Peab

Quarterly Report • May 6, 2025

Stable start of 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

• Net sales SEK 10.925 million (11.141)
• Operating profit SEK -278 million (-106)
• Operating margin -2.5 percent (-1.0)
• Pre-tax profit SEK -384 million (-182)

• Earnings per share before and after dilution SEK -1.24 (-0.45)

• Orders received SEK 16,574 million (17,889)

• Order backlog SEK 51,955 million (47,808)
• Cash flow before financing SEK -363 million (-218)
• Net debt SEK 8,266 million (9,139)
• Net debt/equity ratio 0.5 (0.6)

Group

	Jan-Mar	Jan-Mar	Apr-Mar	Jan-Dec
MSEK	2025	2024	2024/2025	2024
Segment reporting
Net sales	10,925	11,141	58,481	58,697
Operating profit	-278	-106	2,591	2,763
Operating margin, %	-2.5	-1.0	4.4	4.7
Pre-tax profit	-384	-182	2,223	2,425
Profit for the period	-351	-129	1,858	2,080
Earnings per share before and after dilution, SEK	-1.24	-0.45	6.46	7.25
Return on equity, $\%$ $^{1)}$	11.7	9.6	11.7	13.3
Return on capital employed, $\%$ 1)	10.0	8.9	10.0	10.7
Net debt	8,266	9,139	8,266	9,118
Net debt/equity ratio, multiple	0.5	0.6	0.5	0.5
Equity/assets ratio, %	38.1	34.1	38.1	37.1
Cash flow before financing	-363	-218	2,456	2,601
Average number of employees	11,573	12,033	12,755	12,899
Reporting according to IFRS
Net sales, IFRS	10,825	11,450	60,658	61,283
Operating profit, IFRS	-282	-12	2,893	3,163
Pre-tax profit, IFRS	-401	-99	2,478	2,780
Profit for the period, IFRS	-367	-56	2,077	2,388
Earnings per share before and after dilution IFRS, SEK	-1.30	-0.20	7.22	8.32
Net debt, IFRS	10,523	14,929	10,523	11,253
Equity/assets ratio, IFRS, %	35.4	29.6	35.4	34.6
Cash flow before financing, IFRS	-485	-19	6,278	6,744

¹⁾ Calculated on rolling 12 months

Net sales

Operating profit

Orders received

Comments from the CEO

The first quarter of the year was stable for Peab despite substantial uncertainty in the world around us. We can report a high level of orders received for the quarter and almost unchanged net sales. Operations in business area Civil Engineering developed well while a cautious market in new home production continued to affect business areas Construction and Project Development.

Group development

The beginning of 2025 was characterized by continued varied activity on Peab's different markets while, because of the winter weather, there is seasonally less activity in the first quarter. This is particularly true for business area Industry which is marked by considerable deficits since the paving season does not begin until the second quarter. Group net sales contracted marginally during the quarter and amounted to SEK 10,925 million (11,141) and operating profit was SEK -278 million (-106). Capital gains of SEK 220 million resulting from the sales of Peab's shares in the joint venture Tornet Bostadsproduktion were included in the first quarter last year. Net debt amounted to SEK 8.3 billion (9.1) and the net debt/equity ratio was 0.5 (0.6). During the quarter net debt has been affected by a dividend of SEK 1,100 million received from Fastighets AB Centur which was offset against an interest-bearing liability that was generated in connection with the acquisition of property from Fastighets AB Centur during the fourth quarter 2024.

The level of orders received continued to be high during the quarter and amounted to SEK 16.6 billion (17.9). The level of orders received rose in business areas Construction, Industry and Project Development while it fell in business area Civil Engineering which had a very high level in the comparable period. Business area Construction continued to have a high portion of projects from the public sector with a great deal of variation and geographical spread. The level of orders in business area Industry was good in paving. In Project Development we production-started more tenant-owner/condominium projects than in the corresponding quarter last year. The high level of orders received means our order backlog at the end of the quarter amounted to nearly SEK 52 billion.

So-called phase 1 contracts which are preliminary agreements in business areas Construction and Civil Engineering that can lead to construction contracts have generated a potential value of final construction contracts of around SEK 16 billion over the next two years (SEK 13 billion per December 31, 2024). Most of the new contracts from the quarter are in business area Construction.

Business area development

Net sales contracted in business area Construction due to lower activity in new production of homes which other kinds of projects have not been able to fully compensate for. At the same time the operating margin improved in the first quarter to 2.1 percent (1.7). Activity continued to be high in business area Civil Engineering and the operating margin improved to 3.1 percent (2.2). In total, the operating margin for the construction contract businesses was 2.5 percent (1.9).

Net sales and profit contracted in business area Industry due to less activity in product areas construction system and rentals that are also affected by the weak housing market. For paving, where the first quarter entails preparing for the coming season, operating profit was on par with the first quarter 2024. Some of the Norwegian paving and mineral aggregates operations are undergoing review due to a period of low earnings.

Net sales in business area Project Development decreased, attributable to Housing Development. Operating profit amounted to SEK 83 million (246) where capital gains from the sales of property and shares in joint ventures in Property Development contributed by SEK 47 million. The level of sales in our own developed homes continued to be low but we have sold them at an even pace. Production started on a total of 523 (137) own developed homes during the quarter. Of these, 336 (137) were tenant-owner apartments/condominiums, of which 40 were converted from homes on our own balance sheet. Two of the housing projects are located in Stockholm, one on Kvarnholmen in Nacka and one in Råsunda in Solna. This demonstrates that it is possible to start tenant-owner housing projects in unique locations. The trend that sales opportunities increase as the project approaches completion continues and for this reason we are further developing the strategy of starting projects on our own balance sheet to then convert them into tenant-owner apartments.

This entails more tied-up capital and deferred effects on profits compared with our traditional method of advance sales before production starts of our own development projects. One project we started on our own balance sheet during the quarter is in Partille Port, an area we have developed for several years and where we are now producing a further 116 homes. The intention is to convert these to tenant-owner apartments later on.

Target outcome

After the first quarter 2025 we are reporting the outcome for three of our nine external targets: operating margin, net debt/equity ratio and serious accidents. The operating margin was 4.4 percent calculated on a rolling twelve month basis compared to 4.7 percent for the full year 2024. The target is six percent. The net debt/equity ratio was 0.5 (0.6) at the end of the month of March, which is inside the target interval 0.3-0.7.

Happily the clearly contracting trend in serious accidents has continued. Calculated on a rolling 12-month basis per March 31, 2025, these amounted to 28 (33 per December 31, 2024). We will continue to work with unabated intensity to keep the contracting trend going.

Market and prospects for the future

The geopolitical unpredictability contributes to a more cautious market and investment uncertainty. At the same time in some aspects Peab's business can benefit from the volatile world around us such as increase in funding for security and defense related projects.

Prospects for the Nordic construction markets are on the whole the same as they were in the previous quarter. The housing markets are expected to improve during 2025 as lower interest rates take effect, possibly at a slower pace than previously expected. Premise construction development points to a continued positive market, although somewhat more diversified between segments. Forecasts for the civil engineering market in 2025 show good growth there.

Peab's four business areas complement each other well and enable us to take advantage of the demand in our various product segments and the geographic markets. This is an advantage in any economy.

Jesper Göransson President and CEO

Net sales and profit

January – March 2025

Group net sales decreased slightly during the first quarter 2025 and amounted to SEK 10,925 million (11,141). Net sales for the latest rolling 12 month period amounted to SEK 58,481 million compared to SEK 58,697 million for the full year 2024. The share of public sector customers of net sales calculated on a rolling 12 month basis increased and accounted for 56 percent (50) and private customers for 44 percent (50).

Net sales in business area Construction decreased by eight percent compared to the same quarter last year. The decrease is due to less activity in new housing production that has not been fully compensated for by other types of projects. Activity in business area Civil Engineering continued to be high during the quarter and net sales increased by three percent. Net sales in business area Industry decreased by five percent due to lower activity in construction systems and rental operations resulting from a weak housing market. Net sales in Project Development decreased slightly compared to the corresponding period last year and the decrease is attributable to Housing Development.

Group operating profit amounted to SEK -278 million (-106) and the operating margin was -2.5 percent (-1.0). The first quarter is markedly affected by the season, particularly in business area Industry, since the beginning of the year is characterized by considerable deficits because the paving season begins in the second quarter. The first quarter last year included a positive effect of SEK 220 million in business area Project Development as a result of the divestment of the shares in the joint venture Tornet Bostadsproduktion.

The operating margin improved in business area Construction to 2.1 percent (1.7) in the first quarter and in business area Civil Engineering the operating margin improved to 3.1 percent (2.2). All in all, the operating margin for construction contract operations amounted to 2.5 percent (1.9). Operating profit in business area Industry fell and the operating margin was -24.0 percent (-19.9). The operating profit in paving was on par with the first quarter of 2024, but both construction system and rental operations have been affected by the weak housing market and reported lower profitability compared to the first quarter last year. Operating profit in business area Project Development amounted to SEK 83 million (246) where capital gains from divestitures of properties and shares in joint ventures in Property Development contributed by SEK 47 million (258). The comparable period included a capital gain of SEK 220 million from the sale of shares in the joint venture Tornet Bostadsproduktion. In Housing Development the operating margin was 3.6 percent (-1.5).

