In This Article:
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Operating Margin in Construction: 4.5% in Q4, 3.5% for the full year.
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Return on Capital Employed in Project Development: 2.6% on a rolling 12 months.
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Return on Capital Employed in Investment Properties: 4.6% on a rolling 12 months.
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Return on Equity: 10% on a rolling 12 months.
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Dividend Proposed: SEK8 per share.
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Order Backlog: SEK285 billion, record high.
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Revenue in Construction: SEK47 billion in Q4, a 13% increase from last year.
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Operating Income in Construction: Over SEK2 billion in Q4.
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Residential Development Operating Margin: 8%.
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Commercial Property Development Operating Income: Over SEK300 million in Q4.
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Investment Properties Operating Income: SEK74 million in Q4.
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Operating Income for the Group: SEK2.7 billion in Q4.
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Tax Rate: 22% in Q4, 25% for the full year.
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Operating Cash Flow: SEK5.1 billion in Q4.
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Free Working Capital: SEK34.5 billion, record high.
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Liquidity: Available funds of SEK28.6 billion.
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Net Financial Receivable: Increased to SEK12 billion by the end of Q4.
Release Date: February 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Skanska AB (SKBSY) reported a strong fourth quarter with a record high order backlog of SEK285 billion, indicating robust future business.
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The construction segment achieved an operating margin of 4.5% in the fourth quarter, slightly up from 4.4% the previous year, showcasing improved efficiency.
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The company has significantly reduced its carbon emissions by 61% compared to the baseline year 2015, aligning with its sustainability goals.
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Skanska AB (SKBSY) has proposed a dividend of SEK8 per share, reflecting confidence in its financial stability and commitment to returning value to shareholders.
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The US market remains particularly strong for Skanska AB (SKBSY), with a book-to-build ratio of 152%, providing a solid pipeline for future projects.
Negative Points
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The return on capital employed in project development, including residential and commercial, is at 2.6%, below the company's target level.
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The residential development segment's operating margin is at 8%, which is below the target of 10%, indicating room for improvement.
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The commercial property development segment has a leasing ratio of 65% for completed projects, which is a decrease from previous levels.
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The investment properties segment reported a stable but low operating income of SEK74 million, with a leasing ratio of 87%, suggesting challenges in occupancy.
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The market outlook for residential development in the Nordics remains weak, with expectations of a slow recovery to normal levels.