A Balfour Beatty guidance upgrade sent the infrastructure group’s shares up 10% on 12 August 2026, after it reported a 42% jump in first-half profit and raised its full-year outlook on the back of a US construction recovery and surging demand for power transmission work.
Underlying profit from operations rose to £119m from £77m in the six months to 26 June, on revenue of £5.56bn. Underlying earnings per share climbed to 21.7p from 14.4p.
US Swing and Power Transmission Fuel the Half-Year Beat
The US construction arm swung to a £22m profit from an £11m loss a year earlier, as its buildings business expanded and losses in civils narrowed. Support Services lifted profit to £66m from £46m, driven by work on National Grid’s ‘Great Grid Upgrade’ and Scottish network schemes.
Balfour Beatty has secured two places on National Grid’s High Voltage Direct Current supply chain framework and a place on Scottish Power Energy Networks’ Strategic Agreement for Overhead Lines framework, providing contracted pipeline for future power transmission revenue.
UK Construction held broadly steady, recording a profit from operations (PFO) margin of 3.4% in the half, against 3.6% in the same period a year earlier. The Balfour Beatty HY 2026 results note that the prior-year margin included a £10m one-off credit; stripping that out, the underlying margin showed further progress.
Balfour Beatty Guidance Upgrade: High Single-Digit Becomes Low Double-Digit
Management lifted its full-year profit growth outlook from high single-digit to low double-digit growth. Adam Vettese, market analyst at eToro, said the move signalled ‘genuine confidence rather than cautious conservatism.’
Chief executive Philip Hoare said the group had entered the second half with real momentum, supported by its order book and its growth markets.
Cash Position and Capital Returns
Statutory net cash at the half stood at £1,012m, up from £837m at the end of 2025 and £677m at the same point last year, according to the HY 2026 press release. Average net cash over the period was £1.6bn, against £1.2bn a year earlier.
The group’s order book ended the half at £22.9bn. The interim dividend was raised 12% to 4.7p per share.
On the buyback, the group had completed £102m of its £200m annual programme by the half-year. The press release confirms the programme began with an initial £50m tranche on 5 January 2026, subsequently increased to £200m following the full-year results release. The Balfour Beatty results and presentations page carries the full documentation.
The pace of the US civils recovery and the rate of new National Grid contract awards will set the ceiling for whether the low double-digit guidance proves conservative or tight as the year closes.