Depreciation and write-downs for the first quarter were SEK -355 million (-350).

Elimination and reversal of internal profit in our own projects affected operating profit during the quarter by net SEK 19 million (7).

Net financial items amounted to SEK -106 million (-76) of which net interest was SEK -79 million (-102).

Pre-tax profit was SEK -384 million (-182). Profit for the period was SEK -351 million (-129).

Operating profit and operating margin, per quarter

^* Operating margin excluding effect of MoS was 4.4%. For more information on the arbitration judgement in Mall of Scandinavia, see the Annual and Sustainability Report 2024

Operating profit and operating margin, rolling 12 months

^* Operating margin rolling 12 months excluding effect of MoS was 3.8% as of June 30, 2023, 3.6% as of September 30, 2023, 2.5% as of December 31, 2023 and 2.6% as of March 31, 2024.

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.

Financial position and cash flow

Financial position

Total assets according to segment reporting per March 31, 2025 were SEK 42,722 million (43,949). Equity amounted to SEK 16,285 million (14,976), which entails an equity/assets ratio of 38.1 percent (34.1).

Interest-bearing net debt amounted to SEK 8,266 million (9,139) per March 31, 2025. During the quarter dividends of SEK 1,100 million were received from Fastighets AB Centur, which was offset against interest-bearing 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. The unsold part was SEK 1,944 million (2,649). Interest-bearing receivables amounted to SEK 1,648 million (2,583). The amount includes a capital claim of SEK 1,067 million (1,067) on Unibail-Rodamco-Westfield according to the arbitration decision announced on June 30, 2023. For details regarding the arbitration, see the section Risks and uncertainty factors and the Annual and Sustainability Report 2024. The average interest rate in the loan portfolio was 4.8 percent (5.8) on March 31, 2025.

Group liquid funds according to IFRS, including unutilized credit facilities but excluding project financing, were SEK 8,159 million at the end of the period 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 1,819 million at the end of the period compared to SEK 2,179 million on December 31, 2024. Surety for credit lines in tenant-owner associations regarding the unsold part after deconsolidation made up SEK 240 million of contingent liabilities compared to SEK 508 million on December 31, 2024.

Investments and divestments

During the quarter tangible and intangible fixed assets were invested for SEK 153 million (179). The investments mainly refer to investments in machines in business area Industry. During the quarter tangible and intangible fixed assets of SEK 43 million (44) were divested.

Project and development properties

Project and development properties, which are reported as inventory items, amounted to SEK 16,720 million as of March 31, 2025, compared to SEK 16,828 million as of December 31, 2024. The net change during the quarter was SEK -108 million (879). The increase during the corresponding quarter last year was due to the acquisition of building rights in Nacka through the purchase of Sicklaön Bygg Invest AB.

Cash flow

Cash flow from current operations was SEK -430 million (-874) in the first quarter 2025, of which cash flow from changes in working capital was SEK -134 million (-388). The negative cash flow is mainly related to business area Industry where the season does not start until the second quarter.

Cash flow from investment activities was SEK 67 million (656). The positive cash flow is related to business area Project Development and the sale of shares in joint ventures. At the same time the level of machine investments in business area Industry was lower than in the first quarter 2024. Last year cash flow was positively affected by the sale of shares in the joint venture Tornet Bostadsproduktion in business area Project Development.

Cash flow before financing was SEK -363 million (-218).

Net debt

MSEK	Mar 31 2025	Mar 31 2024	Dec 31 2024
Bank loans	4,459	5,775	3,790
Commercial papers	608	369	642
Bonds	3,667	3,067	3,722
Financial leasing liabilities	700	820	733
Project financing, unsold part of housing projects	1,944	2,649	2,237
Other interest-bearing liabilities	10	65	1,115
Interest-bearing receivables	-1,648	-2,583	-1,643
Liquid funds	-1,474	-1,023	-1,478
Net debt, segment reporting	8,266	9,139	9,118
Additional leasing liabilities according to IFRS 16	1,378	1,458	1,460
Project financing, sold part of housing projects	879	4,332	675
Net debt, IFRS	10,523	14,929	11,253

Net debt and net debt/equity ratio

Cash flow before financing

Order situation

January – March 2025

Orders received continued to be high during the first quarter 2025 and amounted to SEK 16,574 million (17,889). The level of orders received rose in business areas Construction, Industry and Project Development while it fell in business area Civil Engineering, which had a very high level in the comparable period. Paving contracts increased in business area Industry in both Sweden and Finland. Business area Project Development started production of more tenant-owner apartments/condominiums than in the corresponding quarter last year, which had a positive effect on the level of orders received. There is a large portion of projects for the public sector in orders received for the Group.

Order backlog yet to be produced at the end of the period grew and amounted to SEK 51,955 million (47,808). Of the total order backlog, 47 percent (46) is expected to be produced after 2025 (2024). Swedish operations accounted for 78 percent (81) 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 other projects have fallen away. During the quarter most of the new projects are in business area Construction. The value of the construction contracts generated from these phase 1 contracts at the end of March was around SEK 16 billion, and these orders will potentially be received over the next two years.

Orders received

MSEK	Jan-Mar 2025	Jan-Mar 2024	Apr 2024- Mar 2025	Jan-Dec 2024
Construction	8,784	6,654	24,354	22,224
Civil Engineering	4,870	8,188	19,135	22,453
Industry	3,835	2,932	14,666	13,763
Project Development	1,276	627	2,862	2,213
Eliminations	-2,191	-512	-5,822	-4,143
Group	16,574	17,889	55,195	56,510

Order backlog

	Mar 31	Mar 31	Dec 31
MSEK	2025	2024	2024
Construction	26,685	25,483	23,188
Civil Engineering	21,129	18,623	19,853
Industry	7,417	6,211	4,282
Project Development	1,975	1,709	1,536
Eliminations	-5,251	-4,218	-3,953
Group	51,955	47,808	44,906

Project size of order backlog, March 31, 2025

Order backlog allocated over time

We received a number of major construction projects and contracts in the first quarter, including:

• Renovation of an office building in Helsinki. The customer is Nordisk Renting. The contract is worth EUR 10 million.
• Construction of new barracks in Visby on Gotland. The customer is the Swedish Fortifications Agency. The contract is worth SEK 207 million.
• Construction of Björkås School in Ulricehamn. The customer is Ulricehamn Municipality. The contract is worth SEK 255 million.
• Construction of a new central kitchen for Palvelukeskus Helsinki in Vantaa. The customer is Kiinteistö Oy AB Pakkalantie 30. The contract is worth EUR 35 million.
• Extension to Hjärupslund School in Hjärup. The customer is Staffanstorps kommunfastigheter AB. The contract is worth SEK 109 million.
• Construction of new work premises at Skenäs Prison on the outskirts of Norrköping. The customer is Specialfastigheter. The contract is worth SEK 135 million.
• Commission to expand Skjetten Elementary School in Lillestrøm. The customer is Lillestrøm Municipality. The contract is worth NOK 113 million.
• Commission to modify Lunden School in Gothenburg. The customer is Gothenburg City's Stadsfastighetsförvaltning. The contract is worth SEK 275 million.
• Rebuilding of the wastewater treatment plant in Henriksdal in Stockholm. The customer is Stockholm Vatten och Avfall. The contract is worth SEK 368 million.
• Construction of a new school and health center in Karasjok. The customer is Karasjok Municipality. The contract is worth NOK 543 million.
• Construction of the new Vigra School in Giske. The customer is Giske Municipality. The contract is worth NOK 159 million.

• Construction of the new housing project Fagertun in Ulsteinvik. The customer is Ulsmo. The contract is worth NOK 176 million.

• Construction of a bus depot in Lockarp in Malmö. The customer is Region Skåne. The contract is worth SEK 339 million.

• Construction of a new swimming pool facility in Götene. The customer is Götene Municipality. The contract is worth SEK 250 million.
• Construction of homes in Luthagen in Uppsala. The customer is HSB Uppsala. The contract is worth SEK 151 million.
• Construction of new test facilities and offices in Örnsköldsvik. The customer is BAE Systems Hägglunds. The contract is worth SEK 280 million.
• Commission to continue rebuilding Highway E22 in Lund. The customer is the Swedish Transport Administration. The contract is worth SEK 335 million.
• Construction of a new nursing home in Vårgårda. The customer is Vårgårda Municipality. The contract is worth SEK 268 million.
• Construction of a new nursing home and preschool in Varberg. The customer is Varbergs Fastighets AB. The contract is worth SEK 200 million.
• Commission to complete the construction of the School of Business, Economics and Law at the University of Gothenburg. The customer is Akademiska Hus. The contract is worth SEK 350 million.
• Construction of the new holiday home complex Trysil Suites in Trysil. The customer is Skiab. The contract is worth NOK 194 million.
• Construction of a combined heat and power plant in Örtofta. The customer is Kraftringen Energi. The contract is worth SEK 388 million.
• Commission to expand the smolt facility at Sævareid in Bjørnafjorden. The customer is Artec Aqua AS. The contract is worth NOK 116 million.

