Balfour Beatty (LSE:BBY) delivered robust results for the first half of 2025, buoyed by strong performances in its UK Construction and Support Services divisions. Profit from operations in its earnings-based businesses rose 7%, and the company hit its 3% margin target for UK Construction a year earlier than planned.
Although US Construction operations recorded a loss due to cost overruns, the group remains upbeat, supported by a £19.5 billion order book underpinned by UK government infrastructure projects. This pipeline is expected to sustain healthy cash generation, enabling continued dividends, share buybacks, and strategic market expansion.
Balfour Beatty’s results highlight its operational resilience and growth potential, reinforced by ongoing contract wins and capital return programs. While technical signals suggest the stock may be overbought in the near term, its reasonable valuation and positive earnings trajectory bolster the investment case.
About Balfour Beatty
Balfour Beatty is a major international infrastructure group active in construction and support services, with operations concentrated in the UK and US. The company specializes in delivering large-scale infrastructure projects across energy transition, transport, and defense sectors, alongside infrastructure investment activities.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
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