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Builders and building materials

Balfour Beatty hikes dividend and confirms buyback following 'disciplined' performance

Balfour Beatty plc (LSE:BBY) hiked its dividend 9% and confirmed that it will launch a £125 million share buyback this year as the infrastructure construction group grew profits and cash, while also topping up its order book.

Core underlying operating increased 7% to £252 million as revenue swelled 4% to just over £10 billion.

Reported profit before tax fell 12% to £414 million, as a charge of £49 million was taken, including provision of costs relating to the Building Safety Act.

A full year dividend of 12.5p per share was declared, up from 11.5p in 2023, with a total expected cash return of around £188 million expected this year thanks to the buyback.

Net cash averaged £766 million over the year, up from roughly £700 million the year before.

With an £18.4 billion order book, up from £16.5 billion, the group said it expected further profitable growth from its earnings-based businesses in 2025 and 2026.

CEO Leo Quinn said: "Balfour Beatty is well positioned to continue its disciplined performance in the medium term."

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