construction for the public sector.
Operating profit increased during the year and amounted to SEK 512 million (416) and the operating margin improved to 2.2 percent (1.7).
Orders received and order backlog
October – December 2025
The level of orders received during the fourth quarter was 5,918 SEK million (6,325).
January – December 2025
The level of orders received increased during the year and amounted to SEK 25,298 million (22,224). There is a large portion of projects for the public sector in orders received. The year's orders received include construction of Hitachi Energy's new campus at Finnslätten in Västerås for SEK 1.1 billion. The comparison period included a new swimming pool block containing a swimming pool facility, homes, commercial premises and parking space in Partille worth around SEK 1.3 billion as well as construction of Gothenburg's new station building for SEK 870 million. The level of orders received amounted to 107 percent (93) of netsales for the full year 2025.
Order backlog on December 31, 2025 was SEK 25,134 million (23,188). The portion of housing projects at the end of the year was 31 percent (29).
Merging businesses 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 combined net sales of the two companies are expected to amount to around NOK 1.9 billion in 2025. The two companies have a total of 350 employees. The KB Gruppen will own 62.5 percent of the new associated company and Peab will own 37.5 percent. Peab will recognize the company as an associated company in 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 by the competition authorities and closing is expected to take place in the first quarter 2026.
Net sales
per product area
per geographic market
Order backlog, December 31, 2025
per product area
per project size
Key ratios
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Net sales, MSEK | 7,169 | 6,541 | 23,683 | 23,817 |
| Operating profit, MSEK | 148 | 96 | 512 | 416 |
| Operating margin, % | 2.1 | 1.5 | 2.2 | 1.7 |
| Orders received, MSEK | 5,918 | 6,325 | 25,298 | 22,224 |
| Orders received/net sales, % | 83 | 97 | 107 | 93 |
| Order backlog, MSEK | 25,134 | 23,188 | 25,134 | 23,188 |
| Operating cash flow, MSEK | -73 | -93 | 1,576 | -3 |
| Average number of employees | 4,124 | 4,356 | 4,163 | 4,477 |
{11}------------------------------------------------
Business area Civil Engineering
Business area Civil Engineering is a leading actor in Sweden and one of the larger players in Norway. Civil Engineering works with landscaping and pipelines, builds and maintains roads, railroads, bridges and other infrastructure as well as does foundation work. Operations are organized in five geographic regions, one region for foundations and one specialized nationwide region in Sweden for operation and maintenance.
Local market in business area Civil Engineering works with landscaping, streets, pipelines, foundation work as well as construction of different kinds of facilities and water line and pipeline systems. Infrastructure and heavy construction builds roads, railroads, bridges, tunnels and ports. Operation and maintenance handles national and municipal highways and street networks, tends parks and outdoor property as well as operates water and sewage networks.
Net sales and profit
October – December 2025
Activity was high during the fourth quarter 2025 in business area Civil Engineering. Net sales increased by seven percent to SEK 5,258 million (4,893). Operating profit increased to SEK 217 million (140) and the operating margin improved to 4.1 percent (2.9).
January – December 2025
Activity was high during 2025 in business area Civil Engineering in both Sweden and Norway. Several Nordic governments have announced major investments in infrastructure, both new investments and operation and maintenance. In addition, public projects are being carried out in areas such as water and sewage and power supply as well as in investments related to the ongoing climate transition.
Net sales increased during the year by six percent to SEK 17,607 million (16,539). Adjusted for divested operations and exchange rate effects, net sales increased by seven percent.
Operating profit increased and amounted to SEK 704 million (499) and the operating margin improved to 4.0 percent (3.0).
Orders received and order backlog
October – December 2025
The level of orders received increased significantly during the fourth quarter 2025 and amounted to SEK 6,682 million (3,229). The level of orders received includes the continuation of the West Link's Haga-Rosenlund stage in Gothenburg for the Swedish Transport Administration. The commission amounts to a total of SEK 5.5 billion, of which SEK 4 billion was ordered during the fourth quarter 2025 and SEK 1.5 billion was ordered in 2024.
January – December 2025
The level of orders received was lower during 2025 and amounted to SEK 20,019 million (22,453). The level of orders received in the comparable period was high and included West Link's Haga-Rosenlund stage in Gothenburg worth around SEK 1.5 billion, a new dock in Skellefteå worth about SEK 1.1 billion, operation and maintenance contracts for about SEK 1.1 billion and New Bodø Airport worth NOK 3.3 billion. The level of orders received was 114 percent (136) of net sales for the full year 2025.
Order backlog on December 31, 2025 amounted to SEK 22,201 million (19,853). Roads and other infrastructure make up the largest portion of the order backlog at 47 percent (38).
Net sales
per product
per geographic market
Order backlog, December 31, 2025
per product
per project size
Key ratios
| Oct-Dec | Oct-Dec | Jan-Dec | Jan-Dec | |
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Net sales, MSEK | 5,258 | 4,893 | 17,607 | 16,539 |
| Operating profit, MSEK | 217 | 140 | 704 | 499 |
| Operating margin, % | 4.1 | 2.9 | 4.0 | 3.0 |
| Orders received, MSEK | 6,682 | 3,229 | 20,019 | 22,453 |
| Orders received/net sales, % | 127 | 66 | 114 | 136 |
| Order backlog, MSEK | 22,201 | 19,853 | 22,201 | 19,853 |
| Operating cash flow, MSEK | 86 | 252 | 900 | 697 |
| Average number of employees | 3,156 | 3,276 | 3,140 | 3,235 |
{12}------------------------------------------------
Business area Industry
Business area Industry provides products and services that make construction and civil engineering projects on the Nordic market more sustainable and costefficient. With local roots we work with both external and internal customers.
Business area Industry offers everything from mineral aggregates, concrete, paving and temporary electricity to prefabricated concrete elements and frame assembly. The business area also provides crane, barrack and machine rental, distribution of binder to the concrete industry, transportation and recycles surpluses from the construction and civil engineering industry. The business area is run in two units, Swerock/Asphalt and Construction system. Swerock/Asphalt runs product areas mineral aggregates, paving, concrete and transportation and machines and Construction system comprises prefab and rentals.
Net sales and profit
Business area Industry has a very clear seasonal pattern where the first quarter is characterized by substantial deficits since the paving season begins in the second quarter.
October – December 2025
Net sales for the fourth quarter 2025 decreased by eight percent to SEK 5,123 million (5,576). The decrease is mainly related to Swerock/Asphalt with lower volumes in paving in Finland and Norway.
Operating profit increased during the fourth quarter and amounted to SEK 615 million (597) and the operating margin improved to 12.0 percent (10.7). The improvement came from Swerock/Asphalt where the operating margin increased to 14.1 percent (10.0) while Construction system reported lower profitability as it continued to be affected by the weak housing market. The operating margin in Construction system contracted to 2.4 percent (13.0).
January – December 2025
Net sales for 2025 decreased by seven percent to SEK 20,037 million (21,548). Adjusted for divested operations and exchange rate effects, net sales decreased by six percent. The drop is mainly related to Swerock/Asphalt's paving operations in Finland, where volumes were higher last year due to a positive effect from the Finnish government's extra appropriations. Volumes were also lower in Norwegian paving operations during the year because of an overhaul due to low earnings for a while. In addition, there has been less activity in Construction system as a result of the weak market for new housing production.
Operating profit during the year increased and amounted to SEK 1,485 million (1,415) and the operating margin 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. The operating margin for the unit Construction system contracted to 1.2 percent (4.6), due to a continued weak market for new housing production.
Capital employed at the end of the year decreased and was SEK 9,198 million compared to SEK 9,920 million at the end of last year. The decrease is mainly due to a lower investment rate and an improvement in working capital.
Orders received and order backlog
October – December 2025
The level of orders received increased during the fourth quarter and amounted to SEK 3,341 million (3,091). The level of orders received was higher in Construction system during the quarter while it was lower in Swerock/Asphalt.
January – December 2025
The level of orders received during the year was slightly lower and amounted to SEK 13,246 million (13,763). The decline in orders received is related to Swerock/Asphalt and the Finnish and Norwegian paving operations. The level of orders received increased in Construction system during the year. Order backlog on December 31, 2025 amounted to SEK 5,390 million (4,282).
Net sales
per product area
per geographic market
{13}------------------------------------------------
Key ratios
| Oct-Dec 2025 |
Oct-Dec 2024 |
Jan-Dec 2025 |
Jan-Dec 2024 |
|
|---|---|---|---|---|
| Net sales, MSEK | 5,123 | 5,576 | 20,037 | 21,548 |
| of which Swerock/Asphalt | 4,192 | 4,611 | 16,770 | 17,974 |
| of which Construction system | 1,063 | 1,050 | 3,672 | 3,875 |
| of which eliminations | -132 | -85 | -405 | -301 |
| Operating profit, MSEK | 615 | 597 | 1,485 | 1,415 |
| of which Swerock/Asphalt | 590 | 461 | 1,440 | 1,238 |
| of which Construction system | 25 | 136 | 45 | 177 |
| Operating margin, % | 12.0 | 10.7 | 7.4 | 6.6 |
| of which Swerock/Asphalt | 14.1 | 10.0 | 8.6 | 6.9 |
| of which Construction system | 2.4 | 13.0 | 1.2 | 4.6 |
| Orders received, MSEK | 3,341 | 3,091 | 13,246 | 13,763 |
| of which Swerock/Asphalt | 2,492 | 2,778 | 11,430 | 12,469 |
| of which Construction system | 849 | 313 | 1,816 | 1,267 |
| Order backlog, MSEK | 5,390 | 4,282 | 5,390 | 4,282 |
| of which Swerock/Asphalt | 3,824 | 3,286 | 3,824 | 3,286 |
| of which Construction system | 1,566 | 996 | 1,566 | 996 |
| Capital employed at the end of the period, MSEK | 9,198 | 9,920 | 9,198 | 9,920 |
| of which Swerock/Asphalt | 6,443 | 7,092 | 6,443 | 7,092 |
| of which Construction system | 2,755 | 2,828 | 2,755 | 2,828 |
| Operating cash flow, MSEK | 1,359 | 1,465 | 1,951 | 2,324 |
| Average number of employees | 4,592 | 4,641 | 4,382 | 4,441 |
| Volumes Swerock/Asphalt | Oct-Dec 2025 |
Oct-Dec 2024 |
Jan-Dec 2025 |
Jan-Dec 2024 |
| 3 1) Concrete, thousands of m |
256 | 261 | 902 | 916 |
Paving, thousands of tons 1,306 1,498 6,159 6,671 Mineral Aggregates, thousands of tons 7,096 7,751 25,363 27,830
1)
1)
Refers to sold volume
{14}------------------------------------------------
Business area Project Development
Business area Project Development, which comprises Housing Development and Property Development, develops sustainable and vibrant urban environments with residential, commercial and public property.
The business area Project Development is responsible for the Group's property acquisitions and divestitures as well as project development which generates contract work for the other business areas. Project Development works through wholly owned companies or in collaboration with other partners in joint ventures.
Housing Development offers a broad range of housing forms including apartment buildings with tenant-owner apartments, condominiums and apartments for rent.
Property Development develops office buildings, premises and sometimes entire city districts in collaboration with municipalities and other partners. Operations are primarily concentrated to metropolitan areas throughout the Nordic region.
Net sales and profit
October – December 2025
Net sales in Project Development amounted to SEK 1,711 million (1,737) during the fourth quarter 2025. Operating profit amounted to SEK 120 million (521) and the operating margin was 7.0 percent (30.0).
January – December 2025
Net sales in Project Development during 2025 were SEK 4,345 million (4,270). Operating profit amounted to SEK 238 million (728) and the operating margin was 5.5 percent (17.0).
