Peab (PEAB) investor relations material

Executive summary

• Net sales increased to 16,778 MSEK in Q2 2026 from 14,937 MSEK in Q2 2025, with operating profit rising to 925 MSEK from 760 MSEK year-over-year.

• Operating margin improved to 5.5% from 5.1% year-over-year.

• Orders received and order backlog reached record highs, driven by strong public sector demand and major new contracts.

• All business areas contributed to growth, with Construction and Civil Engineering showing robust profitability and Industry rebounding from prior deficits.

• Housing Development saw higher operating profit in Q2 due to more production starts, though overall H1 sales declined due to fewer ongoing projects.

Financial highlights

• Group operating margin for the rolling 12 months reached 4.8%, up from 4.5% in the prior period.

• Cash flow before financing improved to 2,792 MSEK in Q2 2026, compared to -95 MSEK in Q2 2025.

• Net debt/equity ratio reduced to 0.5, within the target range of 0.3–0.7.

• Pre-tax profit for H1: SEK 619m (-327); EPS: SEK 1.85 (-1.04).

• H1 2026 net sales: SEK 27,549m (25,862); operating profit: SEK 769m (482); margin: 2.8% (1.9%).

Outlook and guidance

• Market outlook for the Nordic construction and civil engineering sector remains stable, with continued high investment in civil engineering and public sector projects.

• Market demand remains strong in all segments except housing and commercial offices.

• Housing investments are expected to increase from low levels, particularly in Sweden, though Norway and Finland lag behind.

• Stable investment levels anticipated across the Nordic market.

• Operating margin target remains above 6%; current rolling 12-month margin is 4.8%.