Balfour Beatty raises guidance and hikes dividend after strong half
(Alliance News) - Shares in Balfour Beatty PLC on Wednesday jumped as it lifted profit and cash guidance underpinned by a bumper order book.
Chief Executive Philip Hoare said the strong first-half performance reflects the "quality of our business", adding the firm "enters the second half with real momentum".
In response, shares in the London-based international infrastructure company jumped 9.4% to 947.00 pence each in London on Wednesday morning. Earlier Wednesday, the stock set a new 52-week high of 973.00p. The wider FTSE 250 index was flat on the day.
Balfour Beatty said pretax profit fell 2.3% to GBP129 million in the first six months of 2026 from GBP132 million the year prior.
Basic earnings per share edged up to 20.0 pence from 19.8p.
Underlying profit from operations from earnings-based businesses increased 42% to GBP153 million from GBP108 million, with underlying EPS of 21.7p per share, up from 14.4p.
Revenue climbed 8.0% to GBP5.56 billion from GBP5.15 billion, due to rising demand in US Buildings and UK power transmission.
In response, Balfour Beatty hiked its interim dividend by 12% to 4.7p per share from 4.2p.
Average net cash increased to GBP1.62 billion from GBP1.21 billion.
By division, UK construction reported underlying profit from operations of GBP54 million on sales of GBP1.57 billion, little changed on-year.
US construction saw sales rise to GBP2.38 billion from GBP2.09 billion, with underlying profit from operations of GBP22 million, swung from a GBP11 million loss the year before.
As a result of the strong results, Balfour Beatty increased 2026 guidance for earnings-based business profit from operations to low double-digit percentage growth from high single-digit percentage growth before.
It sees net finance income of GBP35 million to GBP40 million compared to GBP28 million to GBP32 million previously, and average net cash of GBP1.5 billion to GBP1.7 billion, raised from GBP1.3 billion to GBP1.5 billion.
The positive outlook is underpinned by a GBP22.9 billion order book, Balfour Beatty said, up from GBP19.5 billion at the same time a year ago, and strength of growth markets.
"Together, these strengths give us confidence in our outlook and in our ability to continue generating profitable growth and attractive returns for our shareholders," said Chief Executive Philip Hoare.
By Jeremy Cutler, Alliance News reporter
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