Peab (PEAB) Q4 2024 earnings summary

Executive summary

• Strong finish to 2024 with robust demand in infrastructure and paving, improved profits, and a record order backlog; all business areas contributed, with Civil Engineering and Industry showing particularly strong performance.

• Net sales for 2024 were SEK 58,697m, operating profit rose to SEK 2,763m, and the operating margin improved to 4.7% year-over-year.

• Orders received increased by 25% to SEK 56,510m, and the order backlog reached SEK 44,906m, driven by major infrastructure projects.

• Board proposes a dividend of SEK 2.75 (1.50) per share, split into two payments, reflecting improved financial performance.

Financial highlights

• Net sales for 2024: SEK 58,697m (58,821m in 2023); Q4: SEK 16,785m (15,639m).

• Operating profit for 2024: SEK 2,763m (1,853m); Q4: SEK 1,255m (133m).

• Earnings per share for 2024: SEK 7.25 (4.92); return on equity: 13.3% (9.5%).

• Cash flow before financing improved to SEK 2,601m (2023: -1,317m); Q4 cash flow before financing: SEK 1,719m.

• Net debt increased to SEK 9.1bn (8.7bn), impacted by acquisitions; equity/assets ratio improved to 37.1% (34.0%).

Outlook and guidance

• Infrastructure and paving markets expected to remain strong; residential investments to increase from a low base as housing markets recover in 2025.

• Civil engineering investments forecast to remain stable at a high level; Nordic market investment levels stable.

• Diversified business model positions company to benefit from demand across segments and geographies.

• Next report scheduled for Q1 2025 on May 6, 2025.