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Interim / Quarterly Report • Aug 29, 2024
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Interim / Quarterly Report
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Q2 2024
Press release, July 19, 2024, 7:30 a.m. CEST
We build for a better society
Interim report, second quarter 2024
Highlights according to segment reporting
- — Revenue amounted to SEK 47.4 billion (39.9); adjusted for currency effects, revenue increased 18 percent.
- — Operating income amounted to SEK 2.6 billion (1.3); adjusted for currency effects, operating income increased 94 percent.
- — Earnings per share amounted to SEK 5.03 (2.96).
- — Operating cash flow from operations amounted to SEK 0.3 billion (-1.8) for the period according to IFRS.
- — Adjusted interest-bearing net receivables(+)/net debt(-) totaled SEK 1.8 billion (Mar 31, 2024: 4.6).
- — Order bookings in Construction amounted to SEK 60.7 billion (63.2). Adjusted for currency effects, order bookings quarter over quarter decreased -5 percent. Rolling 12-month book-to-build ratio was 114 percent (115) with the order backlog reaching a historic high.
- — Operating income in Construction amounted to SEK 1.5 billion (1.4), representing an operating margin of 3.5 percent (3.4).
- — Operating income in Project Development amounted to SEK 1.1 billion (0.0).
- — Return on capital employed in Project Development was -1.3 percent (2.3).
- — Return on equity was 7.3 percent (11.1).
Performance analysis
Tables referring to segment reporting are in shaded background. For more information see page 17. For definitions of non-IFRS financial measures see pages 18-20.
| SEK M | Apr-Jun 2024 | Apr-Jun 2023 | Rolling 12 months | Jan-Dec 2023 |
|---|---|---|---|---|
| Revenue | ||||
| Construction | 43,589 | 40,584 | 162,316 | 160,636 |
| Residential Development | 2,150 | 1,649 | 6,956 | 5,013 |
| Commercial Property Development | 6,293 | 857 | 10,863 | 5,331 |
| Investment Properties | 72 | 45 | 242 | 186 |
| Central and Eliminations | -4,725 | -3,194 | -14,375 | -14,114 |
| Total | 47,378 | 39,940 | 166,001 | 157,052 |
| Operating income | ||||
| Construction | 1,542 | 1,391 | 5,419 | 5,632 |
| Residential Development | -11 | 49 | -984 | -1,262 |
| Commercial Property Development | 1,067 | -15 | -307 | -1,365 |
| Investment Properties | 108 | 6 | 60 | -62 |
| Central | -159 | -73 | 303 | 290 |
| Eliminations | 33 | -27 | 92 | -3 |
| Operating income | 2,580 | 1,331 | 4,583 | 3,231 |
| Net financial items | 146 | 133 | 693 | 601 |
| Income after financial items | 2,725 | 1,464 | 5,275 | 3,832 |
| Income taxes | -656 | -234 | -1,073 | -560 |
| Profit for the period | 2,069 | 1,229 | 4,202 | 3,272 |
| Earnings for the period per share, SEK | 5.03 | 2.96 | 10.19 | 7.89 |
| Revenue for the period according to IFRS | 45,051 | 42,292 | 170,132 | 167,168 |
| Operating income for the period according to IFRS | 2,093 | 2,194 | 5,016 | 5,282 |
| Earnings for the period per share according to IFRS, SEK | 4.13 | 4.72 | 11.31 | 12.17 |
| Operating cash flow from operations | 342 | -1,802 | 759 | 1,148 |
| Interest-bearing net receivables(+)/net debt(-) | 3,243 | 3,758 | - | 9,037 |
| Return on capital employed in Project Development, % ¹ | -1.3 | 2.3 | -1.3 | -3.7 |
| Return on capital employed in Investment Properties, % ¹ | 1.2 | 5.5 | 1.2 | -1.6 |
| Adjusted interest-bearing net receivables(+)/net debt(-) | 1,838 | 4,415 | 1,838 | 10,363 |
| Return on equity, % ¹ | 7.3 | 11.1 | 7.3 | 5.8 |
1 Rolling 12 months.
Revenue
Operating income
Operating income per segment Jun 30, 2024, R-12
- Residential Development
- Commercial Property Development Investment Properties
Operating cash flow from operations
CEO comment
We delivered solid results in the second quarter. Highlights include strong performance in Construction, five properties divested by Commercial Property Development, and one landmark building acquired for our Investment Properties portfolio.
Construction had a good second quarter. The US operations, currently half of sales, lead revenue growth and margin delivery for the business stream. In the Nordics and Europe, we remain disciplined in bidding activities. Continuously monitoring pipelines, actively adjusting costs and rightsizing organizations facing weaker market conditions, enabled a solid margin delivery. Order intake was strong, resulting in a rolling 12-month book-tobuild well above 100 percent and a record high order backlog. Large infrastructure projects with longer execution periods are extending the maturity profile of the order backlog.
In Residential Development, the Nordic housing market is slowly recovering and the number of sold homes in our operations increased compared to the same period last year. Profitability remains lower than normal and BoKlok is negatively impacting operating income in the quarter, while the Central European operation continues to deliver strong results. We remain selective with new project starts.
In Commercial Property Development a gradual improvement of the real estate investor markets in the Nordics and Central Europe resulted in five divestments, four external and one internal, in the second quarter. These deals demonstrate the demand for our high-quality properties, but markets are recovering at different paces. Leasing was good in the second quarter, with material contribution from all geographies.
We continue to build up the Investment Properties portfolio with the first acquisition recorded in Gothenburg. Citygate is a multi-tenant landmark office building that has achieved the highest level of sustainability certification for LEED and WELL. Our Investment Properties portfolio now consists of six properties that all performed well in the second quarter.
In the second quarter, rolling 12-months carbon emissions from our own operations, scope 1 and 2, came in 58 percent lower than the 2015 benchmark year.
In summary, second quarter performance was solid, both operationally and financially. Our construction project portfolio remains stable, and we stay committed to the strategy that has enabled the current performance. I am pleased to see that property markets are gradually improving, but we are prepared for recovery to take time and markets to stay sensitive to adverse impacts. Going forward, we will keep a robust financial position and continue to adapt to changes in the markets. At the same time, we are staying close to our customers to ensure an attractive offering for them. This approach will continue to drive our long-term performance.
Anders Danielsson President and Chief Executive Officer
Skanska target performance (rolling 12-month basis)
3.3% -1.3% 1.2%
Target ≥3.5% Target ≥10% Target ≥6%
Operating margin – Construction Return on capital employed – Project Development
Return on equity Adjusted net debt(-)/net cash(+) Climate target (scope 1 and 2)
7.3% +1.8 SEK bn -58%
Return on capital employed – Investment Properties
Reduction of CO2 compared with 2015
Target ≥18% Limit SEK -10 bn Target -70% (scope 1 and 2) by 2030
Market outlook, next 12 months
The market outlook aims to describe the situation in markets that are relevant for our operations. This applies to segments, sectors and geographies.
- Weaker outlook compared to previous quarter Unchanged outlook compared to previous quarter Improved outlook compared to previous quarter.
-
Very strong market coming 12m Strong market coming 12m Stable market coming 12m
-
- Weak market coming 12m Very weak market coming 12m
Construction
The construction market outlook is strong for the US, both for the building and civil infrastructure segments. The latter is boosted by federal funding programs directed to investments in infrastructure, such as rails, roads and bridges. In the Nordics and Europe, we maintain our view of a mostly stable civil market while our outlook for the building segment is more cautious. Sectors like energy, industry and defense provide opportunities while the private residential and commercial development markets continue to see low volumes of project starts.
| Building | Civil | |
|---|---|---|
| Nordics | ||
| Sweden | ||
| Norway | ||
| Finland | ||
| Europe | ||
| Central Europe | ||
| United Kingdom | ||
| USA | ||
| USA |
Residential Development
The Nordic housing market is gradually improving from very low activity as consumer confidence is increasing. We expect recovery to take time and be difficult to predict, with supply in the secondhand market increasing as market returns and households remaining sensitive to adverse economic impacts. Market conditions for the low-price segment is challenging. The Central European market is solid with good activity both in Poland and Czech Republic.
| Nordics | |
|---|---|
| of which Sweden | |
| Europe |
Commercial Property Development
Reduced macro-economic uncertainty and improved debt markets are expected to gradually improve the real estate investor market. The Nordics and Central Europe will lead the recovery while the US investor market will take more time. We expect large local variations to remain with low demand for certain markets and segments. We observe early positive signals in the US leasing market with increased tenant traction on high quality premises. The expectation of little Grade A office supply being brought to the market in the coming years and increased activity among companies seeking high quality, amenitized offices could stimulate the market going forward.
| Nordics | |
|---|---|
| Europe | |
| USA |
Investment Properties
Occupier demand is polarized, with stronger demand for quality space in buildings with high sustainability standards. Tenants are prioritizing flexibility and move-in ready offices. The market remains competitive, but rents are expected to remain mostly stable.
| Nordics | |
|---|---|
| Sweden |
Performance analysis
Group
Revenue and operating income, rolling 12 months
Revenue and earnings
| Apr-Jun | Apr-Jun | Rolling 12 | Jan-Dec | |
|---|---|---|---|---|
| SEK M | 2024 | 2023 | months | 2023 |
| Revenue | 47,378 | 39,940 | 166,001 | 157,052 |
| Operating income ¹ | 2,580 | 1,331 | 4,583 | 3,231 |
| Net financial items | 146 | 133 | 693 | 601 |
| Income after financial items | 2,725 | 1,464 | 5,275 | 3,832 |
| Income taxes | -656 | -234 | -1,073 | -560 |
| Profit for the period | 2,069 | 1,229 | 4,202 | 3,272 |
| Earnings for the period per share, SEK ² | 5.03 | 2.96 | 10.19 | 7.89 |
| Earnings for the period per share according to IFRS, SEK ² |
4.13 | 4.72 | 11.31 | 12.17 |
1 Including Central and Eliminations. 2 Earnings for the period attributable to equity holders divided by the average number of shares outstanding.
Changes and currency rate effects
| Change in SEK | Change in local currency | Currency effect | |
|---|---|---|---|
| Apr-Jun 2024 / Apr-Jun 2023 | |||
| Revenue | 19% | 18% | 1% |
| Operating income | 94% | 94% | 0% |
| Rolling 12 months 2024 / Rolling 12 months 2023 | |||
| Revenue | 8% | 7% | 1% |
| Operating income | -32% | -32% | -0% |
Revenue increased 19 percent and amounted to SEK 47.4 billion (39.9); adjusted for currency effects, revenue increased 18 percent. Operating income increased 94 percent and amounted to SEK 2,580 M (1,331); adjusted for currency effects, operating income increased 94 percent.
The Central stream totaled SEK -159 M (-73), of which SEK 55 M (138) relate to the PPP portfolio. The comparable period included results from the BoKlok production facility of SEK -20 M, which is reported in the Residential Development stream as of January 1, 2024.
Revenue per segment, rolling 12 months
Operating income per segment, rolling 12 months
Net financial items amounted to SEK 146 M (133).
Income taxes for the period amounted to SEK -656 M (-234). Effective tax rate in the second quarter amounted to 24 percent (16). The difference in effective tax rate is mostly explained by changes in the portion of income in markets with a higher tax rate and the amount of tax-exempt transactions.
Cash flow
Group
Operating cash flow from operations
Operating cash flow
| Apr-Jun | Apr-Jun | Rolling 12 | Jan-Dec | |
|---|---|---|---|---|
| SEK M | 2024 | 2023 | months | 2023 |
| Cash flow from business operations | 1,638 | 1,652 | 5,913 | 6,406 |
| Change in working capital | -372 | -1,415 | -3,554 | -217 |
| Net divestments(+)/investments(-) | -421 | -1,150 | 839 | -2,214 |
| Cash flow adjustment | 176 | -64 | -52 | -405 |
| Cash flow from business operations before taxes paid |
1,022 | -977 | 3,145 | 3,570 |
| Taxes paid in business operations | -375 | -673 | -2,047 | -1,733 |
| Cash flow from financing activities | -305 | -152 | -339 | -689 |
| Operating cash flow from operations | 342 | -1,802 | 759 | 1,148 |
| Strategic net divestments(+)/investments(-) | - | 20 | -1 | 39 |
| Dividend etc. | -2,327 | -3,177 | -2,682 | -3,611 |
| Cash flow before change in interest bearing receivables and liabilities |
-1,985 | -4,959 | -1,924 | -2,424 |
| Change in interest-bearing receivables and liabilities excluding lease liabilities |
1,164 | 1,624 | 7,043 | 10,373 |
| Cash flow for the period | -821 | -3,335 | 5,119 | 7,949 |
Operating cash flow from operations for the period amounted to SEK 342 M (-1,802), the change is mainly explained by changes in working capital and lower net investments. Taxes paid in business operations amounted to SEK -375 M (-673) for the period. The dividend that was approved at the AGM in the first quarter, was distributed during the second quarter.
Commercial Property Development assets sold but not transferred will have a positive effect on cash flow of SEK 7.8 billion during the years 2024 to 2026, with SEK 1.5 billion during the second half of 2024 and SEK 6.3 billion during 2025-2026.
Free working capital in Construction
Free working capital in Construction amounted to SEK 28.0 billion (28.1). Average free working capital in relation to Construction revenue in the past 12 months was 17.3 percent (18.0), explained by favorable cash flow profiles in several projects and continued focus on cash generation in the Construction stream. Cash flow due to changes in working capital in Construction amounted to SEK 588 M (-1,013).