Capital employed in Project Development at the end of the year amounted to SEK 18,220 million (19,767).
Capital employed
| MSEK | Dec 31 2025 |
Dec 31 2024 |
|---|---|---|
| Operations property | 31 | 34 |
| Investment property | 35 | 36 |
| Project and development property | 16,477 | 17,017 |
| of which housing development rights | 8,689 | 9,344 |
| of which commercial development rights | 1,575 | 1,671 |
| of which ongoing housing projects | 3,114 | 2,740 |
| of which ongoing commercial projects | 454 | 115 |
| of which completed and repurchased homes | 1,348 | 1,895 |
| of which completed commercial property | 1,297 | 1,252 |
| Shares in joint ventures | 1,613 | 2,880 |
| Loans to joint ventures | 492 | 484 |
| Working capital and other | -428 | -684 |
| Total | 18,220 | 19,767 |
| of which Property Development | 4,585 | 6,165 |
| of which Housing Development | 13,635 | 13,602 |
Key ratios
| Oct-Dec 2025 |
Oct-Dec 2024 |
Jan-Dec 2025 |
Jan-Dec 2024 |
|
|---|---|---|---|---|
| Net sales, MSEK | 1,711 | 1,737 | 4,345 | 4,270 |
| of which Property Development | 25 | 636 | 166 | 686 |
| of which Housing Development | 1,686 | 1,101 | 4,179 | 3,584 |
| Operating profit, MSEK | 120 | 521 | 238 | 728 |
| of which Property Development | 84 | 533 | 228 | 823 |
| of which Housing Development | 36 | -12 | 10 | -95 |
| Operating margin, % | 7.0 | 30.0 | 5.5 | 17.0 |
| of which Property Development | 336.0 | 83.8 | 137.3 | 120.0 |
| of which Housing Development | 2.1 | -1.1 | 0.2 | -2.7 |
| Capital employed at the end of the period, MSEK | 18,220 | 19,767 | 18,220 | 19,767 |
| Orders received, MSEK | 928 | 1,246 | 2,865 | 2,213 |
| Order backlog, MSEK | 1,702 | 1,536 | 1,702 | 1,536 |
| Operating cash flow, MSEK | 922 | 204 | 552 | 423 |
| Average number of employees | 120 | 139 | 126 | 155 |
{15}------------------------------------------------
Housing Development
October – December 2025
Net sales in the fourth quarter 2025 amounted to SEK 1,686 million (1,101). Operating profit was SEK 36 million (-12) and the operating margin was 2.1 percent (-1.1).
As of 2025 our own housing development projects are divided into three categories: Tenant-owner apartments/condominiums where net sales and profit in segment reporting are successively reported as the projects are completed. Orders received and order backlog are also reported for this type of property. Rental apartments, which are built on our own balance sheet and where net sales and profit are reported at one point in time when Peab sells the property to an external party. Homes on our own balance sheet are projects that are productionstarted and built on our own balance sheet and can then be converted into tenant-owner apartments/condominiums or sold as rental apartments. Net sales and profit are reported first when the housing project is reclassified either as tenant-owner apartments/condominiums and then successively reported as the project is completed, or sold and turned over as rental apartments.
During the quarter a total of 358 (225) homes were started of which 178 were tenant-owner apartments/condominiums, all of which have been converted from homes on our own balance sheet, 102 (–) were homes in rental apartment projects and 78 were homes on our own balance sheet. During the fourth quarter last year 209 were converted from housing on our own balance sheet. The number of sold homes during the quarter was 344 (290), of which 108 (267) were tenant-owner apartments/condominiums, 211 (–) were rental apartments and 25 (23) were homes on our own balance sheet under production.
January – December 2025
Net sales increased by 17 percent and amounted to SEK 4,179 million (3,584) during the year. Operating profit was SEK 10 million (-95) and the operating margin was 0.2 percent (-2.7).
Production started on a total of 1,161 (470) own developed homes during the year. Of these 733 (657) were tenant-owner apartments/condominiums, of which 414 (209) were converted from homes on our own balance sheet. Two of the new housing developments are located in Stockholm, one on Kvarnholmen in Nacka and one in Råsunda in Solna. This demonstrates that it is possible to start tenantowner housing projects with pre-sales in unique locations. Production started on 292 (–) rental apartments. Production started on net 136 (-187) homes as new housing developments on our own balance sheet. The total number of homes sold during the year was 1,248 (1,031), of which 575 (710) were tenant-owner apartments/condominiums, 568 (298) were rental apartments and 105 (23) were homes on our own balance sheet under production.
The total number of homes in production at the end of the year was 2,006 (1,572), of which 1,225 (1,056) were tenant-owner apartments/condominiums, 209 (80) were homes in rental apartment projects and 572 (436) were homes on our own balance sheet. The sales rate for the total number of homes in production at the end of the year was 37 percent, which was the same as at the end of 2024. The sales rate for tenant-owner apartments/condominiums was 44 percent (45). The total number of completed and repurchased homes was 370 (572), of which 364 (266) were tenant-owner apartments/condominiums and 6 (306) were rental apartments.
The housing market seems to have established itself on a new level, which means that in recent years considerably fewer homes have been production-started than we have been used to. We adapt and we are where the market is. At the same time, we see that the trend of higher sales as the project approaches completion continues. Since the beginning of the year we have therefore been working with the strategy – given our financial targets – of increasing production of our own housing developments on our own balance sheet to later convert them into tenant-owner apartments.
This is particularly the case for projects in metropolitan areas. Starting projects on our own balance sheet increases our tied-up capital and entails deferred effects on profit in segment reporting compared with our traditional method of advance sales before production-starts of our own developments.
The market for new production of homes stabilized in 2025. Lower interest rates, proposals to ease mortgage regulations and stabilized prices on the secondhand market help. However, supply on the secondhand market remains high which, together with consumer caution, means that the market differs. The markets in the big cities and good micro locations are better than in other places that are still weak. We see a similar development in Sweden, Norway and Finland.
Capital employed amounted to SEK 13,635 million (13,602) at the end of the year.
Peab develops and builds nursing home in Stockholm
Peab and Heba will together in the newly formed company Villa Primus AB develop a nursing home on Lilla Essingen in Stockholm. The nursing home will have room for 160 housing units and one sheltered accommodation with six beds. The project contributes to Stockholm's growing need for modern and safe housing for the elderly. The property comprises 12,000 m GFA with more than 10,000 m of lettable area and is designed with a strong focus on functionality, accessibility and sustainability. Heba took possession of its share in the joint company in the fourth quarter of 2025. The company will own the project until completion, which is expected to occur in 2028. After that, Heba will acquire the nursing home. Both the nursing home and the sheltered accommodation are fully leased on 20 year leases to the care group Ambea. Villa Primus will be certified according to Miljöbyggnad Silver 4.0 and achieve energy class B or better. The building will be built with climate-improved concrete and the roof will be equipped with sedum and solar panels to further reduce its energy and climate footprint. 2 2
Peab has signed a contract for the sale of rental apartment buildings in Vellinge
Peab has signed a contract for the sale of a rental apartment project worth SEK 260 million in Vellinge to the Folksam Group. The rental apartments are expected to be completed and transferred at the turn of the year 2027/2028. The housing project Vallmovallen is located in central Vellinge, within the so-called Campus area, where Peab has been an active part of its development since 2022. The project comprises 102 apartments of varying sizes and commercial space totaling over 6,000 m . The buildings will be certified according to Miljöbyggnad Silver. 2
Net sales
per geographic market
{16}------------------------------------------------
Development rights for housing
| Dec 31 | Dec 31 | |
|---|---|---|
| Number, approx. | 2025 | 2024 |
| Development rights on our own balance sheet | 22,900 | 24,000 |
| Development rights via joint ventures | 4,900 | 3,700 |
| Development rights via options etc. | 5,200 | 7,400 |
| Total | 33,000 | 35,100 |
Number of sold homes
| Number | Oct-Dec 2025 |
Oct-Dec 2024 |
Jan-Dec 2025 |
Jan-Dec 2024 |
|---|---|---|---|---|
| Tenant-owner apartments/condominiums |
108 | 267 | 575 | 710 |
| Rentals | 211 | – | 568 | 298 |
| Homes on our own balance sheet |
25 | 23 | 105 | 23 |
| Total number of homes | 344 | 290 | 1,248 | 1,031 |
Number of started-up homes
| Number | Oct-Dec 2025 |
Oct-Dec 2024 |
Jan-Dec 2025 |
Jan-Dec 2024 |
|---|---|---|---|---|
| Tenant-owner apartments/condominiums |
178 | 412 | 733 | 657 |
| – of which converted from homes on our own balance sheet |
178 | 209 | 414 | 209 |
| Rentals | 102 | – | 292 | – |
| Homes on our own balance sheet |
78 | -187 | 136 | -187 |
| – of which converted to tenant-owner apartments/condominiums |
-178 | -209 | -414 | -209 |
| Total number of homes | 358 | 225 | 1,161 | 470 |
Number of homes in ongoing production
| Dec 31 | Dec 31 | |
|---|---|---|
| Number | 2025 | 2024 |
| Tenant-owner apartments/condominiums | 1,225 | 1,056 |
| – of which sold share | 44% | 45% |
| Rentals | 209 | 80 |
| – of which sold share | 89% | 100% |
| Homes on our own balance sheet | 572 | 436 |
| – of which sold share | 3% | 4% |
| Total number of homes | 2,006 | 1,572 |
| – of which sold share | 37% | 37% |
Number of completed and repurchased homes
| Dec 31 | Dec 31 | |
|---|---|---|
| Number | 2025 | 2024 |
| Tenant owner apartments/condominiums | 364 | 266 |
| Rentals | 6 | 306 |
| Total number of homes | 370 | 572 |
Time of completion of our own ongoing housing developments
{17}------------------------------------------------
Property Development
Net sales and operating profit from operations are derived from acquiring, developing, running and managing wholly owned property, shares in profit from joint ventures as well as capital gains/losses from the divestiture of completed property and shares in joint ventures.
October – December 2025
Net sales for the fourth quarter 2025 were SEK 25 million (636) and operating profit was SEK 84 million (533). Capital gains from property divestitures and participations in joint ventures amounted to SEK 53 million (169). Profit contributions from joint ventures were SEK 47 million (385). During the fourth quarter 2024 assets in the joint venture Fastighets AB Centur were divided up where both Peab and the other owner, Fastighets AB Balder, acquired the majority of the property portfolio. The transactions had a positive effect on operating profit in Property Development of SEK 367 million which was recognized in profit from joint ventures.
January – December 2025
Net sales for 2025 were SEK 166 million (686) and operating profit was SEK 228 million (823). Capital gains from property divestitures and participations in joint ventures amounted in total to SEK 117 million (440). The comparable period included capital gains of SEK 220 million from the sale of shares in the joint venture Tornet Bostadsproduktion. Profit contributions from joint ventures amounted to SEK 163 million (441). During the fourth quarter 2024 assets in the joint venture Fastighets AB Centur were divided up where both Peab and the other owner, Fastighets AB Balder, acquired the majority of the property portfolio. The transactions had a positive effect on operating profit in Property Development of SEK 367 million which was recognized in profit from joint ventures.
At the end of the year capital employed in Property Development was SEK 4,585 million (6,165). Capital employed consists of shares in joint ventures, loans to joint ventures and ongoing and completed property projects. At the beginning of the year, Fastighets AB Centur distributed a dividend of SEK 1,100 million which was offset against an interest-bearing liability generated in connection with the acquisition of properties from Fastighets AB Centur in the fourth quarter 2024.
