Profits, revenues spark at Balfour Beatty

(Sharecast News) - Balfour Beatty posted a jump in full-year profits and revenues on Wednesday, driven by strong performances in UK construction and support services.

Revenues rose 8% at the infrastructure specialist in the year to December end, to £10.8bn, while underlying profits from operations (PFO) in its earnings-based businesses increased 16% to £293m. Underlying profits in UK construction came in at £110m, up from £81m a year previously, while support services rose to £122m from £93m.

That helped offset weaker performances elsewhere, including in US construction, where profits fell to £25m from £40m, hit by costs overruns at a civils project.

The order book also strengthened, rising 23% to a record £22.7bn, including more than £3.5bn of new UK power generation projects.

Newly-installed chief executive Philip Hoare, who joined in September, said: "Our capabilities, the quality of our order book and our disciplined approach to risk provide a powerful foundation for the future.

"In 2025, the group delivered on expectations with further earnings growth, fuelled by strong operational performance and momentum in chosen growth markets."

However, looking to the current year and the pace of growth was forecast to slow. Balfour said it expects a high single-digit percentage increase in PFO from its earnings-based businesses, including underlying margin growth in UK construction and an improved US construction margin. The delayed civils highway project was expected to complete around the middle of the year, it noted.

Balfour said: "Throughout 2025, Balfour Beatty has continued to focus on its four chosen growth markets - UK energy transition and security, UK transport, UK defence and US buildings - and the outlook for each, combined with the group's order book, underpin the firm expectation of further growth from the earnings-based businesses in 2026 and beyond."

As well as providing construction and support services, Balfour develops and finances public and private infrastructure projects and operates a portfolio of long-term infrastructure assets.