Financial position
Adjusted interest-bearing net receivables(+)/net debt(-)
Balance sheet - Summary
| Jun 30, | Jun 30, | Dec 31, | |
|---|---|---|---|
| SEK bn | 2024 | 2023 | 2023 |
| Total assets | 161.5 | 157.0 | 155.2 |
| Total equity | 58.3 | 57.1 | 56.3 |
| Interest-bearing net receivables (+)/net debt (-) | 3.2 | 3.8 | 9.0 |
| Adjusted interest-bearing net receivables(+)/net debt(-) | 1.8 | 4.4 | 10.4 |
| Capital employed, closing balance | 81.1 | 75.3 | 77.4 |
| Equity/assets ratio, % | 36.1 | 36.4 | 36.3 |
Change in interest-bearing net receivables/net liabilities
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | |
|---|---|---|---|---|---|
| SEK M | 2024 | 2023 | 2024 | 2023 | 2023 |
| Opening balance interest-bearing net receivables(+)/net debt(-) |
4,886 | 8,406 | 9,037 | 10,306 | 10,306 |
| Cash flow for the period | -821 | -3,335 | -6,330 | -3,501 | 7,949 |
| Less change in interest-bearing receivables and liabilities |
-1,164 | -1,624 | -580 | -3,910 | -10,373 |
| Cash flow before change in interest bearing receivables and liabilities |
-1,985 | -4,959 | -6,911 | -7,411 | -2,424 |
| Translation differences, net receivables/net debt |
221 | -235 | 46 | -435 | -52 |
| Remeasurements of pension liabilities | -93 | 425 | 710 | 1,089 | 255 |
| Interest-bearing liabilites acquired/divested |
- | 5 | - | 5 | 21 |
| Other changes, interest-bearing net receivables/net debt |
213 | 115 | 360 | 204 | 931 |
| Change in net interest-bearing receivables and liabilities |
-1,643 | -4,648 | -5,794 | -6,548 | -1,269 |
| Closing balance interest-bearing net receivables(+)/net debt(-) |
3,243 | 3,758 | 3,243 | 3,758 | 9,037 |
| Restricted cash | -7,710 | -6,296 | -7,710 | -6,296 | -5,769 |
| Pension liability, net | -927 | -766 | -927 | -766 | 49 |
| Lease liabilities | 7,232 | 7,718 | 7,232 | 7,718 | 7,047 |
| Closing balance adjusted interest-bearing net receivables(+)/net debt(-) |
1,838 | 4,415 | 1,838 | 4,415 | 10,363 |
Adjusted interest-bearing net receivables (+)/net debt (-) amounted to SEK 1.8 billion (Mar 31, 2024: 4.6). Interest-bearing net receivables amounted to SEK 3.2 billion (Mar 31, 2024: 4.9) and include SEK 7.2 billion in interest-bearing lease liabilities according to IFRS 16.
At the end of the quarter, cash, cash equivalents and committed unutilized credit facilities amounted to SEK 21.0 billion (Mar 31, 2024: 21.5), of which SEK 17.4 billion (Mar 31, 2024: 16.4) is available within one week. The Group central loan portfolio amounted to SEK 10.5 billion (Mar 31, 2024: 9.8) consisting of SEK 5.6 billion in Medium-Term Notes (MTN) with an average maturity of 3.0 years and SEK 4.9 billion in bilateral loans with an average maturity of 2.8 years. On Jun 30, 2024, the Group's unutilized credit facilities amounted to SEK 9.5 billion. The central loan portfolio, including committed unutilized credit facilities, had an average maturity of 3.3 years (Mar 31, 2024: 3.2).
At the end of the quarter, capital employed amounted to SEK 81.1 billion (Mar 31, 2024: 78.5).
Equity
Changes in equity
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | |
|---|---|---|---|---|---|
| SEK M | 2024 | 2023 | 2024 | 2023 | 2023 |
| Opening balance | 56,657 | 53,290 | 56,347 | 55,255 | 55,255 |
| Dividend to shareholders | 0 | 0 | -2,257 | -3,081 | -3,081 |
| Other changes in equity not included in total comprehensive income for the period |
18 | 22 | 54 | 0 | -65 |
| Profit for the period | 1,701 | 1,952 | 2,181 | 2,548 | 5,029 |
| Other comprehensive income | |||||
| Translation differences | -8 | 1,347 | 1,277 | 1,284 | -974 |
| Effects of remeasurements of pensions | -119 | 440 | 656 | 1,039 | 209 |
| Effects of cash flow hedges | 3 | 25 | -6 | 32 | -25 |
| Closing balance | 58,251 | 57,076 | 58,251 | 57,076 | 56,347 |
Adjusted equity
| Jun 30, | Jun 30, | Dec 31, | |
|---|---|---|---|
| SEK bn | 2024 | 2023 | 2023 |
| Equity attributable to equity holders | 58.1 | 56.9 | 56.2 |
| Unrealized surplus value in Residential Development | 3.2 | 4.1 | 3.1 |
| Unrealized Commercial Property Development gains | 4.0 | 8.1 | 5.1 |
| Effect in unrealized equity in PPP portfolio | 0.8 | 1.0 | 0.8 |
| Adjusted equity | 66.1 | 70.0 | 65.2 |
The Group's equity amounted to SEK 58.3 billion (57.1), resulting in an equity/assets ratio of 36.1 percent (36.4) and a net debt/equity ratio of -0.1 (-0.1).
Total adjusted equity amounted to SEK 66.1 billion (70.0), resulting in adjusted equity per share of SEK 160.98 (170.50). Unrealized surplus values in Project Development including the PPP portfolio amounted to SEK 8.9 billion of which SEK 1.7 billion was realized according to segment reporting. Corresponding amounts less standard tax were SEK 8.0 billion and SEK 1.6 billion.
Investments and divestments
Investments and divestments
The Group's investments amounted to SEK -3,709 M (-6,100), while divestments amounted to SEK 3,288 M (4,970), resulting in net investments of SEK -421 M (-1,130).
In Construction, investments totaled SEK -661 M (-648). These investments mainly relate to property, plant and equipment for the Group's own operations. Net investments in Construction amounted to SEK -597 M (-544). Depreciation of property, plant and equipment including right-of-use assets amounted to SEK -631 M (-605).
In Residential Development, investments totaled SEK -1,140 M (-2,270). Divestments amounted to SEK 2,346 M (2,959). Net divestments in Residential Development amounted to SEK 1,206 M (689).
In Commercial Property Development, investments totaled SEK -1,898 M (-3,175), while divestments amounted to SEK 3,419 M (1,649), of which SEK 2,540 M relates to the internal sale to Investment Properties. Net divestments in Commercial Property Development amounted to SEK 1,521 M (-1,526).
In Investment Properties, net investments totaled SEK -2,548 M (-2), relating to property acquisition of the office building Citygate in Gothenburg, Sweden and tenant adjustments for premises that have been leased out.
Investments, divestments and net divestments(+)/ investments(-)
| Apr-Jun | Apr-Jun | Rolling 12 | Jan-Dec | |||
|---|---|---|---|---|---|---|
| SEK M | 2024 | 2023 | months | 2023 | ||
| Investments | ||||||
| Construction | -661 | -648 | -2,615 | -2,531 | ||
| Residential Development | -1,140 | -2,270 | -6,540 | -9,038 | ||
| Commercial Property Development | -1,898 | -3,175 | -8,328 | -10,668 | ||
| Investment Properties | -2,548 | -2 | -4,131 | -1,575 | ||
| Other | 2,538 | -4 | 4,154 | 1,625 | ||
| Total | -3,709 | -6,100 | -17,460 | -22,189 | ||
| Divestments | ||||||
| Construction | 64 | 104 | 515 | 516 | ||
| Residential Development | 2,346 | 2,959 | 10,768 | 11,442 | ||
| Commercial Property Development | 3,419 | 1,649 | 9,996 | 7,999 | ||
| Investment Properties | - | - | - | - | ||
| Other | -2,540 | 258 | -2,982 | 57 | ||
| Total | 3,288 | 4,970 | 18,297 | 20,014 | ||
| Net divestments(+)/investments(-) | ||||||
| Construction | -597 | -544 | -2,100 | -2,015 | ||
| Residential Development | 1,206 | 689 | 4,228 | 2,404 | ||
| Commercial Property Development | 1,521 | -1,526 | 1,668 | -2,670 | ||
| Investment Properties | -2,548 | -2 | -4,131 | -1,575 | ||
| Other | -2 | 254 | 1,172 | 1,681 | ||
| Total | -421 | -1,130 | 838 | -2,175 | ||
| Of which strategic | - | 20 | -1 | 39 |
Capital employed in Project Development and Investment Properties
| Jun 30, | Jun 30, | Dec 31, | |
|---|---|---|---|
| SEK M | 2024 | 2023 | 2023 |
| Residential Development | 15,387 | 16,495 | 14,406 |
| Commercial Property Development | 43,493 | 45,498 | 40,760 |
| Investment Properties | 7,671 | 3,694 | 5,076 |
| Total in Project Development and Investment Properties | 66,551 | 65,687 | 60,242 |
Investment and divestment, courthouse building, Växjö, Sweden Divestment, Hørkær Have, Herlev, Denmark
Performance analysis, business streams
Construction – Order situation
Order backlog, revenue and order bookings
Order bookings and order backlog in Construction
| Apr-Jun | Apr-Jun | Rolling 12 | Jan-Dec | |
|---|---|---|---|---|
| SEK bn | 2024 | 2023 | months | 2023 |
| Order bookings | 60.7 | 63.2 | 184.4 | 165.8 |
| Order backlog ¹ | 267.6 | 250.3 | 229.6 |
1 Refers to the end of each period.
Order bookings amounted to SEK 60.7 billion (63.2), following strong order intake in both the building and the civil business in the USA; adjusted for currency effects, order bookings decreased -5 percent. On a rolling 12-month basis the book-to-build ratio was 114 percent (Mar 31, 2024: 117). For more information, see page 29.
As a result of strong order intake, the order backlog reached a historic high at the end of the second quarter amounting to SEK 267.6 billion, compared to SEK 251.4 billion at the end of the previous quarter. The order backlog corresponds to 20 months of production (Mar 31, 2024: 19).
Changes and currency rate effects
| Change in SEK | Change in local currency | Currency effect | ||
|---|---|---|---|---|
| Apr-Jun 2024 / Apr-Jun 2023 | ||||
| Order bookings | -4% | -5% | 1% | |
| Jun 30 2024 / Mar 31, 2024 | ||||
| Order backlog | 6% | 7% | -0% |
Major orders in the quarter
| Geography | Contract | Amount SEK M | Client |
|---|---|---|---|
| USA | Rail tunnels | 6,700 | Passenger railroad customer |
| USA | Marine terminal | 6,400 | SBMT Asset LLC |
| USA | Bridge | 6,300 | New York State Department of Transportation (NYSDOT) |
| USA | Datacenter | 2,500 | Existing customer |
| USA | Datacenter | 1,600 | Existing customer |
Construction revenue from internal Project Development contracts on a rolling 12-month basis amounted to:
10.4 SEK bn
South Brooklyn Marine Terminal, New York, USA
Construction
Revenue and operating margin, rolling 12 months
Revenue and earnings
| SEK M | Apr-Jun 2024 |
Apr-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|
| Revenue | 43,589 | 40,584 | 162,316 | 160,636 |
| Gross income | 3,257 | 3,051 | 12,163 | 12,423 |
| Selling and administrative expenses | -1,722 | -1,661 | -6,759 | -6,808 |
| Income from joint ventures and associated companies |
7 | 0 | 15 | 17 |
| Operating income | 1,542 | 1,391 | 5,419 | 5,632 |
| Gross margin, % | 7.5 | 7.5 | 7.5 | 7.7 |
| Selling and administrative expenses, % | -4.0 | -4.1 | -4.2 | -4.2 |
| Operating margin, % | 3.5 | 3.4 | 3.3 | 3.5 |
| Average number of employees | 25,007 | 25,576 | 25,826 |
Changes and currency rate effects
| Change in SEK | Change in local currency | Currency effect | |||
|---|---|---|---|---|---|
| Apr-Jun 2024 / Apr-Jun 2023 | |||||
| Revenue | 7% | 6% | 1% | ||
| Operating income | 11% | 10% | 1% | ||
| Rolling 12 months 2024 / Rolling 12 months 2023 | |||||
| Revenue | 1% | -0% | 1% | ||
| Operating income | -11% | -11% | 1% |
Revenue in the Construction business stream increased 7 percent and amounted to SEK 43.6 billion (40.6), adjusted for currency effects, revenue increased by 6 percent. Operating income increased by 11 percent and amounted to SEK 1,542 M (1,391), adjusted for currency effects, operating income increased by 10 percent. The operating margin was 3.5 percent (3.4).
The rolling 12-month basis operating margin was 3.3 percent (Mar 31, 2024: 3.3).
Residential Development
Revenue and operating margin, rolling 12 months 1
1 Including residential rentals until Q4 2020.
Revenue and earnings
| SEK M | Apr-Jun 2024 |
Apr-Jun 2023 |
Rolling 12 months |
Jan-Dec 2023 |
|---|---|---|---|---|
| Revenue | 2,150 | 1,649 | 6,956 | 5,013 |
| Gross income | 147 | 226 | -155 | -332 |
| Selling and administrative expenses | -158 | -178 | -829 | -930 |
| Operating income | -11 | 49 | -984 | -1,262 |
| Gross margin, % | 6.9 | 13.7 | -2.2 | -6.6 |
| Selling and administrative expenses, % | -7.4 | -10.8 | -11.9 | -18.5 |
| Operating margin, % | -0.5 | 2.9 | -14.1 | -25.2 |
| Return on capital employed, % ² | -5.2 | 0.2 | -5.2 | -7.0 |
2 Rolling 12 months. For definition see page 19.
Revenue in the Residential Development business stream amounted to SEK 2,150 M (1,649). Sales volumes have continued to increase compared to last year but remain weak in comparison to a normalized market. Operating income for the business stream amounted to SEK -11 M (49). The result was impacted by losses in the low-price concept BoKlok, amounting to SEK -167 M, of which SEK -99 M are from the UK operations, mainly related to provisions for supplier performance, and SEK -22 M from the Swedish production facility. Operating margin for the residential development stream was -0.5 percent, excluding BoKlok operating margin was 8.0 percent.
