November 12, 2025 – Stockholm-based construction giant Skanska reported solid Q3 2025 earnings driven largely by its US construction business, demonstrating continued strength in the North American market despite headwinds in other sectors. The company's Q3 results reflect robust demand for infrastructure and data center construction, revealing key trends reshaping the construction industry.
Skanska reported operating income of 1.36 billion Swedish crowns ($143 million USD) for Q3 2025, approximately 8% higher than the same period last year. The construction business specifically reported 1.76 billion crowns in operating income, underscoring the segment's strength.
However, the company's total income was negatively impacted by 700 million crowns in write-downs from its commercial property development unit, primarily related to adjustments in the value of commercial real estate assets in the United States. Despite these charges, construction performance remained a bright spot in the earnings report.
Skanska's construction backlog remained historically elevated, providing visibility into future revenue streams. The company reported 264.4 billion crowns in total construction backlog, representing a slight decline from 267 billion crowns in the same quarter last year. More significantly, Skanska stated it has 22 months of construction work on the books in the United States, reflecting sustained demand for its services.
During an earnings call on November 6, 2025, CEO Anders Danielsson noted the importance of examining rolling 12-month trends rather than single quarters, as order bookings can fluctuate significantly period to period. This longer-term view highlights consistent, sustained demand for construction services.
Much of Skanska's backlog growth is concentrated in two major sectors that have performed exceptionally well: infrastructure and data centers. Both sectors are experiencing unprecedented demand, largely driven by massive investments in artificial intelligence and related technologies.
CFO Jonas Rickberg explained during discussions with Construction Dive that the company has undertaken substantial work adapting to data center requirements. "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," Rickberg noted. "Right now, we can see there is little bit higher demand for more cooling capacity within these data centers and so of course, that we are adapting to."
This adaptation includes specialized expertise in:
Skanska maintained largely unchanged market outlooks for the next 12 months across nearly every category and region, with one notable exception. For its commercial property development unit:
The commercial property development sector remains the weakest segment for Skanska. The company's write-off of 700 million crowns is not its first: Skanska had to write off millions in January 2024 due to a weak office market, particularly severe in the United States.
Despite these challenges, CFO Rickberg expressed confidence in Skanska's portfolio of Class A office buildings. He stated the company anticipates employers will continue calling workers back to the office, suggesting a recovery in this segment. However, the current market remains challenging, and the company is taking a cautious approach to property valuations.
Skanska's strong construction performance and expanded backlog signal continued opportunity in the construction market, particularly for firms positioned in infrastructure and data center specialization. The company's emphasis on adapting to customer needs and specialized technical requirements suggests contractors should consider developing or expanding capabilities in:
Skanska's results reinforce broader industry trends:
Skanska's Q3 2025 earnings demonstrate that construction remains a bright spot in the global economy, particularly in the United States. With 22 months of work booked and strong demand in infrastructure and data centers, the contractor is well-positioned for continued operations. However, the company's challenges in commercial property development serve as a reminder that different market segments are experiencing divergent trajectories.
For the broader construction industry, Skanska's performance underscores the enduring importance of positioning in growth sectors and maintaining the flexibility to adapt as customer needs evolve.
Sources: Skanska Q3 2025 Interim Report and Earnings Presentation, November 6, 2025; Construction Dive reporting, November 12, 2025.
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