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Skanska AB Sponsored ADR Class B
(OTC:SKBSY)
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Rating:72Outperform
Price Target:
$30.00
▲(4.17% Upside)
Action:Upgraded
Date:07/23/26
The score is driven primarily by steady financial performance with an improving, conservative balance sheet and stronger TTM cash flow, supported by constructive earnings-call signals (record order intake/backlog and solid Construction margin). Technicals add moderate support with mild positive momentum. Valuation is helped by a high dividend yield, though the P/E is not especially cheap and risks include thin margins and segment-specific impairments/low ROCE areas noted on the call.
Positive Factors
Balance-sheet strength
Skanska's conservative leverage (debt-to-equity ~0.29) and materially lower debt provide durable financial flexibility. A strong equity base and an adjusted net cash position enable bid participation on large projects, dividend capacity, and buffer versus cyclical working-capital swings.
Negative Factors
Low Project Development ROCE
Project Development's ROCE of ~1.3% is a structural performance shortfall versus internal targets, signaling poor capital efficiency. Continued low returns can erode group profitability and require portfolio rebalancing or asset disposals to avoid long-term capital drag.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Skanska's conservative leverage (debt-to-equity ~0.29) and materially lower debt provide durable financial flexibility. A strong equity base and an adjusted net cash position enable bid participation on large projects, dividend capacity, and buffer versus cyclical working-capital swings.
Read all positive factors
Skanska AB Sponsored ADR Class B (SKBSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.41B
Dividend Yield5.54%
Average Volume (3M)1.47K
Price to Earnings (P/E)16.5
Beta (1Y)0.79
Revenue Growth4.49%
EPS Growth18.39%
CountryUS
Employees25,865
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)16.14
Shares Outstanding400,388,980
10 Day Avg. Volume1,705
30 Day Avg. Volume1,468
Financial Highlights & Ratios
PEG Ratio7.95
Price to Book (P/B)1.69
Price to Sales (P/S)0.59
P/FCF Ratio23.30
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Skanska AB Sponsored ADR Class B Business Overview & Revenue Model
Company Description
Skanska AB (publ) is a leading construction and project development enterprise with operations spanning the Nordic region, wider Europe, and the United States. Its activities are organized into three core divisions: Construction, Residential Devel...
How the Company Makes Money
Skanska primarily makes money through (1) construction contracting, where it bids on and executes projects such as buildings and civil infrastructure for government agencies and private customers, recognizing revenue as work is performed under cus...
Skanska AB Sponsored ADR Class B Earnings Call Summary
Earnings Call Date:Jul 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial picture driven by record order intake, a strong Construction margin (4.3%), robust backlog and healthy cash generation. Central Europe Residential Development performed very well, Investment Properties were stable, and the company maintains a solid adjusted net cash position. Offsetting these positives are meaningful U.S. Commercial Property writedowns (SEK 464m), weak Nordic Residential Development with SEK 70m of restructuring/warranty charges, a low ROCE (1.3%) in Project Development and reduced available liquidity versus prior quarter. Overall, the operational momentum (record bookings, backlog quality, strong margins and cash flow) outweighs the impairments and short-term RD challenges.Positive Updates
Record Construction Order Intake and Strong Backlog
Order bookings reached a record SEK 68 billion in Q2; order backlog is near SEK 300 billion. Book-to-bill was 114% on a rolling 12-month basis (equivalent to ~21 months of production) and U.S. book-to-bill was reported at 126%, supporting medium-term revenue visibility.
Negative Updates
U.S. Commercial Property Impairments
Commercial Property Development took writedowns amounting to SEK 464 million related to a few U.S. properties, driving a negative operating income for the CD segment of -SEK 170 million in the quarter. Management cited elevated long-term U.S. interest rates and muted transaction activity as drivers.
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Q2-2026 Updates
Positive
Negative
Record Construction Order Intake and Strong Backlog
Order bookings reached a record SEK 68 billion in Q2; order backlog is near SEK 300 billion. Book-to-bill was 114% on a rolling 12-month basis (equivalent to ~21 months of production) and U.S. book-to-bill was reported at 126%, supporting medium-term revenue visibility.
