Press Release (RNS)

Strong UK results driving growth in earnings-based businesses

On track to achieve full year expectations with high quality order book momentum

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.

“Support Services has delivered a 35% profit uplift driven by the power transmission business, 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. Balfour Beatty’s market leading positions and ongoing success are a testament to the expertise, dedication and hard work of our people.”

On track to achieve full year expectations with further growth in 2026

• Continue 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
• £19.5 billion order book (FY2024: £18.4 billion) giving visibility and underpinning further growth in 2026 and beyond
• A ten year, c.£20 billion, pipeline of work in addition to order book, including Sizewell C and power transmission schemes

First half growth from the earnings-based businesses

• PFO from earnings-based businesses up 7% to £108 million (2024: £101 million)
• Underlying EPS reduced 6% to 14.4 pence per share (2024: 15.3 pence)
• Non-underlying pre-tax credit of £37 million, including £50 million release of US Civils provision following SH161 settlement

Underlying profit from operations of £77 million in line with prior year

• UK Construction: Delivered profitable underlying growth to achieve 3% margin target one year ahead of expectations
• US Construction: First half loss with strong Buildings performance offset by cost overruns at one Civils project; recoveries being pursued
• Support Services: PFO up 35% to £46 million driven by growth in the power transmission business
• Infrastructure Investments: £10 million loss (2024: £7 million loss). Agreement in principle with US Department of Justice to extend military housing monitorship to 6 June 2026

Balance sheet and cash flow strength support sustainable and attractive shareholder returns

• Average net cash3 increased to £1,102 million (FY2024: £766 million) – expecting £1.1 - 1.2 billion for full year
• Directors’ valuation of the Investments portfolio decreased 8% to £1.2 billion (FY2024: £1.3 billion)
• Half year dividend increased by 11% to 4.2 pence per share (2024: 3.8p). £188 million shareholder returns in 2025

Notes:

1 Including share of joint ventures and associates

2 Before non-underlying items (Note 8)

3 Excluding non-recourse net borrowings, which comprise cash and debt ringfenced within certain infrastructure investments project companies

# Underlying profit from operations, or PFO, as defined in the Measuring our financial performance section

A reconciliation of the Group’s performance measures to its statutory results is provided in the Measuring our financial performance section

To read the announcement in full, click here. 

ENDS 

Investor and analyst enquiries:
Jim Ryan
Tel. +44 (0)7858 368527
jim.ryan@balfourbeatty.com

Media enquiries:
Vivienne Dunn
Tel. +44 (0)203 810 2345
vivienne.dunn@balfourbeatty.com  

Investor and analyst presentation:

A presentation to investors and analysts will be made at Deutsche Numis, 45 Gresham Street, London, EC2V 7BF at 09:00 (GMT) on 13 August 2025. There will be a live webcast of this on: www.balfourbeatty.com/webcast. The webcast will be recorded and subsequently available at Results, reports and presentations - Investors - Balfour Beatty plc.

Notes to editors:

• Balfour Beatty is a leading international infrastructure group with 27,000 employees driving the delivery of powerful new solutions, shaping thinking, creating skylines and inspiring a new generation of talent to be the change-makers of tomorrow.
• We finance, develop, build, maintain and operate the increasingly complex and critical infrastructure that supports national economies and deliver projects at the heart of local communities.
• Over the last 116 years we have created iconic buildings and infrastructure all over the world. Currently, we are working to deliver Hinkley Point C, the first UK nuclear power station in a generation; constructing the world-class arts and cultural facility, the Lyric Theatre, in Hong Kong; and designing, building, financing, operating and maintaining the Automated People Mover superstructure at the fifth busiest airport in the world.