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Balfour Beatty expects its 2025 order book to grow by about 20%, supported by more than GBP 3.5 billion in new power-generation contracts won this year. The company said it will deliver full-year results ahead of last year's GBP 252 million operating profit, helped by solid performance in UK construction and support services. Demand for power transmission and distribution projects, driven by national low-carbon goals and higher public infrastructure spending, has strengthened margins. Shares touched a record 726.5 pence following supportive government measures. New CEO Philip Hoare said the firm aims to expand earnings-based contributions through 2026, with additional share buybacks planned for next year.
Balfour Beatty announced that its 2025 order book is expected to expand by around 20%, driven largely by more than GBP 3.5 billion in fresh power generation orders secured this year. The construction and infrastructure group said it is set to deliver full-year results ahead of last year?s GBP 252 million operating profit, helped by steady performance across its UK construction and support-services operations. Advertisement
The company attributed its strengthened outlook to rising demand in the UK?s power transmission and distribution sector, where ongoing national upgrades supporting low-carbon energy goals and increased public infrastructure allocations have created a robust pipeline. These trends have also supported improved margins in its support-services portfolio, despite weaker returns from its U.S. construction business.
Investor sentiment remained positive, with the firm?s share price touching a record 726.5 pence earlier in the day, extending gains seen since the Chancellor announced measures to accelerate nuclear regulation and enhance public infrastructure expenditure on 26 November. Analysts have suggested that such commitments are likely to favour established contractors with strong capabilities in large-scale national projects.
New Chief Executive Philip Hoare, who stepped into the role in September, said the company intended to continue expanding profit contributions from its earnings-based businesses through 2026. He also confirmed that further share buybacks are scheduled for next year.
Balfour Beatty?s upgraded outlook reflects the growing importance of power-sector infrastructure and the government?s renewed focus on long-term energy and public works investment. With its domestic operations performing steadily and a substantial pipeline of new work, the company appears well positioned to sustain operating profit growth into next year.
Source - Reuters
5th Jun, 2025
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