Skanska (SKA) Q1 2025 earnings summary

Executive summary

• Revenue and operating income grew significantly, with Construction delivering strong margins and a record order backlog, despite macroeconomic uncertainty impacting Residential Development, especially in the Nordics.

• Two new Commercial Property Development projects started in Sweden, with no divestments this quarter; Investment Properties delivered stable results.

• Return on equity improved to 10.5% (5.9%), and carbon emissions (scope 1 and 2) reduced by 62% compared to 2015.

• The group maintained a strong financial position with robust liquidity and available funds.

Financial highlights

• Revenue increased to SEK 42.3 billion (36.4), up 16% year-over-year; Construction revenue SEK 41.8 billion, up 14% in local currency.

• Group operating income reached SEK 1.2 billion (up from 0.5 billion), with a Q1 operating margin of 2.8% (1.8% last year).

• Net income for the period was SEK 991 million, with EPS of SEK 2.40 (1.28).

• Cash flow from operations improved to SEK -0.2 billion (from -4.9 billion in Q1 2024).

• Adjusted interest-bearing net receivables at SEK 11.6 billion; equity/assets ratio at 37.7%.

Outlook and guidance

• US building market outlook normalized to stable; US civil market remains strong.

• European building outlook is cautious, civil stable; Nordic housing market activity remains low with gradual recovery expected; Central Europe stable.

• Commercial property transaction activity is returning in Europe but remains weak in the US; demand for high-quality, sustainable office space remains strong.