Balfour Beatty forecasts high single-digit profit growth in 2026 as order book holds at record £22.7bn

UK infrastructure contractor Balfour Beatty has reported strong year-to-date performance ahead of its AGM on 7 May, with its board maintaining guidance for high single-digit percentage profit growth from its earnings-based businesses in 2026. The trading update follows a 51% increase in pre-tax profit from £214m to £323m in the year to 31 December 2025, with turnover growing 15% to £9.49bn.

Construction News reported that the group's forward order book remained in line with the year-end record of £22.7bn at the close of Q1, underpinned by continued contract wins across the firm's four chosen growth markets: UK energy, UK transport and defence, UK buildings, and US buildings.

Average monthly closing net cash for the first three months of 2026 reached £1.55bn, up from £1.44bn at the close of 2025. The board expects 2026 average net cash to fall in the range of £1.3bn to £1.5bn, with a £200m share buyback on track for completion by year end, with approximately £54m completed to date.

In UK energy, power transmission volumes increased and operating profit margins remain above 8%, currently at 8.5%. Most of the 15 transmission schemes Balfour Beatty is delivering for National Grid, SSEN and Scottish Power are expected to start construction within the next 18 months. In UK transport and defence, the group won a £315m seven-year Warwickshire Highways Maintenance contract, potentially rising to £900m, and is actively pursuing major Defence Nuclear Enterprise construction frameworks.

In the US, a $270m (€248m) redevelopment at Fort Carson military base in Colorado and a $150m (€138m) data centre contract were among notable new awards in the period.

View the full trading update on Balfour Beatty's 2026 AGM performance statement.