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Balfour Beatty reports strong start to 2026 with major infrastructure and energy contract momentum


Balfour Beatty has reported a strong trading performance for the opening months of 2026, with the Group maintaining expectations for high single-digit profit growth across its earnings-based businesses this year.


In a trading update released ahead of its Annual General Meeting, the contractor said demand across its core markets remains strong, supported by a disciplined bidding strategy focused on securing high-quality, lower-risk work.


The Group’s order book remained stable through Q1, with momentum continuing across key sectors including UK energy, transport, defence and US buildings.


In the UK energy market, Balfour Beatty said its power transmission business continues to perform strongly, delivering major infrastructure schemes for:


  • National Grid

  • SSEN Transmission

  • ScottishPower


Fifteen transmission schemes are currently in design stages, with most expected to move into construction within the next 18 months.


The Group also secured several major US contract awards during the period, including:


  • A c$270m military housing redevelopment project at Fort Carson, Colorado

  • A $150m data centre scheme in the US Northwest

  • A $140m high school project in California


Within UK transport, Balfour Beatty secured:


  • A £138m dual carriageway and bridge project at North Hykeham in Lincolnshire

  • A £315m Warwickshire Highways Maintenance contract over seven years, with potential total value rising to £900m through extension options


The contractor also confirmed it is actively pursuing opportunities within the growing UK defence market, including major Defence Nuclear Enterprise frameworks aligned to its existing capabilities.


Internationally, Gammon — Balfour Beatty’s Asian joint venture — also recorded a positive start to the year, securing major projects including a new railway station in Hong Kong’s Northern Metropolis development area and a residential scheme on Lantau Island.


Financially, the Group reported an average monthly closing net cash balance of £1.554bn during the first quarter of 2026, remaining ahead of previous year levels.


Balfour Beatty said its £200m share buyback programme also remains on track for completion by the end of the year.


 
 
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