Peab (PEAB) Q4 2025 earnings summary

Executive summary

• Stable market outlook in the Nordic construction and civil engineering sectors, with strong performance in contracting and Swerock/Asphalt operations.

• Net sales for 2025 were SEK 58,589 million, nearly unchanged year-over-year, with a stable order backlog and strong cash flow before financing.

• Operating profit declined to SEK 2,626 million from SEK 2,763 million, with an operating margin of 4.5% versus 4.7% last year.

• The Board proposes a dividend of SEK 3.30 per share, representing 70% of profit for the year, exceeding the target of 50%, to be paid in two installments.

• Net debt decreased significantly to SEK 6,400 million, and the net debt/equity ratio improved to 0.4.

Financial highlights

• Q4 2025 net sales rose 2% to SEK 17,125 million; operating profit fell to SEK 996 million from SEK 1,255 million, with a margin of 5.8% (7.5%).

• Full-year pre-tax profit was SEK 1,674 million, down from SEK 2,425 million, impacted by a SEK -611 million settlement related to Mall of Scandinavia.

• Earnings per share for 2025 were SEK 4.66 (7.25); return on equity was 8.3% (13.3%).

• Cash flow before financing improved to SEK 4,119 million (2,601); net debt reduced by SEK 2.7 billion year-over-year.

• Lower net debt at year-end, with net debt/equity ratio within the target range of 0.3–0.7.

Outlook and guidance

• The Nordic construction and civil engineering markets are expected to grow in 2026, supported by government infrastructure investments and a stabilizing housing market.

• Housing investments expected to increase from a low level in the coming years across Sweden, Norway, and Finland.

• Civil engineering investments to remain at a high level, with stable total construction and civil engineering investments in the Nordic market.

• Lower interest rates and regulatory easing are anticipated to support housing demand, though regional differences persist.

• The company is well-positioned to capitalize on public sector and infrastructure opportunities.