Homes sold and started, rolling 12 months 3
3 Including residential rentals until Q4 2020.Homes sold and started
Homes sold and started
| Apr-Jun | Apr-Jun | Rolling 12 | Jan-Dec | |
|---|---|---|---|---|
| 2024 | 2023 | months | 2023 | |
| Homes sold ⁴ | 515 | 343 | 1,687 | 1,136 |
| Homes started | 37 | 241 | 835 | 868 |
4 Net homes sold, including cancellations.
Homes under construction and unsold 5
Homes under construction and unsold
| Jun 30, | Jun 30, | Dec 31, | |
|---|---|---|---|
| 2024 | 2023 | 2023 | |
| Homes under construction | 3,365 | 6,354 | 4,341 |
| of which sold, % | 57 | 58 | 52 |
| Completed unsold, number of homes | 671 | 306 | 549 |
In the second quarter, the number of homes sold was 515 (343) and construction started on 37 (241). At the end of the quarter, 3,365 homes (Mar 31, 2024: 3,731) were under construction. The sales rate improved, reaching 57 percent (Mar 31, 2024: 51) by the end of the quarter. The number of completed unsold homes came down to 671 (Mar 31, 2024: 772), of which unsold homes in BoKlok totaled 316. During the quarter 403 (566) homes were completed.
Breakdown of carrying amounts
| Jun 30, | Jun 30, | Dec 31, | |
|---|---|---|---|
| SEK M | 2024 | 2023 | 2023 |
| Completed projects | 2,352 | 1,075 | 2,217 |
| Ongoing projects | 6,797 | 11,545 | 8,467 |
| Undeveloped land and development properties | 10,292 | 10,722 | 9,986 |
| Total | 19,441 | 23,342 | 20,670 |
A breakdown of the carrying amounts for Residential Development is presented in the table above. The estimated unrealized surplus value, pretax, in unsold homes in construction and undeveloped land and development properties amounted to SEK 3.5 billion (SEK 3.2 billion post standard tax).
The undeveloped land and development properties correspond to Skanskaowned building rights for 27,500 homes. Additionally, we hold 2,100 building rights through joint ventures and, subject to certain conditions, we have the right to purchase 9,900 building rights.
Commercial Property Development
Revenue and operating income from property divestments1
1 Including residential rentals as of Q1 2021.
Revenue and earnings
| Apr-Jun | Apr-Jun | Rolling 12 | Jan-Dec | |
|---|---|---|---|---|
| SEK M | 2024 | 2023 | months | 2023 |
| Revenue | 6,293 | 857 | 10,863 | 5,331 |
| of which from divestment of properties | 5,969 | 627 | 9,780 | 4,428 |
| Gross income | 1,259 | 233 | 581 | -416 |
| Selling and administrative expenses | -190 | -247 | -836 | -895 |
| Income from joint ventures and associated companies |
-1 | -1 | -53 | -54 |
| Operating income | 1,067 | -15 | -307 | -1,365 |
| of which from divestment of properties | 1,191 | 171 | 2,115 | 1,014 |
| Return on capital employed, % ² | 0.1 | 3.1 | 0.1 | -2.6 |
2 Rolling 12 months. For definition see page 19.
In the Commercial Property Development business stream, divestments worth SEK 5,969 M (627) were made in the second quarter. Revenue amounted to SEK 6,293 M (857). Operating income amounted to SEK 1,067 M (-15) and included gains from property divestments totaling SEK 1,191 M (171). The internal sale of Citygate to Investment Properties for SEK 2,540 M is included in the second quarter, accounting for SEK 598 M of the gains from divestment. Rolling 12-month return on capital employed was 0.1 percent (3.1).
Breakdown of investment value and market value
| SEK M | Investment value, end of period |
Investment value upon |
completion Market value ³ ⁴ Unrealized gains ⁹ | |
|---|---|---|---|---|
| Ongoing projects ⁵ | 16,311 | 25,836 | 28,087 | 2,251 |
| Completed projects ⁶ ⁷ | 11,319 | 11,319 | 12,944 | 1,625 |
| Undeveloped land and development properties |
13,054 | 13,054 | 13,640 | 586 |
| Total | 40,684 | 50,209 | 54,671 | 4,462 |
| of which carrying amount ⁸ | 40,684 | 50,209 | - | - |
| of which completed projects sold according to segment reporting |
715 | 715 | 935 | 220 |
| of which ongoing projects sold according to segment reporting |
3,234 | 5,339 | 6,846 | 1,507 |
- 3 Market value according to appraisal on June 30, 2024.
- 4 Ongoing projects estimated market value at completion fully leased. 5 Including tenant improvement and leasing commissions in CDUS amounting to SEK 429 M.
- 6 Including tenant improvement and leasing commissions in CDUS amounting to SEK 456 M.
- 7 Skanska's share of total production cost in JVs is SEK 0 M at the end of period and upon completion.
- 8 Includes Skanska's total equity investment in JV of SEK 0 M.
- 9 Market value less investment value upon completion.
Unrealized and realized gains, segment reporting 10
Commercial properties, leasing, and degree of completion11
11 Leasing including residential rentals in the USA and Denmark until Q4 2020.
Estimated market value at completion for the Commercial Property Development portfolio amounted to SEK 54.7 billion at the end of the second quarter, corresponding to an unrealized gain of SEK 4.5 billion. Surplus values have reduced by SEK 0.9 billion, mostly explained by the divestments carried out in the quarter.
During the second quarter, one new project was started, and three projects were completed. One project was handed over to its buyer resulting in a positive cash flow of SEK 0.9 billion. Assets sold but not transferred will have a positive effect on cash flow of SEK 7.8 billion during the years 2024 to 2026, with SEK 1.5 billion during the second half of 2024 and SEK 6.3 billion during 2025-2026.
At the end of the quarter, 19 projects with a total leasable area of 402,000 sq m were ongoing. Of these, 15 were commercial office properties and four were residential rental. The commercial properties were on average 61 percent leased and had a degree of completion of 64 percent. The portfolio of completed projects includes 23 properties with a total leasable area of 441,000 sq m. This portfolio was 77 percent let by the end of the quarter.
Second-quarter leasing came in at 61,000 sq m (78,000), of which residential rentals was 33,000 sq m (0). Over a rolling 12-month period, leasing amounted to 224,000 sq m (204,000), of which residential rentals was 69,000 sq m (0).
Accumulated eliminations of intra-Group Construction profits amounted to SEK -525 M, reducing the carrying amount for current asset properties in Commercial Property Development. These eliminations are released at the Group level as each project is divested.
Investment Properties
Revenue and earnings
| Apr-Jun | Apr-Jun | Rolling 12 | Jan-Dec | |
|---|---|---|---|---|
| SEK M | 2024 | 2023 | months | 2023 |
| Revenue | 72 | 45 | 242 | 186 |
| Operating net | 54 | 32 | 179 | 137 |
| Selling and administrative expenses | -4 | -1 | -11 | -9 |
| Change in property value | 58 | -25 | -107 | -190 |
| Operating income | 108 | 6 | 60 | -62 |
| Investments | -2,548 | -2 | -4,131 | -1,575 |
| Divestments | - | - | - | - |
| Net divestments(+)/investments(-) | -2,548 | -2 | -4,131 | -1,575 |
| Capital employed | 7,671 | 3,694 | - | 5,076 |
| Property value | 7,742 | 3,736 | - | 5,141 |
| Return on capital employed, % ¹ | 1.2 | 5.5 | 1.2 | -1.6 |
| Net leasing | 0 | -2 | 10 | 16 |
| Economic occupancy rate, % | 87 | 93 | 87 | 91 |
| Surplus ratio, % | 75 | 72 | 74 | 74 |
1 Rolling 12 months. For definition see page 19.
Revenue in the Investment Properties business stream amounted to SEK 72 M (45). Operating income amounted to SEK 108 M (6), partly explained by change in property value following applications of IFRS principles for fair value reporting of investment properties in connection to the internal transaction. Average valuation yield in the portfolio at the end of the second quarter was 4.7 percent. The economic occupancy rate in the portfolio remains high at 87 percent.
Investment Properties acquired its sixth property, Citygate in Gothenburg, at the end of the quarter. Citygate, is a multi-tenant office building with a total leaseable area of 43,000 sq m. In total, approximately 80 percent of the premises are let. Citygate is certified according to both WELL and LEED's highest level, Platinum.
End of the quarter, total property value of the Investment Properties portfolio amounted to SEK 7.7 billion.
Sustaintability information
Climate data
| Apr-Jun 2024 | Apr-Jun 2023 | Rolling 12 months | Jan-Dec 2023 | |
|---|---|---|---|---|
| Scope 1 and 2 (tonnes CO₂e) | 42,000 | 42,000 | 168,000 | 161,000 |
| Carbon intensity ¹ | 0.89 | 1.06 | 1.01 | 1.03 |
| Renewable fuels, % | 18 | 25 | 20 | 24 |
| Renewable electricity, % | 81 | 88 | 87 | 93 |
1 Scope 1 and 2 (market-based)/ SEK M revenue, according to segment reporting.
Combined scope 1 and 2 emissions totaled 42,000 tonnes (42,000) for the second quarter. On a rolling 12-months basis, combined scope 1 and 2 emissions totaled 168,000 tonnes, 58 percent below our 2015 baseline. Our carbon intensity in the second quarter stands at 0.89 (1.06), compared to 2.60 in 2015.
Scope 1 emissions are driven by the use of fuels. During the second quarter the share of renewable fuels decreased. On a rolling 12-month basis the share was 20 percent.
Scope 2 emissions are primarily driven by the use of electricity. Group-wide share of renewable electricity was 81 percent for the quarter, and 87 percent on a rolling 12-month basis.
Skanska's own emissions (scope 1 and 2)
Health and Safety data
| Apr-Jun 2024 | Apr-Jun 2023 | Rolling 12 months | Jan-Dec 2023 | |
|---|---|---|---|---|
| Lost time accident rate (LTAR) ¹ | 2.3 | 2.9 | 2.3 | 2.6 |
| Executive Site Safety Visits (ESSV) ¹ | 2,062 | 2,231 | 7,341 | 7,600 |
1 For definitions see page 20
Lost time accident rate (LTAR) is an indicator for monitoring safety performance. On a rolling 12-months basis, LTAR was 2.3 (Dec 31, 2023: 2.6), continuing a positive trend with less injuries.
Executive Site Safety Visits (ESSV) promote clear and visible leadership for enhanced safety performance. In the second quarter, 2,062 ESSV (2,231) were conducted.
Personnel
During the period, the average number of employees in the Group was 26,148 (27,156). At the end of the quarter, the number of employees totaled 26,457 people (Mar 31, 2024: 26,126).
Transactions with related parties
There were no new significant transactions during the quarter.
Material risks and uncertainties
For information about risks and a description of key estimates and judgments, see the Annual and Sustainability Report 2023, pages 99-105, Note 2 and 6, as well as the section on market outlook included in this report.
Events after the end of the report period
There were no events after the end of the reporting period.
Financial reports for 2024
Skanska's interim reports and year-end report are available for download on Skanska's website, www.group/skanska.com/investors.
The Group's interim reports for 2024 will be published on the following dates:
November 6, 2024 Interim report third quarter 2024
February 7, 2025 Year-end report 2024
Certification
The Board of Director and the President and CEO certify that this Six-month report provides a true and fair overview of the performance of the business, position and earnings of the Parent Company and the Group and describes the principal risks and uncertainties faced by the Parent Company and the companies in the Skanska Group.
Stockholm July 19 2024
Hans Biörck Chairman
Pär Boman Board member Ola Fält Board member Jan Gurander Board member
Mats Hederos Board member Richard Hörstedt Board member
Fredrik Lundberg Board member
Jayne McGivern Board member
Catherine Marcus Board member
Henrik Sjölund Board member
Yvonne Stenman Board member
Åsa Söderström Winberg Board member
Anders Danielsson
President and Chief Executive Officer
This report has not been subject to review by the Company's auditors.
Accounting Principles
For the Group, this interim report has been prepared in compliance with IAS 34 Interim Financial Reporting, the Annual Accounts Act and the Securities Market Act. The same accounting policies and methods of computation are followed in the interim financial statements as compared with the most recent annual financial statements. For the Parent Company, the interim report has been prepared in compliance with the Annual Accounts Act, the Securities Market Act, and Swedish Financial Reporting Board's Recommendation RFR 2.
Relation between consolidated operating cash flow statement and consolidated cash flow statement
The difference between the operating cash flow statement and the summary cash flow statement in compliance with IAS 7 Cash flow Statements, is presented in the Annual and Sustainability Report 2023, Note 35.
Segment and IFRS reporting
Skanska's business streams Construction, Residential Development, Commercial Property Development and Investment Properties represent the Group's operating segments. Tables in this report that refer to segment reporting are shown with a shaded background. In certain cases, the segment reporting differs from the consolidated results presented in accordance with International Financial Reporting Standards, IFRS.
Construction includes both building construction and civil construction. Revenue and earnings are reported over time for both segment and IFRS reporting.
