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Managing risk and staying ready to deliver projects in demand has been Skanska’s story for several quarters in a row. This thread of economic and geopolitical headwinds continued during the company first quarter results call Thursday
The Sweden-based contractor reported success in its construction sector, particularly building data centers and infrastructure projects in the US
Although the first quarter saw the start of the Iran war, CFO Pontus Winqvist told Construction Dive that most of the cost impacts have been limited to fuel, which Skanska has navigated without seeing any larger side effects yet.
“Is there a shortage of some material? It’s not what we’ve seen. But of course we have to be humble about what might happen in the future,” Winqvist said. “But in the first quarter, I can’t say we’ve seen any material impact.”
In the long run, high oil prices may begin to affect the costs of vital materials for data center infrastructure or construction, such as asphalt or plastic inputs for pipes. However, Winqvist said the company has hedged against that risk.
“Some of our exposure is taken by subcontractors or our customers,” he said. “I can’t say that’s going to make a big difference to the bottom line.”
Booming sectors
Both infrastructure and data center construction in the US have faced headwinds.
The Employment and Infrastructure Investments Act is scheduled to reach the end of its authorization period in September, prompting stakeholders to push for a new road bill. Winqvist remained optimistic that would happen based on continued demand for the major road projects that have filled Skanska’s coffers.
Meanwhile, energy costs and public pushbackk have acted as obstacles to the construction of the data center. This is something that Skanska is tracking.
“We’ve heard that too. People in these cities, individuals don’t like the increased number of data centers because they’re ugly and they use energy. Energy prices could go up locally,” Winqvist said. “It’s a potential risk.”
As a result, Skanska said it is willing to help major customers develop data centers in other locations, if necessary.
By the numbers
Skanska reported operating profit of 1.14 billion Swedish kroner ($123.5 million) for the first quarter of 2026, up about 5 percent from the same period a year earlier. Construction remained the strongest point for the construction company, with 1.1 billion crowns in profits from this sector.
The backlog has remained “historically high,” said CEO Anders Danielsson, a descriptor he has used to categorize the company’s award-winning work for several quarters in a row. Skanska recorded 267.5 billion kroner in work during the quarter, 1.4% more than in the first quarter of 2025.
Top awards for the first quarter include $534 million bridge deck replacement for the Vincent Thomas Bridge in Los Angeles — for which Skanska’s share of the work is worth $320 million — and the $165 million contract with Texas A&M University to build a new biology building in College Station, Texas.
