Skanska’s construction division saw marginal revenue gains, with a strong order intake and solid margin delivery, in the group’s latest trading update.
Skanska construction’s revenue for the nine months to 30 September 2024 was £3 billion (41.8 billion SEK), up 2.2 per cent from £2.92 billion (40.9 billion SEK) over the same period the year previous.
The Sweden-based group generated a profit of £69 million (£962 million SEK) up from £42.2 million (590 million SEK) the previous year.
The group’s construction division saw a strong order intake, especially in building and civil, with order bookings of £3.63 billion (50.8 billion SEK) a 55.4 per cent increase on the nine months the previous year with £2.33 billion (32.7 billion SEK).
Meanwhile, its operating income amounted to £1.1 billion (1.5 billion SEK) (Q3 2023: £1.0 billion (1.4 billion SEK)), representing an operating margin of 3.6 per cent (Q3 2023: 3.3 per cent).
Its group order backlog was also at a historic high with £19.1 billion (267 billion SEK) compared to £17.1 billion (239.7 billion SEK) by Q3 2023.
In terms of Skanska UK’s latest results, in July, the division reported an operation profit slump.
Group revenue for the year ended 31 December 2023 was £1.32 billion, down from £1.37 billion, generating a pre-tax profit of £27.3 million (FY2022: £24.5 million).
Skanska president and CEO Anders Danielsson said: “Construction delivered solid results across all main markets in the third quarter and the order backlog stands at a record level.
“Third quarter cash generation was good, and we maintain a robust financial position.
“In Construction, the project portfolio is producing stable results, delivering a solid construction margin in the third quarter.
Order intake was strong; we are well positioned towards growing sectors and segments in the USA, both in our building and civil businesses.
“In the quarter, significant orders for data centers and infrastructure projects were booked.
“Rolling 12-month book to build was 124 percent, and several large civil project wins are extending the duration of the backlog.
“I am pleased with the strong performance in Construction.
“We have been disciplined when taking on new projects, targeting core market segments in
established geographies and building on our proven selective bidding strategy.
“As activity is slowly returning to the property market, we remain focused on churning the portfolio of completed and ongoing projects and developing our land bank for new project starts.”
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