Swedish construction giant Skanska (SKA_B) announced on Tuesday that it is raising the operating margin target for its construction division to at least 4.0%, up from its previous goal of 3.5%. The company did not specify a time frame for achieving the revised target.

"During the last five years we have improved earnings quality and predictability in our Construction business stream," said Skanska President and CEO Anders Danielsson, highlighting the company’s operational progress.

Despite the higher margin target, Skanska confirmed that its other financial targets remain unchanged. Earlier this month, the firm reported a third-quarter operating profit below analysts' expectations and recorded writedowns of 658 million Swedish crowns ($69.4 million) on its U.S. property holdings.

The revised margin target underscores Skanska’s focus on improving efficiency and profitability in its core construction operations, even amid challenges in some markets.