EL7.AI
StocksMedium•31 October 2026•
3 min read

Peab lifts quarterly sales to SEK 16,304 million and improves operating margin

Key Facts

1Net sales were SEK 16,304 million in July–September 2026, compared with SEK 15,602 million a year earlier.
2Operating profit rose to SEK 1,296 million, and the operating margin improved to 7.9%.
3New orders totaled SEK 9,405 million, compared with SEK 10,223 million in the corresponding period.
4Net debt was SEK 7,212 million at the end of September, compared with SEK 7,991 million a year earlier.

Peab reported third-quarter 2026 results on October 28, posting net sales of SEK 16,304 million, compared with SEK 15,602 million in the same period a year earlier. Operating profit rose to SEK 1,296 million from SEK 1,148 million, while the operating margin improved to 7.9% from 7.4%. Profit before tax was SEK 1,226 million, compared with SEK 1,067 million a year earlier. Earnings per share under the segment reporting basis were SEK 3.67, compared with SEK 3.01 in the third quarter of 2025. Chief Executive Jesper Göransson said operating profit and the margin improved in all four of the company's business areas during the quarter. The company's announcement does not cite analyst expectations or an earnings surprise percentage.

The improvement in operating profit came alongside higher sales than a year earlier, while the value of new orders fell. Orders received by the company totaled SEK 9,405 million in July–September, compared with SEK 10,223 million in the corresponding period of 2025. The comparison highlights a divergence between work executed during the quarter and the flow of new orders. Meanwhile, the order backlog rose to SEK 52,439 million at the end of September, from SEK 48,279 million a year earlier. The backlog provides a picture of the company's accumulated work at the end of the period, alongside the latest figure for incoming orders. The combination of a growing backlog and lower quarterly orders is one of the activity indicators to watch in upcoming results.

Cash flow before financing was SEK 1,900 million in the quarter, compared with SEK 2,792 million in the third quarter of last year. Göransson said strong cash flow contributed to a reduction in the net debt-to-equity ratio, alongside improved operating profit and margins in all four business areas. At the end of September, net debt was SEK 7,212 million, compared with SEK 7,991 million a year earlier. The net debt-to-equity ratio fell to 0.4 from 0.5 in the comparison period. The period-end figures show declines in both net debt and the ratio, despite lower year-on-year cash flow before financing during the quarter. This places developments in liquidity and debt alongside profitability and the order backlog in assessing the company's performance.

The quarter's comparison centers on growth in sales and operating profit and an improved margin, against declines in new orders and cash flow before financing from year-earlier levels. Under the segment reporting basis, earnings per share rose to SEK 3.67 from SEK 3.01. The company also reports a different earnings-per-share figure under IFRS, so each figure should be tied to its measurement basis. The company's published materials do not support the claim that earnings came in 18% below analyst expectations, and do not provide the revenue or earnings-per-share growth forecasts included in the initial draft. Peab published its interim report for January to September on October 28, 2026, with the financial-year report for January to December scheduled for February 3, 2027. The annual report will provide a later update on the company's performance following the third-quarter figures.