The following own housing developments of tenant-owner/condominium apartments were productionstarted in the first quarter:

• Brf Kvarnholmshöjden in Nacka comprising 105 apartments. The property will be environmentally certified according to the Swan and built with ECO-Betong (ECO-Concrete) and solar panels. The project is expected to be completed in June 2027.
• Brf Mittfältaren in Solna comprising 141 apartments. The property will be environmentally certified according to the Swan and built with ECO-Betong (ECO-Concrete) and solar panels. The project is expected to be completed in December 2027.
• Brf Solgårdsbacken in Stenungsund comprising 50 apartments. The property will be environmentally certified according to the Swan. The project is expected to be completed in December 2026.

We received a number of paving contracts in the first quarter, including:

• Three-year federal contract in Uppsala County worth SEK 122 million.
• Three-year federal contract in Dalarna County worth SEK 75 million.
• Two-year federal contract in Värmland County worth SEK 69 million.
• Two-year federal contract in Bohus County and Dalsland worth SEK 62 million.
• Three-year federal contract in Bohus County and Dalsland worth SEK 59 million.
• Two-year federal contract in Värmland County worth SEK 55 million.
• One-year federal contract in North Ostrobothnia worth EUR 11.4 million.

• One-year federal contract in Southwest Finland worth EUR 10.6 million.

• One-year federal contract in South Karelia worth EUR 10.1 million.

• Four-year municipal contract in Lahti worth EUR 9.5 million.
• One-year federal contract in South Savo worth EUR 8.8 million.
• One-year federal contract in North Karelia worth EUR 8.1 million.
• One-year federal contract in South Ostrobothnia worth EUR 7.9 million.
• One-year private contract at Tromsø Airport worth NOK 77 million.
• One-year privat contract at Bergen Airport worth NOK 60 million.
• One-year municipal contract in Herning worth DKK 39 million.

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	Jan-Mar 2025	Jan-Mar 2024	Apr 2024- Mar 2025	Jan-Dec 2024	Jan-Mar 2025	Jan-Mar 2024	Apr 2024- Mar 2025	Jan-Dec 2024
Construction	5,317	5,788	23,346	23,817	111	101	426	416
Civil Engineering	3,668	3,558	16,649	16,539	114	77	536	499
Industry	2,283	2,411	21,420	21,548	-549	-479	1,345	1,415
Project Development	991	1,055	4,206	4,270	83	246	565	728
– of which Property Development	57	23	720	686	49	261	611	823
– of which Housing Development	934	1,032	3,486	3,584	34	-15	-46	-95
Group functions	346	329	1,367	1,350	-56	-58	-339	-341
Eliminations	-1,680	-2,000	-8,507	-8,827	19	7	58	46
Group, segment reporting	10,925	11,141	58,481	58,697	-278	-106	2,591	2,763
Adjustment housing to IFRS	-100	309	2,177	2,586	-16	85	263	364
IFRS 16' additional leases	–	–	–	–	12	9	39	36
Group, IFRS	10,825	11,450	60,658	61,283	-282	-12	2,893	3,163
Of which construction contract businesses according to segment reporting (Construction and Civil Engineering)	8,985	9,346	39,995	40,356	225	178	962	915

		Operating margin
Percent	Jan-Mar 2025	Jan-Mar 2024	Apr 2024- Mar 2025	Jan-Dec 2024
Construction	2.1	1.7	1.8	1.7
Civil Engineering	3.1	2.2	3.2	3.0
Industry	-24.0	-19.9	6.3	6.6
Project Development	8.4	23.3	13.4	17.0
– of which Property Development	86.0	1,134.8	84.9	120.0
– of which Housing Development	3.6	-1.5	-1.3	-2.7
Group functions
Eliminations
Group, segment reporting	-2.5	-1.0	4.4	4.7
Adjustment housing to IFRS
IFRS 16' additional leases
Group, IFRS	-2.6	-0.1	4.8	5.2
Of which construction contract businesses according to segment reporting (Construction and Civil Engineering)	2.5	1.9	2.4	2.3

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

Net sales for the first quarter 2025 decreased by eight percent and amounted to SEK 5,317 million (5,788). The decrease is due to less activity in new housing production that has not been fully compensated by other types of projects.

The proportion of housing construction in net sales has fallen sharply while premise construction, primarily for the public sector, has increased. Calculated on a rolling 12 month basis, per March 31, 2025 housing accounted for 26 percent (36) of net sales.

Operating profit increased during the quarter and amounted to SEK 111 million (101) and the operating margin improved to 2.1 percent (1.7). The operating margin for the latest rolling 12 month period was 1.8 percent compared to 1.7 percent for the full year 2024.

Orders received and order backlog

Orders received increased during the first quarter and amounted to SEK 8,784 million (6,654). There is a large portion of projects for the public sector in orders received. Calculated on a rolling 12 month period the level of orders received was 104 percent of net sales.

Order backlog on March 31, 2025 was SEK 26,685 million (25,483). The proportion of housing projects at the end of the period was 29 percent (29).

Net sales

per product area, rolling 12 months

per geographic market, rolling 12 months

Order backlog, March 31, 2025

per product area

per project size

	Jan-Mar	Jan-Mar	Apr 2024-	Jan-Dec
	2025	2024	Mar 2025	2024
Net sales, MSEK	5,317	5,788	23,346	23,817
Operating profit, MSEK	111	101	426	416
Operating margin, %	2.1	1.7	1.8	1.7
Orders received, MSEK	8,784	6,654	24,354	22,224
Orders received/net sales, %	165	115	104	93
Order backlog, MSEK	26,685	25,483	26,685	23,188
Operating cash flow, MSEK	287	162	122	-3
Average number of employees	4,181	4,554	4,373	4,477

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 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 wastewater networks.

Net sales and profit

Activity was high during the first quarter 2025 in business area Civil Engineering in both Sweden and Norway. Public investments in the form of infrastructure and water and sewage facilities as well as the ongoing climate transition have a positive impact. Net sales increased by three percent to SEK 3,668 million (3,558).

Operating profit increased to SEK 114 million (77) and the operating margin improved to 3.1 percent (2.2). The operating margin for the latest rolling 12 month period was 3.2 percent compared to 3.0 percent for the full year 2024.

Orders received and order backlog

The level of orders received was lower during the first quarter 2025 and amounted to SEK 4,870 million (8,188). The level of orders received in the comparable period was very high and included a couple of major infrastructure projects and operation and maintenance contracts in excess of one billion Swedish kronor. Calculated on a rolling 12 month period the level of orders received was 115 percent of net sales.

Order backlog on March 31, 2025 amounted to SEK 21,129 million (18,623). Roads and other infrastructure make up the largest portion of the order backlog at 36 percent (31).

Net sales

per product, rolling 12 months

per geographic market, rolling 12 months

Order backlog, March 31, 2025

per product

per project size

	Jan-Mar 2025	Jan-Mar 2024	Apr 2024- Mar 2025	Jan-Dec 2024
Net sales, MSEK	3,668	3,558	16,649	16,539
Operating profit, MSEK	114	77	536	499
Operating margin, %	3.1	2.2	3.2	3.0
Orders received, MSEK	4,870	8,188	19,135	22,453
Orders received/net sales, %	133	230	115	136
Order backlog, MSEK	21,129	18,623	21,129	19,853
Operating cash flow, MSEK	226	299	624	697
Average number of employees	3,082	3,120	3,216	3,235

Business area Industry

Business area Industry provides products and services needed to carry out construction and civil engineering projects on the Nordic market that are more sustainable and cost-efficient. 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 assists with crane, barrack and machine rental, distribution of binder to the concrete industry, transportation and recycles surpluses from the construction and civil engineering industry as well. The business area is run in six product areas: mineral aggregates, paving, concrete, transportation and machines, rentals and construction system.

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.

Net sales for the first quarter 2025 decreased by five percent to SEK 2,283 million (2,411). The decrease is related to construction systems and rentals due to a weak housing market.

Operating profit contracted during the first quarter and amounted to SEK -549 million (-479) and the operating margin was -24.0 percent (-19.9).

Mineral aggregates and concrete had slightly improved earnings in the quarter compared to the corresponding quarter last year. Operating profit for paving, where the first quarter entails preparing for the coming season, was on par with the first quarter 2024. Some of the operations in the Norwegian paving and mineral aggregates operations are undergoing review due to a period of low earnings. Both construction systems and rental operations have been impacted by the weak housing market and reported lower profitability compared to the first quarter last year. The operating margin of the business area for latest rolling 12 month period was 6.3 percent compared to 6.6 percent for the full year 2024.

Capital employed at the end of the period decreased and was SEK 9,735 million compared to SEK 10,806 million at the end of the corresponding period last year. The decrease is due to a lower investment rate and an improvement in working capital.

Orders received and order backlog

The level of orders received increased during the first quarter to SEK 3,835 million (2,932). The increase is related to paving contracts in both Sweden and Finland.

Order backlog per March 31, 2025 amounted to SEK 7,417 million (6,211).