The table below presents major property projects per December 31, 2025.
Property projects
| Type of project | Location | Rentable 2 area in m |
Degree rented, % |
Recognized value, MSEK |
Adopted investment, MSEK |
Completion time point |
Completion level, % |
|---|---|---|---|---|---|---|---|
| Ongoing | |||||||
| Retail, office building and parking | Malmö | 8,300 | 43 | 300 | 592* | Q3-2027 | 51 |
| Retail | Malmö | 8,600 | 100 | 99 | 164 | Q4-2026 | 60 |
| Preschool | Upplands Väsby | 1,200 | 100 | 30 | 67 | Q4-2026 | 45 |
| Completed | |||||||
| Office building | Gothenburg | 12,900 | 69 | 563 | |||
| Apartment hotel | Malmö | 4,200 | 100 | 135 | |||
| Office building | Malmö | 2,500 | 100 | 138 | |||
| Office building | Malmö | 3,600 | 100 | 127 | |||
| Office building | Malmö | 4,900 | 100 | 255 |
* The amount includes approximately 17,000 m of parkering space
Significant joint ventures
Peab's significant joint ventures Fastighets AB ML4, Point Hyllie Holding AB and Skiab Invest AB are developing well and via them Peab has built up considerable indirect holdings in investment property and development property for both commercial and residential purposes. Regular returns are in the form of shares in the profit from joint ventures recognized in operating profit and interest income from lending. Changes in market values that affect book values in the joint ventures are not included in Peab's accounts.
Fastighets AB ML4
Own and manage the research facility Max IV. The facility is rented to Lund University.
Peab's share: 50 percent Partner: Wihlborgs Geography: Lund
Recognized value on properties December 31, 2025: SEK 1,791 million (1,840)
Major ongoing projects: No major ongoing projects
Point Hyllie Holding AB
Own and manage the office property The Point as well as the hotel property Värdshuset 5 (Operator Quality Hotel View).
Peab's share: 50 percent Partner: Volito
Geography: Hyllie, Malmö
Recognized value on properties December 31, 2025: SEK 1,308 million (1,344)
Major ongoing projects: No major ongoing projects
Skiab Invest AB
Develop, own and manage commercial property and housing in the Scandinavian mountains.
Peab's share: 50 percent
Partner: SkiStar
Geography: Scandinavian mountains
Recognized value on properties December 31, 2025 : SEK 2,341 million (2,157) Peab's portion of unrecognized fair value exclusive tax : SEK 93 million (59) 1) 1)
Major ongoing projects: 37 condominiums, Trysil Suites in Trysil, 100 apartments, Wasakölen in Lindvall, Sälen
Valued at market price in joint ventures. Market prices on properties that affect the recognized values in the joint ventures are not included in Peab's accounts.
{18}------------------------------------------------
Non-financial targets and sustainability
Every day Peab contributes to sustainable social development and works to improve everyday life for people in their local communities. We do this by building everything from homes, schools and hospitals to bridges, roads and other infrastructure. Working sustainably is a strategic matter for Peab that primarily takes place locally, connected to everyday life based on our core values, business concept, mission, strategic targets and Code of Conduct.
We monitor our business based on nine external targets – both financial and nonfinancial – that also identify our material sustainable aspects. These are found in the strategic targets Best workplace and Leader in social responsibility. We report the targets quarterly, semi-annually or annually. In this report we report the outcome of all nine targets.
Most satisfied customers
It is imperative for a long-term, sustainable relationship that Peab deliver on its obligations to customers. A satisfied customer is a customer that comes back and is vital to marketing our company. Our annual customer survey is an important measure of how well we are meeting our customers' expectations while also indicating where there is room for improvement.
In our measurement method of Customer Satisfaction Index (CSI) each business area equals a fourth of the rating for the Group's compiled CSI result. In 2025 CSI amounted to 80 (78) which is a clear increase and bit over our target of at least 75. We are pleased to see that all four business areas have improved their CSI ratings. In connection with the CSI survey we also ask customers how they perceive Peab based on a number of factors. Our personnel receive the top rating which continues to rise while reliability and price worthiness maintain high ratings. Almost 2,100 customers participated in the autumn survey. Now we will continue to work together with our customers – and strive for early and close dialogues – to achieve the highest possible value for customers and their greatest satisfaction with Peab.
Best workplace
Peab's business is founded on a strong corporate culture. Employees can make a difference by building the local community in the places all over the Nordic region where they live and work. Every employee has a great deal of personal responsibility, and should have both good working conditions and development opportunities as well as safe and inclusive workplaces.
Serious accidents
A safe work environment is the foundation of our business. Everyone at our workplaces should be able to be there under safe and secure conditions, despite the fact that there are risks involved in the work we do. Peab has a vision of zero workplace accidents. We continuously develop our quality-assured work methods and train our employees to reinforce our safety culture. The focus is on preventive work, remediation of reported incidents and risk observations, and learning from them and as of the fourth quarter positive observations.
In order to reach our vision of zero workplace accidents, we have a target of a contracting trend in serious accidents* that includes everyone at our workplaces. The number of serious accidents increased in the final quarter of the year after several quarters with fewer accidents. The total number was 49 for the full year 2025 which can be compared to 33 for the full year 2024. During the last quarter 2025 there were 26 serious accidents, primarily in construction operations, of which 15 involved our own employees and 11 concerned employees of subcontractors. There are investigations and analyses underway to break the negative trend.
We also monitor the number of workplace accidents with more than four days absence, excluding the day of injury (LTI4), and workplace accidents according to the same definition per one million hours worked (LTIF4) for our own employees. During the fourth quarter of the year the number of LTI4 was 41 (29 in the third quarter 2025) and the LTIF4 frequency rate for 2025 was 5.6 (5.9 for full year 2024). During the quarter a tragic accident occurred where one of Peab's subcontractors lost their life at a Group quarry.
Attractive employers (eNPS)
We should be the best workplace in the industry and thereby the obvious choice of employer. Twice a year we hold our personnel survey The Handshake so that co-workers and teams can continuously develop. The questions mainly concern productivity, the team's sustainability and employees' willingness to recommend Peab as an employer (eNPS). The latter is also one of our nine external targets and it should be above the benchmark for the industry and manufacturing trade.
In the autumn survey the eNPS value was 31 (32) and continues to be well above the Nordic benchmark which is 17 (18). The most apparent increase in the eNPS value was among female skilled workers. In the survey employees continue to value collaboration with co-workers and community while many note their appreciation of Peab's core values in the comments. Participation was once again high at 88.6 percent (90.9), although not the record participation in the previous survey. This shows the high interest our employees have in contributing to the development of our business.
* For a definition see section Alternative performance measures and definitions.
Leader in social responsibility
Carbon dioxide intensity
As the Nordic Community Builder we have a big responsibility for reducing the considerable climate impact of the construction and civil engineering industry at the rate required by the Paris Agreement. Peab impacts the environment and the climate through our own operations and for the impact of our value chains upstream and downstream. Operations primarily cause emissions of greenhouse gases by using various materials in production like concrete, steel and asphalt. Two other major sources of carbon emissions in production are energy consumption and transportation. So these are the areas where we prioritize our emission reduction activities. As community builders we also have a comprehensive perspective on our climate work and strive to contribute to a sustainable society on the whole by building, for example, solar power plants and railroads or by building in such a way that people can live more sustainably. It is an advantage that we can supply our construction contract operations and the projects we develop ourselves with input goods and raw material through business area Industry, which augments our ability to actively steer towards lower carbon emissions.
In 2045 Peab will be climate neutral. Our sub-targets by 2030, with 2015 as the base year, are to reduce carbon dioxide intensity by at least 60 percent in our own operations (Scope 1 and 2) and for input goods and purchased services (Scope 3 upstreams) by at least 50 percent.
The outcome for 2025 shows that carbon dioxide intensity in our own operations, pertaining to fuel and energy, has gone down by 58 percent since 2015. The transition to green energy is a positive factor while the change in Sweden of the reduction obligation has a counterproductive effect. We are now close to achieving our target of 60 percent reduction before 2030.
Carbon dioxide intensity for input goods and purchased services comprises concrete, cement, asphalt/bitumen, steel, waste, transportation and machine services and business trips. In 2025 carbon dioxide intensity has gone down by seven percent since 2015. The outcome for the year has been impacted by items affecting comparability that mainly refer to the much higher emission factor for bitumen, and that as of 2025 the target includes more input goods such as the binder for fundament reinforcement. An increase in the volume of bitumen purchased also impacted the outcome. Peab has a tight dialogue with suppliers, customers and other stakeholders to reduce our carbon footprint in Scope 3.
We work actively to increase the scope and quality of our metrics of greenhouse gases emissions, which is apparent in the data reported for 2025.
Equal opportunity recruitment
The construction and civil engineering industry has a major role to play in taking advantage of all the competence society has to offer. As one of the largest Nordic community builders we want to contribute to nudging the entire industry forward. The portion of women that graduate with, for Peab, degrees in relevant, practical education in the Nordic region is around eight percent. Our target is that the percentage of women recruited to Peab for our core skills should always be higher than the percentage of women who have graduated with, for us, relevant degrees on the education markets. Therefore our target for 2025 was at least 8.0 percent. We are focused on core skills in production (skilled workers) as well as in production management and production support (white-collar workers).
At the end of 2025 the percentage of women in new recruitments was 13.7 (10.6) percent in production and processing. The portion for new recruitment in production management and production support rose to 43.8 (39.1) percent compared to our target of at least 30.0 percent. There have been relatively few recruit ments during the past year because of the current market situation.
{19}------------------------------------------------
Activities during the fourth quarter
- Byggelement took the next step in development of climate improved prefab products and began castings with ECO 70. This means that Peab can now replace 70 percent of the cement with alternative binder in some of its products. This has become possible since a new industry standard for concrete came into effect. Peab's considerable investments in its factories in Ucklum and Hallstahammar are a significant factor enabling this development. So far, ECO 70 has been used in slabs, solid walls and half sandwich walls. •
- During the quarter all employees took Peab's interactive course in the Code of Conduct. All employees must take the course every other year to keep their knowledge updated. The Code of Conduct governs how we behave in daily life and is vital for Peab as a responsible company. •
- Peab updated its system for handling work environment and environmental incidents in order to mirror a joint Nordic work method and launched it at •
- the beginning of 2026. The system registers incidents at our workplaces as well as how they are handled and monitored. The system improves our ability to make uniform assessments and comparisons among countries along with enabling external users, like subcontractors, to register incidents.
- When the Swedish Building Workers' Union held its annual work environment week its safety representatives and administrators of work environment matters conducted extra inspections of our workplaces in our Swedish operations. The inspections focused on fall accidents and our work on preventing them. •
- Every year Peab donates a Christmas gift to the UN refugee organ UNHCR. In 2025 the Christmas campaign already began in November since Peab decided to double the monthly gifts from everyone that became a new monthly donor. •
{20}------------------------------------------------
Summary external targets
In order to further promote value creation Peab updated its targets as of 2021 – everything from our mission, business concept and strategic target areas to internal and external financial and non-financial targets. We report the performance of our business by monitoring nine external targets, of which three are financial and based on segment reporting and six are non-financial targets. We consider the external targets particularly important and they are a subset of our internal targets and action plans. At the beginning of 2024, Peab communicated that all nine targets will remain unchanged for the period 2024 – 2026.
Both the internal and external financial and non-financial targets are categorized under the strategic targets: Most satisfied customers, Best workplace, Most profitable company and Leader in social responsibility. All targets relate to the industry. For a more detailed description of each target please see www.peab.com/targets.
