Continued strong performance delivering profitable growth
Further momentum into 2025 and 2026
Leo Quinn, Balfour Beatty Group Chief Executive, said: “The Group made further strong progress in 2024. We once again delivered managed profitable growth from our earnings-based businesses and healthy cash generation, while also increasing our high-quality order book.
“The Board continues to have confidence in Balfour Beatty’s ongoing ability to deliver sustainable cash generation for significant shareholder returns, as evidenced by our announcement of increased dividends and share buybacks for 2025. Balfour Beatty is well positioned to continue its disciplined performance in the medium term, with strong order book visibility, attractive opportunities in our growth markets of UK energy, transport and defence, and US buildings, and our expert, highly engaged workforce positioning the Group for ongoing success.”
Profitable growth from earnings-based businesses
- Underlying profit from operations (PFO) from earnings-based businesses up 7% to £252 million (2023: £236 million)
- Underlying profit before tax up 11%, including increased Investments disposals and net finance income
- Underlying EPS of 43.6p up 17% (2023: 37.3p)
- Non-underlying charge of £49 million (2023: £11m), including provision of costs relating to Building Safety Act
Diversified portfolio driving consistent earnings delivery, with PFO growth in each segment
- Construction Services: PFO up 2% to £159 million (2023: £156 million)
- Support Services: PFO up 16% to £93 million (2023: £80 million) driven by strong revenue growth
- Infrastructure Investments: £1.3 billion Directors’ valuation up 3% (2023: £1.2 billion)
Financial strength and sustainable cash generation supporting increased shareholder returns
- 9% increase in recommended full year dividend at 12.5 pence per share (2023: 11.5 pence per share
- £125 million share buyback confirmed for 2025; 2025 total expected cash return of c.£188 million (2024: £161 million)
- Average net cash of £766 million (2023: £700 million)
Positive outlook with good short-term visibility and significant medium-to long-term potential
- Continued growth in earnings-based businesses underpinned by high-quality £18.4 billion order book (2023: £16.5 bn)
- Group capabilities aligned to significant future opportunities
- High and rising employee engagement underpinning progress in growing Group’s capability
- Further profitable growth from earnings-based businesses expected for 2025 and 2026
|
(£ million unless otherwise specified) |
2024 |
|
2023 |
|||
|
Underlying2 |
Total |
|
Underlying2 |
|
Total |
|
|
Revenue1 |
10,015 |
10,015 |
|
9,595 |
9,595 |
|
|
Profit from earnings-based businesses |
252# |
180 |
|
236# |
|
223 |
|
Profit from operations |
248# |
173 |
|
228# |
211 |
|
|
Pre-tax profit |
289 |
214 |
|
261 |
244 |
|
|
Profit for the year |
227 |
178 |
|
205 |
194 |
|
|
Basic earnings per share |
43.6p |
34.2p |
|
37.3p |
35.3p |
|
|
Dividends per share |
|
12.5p |
|
|
|
11.5p |
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
||||
|
Order book1 |
£18.4bn |
|
£16.5bn |
|||
|
Directors’ valuation of Investments portfolio |
£1.3bn |
|
£1.2bn |
|||
|
Net cash – recourse3 |
943 |
|
842 |
|||
|
Average net cash – recourse3 |
766 |
|
|
|
700 |
|
|
Segment analysis |
2024 |
|
2023 |
||||
|
Revenue1 |
PFO2,# |
PFO margin2 |
|
Revenue1 |
PFO2,# |
PFO margin2 |
|
|
£m |
£m |
% |
£m |
£m |
% |
||
|
UK Construction |
3,011 |
81 |
2.7% |
3,027 |
69 |
2.3% |
|
|
US Construction |
3,638 |
40 |
1.1% |
|
3,697 |
51 |
1.4% |
|
Gammon |
1,550 |
38 |
2.5% |
1,357 |
36 |
2.7% |
|
|
Construction Services |
8,199 |
159 |
1.9% |
|
8,081 |
156 |
1.9% |
|
Support Services |
1,210 |
93 |
7.7% |
|
1,006 |
80 |
8.0% |
|
Earnings-based businesses |
9,409 |
252 |
2.7% |
|
9,087 |
236 |
2.6% |
|
Infrastructure Investments |
606 |
35 |
|
|
508 |
31 |
|
|
Corporate activities |
– |
(39) |
|
|
– |
(39) |
|
|
Total |
10,015 |
248 |
|
|
9,595 |
228 |
|
Notes:
1 Including share of joint ventures and associates
2 Before non-underlying items (Note 9)
3 Excluding non-recourse net borrowings, which comprise cash and debt ringfenced within certain infrastructure investments project companies, and lease liabilities
Underlying profit from operations, or PFO, as defined in the Measuring our financial performance section
A reconciliation of the Group’s performance measures to its statutory results is provided in the Measuring our financial performance section
To read the announcement in full, click here.
ENDS
Investor and analyst enquiries:
Jim Ryan
Tel. +44 (0)7858 368527
jim.ryan@balfourbeatty.com
Media enquiries:
Antonia Walton
Tel. +44 (0)203 810 2345
antonia.walton@balfourbeatty.com
Investor and analyst presentation:
A presentation to investors and analysts will be made at Deutsche Numis, 45 Gresham Street, London, EC2V 7BF at 09:00 (GMT) on 12 March 2025. There will be a live webcast of this on: www.balfourbeatty.com/webcast. The webcast will be recorded and subsequently available at Results, reports and presentations – Investors – Balfour Beatty plc.
