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. 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. Return on capital employed and on equity are measures of how well lender and shareholder capital are being used (capital efficiency), and are considered fair measurements for the Project Development business streams and the Group, respectively.

Outcome - 2018

The operating margin in the Construction business stream was below the target. The operating income was negatively affected mainly by impairment of goodwill in USA, restructuring of business units within Construction in Europe and project writedowns in Poland and USA. Project development continued to perform at high level, with return on capital employed of 13.0 percent, topping the target of at least 10 percent. Commercial Property Development had another record year in 2018 with an all-time high in gains from divestments surpassing SEK 4 billion. In 2018, return on equity of 14.1 percent, was below target. Skanska’s financial position remains strong.

Area Targets 2016-2020 Outcome 2018 Goal met


Average margin ≥ 3.5%

The operating margin was 0.7% No
Project development Annual return on capital employed for the combined project development operations ≥ 10%  
Return on capital employed was 13.0%

Return on equity ≥ 18%

Group: Return on equity was 14.1% No
Financial strength Net operating financial assets/liabilities can be negative if opportunities arises Net operating financial assets/liabilities were SEK 14.2 billion Yes

As of January 1, 2019, Infrastructure Development is no longer a business stream. As a consequence the Return on capital employed target for Project Development is no longer including Infrastructure Development. In addition, return in Commercial Property Development business stream is based on yearly earnings and not on successive value creation.