PEAB3F

What it is

Peab AB — originally Paulsson Entreprenad AktieBolag — is a construction and civil engineering company headquartered in Förslöv, Scania, listed on Nasdaq OMX Stockholm. It builds homes, roads, tunnels, bridges, and industrial facilities across Sweden, Norway and Finland, operating through four segments: Construction, Civil Engineering, Industry (materials such as concrete, asphalt and gravel), and Project Development (housing and commercial property).

Peab is the “Nordic Community Builder” with 13,000 employees and net sales of SEK 59 billion — roughly $5.7B — making it one of Scandinavia’s largest contractors by revenue. The PEAB3F code on B3 is a Brazilian Depositary Receipt (BDR) — a certificate representing shares of a foreign company that Brazilians can trade locally, without needing to open a foreign brokerage account.

Who owns it

As of 31 December 2024, Ekhaga Utveckling AB is the largest owner with a capital share of 21.6% and 49.0% of voting rights. Ekhaga is the Paulsson family holding vehicle — controlling almost half the votes from just over a fifth of the capital, a classic dual-class share structure.

AB Axel Granlund follows with a capital share of 6.8% and 5.5% of votes; thereafter Mats and Fredrik Paulsson with families, holding 5.5% of the capital and 11.2% of votes.

The founding family therefore commands roughly 60% of effective voting power while owning around 27% of the economic capital — meaning no strategic decision happens without their consent. Peab’s Profit-Sharing Foundation holds 4.7% of the capital, with Vanguard at 2.4% and Dimensional Fund Advisors at 2.1%.

Who runs it

Jesper Göransson is President and CEO of Peab AB. He has worked at Peab since 1996 and has long experience in leading positions, including Deputy CEO, and has been a member of Peab’s executive management since 2006.

The CFO is Niclas Winkvist, who presents results alongside Göransson.

The Board Chairman is Lars Sköld, born 1950, elected 2007, with a Master of Laws qualification. During 2024, executive management consisted of eight persons: the President and CEO, the CFO, COO, CCO, CSO and the business area managers of Construction, Civil Engineering and Project Development.

The money, in plain words

Full-year 2024 revenue was SEK 61.3B (~$5.9B), essentially flat on 2023; net income was SEK 2.39B (~$230M), up 20% from 2023; net profit margin was 3.9%, up from 3.2% in 2023. Construction is a low-margin business everywhere — keeping under 4 cents of profit from every crown of sales is normal for the sector, and Peab’s improvement from 3.2% to 3.9% is genuine progress.

Return on equity was 13.3% — for every crown of shareholders’ equity in the business, Peab earned 13 cents back in the year, a respectable figure for a capital-intensive contractor. Operating profit for 2024 was SEK 2,763M and the operating margin was 4.7%; during the year, business area Project Development carried out two major transactions that contributed a total of SEK 620M to the Group.

Net debt stood at SEK 11,253M IFRS (~$1.1B), with a net debt-to-equity ratio of 0.5 — comfortably within the company’s own 0.3–0.7 target band.

What it is doing now

Third-quarter 2025 results showed earnings per share of SEK 2.89 (up from SEK 2.55 a year earlier) on revenue of SEK 15.4B, which fell 2.3% year-on-year; net income was SEK 829M, up 13%. The pattern is improving profitability on modest revenue — the housing market remains slow across the Nordic region, but infrastructure work is compensating.

Full-year 2025 EPS estimates have been revised down to SEK 5.08 from SEK 5.90, though revenue is forecast steady at SEK 60B.

At its Annual General Meeting held on May 6, 2025, Peab approved a dividend of SEK 2.75 per share for financial year 2024, to be distributed in two instalments. The trailing dividend yield is approximately 3.4% — in line with Nordic construction-sector peers.

What to watch

• Housing recovery: Peab’s single biggest drag in 2024–25 has been a weak Nordic housing market; the pace of interest-rate cuts in Sweden and Finland will directly set how fast new home starts recover.
• Order backlog: The net debt/equity ratio at the end of the year was 0.5; the order backlog reached SEK 44,906M (~$4.3B) at end-2024 — a healthy cushion of future work, but execution risk is real on large public-sector contracts like the New Bodø Airport project.
• Paulsson family succession: Transition toward the next generation and professional management continued after Erik Paulsson stepped back from active board roles. How the family manages its 49% voting block as Fredrik Paulsson takes over is the long-run governance question.
• BDR liquidity: PEAB3F is an unsponsored Level I BDR — a thin, lightly traded certificate. Brazilian holders should expect wide bid-offer spreads and limited local price discovery; the real price action happens on Nasdaq Stockholm.

This is news, not investment advice.

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