Balfour Beatty has raised its full-year guidance after stronger first-half trading, with rising demand in UK power transmission and US building projects lifting revenue, profit, and cash expectations.
The infrastructure group reported revenue of £5.56bn for the half year, up from £5.15bn a year earlier. Underlying profit from its earnings-based businesses increased to £153m from £108m, while total underlying profit from operations rose to £119m from £77m.
Balfour Beatty now expects low double-digit percentage growth in profit from operations across its earnings-based businesses, slightly ahead of its previous guidance. Average net cash guidance has also been raised by £200m to between £1.5bn and £1.7bn.
The order book stood at £22.9bn at the half year, compared with £22.7bn at the end of 2025. The group said higher revenue was being driven particularly by US Buildings and UK power transmission.
Group chief executive Philip Hoare said: “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.”
US Construction produced £22m of underlying operating profit after an £11m loss in the corresponding period last year, reflecting stronger Buildings activity and lower losses in Civils. Support Services increased operating profit from £46m to £66m, with power transmission the principal source of growth.
UK Construction generated an underlying margin of 3.4%, compared with 3.6% a year earlier. The prior-year comparison included a £10m one-off credit, leaving the underlying direction stronger than the headline margin movement suggests.
The performance reflects the concentration of infrastructure investment in several strategic markets rather than uniform growth across construction. Electricity networks are drawing capital as Britain adds renewable generation, reinforces transmission capacity, and prepares the system for higher long-term electricity demand.
Those programmes require substantial work across engineering, substations, transmission lines, civil works, specialist equipment, and project management. They are also long-duration projects in which profitability depends heavily on contract selection, cost control, labour availability, procurement, and execution.
A large order book therefore provides revenue visibility without eliminating delivery risk. Construction groups can carry projects for several years, during which material prices, programme changes, planning delays, subcontractor performance, and workforce constraints can alter expected margins.
Balfour Beatty’s stronger cash position provides additional resilience. Average net cash increased to £1.62bn from £1.21bn for the 2025 financial-year comparison, while the directors’ valuation of the Investments portfolio remained £1.1bn.
Shareholder distributions also increased. The half-year dividend rose 12% to 4.7p per share, and the company completed £102m of its share buyback during the period. Net finance income is now expected to reach between £35m and £40m.
The group’s US business provides a second important source of demand. Large building programmes remain an attractive market, although project economics differ from regulated or utility-led infrastructure because commercial property and construction activity can respond more quickly to financing conditions and customer investment decisions.
Having exposure to both energy infrastructure and US building activity gives Balfour Beatty a broader pipeline, but it also makes operational discipline central to the upgraded outlook. The company must convert committed work into higher margins while maintaining cash generation across a £22.9bn portfolio.
Management’s revised guidance indicates confidence that the stronger first half will carry into the remainder of 2026. The next test will be whether the improvement in US Construction and Support Services can be sustained while major UK power programmes continue to expand.
Infrastructure demand remains supportive, particularly where governments and utilities have committed long-term capital. Balfour Beatty’s upgraded expectations place the emphasis on delivery: the pipeline is established, and the financial outcome now depends on converting that workload into profitable growth.
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