Friday, 8 May 2026
Swedish construction and development group Skanska reported stable first-quarter results for 2026, supported by resilient infrastructure demand, strong activity in Central Europe and continued momentum in advanced technology-related construction projects.
The company posted revenue of SEK 38 billion for the first quarter, compared with SEK 42.3 billion a year earlier. Adjusted for currency effects, revenue declined by 1 percent, while operating income increased 18 percent in local currencies to SEK 1.1 billion. Earnings per share rose slightly to SEK 2.42 from SEK 2.40.
Construction remained the dominant contributor to the group’s business, accounting for 84 percent of revenue on a rolling 12-month basis. The division generated operating income of SEK 1.1 billion with a 3 percent operating margin, while the rolling 12-month margin reached 4.2 percent, above the company’s long-term target of 4 percent.
Skanska highlighted continued strength in infrastructure and technology-related projects, particularly in the United States. During the quarter, the company secured major contracts including a SEK 3.4 billion office development in London for British Land and GIC, a SEK 2.9 billion bridge project for the California Department of Transportation, as well as several data centre and semiconductor facility assignments in the US.
The order backlog in Construction increased to SEK 267.5 billion, equivalent to 19 months of production, reflecting sustained demand for infrastructure and technology-linked facilities. The rolling 12-month book-to-build ratio stood at 107 percent.
In Residential Development, Central Europe delivered strong sales and profitability, supported by resilient housing markets in Poland and Czechia. Skanska launched a new residential project in Prague during the quarter and acquired additional land in Warsaw as part of efforts to replenish its development pipeline.
The residential division generated operating income of SEK 92 million, up from SEK 63 million a year earlier, while the operating margin improved to 6.6 percent from 4.2 percent. However, Nordic residential markets remained subdued due to weaker consumer demand and slower sales activity.
Skanska’s Commercial Property Development business also returned to profitability. The company divested two projects during the quarter, including one in Romania and another in Sweden. Operating income improved to SEK 71 million compared with a loss of SEK 100 million in the corresponding period last year.
The company stated that estimated market value at completion for its commercial property portfolio reached SEK 50 billion, representing unrealized gains of approximately SEK 4.9 billion. Four previously sold projects were handed over to buyers during the quarter.
Investment Properties remained stable, with the portfolio valued at SEK 8.3 billion and an economic occupancy rate of 84 percent. Skanska reiterated its ambition to expand this portfolio to between SEK 12 billion and SEK 18 billion, focusing on sustainable office assets in Sweden’s largest cities.
Chief Executive Anders Danielsson said the group entered 2026 with a “robust balance sheet” and a clear commercial focus, although geopolitical developments in the Middle East were creating uncertainty around inflation, energy prices and construction input costs. He noted that Skanska had not experienced material supply chain disruptions during the quarter but continued monitoring the situation closely.
The company also reported continued progress on sustainability targets. Combined scope 1 and 2 carbon emissions declined to 137,000 tonnes on a rolling 12-month basis, representing a 66 percent reduction compared with 2015 levels. Renewable electricity usage across the group reached 100 percent.
Despite a negative operating cash flow of SEK 1.3 billion during the quarter, mainly linked to investments in Residential Development, Skanska maintained a strong financial position with adjusted interest-bearing net receivables of SEK 9.5 billion and available liquidity of SEK 27.7 billion.
The company also announced the sale of its 50 percent stake in the I-4 Ultimate project in Orlando, Florida, for approximately USD 75 million, with the transaction expected to be recorded in the second quarter of 2026.
Source: Skanska
