British infrastructure group Balfour Beatty is expecting an approximately 20% increase in its order book for 2025 from £18.4bn ($24.54bn) recorded at the end of 2024.
The growth is attributed mainly to activity in the UK Construction sector, supported by ongoing developments in the domestic energy industry, which added more than £3.5bn of new power generation contracts during the year.
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In its trading update for financial year 2025 ending 4 December, the company also expects revenue for 2025 to surpass that of 2024 by more than 5%. This rise follows progress made in targeted growth sectors, particularly UK energy and US buildings.
Underlying profit from Balfour Beatty’s earnings-based businesses is anticipated to exceed last year’s £252m.
The company notes that increases in profit are led by UK Construction and Support Services but are partly reduced by lower profits from US Construction activities.
The group expects its 2025 infrastructure investment disposals to deliver between £30m and £40m in gains, with transactions currently in progress.
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By GlobalDataIn the UK, Balfour Beatty reports steady delivery in Construction Services, targeting a 3% profit from operations (PFO) margin after excluding around £10m insurance recovery.
Key infrastructure milestones in the second half of the year include completion of the Bromford tunnel at High Speed Two Area North, structural installation work at the Hinkley Point C nuclear power station, and commencement of earthworks at the Net Zero Teesside carbon capture site.
Financial close on the Sizewell C nuclear installation has added approximately £3bn worth of work to the company’s order book.
Other notable contracts include selection as Rolls-Royce’s sole contractor for fissile construction, and a £162m contract for the Dunard Centre concert venue in Edinburgh, Scotland.
In the US, the company’s buildings business expects revenue growth close to 25% for 2025, following an increase in project conversions.
The US order book is projected to expand by over 10%, driven by substantial additions such as $750m of correctional facility work and $400m for data centres.
Balfour Beatty’s Asian operations order book remained stable. The group’s Gammon business continued as planned, with phase one of Terminal 2 at Hong Kong International Airport now open and completion of the Central Kowloon Route road tunnel imminent.
New project wins in the region include both public housing redevelopment and private development contracts.
Balfour Beatty also intends to complete its 2025 share buyback programme in the following week. By that time, the company will have returned £189m to shareholders this year through dividends and repurchases.
Balfour Beatty group chief executive Philip Hoare said: “In my first three months at Balfour Beatty, I’ve been delighted to see first hand the pride, care, and passion on which the company is built, and the team’s depth of talent and technical expertise has genuinely exceeded my expectations.
“These values and capabilities, alongside exciting opportunities in our end markets, a high-quality order book and disciplined risk processes, give the group a powerful platform to shape the next chapter of growth and deliver lasting value for all our stakeholders.”
The company maintains its existing capital allocation strategy and will provide further updates on 2026’s share buyback alongside full-year results in March.
Hoare added: “Our immediate priority is to finish 2025 strongly, while laying the groundwork for further progress in 2026, where I expect the group to continue on its journey of delivering PFO growth from its earnings-based businesses.
“In addition, we are reaffirming our commitment to shareholder returns and confirming a further share buyback for 2026.”
