Skanska has announced a robust financial performance for the third quarter (Q3) of 2024, with revenue climbing by 6% to Skr42.8bn ($3.94bn).
The company's operating income saw a remarkable 129% increase in the quarter, reaching Skr1.26bn. These figures, when adjusted for currency effects, represent a 9% revenue growth and a 138% surge in operating income.
Operating cash flow from operations was reported at Skr6.18bn, another substantial rise from Skr329m in the same quarter last year. This increase is primarily attributed to changes in working capital within the Construction stream and net divestments in Project Development.
The company's tax payments in business operations were listed at Skr309m during the period.
Free working capital in Construction stood at Skr31.0bn, with the average free working capital to Construction revenue ratio over the past 12 months slightly down at 17.4%. This is due to positive cash flow profiles in several projects and a continued emphasis on cash generation.
The cash flow impact from working capital changes in Construction was Skr3.88bn, partly due to advance payments in the early stages of projects.
By the end of the quarter, Skanska's capital employed was Skr80.2bn. The group's equity increased marginally to Skr58.1bn, resulting in an equity/assets ratio of 35.9%. The group's net debt/equity ratio remained negative at -0.2.
Investment and divestment activities across various segments of Skanska also reflected a strategic financial approach. Construction investments were Skr473m, mainly in property, plant, and equipment for internal operations, with net investments in the segment amounting to Skr431m.
Residential Development saw net divestments of Skr1.48bn while Commercial Property Development recorded net divestments of Skr342m.
Order bookings for the quarter were significant at Skr50.8bn, a 63% increase when adjusted for currency effects, driven by strong intake in the building and civil business sectors in the US.
The company's order backlog remains at a historic high of Skr267.0bn, a slight decrease from the previous quarter but a 3% increase when adjusted for currency effects.
Skanska, with its 27,000 employees, continues to focus on its operating markets in the Nordics, Europe, and the US.
