Balfour Beatty has recorded what it says is a ‘strong performance delivering profitable growth’ for the first half of 2026, with an order book worth almost £23 billion.
The company is focused on four strategic growth markets: UK energy transition and security, UK defence, UK transport and US buildings, with these markets supported by strong funding commitments and enduring customer demand, providing attractive growth opportunities over the near to medium term.
In UK energy, the Group is helping to build the next generation of UK power stations and has a market leading position in the fast-growing power transmission sector. In defence, the UK Government’s recently published Defence Investment Plan has confirmed funding commitments in areas directly aligned to Balfour Beatty’s capabilities.
UK transport remains a large, resilient market, in which the Group expects to grow over the medium term, while in the US, the buildings market continues to support revenue growth opportunities, as demonstrated by increased volumes in the period. The strength of these markets enables Balfour Beatty to maintain its disciplined and selective bidding approach, focused on securing work that offers attractive returns and an appropriate balance of risk and reward.
This approach continues to support a high‑quality and lower risk forward order book. Notable contract awards in the period included a £325 million power transmission project in Scotland, a £315 million road maintenance contract in Warwickshire, c.US$350 million of US data centre orders and a $361 million order at Raleigh Durham International Airport in North Carolina.
The Group’s £22.9 billion order book continues to provide strong visibility of future revenue and earnings. In addition to the reported order book, significant opportunities exist within long term framework arrangements across the UK power transmission and distribution sector and UK defence, where work is increasingly awarded through phased programmes and task orders. This work will be added to the order book when contracted. Balfour Beatty enters the second half of the year with strong momentum. Supported by a high-quality order book, attractive growth markets and differentiated end-to-end capabilities, the Group is well positioned to deliver sustainable growth and long-term value for all its stakeholders.
Philip Hoare, Balfour Beatty Group Chief Executive, said:
“Balfour Beatty enters the second half with real momentum. Our strong first-half performance reflects the quality of our business, the discipline of our execution and, above all, the exceptional contribution of our people in delivering for our customers. “We have continued to secure high-quality work, drive profitability and generate strong cash flow. By bringing together the best of our people, expertise and capabilities, we are supporting customers as they invest in the infrastructure which economies need to grow, now and into the future.
“Supported by a £23 billion order book, attractive growth markets and strong operational momentum, Balfour Beatty is well positioned to deliver these programmes safely, efficiently and at scale. “Together, these strengths give us confidence in our outlook and in our ability to continue generating profitable growth and attractive returns for our shareholders.”
“This is a company in the right place at the right time. Balfour is benefiting from demand in areas where spending is hard to avoid: power networks, transport, defence, and US buildings,” says Alex Pugh, an analyst at investemt platform Freetrade.
“US construction has moved back into profit, helped by buildings growth and fewer problems in civils, which takes some of the sting out of an area that has previously caused headaches.
“The UK power grid work is the standout. Balfour Beatty is seeing real benefit from the push to upgrade energy infrastructure, and that is feeding through into Support Services. The balance sheet is doing some heavy lifting too. Strong cash generation means Balfour can fund growth and still keep investors sweet with dividends and buybacks.
“Balfour Beatty does not need a moonshot. While many firms are growing for growth’s sake, Balfour is more about steady execution, a strong order book, and a balance sheet that gives management room to keep returning cash.”
(Picture: Balfour Beatty)