Residential Development develops residential projects for immediate sale. Homes are adapted to selected customer categories. The units are responsible for planning and selling the projects. The related construction assignments are performed by Skanska's construction units in the Construction segment in each market. In the segment reporting, Residential Development recognizes revenue and earnings when contracts are signed for the sale of homes. In the IFRS reporting, revenue is instead recognized when the buyer takes possession of the home.
Commercial Property Development initiates, develops, leases and divests commercial property projects. In most markets the construction assignments are performed by Skanska's Construction segment. In the segment reporting, Commercial Property Development recognizes revenue and earnings when contracts are signed for the sale of the properties. In the IFRS reporting, revenue is instead recognized when the buyer takes possession of the property. As of 2023, residential rental projects in Sweden have been reallocated and included in the multi-family rental portfolio in the Commercial Property Development business stream. Historical financial information from 2021 and 2022 has been restated to reflect this reallocation.
Investment Properties owns properties for the purpose of earning rentals and for capital appreciation. Rental revenue is recognized on a straight-line basis over the lease term. Change in value on investment properties is recognized each quarter both according to segment reporting and IFRS.
Joint ventures are reported under the proportional method in the segment reporting of Residential Development, whereas all other streams/ operating segments apply the equity method.
Intra-Group pricing between operating segments occurs on market terms.
The parent company in a Swedish group prepares its accounts in compliance with the Swedish Financial Reporting Board's Recommendation RFR 2 Accounting for Legal Entities ("RFR 2"). According to RFR 2, the annual accounts of the legal entity must apply IFRS as far as this is possible within the framework of the Annual Accounts Act and considering the connection between accounting and taxation.
News
Starting from January 1, 2024, the modular homes BoKlok factory is reported in the Residential Development stream. Previously reported in the Central stream.
Definitions
The following measures are used as they are viewed as the best and most accurate ways to measure Skanska's operations, reflecting its business model and strategy, and thereby assisting investors and management in analyzing trends and performance in Skanska. For further definitions, see the Annual and Sustainability Report 2023, Note 44.
| Non-IFRS financial measures |
Definition | Reason for use | ||
|---|---|---|---|---|
| Revenue, Segment | Revenue, segment is the same as Revenue, IFRS in all business streams except for Residential Development and Commercial Property Development, where revenue is recognized when a binding contract is signed for the sale of homes and properties. As segment reporting of joint ventures in Residential Development applies the proportional method, this also affects Revenue, segment. |
Measures revenue generated in current market environment. |
||
| Gross income | Revenue minus cost of sales. | Measures profit generated from projects. | ||
| Gross margin, % | Gross income as a percentage of revenue. | Measures profitability in projects. | ||
| Operating net | Rental income minus operating costs for investment properties (that is, operating expenses, costs for repair and maintenance, property administration and property tax). |
Measures earnings from property management. | ||
| Selling and admin expenses, % |
Selling and administrative expenses as a percentage of revenue. | Measures cost efficiency in selling and administrative expenses. |
||
| Operating income | Revenue minus cost of sales, selling and administrative expenses, change in value of investment properties, and income from joint ventures and associated companies. |
Measures profit generated from operations. | ||
| Operating income segment | Revenue minus cost of sales, selling and administrative expenses, change in value of investment properties, and income from joint ventures and associated companies, according to segment reporting, and where Residential Development applies the proportional method for reporting of joint ventures. Revenue minus cost of sales, selling and administrative expenses, change in value |
|||
| Operating income rolling 12 months |
of investment properties, and income from joint ventures and associated companies, rolling 12-months period. |
Measures profit generated from operations. | ||
| Operating margin, % | Operating income as a percentage of revenue. | Measures profitability in operations. | ||
| Net financial items | The net of interest income, financial net pension cost, interest expense, capitalized expense, change in fair value and other net financial items. |
Measures total net for financial activities. | ||
| Income after financial items |
Operating income minus net financial items. | Measures profit generated before taxes. | ||
| Earnings per share, segment, SEK |
Profit for the period, segment, attributable to equity holders divided by the average number of shares outstanding. |
Measures earnings per share, segment. | ||
| Book-to-build, R-12m, % | Order bookings divided by construction revenue, rolling 12 months. | Measures to which extent new orders are replacing work put in place. |
||
| Unrealized gains, Commercial Property Development (CD) |
Market value minus investment value upon completion for ongoing projects, completed projects, and undeveloped land and development properties. Excludes projects sold according to segment reporting. |
Measures potential realization of future gains in Commercial Property Development. |
||
| Capital employed, Group | Total assets minus non-interest-bearing liabilities. | Measures capital usage and efficiency. | ||
| Capital employed, Stream |
Total assets less tax assets, deposits in Skanska's treasury unit (internal bank) and pension receivable minus non-interest-bearing liabilities excluding tax liabilities. Capitalized interest expense is removed from total assets for the Residential Development and Commercial Property Development segments. |
Measures capital usage and efficiency in a Stream. |
||
| Capital employed Residential Development (RD) SEK M |
Total assets 22,872 - tax assets -561 - deposits in internal bank -104 - pension receivable -52 - non-interest-bearing liabilities (excluding tax liabilities) -6,548 - capitalized interest expense -219 15,387 |
Measures capital usage and efficiency in Residential Development. |
||
| Capital employed Commercial Property Development (CD) SEK M |
Total assets 49,349 - tax assets -1,582 - deposits in internal bank -87 - pension receivable - - non-interest-bearing liabilities (excluding tax liabilities) -3,434 - capitalized interest expense -753 43,493 |
Measures capital usage and efficiency in Commercial Property Development. |
| measures | Definition | Reason for use | |||||
|---|---|---|---|---|---|---|---|
| Capital employed Investment Properties (IP) |
Total assets | 7,811 | Measures capital usage and efficiency in Investment Properties. |
||||
| SEK M | - tax assets | -16 | |||||
| - deposits in internal bank | - | ||||||
| - non-interest-bearing liabilities (excluding tax liabilities) | -123 | ||||||
| - capitalized interest expense | - | ||||||
| 7,671 | |||||||
| Capital employed average | Calculated on the basis of five measuring points; see below. | ||||||
| ROCE in RD segment, rolling 12 months, % |
Operating income | -984 | Measures the performance (profitability and capital efficiency) in RD. |
||||
| + capitalized interest expense | 174 | ||||||
| +/- financial income and other financial items | 24 | ||||||
| - interest income from internal bank | 0 | ||||||
| Adjusted profit | -786 | ||||||
| Capital employed average* | 15,097 | ||||||
| ROCE RD | -5.2% | ||||||
| * Average Capital employed | |||||||
| Q2 2024 | 15,387 | x0,5 | 7,694 | ||||
| Q1 2024 | 15,450 | 15,450 | |||||
| Q4 2023 | 14,406 | 14,406 | |||||
| Q3 2023 | 14,591 | 14,591 | |||||
| Q2 2023 | 16,495 | x0,5 | 8,248 | ||||
| 60,388 | / 4 | 15,097 | |||||
| ROCE in CD segment, | Operating income | -307 | Measures the performance (profitability and | ||||
| rolling 12 months, % | + capitalized interest expense | 332 | capital efficiency) in CD. | ||||
| +/- financial income and other financial items | 7 | ||||||
| - interest income from internal bank | 0 | ||||||
| Adjusted profit | 31 | ||||||
| Capital employed average* | 43,969 | ||||||
| ROCE CD | 0.1% | ||||||
| * Average Capital employed | |||||||
| Q2 2024 | 43,493 | x0,5 | 21,747 | ||||
| Q1 2024 | 44,581 | 44,581 | |||||
| Q4 2023 | 40,760 | 40,760 | |||||
| Q3 2023 | 46,040 | 46,040 | |||||
| Q2 2023 | 45,498 | x0,5 | 22,749 | ||||
| 175,876 | / 4 | 43,969 | |||||
| ROCE in IP segment, | Operating income | 60 | Measures the performance (profitability and | ||||
| rolling 12 months, % | +/- financial income and other financial items | 0 | capital efficiency) in IP. | ||||
| - interest income from internal bank | - | ||||||
| Adjusted profit | 60 | ||||||
| Capital employed average* | 4,896 | ||||||
| ROCE IP | 1.2% | ||||||
| * Average Capital employed | |||||||
| Q2 2024 | 7,671 | x0,5 | 3,836 | ||||
| Q1 2024 | 5,126 | 5,126 | |||||
| Q4 2023 | 5,076 | 5,076 | |||||
| Q3 2023 | 3,701 | 3,701 | |||||
| Q2 2023 | 3,694 | x0,5 | 1,847 19,586 |
/ 4 | 4,896 | ||
| ROCE in Project Development, segment, rolling 12 months, % |
Calculated as the sum of the adjusted profit in RD and CD divided by the aggregate amount of capital employed, average, for RD and CD. |
Measures the performance (profitability and capital efficiency) in Project Development. |
|||||
| Adjusted profit | CE avg | ROCE | |||||
| RD | -786 | 15,097 | -5.2% | ||||
| CD | 31 | 43,969 | 0.1% | ||||
| -755 | 59,066 | -1.3% | |||||
| Return on equity segment, rolling 12 months, % |
Profit attributable to equity holders as a percentage of average equity attributable to equity holders. |
Measures profitability on invested equity. |
| Non-IFRS financial measures |
Definition | Reason for use |
|---|---|---|
| Equity average attributable to equity holders SEK M |
Calculated on the basis of five measuring points. Q2 2024 58,128 x0,5 29,064 Q1 2024 56,508 56,508 Q4 2023 56,202 56,202 Q3 2023 57,503 57,503 Q2 2023 56,903 x0,5 28,451 227,727 / 4 56,932 |
|
| Operating cash flow from operations |
Cash flow from business operations including taxes paid and cash flow from financing operations. |
Measures total cash flow generated from operations. |
| Net divestments/investment | Total investments minus total divestments. | Measures the balance between investments and divestments. |
| Free working capital | Non-interest-bearing receivables minus non-interest-bearing liabilities excluding taxes. |
Measures the funding stemming from the negative working capital. |
| Average free working capital in Construction SEK M |
Calculated on the basis of five measuring points. Q2 2024 -27,990 x0,5 -13,995 Q1 2024 -27,406 -27,406 Q4 2023 -29,107 -29,107 Q3 2023 -27,756 -27,756 Q2 2023 -28,126 x0,5 -14,063 -112,327 / 4 -28,082 |
Measures the funding stemming from the negative working capital generated in Construction. |
| Interest-bearing net receivables/ net debt |
Interest-bearing assets minus interest-bearing liabilities. | Measures financial position. |
| Adjusted interest-bearing net receivables/net debt |
Interest-bearing net receivables/net debt excluding cash and cash equivalents with restrictions, lease liabilities and interest-bearing net pension liabilities. |
Measures financial position and investment capacity. The latter is derived by comparing adjusted interest-bearing net receivables/net debt to limits set by the Board of Directors. |
| Equity/assets ratio, % | Equity including non-controlling interest as a percentage of total assets. | Measures financial position. |
| Net debt/equity ratio | Interest-bearing net debt divided by equity including non-controlling interest. | Measures leverage of financial position. |
| Adjusted equity attributable to equity holders SEK bn |
Equity attributable to equity holders 58.1 Unrealized surplus value in RD 3.5 Unrealized CD gains 4.5 Effect in unrealized equity in PPP portfolio 0.9 Less standard corporate tax, 10% -0.9 Adjusted equity 66.1 |
Measures financial position adjusted for surplus values in Project Development net of taxes. The standard corporate tax represents an approximation of the average corporate income tax within the Group. |
| Net leasing | Annual rent including supplements of new leases minus annual rent including supplements for agreements that have been served a notice of termination. |
|
| Economic occupancy rate, % | Contracted rental income including supplements less discounts for the period divided by total rental value for properties owned at the end of the period. Properties owned at the end of the period are restated as if they have been owned during the whole period, while disposed properties are excluded entirely. |
Measures the efficiency of leasing activity. |
