Skanska has reported its interim results for the first quarter of 2026, highlighting stable profitability, stronger operating performance in local currencies, and continued resilience in its construction operations despite lower reported revenue.
Revenue Declines Amid Currency Headwinds
To begin with, Skanska reported revenue of SEK 38.0 billion in Q1 2026, compared with SEK 42.3 billion in the same period last year.
However, when adjusted for currency effects, revenue declined by only 1 percent, indicating relatively stable underlying business activity across the company’s markets.
At the same time, earnings per share improved slightly to SEK 2.42, compared with SEK 2.40 a year earlier.
Operating Performance Shows Improvement
Importantly, operating income remained stable at SEK 1.1 billion year-over-year.
Moreover, adjusted for currency effects, operating income increased by 18 percent, reflecting improved operational efficiency and stronger project execution.
As a result, the company maintained healthy profitability despite market volatility and foreign exchange pressures.
Construction Segment Remains Core Growth Driver
Notably, the Construction segment continued to be the company’s largest business contributor.
Order bookings reached SEK 37.6 billion, and after currency adjustments, bookings increased 5 percent quarter-over-quarter.
In addition, Construction operating income totaled SEK 1.1 billion, representing an operating margin of 3.0 percent. The rolling 12-month operating margin stood at 4.2 percent.
Consequently, the figures demonstrate continued demand for infrastructure and commercial construction projects across Skanska’s core markets.
Project Development Business Improves
Meanwhile, Skanska’s Project Development segment reported operating income of SEK 0.2 billion, improving from break-even performance in the previous year.
However, return on capital employed in Project Development declined slightly to 2.1 percent from 2.8 percent.
Even so, the improvement in operating income suggests gradual stabilization in the company’s development activities.
Balance Sheet and Cash Flow Update
On the financial side, adjusted interest-bearing net receivables totaled SEK 9.5 billion, improving from SEK 11.5 billion at the end of 2025.
However, operating cash flow from operations came in at negative SEK 1.3 billion, compared with negative SEK 0.2 billion last year.
Therefore, while profitability remained stable, cash flow performance reflected ongoing working capital and project cycle impacts.
Industry Context: Construction Sector Navigates Economic Uncertainty
Overall, Skanska’s results reflect broader trends in the global construction industry, where companies continue to manage currency fluctuations, labor pressures, and shifting project demand.
At the same time, infrastructure investment and sustainable construction initiatives remain key growth drivers across Europe and North America.
Similarly, firms are increasingly focusing on operational efficiency and project selectivity to maintain margins in a volatile economic environment.
Outlook
Looking ahead, Skanska remains positioned to benefit from long-term infrastructure and development demand across its key markets in the Nordics, Europe, and the United States.
By maintaining stable margins, strengthening operational performance, and improving its balance sheet position, the company continues to reinforce its focus on sustainable and disciplined growth.
