Balfour Beatty (BBY) Trading Update summary

Financial performance and outlook

• Order book projected to grow over 5% in 2024, surpassing £16.5 billion, driven by UK energy and US buildings markets.

• 2024 revenue expected to be about 2% higher than 2023, led by Support Services and Gammon.

• Underlying profit from operations anticipated to exceed 2023, with Support Services margins at the top of the 6-8% range.

• Profit after tax for 2024 forecasted to be ahead of 2023 and slightly above market expectations, mainly due to Support Services growth.

• Average monthly net cash for 2024 expected around £750 million, above prior guidance.

Operational highlights

• UK Construction Services maintains strong performance, with major projects like HS2 and Hinkley Point C progressing well.

• US order book set to grow over 10% in 2024, with significant contract wins in hospitality, federal/state, commercial, and education sectors.

• US Civils business secured a $746 million contract for Interstate 35 in Texas, aligning with selective project strategy.

• Gammon in Asia saw increased annual volumes, with new orders in data centres and infrastructure in Hong Kong and Singapore.

• Support Services growth driven by higher volumes in power and road maintenance, with new power contracts worth £600 million.

Capital allocation and shareholder returns

• £160 million to be returned to shareholders in 2024 via buybacks and dividends, bringing total distributions since 2021 to over £750 million.

• Fifth consecutive year of share buybacks confirmed for 2025, with details to be announced at full year results.

• Capital allocation framework remains unchanged, balancing investment and strong capital position.

• Infrastructure Investments disposals expected to be slightly above guidance, with new investments around £30 million in 2024.