Skanska generates value through the thousands of projects executed each year, in line with Skanska’s ambition to deliver an industry-leading total shareholder return. The scale and diversity of the Group’s operations produce operational and financial synergies that create further value.
Skanska operates in three business streams:
- Residential Development
- Commercial Property Development
Skanska's business model
Synergies provide competitive advantages
These operational and financial synergies strengthen Skanska’s ability to deliver for customers and enhance opportunities for generating greater value. This type of collaborations improves the ability to create innovative solutions, to maximize market opportunities, to improve cost control, to strengthen the Group’s financial position and to enhance returns.
Operational and financial synergies
Operational synergies are primarily generated through the local, specialized expertise contained in the business units. Units in the same business stream often collaborate to leverage resources and capabilities, and to share best practices.
In addition, development projects bring together construction and project development units at an early stage, which reinforces a strong customer focus while optimizing use of the Group’s collective technical and financial resources. Skanska’s Construction business stream does not tie up capital as it operates with free working capital. The free working capital combined with profits generated bythe Group, along with the Group’s ability to leverage its balance sheet to borrow money, enable the financing of project development, which generates a return on invested capital. These investments also create new contracts for the Construction stream, generating further profits.