Skanska's Strategic Expansion in U.S. Infrastructure: A Case for Stronger Earnings and Growth in 2026-2028

In the ever-evolving landscape of U.S. infrastructure, Skanska has emerged as a formidable player, leveraging a combination of large-scale contracts, margin discipline, and operational innovation to position itself for sustained growth. With a $8.6 billion active and planned project portfolio in the U.S. as of 2025-over half of which is dedicated to transportation projects-the Swedish construction giant is not merely capitalizing on current demand but strategically aligning itself with the long-term trajectory of American infrastructure needs. From the twin-bored tunnels of the Los Angeles Metro Purple Line to the data centers powering the AI revolution, Skanska's recent wins and operational strategies suggest a compelling case for investors seeking exposure to a sector poised for expansion.

Revenue Visibility: A Pipeline Anchored in Megaprojects

Skanska's U.S. infrastructure pipeline is a masterclass in revenue visibility. The company's involvement in high-profile projects such as the Los Angeles Metro Purple Line extension and the Seattle Link Light Rail expansion underscores its ability to secure contracts with multiyear timelines and predictable cash flows. For instance, the Purple Line's 3.9-mile segment, expected to open in early 2024, and the Gold Line's 1.9-mile extension, slated for 2025, provide a clear revenue runway. Meanwhile, the Seattle-Tacoma Light Rail project, with a completion date in late 2024, further cements Skanska's near-term earnings potential.

Beyond transportation, Skanska has diversified into high-growth sectors like data centers and life sciences. In Q4 2024 alone, the company secured a $4.7 billion contract to upgrade Boston's Logan Airport and a trio of data center projects totaling $426 million, with construction beginning in 2026. These contracts, coupled with Microsoft's data center partnerships in Georgia and Arizona, highlight Skanska's ability to tap into the surging demand for AI-ready infrastructure. As one industry analyst noted, "Skanska's mix of legacy infrastructure and cutting-edge projects creates a dual engine for growth".

Margin Stability: Operational Efficiency as a Competitive Edge

While revenue visibility is critical, Skanska's recent financial performance demonstrates that margin stability is equally well-entrenched. In Q3 2025, the company reported a 4.2% operating margin for its Construction business, up from 3.6% in the same period in 2024. This improvement reflects a deliberate shift toward infrastructure and data center projects, which typically offer more predictable cost structures compared to commercial property development. Skanska's decision to raise its financial target for the Construction segment to ≥4.0% operating margin-up from 3.5%-further signals confidence in its ability to manage costs.

Operational efficiency is underpinned by strategic investments in technology and alternative construction methods. The company's advocacy for off-site manufacturing and prefabrication, for example, addresses labor shortages while accelerating project timelines. Similarly, the integration of Building Information Modeling (BIM) and automation tools has reduced material waste and improved scheduling accuracy. These innovations are not just cost-saving measures; they are enablers of scalability in a sector grappling with inflationary pressures and supply chain volatility.

Operational Scalability: Building for the Future

Skanska's long-term growth hinges on its ability to scale operations without sacrificing quality or profitability. The company's realignment of its Skanska Advanced Technology (SAT) division in 2025 is a case in point. By centralizing expertise in data center and semiconductor construction, Skanska has created a streamlined model that enhances resource deployment and client experience. This move is particularly timely, given the surge in demand for AI infrastructure and edge computing facilities.

Workforce expansion and partnerships are also key to Skanska's scalability. The company has acknowledged the industry-wide labor shortage-estimated at 450,000 workers-and is mitigating this risk through strategic investments in training programs and public-private partnerships (P3s). Additionally, Skanska's growing portfolio of operations-and-maintenance (O&M) contracts provides a recurring revenue stream, reducing reliance on one-time construction projects. As the Fall 2025 Construction Market Trends Report notes, these strategies position Skanska to navigate macroeconomic uncertainties while maintaining growth momentum.

Conclusion: A Compelling Investment Thesis

For investors, Skanska's U.S. infrastructure strategy offers a rare combination of near-term revenue visibility, margin resilience, and long-term scalability. The company's ability to secure high-value contracts in both traditional and emerging sectors-while simultaneously investing in operational efficiency and workforce development-creates a durable competitive advantage. As the U.S. continues to prioritize infrastructure modernization and AI-driven economic growth, Skanska is well-positioned to outperform peers and deliver value to shareholders through 2028 and beyond.