Net sales

per product area, rolling 12 months

per geographic market, rolling 12 months

	Jan-Mar 2025	Jan-Mar 2024	Apr 2024- Mar 2025	Jan-Dec 2024
Net sales, MSEK	2,283	2,411	21,420	21,548
Operating profit, MSEK	-549	-479	1,345	1,415
Operating margin, %	-24.0	-19.9	6.3	6.6
Orders received, MSEK	3,835	2,932	14,666	13,763
Order backlog, MSEK	7,417	6,211	7,417	4,282
Capital employed at the end of the period, MSEK	9,735	10,806	9,735	9,920
Operating cash flow, MSEK	-611	-536	2,249	2,324
Average number of employees	3,616	3,560	4,448	4,441
3 1) Concrete, thousands of m	163	187	892	916
1) Paving, thousands of tons	135	111	6,695	6,671
1) Mineral Aggregates, thousands of tons	3,999	4,426	27,403	27,830

Refers to sold volume

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 the big city areas throughout the Nordic region.

Net sales and profit

Net sales in Project Development contracted during first quarter 2025 and amounted to SEK 991 million (1,055). The decrease is attributable to Housing Development. Operating profit amounted to SEK 83 million (246) and the operating margin was 8.4 percent (23.3).

Capital employed in Project Development at the end of the period amounted to SEK 18,435 million (18,334).

Capital employed

MSEK	Mar 31 2025	Mar 31 2024	Dec 31 2024
Operations property	33	145	34
Investment property	35	36	36
Project and development property	16,937	15,496	17,017
of which housing development rights	8,869	8,793	9,344
of which commercial development rights	1,682	960	1,671
of which ongoing housing projects	2,832	3,414	2,740
of which ongoing commercial projects	160	614	115
of which completed and repurchased homes	2,155	1,679	1,895
of which completed commercial property	1,239	36	1,252
Shares in joint ventures	1,619	2,362	2,880
Loans to joint ventures	491	1,434	484
Working capital and other	-680	-1,139	-684
Total	18,435	18,334	19,767
of which Property Development	5,015	4,590	6,165
of which Housing Development	13,420	13,744	13,602

	Jan-Mar 2025	Jan-Mar 2024	Apr 2024- Mar 2025	Jan-Dec 2024
Net sales, MSEK	991	1,055	4,206	4,270
of which Property Development	57	23	720	686
of which Housing Development	934	1,032	3,486	3,584
Operating profit, MSEK	83	246	565	728
of which Property Development	49	261	611	823
of which Housing Development	34	-15	-46	-95
Operating margin, %	8.4	23.3	13.4	17.0
of which Property Development	86.0	1,134.8	84.9	120.0
of which Housing Development	3.6	-1.5	-1.3	-2.7
Capital employed at the end of the period, MSEK	18,435	18,334	18,435	19,767
Orders received, MSEK	1,276	627	2,862	2,213
Order backlog, MSEK	1,975	1,709	1,975	1,536
Operating cash flow, MSEK	269	151	540	422
Average number of employees	131	182	142	155

Housing Development

The weak demand on the Nordic housing market in recent years is clearly noticeable in Housing Development. Net sales in the first quarter 2025 amounted to SEK 934 million (1,032). The low net sales are due to few production starts and few ongoing housing projects of tenant-owner apartments/condominiums. Operating profit was SEK 34 million (-15) and the operating margin was 3.6 percent (-1.5). The operating margin for the latest rolling 12-month period was -1.3 percent compared to -2.7 percent for the full year 2024.

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.

Production started on a total of 523 (137) own developed homes during the quarter. Of these, 336 (137) were tenant-owner apartments/condominiums, of which 40 were converted from homes on our own balance sheet. Two of the housing projects are located in Stockholm, one on Kvarnholmen in Nacka and one in Råsunda in Solna. This demonstrates that it is possible to start tenant-owner housing projects in unique locations. Production started on 187 (-) homes as new housing developments on our own balance sheet. The number of sold homes during the quarter was 272 (305), of which 226 (166) were tenant-owner apartments/condominiums and 46 (-) were homes on our own balance sheet under production. In the first quarter last year 139 homes were sold in rental apartment projects as well.

The total number of homes in production at the end of the period was 1,910 (2,810), of which 1,207 (1,866) were tenant-owner apartments/condominiums, 80 (320) were homes in rental apartment projects and 623 (624) were homes on our own balance sheet. At the end of the period the sales rate for the total number of homes in production was 35 percent (45). The sales rate of tenantowner apartments/condominiums was 43 percent (61). The total number of completed and repurchased homes was 678 (479), most of which were in Sweden.

Sales of our own housing developments continued to be low during the quarter, even though we are selling at an even pace. The trend that sales opportunities increase as the project approaches completion is continuing and we are therefore continuing to work on the strategy of starting more projects on our own balance sheet. We will then convert them into tenant-owner apartments/condominiums, which entails more tied-up capital and deferred effects on profits compared with our traditional method of advance sales before production starts of our own development projects, or sell them as rental apartments.

There is an underlying need for new housing although aspects like high construction costs and downward revised forecasts regarding population growth make it harder to assess demand in the medium-term. As far as Peab is concerned we have a well-dimensioned development rights portfolio in attractive locations and in anticipation of market recovery we are further developing and preparing projects for start-ups in the future.

Capital employed decreased and amounted to SEK 13,420 million (13,744) at the end of the period.

Net sales

per geographic market, rolling 12 month

Number of started-up homes

Number	Jan-Mar 2025	Jan-Mar 2024	Apr 2024- Mar 2025	Jan-Dec 2024
Tenant-owner apartments/condominiums	336	137	856	657
– of which converted from homes on our own balance sheet	40	–	249	209
Rentals	–	–	–	–
Homes on our own balance sheet	187	–	–	-187
– of which converted to tenant-owner apartments/condominiums	-40	–	-249	-209
Total number of homes	523	137	856	470

Number of homes in ongoing production

	Mar 31	Mar 31	Dec 31
Number	2025	2024	2024
Tenant-owner apartments/condominiums	1,207	1,866	1,056
– of which sold share	43%	61%	45%
Rentals	80	320	80
– of which sold share	100%	36%	100%
Homes on our own balance sheet	623	624	436
– of which sold share	9%	0%	4%
Total number of homes	1,910	2,810	1,572
– of which sold share	35%	45%	37%

Number of sold homes

Number	Jan-Mar 2025	Jan-Mar 2024	Apr 2024- Mar 2025	Jan-Dec 2024
Tenant-owner apartments/condominiums	226	166	770	710
Rentals	–	139	159	298
Homes on our own balance sheet	46	–	69	23
Total number of homes	272	305	998	1,031

Number of completed and repurchased homes

Number	Mar 31 2025	Mar 31 2024	Dec 31 2024
Tenant owner apartments/condominiums	372	254	266
Rentals	306	225	306
Total number of homes	678	479	572

Number of homes

Property Development

Net sales and operating profit from operations are derived from acquisitions, development, 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.

Net sales for the first quarter 2025 were SEK 57 million (23) and operating profit was SEK 49 million (261). Capital gains from property divestitures and participations in joint ventures amounted in total to SEK 47 million (258). 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 18 million (19).

At the end of the period capital employed in Property Development was SEK 5,015 million (4,590). A large part of the capital employed consists of shares in joint ventures and loans to joint ventures. During the quarter, 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 March 31, 2025.

Property projects

					Adopted
		Rentable	Degree rented,	Recognized	investment,	Completion	Completion
Type of project	Location	2 area in m	%	value, MSEK	MSEK	time point	level, %
Ongoing
Retail, office building and parking	Malmö	8,300	43	114	592*	Q3-2027	19
Completed
Office building	Gothenburg	12,900	40	536
Apartment hotel	Malmö	4,200	100	137
Office building	Malmö	2,500	100	140
Office building	Malmö	3,600	100	131
Office building	Malmö	4,900	100	260

^* The amount includes approximately 17,000 m of parkering space 2

Significant joint ventures

Peab's significant joint venture companies 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 on lending. Changes in market values that affect book values in the joint venture companies 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 March 31, 2025: SEK 1,828 million (1,878)

Major ongoing projects: No major ongoing projects

Point Hyllie Holding AB

Develop and own 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 March 31, 2025: SEK 1,335 million (1,370)

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 March 31, 2025 : SEK 2,125 million (2,154) Peab's portion of unrecognized fair value exclusive tax : SEK 65 million (46) Major ongoing projects: 37 vacation apartments, Trysil Suites, in Trysil 1) 1)

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.

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 three of these targets: the operating margin, net debt/equity ratio and our target concerning our vision of zero workplace accidents and a contracting trend in serious workplace accidents.

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 corresponds to 25 percent of the rating for the Group's compiled CSI result. In 2024 CSI amounted to 78 which is a continued good result and bit over our target of 75.

In connection with the CSI survey we also ask customers how they perceive Peab based on a number of factors. Both private and business customers give Peab's personnel the highest rating while reliability increased the most. Almost 2,400 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.

The next target update will be after the fourth quarter in the year-end report

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 work-places 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.

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. We are happy to say that the number of serious accidents has continued to contract, from 33 for full year 2024 to 28 over a rolling twelve month period per March 31, 2025. During the first quarter 2025 there were eight serious accidents, of which five involved our own employees and three employees of subcontractors.

