{"id":35533,"date":"2026-05-24T17:24:45","date_gmt":"2026-05-25T00:24:45","guid":{"rendered":"https:\/\/essential.construction\/news\/c-suite-construction-execs-downplay-iran-war-costs\/"},"modified":"2026-05-24T17:24:45","modified_gmt":"2026-05-25T00:24:45","slug":"c-suite-construction-execs-downplay-iran-war-costs","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/c-suite-construction-execs-downplay-iran-war-costs\/","title":{"rendered":"C-suite construction execs downplay Iran war costs"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n        <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/img\/play.svg?313321260226\" alt=\"-\"><br \/>\n        Listen to the article<\/p>\n<p>            <span class=\"text-to-speech__button__audio-length\">3 min<\/span><\/p>\n<p>    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/text-to-speech.divecdn.com\/newspost\/820700\/2026-05-20_11.52.31\/construction-execs-downplay-iran-war-costs.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>It\u2019s been over two and a half months since the U.S. launched military operations in Iran on Feb. 28. The resulting closure of the Strait of Hormuz has caused <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/construction-prices-soar-april\/820228\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>gas prices to skyrocket<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>When construction firms announced their most recent batch of earnings, they reported on the first three months of 2026; the time period when the war began and costs began to rise.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>C-suite executives from publicly traded construction companies acknowledged the headwinds the war has brought, while largely downplaying their impact thus far.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Gas prices\u2019 hit on the bottom line<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>\u201cDuring the quarter, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/granite-construction-border-data-center-work\/819023\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>oil prices increased due to the conflict<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> in [Iran],\u201d Kyle Larkin, Granite president and CEO said. The firm\u2019s primary oil exposures are liquid asphalt and diesel fuel.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Nonetheless, Larkin said the Watsonville, California-based firm regularly mitigates fuel cost increases by agreeing to fixed price contracts, maintaining physical storage, applying financial hedges and inserting energy surcharges in contracts.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWhile we will continue to monitor the market closely, we do not presently expect that the current increases in oil prices will have significant impact to our annual outlook,\u201d Larkin said.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Indeed, Pontus Winqvist, CFO of Sweden-based Skanska, told Construction Dive that the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/skanska-risk-economy-earnings-q1-data-centers\/819732\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>contractor anticipated a prolonged conflict<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> would raise oil prices, in turn elevating costs on asphalt or plastic for piping. He also said Skanska hedges against that risk.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cPart of our exposure is either taken by the subcontractors or by our clients,\u201d he said. \u201cI can\u2019t say that that will make any major difference for profits.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Impact on work in the Middle East<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Other publicly traded contractors reported on the effects the war has had on their work within the Middle East.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Jim Breuer, CEO of Fluor, said company activities in the region around the conflict \u201ccontinued without interruption\u201d and that the firm has mitigated supply chain constraints there.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Dallas-based AECOM saw more of an impact on the bottom line during the firm\u2019s fiscal second quarter that ended March 31. However, executives said the company has already recovered.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cUnderlying cash flow in the second quarter was consistent with our expectations, but was offset by delayed <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/aecom-profit-boost-data-center-defense-spending\/820031\/\" target=\"_blank\"><span><span><span><span><span><span><span><span>payment timing in the Middle East business<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> as well as longer-than-anticipated claim resolution on certain projects,\u201d said Gaurav Kapoor, AECOM CFO, during the firm\u2019s earnings call. \u201cImportantly, collections in the Middle East have already recovered in the third quarter.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>CEO Troy Rudd indicated he expected work in the Middle East to grow \u201cquite significantly,\u201d but acknowledged it would be difficult to forecast the pace of growth going forward.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/construction-execs-downplay-iran-war-costs\/820700\/\" 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. Please let us know if you have feedback. It\u2019s &#8230; <a title=\"C-suite construction execs downplay Iran war costs\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/c-suite-construction-execs-downplay-iran-war-costs\/\" aria-label=\"Read more about C-suite construction execs downplay Iran war costs\">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-35533","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\/35533","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=35533"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/35533\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=35533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=35533"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=35533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}