Balfour Beatty Shares Surge on Strong 2025 Results, £200 Million Buyback

Balfour Beatty (LON: BBY) saw its shares jump today following the release of its full-year results for the year ended December 31, 2025. The construction and infrastructure giant reported significant growth in earnings and a record order book, fueling investor optimism.

The company also announced a £200 million share buyback program for 2026, further boosting shareholder confidence.

Revenue for 2025 reached £10.77 billion, an 8% increase compared to £10.02 billion in 2024. This growth was primarily driven by robust demand in the UK power transmission and US buildings sectors.

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Underlying profit from operations (PFO) from earnings-based businesses rose by 16% to £293 million, up from £252 million the previous year. Underlying earnings per share (EPS) also saw an increase, climbing 9% to 47.6p from 43.6p in 2024.

The company’s strong financial performance has enabled it to reward shareholders handsomely. In addition to the £200 million share buyback, Balfour Beatty increased its full-year dividend by 12% to 14 pence per share, compared to 12.5p in 2024.

Average net cash increased substantially to £1,212 million, a significant rise from £766 million in the prior year, further indicating financial strength.

Balfour Beatty’s order book reached a record £22.7 billion, a 23% increase from the £18.4 billion reported in 2024. This includes over £3.5 billion of new UK power generation projects, demonstrating the company’s success in securing major contracts in key growth areas.

The company anticipates further profitable growth in 2026 and 2027, driven by accelerating demand in its chosen markets.

Driver Breakdown:

• UK Power Transmission: Significant growth in revenue and profitability driven by major infrastructure projects.
• US Buildings: Strong performance in the US buildings sector contributed to overall revenue growth.
• Support Services: PFO up 31% to £122 million, driven by power transmission growth, highlighting the strength of this segment.

Philip Hoare, Balfour Beatty Group Chief Executive, stated: “Since joining in September, I’ve been truly impressed by the depth of talent across Balfour Beatty and the inherent strength of the Group. Our capabilities, the quality of our order book and our disciplined approach to risk provide a powerful foundation for the future.”