Despite global economic uncertainty and a moderated forecast for the U.S. market, Sweden-based construction giant Skanska remains optimistic about its long-term opportunities—particularly in civil infrastructure—according to its first-quarter 2025 earnings report.

During a May 7 investor call, CEO Anders Danielsson announced that the company had downgraded its U.S. commercial construction outlook from “strong” to “stable.” While the U.S. remains one of Skanska’s most important markets, Danielsson acknowledged that some customers are delaying investment decisions due to a mix of economic pressures and market hesitation.

“We still see a pipeline, but we can also see that it takes a little bit longer time for our customers to take the decision to invest and start a project. But it’s stable,” Danielsson said.

Civil Construction Provides a Bright Spot

Even as commercial construction shows signs of cooling, civil work in the U.S. remains a reliable growth engine for the firm, buoyed by ongoing federal infrastructure spending.

“We can see a very healthy [civil] pipeline, we don’t see any decrease in activities here,” Danielsson added, citing projects funded through federal initiatives like the Infrastructure Investment and Jobs Act.

Skanska’s confidence in the civil sector reflects broader industry trends as public-sector investments help balance fluctuations in private-sector development. With robust funding in transportation, water, and utility infrastructure, Skanska is well positioned to benefit.

Tariffs and Market Hesitation Cloud Near-Term Picture

Danielsson said that while Skanska continues to see opportunities across geographies, persistent economic uncertainty has contributed to a more cautious investment climate, particularly in the U.S.

“It’s not a specific segment or specific clients, it’s more that they feel some uncertainties in the market,” Danielsson explained. He attributed part of that uncertainty to tariffs—such as those imposed under former President Donald Trump—which have complicated cost projections and project planning for owners.

Nonetheless, Danielsson emphasized that Skanska’s decentralized structure helps the company weather such fluctuations more effectively.

Skanska’s Strong Backlog and Earnings Show Resilience

While the U.S. outlook has shifted slightly, Skanska’s broader financial performance paints a picture of resilience. The company reported an operating income of approximately 1.1 billion Swedish crowns (roughly $110.4 million USD) for the quarter ending March 2025. That figure marks a 118% increase compared to the same quarter in 2024.

Construction continues to be the primary revenue driver, with the company’s building unit generating nearly 1.2 billion crowns in operating profit in Q1 alone. The firm’s total order backlog reached 263.6 billion crowns, representing a historically high level of committed work. Within the U.S., Skanska currently has about 23 months of booked construction activity, reinforcing long-term stability.

Skanska CFO Jonas Rickberg, who assumed his role in January, praised the company’s operational strength and backlog performance.

“Overall very strong,” Rickberg said of the construction division's performance during the quarter.

Industry Peers See Similar Conditions

Skanska’s measured tone was echoed by other large contractors. CEOs including Fluor’s Jim Breuer and AECOM’s Troy Rudd acknowledged some project delays due to tariffs, but generally reported confidence in their backlogs and outlooks. Both leaders noted that disruptions remained limited and that client demand remained steady across most sectors.

While Skanska may be adjusting expectations in certain areas, its continued investments, stable operations, and strong civil pipeline suggest it is more than capable of navigating short-term headwinds.

Originally reported by Zachary Phillips in Construction Dive.