Balfour Beatty plc (LSE:BBY)’s third-quarter update next Thursday, December 5, has prompted speculation over the prospect of further buybacks by the infrastructure firm.
According to UBS analysts, expectations are for an additional £100 million share buyback in 2025, leaving commentary around shareholder returns sought after in the update.
This would follow some £750 million worth of returns in the past four years, including a forecasted dividend in 2024, AJ Bell pointed out.
“We think the market anticipates a reasonably positive outlook from the company, supported by increasing infrastructure and power infrastructure investments,” UBS said.
Pledges by Britain’s new Labour government to drive growth through infrastructure spending should support this, AJ Bell added.
Number-wise, order book trends will be in focus as Balfour approaches the end of its financial year.
Expectations are for revenue to increase by 1.9% to £9.7 billion for the year, as underlying profit ticks up from £228 million to £236 million, AJ Bell highlighted.
Average net cash over the year is anticipated within a range of £700 million and £750 million.