Skanska (SKA) Q2 2025 earnings summary

Executive summary

• Robust second quarter with strong construction performance, high margins, and record order intake, supported by a healthy project portfolio across all geographies.

• Residential Development saw strong sales and margins in Central Europe, while the Nordic market remained weak.

• Commercial Property Development recorded one divestment in Bucharest and stable investment property performance; transaction volumes subdued, with Central Europe most active.

• Financial position remains solid, with significant carbon emissions reduction of 62% since 2015.

• Celebrated 60 years as a listed company.

Financial highlights

• Construction revenue reached SEK 43.1 billion, with operating income close to SEK 1.7 billion and a 3.9% margin.

• Residential Development revenue was SEK 2 billion, with 409 homes sold and operating income of SEK 226 million (11.3% margin).

• Commercial Property Development operating income was SEK 86 million, with a gain on sale of SEK 215 million.

• Investment Properties operating income stable at SEK 80 million; economic occupancy rate at 83%.

• Group operating income for the quarter was SEK 1.8 billion; profit for the quarter was SEK 1.5 billion, EPS SEK 3.69.

Outlook and guidance

• US civil and building markets remain strong and stable, supported by federal funding; cautious optimism for US building market.

• Civil market in Europe stable, with increased activity in Sweden driven by defense and infrastructure investments.

• Central Europe residential market outlook upgraded; Nordic region remains slow with low consumer confidence.

• Commercial property transaction activity returning in Europe but lagging in the US due to high interest rates.

• Investment property market polarized, with stronger demand for high-quality spaces.