Balfour Beatty PLC

BBY

Equity

ISIN GB0000961622 / Valor 372870

LSE London Stock Exchange, SETS (2026-07-31)

GBP 8.63-1.32%

Balfour Beatty PLC
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About company

Balfour Beatty PLC is a leading international infrastructure group with a significant presence in the construction and engineering sectors. Established in the early 20th century, the company has expanded its operations through strategic acquisitions and organic growth, positioning itself as a key player in the global market. Balfour Beatty's business encompasses a wide range of services, including construction services, civil engineering, and the development of public-private partnership (PPP) projects. The company has a strong foothold in the United Kingdom, the United States, and Hong Kong, reflecting its strategic focus on these three geographies. Over the years, Balfour Beatty has broadened its portfolio by acquiring companies such as GMH’s Military PPP accommodation business, Centex Construction in the US, Mansell, and Birse in the UK, as well as establishing a significant joint venture, Gammon Construction, in Hong Kong. Additionally, the formation of Balfour Beatty Investments in the 1990s marked the company's foray into financing solutions, further diversifying its service offerings to meet the comprehensive needs of its customers in achieving their project goals.

Summarized from source with an LLMView SourceSector: Industrials

Key financials

Revenue £10,767m (+8%); underlying profit from operations (PFO) from earnings-based businesses £293m (+16%); total underlying PFO £252m (2024: £248m); underlying EPS 47.6p (+9%); statutory basic EPS 52.6p.

Balance sheet & cash

Average net cash (recourse) £1,212m (2024: £766m); year-end net cash £1,446m (ex‑non‑recourse); directors’ valuation of Investments portfolio £1.1bn after £120m disposals.

Shareholder returns

Full‑year dividend increased 12% to 14.0p per share (final 9.8p recommended) and the Board announced a £200m share buyback for 2026 under its multi‑year programme; total expected cash return to shareholders in 2026 ~£267m.

Order book and pipeline

Record order book £22.7bn (+23%), driven notably by >£3.5bn of UK power generation contracts (Sizewell C, Net Zero Teesside) and higher power transmission work; significant further pipeline in UK energy, defence, transport and US buildings.

Division performance — Construction Services

Construction Services revenue £8,711m (+6%); UK Construction PFO £110m with margin >3% (one year ahead of target); US Construction revenue up but PFO down to £25m owing to cost overruns on one US civils project (recoveries being pursued); Gammon margin improved despite lower volumes.

Division performance — Support Services

Support Services revenue £1,427m (+18%); PFO £122m, achieving an 8.5% PFO margin (above the 6–8% target) driven by rapid growth in UK power transmission and distribution work.

Infrastructure Investments & compliance

Infrastructure Investments PFO £5m (pre‑disposals operating loss £31m) with £36m gains on disposals; portfolio continued active recycling of assets. Balfour Beatty Communities’ DOJ monitorship and plea agreement were extended to 6 June 2026.

Non‑underlying items & cash flow

Non‑underlying items after tax were a net credit of £25m in 2025 (including release of a US claim provision, charges under the UK Building Safety Act and a disposal gain). Strong operating cash generation produced a net cash increase of £503m in the year.

Outlook

The Board expects a high single‑digit percentage increase in PFO from earnings‑based businesses in 2026, continued margin improvement in UK Construction, recovery in US Construction as the delayed civils project completes, further Support Services growth and average net cash of £1.3–1.5bn in 2026.

Summarized from source with an LLMView Source

Key figures

58.8%1Y

147%3Y

183%5Y

Performance

22.5%1Y

23.2%3Y

23.3%5Y

Volatility