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 first quarter of the year the number of LTI4 contracted to 25 (37 in the fourth quarter 2024) and the LTIF4 frequency rate over a rolling 12 month period was 5.7 (5.9 after the fourth quarter 2024). Now we will continue with unabated intensity to reduce the number of accidents.

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 if employees are willing to recommend Peab as an employer (eNPS). The latter is also one of our nine external targets that we report twice a year and should be above the benchmark for the industry and manufacturing trade.

In the autumn survey the eNPS value for the Group continued to be far above the Nordic benchmark. We increased by a point to 28 (27) even though last year was full of external challenges. At the same time the benchmark fell by three points to

17 (20). The eNPS value rose particularly for female skilled workers. In the survey employees rated collaboration with co-workers, community and Peab's core values as some of the company's greatest strengths. The negative trend was strain. Participation in the autumn survey was the highest in Peab's history with 90.2 (89.9) percent, displaying the great interest our employees have in contributing to the development of our business.

The next target update will be after the second quarter in the half-year report 2025.

* 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 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. We have a life cycle perspective in our operations and take responsibility for both making and meeting demands in our value chain. We have an advantage in 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 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) by at least 50 percent compared to base year 2015. The outcome after 2024 revealed that developments are going in the right direction although to different degrees. Carbon dioxide intensity in our own operations has gone down by 50 percent. Carbon dioxide intensity for input goods and purchased services, where the scope and extent of reported data has improved in 2024, has decreased by 12 percent since 2015. Using more ECO-products in operations and a higher degree of reuse and recycling of waste contribute to the reduction although this positive effect is diminished due to the change in Sweden as of 2024 of the reduction obligation. There might also be a certain delay in revision of emission factors as a result of the changed reduction obligation on our fuel-related products. In 2024 in absolute figures (tCO₂e) Scope 1 amounted to 176,000, Scope 2 (market based) was 14,500 and Scope 3 was 910,000. These figures show that we are well on the road to converting the production we ourselves have control over but the greater challenge is when we are dependent on other parties for a reduction in our carbon footprint. It is therefore vital that together with our customers we continue to make explicit and stringent demands for the climate improvement measures in order to reduce emissions. We work actively to better the quality of our metrics of greenhouse gases emissions, particularly in Scope 3 reporting, and we have also increased the scope of reported data in 2024.

The next target update will be after the fourth quarter in the year-end report 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 have a responsibility to nudge the entire industry forward. The portion of women that graduate with, for Peab, degrees in relevant, practical education in the Nordic region has increased to around eight percent from previously six percent. Our target is that the percentage of women recruited to Peab for our core skills to always be higher than the percentage of women who have graduated with, for us, relevant degrees on the education markets. Therefore we have raised our target for 2025 to 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 2024 the percentage of women in new recruitments was 10.6 percent in production and processing compared to our target of at least 6.0 percent. New recruitment in production management and production support rose to 39.1 percent compared to our target of at least 30.0 percent. There have been relatively few recruitments during the past year because of the current market situation.

The next target update will be after the fourth quarter in the year-end report 2025.

Activities during the first quarter

• Swerock launched the new concrete product ECO SweKem especially produced for demanding environments in primarily treatment plants, in agriculture and the heavy chemical industry. ECO SweKem is in both step 3 and 4, the highest levels of ECO-Betong (ECO-Concrete). •
• For the third time The Construction Year, Peab's one year trainee program for women, is taking in new applications. The Construction Year was launched in 2023 to counter the sluggish pace of equality work in the construction and civil engineering industry. This autumn the third round of trainees will be placed in construction projects in some 15 locations throughout the country. •
• Peab is a partner in the development project CleanCon ll which is aimed at accelerating the transition to renewable energy in the construction and civil engineering industry, thereby achieving climate neutral transportation. In the project Peab tests and evaluates large electric, emission free machines •
• in existing construction contracts in Norway, Sweden and Denmark. The project comprises municipalities, entrepreneurs, energy suppliers in battery and hydrogen gas technology, machine suppliers and research institutes.
• Lambertsson has developed an energy saving tower crane, ECO-crane, that was tested on a construction site for apartment buildings in Jyväskylä in Finland. The tower crane uses brake energy regeneration, feeding energy back into the electricity grid for reuse. This has resulted in a 27 percent energy savings on the construction site in Jyväskylä. •
• The project Peder Holmsgatan in Ronneby won the award Construction of the Year 2025 in the category renovation. Ronnebyhus commissioned Peab to renovate an apartment building from the 50s. It was the first renovation project to be Swan certified in Sweden. •

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

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. **Operating margin 4.5 % excl. the effect of the distribution of Annehem Fastigheter (SEK 952 million). *** Operating margin 2.5 % excl. Mall of Scandinavia (SEK 400 million). **** Calculated on rolling 12 month per March 31, 2025.

Best workplace

Serious accidents

Target: Zero fatal accidents and contracting trend, rolling 12 months, serious accidents classification 4 (reported quarterly)

Leader in social responsibility

Carbon dioxide intensity: Climate targets for our own production

Target: Reduced emissions of GHG Scope 1+2* (tons CO₂e/MSEK) by 60% until 2030 (reported annually)

* Direct and indirect emissions as a result of using fuel and energy in our own production.

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.** Per March 31,

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.

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.

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.

Most satisfied customer

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

Equal opportunity recruitment

Target: Share of women recruited > the education market (reported annually)

Production management and production support (white-collar workers), %

— Actual -- Target

Production and processing (skilled workers), %

Construction market

Sweden

The Swedish GNP grew slightly in 2024 and GNP growth in 2025 is estimated at 1.7 percent. Global turbulence and the ongoing shifts in trade policies that commenced 2025 make it hard to assess how interest rates will develop but general consensus is that the repo rate will remain at 2.25 percent over the forecast period. If inflation stabilizes at around two percent, this will create the right conditions for household's purchasing power and the economy to recover. Despite greater uncertainty at the beginning of the year housing construction is expected to continue to recover in 2025, albeit at a slower pace. The forecast for newly built premises has been adjusted downward marginally for 2025 although construction is expected to be above the historic average. While industrial investments have slowed, construction of new premises is being supported by politically driven investments in the justice system and the military. In the same vein, recovery in renovations of both homes and premises is expected to accelerate in 2025. Total civil engineering investments are expected to ratchet up compared to 2024 and increase by five percent. This is primarily due to expansion of the electricity grid as well as higher investments in roads and railroads but investments in ports and shipping lanes are expected to increase as well.

Norway

Norway's mainland GNP is expected to grow by 1.2 percent in 2025. Norges Bank decided to leave the repo rate unchanged in March 2025 and it will take longer than previously predicted for interest rates to go down. Real wage growth and low unemployment is expected to boost purchasing power and benefit the construction market. Sales of newly produced homes is expected to slowly increase in 2025, although the postponed drop in interest rates and high construction costs will delay the normalization of new production. The forecasts for premise construction have been lowered for 2025 but still point to a more positive market than the two previous years. Higher military investments and good development in certain industries are stabilizing developments while the trend in commercial property, offices buildings and educational facilities is weaker this year. The renovation market is expected to grow in 2025. Forecasts for 2025 indicate good growth in the civil engineering market after a downturn in 2024. The most significant driving force of growth is expected to be the increase in power and energy plants but maritime infrastructure and municipal technique facilities are also expected to grow. Civil engineering investments are calculated to rise by 2.4 percent in 2025.

Finland

Optimism about the Finnish economy among consumers and companies has begun to improve. After a negative GNP development in 2024 GNP is expected to grow again in 2025 and is estimated at 0.8 percent. Inflation in Finland will most likely continue to be low and remain under two percent for the year. Even if interest rates continue to fall the level is still so high that they hamper continued growth. Recovery in the housing market has begun this year supported by falling interest rates and low inflation but the process is slow. As sales of homes on the second hand market accelerate sales of new homes are expected to follow, which will gradually lead to the start up of new housing production. Premise construction is expected to increase in 2025 driven by commercial, office and industrial buildings along with data centers and defense projects. Green investments will also contribute to higher premise construction. Housing renovations will likely have slight development during the year while renovations on the commercial market will increase primarily due to energy renovations. After declining for several years investments in civil engineering are expected to grow in 2025, mainly due to higher infrastructure investments. Zero growth is estimated in operation and maintenance in 2025.

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 will provide 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%

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 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.

A decision in the case between Peab and Unibail-Rodamco-Westfield regarding the contract for Mall of Scandinavia in Solna was handed down in Peab's favor on June 30, 2023. Thereafter Unibail-Rodamco-Westfield petitioned the Swedish Court of Appeal to set aside the judgment in its entirety in a so-called protest action. After a thorough legal trial through arbitration lasting nearly seven years Peab cannot see any grounds for a protest action. In the further process Peab will counter the protest action. During the process the arbitration judgement is suspended and thereby unenforceable, which defers the time of payment. Svea Court of Appeal is expected to hand down a judgement regarding the protest action during the second quarter 2025.

For further information about risks and uncertainty factors as well as on the arbitration judgement concerning Mall of Scandinavia, see the Annual and Sustainability Report 2024.

