Skanska

Skanska

Skanska is one of the world’s leading construction and project development companies focusing on selected home markets in the Nordic region, Europe and USA. Supported by global urbanization and demographic trends and by being a leader in sustainability, Skanska offers intelligent solutions to build a better society. 

Construction is the group’s largest business area and includes residential and non-residential building construction as well as civil construction. Construction assignments are conducted both for external customers and for Skanska’s development activities. Residential development initiates and develops residential projects primarily for sale to private customers. Commercial property development initiates, develops, leases and sells commercial real estate projects, with a main focus on offices. During 2022, Skanska launched a new business area, Investment Properties, which aims to establish a long-term property portfolio of office properties in Stockholm, Gothenburg and Malmö. 

Financial synergies is created because construction is conducted with negative working capital and generates a positive cash flow over time. This cash flow together with the profits generated by the group are invested in project-development operations, thus creating a healthy return on invested capital and also generating new assignments for the construction operations.   

Sustainability

Together with customers, suppliers and business partners, Skanska aims to lead the development towards a better and more sustainable future. They act forcefully in the transition to a fossil-free society. They also contribute to positive social development by providing prerequisites for secure areas and good living conditions. Skanska’s climate targets have been scientifically validated by the Science Based Targets initiative. 

Financial objectives

Skanska’s updated financial objectives are that the group will achieve an annual return on equity of at least 18% and that the operating margin for construction will be at least 3.5%. In addition, project development will aim to generate an annual return on capital employed of at least 10% and Investment Properties at least 6%. Skanska’s target for financial strength is that its adjusted interest-bearing net debt should not exceed SEK 10 bn. Dividend payments should be between 40 and 70% of profit after tax.