TL:DR
Despite ongoing challenges in the European building sector, Skanska, the Sweden-based global construction and development firm,
delivered strong financial results in 2024, reporting a record-high order backlog and double-digit revenue growth.
Skanska’s full-year revenue climbed 13% to SEK 177.2 billion (US$17.3 billion), driven by strong demand in the US and strategic growth in key sectors.
Operating income for the year reached $687 million, a 121% increase year-over-year,
reflecting strong operational efficiency.“We have a record-high backlog,” Skanska President and CEO Anders Danielsson said at the onset of the conference call, noting later in the discussion: “We go with projects where we see that we have a competitive advantage and the right teams in place.”
3 Takeaways
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Record-high backlog led by outperforming US infrastructure and data centres segments.
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European civil construction holds steady, but building sector remains weak.
- Ending the year on a strong note, selectivity in the future.
My Thoughts 💭
They have a good balance sheet. Enough cash to completely pay off its debt:
They pay a dividend
It’s cheap relative to the S&P 500
I been impressed with this company since I started the ~Construction_and_Engineering territory. They constantly win bids in the American market and it appears they are extremely well run.
I’m not looking to get rich or earn massive returns on this stock but I’m extremely impressed with this business making profit in construction with a great balance sheet.