Balfour Beatty (BBY.L) shares surged to their highest level on record Wednesday after the construction giant upgraded both its profit and cash guidance for the full year.
The FTSE 250 firm, which carries a market capitalisation of more than £4 billion, reported a strong first-half performance driven by broad operational momentum across its key divisions.
Total revenues climbed 8% to £5.56 billion for the half-year to June 26, compared with the same period a year earlier, marking a solid acceleration in growth.
The company attributed the revenue increase to rising demand in its US buildings and UK power transmission divisions, two areas that have emerged as key growth engines.
Balfour Beatty’s US construction arm also returned to profit during the period, supported in part by a growing pipeline of data centre projects.
Following the strong results, the company upgraded its earnings guidance to low double-digit growth, having previously pointed to a high single-digit rise.
The group also raised its average net cash forecast to between £1.5 billion and £1.7 billion for the year, up from a prior guidance range of £1.3 billion to £1.5 billion.
Group chief executive Philip Hoare expressed confidence in the company’s trajectory heading into the second half of the year, citing the strength of its order book and workforce.
Hoare said: “Supported by a £23 billion order book, attractive growth markets and strong operational momentum, Balfour Beatty is well positioned to deliver these programmes safely, efficiently and at scale.”
He added: “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.”
Market analyst Adam Vettese of Etoro highlighted the appeal of the company’s low-risk profile in the current investment climate, noting its strong visibility of future earnings.
Vettese said: “This is exactly the kind of de-risked, high visibility business the market wants right now.”
He also pointed to the potential for further upside, noting that “with major UK energy and defence programmes still to flow into the order book, and a healthy pipeline of US work, Balfour is well placed to keep compounding.”
Vettese added that “the progressive dividend and ongoing buybacks only sweeten the deal,” underlining the stock’s broader appeal to income-focused investors.
The record share price milestone reflects a broader market re-rating of Balfour Beatty as infrastructure spending in both the UK and US continues to accelerate into 2026.