Most satisfied customers
We are close to our customers and meet their needs with sustainable offers. Quality permeates our work methods and end results. The right expertise in the right place is key to success.
>75 CSI always over 75
Best workplace
We are a safe, secure and inclusive workplace rooted in a strong company culture. Leadership takes responsibility and is close to operations. Employees have value-creating and developing work assignments that they complete together.
eNPS always over benchmark
Zero Vision serious accidents Through a contracting trend
Most profitable company
We take on the right projects and have the right business mix. Employees work according to quality-ensured work methods that are efficient in every aspect. Through our own resources and internal collaboration we maintain a high degree of value creation. We take advantage of our size and experience.
>6% Operating margin
0.3–0.7 Net debt/equity ratio
Dividend >50% of profit for the year
Leader in social responsibility
As the Nordic Community Builder we drive developments in our industry in matters concerning the climate and environment, ethics, and equal opportunity and inclusion. We work well together with stakeholders in the world around us and stride every day towards a sustainable value chain. With our extensive local presence we are also an important actor in the local community.
-60% Carbon dioxide intensity
Reduction of emissions from our own production by 2030 (Scope 1+2).
-50% Carbon dioxide intensity
Reduction of emissions from input goods and purchased services by 2030 (Scope 3).
Equal opportunity recruitment
Share of women recruited always over the education market
{21}------------------------------------------------
Target and target fulfilment
Most profitable company
Operating margin
Target: >6% according to segment reporting (reported quarterly)
* Years 2017-2018 not translated according to changed accounting principles for own housing development projects.
Most profitable company
Net debt/equity ratio
Target: 0.3-0.7 according to segment reporting (reported quarterly)
* Years 2017-2018 not translated according to changed accounting principles for own housing development projects.
Most profitable company
Dividend
Target: >50% of profit for the year according to segment reporting (reported annually)
* Years 2017-2018 not translated according to changed accounting principles. ** For 2019, no cash dividend has been paid. The value of the distribution of Annehem Fastigheter at the time of the distribution in December 2020 amounted to 97 percent of the profit for the year 2019. *** The proportion is calulated without the effect of SEK 952 million on profit due to the distribution of Annehem Fastigheter. **** Board of Directors' proposal to the AGM.
Best workplace
Serious accidents
Target: Zero fatal accidents and contracting trend, rolling 12 months, serious accidents classification 4 (reported quarterly)
Best workplace
eNPS
Target: > over benchmark (reported semiannually)
eNPS stands for employee Net Promoter Score and measures employee engagement. The score can vary between -100 and 100.
Most satisfied customers
Customer Satisfaction Index (CSI)
Target: > 75 (reported annually)
CSI stands for Customer Satisfaction Index and measures how satisfied Peab's customers are. CSI is a weighted measurement between 0 and 100.
Leader in social responsibility
Carbon dioxide intensity: Climate targets for our own production
Target: Reduced emissions of GHG Scope 1+2* (tons ${\rm CO}_2{\rm e}/{\rm MSEK}$ ) by 60% until 2030 (reported annually)
* Direct and indirect emissions as a result of using fuel and energy in our own production.
Leader in social responsibility
Carbon dioxide intensity: Climate targets for input goods and purchased services
Target: Reduced emissions of GHG Scope 3* (tons CO2e/MSEK) by 50% until 2030 (reported annually)
* Includes concrete/cement, asphalt/bitumen, transportation and machine services, steel, waste and business trips.
Leader in social responsibility
Equal opportunity recruitment
Target: Share of women recruited > the education market (reported annually)
Production management and production support (white-collar workers), %
- Actual - Target
{22}------------------------------------------------
Construction market
Sweden
Despite geopolitical tensions the macroeconomic situation has stabilized. Households have regained confidence and several economic indicators have seen an upturn. Interest rates have improved in step with the gradually decreasing policy rate, which is expected to remain on the same level in 2026.
Housing construction recovery is expected to gradually continue in 2026, albeit from a low level. Lower interest rates, an expected relaxation of home loan regulations and price stabilization on the second hand market will most likely augment demand. High construction costs and the copious offer of existing homes are, however, two important factors that hold back a more robust development of new production.
Investments in premise construction are expected to grow in 2026 after declining for a few years. This development will be supported above all by politically driven investments in the justice system and defense forces, along with investments in datacenters. Development in the renovation market is expected to be slightly positive in housing and somewhat more cautious in premises, where renovations are needed in schools and care buildings along with a growing demand for energy renovations.
Total civil engineering investments are expected to continue to increase in 2026. The new national plan for transportation infrastructure for the years 2026-2037 with higher investments in railroads and road maintenance, expansion of the electricity grid, water and sewage systems as well as more investments in defense generate broad growth in the civil engineering market.
Norway
Activity is expected to increase somewhat in the Norwegian economy and Norges Bank calculates a 1.5 percent increase in 2026. Norges Bank cut the interest rate twice in the autumn of 2025 to help lower inflation without hurting growth possibilities. Real wage growth and low unemployment are expected to boost purchasing power and benefit development in the construction market. However, despite the two latest cuts, interest rates are still high and so the interest burden is holding back households' demand in the housing market.
A gradual increase in housing construction is predicted in 2026 although construction costs and interest levels are slowing down recovery. Home renovations are expected to show continued stable growth.
Production-starts of premise construction remain on a low level but the forecast for 2026 points upwards. The continued high cost of construction and interest levels also have an impact on premise construction. Growing defense investments contribute to development in the premise market although the effects are not yet tangible. However, the large existing building stock needs to be maintained and rebuilt which will gradually increase the need for renovations, which are expected to grow in 2026.
An upturn is expected in the civil engineering market in 2026 compared to 2025. Investments are expected to grow primarily in power and energy plants, railroad and streetcar facilities as well as municipal technique facilities. The forecasts for operation and maintenance are moderate for 2026 but growth will accelerate again in 2027.
Finland
Inflation in Finland is expected to remain under two percent going forward, which together with higher wages and falling interest rates will improve consumers' purchasing power in the coming years. At the same time growth is hampered by global uncertainty and the rate of unemployment in the country.
The housing market is expected to recover in 2026 from low levels, even though the market continues to be cautious and hindered by excess supply and continued sluggish home sales.
Despite the uncertainty, premise construction is expected to increase and drive new production in the construction industry. Office and industrial buildings along with data centers and in particular defense and infrastructure projects are the driving forces. Renovations have developed weakly in recent years and demand in 2026 is expected to be hampered by high renovation costs, even though they are needed and there is potential for growth.
Investments in civil engineering are expected to continue to cautiously grow in 2026, mainly due to higher infrastructure investments. Zero growth is estimated in operation and maintenance, even though the need is great.
Housing
| 2025 | 2026 | 2027 | |
|---|---|---|---|
| Sweden | |||
| Norway | |||
| Finland |
Forecast for production-started housing investments, new production and renovations
Premise investments
| 2025 | 2026 | 2027 | |
|---|---|---|---|
| Sweden | |||
| Norway | |||
| Finland |
Forecast for production-started premise investments, new production and renovations
Civil engineering
| 2025 | 2026 | 2027 | |
|---|---|---|---|
| Sweden | |||
| Norway | |||
| Finland |
Forecast for civil engineering investments
- Same forecast compared to the previous interim report
- Better forecast compared to the previous interim report
- Worse forecast compared to the previous interim report
As of 2025 Prognoscentret provides market forecasts. Construction is divided into housing construction (new homes and renovation) and premise construction (new premises and renovation). Premises comprise all buildings except homes and agricultural buildings. Civil engineering includes new investments and operations and maintenance. The color of the arrows shows the comparison with Prognoscentret's previous forecast.
| Explanation | Symbol |
|---|---|
| Increase by more than 10% | |
| Increase by 3-10% | |
| Unchanged ± 2% | |
| Reduction by 3-10% | |
| Reduction of more than 10% |
{23}------------------------------------------------
Risks and uncertainty factors
Peab's business is exposed to several different types of risks but Peab's four business areas, operations in four countries and customers in both the private and public sectors provide the foundation for spreading risks well. Some risks are out of Peab's control but can have various impacts on the conditions for running a business. These are, for example, developments in the economy, interest rate trends, customer behavior, climate impact and political decisions. There are other risks Peab can in different ways affect by reducing their impact or eliminating them entirely. These are primarily risks in operations that are handled in the line organization in the business areas based on established procedures, processes and governance systems. Group risks are divided into four risk categories: operative risks, financial risks, strategic risks as well as compliance risks.
There are always operative risks in a project-related business like Peab's and managing these risks is a continuous process due to the large number of projects the Group is always starting up, carrying out and completing. Peab's project operations work with a number of different contract forms where risk levels vary depending on the type of contract. However, with any type of contract ambiguities can arise concerning the terms, which can lead to delimitation issues that create a dispute with the customer.
Financial risks are primarily associated with the company's need for capital, tiedup capital and access to financing. Financial risks are mainly managed on Group level.
Strategic risks are risks linked to our mission, our long-term targets and our strategy. The increasing geopolitical unpredictability contributes to a more cautious market and uncertainty concerning investments, inflation and economic development in general. Higher uncertainty impacts the construction industry regarding investments and how prices and access to materials and energy evolve. We constantly work on developing our employees, construction methods and new climate smart construction material in order to meet market needs.
Compliance risks concern, for example, lack of compliance with laws, contracts or internal regulations and guidelines. Other examples are involvement in corruption or improper competition. Compliance risks are not only found in Peab's own organization but in our supply chains as well. The consequences of compliance risks include fines, damaged trust, failed projects and exclusion from procurements.
For further information about risks and uncertainty factors, see the Annual and Sustainability Report 2024.
{24}------------------------------------------------
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 socalled 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 bank-ruptcy 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 Nasdag Stockholm according to the Nordic Main Market Rulebook for Issuers of Shares - Nasdag 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 Nasdag 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.
{25}------------------------------------------------
Income statement for the Group, IFRS
Group net sales according to IFRS amounted during 2025 to SEK 58,581 million (61,283). The adjustment of our own housing development projects to the completion method affected net sales by SEK -8 million (2,586).
Operating profit according to IFRS for 2025 amounted to SEK 2,693 million (3,163) and the operating margin was 4.6 percent (5.2). The adjustment of our own housing development projects to the completion method affected operating profit by SEK 24 million (364).
