Balfour Beatty (LON:BBY) reported higher first-half profits from its earnings-based businesses, driven by strong performances in UK construction and support services, despite losses in its U.S. operations.
Shares opened at a record 580p but later reversed, trading down 2.9% at 552p.
Chief Executive Leo Quinn said: “Our continuing strong cash generation is underpinned by a growing order book with improved margins and lower risk contract forms.”
WELCOME BONUS - Free Share Bundle When You Invest £50!
Open a UK Investment Account: Shares, ISAs, Managed Portfolio
Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.
IG
View Offers
Empfohlener Broker
Multi Asset Platform
He added that this has provided the company with increasing confidence in significant future cash generation, supporting ongoing dividends and share buybacks.
Profit from earnings-based businesses rose 7% to £108 million, with UK construction achieving its 3% margin target a year ahead of schedule.
Support services profits climbed 35% to £46 million, driven by growth in the power transmission business.
The company said that recent UK Government announcements “confirm a deep pipeline of major infrastructure projects.”
However, U.S. construction posted a first-half loss, with strong results in the buildings division offset by cost overruns on a single civils project, where recoveries are being pursued.
The order book rose to £19.5 billion from £18.4 billion at year-end 2024, supported by a pipeline of major infrastructure projects such as Sizewell C and power transmission schemes.
Average net cash increased to £1.1 billion, while the half-year dividend was raised 11% to 4.2p.
Balfour Beatty reaffirmed its full-year outlook, expecting higher underlying profit from operations in 2025 and further growth in 2026.
“The Group’s outlook across its four strategic growth markets – UK energy transition and security, UK transport, UK defence, and US buildings – has continued to strengthen, supported by successful bidding activity and increased clarity around the UK’s infrastructure agenda,” stated Balfour Beatty.
Searching for the Perfect Broker?
Discover our top-recommended brokers for trading or investing in financial markets. Dive in and test their capabilities with complimentary demo accounts today!
- IG Top-tier regulation – Read our Review
- eToro Wide range of instruments available to trade – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
