Balfour Beatty (LON:BBY) Releases Earnings Results

Balfour Beatty (LON:BBY) issued its quarterly earnings data on Wednesday. The company reported GBX 47.60 earnings per share (EPS) for the quarter, Digital Look Earnings reports. Balfour Beatty had a net margin of 2.06% and a return on equity of 16.67%.

Here are the key takeaways from Balfour Beatty’s conference call:

• Delivered against targets with earnings per share up 9%, revenue +8% to GBP 10.8bn, a record order book of GBP 23bn and a board-backed capital return package including a GBP 200m share buyback and a 12% dividend increase.
• UK construction and support services drove margin improvement — UK construction exceeded the 3% margin target early and support services PFO rose 31% with margins at 8.5%, underpinned by a large power transmission pipeline (GBP 6–8bn) and material upside to power revenues.
• US business shows strong growth (revenue +28%, order book +18%) but remains mixed operationally after a U.S. civils write-down and Texas project overruns; US construction margins were ~0.6% in 2025 with management targeting gradual recovery toward historical levels (1–1.5% and an aspiration toward 2%).
• Infrastructure investments faced higher monitorship and legal costs, extending the monitorship to 6 June and leaving a larger-than-expected loss before disposals despite strong disposal proceeds (12 assets, GBP 120m) and a Directors’ portfolio valuation down 15% to GBP 1.1bn.
• Cash and balance sheet strength improved materially — average net cash rose to ~GBP 1.2bn, operating cash flow was strong (~GBP 300m), working capital is expected to normalize around 15–18% of revenue, and a triennial pension settlement reduces future deficit outflows.

Balfour Beatty Price Performance

LON:BBY opened at GBX 743.45 on Wednesday. The company has a debt-to-equity ratio of 104.84, a current ratio of 0.97 and a quick ratio of 0.84. The company has a 50 day moving average price of GBX 733.69 and a 200-day moving average price of GBX 686.83. Balfour Beatty has a 1-year low of GBX 365.80 and a 1-year high of GBX 800. The firm has a market cap of £3.60 billion, a price-to-earnings ratio of 21.06, a price-to-earnings-growth ratio of 3.75 and a beta of 0.64.

Analyst Upgrades and Downgrades

Separately, Deutsche Bank Aktiengesellschaft raised their target price on Balfour Beatty from GBX 650 to GBX 715 and gave the stock a “buy” rating in a research note on Thursday, December 4th. Two equities research analysts have rated the stock with a Buy rating, According to MarketBeat, the company currently has an average rating of “Buy” and a consensus target price of GBX 712.50.

Balfour Beatty Company Profile

Balfour Beatty is a leading international infrastructure group. With 26,000 employees across the UK, US and Hong Kong, we’re leading the transformation of our industry to meet the challenges of the future.

Trusted by our customers to deliver sustainable solutions and strengthen communities, we finance, develop, build, maintain and operate the increasingly complex and critical infrastructure that supports national economies and deliver projects at the heart of local communities.

Collaborating with governments, our customers and partners, we deliver powerful new solutions, shape thinking, create skylines and inspire a new generation of talent to be the change-makers of tomorrow.