During the year Peab and Unibail-Rodamco-Westfield agreed to a settlement regarding Mall of Scandinavia, which affected net financial items by SEK -611 million. For more information, see section Other information.
| Net sales Production costs Gross profit Sales and administrative expenses Other operating income Other operating costs |
17,335 -15,622 1,713 -801 151 4 1,067 |
17,185 -14,939 2,246 -932 47 8 |
58,581 -53,053 5,528 -3,237 436 |
61,283 -55,402 5,881 -3,189 482 |
|---|---|---|---|---|
| -34 | -11 | |||
| Operating profit | 1,369 | 2,693 | 3,163 | |
| Financial income Financial expenses |
33 -106 |
66 -150 |
146 -1,144 |
259 -642 |
| Net finance | -73 | -84 | -998 | -383 |
| Pre-tax profit | 994 | 1,285 | 1,695 | 2,780 |
| Tax | -165 | -171 | -332 | -392 |
| Profit for the period | 829 | 1,114 | 1,363 | 2,388 |
| Profit for the period, attributable to: | ||||
| Shareholders in parent company | 829 | 1,121 | 1,357 | 2,392 |
| Non-controlling interests | 0 | -7 | 6 | -4 |
| Profit for the period | 829 | 1,114 | 1,363 | 2,388 |
| Key ratios, IFRS | ||||
| Earnings per share before and after dilution, SEK | 2.90 | 3.90 | 4.74 | 8.32 |
| Average number of outstanding shares, million | 284.1 | 287.5 | 286.4 | 287.5 |
| 1) Return on capital employed, % |
9.9 | 10.8 | 9.9 | 10.8 |
| 1) Return on equity, % |
8.5 | 15.7 | 8.5 | 15.7 |
Calculated on rolling 12 months
{26}------------------------------------------------
Report on the Group income statement and other comprehensive income in summary, IFRS
| MSEK | Oct-Dec 2025 |
Oct-Dec 2024 |
Jan-Dec 2025 |
Jan-Dec 2024 |
|---|---|---|---|---|
| Profit for the period | 829 | 1,114 | 1,363 | 2,388 |
| Other comprehensive income | ||||
| Items that can be reclassified or have been reclassified to profit for the period | ||||
| Translation differences for the period from translation of foreign operations | -91 | 53 | -224 | 41 |
| Changes in fair value of cash flow hedges for the period | -2 | 15 | -19 | 13 |
| Shares in joint ventures' other comprehensive income | 1 | -1 | -1 | -8 |
| Tax referring to items that can be reclassified or have been reclassified to profit for the period | 1 | -3 | 4 | -3 |
| Other comprehensive income for the period | -91 | 64 | -240 | 43 |
| Total comprehensive income for the period | 738 | 1,178 | 1,123 | 2,431 |
| Total comprehensive income for the period, attributable to: | ||||
| Shareholders in parent company | 738 | 1,185 | 1,117 | 2,435 |
| Non-controlling interests | 0 | -7 | 6 | -4 |
| Total comprehensive income for the period | 738 | 1,178 | 1,123 | 2,431 |
{27}------------------------------------------------
Balance sheet for the Group in summary, IFRS
Total assets on December 31, 2025 were SEK 44,543 million (47,768). Equity amounted to SEK 16,479 million (16,504), which generated an equity/assets ratio of 37.0 percent (34.6). During 2025 SEK 788 million (431) was distributed and repurchases of own shares were made in the amount of SEK 415 million (–).
| MSEK | Dec 31 2025 |
Dec 31 2024 |
|---|---|---|
| Assets | ||
| Intangible assets | 3,509 | 3,727 |
| Tangible assets | 7,377 | 7,653 |
| Investment property | 59 | 59 |
| Interest-bearing long-term receivables | 503 | 516 |
| Other long-term receivables | 1,573 | 2,889 |
| Deferred tax recoverables | 49 | 48 |
| Total fixed assets | 13,070 | 14,892 |
| Project and development properties | 17,451 | 18,342 |
| Inventories | 1,520 | 1,612 |
| Interest-bearing current receivables | 20 | 1,127 |
| Other current receivables | 9,337 | 10,317 |
| Liquid funds | 3,145 | 1,478 |
| Total current assets | 31,473 | 32,876 |
| Total assets | 44,543 | 47,768 |
| Equity | ||
| Equity attributable to shareholders in parent company | 16,455 | 16,482 |
| Non-controlling interests | 24 | 22 |
| Total equity | 16,479 | 16,504 |
| Liabilities | ||
| Interest-bearing long-term liabilities | 5,853 | 6,094 |
| Interest-bearing long-term liabilities, project financing | 5 | 53 |
| Deferred tax liabilities | 394 | 544 |
| Other long-term liabilities | 1,660 | 1,657 |
| Total long-term liabilities | 7,912 | 8,348 |
| Interest-bearing current liabilities | 3,419 | 5,368 |
| Interest-bearing current liabilities, project financing | 2,360 | 2,859 |
| Other current liabilities | 14,373 | 14,689 |
| Total current liabilities | 20,152 | 22,916 |
| Total liabilities | 28,064 | 31,264 |
| Total equity and liabilities | 44,543 | 47,768 |
| Key ratios, IFRS | ||
| Capital employed | 28,116 | 30,878 |
| Equity/assets ratio, % | 37.0 | 34.6 |
| Net debt | 7,969 | 11,253 |
| Equity per share, SEK | 58.34 | 57.34 |
| Number of outstanding shares at the end of the period, million | 282.1 | 287.5 |
{28}------------------------------------------------
Summary of changes in Group equity, IFRS
| MSEK | Dec 31 2025 |
Dec 31 2024 |
|---|---|---|
| Equity attributable to shareholders in parent company | ||
| Opening equity on January 1 | 16,482 | 14,453 |
| Profit for the period | 1,357 | 2,392 |
| Other comprehensive income for the period | -240 | 43 |
| Total comprehensive income for the period | 1,117 | 2,435 |
| Cash flow hedge transferred to cost of inventory | 4 | -1 |
| Tax on cash flow hedge | -1 | 0 |
| Contribution from, and value transferred to, owners | ||
| Share-based payments settled with equity instruments | 56 | 26 |
| Repurchase of own shares | -415 | – |
| Cash dividend | -788 | -431 |
| Total contribution from, and value transferred to, owners | -1,147 | -405 |
| Closing equity | 16,455 | 16,482 |
| Non-controlling interests | ||
| Opening equity on January 1 | 22 | 17 |
| Comprehensive income for the period | 6 | -4 |
| Contribution from, and value transferred to, owners | ||
| Cash dividend | -4 | – |
| New issues | – | 9 |
| Total contribution from, and value transferred to, owners | -4 | 9 |
| Closing equity | 24 | 22 |
| Total closing equity | 16,479 | 16,504 |
{29}------------------------------------------------
Cash flow statement for the Group in summary, IFRS
| MSEK | Oct-Dec 2025 |
Oct-Dec 2024 |
Jan-Dec 2025 |
Jan-Dec 2024 |
|---|---|---|---|---|
| Cash flow from current operations before changes in working capital | 1,350 | 1,301 | 3,532 | 3,663 |
| Increase (-) / Decrease (+) of project and development properties | 876 | 263 | 309 | 1,184 |
| Increase (-) / Decrease (+) of inventories | 259 | 248 | 38 | 114 |
| Increase (-) / Decrease (+) of current receivables / current liabilities | 292 | 483 | 45 | 538 |
| Cash flow from changes in working capital | 1,427 | 994 | 392 | 1,836 |
| Cash flow from current operations | 2,777 | 2,295 | 3,924 | 5,499 |
| Sale of subsidiaries/businesses, net effect on liquid funds | 268 | – | 279 | 28 |
| Acquisition of fixed assets | -233 | -174 | -1,032 | -932 |
| Sale of fixed assets | 203 | 925 | 1,724 | 2,149 |
| Cash flow from investment operations | 238 | 751 | 971 | 1,245 |
| Cash flow before financing | 3,015 | 3,046 | 4,895 | 6,744 |
| Repurchase of own shares | -255 | – | -415 | – |
| Shareholder contribution non-controlling interests | – | – | – | 2 |
| Increase (+) / Decrease (-) of interest-bearing liabilities | -739 | -1,400 | -1,513 | -1,862 |
| Increase (+) / Decrease (-) of interest-bearing liabilities, project financing | -358 | -1,018 | -511 | -4,227 |
| Dividend distributed to shareholders in parent company | -357 | – | -788 | -431 |
| Dividend distributed to non-controlling interests | -1 | – | -4 | – |
| Cash flow from financing operations | -1,710 | -2,418 | -3,231 | -6,518 |
| Cash flow for the period | 1,305 | 628 | 1,664 | 226 |
| Cash at the beginning of the period | 1,836 | 844 | 1,478 | 1,243 |
| Exchange rate differences in cash | 4 | 6 | 3 | 9 |
| Cash at the end of the period | 3,145 | 1,478 | 3,145 | 1,478 |
{30}------------------------------------------------
Parent company
The parent company Peab AB's net sales for 2025 amounted to SEK 1,047 million (910) and mainly consisted of internal Group services. Profit for the year amounted to SEK 1,796 million (1,948). The year's results included dividends from subsidiaries of SEK 700 million (990).
The parent company's assets mainly consist of participations in Group companies amounting to SEK 10,350 million (10,339). The assets have been financed from equity of SEK 14,001 million (13,352). During the year, dividends of SEK 788 million (431) were paid to shareholders. During the year, the parent company reported share-based payments of SEK 56 million (26) in equity and repurchases of own shares of SEK 415 million (–).
As of February 1, 2024 Peab's Swedish support functions are run in Peab AB. The change has been implemented through a so-called business transition, which meant that all employees in Peab Support AB (Shared Service Centre) and Peab Utveckling AB were offered a transfer of employment to Peab AB.
The parent company is indirectly affected by the risks described in the section Risks and uncertainty factors.
Summary income statement for the parent company
| MSEK | Oct-Dec 2025 |
Oct-Dec 2024 |
Jan-Dec 2025 |
Jan-Dec 2024 |
|---|---|---|---|---|
| Net sales | 273 | 244 | 1,047 | 910 |
| Administrative expenses | -383 | -364 | -1,327 | -1,166 |
| Other operating income | 0 | -1 | 0 | 0 |
| Operating profit | -110 | -121 | -280 | -256 |
| Result from financial investments | ||||
| Profit from participation in Group companies | – | -168 | 700 | 822 |
| Other financial items | 24 | 44 | 141 | 181 |
| Result after financial items | -86 | -245 | 561 | 747 |
| Appropriations | 1,496 | 1,452 | 1,496 | 1,452 |
| Pre-tax profit | 1,410 | 1,207 | 2,057 | 2,199 |
| Tax | -272 | -249 | -261 | -251 |
| 1) Profit for the period |
1,138 | 958 | 1,796 | 1,948 |
Profit/loss for the period corresponds to comprehensive profit/loss for the period and therefore only one income statement is presented and no separate one for comprehensive profit/loss
{31}------------------------------------------------
Balance sheet for the parent company in summary
| MSEK | Dec 31 2025 |
Dec 31 2024 |
|---|---|---|
| Assets | ||
| Fixed assets | ||
| Intangible assets | 231 | 300 |
| Tangible assets | 49 | 48 |
| Financial assets | ||
| Participation in Group companies | 10,350 | 10,339 |
| Receivables from Group companies | 69 | 23 |
| Deferred tax recoverables | 116 | 106 |
| Total financial assets | 10,535 | 10,468 |
| Total fixed assets | 10,815 | 10,816 |
| Current assets | ||
| Current receivables | ||
| Receivables from Group companies | 6,189 | 5,734 |
| Other receivables | 89 | 61 |
| Total current receivables | 6,278 | 5,795 |
| Cash and bank | 0 | 0 |
| Total current assets | 6,278 | 5,795 |
| Total assets | 17,093 | 16,611 |
| Equity and liabilities | ||
| Equity | ||
| Restricted equity | 1,884 | 1,884 |
| Non-restricted equity | 12,117 | 11,468 |
| Total equity | 14,001 | 13,352 |
| Untaxed reserves | 2,314 | 2,798 |
| Provisions | ||
| Other provisions | 51 | 44 |
| Total provisions | 51 | 44 |
| Current liabilities | ||
| Liabilities to Group companies | 474 | 112 |
| Current tax liabilities | 23 | 89 |
| Other liabilities | 230 | 216 |
| Total current liabilities | 727 | 417 |
| Total liabilities | 727 | 417 |
| Total equity and liabilities | 17,093 | 16,611 |
{32}------------------------------------------------
Note 1 – Accounting principles
The quarterly report has been prepared according to the IFRS standards that have been adopted by EU as well as the interpretations of the valid standards adopted by EU, IFRICs. This report for the Group has been prepared according to IAS 34, Interim financial reporting as well as applicable regulations in the Annual Accounts Act. The parent company quarterly report has been prepared according to chapter 9 in the Annual Accounts Act, Quarterly reports and RFR 2, Accounting rules for legal entities. The Group and parent company have applied the same accounting principles and conditions as in the latest Annual and Sustainability Report.
