Skanska Stock Price, News & Analysis

Skanska has secured a USD 70M contract to build a new undergraduate science laboratory at Virginia Tech in Blacksburg, Virginia. This project, encompassing approximately 102,000 square feet, addresses the university's increasing enrollment and will feature nearly 30 flexible laboratories for various disciplines. Construction is set to start in April 2022 and finish by April 2024. This contract will contribute to US order bookings for Q2 2022, enhancing Skanska's portfolio in educational infrastructure.

Skanska has divested the office building Nowy Rynek D in Poznan, Poland, to Eastnine for EUR 121 million (approximately SEK 1.3 billion). The transaction will be recorded in Q2 2022, with the property transfer occurring immediately. Nowy Rynek D features around 39,000 square meters of leasable area, with 96% leased to major tenants, including Allegro and Rockwool. The building has received multiple certifications, including WELL Health & Safety, and is pursuing LEED Core & Shell certification. This marks Skanska's third commercial development in Poznan.

Skanska's Q1 2022 Financial Results:

Skanska reported a revenue of SEK 37.8 billion, a 3% increase adjusted for currency effects compared to Q1 2021. However, operating income dropped 23% to SEK 1.9 billion, with earnings per share at SEK 3.62, down from 4.59. Operating cash flow was negative at SEK -2.8 billion. Order bookings in Construction fell 20% to SEK 30.0 billion, yet the order backlog remained stable at SEK 207.6 billion. Operating margin in Construction decreased slightly to 2.3%. Return on equity also declined to 18.3%.

Skanska, in partnership with R.J. Industries, has secured a USD 309M contract with the NYC Department of Environmental Protection for work at the Hunts Point Wastewater Resource Recovery Facility in the Bronx, New York. Skanska's share amounts to USD 248M (approximately SEK 2.3 billion), which will be reflected in the US order bookings for Q1 2022. The project includes various construction tasks such as concrete installation and landscaping, with a scheduled completion date of March 2026.

Skanska, in collaboration with JH Lynch, has secured a contract valued at USD 167M to reconstruct Route 146 in Rhode Island, with Skanska's share being USD 84M (~SEK 780M). This project will include significant infrastructure improvements such as a new flyover bridge, roadway reconstruction, and drainage construction over approximately 13 kilometers, enhancing traffic safety and reducing congestion. Construction is set to commence in late 2022 and conclude by November 2025.

Skanska has signed a USD 78M contract with Bon Secours - St. Francis Medical Center for renovating and expanding its acute care services facility in Midlothian, Virginia. The project includes a two-floor addition for a nursing unit and critical care rooms, as well as renovations of existing spaces for an observation unit and a Mother-Infant unit. Construction began in December 2021 and is scheduled for completion in April 2024. This contract will contribute to US order bookings for the first quarter of 2022.

Skanska has entered into a significant contract worth USD 65M (approximately SEK 600M) for additional work on a data facility in western USA with an existing client. This contract will be included in the US order bookings for the first quarter of 2022, reflecting ongoing business momentum. The project is currently in progress and is expected to be completed by January 2023.

Skanska, in partnership with Traylor Bros, has secured a contract worth USD 1.56B with NJ TRANSIT to construct the Portal North Bridge in Hudson County, New Jersey. Skanska's portion amounts to USD 1.09B (approximately SEK 9.4B), set to be recorded in Q4 2021 order bookings. The project entails replacing the existing bridge with a new, higher structure, spanning nearly 2.5 miles, scheduled for completion by Q3 2027.

Skanska has divested a portfolio of two office projects in Wroclaw and Krakow, Poland, for EUR 128M (approximately SEK 1.3 billion). The buyer is Stena Real Estate BV, with the transaction expected to be recorded in the first quarter of 2022 and property transfer in the second quarter. The portfolio includes the Centrum Południe project, with 69.5% of its 28,200 square meters leased, and the High5ive complex, 99% leased. Both projects adhere to ESG principles and have received LEED Platinum certification.