Balfour Beatty (BBY) H2 2025 earnings summary

Executive summary

• Delivered strong 2025 results, meeting or exceeding all key financial targets, with a record £23 billion order book and momentum into 2026 and beyond.

• 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.

• Significant progress in U.S. and U.K. markets, with disciplined capital allocation and robust governance underpinning performance.

Financial highlights

• Revenue increased 8% to £10.8 billion, driven by U.S. buildings and U.K. power transmission.

• Profit from operations up 2% to £252 million; profit for the year up 5% to £239 million.

• Basic EPS grew 9% to 47.6p; dividends per share increased 12% to 14.0p.

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

• GBP 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 PFO loss prior to disposals, with gains on disposals projected at £5–15 million.

• Average net cash expected in the range of £1.3–1.5 billion for 2026.

• Continued high single-digit growth anticipated, with strong momentum beyond 2026.