Shares in Balfour Beatty plc (LSE:BBY), the FTSE 250 infrastructure group, were up 9% at 945p after it raised its full-year profit guidance after a first half in which its loss-making American construction arm swung back into the black.
The company now expects low double-digit percentage growth in profit from operations at its earnings-based businesses, up from previous guidance of high single-digit growth.
It also lifted its average net cash guidance by £200 million to a range of £1.5 billion to £1.7 billion, and raised expected net finance income to between £35 million and £40 million, from £28 million to £32 million.
The upgrade was underpinned by the US construction division, which delivered £22 million of underlying profit in the six months to June against an £11 million loss a year earlier.
That turnaround reflected growth in the buildings business, which serves data centre and commercial customers, alongside reduced losses in civils, the roads and bridges operation that has weighed on group performance for several years.
Support services, which includes power transmission work for the UK grid, lifted underlying profit to £66 million from £46 million.
Group underlying profit from operations rose to £119 million from £77 million, on revenue of £5.56 billion against £5.15 billion.
Underlying earnings per share increased to 21.7p from 14.4p.
The interim dividend was raised 12% to 4.7p, and the company completed £102 million of share buybacks during the period.
UK construction was the weaker performer, with margin slipping to 3.4% from 3.6%, although the prior-year figure included a £10 million one-off credit.
The order book stood at £22.9 billion, against £22.7 billion at the December year-end and £19.5 billion a year ago.
Philip Hoare, chief executive, said the group entered the second half with momentum and pointed to demand from customers investing in infrastructure.
Losses at the infrastructure investments division narrowed to £9 million from £10 million, helped by the end of monitor and legal costs.
Peel Hunt reiterated its 'buy' on Balfour with a 960p price target. The shares are trading at 14.2 times the earnings the broker expects the company to make in 2027, which it considers cheap.
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