Luca Calarailli has spent decades at the intersection of architectural design and large-scale construction management, observing how global giants navigate the volatile waters of international infrastructure. In an era where many firms are bracing for economic cooling, his insights into the industry’s recent performance reveal a sector hitting its stride through selective bidding and a heavy focus on high-demand technical facilities. By dissecting the strategic maneuvering behind a historic $7 billion order intake, Calarailli provides a masterclass in how a company can insulate itself from geopolitical shifts and domestic regulatory hurdles. Our conversation explores the underlying drivers of this growth, from the massive American appetite for civil works to the complex risk management required in a world of fluctuating material costs.
The discussion explores the surge in the U.S. construction market, the strategic importance of data centers despite political moratoriums, the methodology of risk management during global conflicts, and the operational stability provided by a record-breaking 21-month project backlog.
The U.S. market recently contributed nearly $4 billion to a record-breaking quarter for the firm, marking a significant surge in momentum. How does a single region manage to drive such a massive portion of a global firm’s order intake, and what does this say about the current appetite for large-scale projects in America?
The sheer scale of the American market right now is staggering, with 39.5 billion Swedish krona in new work flowing in during just a three-month window. This isn’t just a minor uptick; it represents a 20% increase in order bookings compared to the same period in 2025, which really underscores a robust, almost hungry, environment for infrastructure. When you see a global total of 68 billion krona in bookings, and more than half is coming from one geography, it tells you that the U.S. has become the primary engine of growth. There is an unmistakable sense of urgency in sectors like civil infrastructure and technology-driven builds that keeps the pipeline overflowing. While executives are cautious about calling it a permanent trend based on one quarter, the physical reality on the ground is that the American market is currently providing the most fertile soil for record-breaking expansion.
With material costs fluctuating wildly due to conflicts in the Middle East and oil price volatility, how are firms shielding their profit margins from these unpredictable overhead spikes?
Protecting margins in this climate requires a level of forensic risk management that we haven’t seen in years. We saw costs drop noticeably in June, only to watch the pendulum swing back in July as the Middle East crisis directly impacted oil and fuel prices. To counter this, the focus has shifted entirely to the bidding phase, where contractors are working tirelessly to ensure they aren’t over-exposed to volatile commodities like fuel. It’s about being incredibly selective and positioning the firm where the market is strongest while refusing to take on the “lumpy” risks of hyper-inflated materials. By monitoring these prices daily and preparing bids that specifically account for geopolitical instability, they can maintain an operating profit, which we recently saw hit 2.1 billion Swedish krona, a 17% jump from the previous year.
Data centers now represent roughly 10% of the firm’s backlog, yet we are seeing states like New York implement one-year moratoriums on new permits via executive orders. Does this political pushback represent a genuine threat to the pipeline, or is the demand simply too high to be derailed?
The moratorium in New York, enacted by Governor Kathy Hochul, is certainly a development that requires close tracking, but it hasn’t dampened the spirits of those on the construction side. From a builder’s perspective, these bans are primarily a hurdle for the developers and clients who handle the planning and permitting phases, rather than the firms executing the construction. The backlog remains incredibly healthy because the unwavering demand for digital infrastructure is outpacing the speed of political intervention. Even with New York’s one-year pause on large builds, the pipeline of potential data center projects remains strong across other geographies. We are seeing a “strong pipeline still” where the need for processing power is so high that if one state pauses, the activity often just shifts or waits out the temporary restriction.
The current backlog has reached an “unusually high” level of 21 months, anchored by massive wins like the Penn Station renovation. What are the operational implications of having nearly two years of work guaranteed on the books?
Having a 297.5 billion krona backlog is like having a massive shock absorber against economic uncertainty; it provides a level of quality and stability that is rare in this industry. At 21 months of work, which is two months higher than what was on the books just last March, the firm can afford to be even more selective about the projects it pursues next. A major piece of this puzzle is the $8 billion Penn Station renovation in New York City, where being named master developer adds immense prestige and a steady stream of revenue, including an initial $70 million already booked. This long-term visibility allows for better labor planning and more aggressive investment in innovation, as the firm isn’t constantly scrambling for the next contract. It’s a position of strength that turns a “good quarter” into a sustainable multi-year campaign of dominance in the civil and building units.
What is your forecast for the civil infrastructure market in the United States over the next few years?
My forecast is one of sustained, high-quality growth driven by the “strong and good” positioning we see in current geographic portfolios. Even if we encounter some lumpiness between quarters, the 11% year-over-year increase in backlog suggests that the industry is moving toward larger, more complex master-developer roles rather than simple transactional builds. We will likely see a continued emphasis on civil infrastructure and data centers, as these sectors are less sensitive to minor economic shifts and more tied to long-term national necessity. As long as firms maintain their rigorous risk management on bids and avoid over-exposure to fluctuating fuel costs, the next few years should see continued record-breaking intakes. The momentum established this quarter isn’t just a flash in the pan; it’s the foundation for a very busy and profitable road ahead in the American landscape.
