Balfour Beatty, the UK’s largest construction and infrastructure company, delivered a standout performance in 2025, marking its strongest set of results in years amid booming demand for energy, transport, and defence projects.
The London-listed group reported full-year revenue of £10.767 billion an 8% increase from £10.015 billion in 2024.
Underlying profit from operations in its core earnings-based businesses jumped 16% to £293 million, while underlying earnings per share rose 9% to 47.6 pence.
Profit for the year climbed to £239 million, up from £227 million, with the company highlighting five consecutive years of profitable growth in its earnings-based operations.
The results were powered by robust performances across key segments. UK Construction saw revenues rise 3% to £3.112 billion, with profit from operations hitting £110 million and achieving a 3.5% margin, a year ahead of its 3% target, bolstered by strong project delivery and an £11 million insurance recovery.
Support Services, driven by UK power transmission growth, posted an 18% revenue increase to £1.427 billion and a 31% jump in profit from operations to £122 million, delivering an 8.5% margin that exceeded its 6-8% target range.
A standout order book
The standout metric was the order book, which swelled to a record £22.7 billion, up 23% from £18.4 billion, providing exceptional visibility.
This surge was fuelled by major wins in UK power generation, including over £3.5 billion in new projects such as Sizewell C and Net Zero Teesside, alongside momentum in defence, transport, and US buildings.
“In 2025, the Group delivered on expectations with further earnings growth, fuelled by strong operational performance and momentum in chosen growth markets,” said Philip Hoare, Balfour Beatty’s Group Chief Executive.
“Supported by a robust balance sheet and a resilient, diverse business model, we are incredibly well-positioned to respond to market dynamics, accelerate profitable growth, improve margins and drive value creation for our customers, communities, and shareholders.”
The company is also returning cash to shareholders aggressively. It proposed a 12% dividend increase to 14.0 pence per share and announced a £200 million share buyback program for 2026, following strong cash generation with operating cash flow soaring to £656 million.
Positive signs for construction
Looking ahead, Balfour Beatty forecasts further profitable growth in 2026 and 2027. It anticipates a high single-digit percentage rise in profit from operations from earnings-based businesses next year, with margin improvements expected across UK Construction (excluding one-off recoveries), US Construction (as legacy issues resolve mid-2026), and Support Services (sustained above 8%).
The Infrastructure Investments segment is expected to show a small pre-disposals loss in 2026, offset by £5-15 million in gains from asset sales.
With a diversified portfolio, record backlog, and strong balance sheet, including £1.446 billion in recourse net cash, the company appears primed for sustained momentum in a sector critical to economic growth.
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