Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Skanska reported fourth-quarter operating profit slightly below market expectations, as weak housing demand across the Nordic region continued to affect property sales and development activity. While operating profit rose 11% year-on-year to SEK 2.98 billion, it fell short of analyst estimates amid persistently low consumer confidence in Sweden and neighbouring markets. The company indicated that residential construction and commercial property development remained subdued, with limited new project launches. In the US, Skanska highlighted continued stagnation in the commercial property market, citing low transaction volumes and investor caution linked to long-term interest rate levels. Although central banks have begun easing monetary policy, the company expects only a gradual recovery in Nordic and Central European housing markets during 2026, while the US commercial property sector is likely to remain under pressure for longer.
Swedish construction group Skanska reported fourth-quarter operating profit marginally below market expectations, reflecting continued weakness in housing demand across the Nordic region and limited recovery in global property development activity. Advertisement
For the quarter, Skanska posted an operating profit of SEK 2.98 billion, representing an 11% year-on-year increase but falling short of the SEK 3.02 billion forecast by analysts surveyed by LSEG. The company said subdued housing sales in its core Nordic markets continued to weigh on overall performance, despite underlying structural demand for new homes.
According to Skanska's management, consumer confidence across the Nordics remains weak, constraining housing demand even as interest rate cuts by major central banks have begun to ease financing conditions. The company noted that both residential construction and commercial property development in Sweden remained at low levels, with few new projects entering the market during the period.
Commenting on the broader market environment, Skanska said the recovery in property development has been slower than expected across both residential and commercial segments. In the US, the company highlighted that commercial property transactions remain limited, as investors continue to wait for improved market conditions. Management indicated that a meaningful recovery in the US commercial real estate market would require further declines in long-term interest rates, which are not expected in the near term.
While Skanska anticipates a gradual improvement in housing markets across the Nordic and Central European regions during 2026, it cautioned that the pace of recovery is likely to remain slow. The company expects project development activity to pick up modestly, supported by incremental economic growth, but acknowledged that market conditions remain challenging.
The outlook for the US commercial property market remains more restrained, with Skanska stating that subdued transaction activity is likely to persist beyond 2026.
In terms of shareholder returns, Skanska proposed an annual dividend of SEK 14 per share, including an extra dividend of SEK 5.50. This compares with the previous year, when the company paid only the ordinary dividend of SEK 8 per share without any additional payout.
Following the results announcement, Skanska's shares were trading around 2.5% lower in Stockholm mid-morning on Friday.
Source - Reuters
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
