Contractor Balfour Beatty is benefiting from strong half year results and says it is on track to achieve full year expectations with its high-quality order book. The company says that its strong UK results are driving growth in earnings-based businesses and anticipates further growth in 2026.
Leo Quinn, Balfour Beatty Group chief executive, said: “Our continuing strong cash generation is underpinned by a growing order book with improved margins and lower risk contract forms. This provides the Board with increasing confidence in significant future cash generation that supports our ongoing dividends and share buybacks. This is demonstrated by the momentum in our key growth areas in the first half.
“UK Construction has achieved its long-standing 3% margin target earlier than expected and, in US Construction, Buildings reported strong revenue growth from its strategy of focused expansion. Furthermore, recent UK Government announcements confirm a deep pipeline of major infrastructure projects which closely align with the Group’s unique expert capabilities and will further enhance the quality of the future order book.”
The firm says it continues to expect an increase in underlying profit from operations (PFO) from the earnings-based businesses in 2025 with strong UK Construction and Support Services growth offsetting lower US Construction profit. Infrastructure Investments: £30 – £40 million gain on disposals forecast, small pre-disposals loss expected in second half. It has a £19.5 billion order book compared with £18.4 billion for 2024, underpinning further growth in 2026. The firm has a 10 year, £20 billion, pipeline of work in addition to its order book.
Balfour Beatty has a hand in a number of major UK infrastructure projects at present. Being one of the firms involved in the massive Lower Thames Crossing project to deliver a tunnel and highway in the South East of England is a major boost to its operations.
