Skanska orders slide 14% even as construction unit reports record earnings

Swedish construction giant Skanska AB reported a 14% decline in full-year order bookings in its year-end financial statement released on February 6, 2026, as a cooling global market offset record-breaking performance within its core construction division. The Stockholm-based group saw annual orders drop to SEK 179.5 billion from SEK 207.9 billion the previous year, a shift that tightened its book-to-build ratio to 105%. Despite this slowdown in new contracts, the company managed to achieve its highest-ever operating income in construction, reaching SEK 7.09 billion and surpassing internal margin targets. The record earnings in the construction unit were bolstered by a strong fourth quarter, where operating margins hit 5.6%. Much of this success was driven by the group’s focus on high-value infrastructure, particularly data center projects in the United States, which contributed SEK 9.5 billion to Q4 bookings. CEO Anders Danielsson attributed the firm's resilience to its multinational footprint and long-standing presence across the construction value chain, which allowed the core business to thrive even as other sectors faced headwinds. Contrasting the construction success, Skanska’s property development segments faced significant challenges throughout 2025. The Commercial Property Development division saw operating income plummet from SEK 1.12 billion to SEK 259 million following heavy asset impairments, while the Residential Development arm reported a sharp decline in home sales. To appease investors amid the mixed results, the board has proposed a substantial total dividend of SEK 14.00 per share, nearly doubling the previous year's payout through a combination of ordinary and extra dividends.