In addition to the financial reports and their accompanying notes further information according to IAS 34.16A can be found in other sections of the quarterly report.
Differences in segment reporting and reporting according to IFRS
The Group is reported in the four business areas Construction, Civil Engineering, Industry and Project Development. The business areas are also operating segments. Segment reporting is the model Peab believes best describes Peab's business regarding both internal steering and risk profile, and it is also how the Board and executive management monitor operations.
For Peab's construction contract businesses, Construction and Civil Engineering, revenue and profit are recognized over time in both segment reporting and reporting according to IFRS. For business area Industry revenue and profit are recognized both over time and at a certain point in time, and reporting is the same in both segment reporting and reporting according to IFRS. For business area Project Development in segment reporting within the unit Housing Development revenue and expenses are recognized over time as the projects are successively completed. This applies to Swedish tenant-owner associations and own single homes, Norwegian condominiums and share housing and Finnish residential limited companies. In reporting according to IFRS, housing projects are recognized when the final homebuyers take possession of their apartments. In business area Project Development and the unit Property Development revenue and profit are recognized at a certain point in time in both segment reporting and reporting according to IFRS.
Group functions are reported in addition to the business areas and consist of central companies, certain subsidiaries and other holdings. Central companies consist primarily of the parent company Peab AB and Peab Finans AB. There is no difference in segment reporting and reporting according to IFRS regarding Group functions.
In segment reporting leasing fees for the lessee are recognized linearly over the leasing period for leasing contracts that by the counterparty (lessor) are classified as operational leasing contracts. IFRS 16 Leases is applied in the consolidated accounts according to IFRS which entails that the lessee recognizes depreciation and interest attributable to leasing assets respectively leasing liabilities. Leasing contracts that by the counterparty (lessor) are classified as financial leasing contracts are recognized in Peab's segment accounting according to the principles that correspond with those for the lessee according to IFRS 16.
Reporting on internal projects between business areas Construction and Project Development
Business area Construction recognizes revenue and profit referring to the construction contract part of our own housing developments, rental project developments and other property development projects for business area Project Development. Recognition takes place over time as the projects are completed. Business area Project Development recognizes revenue for both the construction contract and developer part of our own housing development projects. Recognized profit consists of the profit in the developer part over time. Internal net sales between business area Construction and business area Project Development regarding the construction cost of our own housing development projects are eliminated in consolidated reporting. Internal profit is returned when the project is divested.
Reporting on property projects on our own balance sheet
The underlying sales value of property projects on our own balance sheet, recognized as project and development property, that are sold in the form of a company via shares, is recognized as revenue and the book value on the balance sheet is recognized as an expense. When property projects recognized as operations property or investment property are divested the net effect on profit is recognized as other operating income or other operating cost. Recognition of property projects is the same in both segment reporting and reporting according to IFRS.
Financial key ratios in segment reporting
Financial key ratios such as capital employed, total assets, equity, equity/assets ratio, net debt, net debt/equity ratio, cashflow before financing and earnings per share are presented in segment reporting with consideration taken to the above prerequisites. Net debt in segment reporting includes project financing for the unsold portion of ongoing own housing development projects. This is because Peab has an obligation to acquire unsold homes six months after completion.
{33}------------------------------------------------
Note 2 – Revenue allocation
| Differences in | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Group Jan-Dec 2025 MSEK |
Construction | Civil Engineering |
Industry | Project Development |
Group functions |
Eliminations | Group Segment |
accounting 1) principles |
Group IFRS |
| Allocation per external/internal |
|||||||||
| External sales | 21,443 | 16,331 | 16,434 | 4,327 | 54 | 58,589 | -8 | 58,581 | |
| Internal sales | 2,240 | 1,276 | 3,603 | 18 | 1,374 | -8,511 | – | – | |
| Total | 23,683 | 17,607 | 20,037 | 4,345 | 1,428 | -8,511 | 58,589 | -8 | 58,581 |
| Allocation per country | |||||||||
| Sweden | 18,165 | 15,622 | 12,029 | 3,692 | 1,133 | -7,695 | 42,946 | -96 | 42,850 |
| Norway | 2,780 | 1,985 | 1,215 | 364 | 142 | -383 | 6,103 | 129 | 6,232 |
| Finland | 2,738 | 5,300 | 289 | 147 | -426 | 8,048 | -41 | 8,007 | |
| Denmark | 1,467 | 6 | -7 | 1,466 | 1,466 | ||||
| Other | 26 | 26 | 26 | ||||||
| Total | 23,683 | 17,607 | 20,037 | 4,345 | 1,428 | -8,511 | 58,589 | -8 | 58,581 |
| Allocation per type of customer |
|||||||||
| Public sector | 13,051 | 12,967 | 6,294 | 53 | 43 | 32,408 | 32,408 | ||
| Private customers | 8,392 | 3,364 | 10,140 | 4,274 | 11 | 26,181 | -8 | 26,173 | |
| Internal customers | 2,240 | 1,276 | 3,603 | 18 | 1,374 | -8,511 | – | – | |
| Total | 23,683 | 17,607 | 20,037 | 4,345 | 1,428 | -8,511 | 58,589 | -8 | 58,581 |
| Allocation per point in time |
|||||||||
| At one point in time | 78 | 10 | 6,115 | 1,519 | 55 | -1,085 | 6,692 | 2,530 | 9,222 |
| Over time | 23,589 | 17,580 | 11,930 | 2,655 | 1,145 | -5,940 | 50,959 | -2,538 | 48,421 |
| 2) Rent revenue |
16 | 17 | 1,992 | 171 | 228 | -1,486 | 938 | 938 | |
| Total | 23,683 | 17,607 | 20,037 | 4,345 | 1,428 | -8,511 | 58,589 | -8 | 58,581 |
| Allocation per type of revenue |
|||||||||
| Construction contracts | 23,589 | 17,580 | 11,930 | 2,655 | 23 | -4,818 | 50,959 | -2,538 | 48,421 |
| Sales of goods | 4,982 | -569 | 4,413 | 4,413 | |||||
| Sales of property projects |
1,480 | 1,480 | 2,530 | 4,010 | |||||
| Transportation services | 1,011 | -478 | 533 | 533 | |||||
| Administrative services | 1,122 | -1,122 | – | – | |||||
| 2) Rent revenue |
16 | 17 | 1,992 | 171 | 228 | -1,486 | 938 | 938 | |
| Other | 78 | 10 | 122 | 39 | 55 | -38 | 266 | 266 | |
| Total | 23,683 | 17,607 | 20,037 | 4,345 | 1,428 | -8,511 | 58,589 | -8 | 58,581 |
Refers to differences in accounting principles regarding our own housing development projects. In segment reporting revenue is recognized over time while in reporting according to IFRS it is at the time of possession.
Rent revenue is recognized according to IFRS 16. 2)
{34}------------------------------------------------
| Group Jan-Dec 2024 | Civil | Project | Group | Group | Differences in accounting 1) |
||||
|---|---|---|---|---|---|---|---|---|---|
| MSEK | Construction | Engineering | Industry | Development | functions | Eliminations | Segment | principles | Group IFRS |
| Allocation per external/internal |
|||||||||
| External sales | 21,290 | 15,384 | 17,725 | 4,243 | 55 | 58,697 | 2,586 | 61,283 | |
| Internal sales | 2,527 | 1,155 | 3,823 | 27 | 1,295 | -8,827 | – | – | |
| Total | 23,817 | 16,539 | 21,548 | 4,270 | 1,350 | -8,827 | 58,697 | 2,586 | 61,283 |
| Allocation per country | |||||||||
| Sweden | 18,405 | 14,510 | 12,299 | 3,363 | 1,075 | -7,975 | 41,677 | 2,166 | 43,843 |
| Norway | 2,872 | 2,028 | 1,549 | 372 | 131 | -535 | 6,417 | 403 | 6,820 |
| Finland | 2,540 | 1 | 6,248 | 535 | 143 | -314 | 9,153 | 17 | 9,170 |
| Denmark | 1,440 | 1 | -3 | 1,438 | 1,438 | ||||
| Other | 12 | 12 | 12 | ||||||
| Total | 23,817 | 16,539 | 21,548 | 4,270 | 1,350 | -8,827 | 58,697 | 2,586 | 61,283 |
| Allocation per type of customer |
|||||||||
| Public sector | 12,884 | 12,222 | 7,045 | 382 | 45 | 32,578 | 32,578 | ||
| Private customers | 8,406 | 3,162 | 10,680 | 3,861 | 10 | 26,119 | 2,586 | 28,705 | |
| Internal customers | 2,527 | 1,155 | 3,823 | 27 | 1,295 | -8,827 | – | – | |
| Total | 23,817 | 16,539 | 21,548 | 4,270 | 1,350 | -8,827 | 58,697 | 2,586 | 61,283 |
| Allocation per point in time |
|||||||||
| At one point in time | 66 | 26 | 6,227 | 1,599 | 58 | -1,141 | 6,835 | 5,127 | 11,962 |
| Over time | 23,738 | 16,499 | 13,288 | 2,561 | 1,065 | -6,124 | 51,027 | -2,541 | 48,486 |
| 2) Rent revenue |
13 | 14 | 2,033 | 110 | 227 | -1,562 | 835 | 835 | |
| Total | 23,817 | 16,539 | 21,548 | 4,270 | 1,350 | -8,827 | 58,697 | 2,586 | 61,283 |
| Allocation per type of revenue |
|||||||||
| Construction contracts | 23,738 | 16,499 | 13,288 | 2,561 | 38 | -5,097 | 51,027 | -2,541 | 48,486 |
| Sales of goods | 4,890 | -817 | 4,073 | 4,073 | |||||
| Sales of property projects |
1,573 | 1,573 | 5,127 | 6,700 | |||||
| Transportation services | 1,218 | -290 | 928 | 928 | |||||
| Administrative services | 1,027 | -1,027 | – | – | |||||
| 2) Rent revenue |
13 | 14 | 2,033 | 110 | 227 | -1,562 | 835 | 835 | |
| Other | 66 | 26 | 119 | 26 | 58 | -34 | 261 | 261 | |
| Total | 23,817 | 16,539 | 21,548 | 4,270 | 1,350 | -8,827 | 58,697 | 2,586 | 61,283 |
Refers to differences in accounting principles regarding our own housing development projects. In segment reporting revenue is recognized over time while in reporting according to IFRS it is at the time of possession. 1)
Rent revenue is recognized according to IFRS 16. 2)
{35}------------------------------------------------
Note 3 – Operating segment and reconciliation between segment reporting and reporting according to IFRS
| Differences in | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Group Jan-Dec 2025 | Construction | Civil | to decident | Project | Group functions |
Eliminations | Group | accounting | Group |
| MSEK | Construction | Engineering | Industry | Development | Tunctions | Eliminations | Segment | principles 1) | IFRS |
| External sales | 21,443 | 16,331 | 16,434 | 4,327 | 54 | 58,589 | -8 | 58,581 | |
| Internal sales | 2,240 | 1,276 | 3,603 | 18 | 1,374 | -8,511 | - | - | |
| Total revenue | 23,683 | 17,607 | 20,037 | 4,345 | 1,428 | -8,511 | 58,589 | -8 | 58,581 |
| Operating profit | 512 | 704 | 1,485 | 238 | -363 | 50 | 2,626 | 67 | 2,693 |
| Operating margin, % | 2.2 | 4.0 | 7.4 | 5.5 | 4.5 | 4.6 | |||
| Financial income | 146 | 146 | |||||||
| Financial expenses | -1,098 | -46 2) | -1,144 | ||||||
| Net finance | -952 | -46 | -998 | ||||||
| Pre-tax profit | 1,674 | 21 | 1,695 | ||||||
| Tax | -332 | -332 | |||||||
| Profit for the period | 1,342 | 21 | 1,363 | ||||||
| Capital employed (closing balance) | -1,830 | -568 | 9,198 | 18,220 | 1,764 3) | 26,784 | 1,332 | 28,116 | |
| Total assets | 42,472 | 2,071 4) | 44,543 | ||||||
| Equity | 16,716 | -237 | 16,479 | ||||||
| Equity/assets ratio, % | 39.4 | 37.0 | |||||||
| Net debt | 6,400 | 1,569 | 7,969 | ||||||
| Cashflow before financing | 1,576 5) | 900 5) | 1,951 5) | 552 5) | -860 6) | 4,119 | 776 | 4,895 |
1) For more information about the allocation of revenue and profit items see note 2 and the section Overview business areas.
