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Skanska is expecting continued growth in the US construction market while anticipating a slight pullback in Europe. (Image: Adobe Stock)

In construction activities, order bookings equalled €14.8 billion (US$15.9 billion) with a rolling 12-month book-to-build ratio of 103%. According to Skanska, its order backlog remained high.

“It’s at a historically high level,” said Skanska president and CEO Anders Danielsson, adding the construction backlog sits at €20.5 billion (US$22 billion).

For the full year, operating income amid construction activities amounted to €499 million, which represents an operating margin of 3.5%.

During a broadcast announcement of the year-end results, Danielsson noted the margin was on the company’s target and represented an “overall strong performance” in the construction segment.

“The construction stream ended the year strongly with a high operating margin and solid order intake,” wrote Danielsson in the report. “Operating margin for the full year ended in line with our long-term target, with robust performance in the Nordics and strong delivery from the US operations. The order backlog remained high, supported by strong order intake in the US and Norway during the year.”

Strong US construction market

Looking ahead, Skanska is expecting continued growth in the US construction market while anticipating a slight pullback in Europe.

“We have a strong performance in the US market, both when it comes to US building and civil, which is good to see,” said Danielsson.

“The US market continues to show strength, especially the infrastructure segment, which is supported by strong federal funding programs,” noted the firm’s 2023 report.

“The building market in many European countries is characterised by lower activity than normal and increased competition. The civil segment typically provides stability over the cycle, and we have strengthened our outlook for the civil market in Norway based on expected robust spending in the infrastructure, energy and water sectors.”

Danielsson noted the activity has been weakest in Finland and the UK.

The report noted that Skanska anticipates a tepid residential development market in the Nordics and the rest of Europe and a weaker commercial property development market in Europe and the US.