Balfour Beatty Plc (LON:BBY) has announced its half year results for the year ended 26 June 2026
Philip Hoare, Balfour Beatty Group Chief Executive, said: “Balfour Beatty enters the second half with real momentum. Our strong first-half performance reflects the quality of our business, the discipline of our execution and, above all, the exceptional contribution of our people in delivering for our customers.
“We have continued to secure high-quality work, drive profitability and generate strong cash flow. By bringing together the best of our people, expertise and capabilities, we are supporting customers as they invest in the infrastructure which economies need to grow, now and into the future. Supported by a £23 billion order book, attractive growth markets and strong operational momentum, Balfour Beatty is well positioned to deliver these programmes safely, efficiently and at scale.
“Together, these strengths give us confidence in our outlook and in our ability to continue generating profitable growth and attractive returns for our shareholders.”
Strong first half growth driven by the earnings-based businesses
· Higher revenue due to rising demand in US Buildings and UK power transmission
· Underlying profit from operations (PFO) from earnings-based businesses increased to £153 million (2025: £108 million)
· Underlying EPS of 21.7 pence per share (2025: 14.4 pence)
Underlying profit from operations increased to £119 million
· UK Construction: 3.4% PFO margin (2025 3.6%) representing further progress excluding £10 million 2025 one-off credit
· US Construction: £22 million PFO2 (2025: £11 million loss) following strong Buildings growth and reduced Civils losses
· Support Services: £66 million PFO2 (2025: £46 million) driven by strong growth in power transmission
· Infrastructure Investments: £9 million loss2 (2025: £10 million) driven by monitor and legal costs, which have now ceased
Balance sheet and cash flow strength support sustainable and attractive shareholder returns
· Average net cash3 increased to £1,616 million (FY 2025: £1,212 million)
· Directors’ valuation of the Investments portfolio maintained at £1.1 billion
· Half year dividend increased by 12% to 4.7 pence per share (2025: 4.2p); £102 million of share buyback completed in half
Increased full year guidance following strong first half
· Low double digit percentage PFO2 growth expected from earnings-based businesses, slightly ahead of prior guidance
· Positive outlook underpinned by £22.9 billion order book (FY2025: £22.7 billion) and strength of growth markets
· Average net cash guidance increased by £200 million to a range of £1.5 – £1.7 billion
· Net finance income now expected in range of £35 – £40 million, aligned to the anticipated increased cash performance
· Implementation of “Evolve, Energise and Explore” profitable growth plan accelerating across the Group
| (£ million unless otherwise specified) | HY 2026 | HY 2025 | ||||
| Underlying2 | Total | Underlying2 | Total | |||
| Revenue1 | 5,563 | 5,563 | 5,150 | 5,150 | ||
| Profit from earnings-based businesses | 153 | 144 | 108 | 146 | ||
| Profit from operations | 119 | 109 | 77 | 114 | ||
| Pre-tax profit | 139 | 129 | 95 | 132 | ||
| Profit for the period | 105 | 97 | 73 | 101 | ||
| Basic earnings per share | 21.7p | 20.0p | 14.4p | 19.8p | ||
| Dividends per share | 4.7p | 4.2p | ||||
| HY 2026 | FY 2025 | HY 2025 | ||||
| Order book1 | £22.9bn | £22.7bn | £19.5bn | |||
| Directors’ valuation of Investments portfolio | £1.1bn | £1.1bn | £1.2bn | |||
| Net cash – recourse3 | 1,708 | 1,446 | 1,237 | |||
| Average net cash – recourse3 | 1,616 | 1,212 | 1,102 | |||
| Segment analysis | HY 2026 | HY 2025 | |||||
| Revenue1 | PFO2,# | PFOmargin2 | Revenue1 | PFO2,# | PFOmargin2 | ||
| £m | £m | % | £m | £m | % | ||
| UK Construction | 1,569 | 54 | 3.4% | 1,563 | 56 | 3.6% | |
| US Construction | 2,475 | 22 | 0.9% | 2,087 | (11) | (0.5)% | |
| Gammon | 495 | 11 | 2.2% | 547 | 17 | 3.1% | |
| Construction Services | 4,539 | 87 | 1.9% | 4,197 | 62 | 1.5% | |
| Support Services | 727 | 66 | 9.1% | 662 | 46 | 6.9% | |
| Earnings-based businesses | 5,266 | 153 | 2.9% | 4,859 | 108 | 2.2% | |
| Infrastructure Investments | 297 | (9) | 291 | (10) | |||
| Corporate activities | (25) | (21) | |||||
| Total | 5,563 | 119 | 5,150 | 77 | |||
2026 outlook summary
Following a strong first half performance, the Group has increased 2026 guidance for earnings-based business PFO2, net finance income and average net cash. Latest guidance is outlined below.
| Updated guidance | Previous guidance | |
| Earnings-based business PFO2 | Low double digit percentage growth, slightly ahead of prior guidance | High single-digit percentage growth |
| Infrastructure Investments | – Small PFO2 loss prior to disposals- Gain on disposals: range of £5 – £15 million | – Small PFO2 loss prior to disposals- Gain on disposals: range of £5 – £15 million |
| Net finance income | Range of £35 – £40 million | Range of £28 – £32 million |
| Effective tax rate2 | Close to statutory rates | Close to statutory rates |
| Average net cash3 | Range of £1.5 – £1.7 billion | Range of £1.3 – £1.5 billion |
Notes:
1 Including share of joint ventures and associates
2 Before non-underlying items (Note 8)
3 Excluding non-recourse net borrowings, which comprise cash and debt ringfenced within certain infrastructure investments project companies
# Underlying profit from operations, or PFO, as defined in the Measuring our financial performance section
A reconciliation of the Group’s performance measures to its statutory results is provided in the Measuring our financial performance section
