Our overall goals are to generate customer and shareholder value. We aim at becoming a leader in the home markets of our construction business units and a leading project developer in local markets. As a means to reach our financial targets, we have qualitative targets.

Overall goals:

  • To generate customer and shareholder value.
  • To be a leader, in terms of size and profitability, within its segments in the home markets of its construction business units.
  • To be a leading project developer in local markets and in selected product areas.

Financial targets 2016-2020

Skanska’s business plan for the period 2016–2020 sets financial targets that best reflect the profitability of operations and show the Group’s financial capacity for investment and growth. Return on equity and on capital employed are measures of how well shareholder and lender capital are being used (capital efficiency), and are considered fair measurements for the Group and the Project Development business streams, respectively. The operating margin is an expression of the profitability and efficiency within Construction. The margin is dependent on the mix of contract types and the different geographical markets.

Outcome - 2016

In 2016, Skanska reached its return targets, and ended the year with a strong financial position. The Group’s financial strength enables the continuation of increased investments in Project Development. As the value creation from Project Development increases and starts to balance the value created in Construction, the outcome of the return targets for Project Development will maintain at stable levels.

The operating margin in the Construction stream was below the target, mainly due to the operating margin being lower in USA Civil and negative in Poland.

The table shows the financial targets for the period 2016–2020 as well as the outcome for 2016. In 2015, all of the financial targets in the business plan were reached exept for the Construction target.

AreaTargets 2016-2020Outcome 2016Goal met


Return on equity

Group: Return on equity was 28.3% Yes
Financial strength Net operating financial assets/liabilities can be negative if opportunities arises Net operating financial assets/liabilities were SEK 10.6 billion Yes

Average margin 3.5%

The operating margin was

Project development operations

Annual return on capital employed for the combined
project development operations ≥ 10%


Return on capital employed was



For more detailed information on our targets, see Financial targets.