Balfour Beatty (BBY) Trading update summary

Trading performance and outlook

• Year-to-date performance remains strong, with high single-digit profit growth expected from earnings-based businesses in 2026 and no change to previous guidance.

• Contract mix continues to provide resilience against macroeconomic volatility and inflation.

• Positive momentum and strong demand persist across key markets, supporting a stable forward order book.

Key contract awards and market activity

• UK Energy: Ongoing growth in power transmission, with 15 schemes in design and most entering construction within 18 months.

• US Buildings: Secured major contracts, including a $270m redevelopment at Fort Carson, a $150m data centre, and a $140m high school.

• UK Transport: Awarded £138m for North Hykeham dual carriageway and bridges, and a £315m Warwickshire Highways Maintenance contract, potentially rising to £900m.

• UK Defence: Pursuing major Defence Nuclear Enterprise construction frameworks.

• Asia: Gammon added significant contracts, including a train station and residential project in Hong Kong, with a 50% share worth c£330m.

Financial position and capital allocation

• Average monthly net cash for Q1 2026 was £1,554m, up from £1,212m in FY 2025; 2026 average net cash expected between £1.3–£1.5bn.

• £200m share buyback program is progressing, with £54m completed to date.