{"id":30415,"date":"2025-05-14T04:37:16","date_gmt":"2025-05-14T11:37:16","guid":{"rendered":"https:\/\/essential.construction\/news\/skanska-downgrades-us-construction-outlook\/"},"modified":"2025-05-14T04:37:16","modified_gmt":"2025-05-14T11:37:16","slug":"skanska-downgrades-us-construction-outlook","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/skanska-downgrades-us-construction-outlook\/","title":{"rendered":"Skanska downgrades US construction outlook"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><\/p>\n<p>            <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/images\/audio_icon.svg?482016190122\" alt=\"-\"><\/p>\n<p>        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">3 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1747150130\/news\/text_to_speech\/skanska-ceo-earnings-tariffs-construction_xbfpth.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<p><span><span><span><span><span><span>Sweden-based developer and builder Skanska acknowledged economic uncertainties may impact its outlook, but company leadership <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/group.skanska.com\/media\/press-releases-articles\/298637\/Interim-report%2c-first-quarter-2025\" target=\"_blank\"><span><span><span><span><span><span><span><span>remained bullish on the overall environment<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in a first quarter earnings call May 7.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In an investor call, CEO Anders Danielsson shared that the firm had reduced its outlook for U.S. construction \u2014 a major driver of the company\u2019s revenue \u2014 from strong to stable.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWe still see a pipeline, but we can also see that it takes a little bit longer time for our customers to take the decision to invest and start a project. But it\u2019s stable,\u201d Danielsson said of U.S. commercial construction. On the other hand, Danielsson called the civil sector in the States \u201cencouraging,\u201d largely due to continued federal investments in infrastructure. The 12-month outlook for civil work in the U.S. remains strong.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWe can see a very healthy [civil] pipeline, we don\u2019t see any decrease in activities here,\u201d he said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Nonetheless, economic uncertainty has impacted the outlook, Danielsson said, reinforcing that he thinks \u201cit\u2019s not a specific segment or specific clients, it\u2019s more that they feel some uncertainties in the market.\u201d Additionally, he <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/group.skanska.com\/499600\/siteassets\/investors\/reports-publications\/interim-reports\/2025\/q1-2025\/skanska-q1-2025-en.pdf\" target=\"_blank\"><span><span><span><span><span><span><span><span>acknowledged that tariffs<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> have contributed to that uncertainty in the U.S., but said the fact that the international firm runs businesses locally in all its markets mitigates those effects.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Some of those question marks for owners thinking about starting projects arise from costs brought on by President Donald Trump\u2019s tariffs, which fluctuated in the period reported by Skanska.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/fluor-tariffs-q1-2025-earnings\/747220\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>On other earnings calls this month<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, construction CEOs including Jim Breuer, chief of Fluor, and Troy Rudd, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/aecom-delays-deferrals-trump-earnings\/747358\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>AECOM\u2019s lead, showed optimism<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in the face of tariff uncertainty, claiming only isolated delays in projects. Nonetheless, both firms said they are not experiencing a slowdown and touted healthy backlogs.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>By the numbers <\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Skanska reported about 1.1 billion Swedish crowns ($110.4 million) in operating income for the three month period ending in March 2025, a 118% increase compared to the operating income from the same period a year ago.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Building buoyed the company\u2019s revenue, as its construction unit generated nearly 1.2 billion crowns in profit in Q1. The firm\u2019s order <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/group.skanska.com\/4995ec\/siteassets\/investors\/reports-publications\/interim-reports\/2025\/q1-2025\/skanska-q1-2025-presentation.pdf\" target=\"_blank\"><span><span><span><span><span><span><span><span>backlog remains historically high<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> at 263.6 billion crowns for all geographies, with about 23 months of construction work alone booked in the U.S.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Skanska CFO Jonas Rickberg, who took over as <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/skanska-new-cfo-stockholm-construction\/724331\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>financial chief for Skanska in January<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, touted construction performance as \u201coverall very strong.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<div class=\"editor-note\">\n<p>Clarification: This story has been updated with the company&#8217;s former outlook for U.S. construction.<\/p>\n<\/div><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/skanska-ceo-earnings-tariffs-construction\/747817\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 3 min This audio is auto-generated. 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Sweden-based &#8230; <a title=\"Skanska downgrades US construction outlook\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/skanska-downgrades-us-construction-outlook\/\" aria-label=\"Read more about Skanska downgrades US construction outlook\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-30415","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/30415","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=30415"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/30415\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=30415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=30415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=30415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}