Thursday, 6 November 2025
Swedish construction and development group Skanska AB reported a robust third quarter of 2025, supported by strong Construction margins, improved profitability in Residential Development, and continued progress on sustainability goals.
Group revenue totalled SEK 43.7 billion (≈ EUR 3.77 billion), compared to SEK 42.8 billion (≈ EUR 3.69 billion) in the same quarter last year. Adjusted for currency effects, this represented an 8 percent increase. Operating income rose by 13 percent to SEK 1.4 billion (≈ EUR 121 million), while earnings per share climbed to SEK 3.07 (≈ EUR 0.26) from SEK 2.28 (≈ EUR 0.20) in Q3 2024.
Although order bookings in Construction fell to SEK 39.9 billion (≈ EUR 3.44 billion) from SEK 50.8 billion (≈ EUR 4.39 billion)** year-on-year, Skanska maintained a strong order backlog of SEK 264 billion (≈ EUR 22.8 billion) — equivalent to around 19 months of production. The Construction segment’s operating margin reached 4.2 percent, exceeding the company’s 3.5 percent target.
In Project Development, operating income stood at SEK –0.3 billion (≈ – EUR 26 million), reflecting property impairments of SEK 0.7 billion (≈ EUR 60 million) in the US. Residential Development returned to profit, achieving SEK 131 million (≈ EUR 11 million) in operating income, while Commercial Property Development reported a SEK 397 million (≈ EUR 34 million) loss due to write-downs in the US portfolio. The Investment Properties division contributed SEK 143 million (≈ EUR 12 million), supported by a revaluation gain of SEK 53 million (≈ EUR 4.6 million).
Group return on equity reached 10 percent, with return on capital employed in Project Development at 1.4 percent. Skanska ended the quarter with adjusted net cash of SEK 9.3 billion (≈ EUR 0.80 billion) and an equity ratio of 37.7 percent — underscoring its strong balance sheet.
“Construction delivered strong margins in the third quarter, reflecting the quality of our backlog and the competence of our teams,” said Anders Danielsson, President and CEO. “We are maintaining performance stability and focusing on selective project starts while positioning for a market recovery.”
Construction
Revenue rose to SEK 42.2 billion (≈ EUR 3.64 billion), a 7 percent increase in local currencies, with all key geographies contributing. Operating income improved to SEK 1.77 billion (≈ EUR 153 million), resulting in a rolling 12-month margin of 3.9 percent.
Residential Development
Revenue reached SEK 1.76 billion (≈ EUR 152 million), with an operating margin of 7.4 percent. Strong sales in Central Europe — notably Poland and the Czech Republic — offset subdued demand in the Nordics.
Commercial Property Development
Revenue increased to SEK 1.75 billion (≈ EUR 151 million). However, impairments in the US weighed on earnings. The company started three new projects, including the Solna Link phase two development in Stockholm, and signed major leases for H2Offices in Budapest and the first phase of Solna Link.
Investment Properties
Revenue amounted to SEK 120 million (≈ EUR 10 million) and operating income reached SEK 143 million (≈ EUR 12 million). Portfolio valuation stood at SEK 8.2 billion (≈ EUR 0.71 billion) with an 83 percent occupancy rate.
Operating cash flow from operations was SEK 40 million (≈ EUR 3.5 million), significantly lower than the SEK 6.2 billion (≈ EUR 0.54 billion) recorded a year earlier due to working-capital changes and ongoing project investments. Total net investments amounted to SEK –1.3 billion (≈ – EUR 112 million).
Skanska expects the US civil infrastructure sector to remain robust, while European and Nordic construction markets will rely increasingly on infrastructure, industrial, and defence investments. Central Europe’s residential and office markets are showing improvement, but the Nordic housing sector remains subdued amid slower economic recovery and high borrowing costs.
Skanska achieved significant progress toward its 2030 climate goals. Combined scope 1 and 2 emissions were 38,000 tonnes CO₂e, down from 47,000 tonnes last year — 64 percent below 2015 levels. Renewable electricity represented 98 percent of total consumption, and renewable fuels reached 34 percent of total fuel use.
The company also maintained strong safety results, with a lost-time accident rate (LTAR) of 2.1 and 1,871 executive site safety visits completed during the quarter.
Skanska reaffirmed its disciplined approach to project selection and capital management. The company will present its forward-looking strategy at the Capital Markets Day in Seattle, USA, on 18 November 2025, focusing on growth opportunities and value creation in North America.
Revenue: SEK 43.7 bn ≈ EUR 3.77 bn
Operating income: SEK 1.36 bn ≈ EUR 117 m
Earnings per share: SEK 3.07 ≈ EUR 0.26
Order bookings: SEK 39.9 bn ≈ EUR 3.44 bn
Operating margin (Construction): 4.2 %
Return on equity: 10 %
Adjusted net cash: SEK 9.3 bn ≈ EUR 0.80 bn
CO₂ reduction vs 2015: –64 %
Note: Conversions use an approximate Q3 2025 average exchange rate of 1 EUR = 11.6 SEK (European Central Bank benchmark for the period).
