Balfour Beatty Delivers Solid H1 Results as UK Performance Offsets US Weakness

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.” 

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.