Peab (PEAB) Q2 2025 earnings summary

Executive summary

• Net sales for H1 2025 decreased to SEK 25,862 million from SEK 26,373 million, with Q2 2025 net sales at SEK 14,937 million, down from SEK 15,232 million year-over-year.

• Operating profit for Q2 2025 rose to SEK 760 million from SEK 619 million, and operating margin improved to 5.1% from 4.1% year-over-year.

• Order backlog increased to SEK 51,757 million, with 59% allocated after the current financial year.

• Settlement of the Mall of Scandinavia dispute resulted in a SEK 611 million charge to net financial items, impacting pre-tax profit.

• Net debt remained stable at SEK 9,525 million, with a net debt/equity ratio of 0.6.

Financial highlights

• Q2 2025 net sales: SEK 14,937 million (down from SEK 15,232 million); operating profit: SEK 760 million (up from SEK 619 million); pre-tax profit: SEK 57 million (down from SEK 522 million).

• H1 2025 net sales: SEK 25,862 million (down from SEK 26,373 million); operating profit: SEK 482 million (down from SEK 513 million); pre-tax profit: SEK -327 million (down from SEK 340 million).

• Cash flow before financing for Q2 2025 was SEK 1,462 million (up from SEK -95 million), but for H1 2025 was SEK -923 million (down from SEK -313 million), mainly due to increased working capital.

• Earnings per share for H1 2025: SEK -1.04 (down from SEK 1.03).

• IFRS net sales for H1 2025: SEK 25,888 million (down from SEK 28,378 million); IFRS operating profit: SEK 508 million (down from SEK 802 million).

Outlook and guidance

• Macroeconomic recovery is slower than expected, but a turnaround is anticipated in H2 2025, with improved financial growth and gradual recovery in housing markets as interest rates fall.

• Civil engineering investments remain high, with continued public sector investment in infrastructure and energy projects.

• Housing market activity remains subdued, but production starts are expected to increase as projects near completion and interest rates decline.

• Varying investment levels projected in premise construction across the region.