Balfour Beatty (LSE:BBY) raised its full-year guidance on Wednesday after underlying profit from operations at its earnings-based businesses rose 42% to £153 million in the first half, up from £108 million a year earlier.
The infrastructure and construction group now expects low double-digit percentage growth in earnings-based business profit for 2026, "slightly ahead" of its previous guidance of high single-digit growth, for the year ending 31 December.
Group underlying profit from operations rose to £119 million from £77 million, with US Construction swinging to a £22 million profit from an £11 million loss on stronger Buildings growth and reduced Civils losses, while Support Services profit climbed to £66 million from £46 million on power transmission growth.
UK Construction margins slipped to 3.4% from 3.6%, though the prior year included a £10 million one-off insurance credit; stripping that out, profit grew 17%.
Average net cash rose to £1,616 million from £1,212 million, prompting the company to lift its average net cash guidance by £200 million to a range of £1.5 to £1.7 billion.
The interim dividend rose 12% to 4.7p per share, alongside £102 million of share buybacks completed in the period.
"Balfour Beatty enters the second half with real momentum," said group chief executive Philip Hoare, pointing to a £22.9 billion order book and "strong operational momentum".
Net finance income guidance was raised to a range of £35 to £40 million, from £28 to £32 million previously.
News Intelligence what this means for the company
Balfour Beatty raised full-year 2026 guidance to low double-digit profit growth from high single-digit after earnings-based business profit jumped 42% to £153m in H1. The upgrade reflects broad operational strength: US Construction swung to £22m profit from an £11m loss, Support Services profit rose to £66m on power transmission growth, and net cash ballooned to £1,616m, prompting a £200m upward revision to full-year cash guidance. The company is returning capital aggressively—12% dividend hike and £102m buybacks—while maintaining a £22.9bn order book.
The guidance lift and 42% H1 profit growth materially strengthen the case for earnings momentum and cash generation, though UK Construction margin compression (3.4% from 3.6%, before stripping a one-off credit) signals execution risk in that segment. The £200m net cash upgrade and capital return programme suggest management confidence in sustainable profitability, not a one-off bounce.
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