In an era defined by global volatility and shifting fiscal landscapes, navigating the complexities of large-scale construction requires more than just technical skill; it demands a sophisticated approach to risk and resource management. Luca Calaraili, an expert with deep roots in architecture and a keen eye for technological innovation, joins us to discuss how the industry’s major players are insulating themselves from geopolitical shocks and localized pushback. Today, we explore the strategies behind managing a historically high backlog of $267.5 billion SEK while maintaining the agility to pivot between massive civil infrastructure and specialized high-tech facilities.
During periods of geopolitical instability, fuel costs and material inputs like asphalt or piping plastics often fluctuate. Please explain how you structure agreements with subcontractors to hedge against these risks, and provide specific metrics you monitor to ensure project profits remain stable during periods of localized cost volatility.
When geopolitical events like the conflict in Iran create ripples in the energy market, our first line of defense is a highly structured contractual framework that distributes risk appropriately across the supply chain. We ensure that a significant portion of the exposure to price swings is absorbed either by our subcontractors or shared with our clients, which prevents localized spikes in fuel or oil-based materials from eroding our margins. While we monitor the rising prices of oil closely, as they directly impact the cost of asphalt and plastic piping, our focus remains on the “material impact” to our bottom line. In the first quarter of 2026, despite these external pressures, our construction sector still delivered a robust profit of 1.1 billion krona. By locking in rates and maintaining a humble, watchful eye on scarcity trends, we have successfully navigated these headwinds without seeing any major difference in our overall profitability.
Federal infrastructure funding authorizations often approach expiration, creating uncertainty for industry stakeholders. Describe the steps necessary to maintain momentum on large-scale projects like bridge deck replacements during these cycles, and share how a historically high backlog influences your strategic planning for future highway legislation.
The key to maintaining momentum when legislation like the Infrastructure Investment and Jobs Act nears its expiration is a relentless focus on the massive, long-term demand that already exists in the pipeline. We rely on a historically high backlog, which recently reached 267.5 billion krona, to provide the stability needed to commit to complex projects regardless of short-term political cycles. For instance, the $534 million bridge deck replacement for the Vincent Thomas Bridge in Los Angeles is a project of such critical importance that it transcends the immediate anxiety over new highway bills. Because our share of that work alone is worth $320 million, we plan our resource allocation years in advance, ensuring that we are prepared to deliver even as stakeholders push for future authorizations. This “historically high” volume of awarded work acts as a buffer, allowing us to remain optimistic about the passage of future legislation while keeping our crews and equipment fully engaged.
Data center construction faces rising public concern regarding energy consumption and local aesthetics. When a community pushes back against a proposed site, what is the step-by-step process for evaluating alternative locations, and how do you help major clients manage the potential for rising local power costs?
We recognize that the rapid expansion of data centers has created a tension point where local residents often view these structures as unattractive or as a drain on local energy resources that could drive up prices. Our evaluation process starts with a proactive risk assessment of the local energy grid and community sentiment; if we identify significant resistance or a risk of soaring power costs, we work directly with our clients to scout alternative geographic locations that are more welcoming or have superior infrastructure. We don’t just build where we are told; we help our clients pivot to regions where they can operate sustainably without the friction of local pushback. This consultative approach is essential because energy prices can fluctuate wildly at a local level, and we must ensure the long-term viability of the asset for the client. By tracking these risks early in the pre-construction phase, we can transition a project to a more favorable site before significant capital is sunk into a contested area.
Managing a massive portfolio ranging from civil engineering works in California to specialized academic buildings in Texas requires intense coordination. Detail how you balance the operational risks of such diverse sectors, and share an anecdote about maintaining delivery quality while scaling up to record levels of awarded work.
Balancing a portfolio that spans from a $320 million infrastructure project in California to a $165 million specialized biology building for Texas A&M requires a decentralized management style supported by centralized financial controls. We mitigate operational risks by treating each sector—infrastructure and specialized building—as its own center of excellence while sharing best practices across the firm. A clear example of maintaining quality during this scale-up was our performance in the first quarter of 2026, where we saw a 5% increase in operating profit to 1.14 billion krona despite the logistical complexity of simultaneous massive starts. Scaling to record levels of work means we must be extremely selective with our teams, ensuring that the same high standards applied to a bridge deck are mirrored in the precise laboratory environments of a university building. We thrive on this diversity, as the strength in the U.S. construction market often offsets slower periods in other global regions, allowing us to remain poised for growth.
What is your forecast for the U.S. infrastructure and data center construction markets?
My forecast is one of continued resilience and steady growth, driven by a persistent demand for modernized transit and digital storage that far outweighs current economic headwinds. Even with the uncertainty of upcoming highway bills, the sheer volume of our backlog—which grew 1.4% year-over-year—suggests that the appetite for major civil works remains insatiable. We expect data center construction to remain a powerhouse, provided we continue to solve the energy and aesthetic challenges that communities are now raising. As long as we maintain our disciplined approach to risk and keep our exposure to material price volatility hedged, the U.S. market will continue to be the primary engine of our profitability for the foreseeable future.