Read all positive updates
Company Guidance
Skanska’s guidance was broadly constructive and metric‑driven: Construction remains a priority with a Q2 operating income of SEK 1.8bn and a 4.3% operating margin (Q2 and rolling 12 months), SEK 68bn order intake in Q2, a record backlog near SEK 300bn and a 114% rolling 12‑month book‑to‑bill (≈21 months production; U.S. book‑to‑bill ~126%); Project Development target ROCE 10% (current Project Development ROCE 1.3%), while Investment Properties delivered SEK 85m operating income, 83% occupancy, SEK 8.3bn property value and a 4.7% average valuation yield (ROCE ~4.8%); Commercial Development was hit by -SEK170m Q2 operating income including SEK 464m U.S. impairments but had SEK 217m divestment gains, 17 ongoing projects (SEK 12.8bn total investment) and 16 completed projects (SEK 18.5bn, 77% leasing, 54,000 sqm leased in Q2); Residential Development revenue SEK 1.7bn, EBIT SEK 25m (1.5% margin) with Central Europe EBIT SEK 122m (23% margin; 18% rolling 12m), 156 units started/132 sold and a sales ratio up to 55%; group operating income from businesses SEK 771m (central line +SEK 334m; business operations +SEK 559m), net financial items SEK 241m, tax rate 24%, strong operating cash flow despite a SEK 5.9bn dividend, working capital SEK 33.9bn (Q1: SEK 31.6bn), capital employed SEK 63.4bn (Q1: 66.3), available funds SEK 23.1bn (SEK 7bn undrawn), adjusted net interest‑bearing receivable SEK 8.7bn, return on equity just under 11%, and a 64% reduction in carbon emissions vs 2015—with a stable/positive market outlook in civil and selected building segments, raised Nordic building outlook for Sweden and Finland, and caution on U.S. transaction markets due to elevated long‑term rates.Skanska AB Sponsored ADR Class B Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 175.57B | 176.66B | 176.48B | 167.17B | 163.17B | 143.87B |
| Gross Profit | 15.59B | 13.65B | 14.48B | 13.43B | 16.69B | 15.71B |
| EBITDA | 12.28B | 9.57B | 9.50B | 11.50B | 13.15B | 11.02B |
| Net Income | 6.67B | 5.70B | 5.55B | 5.00B | 8.26B | 6.86B |
Balance Sheet | ||||||
| Total Assets | 166.15B | 158.29B | 171.21B | 155.19B | 151.59B | 139.04B |
| Cash, Cash Equivalents and Short-Term Investments | 29.82B | 28.91B | 32.20B | 17.91B | 10.01B | 10.95B |
| Total Debt | 5.88B | 15.87B | 19.11B | 17.77B | 14.09B | 14.44B |
| Total Liabilities | 104.45B | 96.34B | 108.59B | 98.84B | 96.34B | 93.24B |
| Stockholders Equity | 61.47B | 61.76B | 62.47B | 56.20B | 55.11B | 45.68B |
Cash Flow | ||||||
| Free Cash Flow | 12.43B | 4.47B | 9.11B | 612.00M | -1.78B | 5.51B |
| Operating Cash Flow | 11.25B | 7.41B | 9.11B | 3.21B | 480.00M | 7.44B |
| Investing Cash Flow | -5.17B | -7.38B | -5.77B | 6.00B | 3.92B | -11.37B |
| Financing Cash Flow | -6.96B | -7.67B | -2.84B | -1.25B | -5.57B | -5.05B |
Skanska AB Sponsored ADR Class B Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $15.15B | 34.56 | 36.67% | ― | 60.83% | 51.23% | |
72 Outperform | $11.41B | 16.54 | 10.96% | 5.54% | 4.49% | 18.39% | |
70 Outperform | $16.59B | 48.97 | 9.81% | 1.00% | 20.03% | -28.63% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $8.24B | 28.46 | 12.54% | 1.89% | -4.24% | -44.22% | |
58 Neutral | $7.33B | -4.44 | -57.08% | 6.65% | -4.77% | -151.32% | |
58 Neutral | $5.11B | -30.57 | -16.01% | 0.45% | 21.80% | -204.13% |
* Industrials Sector Average
SKBSY
Skanska AB Sponsored ADR Class B
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.