Balfour Beatty raises profit forecast on U.S. infrastructure and UK energy demand

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Balfour Beatty profit outlook

Highlights

Balfour Beatty reports underlying profit from operations of £153 million for H1, up from £108 million a year earlier.
The company upgrades its 2026 profit outlook to low-double-digit percentage growth, above the previous high-single-digit forecast.
Order book reaches £23 billion at H1 end, supported by UK grid investment and resilient U.S. construction demand.

First-half performance and upgraded outlook

As reported by Reuters, Balfour Beatty raises its annual operating profit forecast on Wednesday after a stronger first half, helped by rising demand for building construction in the U.S. and power station projects in the UK.

The British construction group reports underlying profit from operations of 153 million pounds for the half year ended June 26, up from 108 million pounds a year earlier. It says it now expects low-double-digit percentage growth in profit from operations in fiscal 2026, above the high-single-digit percentage growth it previously forecast.

Chief Executive Philip Hoare says the company continues to secure high-quality work, improve profitability and generate strong cash flow. He adds that Balfour Beatty enters the second half with strong momentum.

Energy and building demand support order book

Balfour Beatty operates across power, transportation and defence projects for both public and private sector clients. The upgraded outlook reflects continued support from UK investment in grid upgrades and resilient activity in the company's U.S. buildings portfolio.

The British government's heavy investment in power grid upgrades is benefiting infrastructure contractors such as Balfour Beatty. In the U.S., steady demand across residential, institutional and commercial construction helps support the company's order book, which stands at 23 billion pounds at the end of the first half.

In our earlier report on the UK’s electricity grid upgrade programme, we covered the government’s plan to offer bill discounts to households living near major new power lines and converter stations to reduce local opposition and speed up construction. We also noted that delays to network expansion could hinder decarbonisation goals and limit the system’s ability to integrate rising wind and solar generation.

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