Peab (PEAB) Q4 2024 earnings summary

Executive summary

• Strong finish to 2024 with improved profits, robust cash flow, and a record order backlog, driven by robust demand in civil engineering and paving, while housing markets remained weak; all four business areas contributed, with Civil Engineering and Industry showing particularly strong performance.

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

• Orders received increased by 25% to SEK 56,510 million, and the order backlog reached SEK 56.5 billion, driven by major infrastructure projects.

• Strong cash flow for both the quarter and full year.

• Board proposes a dividend of SEK 2.75 per share, up from SEK 1.50, to be paid in two installments.

Financial highlights

• Net sales for 2024 were SEK 58,697 million, nearly flat compared to SEK 58,821 million in 2023; Q4 net sales were SEK 16,785 million, up 7% year-over-year.

• Operating profit for 2024 was SEK 2,763 million (2023: SEK 1,853 million); Q4 operating profit was SEK 1,255 million (Q4 2023: SEK 133 million).

• Operating margin improved to 4.7% from 3.2% year-over-year.

• Earnings per share for 2024 were SEK 7.25 (2023: SEK 4.92); return on equity was 13.3% (2023: 9.5%).

• Cash flow before financing improved to SEK 2,601 million (2023: -1,317 million); net debt increased to SEK 9,118 million (2023: SEK 8,676 million).

Outlook and guidance

• Civil engineering and paving markets expected to remain strong, while housing investments are projected to increase from low levels in coming years as lower interest rates take effect.

• Stable investment levels anticipated in the Nordic construction and civil engineering markets; other building construction is expected to be more diversified.

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