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Skanska's Record-Breaking Q1 Performance Defies Economic Downturn

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Michael Chen

May 8, 2024 - 05:49 am

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Skanska Reports Stellar Growth in First Quarter of 2024 Amidst Challenging Economic Landscape

STOCKHOLM, May 8, 2024 – The internationally acknowledged construction firm, Skanska AB, announced its first-quarter financial results today, showcasing a robust performance with significant growth in several of its key segments. The company held a press and audio conference at 10:00 CET to discuss the detailed financial outcomes and the strategies behind their recent success.

Financial Highlights of Skanska

The financial summary of the quarter revealed that Skanska has generated a revenue of SEK 36.4 billion, marking a substantial increase from the SEK 34.9 billion reported in the previous year. This 5 percent increase in revenue, when adjusted for currency effects, is a clear indicator of the firm's growing business and operational efficiency.

Operating income also saw an impressive rise to SEK 0.5 billion from the previous SEK 0.4 billion. This represented a staggering 32 percent increase after considering currency adjustments. Moreover, earnings per share increased from SEK 1.04 to SEK 1.28, further cementing the company's financial strength.

The operating cash flow from operations, however, showed a decline with a figure of SEK -4.9 billion, against the previous SEK -2.3 billion, as reported following the International Financial Reporting Standards (IFRS).

Skanska's financial stability is further underscored by its adjusted interest-bearing net receivables, which totaled SEK 4.6 billion, a slight decrease from SEK 10.4 billion on December 31, 2023.

Unprecedented Growth in Construction Sector

In an eye-catching development, Skanska's Construction segment recorded order bookings of SEK 46.9 billion, compared to SEK 25.8 billion in the prior year, marking an 83 percent surge after currency adjustments. This remarkable performance resulted in a record-setting order backlog, with a rolling 12-month book-to-build ratio of 117 percent. The operating income in this sector stood at SEK 0.7 billion, yielding an operating margin of 1.8 percent, though it fell slightly from a 2.8 percent margin in the previous year.

Project Development Insights

The Project Development segment's operating income showed negative trends with a loss of SEK -0.1 billion, an improvement over the SEK -0.5 billion loss from the previous year. The return on capital employed in Project Development took a downturn to -3.1 percent, which starkly contrasts with the earlier 4.5 percent gain. Additionally, the return on equity experienced a fall, currently standing at 5.9 percent compared to the previous 13.0 percent.

Live Webcast and Audio Conference

The company executives emphasized the key financial results during a live webcast, which was also made available for later viewing at www.skanska.com/investors. Investors and stakeholders were encouraged to participate in the audio conference to engage with Skanska's leadership directly and ask pertinent questions. The audio conference recommended utilizing the HD Audio link for optimal sound quality. However, attendees also had the option to dial in through various international numbers provided.

Further Information and Downloads

Skanska ensures transparent communication by making its reports and press releases accessible on www.group.skanska.com/investors. Skanska AB has dutifully complied with the EU Market Abuse Regulation by making this information public. The information was released for publication at 07:30 CET on May 8, 2024, under the vigilance of the company's Senior Vice President of Investor Relations.

For those who seek to delve deeper into Skanska's first-quarter achievements, the following downloads are available:

  • Skanska Q1 2024 Report (PDF): A comprehensive document detailing the financial and operational performance of Skanska in the first quarter of 2024.

The report offers investors, analysts, and other stakeholders a deeper insight into the company's strategic and operational progress.

Contact Information for Media and Investors

To field inquiries and maintain effective communication channels, Skanska has designated high-ranking officials to address questions from the media and investment community. These contacts include:

  • Magnus Persson, Executive Vice President and CFO
  • Antonia Junelind, Senior Vice President of Investor Relations
  • Karolina Cederhage, Senior Vice President of Communications
  • Jacob Birkeland, Head of Media Relations and Public Affairs

With these dedicated points of contact, Skanska ensures that inquiries are addressed efficiently and expertly.