| Surplus ratio, % | Operating net for Investment Properties stream as a percentage of rental income. | Measures the efficiency of property management. |
| Leasable area, sq m | Leasable area including garage. | |
| Rental value | Rental income including supplements for the period plus market rent for vacant premises. |
Indicates total potential rental income for fully leased properties. |
| Environmental certification, % | Share of Investment Properties' portfolio being certified according to minimum LEED Gold or similar. |
Measures the sustainability quality of the property portfolio. |
| Lost time accident rate (LTAR) | Number of employee and subcontractor lost time accidents multiplied by 1,000,000 hours and divided by total labor hours. |
Indicator for monitoring safety performance. |
| Executive Site Safety Visits | Site Safety visits performed by senior managers. | Promotes clear and visible leadership for enhanced safety performance. |
Reconciliation between segment reporting and IFRS
| External revenue Intra-Group revenue |
Total revenue | Operating income | ||||||
|---|---|---|---|---|---|---|---|---|
| Jan-Jun | Jan-Jun | Jan-Jun | Jan-Jun | Jan-Jun | Jan-Jun | Jan-Jun | Jan-Jun | |
| SEK M | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Construction ¹ | 75,355 | 71,317 | 4,432 | 6,791 | 79,787 | 78,107 | 2,211 | 2,424 |
| Residential Development | 4,177 | 2,235 | - | - | 4,177 | 2,235 | 12 | -266 |
| Commercial Property Development | 4,099 | 1,096 | 2,556 | 28 | 6,656 | 1,124 | 901 | -157 |
| Investment Properties | 131 | 84 | 11 | 2 | 142 | 86 | 158 | 36 |
| Total operating segments | 83,763 | 74,732 | 6,999 | 6,821 | 90,762 | 81,553 | 3,282 | 2,037 |
| Central | 4 | 87 | - | 186 | 4 | 273 | -219 | -232 |
| Eliminations | - | - | -6,999 | -7,007 | -6,999 | -7,007 | 13 | -81 |
| Total Group | 83,768 | 74,819 | - | - | 83,768 | 74,819 | 3,076 | 1,725 |
| Reconciliation to IFRS ² | -2,036 | 3,949 | - | - | -2,036 | 3,949 | -553 | 1,064 |
| Total IFRS | 81,732 | 78,767 | - | - | 81,732 | 78,767 | 2,523 | 2,788 |
| 1 Of which external revenue from joint ventures in PPP portfolio | 110 | 695 | - | - | - | - | - | - |
| 2 Of which effect from joint ventures in Residential Development proportionally | -263 | -58 | - | - | - | - | -9 | -82 |
| Of which effect of different revenue recognition principles | -1,773 | 4,007 | - | - | - | - | -544 | 1,146 |
Revenue by geographical area (IFRS)
| Construction | Residential Development | Commercial Property Development |
Investment Properties | Central and Eliminations | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jan-Jun | Jan-Jun | Jan-Jun | Jan-Jun | Jan-Jun | Jan-Jun | Jan-Jun | Jan-Jun | Jan-Jun | Jan-Jun | Jan-Jun | Jan-Jun | |
| SEK M | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 |
| Nordics | 28,142 | 28,980 | 3,612 | 4,428 | 3,046 | 1,875 | 142 | 86 | -4,799 | -3,156 | 30,144 | 32,212 |
| of which Sweden | 14,318 | 16,314 | 1,659 | 3,668 | 2,905 | 1,777 | 142 | 86 | -3,912 | -2,354 | 15,112 | 19,492 |
| Europe | 11,150 | 13,162 | 880 | 747 | 1,084 | 156 | - | - | -765 | -1,244 | 12,349 | 12,821 |
| USA | 40,495 | 35,965 | - | - | 175 | 100 | - | - | -1,431 | -2,331 | 39,239 | 33,734 |
| Total operating segments | 79,787 | 78,107 | 4,492 | 5,176 | 4,305 | 2,130 | 142 | 86 | -6,994 | -6,732 | 81,732 | 78,767 |
| Segment | IFRS | Segment | IFRS | Segment | IFRS | Segment | IFRS | |
|---|---|---|---|---|---|---|---|---|
| SEK M | Apr-Jun 2024 |
Apr-Jun 2024 |
Apr-Jun 2023 |
Apr-Jun 2023 |
Jan-Jun 2024 |
Jan-Jun 2024 |
Jan-Jun 2023 |
Jan-Jun 2023 |
| Revenue | ||||||||
| Construction | 43,589 | 43,589 | 40,584 | 40,584 | 79,787 | 79,787 | 78,107 | 78,107 |
| Residential Development | 2,150 | 2,373 | 1,649 | 2,974 | 4,177 | 4,492 | 2,235 | 5,176 |
| Commercial Property Development | 6,293 | 3,742 | 857 | 1,881 | 6,656 | 4,305 | 1,124 | 2,130 |
| Investment Properties | 72 | 72 | 45 | 45 | 142 | 142 | 86 | 86 |
| Central and Eliminations | -4,725 | -4,725 | -3,194 | -3,191 | -6,994 | -6,994 | -6,734 | -6,732 |
| Skanska Group | 47,378 | 45,051 | 39,940 | 42,292 | 83,768 | 81,732 | 74,819 | 78,767 |
| Operating income | ||||||||
| Construction | 1,542 | 1,542 | 1,391 | 1,391 | 2,211 | 2,211 | 2,424 | 2,424 |
| Residential Development | -11 | 22 | 49 | 402 | 12 | 34 | -266 | 321 |
| Commercial Property Development ¹ | 1,067 | 611 | -15 | 406 | 901 | 361 | -157 | 262 |
| Investment Properties | 108 | 108 | 6 | 6 | 158 | 158 | 36 | 36 |
| Central | -159 | -159 | -73 | -73 | -219 | -219 | -232 | -232 |
| of which PPP portfolio | 55 | 55 | 138 | 138 | 132 | 132 | 210 | 210 |
| Eliminations ¹ | 33 | -31 | -27 | 63 | 13 | -22 | -81 | -22 |
| Operating income | 2,580 | 2,093 | 1,331 | 2,194 | 3,076 | 2,523 | 1,725 | 2,788 |
| Net financial items | 146 | 146 | 133 | 134 | 371 | 375 | 279 | 281 |
| Income after financial items | 2,725 | 2,238 | 1,464 | 2,328 | 3,447 | 2,898 | 2,003 | 3,069 |
| Income taxes | -656 | -537 | -234 | -376 | -853 | -717 | -340 | -521 |
| Profit for the period | 2,069 | 1,701 | 1,229 | 1,952 | 2,594 | 2,181 | 1,663 | 2,548 |
| Earnings for the period per share, SEK ² | 5.03 | - | 2.96 | - | 6.31 | - | 4.00 | - |
| Earnings for the period per share according to IFRS, SEK ² | - | 4.13 | - | 4.72 | - | 5.30 | - | 6.16 |
| 1 Of which gains from divestments of commercial properties reported in: | ||||||||
| Commercial Property Development | 1,191 | 735 | 171 | 591 | 1,318 | 778 | 217 | 636 |
| Eliminations | 15 | 12 | 19 | 61 | 24 | -5 | 40 | 62 |
2 Earnings for the period attributable to equity holders divided by the average number of shares outstanding.
The Skanska Group
Summary income statement (IFRS)
| SEK M | Apr-Jun 2024 | Apr-Jun 2023 | Jan-Jun 2024 | Jan-Jun 2023 | Rolling 12 months | Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Revenue | 45,051 | 42,292 | 81,732 | 78,767 | 170,132 | 167,168 |
| Cost of sales | -41,426 | -37,964 | -75,739 | -71,673 | -157,936 | -153,870 |
| Gross income | 3,625 | 4,328 | 5,993 | 7,095 | 12,196 | 13,297 |
| Selling and administrative expenses | -2,275 | -2,274 | -4,282 | -4,537 | -9,132 | -9,386 |
| Change in value, investment properties | 681 | -25 | 681 | -25 | 881 | 175 |
| Income from joint ventures and associated companies | 62 | 166 | 131 | 255 | 1,071 | 1,195 |
| Operating income | 2,093 | 2,194 | 2,523 | 2,788 | 5,016 | 5,282 |
| Financial income | 232 | 158 | 571 | 325 | 1,000 | 754 |
| Financial expenses | -86 | -24 | -197 | -44 | -297 | -145 |
| Net financial items ¹ | 146 | 134 | 375 | 281 | 703 | 609 |
| Income after financial items | 2,238 | 2,328 | 2,898 | 3,069 | 5,719 | 5,890 |
| Income taxes | -537 | -376 | -717 | -521 | -1,057 | -861 |
| Profit for the period | 1,701 | 1,952 | 2,181 | 2,548 | 4,662 | 5,029 |
| 1 Of which | ||||||
| Interest income | 227 | 148 | 518 | 307 | 924 | 712 |
| Financial net pension costs | 7 | -3 | 11 | -6 | 6 | -11 |
| Interest expenses | -163 | -156 | -336 | -278 | -623 | -566 |
| Interest expenses from lease liabilities | -68 | -58 | -134 | -116 | -261 | -243 |
| Capitalized interest expenses | 167 | 214 | 339 | 395 | 713 | 768 |
| Net interest items | 170 | 145 | 399 | 301 | 759 | 661 |
| Change in fair value | -2 | 1 | -23 | 2 | 11 | 36 |
| Other net financial items | -23 | -12 | -1 | -22 | -67 | -89 |
| Net financial items | 146 | 134 | 375 | 281 | 703 | 609 |
| Profit for the period attributable to: | ||||||
| parent company equity holders | 1,696 | 1,941 | 2,175 | 2,530 | 4,643 | 4,998 |
| non-controlling interests | 5 | 11 | 5 | 18 | 19 | 31 |
| Earnings per share, SEK ² | 4.13 | 4.72 | 5.30 | 6.16 | 11.31 | 12.17 |
| Earnings per share after dilution, SEK ³ | 4.10 | 4.69 | 5.25 | 6.11 | 11.21 | 12.07 |
2 Earnings for the period attributable to equity holders divided by the average number of shares outstanding.
Statement of profit or loss and other comprehensive income (IFRS)
| SEK M | Apr-Jun 2024 | Apr-Jun 2023 | Jan-Jun 2024 | Jan-Jun 2023 | Rolling 12 months | Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Profit for the period | 1,701 | 1,952 | 2,181 | 2,548 | 4,662 | 5,029 |
| Other comprehensive income | ||||||
| Items that will not be reclassified to profit and loss for the period | ||||||
| Remeasurements of defined-benefit pension plans | -144 | 549 | 837 | 1,316 | -206 | 273 |
| Tax related to items that will not be reclassified to profit and loss for the period |
25 | -109 | -181 | -277 | 32 | -64 |
| -119 | 440 | 656 | 1,039 | -174 | 209 | |
| Items that have been or will be reclassified to profit and loss for the period |
||||||
| Translation differences attributable to equity holders | 4 | 1,316 | 1,250 | 1,249 | -947 | -947 |
| Translation differences attributable to non-controlling interests | -0 | 6 | 2 | 12 | -14 | -4 |
| Hedging of exchange rate risk in foreign operations | -12 | 25 | 25 | 22 | -21 | -23 |
| Effects of cash flow hedges ¹ | 7 | 11 | -16 | 27 | -50 | -7 |
| Share of other comprehensive income of joint ventures and associated companies ² |
-3 | 14 | 15 | 4 | -19 | -30 |
| Tax related to items that have been or will be reclassified to profit and loss for the period |
-2 | 0 | -5 | 1 | 6 | 12 |
| -6 | 1,372 | 1,270 | 1,316 | -1,045 | -999 | |
| Other comprehensive income after tax | -125 | 1,813 | 1,927 | 2,355 | -1,219 | -790 |
| Total comprehensive income | 1,576 | 3,764 | 4,107 | 4,903 | 3,443 | 4,239 |
| Total comprehensive income for the period attributable to | ||||||
| parent company equity holders | 1,571 | 3,747 | 4,100 | 4,873 | 3,438 | 4,212 |
| non-controlling interests | 4 | 18 | 8 | 30 | 5 | 27 |
| 1 Of which transferred to income statement | 4 | -21 | 5 | -35 | 93 | 52 |
| 2 Of which transferred to income statement | 0 | 3 | 1 | 9 | 2 | 10 |
3 Earnings for the period attributable to equity holders divided by the average number of shares outstanding after dilution.
Summary statement of financial position (IFRS)
| SEK M | Jun 30, 2024 | Jun 30, 2023 | Dec 31, 2023 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Investment Properties | 7,742 | 3,736 | 5,141 |
| Property, plant and equipment | 8,595 | 8,268 | 8,035 |
| Property, plant and equipment right-of-use assets | 3,082 | 3,452 | 3,082 |
| Goodwill | 4,050 | 4,341 | 3,919 |
| Other intangible assets | 298 | 413 | 348 |
| Investments in joint ventures and associated companies | 2,056 | 2,574 | 2,072 |
| Non-current financial assets ¹ ³ | 5,695 | 5,852 | 4,992 |
| Deferred tax assets | 2,641 | 1,217 | 2,518 |
| Total non-current assets | 34,158 | 29,853 | 30,108 |
| Current assets | |||
| Current-asset properties ² | 59,240 | 65,569 | 58,660 |
| Current-asset properties right-of-use land | 3,790 | 3,886 | 3,613 |
| Inventories | 1,229 | 1,270 | 1,275 |
| Current financial assets ³ | 9,079 | 9,659 | 7,498 |
| Tax assets | 1,537 | 1,954 | 1,246 |
| Contract assets | 9,180 | 7,917 | 7,865 |
| Trade and other receivables | 31,766 | 30,254 | 27,012 |
| Cash and cash equivalents | 11,544 | 6,610 | 17,912 |
| Total current assets | 127,365 | 127,121 | 125,082 |
| TOTAL ASSETS | 161,524 | 156,973 | 155,189 |
| of which interest-bearing non-current financial assets | 5,597 | 5,811 | 4,954 |
| of which interest-bearing current assets | 20,498 | 16,144 | 25,096 |
| Total interest-bearing assets | 26,095 | 21,955 | 30,050 |
| EQUITY | |||
| Equity attributable to equity holders | 58,128 | 56,903 | 56,202 |
| Non-controlling interests | 123 | 174 | 146 |
| Total equity | 58,251 | 57,076 | 56,347 |
| LIABILITIES | |||
| Non-current liabilities | |||
| Non-current financial liabilities ³ | 9,481 | 2,594 | 7,300 |
| Lease liabilities | 6,356 | 6,794 | 6,137 |
| Pensions | 2,903 | 2,245 | 3,167 |
| Deferred tax liabilities | 2,385 | 2,432 | 2,218 |
| Total non-current liabilities | 21,125 | 14,065 | 18,822 |
| Current liabilities | |||
| Current financial liabilities ³ | 3,310 | 5,897 | 3,615 |
| Lease liabilities | 875 | 924 | 909 |
| Tax liabilities | 293 | 262 | 779 |
| Current provisions | 10,350 | 10,145 | 11,087 |
| Contract liabilities | 23,294 | 27,183 | 23,220 |
| Trade and other payables | 44,025 | 41,420 | 40,410 |
| Total current liabilities | 82,147 | 85,832 | 80,020 |
| TOTAL EQUITY AND LIABILITIES | 161,524 | 156,973 | 155,189 |
| of which interest-bearing financial liabilities | 19,949 | 15,951 | 17,846 |
| of which interest-bearing pensions and provisions | 2,903 | 2,245 | 3,167 |
| Total interest-bearing liabilities | 22,852 | 18,197 | 21,014 |
| 1 Of which shares and participations | 39 | 39 | 38 |
| 2 Current-asset properties | |||
| Commercial Property Development | 39,799 | 42,227 | 37,991 |
| Residential Development | 19,441 | 23,342 | 20,670 |
| 3 Items regarding non-interest-bearing unrealized changes in derivatives/financial instruments are included in the following amounts: Non-current financial assets |
59 | 2 | 0 |
| Current financial assets | 125 | 126 | 314 |
| Non-current financial liabilities | 1 | 0 | 1 |
Contingent liabilities, excluding partners' share in joint operations, as of June 30, 2024 amounted to SEK 1.3 bn (Dec 31, 2023: 1.5). Skanska's obligations for partners' share of future performance in joint operations amounted to SEK 19.1 bn (Dec 31, 2023: 22.9). In the event that Skanska takes over part of the performance, Skanska's order backlog will increase accordingly. For more information see Annual and Sustainability Report 2023, Note 20B, 20C and 33.