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.

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. No changes have occurred during first quarter 2025.

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 first quarter 2025.

Report on the Group income statement, IFRS

Group net sales according to IFRS amounted during the first quarter 2025 to SEK 10,825 million (11,450). The adjustment of our own housing development projects to the completion method affected net sales by SEK -100 million (309).

Operating profit according to IFRS for first quarter 2025 amounted to SEK -282 million (-12) and the operating margin was -2.6 percent (-0.1). The adjustment of our own housing development projects to the completion method affected operating profit by SEK -16 million (85).

MSEK	Jan-Mar 2025	Jan-Mar 2024	Apr 2024- Mar 2025	Jan-Dec 2024
Net sales	10.825	11.450	60.658	61.283
Production costs	-10.415	-11.008	-54.809	-55.402
Gross profit	410	442	5.849	5.881
Sales and administrative expenses	-783	-759	-3.213	-3.189
Other operating income	114	329	267	482
Other operating costs	-23	-24	-10	-11
Operating profit	-282	-12	2.893	3.163
Financial income	54	68	245	259
Financial expenses	-173	-155	-660	-642
Net finance	-119	-87	-415	-383
Pre-tax profit	-401	-99	2.478	2.780
Tax	34	43	-401	-392
Profit for the period	-367	-56	2.077	2.388
Profit for the period, attributable to:
Shareholders in parent company	-373	-57	2.076	2.392
Non-controlling interests	6	1	1	-4
Profit for the period	-367	-56	2.077	2.388
Key ratios, IFRS
Earnings per share before and after dilution, SEK	-1.30	-0.20	7.22	8.32
Average number of outstanding shares, million	287.5	287.5	287.5	287.5
1) Return on capital employed, %	10.2	9.2	10.2	10.8
1) Return on equity, %	13.3	13.8	13.3	15.7
1)

Calculated on rolling 12 months 1)

Report on the Group income statement and other comprehensive income in summary, IFRS

MSEK	Jan-Mar 2025	Jan-Mar 2024	Apr 2024- Mar 2025	Jan-Dec 2024
Profit for the period	-367	-56	2,077	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	-146	54	-159	41
Changes in fair value of cash flow hedges for the period	-1	13	-1	13
Shares in joint ventures' other comprehensive income	2	0	-6	-8
Tax referring to items that can be reclassified or have been reclassified to profit for the period	0	-3	0	-3
Other comprehensive income for the period	-145	64	-166	43
Total comprehensive income for the period	-512	8	1,911	2,431
Total comprehensive income for the period, attributable to:
Shareholders in parent company	-518	7	1,910	2,435
Non-controlling interests	6	1	1	-4
Total comprehensive income for the period	-512	8	1,911	2,431

Balance sheet for the Group in summary, IFRS

Total assets on March 31, 2025 were SEK 45,219 million (48,890). Equity amounted to SEK 16,001 million (14,481), which generated an equity/assets ratio of 35.4 percent (29.6).

MSEK	Mar 31 2025	Mar 31 2024	Dec 31 2024
Assets
Intangible assets	3,613	3,830	3,727
Tangible assets	7,397	8,266	7,653
Investment property	59	59	59
Interest-bearing long-term receivables	529	1,457	516
Other financial fixed assets	1,619	2,272	2,889
Deferred tax recoverables	52	95	48
Total fixed assets	13,269	15,979	14,892
Project and development properties	18,173	19,087	18,342
Inventories	2,115	2,227	1,612
Interest-bearing current receivables	1,119	1,126	1,127
Other current receivables	9,069	9,448	10,317
Liquid funds	1,474	1,023	1,478
Total current assets	31,950	32,911	32,876
Total assets	45,219	48,890	47,768
Equity
Equity attributable to shareholders in parent company	15,973	14,461	16,482
Non-controlling interests	28	20	22
Total equity	16,001	14,481	16,504
Liabilities
Interest-bearing long-term liabilities	6,689	6,738	6,094
Interest-bearing long-term liabilities, project financing	11	170	53
Deferred tax liabilities	513	618	544
Other long-term liabilities	1,687	1,704	1,657
Total long-term liabilities	8,900	9,230	8,348
Interest-bearing current liabilities	4,133	4,816	5,368
Interest-bearing current liabilities, project financing	2,812	6,811	2,859
Other current liabilities	13,373	13,552	14,689
Total current liabilities	20,318	25,179	22,916
Total liabilities	29,218	34,409	31,264
Total equity and liabilities	45,219	48,890	47,768
Key ratios, IFRS
Capital employed	29,646	33,016	30,878
Equity/assets ratio, %	35.4	29.6	34.6
Net debt	10,523	14,929	11,253
Equity per share, SEK	55.57	50.31	57.34
Number of outstanding shares at the end of the period, million	287.5	287.5	287.5

<-- PDF CHUNK SEPARATOR -->

Report on changes in Group equity in summary, IFRS

MSEK	Mar 31 2025	Mar 31 2024	Dec 31 2024
Equity attributable to shareholders in parent company
Opening equity on January 1	16,482	14,453	14,453
Profit for the period	-373	-57	2,392
Other comprehensive income for the period	-145	64	43
Total comprehensive income for the period	-518	7	2,435
Cash flow hedge transferred to cost of inventory	-1	1	-1
Tax on cash flow hedge	0	–	0
Contribution from, and value transferred to, owners
Share-based payments settled with equity instruments	10	–	26
Cash dividend	–	–	-431
Total contribution from, and value transferred to, owners	10	–	-405
Closing equity	15,973	14,461	16,482
Non-controlling interests
Opening equity on January 1	22	17	17
Comprehensive income for the period	6	1	-4
Contribution from, and value transferred to, owners
New issues	–	2	9
Total contribution from, and value transferred to, owners	–	2	9
Closing equity	28	20	22
Total closing equity	16,001	14,481	16,504

Report on Group cash flow in summary, IFRS

MSEK	Jan-Mar 2025	Jan-Mar 2024	Apr 2024- Mar 2025	Jan-Dec 2024
Cash flow from current operations before changes in working capital	-220	-318	3,761	3,663
Increase (-) / Decrease (+) of project and development properties	-31	-758	1,911	1,184
Increase (-) / Decrease (+) of inventories	-569	-468	13	114
Increase (-) / Decrease (+) of current receivables / current liabilities	268	869	-63	538
Cash flow from changes in working capital	-332	-357	1,861	1,836
Cash flow from current operations	-552	-675	5,622	5,499
Sale of subsidiaries / businesses, net effect on liquid funds	–	28	–	28
Acquisition of fixed assets	-196	-331	-797	-932
Sale of fixed assets	263	959	1,453	2,149
Cash flow from investment operations	67	656	656	1,245
Cash flow before financing	-485	-19	6,278	6,744
Shareholder contribution non-controlling interests	–	2	–	2
Increase (+) / Decrease (-) of interest-bearing liabilities	566	-38	-1,258	-1,862
Increase (+) / Decrease (-) of interest-bearing liabilities, project financing	-84	-166	-4,145	-4,227
Dividend distributed to shareholders in parent company	–	–	-431	-431
Cash flow from financing operations	482	-202	-5,834	-6,518
Cash flow for the period	-3	-221	444	226
Cash at the beginning of the period	1,478	1,243	1,023	1,243
Exchange rate differences in cash	-1	1	7	9
Cash at the end of the period	1,474	1,023	1,474	1,478

Parent company

The parent company Peab AB's net sales for the first quarter 2025 amounted to SEK 248 million (179) and mainly consisted of internal Group services. Profit for the period amounted to SEK -17 million (-5).

The parent company's assets mainly consist of participations in Group companies amounting to SEK 10,339 million (10,433). The assets have been financed from equity of SEK 13,345 million (11,804). During the period, the parent company reported share-based payments of SEK 10 million in equity.

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 means that all employees in Peab Support AB (Shared Service Centre) and Peab Utveckling AB have been 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.

Report on the parent company income statement in summary

MSEK	Jan-Mar 2025	Jan-Mar 2024	Apr 2024- Mar 2025	Jan-Dec 2024
Net sales	248	179	979	910
Administrative expenses	-308	-229	-1,245	-1,166
Other operating income	0	1	-1	0
Operating profit	-60	-49	-267	-256
Result from financial investments
Profit from participation in Group companies	–	–	822	822
Other financial items	38	43	176	181
Result after financial items	-22	-6	731	747
Appropriations	–	–	1,452	1,452
Pre-tax profit	-22	-6	2,183	2,199
Tax	5	1	-247	-251
1) Profit for the period	-17	-5	1,936	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 1)

Balance sheet for the parent company in summary

MSEK	Mar 31 2025	Mar 31 2024	Dec 31 2024
Assets
Fixed assets
Intangible assets	283	351	300
Tangible assets	45	36	48
Financial assets
Participation in Group companies	10,339	10,433	10,339
Receivables from Group companies	32	–	23
Deferred tax recoverables	106	85	106
Total financial assets	10,477	10,518	10,468
Total fixed assets	10,805	10,905	10,816
Current assets
Current receivables
Receivables from Group companies	5,360	3,846	5,734
Other receivables	254	219	61
Total current receivables	5,614	4,065	5,795
Cash and bank	0	0	0
Total current assets	5,614	4,065	5,795
Total assets	16,419	14,970	16,611
Equity and liabilities
Equity
Restricted equity	1,884	1,884	1,884
Non-restricted equity	11,461	9,920	11,468
Total equity	13,345	11,804	13,352
Untaxed reserves	2,798	2,919	2,798
Provisions
Other provisions	45	44	44
Total provisions	45	44	44
Current liabilities
Liabilities to Group companies	10	8	112
Current tax liabilities	20	–	89
Other liabilities	201	195	216
Total current liabilities	231	203	417
Total liabilities	276	203	417
Total equity and liabilities	16,419	14,970	16,611

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.

