Swedish engineering consultancy Sweco has posted improved operating margins for the second quarter of 2026, with seven of its eight regional divisions reporting revenue growth, according to results released today. The company, which provides architecture, engineering, and environmental services across Europe, said its operating margin widened compared to the same period last year, helped by a shift towards higher-value project work and tighter cost management.
Group revenue rose in most markets, with notable strength in Sweden, Norway, and Central Europe. The only region to record a decline was Finland, where weaker construction activity weighed on demand. Sweco’s order backlog remained at elevated levels, providing a solid pipeline of work for the coming quarters.
Analysts at several Nordic brokerages noted that the margin improvement was ahead of consensus expectations, with the company benefiting from its exposure to public-sector infrastructure spending and the green energy transition. “Sweco continues to demonstrate that it can grow profitably even in a mixed macroeconomic environment,” one analyst commented.
For UK investors, Sweco’s performance offers a window into broader European infrastructure trends. The company’s UK arm, which is part of its Western Europe segment, contributed to the regional growth, with demand for water, transport, and energy consultancy services holding up well. The group’s results also reinforce the narrative that engineering consultancies are benefiting from long-term structural drivers such as decarbonisation and urban renewal.
Shares in Sweco rose in Stockholm trading on the day of the announcement. The broader European construction and engineering sector has seen mixed performance in 2026, with higher interest rates weighing on private-sector building but public infrastructure spending providing a floor.