Peab (PEAB) Q1 2025 earnings summary

Executive summary

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

• Orders received remained high at SEK 16,574 million, and order backlog increased to SEK 51,955 million, supporting future revenue.

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

• Net debt decreased to SEK 5.4B (segment) and SEK 8,266 million (IFRS), with net debt/equity ratio at 0.5.

• High order intake and risk diversification continue to support stability.

Financial highlights

• Group net sales: SEK 10,925M in Q1 2025 vs SEK 11,141M in Q1 2024; operating profit: SEK -278M vs SEK -106M; margin -2.5% vs -1.0%.

• Cash flow before financing: SEK -908M (segment), SEK -363M (IFRS), reflecting seasonal effects.

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

• Net sales under IFRS were SEK 10,825 million, with an operating profit of SEK -282 million.

• Earnings per share before and after dilution were SEK -1.24.

Outlook and guidance

• Housing investments expected to increase from a low base in Sweden, Norway, and Finland through 2027.

• Civil engineering investments to remain high and stable across the Nordic region, with growth expected in 2025.

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

• Total construction and civil engineering investments projected to be stable.

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