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Skanska raises its profit margin target for construction
18 November 2025
Swedish construction giant Skanska has raised its target operating profit margin to ≥4%.
The news came ahead of the company’s Capital Markets Day in Seattle, USA, where it provides updates on its strategic priorities and the commercial direction of its businesses.
The margin target for the construction business was previously set at 3.5% and is the only one to have been increased.
Other margin targets for project development (10%), investment properties (6%), and return on return on equity for the group (18%) remain the same.
Skanska president and CEO Anders Danielsson said, “Our financial targets represent ambitious levels for our business streams and for the Group. During the last five years we have improved earnings quality and predictability in our Construction business stream.
“We have the ambition to continue enhancing the performance and we are now raising the target for the margin. At the same time, we position us for controlled growth. For Project Development we prioritise restoring profitability before we grow the business streams.”
The strategy and commercial direction will be presented by Danielsson together with Skanska’s group leadership team today (18 November).
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