Strategic Analysis Series
Swedish Companies 2024

Skanska

Strategic Analysis Report 2024

Building for a Better Society
Sustainable Construction & Development Leader

Company: Skanska AB (publ)

Headquarters: Stockholm, Sweden

Sector: Construction & Project Development

Founded: 1887 | Analysis Date: January 2026

Executive Summary

Skanska is one of the world's leading construction and project development companies, with operations across the Nordics, Europe, and the United States. Founded in 1887, the company has built a strong reputation for sustainable construction and innovative project delivery.

SEK 177.2B

Total Revenue 2024

26,300

Employees Globally

SEK 263.6B

Order Backlog Q1 2025

2024 Key Achievements
Skanska achieved a record-high order backlog of SEK 207.9 billion in 2024, with a book-to-build ratio of 123%. The company opened Phase 1 of the Portland International Airport redevelopment, featuring a notable mass timber roof.

Skanska's purpose is "building for a better society", with a commitment to creating innovative and sustainable solutions that transform the built environment for customers and communities.

Business Model & Four Streams

Integrated Value Chain Approach

Skanska operates through four business streams that represent the Group's operating segments, each with distinct operations, risks, and targets.

Construction

Building and civil construction including hospitals, universities, data centers, highways, bridges, and tunnels. Serves public and private clients.

~88% of Group Revenue

Residential Development

Development of attractive residential homes in the Nordics, Poland, and Czech Republic. Focus on sustainable and energy-efficient housing.

~3-4% of Group Revenue

Commercial Property Development

Development of sustainable and energy-efficient commercial workplaces. Strong focus on green building certifications and long-term value.

~6-7% of Group Revenue

Investment Properties

Active investment in and management of high-quality properties, primarily in Sweden. Includes seven properties valued at SEK 8.2B in 2024.

~1% of Group Revenue

Financial Performance 2024

Strong Revenue Growth & Profitability

Skanska delivered solid financial performance in 2024, with revenue increasing 5.57% to SEK 176.48 billion and earnings growing 11.08% to SEK 5.55 billion.

Financial Performance Summary (SEK Million)

Metric	2024	2023	Growth
Total Revenue	176,481	167,173	+5.6%
Gross Profit	14,480	13,530	+7.0%
Operating Income	5,887	5,550	+6.1%
Net Income	5,550	5,000	+11.1%
EPS (SEK)	13.50	12.15	+11.1%

Revenue Composition 2024
US Revenue: $8.2B USD (~50% of global) | US Employees: 6,300+ | US Development Investment: $224M net in commercial projects

Q1 2025 Performance

Accelerating Growth Momentum

Skanska delivered strong performance in Q1 2025 with 16% revenue growth and a significant 115% increase in operating income year-over-year.

Q1 2025 vs Q1 2024 Performance (SEK Million)

Metric	Q1 2025	Q1 2024	Growth
Total Revenue	42,300	36,200	+16.0%
Operating Income	1,100	510	+115.7%
Operating Margin	2.8%	1.4%	+1.4pp
Construction Revenue	41,800	36,200	+15.5%
Construction Margin	2.8%	2.0%	+0.8pp

Financial Strength Indicators
Net Cash Position: SEK 11.6B (Q1 2025) | Equity Ratio: 37% (Q2 2025) | Dividend 2024: SEK 8.00 per share (vs SEK 5.50 in 2023)

Order Backlog & Pipeline

Record Backlog Providing Future Visibility

Skanska achieved a record-high order backlog in 2024, providing strong visibility into future revenue and demonstrating the company's competitive positioning in key markets.

SEK 263.6B

Order Backlog Q1 2025

123%

Book-to-Build Ratio 2024

152%

US Book-to-Build Ratio

Recent Major Contract Wins

Project	Value	Location	Sector
Raritan River Bridge Replacement	$421M	US	Infrastructure
Water Treatment Plant	€48M	Finland	Water/Wastewater
Healthcare Facility	$55M	US	Healthcare
School Project	NOK 409M	Norway	Education

Business Streams Performance

Q1 2025 Segment Analysis

Each business stream contributes differently to Skanska's overall performance, with Construction driving revenue and Property Development contributing higher margins.

Business Streams Q1 2025 (SEK Million)

Business Stream	Revenue	Operating Income	Margin
Construction	41,800	1,185	2.8%
Residential Development	1,500	63	4.2%
Commercial Property Development	346	54	15.6%
Investment Properties	116	70	60.3%

Construction Segment Highlights
Construction represents ~99% of revenue but operates at lower margins (2.8%). The segment's operating margin improved to 3.9% in Q2 2025, up from 3.5% in 2024, driven by cost control and project execution excellence.