Strong Performance Amidst Economic Headwinds

Despite the various challenges confronted by the global economy, Skanska has registered a commendable performance, signaling its resilience in the face of adversity. The company's thoughtful strategic approach has allowed it to navigate economic fluctuations while expanding its market presence and reinforcing its financial backbone.

The uptick in Skanska's revenue and operating income denotes that the company has not only preserved but also enhanced its capacity to generate shareholder value. With forward-looking investments and diligent financial management, Skanska has persisted in delivering quality to its clients and profitability to its investors.

The Construction segment's unprecedented growth in order bookings reflects strong client confidence and endorses Skanska's reputation for delivering large-scale projects successfully. The historic highs in the order backlog have positioned the company as a leader in its field, creating a solid foundation for sustained growth in the foreseeable future. Although the operating margin has seen a marginal decrease, the overall rise in operating income suggests that the company is efficiently managing its expenses while enhancing its market competitiveness.

In the realm of Project Development, the negative figures represent a challenge that Skanska is prepared to address. The improvement seen in reducing losses from the previous year indicates a corrective path that is being taken to optimize this segment's performance. In a bid to bolster returns and equity, Skanska continues to review and refine its strategies to ensure that its investments in project development beget desirable outcomes.

Advanced Accessibility and Transparency for Stakeholders

The live webcast and the provision for an audio conference highlight Skanska's commitment to transparency and stakeholder engagement. By offering multiple channels for participation, the company democratizes access to information, allowing a broader audience to gain insights into its operations. Skanska's proactive approach in utilizing technology for communication purposes ensures that distance and geography pose no barriers to interested parties who wish to remain informed about the company's progress.

Moreover, the immediate availability of press releases and financial reports signifies Skanska's adherence to regulatory requirements and its respect for shareholder rights. The resources made available for download serve as a testament to the company's willingness to share intricate details of its fiscal health and to empower stakeholders with comprehensive data.

Essential Contact Information for Inquisitive Minds

Skanska has not only excelled in its financial and operational endeavors but also in forging strong lines of communication with the media and investing public. By providing direct access to top-tier executives for inquiries, the company emphasizes the importance it places on clear and timely communication. The expertise and readiness of the points of contact reflect Skanska's understanding that constructive dialogue with stakeholders is key to maintaining trust and fostering a positive corporate image.

Future Outlook

While the numbers paint a promising picture, Skanska's strategic focus for the upcoming periods will be critical in maintaining this trajectory of growth. The company's leadership is expected to continue its methodical evaluation of market conditions, investment opportunities, and operational efficiencies to sustain and expand its business operations.

Skanska's established presence and recognition as a leader in the construction industry position it well to harness new opportunities, weather economic cycles, and cater to the growing needs of its global clientele. The fervor with which Skanska undertakes its projects and engages with stakeholders is indicative of a robust corporate culture that prioritizes excellence, accountability, and sustainability.

In conclusion, Skanska's performance in the first quarter of 2024 stands as a beacon of its enduring vigor and strategic vision. As the company marches forward, stakeholders can anticipate Skanska to continue making bold strides in not just weathering challenges but also in shaping the future of the construction industry.

As we look ahead to the future advancements and achievements that Skanska is poised to make, it is clear that the strong foundation built upon strategic growth, fiscal responsibility, and stakeholder engagement will serve the company well. The journey ahead, lined with potential and promise, beckons Skanska to carve new paths to success.

For additional information, press inquiries, or investor relations, please refer to the contacts provided and explore the wealth of information available through Skanska's websites and the links shared in this article.

Contact Skanska:

  • Magnus Persson: +46 10 448 8900
  • Antonia Junelind: +46 10 448 6261
  • Karolina Cederhage: +46 10 448 0880
  • Jacob Birkeland: +46 10 449 1957

Visit Skanska's online platforms for viewing the live webcast, downloading the Q1 2024 report, and staying informed about upcoming releases: