Latest news with #Skanska
Yahoo
18 hours ago
- Business
- Yahoo
Skanska CEO says its selective strategy reduces risk
This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. Remaining selective and planning for risk have been key to Skanska's profitability. CEO Anders Danielsson said the firm has been more discerning about only taking on projects and clients in sectors where it has seen success in the past. 'We took important strategic positions some years ago to be more selective,' Danielsson told Construction Dive. 'We have the right team in place.' The chief of the Stockholm-based contractor spoke to analysts during a second quarter earnings call July 18, where the results showed that U.S. construction has continued to be the anchor of the firm's success. However, continued changes around tariffs have raised questions on pricing for materials, and that uncertainty has impacted project timelines and the ability for contractors to break ground. Danielsson said Skanska has seen minimal impact from the tariff policy thus far, and remained bullish for the future. In part, that success is due to sourcing U.S. materials, he said, noting he hasn't seen increased competition for those domestic products. headshot of Anders Danielsson 'We haven't seen a lot of [impact from tariffs], but we are careful to not to end up in a situation where we suffer from, like price increases,' Danielsson told Construction Dive after the call. 'And so we are very careful before we bid for a project, we secure the prices from our suppliers.' When price hikes do arise, Danielsson said Skanska has had success passing the difference back onto the client. As an example, he cited the firm successfully doing so when construction costs spiked during the COVID-19 pandemic. Priority sectors Within construction, the U.S. civil market remains one of the major success areas for Skanska. Danielsson anticipates 'strong demand for traditional infrastructure' in the states. He cited confidence for public funding to continue to flow to critical sectors such as schools, hospitals, airports and data centers. In recent earnings reports, a sticking point for the firm has been commercial property development, especially as workers in the U.S. largely continued to work from home following the pandemic. Though the firm's outlook on commercial development for the next 12 months remains weak, Danielsson said a shift to quality, where companies target nicer offices in more attractive areas, continues to show promise. 'I'm sure most companies want their employees back to office,' Danielsson said. 'So that trend will continue.'
Yahoo
4 days ago
- Business
- Yahoo
Skanska AB (SKBSY) Q2 2025 Earnings Call Highlights: Strong Order Backlog and Sustainable ...
Revenue: SEK43.1 billion in the quarter. Operating Margin (Construction): 3.9%, up from 3.5% the previous year. Order Bookings: SEK56.7 billion, with a book-to-bill ratio of 113% on a rolling 12-month basis. Order Backlog: SEK268 billion, historically high level. Residential Development Revenue: SEK2 billion, with 409 homes sold. Residential Development Operating Margin: 11.3%. Commercial Property Development Operating Income: SEK86 million. Commercial Property Development Gain on Sale: SEK215 million. Investment Properties Operating Income: SEK80 million. Total Operating Income: SEK2.1 billion for the business streams. Net Financial Items: On par with last year. Profit for the Quarter: SEK1.5 billion. Earnings Per Share: SEK3.69. Cash Flow from Operations: Positive by SEK1.3 billion. Dividend Distributed: SEK3.3 billion, SEK8 per share. Equity: SEK59 billion. Equity Ratio: Almost 37%. Adjusted Net Cash Flow: SEK9.7 billion. Warning! GuruFocus has detected 4 Warning Signs with SKBSY. Release Date: July 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Skanska AB (SKBSY) reported a robust second quarter with a strong operating margin of 3.9% in Construction, up from 3.5% the previous year. The company achieved a historically high order backlog of SEK268 billion, with a strong book-to-bill ratio of 113% on a rolling 12-month basis. Residential Development in Central Europe showed strong sales and margins, contributing significantly to the overall performance. Skanska AB (SKBSY) has reduced carbon emissions in its operations by 62% since 2015, demonstrating a commitment to sustainability. The company maintains a solid financial position with an equity ratio of almost 37% and adjusted net cash flow of SEK9.7 billion. Negative Points The Nordic housing market remains weak due to macroeconomic uncertainties and low consumer confidence, impacting Residential Development negatively. Commercial Property Development experienced low volume with only one divestment in the quarter, reflecting a challenging market environment. The US commercial property market is hesitant, with no significant divestments in recent years due to high interest rates and cautious investor sentiment. Central items in the income statement increased due to higher costs driven by IT transformation and outsourcing of infrastructure. The Nordic market's slow recovery and low consumer confidence continue to pose challenges for Skanska AB (SKBSY)'s Residential Development segment. Q & A Highlights Q: The construction margin looks very strong. Are there any temporary effects, and how sustainable is this performance given the fluctuations in EBIT margin? A: Anders Danielsson, President and CEO, explained that there are no one-off effects in the second quarter, indicating a strong performance driven by a healthy backlog and effective project execution. The first quarter is typically slower due to winter effects in Europe and the Nordics, impacting revenue but not costs. The rolling 12-month trend remains stable at 3.7%. Q: Regarding Commercial Development (CD), revenue from divestments is down significantly. What are the expectations for the second half of the year, particularly in the US? A: Anders Danielsson noted that while they don't forecast divestments, there is higher activity in Europe, and some assets are ready for divestment. In the US, the market is hesitant due to high interest rates, and Skanska is not in a hurry to divest, waiting for better market conditions. Q: You updated your outlook for Swedish civils and European residential markets. What drove this decision, and can the European residential business sustain its current pace? A: Anders Danielsson highlighted that the Swedish civil market is strong due to increased government projects in defense, energy, and infrastructure. The Central European residential market is also strong, and Skanska is prepared to capitalize on these opportunities. The company maintains a focus on healthy business cases for new projects. Q: What is the outlook for the US data center market, and how does it affect Skanska's capacity and order intake? A: Anders Danielsson stated that the US data center market has a stable pipeline, and Skanska has strong capacity and client relationships to continue development. The US building market remains stable, though project starts may take longer due to market uncertainties. Q: With margins approaching 4%, is there potential to adjust the target from 3.5% to 4%? A: Anders Danielsson confirmed that the current target of 3.5% or more is relevant. The US market, particularly civil operations, offers higher margins, and the mix of business models is favorable, contributing to strong performance. For the complete transcript of the earnings call, please refer to the full earnings call transcript. 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Yahoo
