Balfour Beatty Releases 2025 Half-Year Results
Balfour Beatty, the international infrastructure group, has delivered a solid set of results for the first half of 2025, demonstrating the strength of its diversified portfolio and strategic positioning in key growth markets. Group Chief Executive Leo Quinn highlighted the company’s continued momentum in cash generation, the expanding order book, and a pipeline of opportunities that reinforces confidence in future performance.
Speaking on the results, Quinn stated:
“Our continuing strong cash generation is underpinned by a growing order book with improved margins and lower-risk contract forms. This provides the Board with increasing confidence in significant future cash generation that supports our ongoing dividends and share buybacks. This is demonstrated by the momentum in our key growth areas in the first half.
Support Services has delivered a 35% profit uplift driven by the power transmission business, UK Construction has achieved its long-standing 3% margin target earlier than expected and, in US Construction, Buildings reported strong revenue growth from its strategy of focused expansion. Furthermore, recent UK Government announcements confirm a deep pipeline of major infrastructure projects which closely align with the Group’s unique expert capabilities and will further enhance the quality of the future order book. Balfour Beatty’s market-leading positions and ongoing success are a testament to the expertise, dedication, and hard work of our people.”
Operational Highlights
Balfour Beatty remains firmly on track to meet its full-year 2025 expectations, with the Group projecting further growth into 2026 and beyond. The company continues to anticipate an increase in underlying profit from operations (PFO) from its earnings-based businesses, with strong performances in UK Construction and Support Services set to offset a dip in US Construction profits.
Key operational and financial milestones from the first half include:
- Underlying profit growth: PFO from earnings-based businesses rose 7% to £108 million, compared with £101 million in the first half of 2024.
- Underlying earnings per share: EPS slipped slightly by 6% to 14.4 pence, down from 15.3 pence last year, reflecting timing effects and specific one-off impacts.
- Non-underlying items: A pre-tax credit of £37 million was recorded, primarily driven by the release of a £50 million US Civils provision following the settlement of the SH161 project.
- Order book expansion: The Group’s order book grew to £19.5 billion (up from £18.4 billion at FY2024 year-end), providing strong visibility on future revenue and supporting the growth outlook for 2026 and beyond.
- Additional pipeline: In addition to its formal order book, Balfour Beatty holds a 10-year, circa £20 billion pipeline of work, including major infrastructure projects such as the Sizewell C nuclear plant and extensive power transmission schemes.
Segment Performance
UK Construction
UK Construction delivered profitable underlying growth, achieving the Group’s long-standing target of a 3% margin—remarkably, one year ahead of schedule. This performance reflects disciplined bidding practices, a strategic focus on risk-managed contract forms, and strong execution in key infrastructure projects. The division’s ability to reach this profitability milestone early signals continued operational improvements and a solid foundation for further margin enhancement in the coming years.
US Construction
The US Construction business experienced a mixed performance. While the Buildings division reported robust revenue growth—thanks to its strategy of targeted geographic and sector expansion—this was offset by cost overruns on a single large Civils project. The project’s challenges impacted profitability in the first half, resulting in a divisional loss. However, Balfour Beatty has initiated recovery actions and is actively pursuing cost recoveries to mitigate the impact in future reporting periods. The underlying fundamentals of the US market remain strong, particularly in healthcare, education, and infrastructure renewal.
Support Services
Support Services was one of the standout performers in the first half, with PFO rising 35% to £46 million. The division’s growth was primarily driven by exceptional performance in the power transmission business, which benefited from high demand for grid resilience and renewable energy integration projects. As the UK accelerates its transition to a low-carbon economy, the Group’s capabilities in maintaining and upgrading essential infrastructure position it well for sustained growth in this segment.
Infrastructure Investments
Infrastructure Investments reported a £10 million loss, compared with a £7 million loss in the first half of 2024. While this result reflects normal timing in investment returns and disposals, Balfour Beatty maintains a healthy portfolio of assets across multiple sectors. The Group forecasts a £30–£40 million gain on disposals for the full year, though a small pre-disposals loss is expected in the second half.
The business also reached an agreement in principle with the US Department of Justice to extend the monitorship of its military housing operations to June 6, 2026. This extension underscores Balfour Beatty’s commitment to high standards of service delivery and compliance across its housing portfolio.
Balfour Beatty’s financial performance is underpinned by three strategic strengths: a disciplined approach to project selection, diversification across markets and sectors, and a focus on high-quality, lower-risk contract forms. The Group’s ability to maintain strong cash generation while expanding its order book positions it to continue returning value to shareholders through dividends and share buybacks.
Importantly, the recent announcements by the UK Government regarding long-term infrastructure investment align closely with Balfour Beatty’s areas of expertise. Projects in transportation, energy transition, and large-scale civil engineering provide a strong backdrop for the company’s future pipeline. With a combined order book and identified pipeline exceeding £39 billion, the Group has unparalleled visibility into medium- and long-term growth opportunities.
Leo Quinn emphasised that these results reflect not only the strength of the company’s markets but also the skill and commitment of its workforce:
“The quality of our people and the culture of operational excellence they uphold are central to Balfour Beatty’s success. We are delivering on our strategy, creating value for our shareholders, and contributing to the delivery of critical infrastructure in the UK, US, and beyond.”
