Skanska (SKA) Q2 2025 earnings summary

Executive summary

• Q2 revenue was SEK 44.6bn, down 6% year over year and flat in local currency; operating income fell 30% to SEK 1.8bn, partly due to fewer property divestments.

• Construction delivered strong margins, order intake and a historical-high backlog.

• Central European residential performance was strong, while Nordic housing remained subdued; property development transaction activity was weak.

• Operating cash flow improved to SEK 1.3bn, and adjusted interest-bearing net receivables were SEK 9.7bn.

• Scope 1 and 2 emissions were down 62% from the 2015 baseline.

Financial highlights

• Profit for the period was SEK 1,528m versus SEK 2,069m; EPS was SEK 3.69 versus SEK 5.03.

• Operating income was SEK 1,813m, down 30% year over year; the currency-adjusted decline was 26%, reflecting fewer property divestments.

• Operating cash flow from operations was SEK 1.3bn, up from SEK 0.3bn.

• Adjusted interest-bearing net receivables were SEK 9.7bn; the equity/assets ratio was 36.5%.

• The effective tax rate was 21%; a SEK 3,295m dividend was distributed in Q2.

Outlook and guidance

• U.S. civil markets remain strong and well-funded; U.S. building outlook is cautiously optimistic, while European and Nordic civil markets are more active than building markets.

• Central European housing is strong; Nordic residential markets remain subdued amid macroeconomic uncertainty and low consumer confidence.

• European commercial property transactions are improving, while U.S. activity lags; European occupier demand remains stable.

• Project Development recovery remains sensitive to macroeconomic and geopolitical factors and interest rates.