Balfour Beatty’s U.S. Construction business generated £22 million of underlying profit from operations in the first half of 2026, up from an £11 million loss a year earlier, for a £33 million earnings swing as stronger Buildings activity and reduced Civils losses improved the segment’s economics.
The U.S. Construction segment generated approximately £2.48 billion of first-half revenue, making it the largest individual construction geography reported by the group. The £22 million underlying PFO implies that even a relatively modest improvement in operating economics across that revenue base can have a significant effect on group earnings.
The U.S. improvement formed part of a broader increase across Balfour Beatty’s earnings-based businesses. Underlying PFO from those businesses rose 42% to £153 million from £108 million, while the company identified rising demand in U.S. Buildings and U.K. power transmission as key drivers of the first-half performance.
Support Services was another major contributor, with underlying PFO increasing 43% to £66 million from £46 million on strong power-transmission activity. U.K. Construction generated £54 million of PFO on approximately £1.57 billion of revenue, while Gammon generated £11 million on £495 million of revenue.
Across the group, first-half revenue was approximately £5.56 billion, while underlying profit from operations reached £119 million. Pre-tax profit was £139 million and profit for the period was £105 million.
Underlying EPS increased to 21.7 pence from 14.4 pence, reflecting the stronger earnings contribution from the operating businesses. The company’s £22.9 billion order book, up from £22.7 billion at the end of 2025, also provides substantial forward visibility across its construction and infrastructure activities.
Cash generation strengthened alongside earnings. Average net cash increased to £1.62 billion from £1.21 billion, and Balfour Beatty raised its full-year average net cash guidance by £200 million to a range of £1.5 billion to £1.7 billion.
The stronger balance sheet is also supporting shareholder returns. Balfour Beatty completed £102 million of share repurchases during the first half and increased its half-year dividend 12% to 4.7 pence per share from 4.2 pence. The directors maintained their valuation of the Infrastructure Investments portfolio at £1.1 billion.
Following the first-half performance, the company increased its 2026 outlook and now expects low double-digit percentage growth in underlying PFO from earnings-based businesses, slightly ahead of its previous guidance. Net finance income is expected to reach £35 million to £40 million as cash performance strengthens.
The U.S. Construction turnaround is especially significant because it converts what was previously an earnings drag into a positive contributor while demand in U.S. Buildings remains one of the primary drivers of group growth.
KEY QUOTE:
“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.”
Philip Hoare, Balfour Beatty Group Chief Executive
