Risk management and remaining poised to deliver on in-demand projects has been the story for Skanska for several quarters in a row. That thread of weathering economic and geopolitical headwinds continued during the firm’s first quarter earnings call Thursday.
The Sweden-based contractor reported success in its construction sector, particularly building data centers and infrastructure projects in the U.S.
Though Q1 saw the start of the Iran War, CFO Pontus Winqvist told Construction Dive most of the cost impacts have been confined to fuel, which Skanska has navigated without yet seeing larger side effects.
“Is there any scarcity of some material? Not what we have seen. But of course, we need to be humble for what can happen going forward,” Winqvist said. “But in the first quarter, I can't say that we have seen any material impact.”
In the long run, elevated oil prices may begin to impact material costs vital to infrastructure or data center builds, such as inputs for asphalt or plastic for piping. However, Winqvist said the firm has hedged against that risk.
“Part of our exposure is either taken by the subcontractors or by our clients,” he said. “I can't say that that will make any major difference for profits.”
Booming sectors
Both infrastructure and data center construction in the U.S. have faced headwinds.
The Infrastructure Investment and Jobs Act is slated to hit the end of its authorization period in September, which has spurred stakeholders to push for a new highway bill. Winqvist remained optimistic that would come to pass based on continued demand for the major roadway projects that have filled Skanska’s coffers.
Meanwhile, power costs and public pushback have acted as roadblocks for data center construction. That’s something Skanska is tracking.
“We have heard that as well. People in those cities, individuals don't like the increased number of data centers because they are ugly and they are consuming energy. Energy prices might rise then locally,” Winqvist said. “It is a potential risk.”
As a result, Skanska said it is prepared to help major clients develop data centers in other locations, should that become necessary.
By the numbers
Skanska reported operating profit of 1.14 billion Swedish krona ($123.5 million) for the first quarter of 2026, a roughly 5% increase from the same period a year prior. Construction continued to be the strongest spot for the builder, with 1.1 billion krona in profit from that sector.
Backlog has remained “historically high,” said CEO Anders Danielsson, a descriptor he’s used to classify the firm’s awarded work for several quarters in a row. Skanska reported 267.5 billion krona in work for the quarter, up 1.4% from Q1 2025.
Major awards from the first quarter include the $534 million bridge deck replacement for the Vincent Thomas Bridge in Los Angeles — for which Skanska’s share of work is worth $320 million — and the $165 million contract with Texas A&M University to construct a new biology building in College Station, Texas.
