Skanska Stock Price, News & Analysis

Skanska has secured a USD 150M contract with the New York City Department of Transportation to reconstruct the Williamsburg Bridge. The project, valued at approximately SEK 1.5B, will contribute to the US order bookings for Q3 2022. The extensive work includes repairs on various structural components of the bridge, with construction set to commence in October 2022 and expected completion by December 2025.

Skanska and Railroad Construction Company have secured a USD 150M contract with the Metropolitan Transportation Authority for subway station improvements in New York City. This contract will be reflected in the US order bookings for Q3 2022. The project includes upgrades to the Flushing Line, specifically at the 61st Street-Woodside and 74th Street Broadway stations, alongside additional repairs in Queens. Work commenced in September 2022 and is expected to conclude by May 2025.

Skanska has secured a USD 78M (approx. SEK 770M) contract with the Wake County Public School System to construct a new middle school in Fuquay-Varina, North Carolina. This project marks the final phase of a multi-phase contract, covering the construction of a 74,000 square meter school with various facilities including gymnasiums and classrooms. Construction commenced in May 2022 and is set for completion in 2024, contributing to Skanska's US order bookings for Q3 2022.

Skanska announced a contract amendment with Oregon Health & Science University for its Hospital Expansion Project in Portland, Oregon, valued at USD 63M (approximately SEK 620M). This amendment will contribute to the US order bookings for Q3 2022. The contract involves early site and foundation work along with long lead equipment procurement. Construction is ongoing, with completion expected by June 2023. The overall project commenced in April 2022 and aims for substantial completion by 2026.

Skanska has entered into an agreement with the Kronoberg Region to initiate phase one of construction on Växjö's new emergency hospital, valued at approximately SEK 1.2 billion. This amount will be reflected in the company's order bookings for Sweden in Q3 2022. The project includes around 135,000 square meters of construction, divided into three phases. Work on phase one begins in August 2022, aiming to progress to phase two by autumn 2023, with expected completion by 2029. Skanska's prior involvement in a feasibility study offers valuable insights for this project.

Skanska has signed a USD 67M contract for the renovation and addition of a historic building at the University of Cincinnati, Ohio. This project encompasses a 6,100-square meter renovation and a 13,400-square meter addition, providing modern facilities for science education. Work is scheduled to begin in May 2023 and conclude by March 2025. The contract will impact Skanska's U.S. order bookings for Q2 2022, contributing approximately SEK 640M.

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%.