Peab (PEAB) Q3 2024 earnings summary

Executive summary

• Revenue increased to 15,539 Mkr in Q3 2024, up 5% year-over-year, with operating profit rising to 995 Mkr and improved cash flow before financing at 1,195 Mkr.

• Civil Engineering and Industry segments delivered strong growth and profitability, offsetting continued weakness in Construction, Project Development, and housing markets.

• Order backlog reached 47,026 Mkr, supported by robust public sector demand and infrastructure investments.

• Cash flow improved significantly, and net debt was reduced to 8,439 Mkr during the quarter.

• Public sector customers now account for 54% of revenue, up from 47% previously.

Financial highlights

• Q3 2024 net sales: 15,539 Mkr (up 5%); operating profit: 995 Mkr (up from 786 Mkr); operating margin: 6.4% (5.3%).

• Cash flow before financing for Q3: 1,195 Mkr (450); net debt/equity ratio: 0.5 (0.7 year-over-year).

• Group order backlog reached 47,026 Mkr, up from 41,669 Mkr a year earlier.

• Earnings per share for Q3: 2.59 (1.85); for nine months: 3.62 (5.17).

• Return on capital employed in Industry: 11.9% (up from 6.8%).

Outlook and guidance

• Civil engineering and infrastructure markets expected to remain strong, while residential and office construction will likely stay subdued.

• Public sector demand and infrastructure investments continue to support order intake.

• Nordic construction investment levels projected to be stable overall, with robust infrastructure activity and weak residential investment.