Balfour Beatty raises 2026 outlook after strong first-half performance

Balfour Beatty has raised its full-year guidance after reporting higher revenue, profit and cash generation during the first half of 2026, supported by growth in US buildings and UK power transmission.

Group revenue increased to £5.56bn during the six months, up from £5.15bn in the same period last year.

Underlying profit from the group’s earnings-based businesses rose to £153m, compared with £108m in the first half of 2025, while total underlying profit from operations increased to £119m from £77m.

Balfour Beatty’s UK Construction business generated revenue of £1.57bn and underlying operating profit of £54m, producing a 3.4% margin.

US Construction recorded a significant improvement, with underlying operating profit of £22m compared with an £11m loss last year, supported by growth in the buildings market and reduced losses in its civils operations.

Support Services also delivered strong growth, with profit rising to £66m from £46m, driven primarily by increased activity in power transmission.

The group’s order book stood at £22.9bn at the half-year point, compared with £22.7bn at the end of 2025 and £19.5bn a year earlier.

Average net cash increased to £1.62bn, prompting Balfour Beatty to raise its full-year guidance to between £1.5bn and £1.7bn.

Following the first-half performance, the contractor now expects low double-digit percentage growth in profit from its earnings-based businesses during 2026, slightly ahead of its previous guidance.

The company has also increased its half-year dividend by 12% to 4.7p per share, while completing £102m of share buybacks during the period.