Balfour Beatty has raised its full year guidance after a strong first half of the year, with underlying profit from operations up to £119million from £77million.
Posting its half-year results this morning, the company revealed the £325million contract to deliver the Netherton Hub in Aberdeenshire had helped drive revenue to more than £5.5billion, with increasing demand in its US buildings business another key factor.
The report notes Balfour Beatty holds a "market-leading position in power transmission and distribution, supporting a sector experiencing significant growth that is expected to continue over the medium term".
It adds: "The group has continued to build momentum in the year to date, with strong levels of activity for National Grid, Scottish and Southern Electricity Networks (SSEN) and Scottish Power."
In light of the figures, the group has increased its 2026 guidance for earnings-based business to a low double-digit percentage growth, slightly ahead of the previous high single-digit percentage guidance.
Net finance income is now expected to range from £35million to £40million, up from £28million-£32million.
Average net cash guidance has also been upped by £200million, with the guidance range now between £1.5billion and £1.7billion.
Philip Hoare, Balfour Beatty Group Chief Executive, said: "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.
"We have continued to secure high-quality work, drive profitability and generate strong cash flow. By bringing together the best of our people, expertise and capabilities, we are supporting customers as they invest in the infrastructure which economies need to grow, now and into the future. Supported by a £23billion order book, attractive growth markets and strong operational momentum, Balfour Beatty is well positioned to deliver these programmes safely, efficiently and at scale.
"Together, these strengths give us confidence in our outlook and in our ability to continue generating profitable growth and attractive returns for our shareholders."
FSTE100
The UK's flagship share index, the FTSE 100, was down 19 points at 10,836 shortly after opening this morning.
Brent crude oil futures were up 0.79%, sitting at $89.61 a barrel this morning.
Companies reporting today
- Balfour Beatty - Half Year Results
- TUI - Q3 Results