Balfour Beatty (BBY) H1 2024 earnings summary

Executive summary

• Earnings-based businesses delivered 6% profit growth in H1 2024, with strong UK Construction and Support Services performance, and continued shareholder returns totaling £160m.

• Revenue rose 3% year-over-year to £4.68bn, driven by Support Services and Gammon; order book increased to £16.6bn, providing strong short- and medium-term visibility.

• Positioned to benefit from rising infrastructure demand in energy, transportation, and defense, with government priorities aligning with core capabilities.

• Strategic investments in power transmission, nuclear, and US buildings underpin future growth.

• Board expects full-year earnings growth, with acceleration in 2025, supported by a robust order book and strong cash position.

Financial highlights

• Group revenue up 3% to £4,677m; underlying PFO from earnings-based businesses up 6% to £101m; Group underlying PFO down 4% to £77m.

• Underlying EPS up 18% to 15.3p; interim dividend up 9% to 3.8p per share.

• Average net cash increased to £735m; closing net cash £785m.

• Directors’ valuation of Investments portfolio up 5% to £1.3bn.

• Shareholder returns (dividends + buybacks) to total £160m in 2024, including £100m in share buybacks.

Outlook and guidance

• On track for full-year earnings growth and accelerating growth in 2025, with PFO growth expected from earnings-based businesses.

• Gain on investment disposals forecast at £20m–£30m in H2; net finance income expected around £30m.

• Average net cash for 2024 expected to remain near £700m; capex to return to pre-2023 levels (~£35m).