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Peab AB (OSTO:PEAB B) Gross Margin % : 11.25% (As of Jun. 2025)


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What is Peab AB Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Peab AB's Gross Profit for the three months ended in Jun. 2025 was kr1,694 Mil. Peab AB's Revenue for the three months ended in Jun. 2025 was kr15,063 Mil. Therefore, Peab AB's Gross Margin % for the quarter that ended in Jun. 2025 was 11.25%.

Warning Sign:

Peab AB gross margin has been in long-term decline. The average rate of decline per year is -3%.


The historical rank and industry rank for Peab AB's Gross Margin % or its related term are showing as below:

OSTO:PEAB B' s Gross Margin % Range Over the Past 10 Years
Min: 7.27   Med: 9.56   Max: 10.64
Current: 10.03


During the past 13 years, the highest Gross Margin % of Peab AB was 10.64%. The lowest was 7.27%. And the median was 9.56%.

OSTO:PEAB B's Gross Margin % is ranked worse than
79.03% of 1693 companies
in the Construction industry
Industry Median: 20.78 vs OSTO:PEAB B: 10.03

Peab AB had a gross margin of 11.25% for the quarter that ended in Jun. 2025 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Peab AB was -3.00% per year.


Peab AB Gross Margin % Historical Data

The historical data trend for Peab AB's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Peab AB Gross Margin % Chart

Peab AB Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.26 10.01 9.02 8.83 9.60

Peab AB Quarterly Data
Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.73 9.83 13.07 3.79 11.25

Competitive Comparison of Peab AB's Gross Margin %

For the Engineering & Construction subindustry, Peab AB's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Peab AB's Gross Margin % Distribution in the Construction Industry

For the Construction industry and Industrials sector, Peab AB's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Peab AB's Gross Margin % falls into.


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Peab AB Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Peab AB's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=5881 / 61283
=(Revenue - Cost of Goods Sold) / Revenue
=(61283 - 55402) / 61283
=9.60 %

Peab AB's Gross Margin for the quarter that ended in Jun. 2025 is calculated as


Gross Margin % (Q: Jun. 2025 )=Gross Profit (Q: Jun. 2025 ) / Revenue (Q: Jun. 2025 )
=1694 / 15063
=(Revenue - Cost of Goods Sold) / Revenue
=(15063 - 13369) / 15063
=11.25 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Peab AB  (OSTO:PEAB B) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Peab AB had a gross margin of 11.25% for the quarter that ended in Jun. 2025 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Peab AB Gross Margin % Related Terms

Thank you for viewing the detailed overview of Peab AB's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Peab AB Business Description

Traded in Other Exchanges
Address
Margretetorpsvagen 84, Forslov, SWE, SE-269 73
Peab AB is a Sweden-based construction and civil engineering company. It builds offices around the region and contributes to all stages of construction. Many projects are related to housing, transportation, commercial property, and building materials. It operates in four business areas: Construction, Civil Engineering, Industry, and Project Development. It uses technical expertise and input from customers to complete projects and deliver customized solutions. The majority of sales come from Sweden.

Peab AB Headlines

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