Balfour Beatty (BAFBF) posted a strong first-half performance for 2026, reporting higher revenue, profit, and cash generation across its core business divisions.
Group Chief Executive Philip Hoare said the company delivered “profitable growth and strong cash performance” during the period, pointing to broad-based operational momentum.
Growth was driven primarily by the U.S. buildings segment and U.K. power transmission, with U.S. construction also delivering a notable improvement compared to the prior year.
Revenue rose 8% to £5.6 billion, or 10% when stripping out the effect of foreign-exchange movements, according to Chief Financial Officer Myles Westcott.
Profit from operations margin in Balfour Beatty’s earnings-based businesses climbed to 2.9%, up from 2.2% in the comparable first-half period of 2025.
Westcott noted that U.K. Construction delivered a 3.4% margin, representing a 50-basis-point improvement after excluding a one-off insurance recovery recorded in the prior year.
U.S. Construction returned to profitability, generating £22 million in profit from operations after recording a loss in the first half of 2025, while revenue in U.S. buildings climbed 19%.
Losses in the civil engineering business were also reduced as a Texas highway project moved toward final closeout, further strengthening the overall U.S. construction picture.
Net cash at the end of the half stood at £1.7 billion, with average net cash of £1.6 billion and operating cash flow totaling £151 million for the period.
Westcott attributed a rise in working capital to new U.S. project starts and growing power activity, with the business generally receiving payments in advance on contracts.
Balfour Beatty declared an interim dividend of 4.7 pence per share, representing a 12% increase from the prior year, reflecting confidence in the company’s financial position.
The company said it remained on track to complete its £200 million share buyback by year-end, with total shareholder returns expected to reach £267 million during 2026.
Underlying profit for the first half climbed 42% to £153 million, supported by stronger cash generation and a £22.9 billion order book that underpins future revenue visibility.
Balfour Beatty slightly upgraded its full-year 2026 guidance, now expecting low double-digit growth in profit from operations across its earnings-based businesses.
Net finance income guidance was raised to a range of £35 million to £40 million, up from a prior range of £28 million to £32 million, reflecting improved cash performance.
Average net cash guidance for 2026 was also lifted to a range of £1.5 billion to £1.7 billion, compared to the previous guidance of £1.3 billion to £1.5 billion.
Hoare highlighted that the U.S. monitorship concluded on June 6, describing it as an important milestone that allows the company to focus on service delivery for U.S. military housing customers.
Strategically, Balfour Beatty is advancing three pillars it has branded Evolve, Energize, and Explore, targeting margin improvement, selective growth markets, and technology investment.
The company committed £10 million to Pi Labs as part of its technology investment drive, while management emphasized that organic growth remains the primary strategic priority.
Bolt-on acquisitions are being considered only where they add capability or open adjacent markets, keeping the company’s capital allocation disciplined and focused on long-term shareholder value.
