Will US School Win and Net Zero Office Investment Shift Skanska's (OM:SKA B) Growth Narrative?

• Skanska recently announced it has secured a US$63 million contract for the construction of a new middle school in Ocala, Florida, and is investing €74 million in a cutting-edge, net zero office project in Poznan, Poland.
• These initiatives showcase Skanska's focus on sustainable construction and its ongoing expansion in both the US education and Central European commercial sectors.
• We'll explore how major project wins, like the new school in Florida, could influence Skanska's future growth expectations and risk profile.

Find companies with promising cash flow potential yet trading below their fair value.

Skanska Investment Narrative Recap

Owning Skanska means believing in the company's ability to capitalize on sizable, high-quality projects in growing markets while steadily advancing sustainable construction. The recent US$63 million Florida school project and €74 million investment in Poland extend Skanska's presence in key segments, but unless the US commercial property divestment market improves, the biggest short-term catalyst, successful asset recycling, remains largely unaffected, while risks around capital allocation and earnings volatility still persist.

Of the recent announcements, Skanska’s third quarter 2025 earnings stand out for investors monitoring short-term financial momentum. Stable net income and healthy earnings per share reinforce that while new contracts support long-term visibility, short-term results will likely be most influenced by broader U.S. and Nordic market trends, rather than individual project wins.

However, what investors should pay particular attention to is the ongoing impact of slow property transactions in the U.S. commercial real estate market...

Read the full narrative on Skanska (it's free!)

Skanska's outlook anticipates SEK206.4 billion in revenue and SEK9.0 billion in earnings by 2028. This scenario is based on a projected 3.8% annual revenue growth rate and a SEK2.8 billion increase in earnings from the current SEK6.2 billion.

Uncover how Skanska's forecasts yield a SEK275.00 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Six different fair value estimates from the Simply Wall St Community range from SEK160 to SEK338, signaling broad disagreement over Skanska’s worth. With the current risk of delayed U.S. property sales, readers should recognize how widely outlooks can vary when forecasting future performance.

Explore 6 other fair value estimates on Skanska - why the stock might be worth 36% less than the current price!

Build Your Own Skanska Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Skanska research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Skanska research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Skanska's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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