But US losses largely offset UK profitability gains
Balfour Beatty鈥檚 UK construction division has hit its profit margin target for the first time, though profitability across the group was tempered by US losses.
The contractor鈥檚 results for the half-year ended 27 June 2025 showed underlying operating profit of 拢56m in the UK.
This was up from 拢34m the year prior and represented a 3.6% margin. The division has had a long-standing target of achieving a profit from operations margin higher than 3% and Balfour Beatty said this had been achieved a year earlier than expected.
The support services business also experienced significant growth, with underlying profit from operations rising 35%.
However, across all the group鈥檚 earning-based businesses, underlying profit from operations stood at 拢108m, only marginally up from 拢101m in the same period the year prior.
This was because the strong growth in UK Construction and Support Services was largely offset by a loss in US Construction, stemming from delays at one highway civils project in Texas.
The business said recoveries were being pursued on the loss.
Statutory pre-tax profit for the whole group stood at 拢132m, up from 拢112m, while revenue was 拢5.15bn, up from 拢4.68bn
Leo Quinn, Balfour Beatty group chief executive, said: 鈥淥ur continuing strong cash generation is underpinned by a growing order book with improved margins and lower risk contract forms.
鈥淭his provides the board with increasing confidence in significant future cash generation that supports our ongoing dividends and share buybacks. This is demonstrated by the momentum in our key growth areas in the first half.
鈥淔urthermore, recent UK government announcements confirm a deep pipeline of major infrastructure projects which closely align with the group鈥檚 unique expert capabilities and will further enhance the quality of the future order book.鈥�
Balfour Beatty鈥檚 order book stands at 拢19.5bn, up from 拢16.6bn in last year鈥檚 half-year figures and 拢18.4bn in the full year results for 2024.
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