Skanska

Skanska

Skanska is one of the world’s largest construction and project development companies and operates on selected home markets in the Nordic region, Europe and the US. Trends such as urbanization and the transition to a more sustainable built environment benefit Skanska, which delivers sustainable buildings and infrastructure that contribute to a better society. 

Construction is the group’s largest business area and includes the construction and renovation of residential and industrial buildings, as well as infrastructure and civil construction. Construction assignments are conducted both for external customers and for Skanska’s development activities. Residential development buys land, carries out project and zone planning, and develops and builds 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. The aim of Investment Properties is to generate stable cash flows and create value through the long-term management of office properties it develops in Stockholm, Gothenburg and Malmö. 

Financial synergies are created as 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

The sustainability strategy focuses on the areas of responsibility, climate and resilience. Targets include a 70% reduction in CO2 emissions from own operations between 2015 and 2030 as well as a 50% reduction in CO2 emissions from the value chain between 2020 and 2030. In addition is the longterm goal of having net zero CO2 emissions in own operations and the value chain by 2045. 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.