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Swedish construction and development company Skanska reported quarterly earnings largely in line with market expectations, supported by strong construction activity and continued demand for data centres and technology-related projects. The company recorded growth in operating profit and order bookings during the quarter, while maintaining a historically high order backlog. Commercial property activity showed signs of improvement, but residential housing demand across the Nordic region remained slow. The company also flagged continued uncertainty in the US commercial property sector and said geopolitical risks were still affecting the broader market outlook.
Swedish builder Skanska reported a stable quarterly performance, backed by healthy construction demand and growth in its project pipeline. The company posted an operating profit of SEK 1.14 billion, compared to SEK 1.08 billion during the same period last year. Market analysts surveyed by LSEG had expected profit to come in at around SEK 1.13 billion. Advertisement
Construction activity remained a key contributor to earnings during the quarter. Order bookings in the construction business increased by 5 per cent in local currencies to SEK 37.6 billion. The company said its order backlog stood at SEK 267.5 billion, which it described as historically high and equivalent to nearly 19 months of work visibility.
Demand from data centres and technology-related facilities continued to support growth. During the quarter, the company secured orders worth SEK 6.9 billion from these segments, reflecting continued investment in digital infrastructure across multiple markets.
The company’s property development business showed mixed trends. Commercial property activity improved compared to previous quarters, indicating gradual recovery in parts of the market. However, residential activity across Nordic countries remained weak as higher borrowing costs and cautious consumer sentiment continued to affect housing demand.
The company also pointed to continued macroeconomic uncertainty in the US commercial real estate market. Elevated interest rates and slower investment activity have been impacting transactions and new developments across the sector over the past several quarters.
Skanska said it expects construction markets to remain stable going forward, while housing demand is likely to recover gradually over time. At the same time, the company cautioned that geopolitical uncertainty and broader economic concerns could continue to affect business sentiment and investment decisions in the coming months.
Over the past few years, Skanska has increasingly focused on infrastructure, healthcare facilities, public sector projects and technology-linked developments to maintain stability amid fluctuations in the residential market. The company has also benefited from long-term demand fo
Source Reuters
5th Jun, 2025
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