Summary statement of changes in equity (IFRS)
| SEK M | Apr-Jun 2024 | Apr-Jun 2023 | Jan-Jun 2024 | Jan-Jun 2023 | Jan-Dec 2023 |
|---|---|---|---|---|---|
| Opening balance | 56,657 | 53,290 | 56,347 | 55,255 | 55,255 |
| of which non-controlling interests | 149 | 156 | 146 | 144 | 144 |
| Dividend to shareholders | 0 | 0 | -2,257 | -3,081 | -3,081 |
| Change in group composition | - | -0 | - | -0 | -5 |
| Dividend to non-controlling interests | -30 | -0 | -30 | -0 | -20 |
| Effects of share-based payments | 88 | 118 | 194 | 246 | 470 |
| Repurchase of Class B shares | -40 | -96 | -111 | -246 | -510 |
| Total comprehensive income for the period attributable to | |||||
| parent company equity holders | 1,571 | 3,747 | 4,100 | 4,873 | 4,212 |
| non-controlling interests | 4 | 18 | 8 | 30 | 27 |
| Closing balance | 58,251 | 57,076 | 58,251 | 57,076 | 56,347 |
| of which non-controlling interests | 123 | 174 | 123 | 174 | 146 |
Summary consolidated cash flow statement (IAS 7) (IFRS)
| SEK M | Apr-Jun 2024 | Apr-Jun 2023 | Jan-Jun 2024 | Jan-Jun 2023 | Rolling 12 months | Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Cash flow from operating activities before change in working capital, according to IAS 7 |
1,261 | 753 | 809 | 1,184 | 3,524 | 3,900 |
| Cash flow from change in working capital, according to IAS 7 | 158 | -1,768 | -4,673 | -4,314 | -1,052 | -693 |
| Net investments in shares, property, plant and equipment and intangible assets (including investment properties) |
-622 | -657 | -1,157 | -926 | -1,066 | -836 |
| Cash flow adjustment investments/divestments in shares, property, plant and equipment and intangible assets (including investment properties) |
- | - | 590 | - | 10 | -580 |
| Capitalized interest paid and dividend received from joint ventures and associated companies |
-150 | 22 | -133 | 231 | -318 | 46 |
| Cash flow from business operations including taxes paid according to operating cash flow |
646 | -1,650 | -4,564 | -3,826 | 1,098 | 1,837 |
| Less net investments in shares, property, plant and equipment and intangible assets (including investment properties) |
622 | 657 | 1,157 | 926 | 1,066 | 836 |
| Less cash flow adjustment investments/divestments in shares, property, plant and equipment and intangible assets (including investment properties) |
- | - | -590 | - | -10 | 580 |
| Less capitalized interest paid and dividend received from joint ventures and associated companies |
150 | -22 | 133 | -231 | 318 | -46 |
| Cash flow from operating activities, according to IAS 7 | 1,419 | -1,015 | -3,864 | -3,130 | 2,472 | 3,207 |
| Cash flow from strategic net divestments(+)/ investments(-) according to operating cash flow |
- | 20 | - | 40 | -1 | 39 |
| Net investments in shares, property, plant and equipment and intangible assets (including investment properties) |
-622 | -657 | -1,157 | -926 | -1,066 | -836 |
| Cash flow adjustment investments/divestments in shares, property, plant and equipment and intangible assets (including investment properties) |
- | - | 590 | - | 10 | -580 |
| Interest and dividend received | 229 | 374 | 722 | 912 | 1,295 | 1,485 |
| Increase and decrease in interest-bearing receivables | 130 | 1,410 | -1,451 | 3,597 | 840 | 5,888 |
| Cash flow from investing activities, according to IAS 7 | -263 | 1,148 | -1,296 | 3,623 | 1,078 | 5,997 |
| Cash flow from financing activities according to operating cash-flow statement |
-305 | -152 | 51 | -298 | -339 | -689 |
| Capitalized interest paid | -152 | -204 | -307 | -374 | -659 | -727 |
| Less interest and other dividend received | -228 | -148 | -548 | -306 | -954 | -712 |
| Change in interest-bearing receivables and liabilities excluding lease liabilities |
1,164 | 1,624 | 580 | 3,910 | 7,043 | 10,373 |
| Less increase and decrease in interest-bearing receivables | -130 | -1,410 | 1,451 | -3,597 | -840 | -5,888 |
| Dividend etc. ¹ | -2,327 | -3,177 | -2,397 | -3,327 | -2,682 | -3,611 |
| Cash flow from financing activities, according to IAS 7 | -1,976 | -3,468 | -1,170 | -3,993 | 1,569 | -1,255 |
| Cash flow for the period | -821 | -3,335 | -6,330 | -3,501 | 5,119 | 7,949 |
| 1 Of which repurchase of Class B shares | -40 | -96 | -111 | -246 | -375 | -510 |
Operating cash flow (IFRS), supplementary information
| SEK M | Apr-Jun 2024 | Apr-Jun 2023 | Jan-Jun 2024 | Jan-Jun 2023 | Rolling 12 months | Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Construction | ||||||
| Cash flow from business operations | 2,122 | 1,977 | 3,368 | 3,609 | 7,713 | 7,954 |
| Change in working capital | 588 | -1,013 | -2,063 | -1,630 | 319 | 753 |
| Net divestments(+)/investments(-) | -597 | -564 | -1,107 | -1,063 | -2,099 | -2,054 |
| Cash flow adjustment | - | - | - | - | - | - |
| Total Construction | 2,113 | 400 | 197 | 917 | 5,933 | 6,653 |
| Residential Development | ||||||
| Cash flow from business operations | -213 | -254 | -476 | -510 | -962 | -996 |
| Change in working capital | -993 | -292 | -2,121 | 721 | -2,911 | -69 |
| Net divestments(+)/investments(-) | 1,206 | 689 | 2,162 | 337 | 4,228 | 2,404 |
| Cash flow adjustment | - | - | - | - | -43 | -43 |
| Total Residential Development | 0 | 143 | -435 | 548 | 313 | 1,296 |
| Commercial Property Development | ||||||
| Cash flow from business operations | -119 | -142 | -235 | -271 | -544 | -579 |
| Change in working capital | -13 | -73 | -357 | -237 | -791 | -671 |
| Net divestments(+)/investments(-) | 1,521 | -1,526 | 77 | -4,260 | 1,668 | -2,670 |
| Cash flow adjustment | 177 | -64 | -251 | -17 | -19 | 215 |
| Total Commercial Property Development | 1,566 | -1,804 | -766 | -4,785 | 314 | -3,705 |
| Investment Properties | ||||||
| Cash flow from business operations | 50 | 31 | 100 | 61 | 168 | 129 |
| Change in working capital | 61 | -4 | 29 | 18 | 50 | 39 |
| Net divestments(+)/investments(-) | -2,548 | -2 | -2,559 | -3 | -4,131 | -1,575 |
| Cash flow adjustment | -1 | - | -3 | - | 0 | 3 |
| Total Investment Properties | -2,437 | 25 | -2,433 | 75 | -3,913 | -1,404 |
| Central and Eliminations | ||||||
| Cash flow from business operations | -203 | 39 | -169 | 191 | -462 | -102 |
| Change in working capital | -15 | -34 | 56 | 9 | -222 | -268 |
| Net divestments(+)/investments(-) | -2 | 254 | 0 | 510 | 1,172 | 1,681 |
| of which PPP-portfolio | - | 258 | 11 | 518 | 1,113 | 1,619 |
| Cash flow adjustment | - | - | 590 | - | 10 | -580 |
| Total Central and Eliminations | -220 | 260 | 477 | 709 | 499 | 731 |
| Total cash flow from business operations | 1,638 | 1,652 | 2,587 | 3,080 | 5,913 | 6,406 |
| Total change in working capital | -372 | -1,415 | -4,457 | -1,119 | -3,554 | -217 |
| Total net divestments(+)/investments(-) | -421 | -1,150 | -1,427 | -4,479 | 839 | -2,214 |
| Total cash flow adjustment | 176 | -64 | 336 | -17 | -52 | -405 |
| Cash flow from business operations before taxes paid | 1,022 | -977 | -2,960 | -2,535 | 3,145 | 3,570 |
| Taxes paid in business operations Cash flow from business operations including taxes paid |
-375 646 |
-673 -1,650 |
-1,604 -4,564 |
-1,290 -3,826 |
-2,047 1,098 |
-1,733 1,837 |
| Net interest items, other net financial items and amortization of lease liabilities |
-305 | -152 | 51 | -298 | -339 | -689 |
| Cash flow from financing activities | -305 | -152 | 51 | -298 | -339 | -689 |
| Operating cash flow from operations | 342 | -1,802 | -4,513 | -4,124 | 759 | 1,148 |
| Strategic net divestments(+)/investments(-) | - | 20 | - | 40 | -1 | 39 |
| Dividend etc. ¹ | -2,327 | -3,177 | -2,397 | -3,327 | -2,682 | -3,611 |
| Cash flow before change in interest-bearing receivables and liabilities | -1,985 | -4,959 | -6,911 | -7,411 | -1,924 | -2,424 |
| Change in interest-bearing receivables and liabilities excluding lease liabilities |
1,164 | 1,624 | 580 | 3,910 | 7,043 | 10,373 |
| Cash flow for the period | -821 | -3,335 | -6,330 | -3,501 | 5,119 | 7,949 |
| Cash and cash equivalents at the beginning of the period | 12,097 | 9,839 | 17,912 | 10,014 | 6,610 | 10,014 |
| Exchange rate differences in cash and cash equivalents | 268 | 106 | -38 | 97 | -185 | -50 |
| Cash and cash equivalents at the end of the period | 11,544 | 6,610 | 11,544 | 6,610 | 11,544 | 17,912 |
| 1 Of which repurchase of Class B shares | -40 | -96 | -111 | -246 | -375 | -510 |
<-- PDF CHUNK SEPARATOR -->
Group net divestments(+)/investments (-) (IFRS)
| SEK M | Apr-Jun 2024 | Apr-Jun 2023 | Jan-Jun 2024 | Jan-Jun 2023 | Rolling 12 months | Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| OPERATIONS - INVESTMENTS | ||||||
| Investment Properties | -8 | -2 | -19 | -3 | -42 | -26 |
| Intangible assets | -3 | -3 | -6 | -8 | -18 | -20 |
| Property, plant and equipment | -669 | -677 | -1,333 | -1,274 | -2,634 | -2,575 |
| Shares and participations | -2 | -317 | -10 | -320 | -8 | -318 |
| Current-asset properties | -3,027 | -5,101 | -5,879 | -10,371 | -14,758 | -19,249 |
| of which Residential Development | -1,141 | -1,965 | -2,255 | -4,462 | -6,448 | -8,655 |
| of which Commercial Property Development | -1,886 | -3,136 | -3,625 | -5,909 | -8,310 | -10,595 |
| Investments in operations | -3,709 | -6,100 | -7,247 | -11,976 | -17,460 | -22,189 |
| Total Investments | -3,709 | -6,100 | -7,247 | -11,976 | -17,460 | -22,189 |
| OPERATIONS - DIVESTMENTS | ||||||
| Intangible assets | 0 | 1 | 0 | 1 | -0 | 1 |
| Property, plant and equipment | 60 | 83 | 199 | 160 | 517 | 477 |
| Shares and participations | -0 | 258 | 11 | 518 | 1,119 | 1,626 |
| Current-asset properties | 3,229 | 4,608 | 5,610 | 6,818 | 16,663 | 17,871 |
| of which Residential Development | 2,350 | 2,959 | 4,432 | 5,106 | 10,757 | 11,430 |
| of which Commercial Property Development | 878 | 1,649 | 1,178 | 1,712 | 5,906 | 6,441 |
| Divestments in operation | 3,288 | 4,950 | 5,821 | 7,497 | 18,298 | 19,975 |
| STRATEGIC DIVESTMENTS | ||||||
| Businesses | - | 20 | - | 40 | -1 | 39 |
| STRATEGIC DIVESTMENTS | - | 20 | - | 40 | -1 | 39 |
| Total divestments | 3,288 | 4,970 | 5,821 | 7,537 | 18,297 | 20,014 |
| TOTAL NET DIVESTMENTS(+)/INVESTMENTS(-) | -421 | -1,130 | -1,427 | -4,439 | 838 | -2,175 |
| Depreciation, non-current assets | -701 | -690 | -1,371 | -1,353 | -2,765 | -2,747 |
Capital employed in Project Development and Investment Properties (IFRS)
| SEK M | Jun 30, 2024 | Jun 30, 2023 | Dec 31, 2023 |
|---|---|---|---|
| Residential Development | 15,387 | 16,495 | 14,406 |
| Commercial Property Development | 43,493 | 45,498 | 40,760 |
| Investment Properties | 7,671 | 3,694 | 5,076 |
| Total in Project Development and Investment Properties | 66,551 | 65,687 | 60,242 |
Parent company 1
The parent company's revenue consists mainly of amounts billed to Group companies. The balance sheet consists mainly of shares in Group companies, intra-Group receivables and equity. The parent company does not report any significant events during the period.
