UPDATE: Balfour Beatty posts share buyback as pretax profit surges

(Alliance News) - Balfour Beatty PLC on Wednesday said its long-term outlook remained positive amid "strong visibility" from its order book, as it recommended a higher dividend amid a statutory pretax profit jump.

The London-based international infrastructure construction firm said pretax profit surged 51% to GBP323 million in 2025 from GBP214 million in 2024.

Underlying profit from operations rose 16% to GBP293 million from GBP252 million.

Revenue climbed 7.5% to GBP10.77 billion in 2025 from GBP10.02 billion in 2024.

In its Infrastructure Investments division meanwhile, pretax profit fell 73% to GBP14 million in 2025 from GBP51 million in 2024.

"Tariffs had a relatively low impact on the business in the year, and where incurred, were largely recovered through pre-existing contract terms," the firm said.

The company recommended a final dividend per share of 9.8 pence for 2025, up 13% from 8.7p in 2024. This would bring the total payout for 2025 to 14p, up 12% from 12.5p.

Further, Balfour intends to buy back GBP200 million of shares during the 2026 phase of its multi-year share buyback programme.

Looking ahead, the company expects a high-single digit percentage increase in profit from operations in 2026, including further underlying margin growth in UK construction, when excluding GBP11 million in insurance recovery in 2025. Further, it cites an improved US construction margin.

"The group's long-term outlook remains positive, with the growth forecast in 2026 and 2027 being driven by strong visibility from its high-quality order book, alongside the further opportunities in the energy, transport and defence sectors in the UK and the group's chosen buildings sectors in the US. This gives the board confidence in Balfour Beatty's continued ability to deliver profitable managed growth and sustainable cash generation, and in turn significant ongoing shareholder returns," the firm said.

Balfour shares rose 7.1% to 752.00 pence each on Wednesday morning in London.

By Tom Budszus, Alliance News slot editor

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