Skanska’s Q3 revenue flat amid property market woes

Skanska’s president and CEO, Anders Danielsson. Photo: Skanska

Swedish construction contractor and developer Skanska has reported flat revenue and a decline in profit in the third quarter of its financial year.

A strong performance in the company’s contracting arm failed to offset the continuing impact of weak property markets.

Skanska’s revenue for the third quarter, running from July to September 2023, was SEK 40.3 billion (€3.4 billion). That marked a 1% fall on the same quarter a year ago.

Meanwhile, Q3 operating income declined to SEK 549,000 (€46,517), down from SEK 1.5 billion (€130,000) in the same period a year before.

Revenue in Skanska’s construction division in the third quarter was SEK 40.9 billion (€3.5 billion), down slightly from the same period the year before when it was SEK 40.2 billion (€3.4 billion).

But its residential arm brought in just SEK 911 million (€77.2 million), down from SEK 1.5 billion (€130 million) the year before.

Construction order bookings amounted to SEK 32.7 billion (€2.7 billion). Adjusted for currency effects, that represented a quarter-over-quarter decline of 29%.

Skanksa president and chief executive officer Anders Danielsson said, “Our third-quarter results are a product of sustained strong performance in the construction stream and the impact of weak property markets.

“Construction continued to perform strongly in the quarter, with a rolling 12-month construction margin above the long-term target. Order intake in the third quarter was solid with strong contributions from operations in the USA.

“In the residential development stream, the weak market sentiment continued with lower-than-normal sales volumes in all markets except for Central Europe, where we maintained good sales volumes and stable performance.”