Balfour Beatty (LSE:BBY) has upgraded its full-year 2026 outlook after delivering a strong first half marked by significantly higher revenue and profit growth.
Revenue reached £5.56 billion in the first six months of 2026, while underlying profit from earnings-based businesses climbed 42% to £153 million.
Underlying earnings per share rose to 21.7 pence, reflecting the improved operational performance across the group’s core divisions during the period.
Average net cash increased to £1.62 billion, strengthening Balfour Beatty’s financial capacity as it continues to pursue major infrastructure opportunities across its target markets.
UK Construction maintained healthy margins during the half, while US Construction returned to profit supported by strong demand within the buildings market.
Support Services also delivered double-digit margin growth, with power transmission providing an important contribution to the division’s improved result.
Following the stronger first-half performance, Balfour Beatty increased its expectations for full-year profit growth, net finance income and average net cash across the business.
The group also raised its interim dividend and extended its share buyback programme, continuing a pattern of returning capital to shareholders alongside investment in future growth.
Visibility across the business is supported by an order book of £22.9 billion, providing a substantial pipeline of contracted work across Balfour Beatty’s major markets.
The company sees particularly attractive opportunities across UK energy, defence and transport infrastructure as well as the US buildings sector, which has shown resilient demand.
Balfour Beatty is accelerating its “Evolve, Energise and Explore” strategy as it seeks to increase efficiency, scale operations and generate sustainable profitable growth over the longer term.
The group is maintaining a selective approach to bidding, focusing on projects where it believes returns appropriately reflect contractual and operational risks before committing resources.
Balfour Beatty’s Infrastructure Investments division benefited from the conclusion of the monitorship associated with its US military housing operations, which reduced related costs during the period.
The segment nevertheless recorded a small loss before disposals, leaving room for further improvement as those additional expenses fall away in subsequent periods.
The group also holds a long-term infrastructure investment portfolio valued at approximately £1.1 billion, adding another substantial component to its broader asset base.
Higher average net cash and continued revenue growth provide additional financial flexibility for investment and shareholder distributions as the company pursues its strategic priorities.
Operating margins remain relatively thin and under pressure, while leverage is higher than it was in 2022, presenting areas investors will continue to monitor closely.
The combination of higher guidance, a substantial order book and stronger cash generation provides greater visibility over Balfour Beatty’s earnings trajectory heading into the second half of 2026.
Balfour Beatty is an international infrastructure group operating across construction services, support services and infrastructure investments in the UK, US and Asia.
The company’s £22.9 billion order book and £1.1 billion infrastructure investment portfolio provide a substantial base for future activity as it targets further profitable growth across its core markets.
