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Investing.com -- Swedish construction and development company Skanska AB ser. B (ST:SKAb) on Thursday reported a rise in third-quarter profit despite taking significant property impairments in the United States, as its core construction business delivered stronger-than-expected margins.
The company posted operating income of SEK 1.4 billion ($133 million) for the quarter, up 8% from SEK 1.3 billion in the same period last year. However, this figure included SEK 658 million in impairments on US properties, without which the company would have significantly exceeded analyst expectations.
Revenue increased to SEK 43.7 billion from SEK 42.8 billion a year earlier, representing an 8% rise when adjusted for currency effects.
Earnings per share jumped to SEK 3.07 from SEK 2.28 in the third quarter of 2024.
Skanska’s construction division was the standout performer, reporting an operating margin of 4.2% versus analyst expectations of 3.9%, with operating income reaching SEK 1.8 billion compared to SEK 1.5 billion a year ago.
However, order bookings in construction fell to SEK 39.9 billion from SEK 50.8 billion in the same quarter last year, representing a 17% decrease when adjusted for currency effects.
"Our construction business continues to demonstrate strong operational performance, which helped offset challenges in our project development segment," said Jonas Rickberg, Executive Vice President and Chief Financial Officer of Skanska.
The company’s project development division posted an operating loss of SEK 0.3 billion, unchanged from the same period last year, with results weighed down by the property impairments.
Residential development showed mixed results with house sales of 383 units in the quarter, down from 458 in the same period last year, while house starts increased significantly to 572 from 186 in the third quarter of 2024.
Skanska maintained a solid financial position with adjusted interest-bearing net receivables of SEK 9.3 billion, slightly down from SEK 9.7 billion at the end of June 2025. The company’s return on equity improved to 10.0% from 7.9% a year earlier.