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British construction group Balfour Beatty has raised its full-year 2026 operating profit forecast, supported by strong demand for infrastructure projects in the UK and the US. The company now expects low-double-digit percentage growth in profit from operations, compared with its earlier high-single-digit forecast. Its underlying operating profit rose to GBP 153 million in the first half from GBP 108 million a year earlier. Demand for US building projects and UK power infrastructure supported the performance, while the company ended the first half with an order book of around GBP 23 billion.
British construction group Balfour Beatty has raised its full-year operating profit forecast, supported by continued demand for infrastructure projects in the UK and the US. The company now expects low-double-digit percentage growth in profit from operations in fiscal 2026, compared with its earlier forecast of high-single-digit growth. Stronger activity in US building construction and UK power infrastructure helped support the company's performance during the first half of the year.
Balfour Beatty reported underlying profit from operations of GBP 153 million for the first half, compared with GBP 108 million in the same period last year.
The company works on public and private sector projects across areas including power, transportation and defence. Increased investment in the UK's power grid has created further opportunities for infrastructure companies, with Balfour Beatty benefiting from demand for new and upgraded power infrastructure.
The company's US buildings business also remained resilient. The portfolio covers residential, institutional and commercial construction and has continued to support the company's performance in the US market.
Balfour Beatty ended the first half with an order book worth around GBP 23 billion, providing visibility for future construction and infrastructure work. The company said demand across its US buildings portfolio was one of the factors supporting the order book.
Chief Executive Philip Hoare said the company had continued to secure new work, improve profitability and generate strong cash flow. He added that the business was entering the second half with strong momentum.
The company's performance also reflects continued infrastructure spending in the UK. Government investment in power networks has increased as the country works to upgrade its electricity infrastructure and support rising energy requirements. This has created a pipeline of work for contractors involved in power transmission and related infrastructure.
In the US, Balfour Beatty's buildings business has remained an important part of its construction operations, with activity spread across residential, institutional and commercial projects. The company has maintained its focus on areas where demand remains steady while taking a more selective approach to projects carrying higher execution and cost risks.
Balfour Beatty's stronger first-half performance and sizeable order book have allowed it to raise its expectations for the full year. The company will now look to maintain project execution, cash generation and margins as it moves through the second half.
Source Reuters
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