Skanska (SKA) Q1 2026 earnings summary

Executive summary

• Solid start to the year with strong Construction performance and robust order backlog across all geographies; Central European Residential Development excelled, while Nordic Residential remained soft.

• Commercial Property Development saw two project starts and two divestments, with stable margins and decent leasing rates.

• Investment Properties delivered stable results with an 84% occupancy rate and a portfolio value of SEK 8.3 billion.

• Robust financial position maintained, enabling strategic land acquisitions and significant carbon emissions reduction of 66% since 2015.

• No material supply chain impact from Middle East conflict, but increased market uncertainty and input prices noted.

Financial highlights

• Revenue: SEK 38.0 billion (down 10% year-over-year; down 1% currency-adjusted).

• Construction operating margin at 3% for Q1, rolling 12-month margin at 4.2%, exceeding the increased target.

• Operating income in Construction: SEK 1.1 billion; Group operating income up 18% currency-adjusted.

• Residential Development revenue SEK 1.4 billion, operating income SEK 92 million, margin 6.6%; strong Central Europe, weak Nordics.

• Commercial Property Development operating income SEK 71 million; gain on sale SEK 174 million; return on capital employed 1.4%.

• Investment Properties operating income SEK 81 million; yield 4.7%; economic occupancy rate 84%.

• EPS: SEK 2.42 (2.40 prior year); tax expense SEK 316 million (24% rate).

• Operating cash flow: SEK -1.3 billion, mainly due to working capital and Residential Development investments.

Outlook and guidance

• US civil infrastructure market remains strong; stable building market overall.

• Central European Residential market robust; Nordic market fundamentals positive but require improved consumer confidence.

• Commercial property transaction volumes rising in Nordics and Central Europe; US market limited.

• Investment Properties market polarized, with stable rents expected; pipeline supports growth to SEK 12–18 billion, but market conditions have delayed new starts.

• Market uncertainty persists due to geopolitical factors and inflation.