UK Construction and Law

Guidance raised as power transmission and American buildings carry the half, while United Kingdom construction margin slips

By Staff Writer  |  13 August 2026

Underlying profit from operations rose to 119 million pounds from 77 million pounds, the order book reached 22.9 billion pounds, and the growth came from outside United Kingdom construction.

Balfour Beatty reported revenue of 5,563 million pounds for the half year ended 26 June 2026, against 5,150 million pounds a year earlier. Underlying profit from operations rose to 119 million pounds from 77 million pounds. Underlying profit from the earnings-based businesses, which is the measure the group guides on, rose to 153 million pounds from 108 million pounds. Underlying earnings per share rose to 21.7 pence from 14.4 pence.

Full year guidance was raised. The group now expects low double digit percentage growth in profit from the earnings-based businesses, having previously guided to high single digit growth. Guidance for net finance income moved to a range of 35 to 40 million pounds, from 28 to 32 million pounds. Average net cash guidance rose by 200 million pounds to a range of 1.5 to 1.7 billion pounds.

Balfour Beatty enters the second half with real momentum. Our strong first-half performance reflects the quality of our business, the discipline of our execution and, above all, the exceptional contribution of our people in delivering for our customers.

Philip Hoare, Group Chief Executive

Read the segments, not the total

The headline improvement did not come from United Kingdom construction. That division reported revenue of 1,569 million pounds against 1,563 million pounds, and profit from operations of 54 million pounds against 56 million pounds. Its margin was 3.4 per cent, down from 3.6 per cent. The group notes that the prior year figure included a 10 million pound one-off credit, and that excluding it the division moved forward.

Two of the three sources of growth this half sit outside the United Kingdom construction business.

American construction turned a loss into a profit, reporting 22 million pounds against a loss of 11 million pounds, on revenue of 2,475 million pounds against 2,087 million pounds. The group attributes that to growth in its buildings work and reduced losses in civils. Support Services, the division that carries power transmission, produced 66 million pounds against 46 million pounds on revenue of 727 million pounds, lifting its margin from 6.9 per cent to 9.1 per cent. The Hong Kong joint venture went the other way, at 11 million pounds against 17 million pounds on lower revenue.

Infrastructure Investments recorded a loss of 9 million pounds against 10 million pounds, which the group attributes to monitor and legal costs it says have now ceased. The directors' valuation of the investments portfolio was held at 1.1 billion pounds.

The order book, and what it says about risk appetite

The order book stood at 22.9 billion pounds, against 22.7 billion pounds at the December year end and 19.5 billion pounds at the same point last year. The year on year movement is the number worth holding: a 3.4 billion pound increase over twelve months, against a 200 million pound increase over the last six months.

Average net cash rose to 1,616 million pounds from 1,212 million pounds. Net cash on a recourse basis was 1,708 million pounds. The half year dividend rose 12 per cent to 4.7 pence, and 102 million pounds of share buyback was completed in the period.

For the supply chain, the useful reading is where the money is being spent rather than what the group earns on it. A Support Services margin above 9 per cent on transmission work, set against a United Kingdom construction margin of 3.4 per cent, tells a subcontractor which side of the business can absorb a problem and which cannot. On a 3.4 per cent margin, one contested variation on a large job is the division's profit for a month.

The group employs around 26,000 people across the United Kingdom, the United States and Asia. Its stated programmes include the nuclear power station under construction in Somerset, a theatre in Hong Kong and a mixed use scheme in Dallas. The second half is where the raised guidance has to be proved.