Skanska (SKA) Q3 2025 earnings summary

Executive summary

• Strong third quarter with robust Construction margins and high-quality backlog, supported by disciplined project selection and solid performance across all geographies.

• Residential Development excelled in Central Europe with high sales and margins, while the Nordic market remained weak.

• Commercial Property Development signed two large lease contracts but posted negative operating income due to SEK 658 million in US property impairments.

• Investment Properties delivered stable results, with occupancy at 83% and property value reassessment supporting performance.

• Maintained a solid financial position and continued significant carbon reduction, now 64% below 2015 baseline.

Financial highlights

• Revenue reached SEK 43.7 billion (42.8), up 8% year-over-year (currency-adjusted); Construction operating margin at 4.2% (3.6%).

• Operating income was SEK 1.8 billion (1.5), up 22% year-over-year; earnings per share increased to SEK 3.07 (2.28).

• Residential Development operating income at SEK 131 million, with a 5.9% return on capital employed.

• Commercial Property Development operating income at minus SEK 397 million, due to SEK 658 million in US impairments, offset by gains on sales.

• Investment Properties operating income stable at SEK 143 million; occupancy rate at 83%.

Outlook and guidance

• Construction market outlook stable; US civil infrastructure strong, European and Nordic civil markets gradually strengthening.

• Residential Development expected to remain strong in Central Europe, with gradual improvement anticipated in the Nordics as fundamentals improve.

• Commercial Property Development outlook raised for Central Europe and Nordics due to higher leasing and transaction activity; US market recovery lags but top-tier properties are favored.

• Investment Properties market expected to remain stable, with demand for high-quality, sustainable assets.