Strong growth in earnings and order book – £200 million 2026 share buyback Further momentum into 2026 and 2027 with accelerating demand in chosen markets
Philip Hoare, Balfour Beatty Group Chief Executive, said: “Since joining in September, I’ve been truly impressed by the depth of talent across Balfour Beatty and the inherent strength of the Group. Our capabilities, the quality of our order book and our disciplined approach to risk provide a powerful foundation for the future.
“In 2025, the Group delivered on expectations with further earnings growth, fuelled by strong operational performance and momentum in chosen growth markets, where our end-to-end expertise, proven delivery and long-standing customer relationships continue to differentiate Balfour Beatty.
“As the industry faces unprecedented demand and a widening skills gap, we’ll continue to invest in our people and in technology, driving further gains in productivity and operational excellence. Supported by a robust balance sheet and a resilient diverse business model, we are incredibly well positioned to respond to market dynamics, accelerate profitable growth, improve margins and drive value creation for our customers, communities, and shareholders.”
Full year expectations delivered with profitable growth in earnings-based businesses for the fifth consecutive year
- 8% revenue growth driven by UK power transmission and US buildings demand
- Underlying profit from operations (PFO) from earnings-based businesses up 16% to £293 million (2024: £252 million)
- Underlying EPS of 47.6p up 9% (2024: 43.6p)
Progress made across diverse portfolio
- UK Construction: Delivered profitable underlying growth to surpass 3% margin target one year ahead of expectations
- US Construction: Strong Buildings performance offset by cost overruns at one Civils project; recoveries being pursued
- Support Services: PFO up 31% to £122 million and 8.5% PFO margin achieved, driven by power transmission growth
- Infrastructure Investments: £5 million PFO (2024: £35 million). Monitorship anticipated to complete in June 2026
Balance sheet and cash flow strength continue to support sustainable and attractive shareholder returns
- Strong cash generation: Average net cash3 increased to £1,212 million (2024: £766 million)
- £1.1 billion Directors’ valuation of the Investments portfolio (2024: £1.3 bn) following £120 million of asset disposals
- £200 million share buyback and full year dividend increased by 12% to 14 pence per share (2024: 12.5p)
- Pension triennial valuation agreed, allowing future Defined Benefit surplus to part fund Defined Contribution obligation
Strong momentum in chosen markets and further growth anticipated
- Record £22.7 billion order book up 23%, including over £3.5 billion of new UK power generation projects
- Significant further pipeline including UK power transmission schemes, UK major defence contracts and US buildings
- $444 million refinancing of Fort Carson US army base enables major redevelopment including c.400 new homes
- Further profitable growth forecast in 2026 and 2027
| (£ million unless otherwise specified) | 2025 | 2024 | ||||
| Underlying2 | Total | Underlying2 | Total | |||
| Revenue1 | 10,767 | 10,767 | 10,015 | 10,015 | ||
| Profit from earnings-based businesses | 293# | 327 | 252# | 180 | ||
| Profit from operations | 252# | 284 | 248# | 173 | ||
| Pre-tax profit | 291 | 323 | 289 | 214 | ||
| Profit for the year | 239 | 264 | 227 | 178 | ||
| Basic earnings per share | 47.6p | 52.6p | 43.6p | 34.2p | ||
| Dividends per share | 14.0p | 12.5p | ||||
| 2025 | 2024 | |||||
| Order book1 | £22.7bn | £18.4bn | ||||
| Directors’ valuation of Investments portfolio | £1.1bn | £1.3bn | ||||
| Net cash – recourse3 | 1,446 | 943 | ||||
| Average net cash – recourse3 | 1,212 | 766 | ||||
| Segment analysis | 2025 | 2024 | |||||
| Revenue1 | PFO2,# | PFO
margin2 |
Revenue1 | PFO2,# | PFO
margin2 |
||
| £m | £m | % | £m | £m | % | ||
| UK Construction | 3,112 | 110 | 3.5% | 3,011 | 81 | 2.7% | |
| US Construction | 4,509 | 25 | 0.6% | 3,638 | 40 | 1.1% | |
| Gammon | 1,090 | 36 | 3.3% | 1,550 | 38 | 2.5% | |
| Construction Services | 8,711 | 171 | 2.0% | 8,199 | 159 | 1.9% | |
| Support Services | 1,427 | 122 | 8.5% | 1,210 | 93 | 7.7% | |
| Earnings-based businesses | 10,138 | 293 | 2.9% | 9,409 | 252 | 2.7% | |
| Infrastructure Investments | 629 | 5 | 606 | 35 | |||
| Corporate activities | – | (46) | – | (39) | |||
| Total | 10,767 | 252 | 10,015 | 248 | |||
Notes:
1 Including share of joint ventures and associates
2 Before non-underlying items (Note 9)
3 Excluding non-recourse net borrowings, which comprise cash and debt ringfenced within certain infrastructure investments project companies, and lease liabilities
# Underlying profit from operations, or PFO, as defined in the Measuring our financial performance section
A reconciliation of the Group’s performance measures to its statutory results is provided in the Measuring our financial performance section
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