Underlying profit from operations held steady at £77 million
LONDON: Balfour Beatty Plc (BALF.L) reported a 7% rise in profit from its earnings-based businesses for the half year ended June 27, 2025, driven by robust UK operations and a growing order book that now stands at £19.5 billion.
The infrastructure group said it remains on track to meet full-year expectations, with momentum building in its core markets and a ten-year pipeline of approximately £20 billion, including major projects such as Sizewell C and power transmission schemes.
Underlying profit from operations held steady at £77 million, while profit from earnings-based businesses rose to £108 million from £101 million a year earlier. Support Services led the growth with a 35% profit increase, fueled by demand in the power transmission sector.
UK Construction achieved its 3% margin target a year ahead of schedule, while US Construction posted a first-half loss due to cost overruns on a Civils project, partially offset by strong Buildings performance.
Group Chief Executive Leo Quinn said the company’s “continuing strong cash generation is underpinned by a growing order book with improved margins and lower risk contract forms,” adding that recent UK Government infrastructure announcements align closely with Balfour Beatty’s capabilities.
Average net cash rose to £1.1 billion, up from £766 million in FY2024, supporting £188 million in shareholder returns so far this year. The interim dividend was raised 11% to 4.2 pence per share.
Infrastructure Investments posted a £10 million loss, with a forecasted £30–£40 million gain on disposals in the second half. The company also reached an agreement in principle with the U.S. Department of Justice to extend its military housing monitorship to June 2026.
Despite a 6% drop in underlying earnings per share to 14.4 pence, Balfour Beatty said its high-quality order book and strategic positioning in key sectors provide visibility for further growth into 2026 and beyond.