The company is forecasting stability in the Nordic construction market. Credit: Peter Ekvall via Shutterstock.

Peab, a Nordic construction company, has reported an increase in net sales, profits, and cash flow for the third quarter (Q3) of 2024.

The company’s net sales reached Skr15.54bn ($1.46bn), up 5% from Skr14.74bn in the same period last year. Peab’s Construction segment saw an 11% drop in net sales for the quarter to Skr5.130bn due to less activity in new housing production.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

This growth is reflected in the company’s operating profit, which rose to Skr995m, marking an increase from Skr786m, and a higher operating margin of 6.4% compared to 5.3% in the previous year.

The company’s pretax profit for Q3 2024 stood at Skr902m, a notable rise from Skr654m. Earnings per share also increased to Skr2.59 from Skr1.85.

Orders received during the quarter amounted to Skr10.14bn, a decrease from Skr11.03bn while cash flow before financing improved dramatically to Skr1.20bn from Skr450m.

See Also:

For the period of January to September 2024, Peab’s net sales were Skr41.91bn, a 3% decrease from Skr43.18bn in the previous year, attributed to the weak demand in the housing market.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Operating profit for this nine-month period was Skr1.51bn, down from Skr1.72bn in the corresponding period last year. The operating margin also saw a reduction to 3.6% from 4.0%.

The company’s order backlog as of September 2024 was a healthy Skr47.03bn, up from Skr41.67bn, indicating a strong pipeline for future revenue.

The company’s net debt decreased to Skr8.44bn in the nine-month period from Skr10.17bn previously, with the net debt/equity ratio improving to 0.5 from 0.7, reflecting a stronger balance sheet. The reduction in net debt resulted from a decrease in working capital and lower investments in the industrial sector.

Looking at the market and future prospects, Peab expects the Nordic construction markets to remain stable, with the civil engineering markets in particular maintaining high levels.

Meanwhile, the region’s housing markets are anticipated to experience a weak recovery in the coming year due to lower interest rates.

Peab president and CEO Jesper Göransson said: “Peab reports higher net sales, strong profits and improved cash flow for the third quarter. Operations in civil engineering and paving continue to grow with profitability.

“Once again, we give proof of how well our four business areas complement each other and enable us to take advantage of the demand in our markets.”