Anders Danielsson, Skanska president, said: “Our financial targets represent ambitious levels for our business streams and for the group. During the last five years we have improved earnings quality and predictability in our Construction business stream. We have the ambition to continue enhancing the performance and we are now raising the target for the margin. At the same time, we position us for controlled growth.”
The updated margin target reflects Skanska’s focus on improving profitability and operational efficiency in its construction operations. Over the past five years, the company has emphasized stable earnings and predictable performance, and this adjustment signals a continuation of that strategy.
Skanska’s construction arm, which forms the core of the group’s operations, has benefited from improvements in project management, cost control, and disciplined execution across multiple markets. Raising the operating margin target to at least 4% indicates confidence in sustaining these operational gains while pursuing controlled growth opportunities.
The announcement does not affect financial goals for Skanska’s other segments, including project development and property investments, which remain aligned with previous guidance. Analysts note that focusing on a higher margin in construction can provide the group with a stronger foundation for long-term profitability and stability.
Danielsson emphasized that the target is part of a broader strategy to enhance the performance of the construction business while maintaining disciplined growth. Skanska aims to balance profitability with measured expansion, ensuring that new projects are integrated efficiently without compromising financial stability.
By raising the operating margin target, Skanska signals to investors and stakeholders its commitment to higher earnings quality and predictable returns from its core construction activities. The company continues to monitor market conditions closely, adapting its strategies to maintain competitiveness and operational excellence across all regions.
The new target also aligns with the company’s ongoing efforts to strengthen project execution and cost management, providing a framework for sustainable performance improvements. Skanska’s focus on controlled growth indicates a measured approach to expanding its construction portfolio while maintaining robust financial metrics.
Overall, the revised margin target highlights Skanska’s emphasis on enhancing the efficiency and profitability of its construction division, reinforcing the group’s commitment to financial discipline, strategic growth, and long-term operational stability.
