The UK construction division of Balfour Beatty has reached its target profitability for the first time. In the half-year ending 27 June 2025, the UK’s underlying operating profit was £56 million (3.6%), compared with £34 million a year earlier. This exceeds the operating margin target of over 3% and occurred a year ahead of plan.
The support services business also showed growth: underlying operating profit increased by 35%.
However, the group’s overall profit was constrained: underlying operating profit was £108 million, only slightly above £101 million a year earlier. This was due to construction losses in the US, related to delays on a Texas highway project. The company stated that measures are underway to recover these losses.
Statutory profit before tax for the group was £132 million (£112 million a year earlier), and revenue increased to £5.15 billion (£4.68 billion a year earlier).
CEO Leo Quinn said the company is generating strong cash flows from a growing order book with improved margins and lower-risk contracts. He added that the UK government has confirmed the presence of large infrastructure projects that match the company’s expertise and enhance the quality of the future portfolio.
At the end of the half-year, Balfour Beatty’s order book stood at £19.5 billion, compared with £16.6 billion a year earlier and £18.4 billion at the end of 2024.