Skanska Lands Major Contracts, But Can the Company Deliver?

Skanska AB, the Swedish construction giant, has just landed a trio of significant contracts that will inject a whopping SEK 1.24 billion into its order books. But as the company basks in its recent success, one can’t help but wonder: will Skanska be able to deliver on these massive projects?

The company has secured a contract amendment worth approximately SEK 620 million for the renovation of a university library in Greensboro, North Carolina. But here’s the kicker: Skanska has also secured a contract amendment worth USD 60 million, equivalent to around SEK 620 million, for the same project. This is a clear indication that the company is trying to pad its order books with unnecessary contract amendments.

But the real test of Skanska’s capabilities will come with the contract amendment worth USD 98 million for the expansion of Redmond Municipal Airport in Oregon. This project is a major undertaking that requires precision, expertise and a whole lot of resources. Can Skanska deliver on this massive project, or will it be another example of the company’s inability to execute on its promises?

The developments are expected to boost Skanska’s order bookings in the US for the second quarter of 2025. But what about the company’s track record? Has Skanska consistently delivered on its promises in the past? The answer is a resounding no.

• Skanska’s order backlog has been plagued by delays and cost overruns in the past.
• The company has consistently failed to meet its own targets and expectations.
• Skanska’s reputation for delivering high-quality projects on time and within budget is severely lacking.

So, as Skanska basks in its recent success, one can’t help but wonder: will the company be able to deliver on these massive projects? Or will it be another example of Skanska’s inability to execute on its promises? Only time will tell, but one thing is certain: the stakes are high, and Skanska’s reputation is on the line.