Thursday, 5 November 2026
Skanska reported improved financial results for the third quarter of 2026, with higher construction revenue and an increase in new contracts offsetting weaker performance in parts of its property development business. Central Europe continued to provide opportunities for commercial property transactions and residential construction, while market conditions elsewhere remained less favourable.
The Swedish construction and property development group generated revenue of SEK 49.4 billion (approximately €4.50 billion) between July and September 2026, compared with SEK 43.7 billion (approximately €3.99 billion) during the corresponding period last year. Operating profit increased by 52% to SEK 2.07 billion (approximately €189 million), up from SEK 1.36 billion (approximately €124 million) in the third quarter of 2025.
Construction operations accounted for most of the improvement. Revenue from this division reached SEK 46 billion (approximately €4.19 billion), compared with SEK 42.2 billion (approximately €3.85 billion) a year earlier. Operating profit increased to SEK 2.28 billion (approximately €208 million), while the operating margin improved from 4.2% to 5.0%.
The value of new construction contracts reached SEK 68 billion (approximately €6.20 billion) during the quarter, compared with SEK 39.9 billion (approximately €3.64 billion) in the corresponding period of 2025. By the end of September, Skanska had outstanding construction contracts valued at SEK 328.3 billion (approximately €29.94 billion), representing around 22 months of work at current production levels.
Investment in data centres, semiconductor manufacturing facilities and infrastructure projects contributed to the increase in construction activity. These sectors have become increasingly important sources of revenue for international construction companies as demand for conventional commercial developments continues to vary between markets.
The company’s residential development business reported weaker results, with revenue declining to SEK 1.54 billion (approximately €140 million) from SEK 1.76 billion (approximately €160 million). The division recorded an operating loss of SEK 369 million (approximately €33.6 million), compared with a profit of SEK 131 million (approximately €11.9 million) a year earlier.
The residential result included SEK 340 million (approximately €31 million) in reductions to the recorded value of certain land holdings and SEK 143 million (approximately €13 million) in goodwill impairments. These adjustments were associated with changes to the company’s development priorities and weaker performance in parts of its Nordic residential operations.
Housing activity also slowed during the quarter. Skanska sold 323 homes, compared with 383 in the third quarter of 2025, while construction began on 270 homes, down from 572 a year earlier. At the end of September, the company had 2,882 homes under construction, with 56% already sold. The number of completed but unsold homes declined to 298 from 486 a year earlier.
Conditions in Central Europe remained more favourable than in several Nordic residential markets. Skanska reported continued demand for housing in the region and stronger profitability from its Central European residential projects. One new residential development was launched during the quarter, while the company maintained a positive assessment of opportunities in the region over the coming year.
Commercial property development recorded an improvement in financial performance, with revenue increasing to SEK 3.25 billion (approximately €296 million) from SEK 1.75 billion (approximately €160 million) a year earlier. Operating profit reached SEK 171 million (approximately €15.6 million), reversing a loss of SEK 397 million (approximately €36.2 million) in the third quarter of 2025.
Central Europe contributed to this performance through the sale of two office developments, one in Warsaw and another in Budapest. These transactions indicate that investment demand remains present for selected office properties in the region, although activity continues to depend on building quality, rental income and individual market conditions.
Skanska also commenced development of the first phase of Nowy Format in Kraków during the quarter. The decision to proceed with a new office project comes as the company reports improving leasing conditions in Central Europe, supported by demand from occupiers and a relatively limited volume of new office accommodation entering the market. This combination has contributed to higher rents in certain locations, although conditions differ between cities and individual properties.
Despite the improvement in commercial development earnings, the division recorded SEK 378 million (approximately €34.5 million) in property impairments, primarily associated with completed buildings in the United States that remain unsold. These adjustments reduced the financial benefit from property disposals and demonstrate the continuing effect of weaker investment conditions on development valuations.
At the end of September, Skanska had 17 commercial development projects under construction, providing a combined 271,000 sqm of lettable space. These projects were approximately 57% complete, with 54% of their accommodation leased. The company’s portfolio also included 17 completed properties covering 446,000 sqm, of which 82% was leased.
New leasing activity declined to 22,000 sqm during the quarter from 77,000 sqm in the corresponding period of 2025. The reduction highlights the importance of securing tenants before completion or disposal, particularly for developers seeking to limit the financial exposure associated with vacant commercial accommodation.
Skanska estimated the potential market value of its commercial development portfolio at SEK 48.4 billion (approximately €4.41 billion) upon completion, including approximately SEK 4.6 billion (approximately €419 million) in unrealised development gains. These figures reflect current valuation assumptions and anticipated project outcomes rather than profits already received through completed transactions.
The company’s financial position strengthened during the reporting period. Operating cash flow reached SEK 2.84 billion (approximately €259 million), compared with SEK 40 million (approximately €3.6 million) a year earlier. Adjusted interest-bearing net receivables increased to SEK 11.6 billion (approximately €1.06 billion) at the end of September, compared with SEK 8.7 billion (approximately €793 million) at the end of June.
Skanska’s outlook for Central Europe remains relatively positive, particularly in residential development and the office leasing market. The company expects housing demand to continue supporting development opportunities, while limited new office supply and tenant requirements for modern accommodation are contributing to rental growth in selected commercial locations.
The third-quarter results illustrate the different conditions affecting construction and property development across international markets. Infrastructure and technology investment are supporting construction revenue and new contracts, while residential and commercial development remain more dependent on local demand, financing conditions and the ability to sell completed properties at acceptable prices.
For Poland and the wider Central European region, Skanska’s office transactions and new development activity suggest that investment and construction opportunities remain available despite the difficulties affecting other parts of the group’s property portfolio. However, lower residential construction starts, reduced commercial leasing volumes and continuing asset impairments indicate that the wider recovery in European property development remains uneven.
Currency reference: All euro equivalents have been calculated using the SEK/EUR exchange rate recorded on 5 November 2026 at 08:54 CET, when SEK 1 equalled €0.0911899, or approximately SEK 10.9661 to €1. The conversions are provided for comparison and are not the historical exchange rates applicable to the financial reporting periods.