Summary income statement (RFR2)
| SEK M | Apr-Jun 2024 | Apr-Jun 2023 | Jan-Jun 2024 | Jan-Jun 2023 |
|---|---|---|---|---|
| Revenue | 346 | 373 | 634 | 514 |
| Selling and administrative expenses | -321 | -323 | -566 | -501 |
| Operating income | 25 | 50 | 68 | 13 |
| Net financial items | 6,360 | 10,320 | 6,560 | 10,397 |
| Income after financial items | 6,385 | 10,370 | 6,628 | 10,410 |
| Income taxes | -45 | -24 | -96 | -33 |
| Profit for the period | 6,340 | 10,346 | 6,532 | 10,377 |
| Total comprehensive income | 6,340 | 10,346 | 6,532 | 10,377 |
Summary balance sheet (RFR2)
| SEK M | Jun 30, 2024 | Jun 30, 2023 | Dec 31, 2023 |
|---|---|---|---|
| ASSETS | |||
| Non-current intangible assets | 7 | 2 | 6 |
| Property, plant and equipment | 25 | 22 | 23 |
| Non-current financial assets ² | 35,212 | 30,466 | 31,182 |
| Total non-current assets | 35,244 | 30,490 | 31,211 |
| Current receivables | 370 | 265 | 498 |
| Total current assets | 370 | 265 | 498 |
| TOTAL ASSETS | 35,614 | 30,755 | 31,709 |
| EQUITY AND LIABILITIES | |||
| Equity ³ | 35,168 | 30,261 | 30,993 |
| Provisions | 166 | 178 | 154 |
| Non-current interest-bearing liabilities ² | 5 | 64 | 64 |
| Current liabilities | 275 | 252 | 498 |
| TOTAL EQUITY AND LIABILITIES | 35,614 | 30,755 | 31,709 |
1 As a parent company in an IFRS-group, Skanska AB applies RFR2 in its accounting.
3 During the year SEK 6,150 M (Dec 31, 2023: 10,250) in dividend has been received from Group company.
The parent company's contingent liabilities totaled SEK 181.2 bn on Jun 30, 2024 2024 (Dec 31, 2023:148.8), of which SEK 172.8 bn (Dec 31, 2023: 133.0) were related to obligations on behalf of Group companies. Other obligations, SEK 8.4 bn (Dec 31, 2023: 15.8), were related to commitments to outside parties of which SEK 4.3 bn (Dec 31, 2023: 9.1) relates to partners' future performance in the Group's joint operations.
2 Of which SEK 12,385 (Dec 31, 2023:12,497) were shares in Group companies, SEK 22,669 M (Dec 31, 2023: 18,526), Intra-Group receivables and SEK 5 M (Dec 31, 2023: 64) intra-Group liabilities.
Share data
| Apr-Jun 2024 | Apr-Jun 2023 | Jan-Jun 2024 | Jan-Jun 2023 | Jan-Dec 2023 | |
|---|---|---|---|---|---|
| Earnings per share according to segment reporting, SEK ¹ | 5.03 | 2.96 | 6.31 | 4.00 | 7.89 |
| Earnings per share, SEK ¹ | 4.13 | 4.72 | 5.30 | 6.16 | 12.17 |
| Earnings per share after dilution, SEK ² | 4.10 | 4.69 | 5.25 | 6.11 | 12.07 |
| Equity per share, SEK ³ | 141.50 | 138.53 | 141.50 | 138.53 | 137.01 |
| Adjusted equity per share, SEK ⁴ | 160.98 | 170.50 | 160.98 | 170.50 | 158.88 |
| Average number of shares outstanding | 410,638,540 | 410,943,350 | 410,480,773 | 410,998,216 | 410,758,367 |
| Average number of shares outstanding after dilution | 414,290,914 | 414,022,804 | 414,133,147 | 414,077,670 | 414,137,628 |
| Average dilution, % | -0.09 | -0.06 | 0.88 | 0.74 | 0.82 |
| Number of shares, at balance sheet date | 419,903,072 | 419,903,072 | 419,903,072 | 419,903,072 | 419,903,072 |
| Average price, repurchased Class B shares, SEK | 190.68 | 148.31 | 188.53 | 168.41 | 166.82 |
| Number of Class B shares repurchased | 34,970,728 | 32,780,728 | 34,970,728 | 32,780,728 | 34,380,728 |
| of which Class B shares repurchased during the period | 210,000 | 640,000 | 590,000 | 1,460,000 | 3,060,000 |
| Number of Class B shares in Skanska's own custody | 9,116,467 | 9,141,570 | 9,116,467 | 9,141,570 | 9,713,560 |
| Number of shares outstanding | 410,786,605 | 410,761,502 | 410,786,605 | 410,761,502 | 410,189,512 |
1 Earnings for the period attributable to equity holders divided by the average number of shares outstanding.
Five-year Group financial summary
| SEK M | Rolling 12 months | Jan-Dec 2023 | Jan-Dec 2022 | Jan-Dec 2021 | Jan-Dec 2020 |
|---|---|---|---|---|---|
| Revenue | 166,001 | 157,052 | 161,602 | 147,576 | 158,606 |
| Operating income | 4,583 | 3,231 | 9,297 | 9,832 | 11,860 |
| Profit for the period | 4,202 | 3,272 | 7,702 | 8,188 | 8,943 |
| Earnings per share, SEK | 10.19 | 7.89 | 18.62 | 19.80 | 21.65 |
| Return on capital employed, % | 7.2 | 5.4 | 14.1 | 15.9 | 20.2 |
| Return on equity, % | 7.3 | 5.8 | 15.8 | 20.1 | 25.1 |
| Operating margin, % | 2.8 | 2.1 | 5.8 | 6.7 | 7.5 |
| Return on capital employed accoding to IFRS, % | 7.8 | 8.2 | 15.2 | 13.5 | 21.5 |
| Cash flow per share according to IFRS, SEK ¹ | -4.71 | -5.90 | -16.29 | 1.81 | 31.57 |
1 Cash flow before change in interest-bearing receivables and liabilities divided by the average number of shares outstanding.
Exchange rates for the most important currencies
| Average exchange rates | Exchange rates on the closing day | |||||
|---|---|---|---|---|---|---|
| SEK | Jan-Jun 2024 | Jan-Jun 2023 | Jan-Dec 2023 | Jun 30, 2024 | Jun 30, 2023 | Dec 31, 2023 |
| US dollar | 10.54 | 10.49 | 10.61 | 10.64 | 10.90 | 10.01 |
| British pound | 13.33 | 12.93 | 13.20 | 13.44 | 13.75 | 12.76 |
| Norwegian krone | 0.99 | 1.00 | 1.01 | 1.00 | 1.01 | 0.99 |
| Euro | 11.40 | 11.33 | 11.48 | 11.38 | 11.81 | 11.09 |
| Czech koruna | 0.46 | 0.48 | 0.48 | 0.45 | 0.50 | 0.45 |
| Polish zloty | 2.64 | 2.45 | 2.53 | 2.64 | 2.65 | 2.55 |
2 Earnings for the period attributable to equity holders divided by the average number of shares outstanding after dilution.
3 Equity attributable to equity holders divided by the number of shares outstanding.
4 Adjusted equity divided by the number of shares outstanding.
Construction
Revenue and earnings
| SEK M | Apr-Jun 2024 | Apr-Jun 2023 | Jan-Jun 2024 | Jan-Jun 2023 | Rolling 12 months | Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Revenue | 43,589 | 40,584 | 79,787 | 78,107 | 162,316 | 160,636 |
| Gross income | 3,257 | 3,051 | 5,488 | 5,748 | 12,163 | 12,423 |
| Selling and administrative expenses | -1,722 | -1,661 | -3,272 | -3,321 | -6,759 | -6,808 |
| Income from joint ventures and associated companies | 7 | 0 | -6 | -4 | 15 | 17 |
| Operating income | 1,542 | 1,391 | 2,211 | 2,424 | 5,419 | 5,632 |
| Investments | -661 | -648 | -1,307 | -1,224 | -2,615 | -2,531 |
| Divestments | 64 | 104 | 199 | 201 | 515 | 516 |
| Net divestments(+)/investments(-) | -597 | -544 | -1,107 | -1,023 | -2,100 | -2,015 |
| Gross margin, % | 7.5 | 7.5 | 6.9 | 7.4 | 7.5 | 7.7 |
| Selling and administrative expenses, % | -4.0 | -4.1 | -4.1 | -4.3 | -4.2 | -4.2 |
| Operating margin, % | 3.5 | 3.4 | 2.8 | 3.1 | 3.3 | 3.5 |
| Order bookings, SEK bn | 60.7 | 63.2 | 107.6 | 89.0 | 184.4 | 165.8 |
| Order backlog, SEK bn | 267.6 | 250.3 | 267.6 | 250.3 | 229.6 | |
| Average number of employees | 25,007 | 25,576 | 25,007 | 25,576 | 25,826 |
Revenue
| SEK M | Apr-Jun 2024 | Apr-Jun 2023 | Jan-Jun 2024 | Jan-Jun 2023 | Rolling 12 months | Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Nordics | 15,036 | 14,727 | 28,129 | 28,978 | 57,643 | 58,492 |
| of which Sweden | 7,777 | 8,407 | 14,218 | 16,214 | 29,724 | 31,720 |
| Europe | 6,080 | 7,219 | 11,163 | 13,164 | 24,876 | 26,878 |
| USA | 22,473 | 18,637 | 40,495 | 35,965 | 79,796 | 75,266 |
| Total | 43,589 | 40,584 | 79,787 | 78,107 | 162,316 | 160,636 |
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Rolling 12 | Jan-Dec | |
|---|---|---|---|---|---|---|
| SEK M | 2024 | 2023 | 2024 | 2023 | months | 2023 |
| Nordics | 496 | 549 | 912 | 948 | 1,993 | 2,029 |
| of which Sweden | 309 | 251 | 456 | 432 | 1,088 | 1,065 |
| Europe | 231 | 189 | -103 | 184 | 174 | 462 |
| USA | 814 | 654 | 1,402 | 1,292 | 3,252 | 3,141 |
| Total | 1,542 | 1,391 | 2,211 | 2,424 | 5,419 | 5,632 |
Operating income Operating margin, %
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Rolling 12 | Jan-Dec |
|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | months | 2023 |
| 3.3 | 3.7 | 3.2 | 3.3 | 3.5 | 3.5 |
| 4.0 | 3.0 | 3.2 | 2.7 | 3.7 | 3.4 |
| 3.8 | 2.6 | -0.9 | 1.4 | 0.7 | 1.7 |
| 3.6 | 3.5 | 3.5 | 3.6 | 4.1 | 4.2 |
| 3.5 | 3.4 | 2.8 | 3.1 | 3.3 | 3.5 |
| Jun 30, | Jun 30, | Dec 31, | |
|---|---|---|---|
| SEK M | 2024 | 2023 | 2023 |
| Nordics | 72,364 | 83,772 | 72,925 |
| of which Sweden | 29,636 | 32,770 | 28,757 |
| Europe | 32,208 | 41,500 | 34,283 |
| USA | 163,020 | 125,030 | 122,428 |
| Total | 267,592 | 250,303 | 229,637 |
Order backlog Order bookings
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Rolling 12 | Jan-Dec |
|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | months | 2023 |
| 14,026 | 31,651 | 26,927 | 43,458 | 47,111 | 63,642 |
| 8,484 | 8,942 | 15,067 | 15,895 | 26,556 | 27,384 |
| 4,499 | 7,557 | 7,505 | 10,179 | 16,823 | 19,497 |
| 42,143 | 23,944 | 73,147 | 35,362 | 120,441 | 82,656 |
| 60,669 | 63,152 | 107,579 | 88,999 | 184,375 | 165,795 |
Book-to-build, R-12, %
| Jun 30, | Jun 30, | Dec 31, |
|---|---|---|
| 2024 | 2023 | 2023 |
| 82 | 124 | 109 |
| 89 | 93 | 86 |
| 68 | 83 | 73 |
| 151 | 119 | 110 |
| 114 | 115 | 103 |
Residential Development
Revenue and earnings
| SEK M | Apr-Jun 2024 | Apr-Jun 2023 | Jan-Jun 2024 | Jan-Jun 2023 | Rolling 12 months | Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Revenue | 2,150 | 1,649 | 4,177 | 2,235 | 6,956 | 5,013 |
| Gross income | 147 | 226 | 313 | 135 | -155 | -332 |
| Selling and administrative expenses | -158 | -178 | -301 | -401 | -829 | -930 |
| Operating income | -11 | 49 | 12 | -266 | -984 | -1,262 |
| Operating margin, % | -0.5 | 2.9 | 0.3 | -11.9 | -14.1 | -25.2 |
| Investments | -1,140 | -2,270 | -2,270 | -4,769 | -6,540 | -9,038 |
| Divestments | 2,346 | 2,959 | 4,432 | 5,106 | 10,768 | 11,442 |
| Net divestments(+)/investments(-) | 1,206 | 689 | 2,162 | 337 | 4,228 | 2,404 |