Note 2 – Revenue allocation

Group Jan-Mar 2025 MSEK	Construction	Civil Engineering	Industry	Project Development	Group functions	Eliminations	Group Segment	Differences in accounting 1) principles	Group IFRS
Allocation per external/internal
External sales	4,851	3,435	1,641	985	13		10,925	-100	10,825
Internal sales	466	233	642	6	333	-1,680	–		–
Total	5,317	3,668	2,283	991	346	-1,680	10,925	-100	10,825
Allocation per country
Sweden	4,094	3,219	1,798	826	272	-1,483	8,726	-115	8,611
Norway	651	449	58	99	37	-105	1,189	36	1,225
Finland	572		273	66	37	-92	856	-21	835
Denmark			151				151		151
Other			3				3		3
Total	5,317	3,668	2,283	991	346	-1,680	10,925	-100	10,825
Allocation per type of customer
Public sector	3,063	2,642	263	36	11		6,015		6,015
Private customers	1,788	793	1,378	949	2		4,910	-100	4,810
Internal customers	466	233	642	6	333	-1,680	–		–
Total	5,317	3,668	2,283	991	346	-1,680	10,925	-100	10,825
Allocation per point in time
At one point in time	14	3	1,130	118	13	-217	1,061	753	1,814
Over time	5,301	3,661	676	833	275	-1,102	9,644	-853	8,791
2) Rent revenue	2	4	477	40	58	-361	220		220
Total	5,317	3,668	2,283	991	346	-1,680	10,925	-100	10,825
Allocation per type of revenue
Construction contracts	5,301	3,661	676	833	9	-836	9,644	-853	8,791
Sales of goods			879			-150	729		729
Sales of property projects				108			108	753	861
Transportation services			217			-59	158		158
Administrative services					266	-266	–		–
2) Rent revenue	2	4	477	40	58	-361	220		220
Other	14	3	34	10	13	-8	66		66
Total	5,317	3,668	2,283	991	346	-1,680	10,925	-100	10,825

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)

								Differences in
Group Jan-Mar 2024 MSEK	Construction	Civil Engineering	Industry	Project Development	Group functions	Eliminations	Group Segment	accounting 1) principles	Group IFRS
Allocation per external/internal
External sales	5,087	3,340	1,650	1,049	15		11,141	309	11,450
Internal sales	701	218	761	6	314	-2,000	–		–
Total	5,788	3,558	2,411	1,055	329	-2,000	11,141	309	11,450
Allocation per country
Sweden	4,580	3,217	1,921	739	266	-1,806	8,917	-19	8,898
Norway	686	341	102	106	30	-127	1,138	315	1,453
Finland	522		249	210	33	-67	947	13	960
Denmark			137				137		137
Other			2				2		2
Total	5,788	3,558	2,411	1,055	329	-2,000	11,141	309	11,450
Allocation per type of customer
Public sector	2,858	2,579	257	3	12		5,709	-2	5,707
Private customers	2,229	761	1,393	1,046	3		5,432	311	5,743
Internal customers	701	218	761	6	314	-2,000	–		–
Total	5,788	3,558	2,411	1,055	329	-2,000	11,141	309	11,450
Allocation per point in time
At one point in time	17	5	1,179	513	14	-239	1,489	890	2,379
Over time	5,767	3,549	724	513	257	-1,362	9,448	-581	8,867
2) Rent revenue	4	4	508	29	58	-399	204		204
Total	5,788	3,558	2,411	1,055	329	-2,000	11,141	309	11,450
Allocation per type of revenue
Construction contracts	5,767	3,549	724	513	10	-1,115	9,448	-581	8,867
Sales of goods			896			-169	727		727
Sales of property projects				510			510	890	1,400
Transportation services			249			-61	188		188
Administrative services					247	-247	–		–
2) Rent revenue	4	4	508	29	58	-399	204		204
Other	17	5	34	3	14	-9	64		64
Total	5,788	3,558	2,411	1,055	329	-2,000	11,141	309	11,450

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)

Group Jan-Dec 2024 MSEK	Construction	Civil Engineering	Industry	Project Development	Group functions	Eliminations	Group Segment	Differences in accounting 1) 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)

Note 3 – Operating segment and reconciliation between segment reporting and reporting according to IFRS

Group Jan-Mar 2025		Civil		Project	Group		Group	Differences in accounting	Group
MSEK	Construction	Engineering	Industry	Development	functions	Eliminations	Segment	principles 1)	IFRS
External sales	4,851	3,435	1,641	985	13		10,925	-100	10,825
Internal sales	466	233	642	6	333	-1,680	-		-
Total revenue	5,317	3,668	2,283	991	346	-1,680	10,925	-100	10,825
Operating profit	111	114	-549	83	-56	19	-278	-4	-282
Operating margin, %	2.1	3.1	-24.0	8.4			-2.5		-2.6
Financial income							54		54
Financial expenses							-160	-13 2)	-173
Net finance							-106	-13	-119
Pre-tax profit							-384	-17	-401
Tax							33	1	34
Profit for the period							-351	-16	-367
Capital employed (closing balance)	-333	-485	9,735	18,435	321 3)		27,673	1,973	29,646
Total assets							42,722	2,497 4)	45,219
Equity							16,285	-284	16,001
Equity/assets ratio, %							38.1		35.4
Net debt							8,266	2,257	10,523
Cashflow before financing	287 5)	226 5)	-611 5)	269 5)	-534 6)		-363	-122	-485

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.

								Differences in
Group Jan-Mar 2024		Civil		Project	Group		Group	accounting	Group
MSEK	Construction	Engineering	Industry	Development	functions	Eliminations	Segment	principles 1)	IFRS
External sales	5,087	3,340	1,650	1,049	15		11,141	309	11,450
Internal sales	701	218	761	6	314	-2,000	-		-
Total revenue	5,788	3,558	2,411	1,055	329	-2,000	11,141	309	11,450
Operating profit	101	77	-479	246	-58	7	-106	94	-12
Operating margin, %	1.7	2.2	-19.9	23.3			-1.0		-0.1
Financial income							68		68
Financial expenses							-145	-10 2)	-155
Net finance							-77	-10	-87
Pre-tax profit							-182	83	-99
Tax							53	-10	43
Profit for the period							-129	73	-56
Capital employed (closing balance)	-986	-394	10,806	18,334	-39 3)		27,721	5,295	33,016
Total assets							43,949	4,941 4)	48,890
Equity							14,976	-495	14,481
Equity/assets ratio, %							34.1		29.6
Net debt							9,139	5,790	14,929
Cashflow before financing	162 5)	299 5)	-536 5)	151 5)	-294 6)		-218	199	-19

$^{^{1)}}$ For more information about the allocation of revenue and profit items see note 2 and the section Overview business areas.

^&lt;sup>2) Refers to IFRS 16, additional leases SEK -13 million.

^&lt;sup>3) Unallocated capital employed.

^&lt;sup>4) Divided between IFRS 16, additional leases SEK 1,329 million and housing projects SEK 1,168 million.

$^{^{5)} \ \}text{Refers to operating cash flow. For definition, see section Alternative performance measures and definitions.}$

²⁾ Refers to IFRS 16, additional leases SEK -10 million.

³⁾ Unallocated capital employed.

^&lt;sup>4) Divided between IFRS 16, additional leases SEK 1,424 million and housing projects SEK 3,517 million.

$^{^{5)} \ \}text{Refers to operating cash flow. For definition, see section Alternative performance measures and defintions.}$

⁶⁾ Unallocated cash flow.

								Differences in
Group Jan-Dec 2024 MSEK	Construction	Civil Engineering	Industry	Project Development	Group functions	Eliminations	Group	accounting principles 1)	Group IFRS
MJEK	Construction	Engineering	illuustry	Development	Tunctions	Etiminations	Segment	principles	IFKS
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.

^&lt;sup>2) Refers to IFRS 16, additional leases SEK -45 million.

³⁾ Unallocated capital employed.

^&lt;sup>4) Divided between IFRS 16, additional leases SEK 1,411 million and housing projects SEK 1,131 million.

⁵⁾ Refers to operating cash flow. For definition, see section Alternative performance measures and definitions.
6) Unallocated cash flow.

