Press Release (RNS)

Strong first half performance delivering profitable growth
Full year performance expected to be slightly ahead of prior guidance

Philip Hoare, Balfour Beatty Group Chief Executive, said: “Balfour Beatty enters the second half with real momentum. Our strong first-half performance reflects the quality of our business, the discipline of our execution and, above all, the exceptional contribution of our people in delivering for our customers.

“We have continued to secure high-quality work, drive profitability and generate strong cash flow. By bringing together the best of our people, expertise and capabilities, we are supporting customers as they invest in the infrastructure which economies need to grow, now and into the future. Supported by a £23 billion order book, attractive growth markets and strong operational momentum, Balfour Beatty is well positioned to deliver these programmes safely, efficiently and at scale.

“Together, these strengths give us confidence in our outlook and in our ability to continue generating profitable growth and attractive returns for our shareholders.” 

Strong first half growth driven by the earnings-based businesses

• Higher revenue due to rising demand in US Buildings and UK power transmission
• Underlying profit from operations (PFO) from earnings-based businesses increased to £153 million (2025: £108 million)
• Underlying EPS of 21.7 pence per share (2025: 14.4 pence) 

Underlying profit from operations increased to £119 million

• UK Construction: 3.4% PFO margin (2025 3.6%) representing further progress excluding £10 million 2025 one-off credit
• US Construction: £22 million PFO² (2025: £11 million loss) following strong Buildings growth and reduced Civils losses
• Support Services: £66 million PFO² (2025: £46 million) driven by strong growth in power transmission
• Infrastructure Investments: £9 million loss² (2025: £10 million) driven by monitor and legal costs, which have now ceased 

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

• Average net cash³ increased to £1,616 million (FY 2025: £1,212 million)
• Directors’ valuation of the Investments portfolio maintained at £1.1 billion
• Half year dividend increased by 12% to 4.7 pence per share (2025: 4.2p); £102 million of share buyback completed in half

Increased full year guidance following strong first half

• Low double digit percentage PFO² growth expected from earnings-based businesses, slightly ahead of prior guidance
• Positive outlook underpinned by £22.9 billion order book (FY2025: £22.7 billion) and strength of growth markets
• Average net cash guidance increased by £200 million to a range of £1.5 - £1.7 billion
• Net finance income now expected in range of £35 - £40 million, aligned to the anticipated increased cash performance Implementation of “Evolve, Energise and Explore” profitable growth plan accelerating across the Group 

2026 outlook summary
Following a strong first half performance, the Group has increased 2026 guidance for earnings-based business PFO², net finance income and average net cash. Latest guidance is outlined below.  

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 Bellwood-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 Bank, 21 Moorfields, London, EC2Y 9DB at 09:00 (GMT) on 12 August 2026. 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 delivering the complex, critical infrastructure that keeps economies moving and communities connected.
  • With around 26,000 employees, we finance, develop, build, maintain and operate essential infrastructure across the UK, US and Asia, combining deep engineering and construction expertise with long-term investment capability.
  • For over one hundred years, we have delivered landmark projects around the world. Today, our teams are helping to deliver major programmes including Hinkley Point C, the UK’s first new nuclear power station in a generation; the Lyric Theatre in Hong Kong, a world-class cultural venue at the heart of the West Kowloon Cultural District; and the Knox Street Development in Dallas, Texas, a major mixed-use scheme helping to reshape one of the city’s most vibrant neighbourhoods.