Business model

Projects are the core of Skanska's operations. Value is generated through the thousands of projects the Group executes each year. The goal is for every project to be profitable while being executed in line with Skanska's purpose of building for a better society.

Our goal

Projects are the hub of Skanska's operations. The goal is for every project to be profitable while being carried out in line with our purpose and values and our targets.

Our operations

Skanska operates in four business streams:

  1.  Construction
  2.  Residential Development
  3.  Commercial Property Development 
  4.  Infrastructure Development

Skanska's business model

How we create value

Multiple synergies within the Skanska Group generate increased value for shareholders. The main synergies are operational and financial.

Operational synergies

Operational synergies are primarily generated by using the local, specialized expertise found in the various Business Units on a global scale. Units in different business streams often collaborate on specific projects, which reinforces their customer focus and creates the necessary conditions for sharing best practices, while ensuring efficient utilization of the Group’s collective expertise and financial resources. Units in the same business stream also collaborate to make better use of expertise or size. Business Units establish geographical clusters to share resources and expertise, with shared activities in procurement and production development also boosting efficiency.

Financial synergies

A cornerstone in Skanska's strategy is to take advantage of financial synergies within the Group by investing the cash flow from construction operations in project development.

Skanska’s Construction business stream does not tie up capital but instead operates with free working capital. The free working capital combined with the profits generated by the Group enables the financing of investments in project development, which generate an excellent return on invested capital. These investments also create new construction contracts for the Construction stream that generate a profit.

Last updated: 8/12/2016