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		Mar 31, 2025			Mar 31, 2024			Dec 31, 2024
MSEK	Level 2	Level 3	Total	Level 2	Level 3	Total	Level 2	Level 3	Total
Financial assets
Securities held as fixed assets		45	45		45	45		45	45
Of which unlisted funds		4	4		4	4		4	4
Of which unlisted shares and participations		41	41		41	41		41	41
Other current receivables	27		27	18		18	10		10
Of which commodity hedging with futures	27		27	16		16	9		9
Of which currency derivatives			–	2		2	1		1
Total financial assets	27	45	72	18	45	63	10	45	55
Financial liabilities
Other current liabilities	10		10	40		40	1		1
Of which currency derivatives	6		6	1		1			–
Of which commodity hedging with futures	4		4	39		39	1		1
Total financial liabilities	10	–	10	40	–	40	1	–	1

The tables below are a reconciliation between the opening and closing balance for assets and liabilities included in level 3.

Securities held as fixed asset

	Unlisted funds
MSEK	Mar 31, 2025	Mar 31, 2024	Dec 31, 2024	Mar 31, 2025	Mar 31, 2024	Dec 31, 2024
Opening balance	4	5	5	41	41	41
Investments	1
Dividends received	-1	-1	-1
Closing balance	4	4	4	41	41	41

Group		Contingent consideration
MSEK	Mar 31, 2025	Mar 31, 2024	Dec 31, 2024
Opening balance	–	6	6
Payments during the period		-6	-6
Closing balance	–	–	–

Future financial information

Quarterly report January – June 2025 July 15, 2025 •

Quarterly report January – September 2025 October 24, 2025 •

Year-end report January – December 2025 February 4, 2026 •

Annual and Sustainability Report 2025 April, 2026 •

Förslöv, May 6, 2025

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 Tuesday May 6, 2025 at 02.00 p.m. by the President and CEO Jesper Göransson and CFO Niclas Winkvist. The presentation will be held in Swedish and is available viahttps://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/q1-report-2025

Participate via telephone conference:

https://financialhearings.com/event/51889

For further information, please contact:

Jesper Göransson, President and CEO of Peab, is reached through Juha Hartomaa, Head of Investor Relations Peab, +46 725 33 31 45

This information is information that Peab AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at May 6, 2025, 01:00 p.m. CET.

Quarterly data

Group, IFRS

MSEK	Jan-Mar 2025	Oct-Dec 2024	Jul-Sep 2024	Apr-Jun 2024	Jan-Mar 2024	Oct-Dec 2023	Jul-Sep 2023	Apr-Jun 2023	Jan-Mar 2023
Net sales	10,825	17,185	15,720	16,928	11,450	17,365	15,159	16,098	12,978
Production costs	-10,415	-14,939	-14,174	-15,281	-11,008	-16,139	-13,765	-14,141	-12,138
Gross profit	410	2,246	1,546	1,647	442	1,226	1,394	1,957	840
Sales and administrative expenses	-783	-932	-613	-885	-759	-843	-600	-867	-854
Other operating income	114	47	46	60	329	91	100	124	42
Other operating costs	-23	8	13	-8	-24	-3	17	-17	-21
Operating profit	-282	1,369	992	814	-12	471	911	1,197	7
Financial income	54	66	66	59	68	61	56	431	36
Financial expenses	-173	-150	-170	-167	-155	-173	-198	-125	-88
Net finance	-119	-84	-104	-108	-87	-112	-142	306	-52
Pre-tax profit	-401	1,285	888	706	-99	359	769	1,503	-45
Tax	34	-171	-154	-110	43	-148	-145	-315	10
Profit for the period	-367	1,114	734	596	-56	211	624	1,188	-35
Profit for the period, attributable to:
Shareholders in parent company	-373	1,121	732	596	-57	211	623	1,189	-35
Non-controlling interests	6	-7	2	0	1	0	1	-1	0
Profit for the period	-367	1,114	734	596	-56	211	624	1,188	-35
Key ratios, IFRS
Earnings per share before and after dilution, SEK	-1.30	3.90	2.54	2.08	-0.20	0.74	2.17	4.13	-0.12
Average number of outstanding shares, million	287.5	287.5	287.5	287.5	287.5	287.5	287.5	287.5	287.5
Capital employed (CB)	29,646	30,878	30,526	31,962	33,016	32,888	35,805	36,442	33,831
Equity (CB)	16,001	16,504	15,316	14,666	14,481	14,470	14,405	13,780	13,652

MSEK	Jan-Mar 2025	Oct-Dec 2024	Jul-Sep 2024	Apr-Jun 2024	Jan-Mar 2024	Oct-Dec 2023	Jul-Sep 2023	Apr-Jun 2023	Jan-Mar 2023
Net sales
Construction	5,317	6,541	5,130	6,358	5,788	7,029	5,789	7,540	7,422
Civil Engineering	3,668	4,893	3,810	4,278	3,558	4,454	3,491	3,891	3,328
Industry	2,283	5,576	7,528	6,033	2,411	5,056	6,780	5,347	2,779
Project Development	991	1,737	758	720	1,055	1,456	856	1,569	1,841
– of which Property Development	57	636	6	21	23	453	7	65	9
– of which Housing Development	934	1,101	752	699	1,032	1,003	849	1,504	1,832
Group functions	346	343	333	345	329	377	343	390	377
Eliminations	-1,680	-2,305	-2,020	-2,502	-2,000	-2,733	-2,523	-2,981	-3,057
Group, segment reporting	10,925	16,785	15,539	15,232	11,141	15,639	14,736	15,756	12,690
Adjustment of housing to IFRS	-100	400	181	1,696	309	1,726	423	342	288
IFRS 16, additional leases
Group, IFRS	10,825	17,185	15,720	16,928	11,450	17,365	15,159	16,098	12,978
Operating profit
Construction	111	96	96	123	101	-358	96	141	162
Civil Engineering	114	140	117	165	77	180	110	152	59
Industry	-549	597	848	449	-479	476	588	333	-435
Project Development	83	521	-6	-33	246	17	46	114	127
– of which Property Development	49	533	8	21	261	63	21	29	-6
– of which Housing Development	34	-12	-14	-54	-15	-46	25	85	133
Group functions	-56	-142	-62	-79	-58	-159	-33	-34	-73
Eliminations	19	43	2	-6	7	-23	-21	-16	4
Group, segment reporting excl. MoS	-278	1,255	995	619	-106	133	786	690	-156
Construction – effect MoS								400
Group, segment reporting	-278	1,255	995	619	-106	133	786	1,090	-156
Adjustment of housing to IFRS	-16	103	-14	190	85	330	115	98	153
IFRS 16, additional leases	12	11	11	5	9	8	10	9	10
Group, IFRS	-282	1,369	992	814	-12	471	911	1,197	7
Operating margin, %
Construction	2.1	1.5	1.9	1.9	1.7	-5.1	1.7	1.9	2.2
Civil Engineering	3.1	2.9	3.1	3.9	2.2	4.0	3.2	3.9	1.8
Industry	-24.0	10.7	11.3	7.4	-19.9	9.4	8.7	6.2	-15.7
Project Development	8.4	30.0	-0.8	-4.6	23.3	1.2	5.4	7.3	6.9
– of which Property Development	86.0	83.8	133.3	100.0	1,134.8	13.9	300.0	44.6	-66.7
– of which Housing Development	3.6	-1.1	-1.9	-7.7	-1.5	-4.6	2.9	5.7	7.3
Group functions
Eliminations
Group, segment reporting excl. MoS	-2.5	7.5	6.4	4.1	-1.0	0.9	5.3	4.4	-1.2
Group, segment reporting	-2.5	7.5	6.4	4.1	-1.0	0.9	5.3	6.9	-1.2
Adjustment of housing to IFRS
IFRS 16, additional leases Group, IFRS	-2.6	8.0	6.3	4.8	-0.1	2.7	6.0	7.4	0.1
Key ratios, segment reporting, MSEK
Earnings per share before and after dilution excl. MoS, SEK	-1.24	3.63	2.59	1.48	-0.45	-0.25	1.85	1.68	-0.54
Earnings per share before and after dilution, SEK	-1.24	3.63	2.59	1.48	-0.45	-0.25	1.85	3.86	-0.54
Capital employed (CB)	27,673	28,999	27,537	28,719	27,721	27,639	29,072	29,406	25,910
Equity (CB)	16,285	16,760	15,650	14,992	14,976	15,082	15,239	14,770	14,687
Orders received	16,574	12,052	10,135	16,434	17,889	10,527	11,034	12,505	11,042

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/Earnings per share excl. MoS, 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. Earnings per share excl. MoS are calculated excluding the effect of arbitration decision concerning Mall of Scandinavia. For details, see Annual and Sustainability Report 2024.

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 margin excl. MoS

Operating profit as a percentage of net sales. Shows profitability in the business. Operating margin excl. MoS is calculated excluding the effect of arbitration decision concerning Mall of Scandinavia. For details, see Annual and Sustainability Report 2024.

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.

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 58 billion

Employees, appr.

13,000

Four

Business areas

Construction Civil Engineering Industry Project Development

Peab is the Nordic Community Builder with some 13,000 employees and net sales of approximately SEK 58 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

peab.com

Photographers: Bert Leandersson, Johan Marklund, Johannes Myllymäki, Mats Bakken, Samuel Unéus, Semren Månsson and Sofia Hafström. 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.