| Capital employed, SEK bn | 15.4 | 16.5 | 15.4 | 16.5 | 14.4 | |
| Return on capital employed, % ¹ | -5.2 | 0.2 | -5.2 | 0.2 | -5.2 | -7.0 |
| Average number of employees | 431 | 540 | 431 | 540 | 524 |
1 Rolling 12 months. For definition see page 19.
Revenue
| SEK M | Apr-Jun 2024 | Apr-Jun 2023 | Jan-Jun 2024 | Jan-Jun 2023 | Rolling 12 months | Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Nordics | 1,738 | 1,176 | 3,185 | 1,604 | 4,847 | 3,265 |
| of which Sweden | 766 | 377 | 1,472 | 474 | 2,507 | 1,509 |
| Europe | 412 | 473 | 992 | 631 | 2,109 | 1,748 |
| Total | 2,150 | 1,649 | 4,177 | 2,235 | 6,956 | 5,013 |
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Rolling 12 | Jan-Dec | |
|---|---|---|---|---|---|---|
| SEK M | 2024 | 2023 | 2024 | 2023 | months | 2023 |
| Nordics | -0 | 4 | 13 | -264 | -908 | -1,186 |
| of which Sweden | -51 | -3 | -81 | -284 | -335 | -538 |
| Europe | -10 | 45 | -1 | -1 | -76 | -76 |
| Total | -11 | 49 | 12 | -266 | -984 | -1,262 |
1 Development gain only. Construction margin reported under Construction.
Homes started Homes sold
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Rolling 12 | Jan-Dec | |
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | months | 2023 | |
| Nordics | 37 | 241 | 119 | 529 | 244 | 654 |
| of which Sweden | - | 135 | 20 | 377 | 89 | 446 |
| Europe | - | - | 377 | - | 591 | 214 |
| Total | 37 | 241 | 496 | 529 | 835 | 868 |
Operating income 1 Operating margin, % 1
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Rolling 12 | Jan-Dec |
|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | months | 2023 |
| -0.0 | 0.3 | 0.4 | -16.5 | -18.7 | -36.3 |
| -6.7 | -0.8 | -5.5 | -59.9 | -13.4 | -35.7 |
| -2.5 | 9.4 | -0.1 | -0.2 | -3.6 | -4.4 |
| -0.5 | 2.9 | 0.3 | -11.9 | -14.1 | -25.2 |
| Jan-Dec | Rolling 12 | Jan-Jun | Jan-Jun | Apr-Jun | Apr-Jun |
|---|---|---|---|---|---|
| 2023 | months | 2023 | 2024 | 2023 | 2024 |
| 525 | 1,058 | 227 | 760 | 164 | 425 |
| 327 | 665 | 86 | 424 | 61 | 223 |
| 611 | 629 | 248 | 266 | 179 | 90 |
| 1,136 | 1,687 | 475 | 1,026 | 343 | 515 |
Homes under construction
| Jun 30, | Jun 30, | Dec 31, | |
|---|---|---|---|
| 2024 | 2023 | 2023 | |
| Nordics | 1,854 | 4,669 | 3,017 |
| of which Sweden | 791 | 3,063 | 1,887 |
| Europe | 1,511 | 1,685 | 1,324 |
| Total | 3,365 | 6,354 | 4,341 |
Completed unsold, number of homes
| Jun 30, | Jun 30, | Dec 31, |
|---|---|---|
| 2024 | 2023 | 2023 |
| 642 | 292 | 521 |
| 528 | 175 | 279 |
| 29 | 14 | 28 |
| 671 | 306 | 549 |
Homes under construction of which sold, %
| Jun 30, | Jun 30, | Dec 31, |
|---|---|---|
| 2024 | 2023 | 2023 |
| 50 | 55 | 44 |
| 35 | 53 | 38 |
| 65 | 65 | 68 |
| 57 | 58 | 52 |
Commercial Property Development
Revenue and earnings
| SEK M | Apr-Jun 2024 | Apr-Jun 2023 | Jan-Jun 2024 | Jan-Jun 2023 | Rolling 12 months | Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Revenue | 6,293 | 857 | 6,656 | 1,124 | 10,863 | 5,331 |
| of which from divestment of properties | 5,969 | 627 | 6,069 | 717 | 9,780 | 4,428 |
| Gross income | 1,259 | 233 | 1,289 | 292 | 581 | -416 |
| Selling and administrative expenses | -190 | -247 | -386 | -445 | -836 | -895 |
| Income from joint ventures and associated companies | -1 | -1 | -2 | -4 | -53 | -54 |
| Operating income | 1,067 | -15 | 901 | -157 | -307 | -1,365 |
| of which from divestment of properties ¹ | 1,191 | 171 | 1,318 | 217 | 2,115 | 1,014 |
| of which writedowns/reversal of writedowns of properties | -69 | -0 | -222 | -18 | -1,851 | -1,647 |
| 1 Additional gains of intra-Group construction profits included in Eliminations | 15 | 19 | 24 | 40 | 92 | 108 |
| Investments | -1,898 | -3,175 | -3,641 | -5,981 | -8,328 | -10,668 |
| Divestments | 3,419 | 1,649 | 3,718 | 1,721 | 9,996 | 7,999 |
| Net divestments(+)/investments(-) | 1,521 | -1,526 | 77 | -4,260 | 1,668 | -2,670 |
| Capital employed, SEK bn | 43.5 | 45.5 | 43.5 | 45.5 | 40.8 | |
| Return on capital employed, % ² | 0.1 | 3.1 | 0.1 | 3.1 | 0.1 | -2.6 |
| Average number of employees | 347 | 432 | 347 | 432 | 428 |
2 Rolling 12 months. For definition see page 19.
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Rolling 12 | Jan-Dec | |
|---|---|---|---|---|---|---|
| SEK M | 2024 | 2023 | 2024 | 2023 | months | 2023 |
| Nordics | 4,265 | 742 | 4,461 | 869 | 6,521 | 2,929 |
| Europe | 1,931 | 65 | 2,020 | 156 | 3,285 | 1,420 |
| USA | 96 | 49 | 175 | 100 | 1,057 | 982 |
| Total | 6,293 | 857 | 6,656 | 1,124 | 10,863 | 5,331 |
Revenue of which from divestments
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Rolling 12 | Jan-Dec |
|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | months | 2023 |
| 4,153 | 626 | 4,253 | 673 | 6,113 | 2,533 |
| 1,816 | 0 | 1,816 | 43 | 2,919 | 1,146 |
| - | - | - | - | 748 | 748 |
| 5,969 | 627 | 6,069 | 717 | 9,780 | 4,428 |
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Rolling 12 | Jan-Dec | |
|---|---|---|---|---|---|---|
| SEK M | 2024 | 2023 | 2024 | 2023 | months | 2023 |
| Nordics | 878 | 116 | 961 | 83 | 1,273 | 395 |
| Europe | 308 | -70 | 274 | -122 | 41 | -355 |
| USA | -119 | -61 | -334 | -118 | -1,621 | -1,405 |
| Total | 1,067 | -15 | 901 | -157 | -307 | -1,365 |
Operating income of which from divestments
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Rolling 12 | Jan-Dec |
|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | months | 2023 |
| 886 | 169 | 1,010 | 191 | 1,518 | 699 |
| 305 | 1 | 308 | 26 | 508 | 226 |
| - | - | - | - | 89 | 89 |
| 1,191 | 171 | 1,318 | 217 | 2,115 | 1,014 |
Homes for rent started Homes for rent sold
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Rolling 12 | Jan-Dec | |
|---|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | months | 2023 | |
| Nordics | - | - | - | - | - | - |
| USA | - | - | - | - | - | - |
| Total | - | - | - | - | - | - |
| Apr-Jun | Apr-Jun | Jan-Jun | Jan-Jun | Rolling 12 | Jan-Dec |
|---|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | months | 2023 |
| 264 | - | 264 | - | 264 | - |
| - | - | - | - | - | - |
| 264 | - | 264 | - | 264 | - |
Homes for rent under construction
| Jun 30, | Jun 30, | Dec 31, | |
|---|---|---|---|
| 2024 | 2023 | 2023 | |
| Nordics | 565 | 1,322 | 565 |
| USA | 599 | 1,009 | 1,009 |
| Total | 1,164 | 2,331 | 1,574 |
Capital employed
| Jun 30, | Jun 30, | Dec 31, | |
|---|---|---|---|
| SEK M | 2024 | 2023 | 2023 |
| Nordics | 12,763 | 15,643 | 13,403 |
| Europe | 9,751 | 10,884 | 9,373 |
| USA | 20,979 | 18,971 | 17,984 |
| Total | 43,493 | 45,498 | 40,760 |
Investment Properties
Revenue and earnings
| SEK M | Apr-Jun 2024 | Apr-Jun 2023 | Jan-Jun 2024 | Jan-Jun 2023 | Rolling 12 months | Jan-Dec 2023 |
|---|---|---|---|---|---|---|
| Revenue | 72 | 45 | 142 | 86 | 242 | 186 |
| Operating net | 54 | 32 | 106 | 63 | 179 | 137 |
| Selling and administrative expenses | -4 | -1 | -5 | -3 | -11 | -9 |
| Change in property value | 58 | -25 | 58 | -25 | -107 | -190 |
| Operating income | 108 | 6 | 158 | 36 | 60 | -62 |
| Investments | -2,548 | -2 | -2,559 | -3 | -4,131 | -1,575 |
| Divestments | - | - | - | - | - | - |
| Net divestments(+)/investments(-) | -2,548 | -2 | -2,559 | -3 | -4,131 | -1,575 |
| Capital employed | 7,671 | 3,694 | 7,671 | 3,694 | 5,076 | |
| Property value | 7,742 | 3,736 | 7,742 | 3,736 | 5,141 | |
| Return on capital employed, % ¹ | 1.2 | 5.5 | 1.2 | 5.5 | 1.2 | -1.6 |
| Economic occupancy rate, % | 87 | 93 | 87 | 93 | 87 | 91 |
| Average valuation yield, % | 4.7 | 4.1 | 4.7 | 4.1 | 4.7 | 4.5 |
1 Rolling 12 months. For definition see page 19.
Properties
| Location | Leasable area, sqm | Annual rental value, SEK M | Economic occupancy rate, % | Property value, SEK M | Environmental certification, % |
|---|---|---|---|---|---|
| Malmö | 38,522 | 142 | 95 | 2,098 | 100 |
| Stockholm | 42,962 | 189 | 87 | 3,061 | 100 |
| Göteborg | 50,296 | 185 | 80 | 2,582 | 100 |
| Total | 131,780 | 516 | 87 | 7,742 | 100 |
PPP-portfolio value
Unrealized development gain in PPP portfolio
| SEK bn | Jun 30, 2024 | Jun 30, 2023 | Dec 31, 2023 |
|---|---|---|---|
| Present value of cash flow from projects | 1.9 | 2.4 | 1.9 |
| Present value of remaining investments | - | - | - |
| Net present value of projects | 1.9 | 2.4 | 1.9 |
| Carrying amount before Cash flow hedge / Carrying amount | -1.1 | -1.4 | -1.1 |
| Unrealized development gain | 0.8 | 1.0 | 0.8 |
| Cash flow hedge | 0.1 | 0.1 | 0.1 |
| Effect in unrealized equity ¹ | 0.9 | 1.1 | 0.9 |
1 Tax effects not included.
About Skanska
We are one of the world's largest project development and construction companies. We operate across select markets in the Nordics, Europe and the USA. Together with our customers and the collective expertise of our 27,000 employees, we create innovative and sustainable solutions that support healthy living beyond our lifetime.
Skanska's home markets
Studio B, Warsaw, Poland
Studio is in the Wola district in Warsaw. This area attracts an increasing number of companies interested in operating in this developing part of the city. The first phase offers a leasable space of 17,600 square meters, which is 98 percent let. Tenants include Société Générale Group companies, the insurance company Unum Życie, C.H. Robinson and Business Link, among others. Studio is developed with the aim to deliver sustainable office spaces, allowing responsible use of resources, and supporting the wellbeing of the tenants. It is certified according to LEED Core & Shell, Platinum level, and is also expected to receive WELL Core & Shell, WELL Health & Safety Rating and Building without Barriers. Skanska divested the first building of the office project, phase 1, during the second quarter. The buyer is Stena Real Estate AB. The transfer of the property is scheduled for the third quarter of 2024. Construction of the second phase started in the fourth quarter of 2023 and is scheduled for completion in 2025. In total, the project will offer a leasable area of approximately 43,000 square meters.
Skanska AB
www.group.skanska.com/investors
For further information, please contact:
Magnus Persson, Executive Vice President and CFO, Skanska AB, tel +46 10 448 8900 Antonia Junelind, Senior Vice President, Investor Relations, Skanska AB, tel +46 10 448 6261 Karolina Cederhage, Senior Vice President, Communications, Skanska AB, tel +46 10 448 0880 Jacob Birkeland, Head of Media Relations and Public Affairs, Skanska AB, tel +46 10 449 1957
This report will also be presented at a telephone conference at 10:00 CET on July 19, 2024. The telephone conference will be webcast live at www.skanska.com/investors, where a recording of the conference will also be available later.Participate in the telephone conference, with the possibility to ask questions. Preferred connection (web link), for best audio quality, please join the call from your phone via the HD Audio web link here: HD Audio link. If you need to call in via telephone line, please dial +46 (0) 8 5051 0031; +44 (0)207 107 06 13 or +1 (1) 631 570 56 13.This and previous releases can also be found at www.group.skanska.com/investors.
This is information that Skanska AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the Senior Vice President Investor Relations set out above, at 07:30 CET on July 19, 2024.
Enumerated amounts presented in tables and statements may not always agree with the calculated sum of the related line items due to rounding differences. The aim is for each line item to agree with its source and therefore there may be rounding differences affecting the total when adding up the presented line items.