Skanska Q2 misses on profit as orders drop, residential activity picks up

Published 18/07/2025, 11:48

Investing.com -- Skanska’s (ST:SKAb) order bookings declined 6.5% year-on-year to SEK 56.7 billion in the second quarter of 2025, while quarterly growth of 44% and an 8.3% beat versus consensus provided some relief, the company posted on Friday. 

Construction operating margins reached 3.9%, exceeding the 3.6% consensus, with operating income rising to SEK 1.67 billion from SEK 1.54 billion a year earlier. 

Segment revenue dipped 1.1% to SEK 43.1 billion. Negative working capital stood at 18.2% of sales, widening from 17.7% in the previous quarter.

Group revenue totaled SEK 44.6 billion, down 6% year-on-year but 2.9% above consensus. 

Operating income dropped 29.7% to SEK 1.81 billion, narrowly missing estimates. Diluted earnings per share fell to SEK 3.69 from SEK 5.03, 3% below the SEK 3.81 consensus.

In residential development, house sales reached 409 units, up from 365 in Q1 but down from 515 a year earlier. 

Housing starts increased to 420 units from 203 the previous quarter and 37 in Q2 2024. The production sales rate improved to 52% from 49%, while completed unsold homes rose to 516 from 457 in Q1. 

Residential revenue came in at SEK 2.01 billion, with operating income recovering to SEK 226 million from a SEK 11 million loss a year ago.

Commercial property divestments totaled SEK 672 million, recovering from SEK 25 million in Q1 but lower than SEK 5.97 billion a year earlier. 

The completed commercial property portfolio stood at 23 assets, with the lease rate improving to 74% from 71%.

Investment properties held a carrying value of SEK 8.17 billion, nearly flat compared to Q1. 

Economic occupancy declined slightly to 83% from 84%, while operating income in the segment fell to SEK 80 million from SEK 108 million a year earlier.

Skanska closed the quarter with an adjusted net cash position of SEK 9.65 billion, down from SEK 11.6 billion in Q1. 

Jefferies noted this was above forecast due to smaller working capital outflows and stronger net divestment inflows.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.