Balfour Beatty lifts guidance after first-half profit surges

Balfour Beatty raised its full-year guidance on Tuesday after reporting a 20% jump in first-half pre-tax profit, driven by robust infrastructure demand and a resilient order book.

The UK-based construction and engineering group posted pre-tax profit of £145 million for the six months ended June 30, up from £121 million a year earlier, while revenue rose 12% to £5.2 billion. The company attributed the performance to strong activity in its UK and US infrastructure segments, as well as cost efficiencies across operations.

Balfour Beatty upgraded its full-year adjusted operating profit guidance to between £300 million and £320 million, from a prior range of £270 million to £290 million. The company also reaffirmed its dividend policy, maintaining a payout of 4.0 pence per share.

Chief Executive Leo Quinn said the first-half results reflected "strong operational delivery" and highlighted the group's focus on high-margin infrastructure projects. "The order book remains healthy, and we are well-positioned to benefit from continued investment in critical infrastructure," Quinn added.

Analysts noted the upgrade as a positive signal for the sector, given Balfour Beatty's exposure to government-backed infrastructure programs in the UK and the US. The company has secured contracts worth £7.8 billion in the first half, including major projects in rail, highways, and energy.

Shares in Balfour Beatty were up 3.2% at 10:30 BST, outperforming the broader UK construction sector.