Balfour Beatty plc (LSE:BBY) launched a £200 million share buyback and raised its full-year dividend 12% to 14p per share as the construction and infrastructure group reported a fifth consecutive year of earnings growth and an order book swelling to record levels.
Underlying profit from operations in earnings-based businesses rose 16% to £293 million on revenue up 8% to £10.8 billion, with UK power transmission and US buildings demand the key growth drivers.
UK construction surpassed its 3% margin target a year ahead of schedule, while the support services division delivered a standout performance with profit up 31% to £122 million and an 8.5% margin driven by growth in power transmission projects.
US construction was more mixed, with strong buildings performance offset by cost overruns at a single civils project where the group said it was pursuing recoveries.
The order book swelled 23% to £22.7 billion, including more than £3.5 billion of new UK power generation projects, with a significant further pipeline of UK defence contracts and US building work providing visibility into 2027.
New chief executive Philip Hoare, who joined in September, said the group's capabilities and disciplined approach to risk provided "a powerful foundation for the future," and guided for further profitable growth in both 2026 and 2027.