Margins rise in Norwegian construction

Norway’s construction industry appears to have bottomed out. Bankruptcies fell 18 percent in 2025 and margins are rising for the first time since 2021, a new BDO analysis shows.

Profitability in Norway’s construction sector is improving. Operating margins rose from 3.7 to 3.9 percent, the first increase since 2021, according to a new BDO analysis.

The analysis covers 4,545 companies with revenues above NOK 30 million. Nominal revenue grew four percent year on year. Bankruptcies in the sector fell 18 percent in 2025, while levels across the rest of the Norwegian economy held steady.

“After several years of high bankruptcy levels, sharp cost increases and falling margins, the industry is now showing signs of improvement. We believe activity levels have bottomed out,” says Henning Dalsegg, partner and head of construction at BDO Norway.

Dalsegg credits better cost and risk management. The largest players are also starting to realise gains from recent acquisitions. But median operating margins have kept falling over five years. That suggests the recovery is driven mainly by the biggest companies.

Conditions remain tough for smaller firms. The same goes for those exposed to the residential and holiday home markets. Construction costs before land value and profit hit around NOK 75,000 per square metre in July 2026. Average sales prices in many municipalities stay below NOK 50,000.

Public demand and infrastructure projects are becoming key drivers.

“On the demand side, investments in the power grid, defence spending and a significant maintenance backlog will contribute to high activity going forward,” says Dalsegg.

Data centre construction is also singled out as a clear growth opportunity, for contractors and subcontractors alike.