Sustainability Leadership

Net Zero Carbon by 2045

Skanska is a recognized leader in sustainable construction, with an ambitious goal to achieve net-zero carbon emissions by 2045 across its entire value chain. The company has already reduced carbon emissions by 40% compared to 2015.

Carbon Reduction Target

70%

Reduction by 2030 (vs 2015 baseline)

MSCI ESG Rating

A

Strong sustainability performance

LEED Projects

200+

LEED certified projects completed

LEED Professionals

450+

LEED Accredited Professionals

Climate Leadership Recognition
Skanska has been named a "Climate Leader" in Europe by Financial Times for two consecutive years. The company co-created the AGC Decarbonization and Carbon Reporting Playbook and signed the Exponential Roadmap supporting the 1.5°C Business Playbook.

Technology & Innovation

Digital Transformation in Construction

Skanska leverages cutting-edge technology to enhance project predictability, efficiency, and quality. The company is at the forefront of adopting digital tools and sustainable building methods.

Building Information Modeling (BIM): Comprehensive 3D modeling for project visualization and coordination

Mass Timber Construction: Pioneering use of sustainable wood materials, exemplified by Portland International Airport's timber roof

AI and Robotics: Implementation of automation tools to improve efficiency and safety

Green Building Certifications: Deep expertise in LEED, BREEAM, and other sustainability standards

Digital Twins: Virtual representations for facility management and operations optimization

Innovation Highlights
Skanska developed the Insight tool for identifying operational carbon reduction opportunities and the EC3 tool for capturing embodied carbon. The company is also a Fitwel Champion and WELL Keystone member, promoting healthy building standards.

Regional Operations

Global Reach with Local Expertise

Skanska operates in select markets across the Nordics, Europe, and the United States, with the US market serving as a key growth driver, representing nearly 50% of global revenue.

Regional Presence & Performance

Region	Revenue Share	Key Markets	Focus Areas
United States	~50%	28 offices nationwide	Infrastructure, data centers, healthcare
Nordics	~35%	Sweden, Norway, Finland	Residential, commercial, infrastructure
Europe	~15%	Poland, Czech Republic, UK	Commercial development, building projects

US Market Leadership
Skanska USA is ranked 10th in ENR's Top 400, 8th largest transportation contractor, and 7th largest heavy contractor (2024). The company has a strong presence in infrastructure, data centers, and healthcare sectors.

Strategic Focus Areas

Building for Future Growth

Skanska is strategically focused on high-growth sectors and innovative project delivery models to ensure long-term value creation and margin stability.

Public-Private Partnerships (P3): Strategic shift towards higher-margin P3 projects for infrastructure development

Operations & Maintenance (O&M): 56.7% of pipeline through 2030 dedicated to long-term O&M contracts

Data Centers & Life Sciences: High-growth sectors with strong demand in the US market

Healthcare & Education: Stable, essential infrastructure projects with long-term demand

Transportation Infrastructure: Roads, bridges, and mass transit projects benefiting from government investment

Market Positioning
Skanska's selective bidding strategy prioritizes projects where it holds competitive advantages. The company focuses on sustainable building practices and green infrastructure to meet growing demand for ESG-compliant projects.

Strategic Outlook & Risks

Navigating Market Dynamics

Skanska is well-positioned for continued growth but faces several market challenges that require strategic navigation and risk management.

Key Risks & Challenges
Supply Chain Disruptions: Ongoing challenges with electrical switchgear and emergency generators
Labor Shortages: Persistent workforce constraints affecting project timelines and costs
Market Volatility: Weak Nordic housing market and elevated interest rates
Material Costs: Rising construction costs and extended customer decision-making timelines
Geopolitical Risks: Tariffs on materials and potential supply chain disruptions

Growth Outlook
Analyst Projections: 3.8% average annual revenue growth over next 3 years | US Market: Continued strong demand for infrastructure and data centers | Europe: Stable civil projects, gradual recovery in building markets

Strategic Recommendations

Building for Continued Success

Based on Skanska's strong market position and strategic capabilities, the following recommendations will support continued growth and value creation:

Accelerate P3 Strategy: Continue strategic shift towards Public-Private Partnerships for higher-margin, long-term infrastructure projects

Expand O&M Portfolio: Grow Operations & Maintenance contracts to create stable, recurring revenue streams

Strengthen US Market Position: Leverage strong US presence in infrastructure and data centers for continued growth

Enhance Sustainability Leadership: Use net-zero commitment and green building expertise as competitive differentiators

Invest in Technology & Digitalization: Continue BIM, AI, and automation investments for improved project efficiency

Diversify Geographically: Balance Nordic exposure with continued expansion in high-growth US and European markets

Investment Thesis
Skanska offers compelling investment opportunity as a leading construction and development company with strong US market presence, record order backlog, and clear commitment to sustainability. The company's integrated business model, financial strength, and strategic focus on high-growth sectors position it well for long-term value creation.