Swedish giant expecting civils market to be weaker than predicted

Skanska is warning that it expects its UK business to hit a downturn over the coming year as the firm said its 2022 income jumped 9% to more than SEK161bn (£12.7bn).

Announcing its full year results today, the Swedish giant rated the UK building sector as “weak” in the coming year while it said the civils sector would be weaker than it had previously expected.


Skanska is working in a joint venture building tunnels in and out of Euston for the new HS2 station

But it said building and civils work in the US would be strong with the firm upgrading its building work across the Atlantic to a rating of stronger than expected.

Group revenue for the year was SEK161.6bn (£12.7bn), up from SEK 147.6bn (£11.6bn), with SEK156bn (£12.3bn) of that figure coming from construction.

But operating income fell 5% to SEK9.3bn (£732m) – largely as a result of falling sales from its residential arm – although the figure from construction rose 15% to SEK5.7bn (£449m).