Balfour Beatty touts growth despite US weakness

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Dive Temporary:

• Balfour Beatty, the London-based infrastructure development large, is on observe to see year-over-year growth throughout key measures of its enterprise, in line with the builder’s year-end buying and selling replace.
• The corporate expects its order e-book, or backlog, to develop by 20% in 2025, up from final yr’s 18.4 billion kilos ($24.5 billion). Balfour Beatty stated its progress was pushed largely by its work within the U.Okay. development market, notably within the vitality sector, which drove 3.5 billion kilos of latest orders on the yr.
• As well as, Balfour Beatty expects its income to return in 5% forward of 2024’s 10 billion kilos, per the information launch. It expects its revenue from operations to be larger than 2024’s 252 million kilos, additionally attributable to U.Okay. work and partially offset by decrease earnings within the U.S.

Dive Perception:

Balfour Beatty stays on observe to realize its full-year earnings expectations. The corporate’s money era by way of its revenue and income have been pushed by the corporate’s work in choose markets, akin to U.S. buildings and U.Okay. vitality, per the discharge.

As well as, the corporate committed to an additional share buyback in 2026, an initiative that Balfour Beatty leveraged this yr as properly, in line with Philip Hoare, the corporate’s CEO.

“Our fast precedence is to complete 2025 strongly, whereas laying the groundwork for additional progress in 2026, the place I count on the Group to proceed on its journey of delivering PFO progress from its earnings-based companies,” Hoare stated within the information launch.

Regardless of the excellent news, the corporate famous weaker efficiency in its U.S. development enterprise weighed down its revenue. In 2024, that section of the enterprise noticed its revenue shrink 2% to three.6 billion kilos.

Additional weak spot in that arm of the enterprise continued this yr because the section recorded an 11 million pound loss within the first half of 2025, in line with Balfour Beatty’s half-year earnings name in August. 

Then-CEO Leo Quinn, who stepped down in September, informed buyers on the time that price overruns at a freeway venture, which stemmed from design points that led to remodel, dragged on its U.S. Civils enterprise.

Total, Balfour Beatty’s full-year outlook for its U.S. Civils enterprise, and U.S. Development broadly, stays largely unchanged from the primary half of the yr, per the discharge. Regardless of the weak spot, Balfour Beatty’s U.S. order e-book is anticipated to develop by over 10% in greenback phrases in 2025, up from 2024’s $8.9 billion. That included $750 million of correctional facility work within the Southeast and $400 million for knowledge facilities in Virginia and Oregon.