The infrastructure group said underlying profit from operations (PFO) across its earnings-based businesses — Construction Services and Support Services — rose 42% to £153 million in the first half of 2026, up from £108m a year earlier. Group underlying PFO increased to £119m, from £77m, while underlying earnings per share climbed to 21.7 pence, from 14.4 pence.

Citing the momentum, Balfour Beatty said it now expects low double-digit percentage growth in PFO from its earnings-based businesses this year, ahead of the high single-digit growth it had guided to in March. Average net cash guidance was raised by £200m to a range of £1.5 billion to £1.7bn, and net finance income guidance was lifted to a range of £35m to £40m.

Group chief executive Philip Hoare said the company enters the second half “with real momentum,” pointing to the quality of the business, execution discipline and the contribution of its workforce. He added that the group had continued to win high-quality work, improve profitability and generate strong cash flow, and said the roughly £23bn order book and favourable growth markets left Balfour Beatty well placed to deliver its programmes “safely, efficiently and at scale.”

Divisional performance

• US Construction swung to a £22m profit, from an £11m loss a year earlier, as strong growth in US Buildings offset a narrowing of losses in the Civils business.
• Support Services profit rose to £66m, from £46m, powered by growth in power transmission work.
• UK Construction delivered a 3.4% PFO margin (2025: 3.6%), which the company said represented further progress once a one-off £10m insurance credit booked in 2025 is excluded — on that basis, underlying profit grew 17%.
• Infrastructure Investments posted a £9m loss, narrower than the £10m loss a year earlier, reflecting monitorship and legal costs tied to the group’s US military housing business that ceased in June. The Directors’ valuation of the investments portfolio was held at £1.1bn.

Average net cash rose to £1,616m in the first half, from £1,212m a year earlier, helped by working-capital inflows in US Construction and Support Services. The board declared an interim dividend of 4.7 pence per share, up 12% from 4.2 pence, and confirmed that £102m of its 2026 share buyback programme, targeted at £200m for the year, had been completed in the period, with the full programme on track to finish by year-end.

The group’s order book grew to £22.9bn, from £22.7bn at the end of 2025, and Balfour Beatty said further work was in the pipeline through long-term framework arrangements in UK power transmission and defence that had yet to be formally added to the order book.

Notable contract wins in the first half included a £325m, two-year contract to build the Netherton Hub in Aberdeenshire, part of SSEN’s ASTI Offshore Framework and selection as one of five contractors on the next phase of National Grid’s Electricity Transmission Partnership, part of an initial £1.2bn reconductoring programme.

Balfour Beatty said its strategy remains centred on four growth markets: UK energy transition and security, UK defence, UK transport and US buildings. It pointed to the UK government’s Defence Investment Plan, published in June, which confirmed a commitment to raise defence spending to 3.5% of GDP by 2035, as supportive of its ambitions in defence infrastructure. In transport, the group highlighted continued momentum from the £27bn Road Investment Strategy (RIS3), even as it flagged uncertainty over the timing of larger transport schemes.

Looking to the second half, Balfour Beatty said it expects Infrastructure Investments’ performance to improve following the end of the military housing monitorship, though underlying PFO for that division is still forecast to be a small loss for the year before disposals. Gains on investment disposals are expected to come in between £5m and £15m for the full year.

The group said its longer-term outlook remains positive, with further growth expected in 2027 underpinned by the order book and continued opportunities across UK energy, transport and defence, as well as its target buildings markets in the US.

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.”