14-07-2025
- Business
- Yahoo
Skanska wins contract to build Fazer's $467m chocolate factory in Finland
Skanska has secured a contract for the construction of Fazer's approximately €400m ($467m) chocolate factory in Lahti, Finland. The project aims to enhance Fazer's production capabilities with advanced technology and automation. Skanska's contract is worth €89m and will be included in its Nordic order bookings for the third quarter of 2025. The construction of the factory, located in the Pippo industrial area, is set to begin in the coming months, with operations expected to start in 2028. Fazer noted that the production of chocolates will also partially continue in Vantaa. The new facility will span approximately 33,300m² and integrate Fazer's chocolate expertise with automated production lines and technologies to produce new types of products. It will be carbon dioxide emissions-free while the efficient use of raw materials will significantly minimise production waste. Fazer Group president and CEO Christoph Vitzthum said: 'The investment of approximately €400m is the largest in Fazer's history and it is also significant from a Finnish food industry perspective. 'The new factory will support both our domestic as well as international growth and demonstrates our strong belief in the competitiveness of Finnish food production also in the international markets.' Fazer's investment is supported by Business Finland's industrial investment support programme. Fazer has completed a real-estate transaction with the City of Lahti to facilitate the construction phase, which will employ hundreds of professionals, totalling over 500,000 working hours. The investment will be financed through long-term debt, with a green finance framework allowing for the issuance of green financial instruments. Fazer's new project is expected to contribute to Finnish food exports, with the company already accounting for 15% of these exports. Recently, Skanska secured two new contracts in the US and Sweden: a rail link construction and a multisports facility development, respectively. "Skanska wins contract to build Fazer's $467m chocolate factory in Finland" was originally created and published by World Construction Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
14-07-2025
- Business
- Yahoo
Skanska builds new chocolate factory for Fazer in Lahti, Finland, for EUR 89M, about SEK 980M
STOCKHOLM, July 14, 2025 /PRNewswire/ -- Skanska has signed a contract with Fazer to build their new chocolate factory in Lahti, Finland. The contract is worth EUR 89M, about SEK 980M, which will be included in the Nordic order bookings for the third quarter of 2025. The project encompasses the construction of the factory in Lahti. The scope of the project is 34,000 gross square meters. The project is aiming for a Breeam environmental certification. The construction is scheduled to commence in September 2025 and will be completed in December 2027. For further information please contact: Cristina Rinnetie-Uski, Vice President Marketing and Communications, Skanska Finland, tel +358 405 019 816 Andreas Joons, Press Officer, Skanska Group, tel +46 (0)10 449 04 94 Direct line for media, tel +46 (0)10 448 88 99 This and previous releases can also be found at This information was brought to you by Cision The following files are available for download: 20250714 FI chocolate factory Image FI chocolate factory - image cred Sweco Fazer View original content: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-07-2025
- Business
- Yahoo
Skanska, FlatironDragados win $1B DC bridge upgrade
This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. Award:Rail bridge Value: $1 billion Location: Washington, D.C. Client:Virginia Passenger Rail Authority A joint venture of Stockholm-based Skanska and Broomfield, Colorado-based FlatironDragados has won a $1 billion contract to build the Long Bridge North project in Washington, D.C. The roughly 1-mile rail link, constructed for the Virginia Passenger Rail Authority, will stretch from East Potomac Park to D.C.'s Le'Enfant Interlocking. The bridge is the first part of a major two-phased initiative to expand freight and passenger rail service in the corridor. The Long Bridge North project is part of the broader, 1.8-mile Long Bridge project that will replace the existing two-track system from D.C. into Arlington, Virginia, with a series of linked, four-track modern rail bridges and corridors. The intent is to ease traffic and congestion. The broader effort will also include a new bike or pedestrian bridge that will span the Potomac River and connect the Long Bridge Park directly to East and West Potomac Parks, according to the project page. The refurbished eastern tracks, currently serving freight and passenger traffic, will primarily serve CSX freight rail, while the newly built western tracks will cater mainly to passenger services provided by the Amtrak and Virginia Railway Express. Annually, 2 million Amtrak passengers and 3 million VRE commuters traverse the current Long Bridge, which operates at 98% capacity during peak hours, according to the project page. All told, 1.8 miles of rail along seven new bridges will make up the $2.3 billion overall project, which has been in the works since 2011, per the project page. Construction is set to begin this month with completion aiming for the fourth quarter of 2030, per the FlatironDragados release. 'Skanska is proud to be leading the construction team and work for the Long Bridge North Project, which will vastly improve freight and passenger rail service in the Capital Region,' Michael Viggiano, executive vice president of Skanska USA Civil, said in a release. 'With funding in place and planning and approvals now complete, this highly complex and critical infrastructure project is shovel ready.' Skanska's share of the overall contract is $658 million, according to a company release. FlatironDragados did not specify its share of the contract. Recommended Reading Turner, AECOM Hunt JV lands Dallas convention center job Sign in to access your portfolio
