Balfour Beatty (BBY) H2 2025 earnings summary

Executive summary

• Delivered strong 2025 results, meeting or exceeding all key financial targets, with profitable growth, increased cash, and a record £23 billion order book, reflecting momentum across all business segments and growth markets.

• Achieved 9% EPS growth and continued attractive, sustainable shareholder returns, including a £200 million share buyback.

• Strategic focus on margin improvement, operational excellence, and investment in people, with expansion in US Construction and leveraging UK energy and defence markets.

• Leadership transition underway, underpinned by a decade of financial discipline and governance improvements.

Financial highlights

• Group revenue rose 8% to £10.8 billion, driven by US buildings and UK power transmission.

• Profit for the period rose 5% to £239 million; EPS up 9% to 47.6p; dividends per share increased 12% to 14.0p.

• Group PFO growth limited to 2% due to higher military housing costs offsetting operational gains.

• Order book surged 23% to £22.7 billion; average net cash up 58% to £1,212 million.

• £200 million share buyback announced for 2026.

Outlook and guidance

• High single-digit percentage growth forecast for earnings-based business PFO in 2026, with margin growth in UK and US Construction and Support Services maintaining PFO margin above 8%.

• Infrastructure Investments to post a small underlying loss in 2026, returning to normal profits in 2027 post-monitorship; disposal gains forecast at £5–15 million.

• Average net cash expected between £1.3–1.5 billion in 2026.