6) Unallocated cash flow.
| Group Jan-Dec 2024 MSEK |
Construction | Civil Engineering |
Industry | Project Development |
Group functions |
Eliminations | Group Segment |
Differences in accounting principles 1) | Group IFRS |
|---|---|---|---|---|---|---|---|---|---|
| External sales | 21,290 | 15,384 | 17,725 | 4,243 | 55 | 58,697 | 2,586 | 61,283 | |
| Internal sales | 2,527 | 1,155 | 3,823 | 27 | 1,295 | -8,827 | - | - | |
| Total revenue | 23,817 | 16,539 | 21,548 | 4,270 | 1,350 | -8,827 | 58,697 | 2,586 | 61,283 |
| Operating profit | 416 | 499 | 1,415 | 728 | -341 | 46 | 2,763 | 400 | 3,163 |
| Operating margin, % | 1.7 | 3.0 | 6.6 | 17.0 | 4.7 | 5.2 | |||
| Financial income | 259 | 259 | |||||||
| Financial expenses | -597 | -45 2) | -642 | ||||||
| Net finance | -338 | -45 | -383 | ||||||
| Pre-tax profit | 2,425 | 355 | 2,780 | ||||||
| Tax | -345 | -47 | -392 | ||||||
| Profit for the year | 2,080 | 308 | 2,388 | ||||||
| Capital employed (CB) | -215 | -370 | 9,920 | 19,767 | -103 3) | 28,999 | 1,879 | 30,878 | |
| Total assets | 45,226 | 2,542 4) | 47,768 | ||||||
| Equity | 16,760 | -256 | 16,504 | ||||||
| Equity/assets ratio, % | 37.1 | 34.6 | |||||||
| Net debt | 9,118 | 2,135 | 11,253 | ||||||
| Cashflow before financing | -3 5) | 697 5) | 2,324 5) | 423 5) | -840 6) | 2,601 | 4,143 | 6,744 |
$^{1)}$ For more information about the allocation of revenue and profit items see note 2 and the section Overview business areas.
<sup>2) Refers to IFRS 16, additional leases SEK -46 million.
3) Unallocated capital employed.
<sup>4) Divided between IFRS 16, additional leases SEK 1,285 million and housing projects SEK 786 million.
$^{5)} \, \text{Refers to operating cash flow. For definition, see section Alternative performance measures and definitions.}$
<sup>2) Refers to IFRS 16, additional leases SEK -45 million.
<sup>3) Unallocated capital employed.
<sup>4) Divided between IFRS 16, additional leases SEK 1,411 million and housing projects SEK 1,131 million.
$^{5)} \, \text{Refers to operating cash flow. For definition, see section Alternative performance measures and definitions.}$
<sup>6) Unallocated cash flow.
{36}------------------------------------------------
Note 4 – Financial assets and liabilities valued at fair value
The table below shows the allocated level for financial assets and financial liabilities recognized at fair value in the Group's balance sheet. Measurement of fair value is based on a three level hierarchy;
- Level 1: prices that reflect quoted prices on an active market for identical assets.
- Level 2: based on direct or indirect inputs observable to the market not included in level 1.
- Level 3: based on inputs unobservable to the market.
For a description of how fair value has been calculated see the Annual and Sustainability Report 2024, note 32. The fair value of financial assets and liabilities recognized as their amortized cost is estimated to be, in principle, the same as their recognized values.
| Group | Dec 31, 2025 | Dec 31, 2024 | |||||
|---|---|---|---|---|---|---|---|
| MSEK | Level 2 | Level 3 | Total | Level 2 | Level 3 | Total | |
| Financial assets | |||||||
| Securities held as fixed assets | 45 | 45 | 45 | 45 | |||
| Of which unlisted funds | – | 4 | 4 | ||||
| Of which unlisted shares and participations | 45 | 45 | 41 | 41 | |||
| Other current receivables | 7 | 7 | 10 | 10 | |||
| Of which commodity hedging with futures | 7 | 7 | 9 | 9 | |||
| Of which currency derivatives | – | 1 | 1 | ||||
| Total financial assets | 7 | 45 | 52 | 10 | 45 | 55 | |
| Financial liabilities | |||||||
| Other long-term liabilities | 1 | 1 | – | ||||
| Of which commodity hedging with futures | 1 | 1 | – | ||||
| Other current liabilities | 17 | 17 | 1 | 1 | |||
| Of which currency derivatives | 3 | 3 | – | ||||
| Of which commodity hedging with futures | 14 | 14 | 1 | 1 | |||
| Total financial liabilities | 18 | – | 18 | 1 | – | 1 |
The tables below are a reconciliation between the opening and closing balance for assets and liabilities included in level 3.
| Group | Securities held as fixed asset | |||||||
|---|---|---|---|---|---|---|---|---|
| Unlisted funds | ||||||||
| MSEK | Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2025 | Dec 31, 2024 | ||||
| Opening balance | 4 5 |
41 | 41 | |||||
| Investments | 1 | |||||||
| Dividends received | -3 -1 |
|||||||
| Reported in profit/loss period | ||||||||
| Net finance | -2 | 4 | ||||||
| Closing balance | 0 4 |
45 | 41 |
| Group | Contingent consideration | |||
|---|---|---|---|---|
| MSEK | Dec 31, 2025 | Dec 31, 2024 | ||
| Opening balance | – | 6 | ||
| Payments during the period | -6 | |||
| Closing balance | – | – |
{37}------------------------------------------------
Future financial information
• Annual and Sustainability Report 2025
Interim report January – March 2026 and Annual General Meeting
• Interim report January – June 2026
• Interim report January - September 2026
• Year-end report January - December 2026
April, 2026
April 29, 2026
July 14, 2026
October 28, 2026
February 3, 2027
Förslöv, February 4, 2026
Jesper Göransson CEO and President
The information in this interim report has not been reviewed separately by the company's auditors.
Presentation of the interim report
This interim report will be presented digitally and on a phone conference Wednesday February 4, 2026 at 09.00 a.m. by the President and CEO Jesper Göransson and CFO Niclas Winkvist. The presentation will be held in Swedish and is available via https://www.peab.com/financial-info/.
Click on one of the links to participate in the presentation.
Participate in the web broadcast:
https://peab.events.inderes.com/q4-report-2025
Participate via telephone conference:
https://conference.inderes.com/teleconference/?id=5002163
For further information, please contact:
Jesper Göransson, President and CEO of Peab, is reached through Juha Hartomaa, Head of Investor Relations Peab, $\pm 46725333145$
This information is information that Peab AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on February 4, 2026, at 08:00 a.m. CET.
{38}------------------------------------------------
Quarterly data
Group, IFRS
| MSEK | Oct-Dec 2025 |
Jul-Sep 2025 |
Apr-Jun 2025 |
Jan-Mar 2025 |
Oct-Dec 2024 |
Jul-Sep 2024 |
Apr-Jun 2024 |
Jan-Mar 2024 |
|---|---|---|---|---|---|---|---|---|
| Net sales | 17,335 | 15,358 | 15,063 | 10,825 | 17,185 | 15,720 | 16,928 | 11,450 |
| Production costs | -15,622 | -13,647 | -13,369 | -10,415 | -14,939 | -14,174 | -15,281 | -11,008 |
| Gross profit | 1,713 | 1,711 | 1,694 | 410 | 2,246 | 1,546 | 1,647 | 442 |
| Sales and administrative expenses | -801 | -668 | -985 | -783 | -932 | -613 | -885 | -759 |
| Other operating income | 151 | 83 | 88 | 114 | 47 | 46 | 60 | 329 |
| Other operating costs | 4 | -8 | -7 | -23 | 8 | 13 | -8 | -24 |
| Operating profit | 1,067 | 1,118 | 790 | -282 | 1,369 | 992 | 814 | -12 |
| Financial income | 33 | 20 | 39 | 54 | 66 | 66 | 59 | 68 |
| Financial expenses | -106 | -112 | -753 | -173 | -150 | -170 | -167 | -155 |
| Net finance | -73 | -92 | -714 | -119 | -84 | -104 | -108 | -87 |
| Pre-tax profit | 994 | 1,026 | 76 | -401 | 1,285 | 888 | 706 | -99 |
| Tax | -165 | -197 | -4 | 34 | -171 | -154 | -110 | 43 |
| Profit for the period | 829 | 829 | 72 | -367 | 1,114 | 734 | 596 | -56 |
| Profit for the period, attributable to: | ||||||||
| Shareholders in parent company | 829 | 829 | 72 | -373 | 1,121 | 732 | 596 | -57 |
| Non-controlling interests | 0 | 0 | 0 | 6 | -7 | 2 | 0 | 1 |
| Profit for the period | 829 | 829 | 72 | -367 | 1,114 | 734 | 596 | -56 |
| Key ratios, IFRS | ||||||||
| Earnings per share before and after dilution, SEK | 2.90 | 2.89 | 0.25 | -1.30 | 3.90 | 2.54 | 2.08 | -0.20 |
| Average number of outstanding shares, million | 284.1 | 286.6 | 287.5 | 287.5 | 287.5 | 287.5 | 287.5 | 287.5 |
| Capital employed (CB) | 28,116 | 28,619 | 28,644 | 29,646 | 30,878 | 30,526 | 31,962 | 33,016 |
| Equity (CB) | 16,479 | 15,993 | 15,316 | 16,001 | 16,504 | 15,316 | 14,666 | 14,481 |
{39}------------------------------------------------
| Business areas MSEK |
Oct-Dec 2025 |
Jul-Sep 2025 |
Apr-Jun 2025 |
Jan-Mar 2025 |
Oct-Dec 2024 |
Jul-Sep 2024 |
Apr-Jun 2024 |
Jan-Mar 2024 |
|---|---|---|---|---|---|---|---|---|
| Net sales | ||||||||
| Construction | 7,169 | 5,238 | 5,959 | 5,317 | 6,541 | 5,130 | 6,358 | 5,788 |
| Civil Engineering | 5,258 | 4,248 | 4,433 | 3,668 | 4,893 | 3,810 | 4,278 | 3,558 |
| Industry | 5,123 | 6,953 | 5,678 | 2,283 | 5,576 | 7,528 | 6,033 | 2,411 |
| – of which Swerock/Asphalt | 4,192 | 6,194 | 4,880 | 1,504 | 4,611 | 6,734 | 5,137 | 1,492 |
| – of which Construction system | 1,063 | 855 | 900 | 854 | 1,050 | 865 | 976 | 984 |
| – of which eliminations | -132 | -96 | -102 | -75 | -85 | -71 | -80 | -65 |
| Project Development | 1,711 | 892 | 751 | 991 | 1,737 | 758 | 720 | 1,055 |
| – of which Property Development | 25 | 48 | 36 | 57 | 636 | 6 | 21 | 23 |
| – of which Housing Development | 1,686 | 844 | 715 | 934 | 1,101 | 752 | 699 | 1,032 |
| Group functions | 371 | 349 | 362 | 346 | 343 | 333 | 345 | 329 |
| Eliminations | -2,507 | -2,078 | -2,246 | -1,680 | -2,305 | -2,020 | -2,502 | -2,000 |
| Group, segment reporting | 17,125 | 15,602 | 14,937 | 10,925 | 16,785 | 15,539 | 15,232 | 11,141 |
| Adjustment of housing to IFRS | 210 | -244 | 126 | -100 | 400 | 181 | 1,696 | 309 |
| IFRS 16, additional leases | ||||||||
| Group, IFRS | 17,335 | 15,358 | 15,063 | 10,825 | 17,185 | 15,720 | 16,928 | 11,450 |
| Operating profit | ||||||||
| Construction | 148 | 116 | 137 | 111 | 96 | 96 | 123 | 101 |
| Civil Engineering | 217 | 169 | 204 | 114 | 140 | 117 | 165 | 77 |
| Industry | 615 | 875 | 544 | -549 | 597 | 848 | 449 | -479 |
| – of which Swerock/Asphalt | 590 | 875 | 533 | -558 | 461 | 892 | 461 | -576 |
| – of which Construction system | 25 | 0 | 11 | 9 | 136 | -44 | -12 | 97 |
| Project Development | 120 | 36 | -1 | 83 | 521 | -6 | -33 | 246 |
| – of which Property Development | 84 | 84 | 11 | 49 | 533 | 8 | 21 | 261 |
| – of which Housing Development | 36 | -48 | -12 | 34 | -12 | -14 | -54 | -15 |
| Group functions | -124 | -62 | -121 | -56 | -142 | -62 | -79 | -58 |
| Eliminations | 20 | 14 | -3 | 19 | 43 | 2 | -6 | 7 |
| Group, segment reporting | 996 | 1,148 | 760 | -278 | 1,255 | 995 | 619 | -106 |
| Adjustment of housing to IFRS | 61 | -41 | 20 | -16 | 103 | -14 | 190 | 85 |
| IFRS 16, additional leases | 10 | 11 | 10 | 12 | 11 | 11 | 5 | 9 |
