STOCKHOLM — Global construction and development giant Skanska posted stronger-than-expected results for the third quarter of 2025, with its U.S. construction operations and infrastructure projects helping anchor earnings amid a slowdown in the global commercial property market.
The company reported operating income of 1.36 billion Swedish crowns ($143 million) — about 8% higher than the same period last year. Its construction division performed particularly well, bringing in 1.76 billion crowns in operating income.
However, write-downs in Skanska’s commercial property development unit, totaling 700 million crowns, offset some of those gains. These charges reflected adjustments to the value of its U.S. commercial assets amid a continued downturn in the office real estate sector.
Despite the write-downs, Skanska’s construction backlog remains near record highs, with 264.4 billion crowns ($27.8 billion) in booked work — slightly down from last year’s 267 billion crowns, but still representing about 22 months of future projects in the United States alone.
“I think it’s important there to look at the rolling 12 months,” CEO Anders Danielsson said during the company’s Nov. 6 earnings call, “because when it comes to order bookings it can fluctuate quite a lot between a single quarter.”
Much of that U.S. momentum comes from infrastructure and data center construction, sectors experiencing rapid expansion driven by government investment and the AI technology boom.
“When it comes to data centers, we have done a huge work there, and we are following our customers very closely. But we are also then adapting to their needs,” said CFO Jonas Rickberg. “Right now, we can see that there is a little bit higher demand for more cooling capacity within these data centers and so of course, that we are adapting to.”
This adaptability has positioned Skanska as one of the leading contractors supporting the AI-driven digital infrastructure surge in the U.S., where both public and private sector clients are racing to build high-efficiency, energy-optimized facilities.
Skanska’s overall market outlook remains stable across most regions and segments, including U.S. building and infrastructure markets. However, the firm has revised its view on its European commercial property development unit, upgrading its outlook from “weak” to “stable” for the next 12 months as economic conditions in the Nordics and Europe show early signs of improvement.
The company continues to feel pressure from its property portfolio, particularly in the U.S. office sector, where remote work trends and high interest rates have slowed leasing and valuations. This is not new territory for Skanska — it also recorded millions in write-offs in early 2024 due to similar challenges.
Still, Rickberg expressed confidence in the resilience of Skanska’s premium real estate assets.
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“We feel confident in our portfolio of Class A office buildings,” he said. “And we anticipate employers will continue to call workers back to the office.”
Skanska’s steady growth in the U.S. market reflects its strategy of diversifying into high-demand construction sectors, including transportation infrastructure, healthcare, and digital facilities. Major projects like Northern Kentucky University’s Dorothy Westerman Herrmann Science Center, which recently topped out, underscore the company’s expanding footprint in American higher education and research infrastructure.
The firm’s long-term focus on sustainability and innovation — from low-carbon concrete to circular construction practices — has also bolstered its standing among public and private sector clients.
Even as the global property market remains volatile, Skanska’s construction arm continues to deliver stable returns, leveraging its strong order book and disciplined project management approach.
Skanska’s mixed Q3 results mirror broader trends in the global construction sector — where commercial real estate remains under strain, but infrastructure and technology-related projects are fueling growth.
Across the U.S., Skanska has been a leading builder in AI data centers, renewable energy facilities, and transportation networks, aligning with long-term federal infrastructure funding and the surge in AI-driven industrial demand.
The company’s North American operations now account for nearly half of its total revenue, reflecting the strong performance of the U.S. construction market compared with slower recovery in Europe.
While the firm continues to manage risks tied to global real estate conditions, its diversified project mix and consistent U.S. performance suggest it will remain one of the sector’s most resilient multinational builders through 2026.
Originally reported by Zachary Phillips in Construction Dive.
