Yes, they are executed sequentially. However, if you run a program in the background, the next command in your script is executed immediately after the backgrounded command is started.
#!/bin/sh
# will this get finished before the next command starts?
./someLongCommand1 arg1 &
./someLongCommand2 arg1 &
would result in an near-instant completion of the script; however, the commands started in it will not have completed. (You start a command in the background by putting an ampersand (&) behind the name.