Peab (PEAB) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were SEK 10,925m, a slight decrease year-over-year, with operating result at SEK -278m and margin -2.5%.

• Orders received remained high at SEK 16,574m, and order backlog increased to SEK 51,955m.

• Civil Engineering showed strong performance, while Construction and Project Development were impacted by a cautious housing market.

• Net debt decreased to SEK 8.8bn, with net debt/equity ratio at 0.5, within target range.

• Diversified business model and increased public sector share (56% of sales) provided resilience.

Financial highlights

• Net sales declined 2% year-over-year; operating result fell to SEK -278m from SEK -106m.

• Rolling 12-month operating margin at 4.4%, below the >6% target.

• Cash flow before financing was negative, reflecting seasonal effects.

• Equity/assets ratio improved to 38.1% from 34.1% year-over-year.

• Net debt/equity ratio: 0.5 (target 0.3–0.7).

Outlook and guidance

• Nordic construction and civil engineering markets expected to remain stable, with civil engineering investments set to rise.

• Housing markets anticipated to improve as interest rates fall, though at a slower pace.

• Diversified business areas position the group to benefit from varied demand.