| Group, IFRS | 1,067 | 1,118 | 790 | -282 | 1,369 | 992 | 814 | -12 |
| Operating margin, % | ||||||||
| Construction | 2.1 | 2.2 | 2.3 | 2.1 | 1.5 | 1.9 | 1.9 | 1.7 |
| Civil Engineering | 4.1 | 4.0 | 4.6 | 3.1 | 2.9 | 3.1 | 3.9 | 2.2 |
| Industry | 12.0 | 12.6 | 9.6 | -24.0 | 10.7 | 11.3 | 7.4 | -19.9 |
| – of which Swerock/Asphalt | 14.1 | 14.1 | 10.9 | -37.1 | 10.0 | 13.2 | 9.0 | -38.6 |
| – of which Construction system | 2.4 | 0.0 | 1.2 | 1.1 | 13.0 | -5.1 | -1.2 | 9.9 |
| Project Development | 7.0 | 4.0 | -0.1 | 8.4 | 30.0 | -0.8 | -4.6 | 23.3 |
| – of which Property Development | 336.0 | 175.0 | 30.6 | 86.0 | 83.8 | 133.3 | 100.0 | 1,134.8 |
| – of which Housing Development | 2.1 | -5.7 | -1.7 | 3.6 | -1.1 | -1.9 | -7.7 | -1.5 |
| Group functions | ||||||||
| Eliminations | ||||||||
| Group, segment reporting | 5.8 | 7.4 | 5.1 | -2.5 | 7.5 | 6.4 | 4.1 | -1.0 |
| Adjustment of housing to IFRS | ||||||||
| IFRS 16, additional leases | ||||||||
| Group, IFRS | 6.2 | 7.3 | 5.2 | -2.6 | 8.0 | 6.3 | 4.8 | -0.1 |
| Key ratios, segment reporting, MSEK | ||||||||
| Earnings per share before and after dilution, SEK | 2.69 | 3.01 | 0.20 | -1.24 | 3.63 | 2.59 | 1.48 | -0.45 |
| Capital employed (CB) | 26,784 | 26,689 | 27,104 | 27,673 | 28,999 | 27,537 | 28,719 | 27,721 |
| Equity (CB) | 16,716 | 16,296 | 15,572 | 16,285 | 16,760 | 15,650 | 14,992 | 14,976 |
| Orders received | 14,947 | 10,223 | 13,183 | 16,574 | 12,052 | 10,135 | 16,434 | 17,889 |
| Order backlog at the end of the period | 48,544 | 48,279 | 51,757 | 51,955 | 44,906 | 47,026 | 50,578 | 47,808 |
{40}------------------------------------------------
Alternative performance measures and definitions
Alternative performance measures are used to describe the development of operations and to enhance comparability between periods. These are not defined under IFRS but correspond to the methods applied by executive management and Board of Directors to measure the company's financial performance. Alternative performance measures should not be viewed as a substitute for financial information presented in accordance with IFRS but rather as a complement.
The difference between segment reporting and reporting according to IFRS is described in more detail in note 1. The difference primarily consists of differences in accounting principles for our own housing development projects where revenue and profit are recognized over time in segment reporting and at one point in
time, when homebuyers take over their homes, in reporting according to IFRS. In segment reporting leasing fees for the lessee are recognized linearly over the leasing period for leases that are classified by the counterparty (the lessor) as operational leases. IFRS 16 Leases is applied in Group reporting according to IFRS, which entails that lessees recognize depreciation and interest attributable to leasing assets and liabilities. As a result the difference between segment reporting and reporting according to IFRS even affects the items on the balance sheet, including net debt. Nonetheless, in the key ratios below the method of calculation is the same for both segment reporting and reporting according to IFRS. For more information and calculations, see Peab's website
www.peab.com/alternative-keyratios.
Financial definitions
Available liquidity
Liquid funds and short-term investments along with unutilized credit facilities, excluding unutilized credit facilities for project financing. Shows the Group's available liquidity.
Capital employed for the business areas
Total assets in the business area at the end of the period reduced by deferred tax recoverables and internal receivables from the internal bank Peab Finans with deductions for non-interest-bearing liabilities and deferred tax liabilities. The measurement is used to measure capital utilization and its effectiveness for the business areas, and is only presented as a net amount per business area.
Capital employed for the Group
Total assets at the end of the period less non-interest-bearing operating liabilities and provisions. The measurement is used to measure capital utilization and its effectiveness.
Earnings per share, before and after dilution
Profit for the period attributable to shareholders in parent company divided by the average number of outstanding shares during the period. Shows earnings per share.
Equity/assets ratio
Equity as a percentage of total assets at the end of the period. Shows financial position.
Equity per share
Equity attributable to shareholders in parent company divided by the number of outstanding shares at the end of the period. Shows equity per share.
Net debt
Interest-bearing liabilities including provisions for pensions less liquid funds and interest-bearing assets. Shows financial position.
Net debt, segment reporting
Interest-bearing liabilities including provisions for pensions less liquid funds and interest-bearing assets. As of January 1, 2019 liabilities concerning unsold part of ongoing own housing development projects is included in net debt. Shows financial position for segment.
Net debt/equity ratio
Interest-bearing net debt in relation to equity. Shows financial position.
Operating margin
Operating profit as a percentage of net sales. Shows profitability in the business.
Operative cash flow
Cash flow before financing according to segment reporting. The cash flow does not include received internal Group interest, paid interest and paid tax that is not allocated to the business areas but only reported for the Group. Investments via leasing charge cash flow from investment operations in the business areas. Operative cash flow is only calculated for the business areas. Shows the cash flow generated per business area.
Order backlog
The value at the end of the period of the remaining income in ongoing production plus orders received yet to be produced. Order backlog is based on segment reporting. Shows how much will be produced in the future.
Orders received
The sum of orders received during the period. Measures how new orders replace produced work. Regarding our own housing development projects, tenantowner associations and housing companies are considered external customers.
Return on capital employed
Pre-tax profit for the rolling 12 month period with the addition of financial expenses in percent of the average (last four quarters) capital employed. The measurement is used to measure capital efficiency and to allocate capital for new investments and shows the Group's earning capacity independent of financing.
Return on equity
Profit for the rolling 12 month period attributable to shareholders in the parent company divided by the average (last four quarters) equity attributable to shareholders in the parent company. The measurement is used to create efficient business and a rational capital structure and show how the Group has multiplied shareholders' equity.
Non-financial definitions
Average number of employees
The sum of the number of hours Peab has paid for, divided by the annual working time.
CSI
CSI stands for Customer Satisfaction Index and measures how satisfied Peab's customers are. CSI is a weighted measurement between 0 and 100 and is based on three questions: 1) Total satisfaction, 2) In relation to expectations 3) In relation to ideal supplier.
eNPS
eNPS stands for employee Net Promoter Score and measures employee engage ment. The score can vary between -100 and 100 and is based on the question to employees: "How probable is it that you would recommend your employer to a friend or acquaintance?"
LTI4 and LTIF4
LTI4 refers to the number of workplace accidents with more than four days absence for the employeer, excluding the day of injury, and LTIF4 refers to the frequency rate per one million hours worked according to the same definition. LTI stands for Lost Time Injury.
Project and development property
Holdings of undeveloped land and decontamination property for future development, property with buildings for project development, processing and thereafter divestiture within Peab's normal business cycle.
Risk observations
A risk observation means at a workplace noticing behavior, risks or shortcomings that could lead to an incident or accident.
Serious accidents
Peab uses the Swedish Work Environment Authority's definition of a serious accident as an accident where one or more persons are injured at a workplace or a place they have visited for work. Serious accidents can be injuries such as bone fractures, effusive bleeding or nerve, muscle or tendon damage, injuries to inner organs or second or third degree burns. Serious accidents that occur in our other Nordic countries are categorized by the same definition.
{41}------------------------------------------------
The Nordic Community Builder
Local and close to our customers
Peab works locally where our customers are and where people live their lives. Every day our employees contribute through four collaborating business areas to community building in Sweden, Norway, Finland and Denmark. Together we build homes, schools, retirement homes, hospitals, swimming pool facilities, museums, offices, airports and ports. We build and maintain roads, railroads, bridges, parks and much, much more.
Peab has contributed to locally produced community building for more than 60 years. Now the journey continues. Long-lastingly and responsibly we are forging ahead, and improving everyday life where it's lived.
Net sales, appr.
SEK 59 billion
Employees, appr.
12,000
Four
Business areas
Construction Civil Engineering Industry Project Development
Peab is the Nordic Community Builder with some 12,000 employees and net sales of approximately SEK 59 billion. The Group has strategically located offices in Sweden, Norway, Finland and Denmark. Group headquarters are in Förslöv on the Bjäre Peninsula in Skåne. The share is listed on Nasdaq Stockholm.
Contact
Peab AB (publ) Margretetorpsvägen 84 SE-269 73 Förslöv Phone +46 431-890 00
Photographers: Bert Leandersson, Kuvatoimisto Kuvio Oy, Mette Ottosson, Samuel Unéus, Semren Månsson, Tor O. Iversen and Yannick Lagher. Peab takes work environment matters very seriously and works systematically to create safe workplaces. The kind of safety equipment used varies depending on national regulations and the type of operations. A risk analysis is always performed for each workplace before any exception is made. The people pictured in this publication are wearing personal safety equipment required by regulations valid for the operations and country they are in.