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(Sharecast News) - Infrastructure construction group Balfour Beatty said fullyear performance is now expected to be slightly ahead of prior guidance, with the group forecasting low doubledigit profit from operations growth from its earningsbased businesses and pointing to a £22.9bn order book and strong growth markets underpinning a positive outlook.
The company on Wednesday posted a jump in first half underlying profit to £139m from £95m driven by rising demand in the UK and US. It now expects low-double-digit percentage growth in profit from operations in fiscal 2026, above the high-single-digit percentage growth previously forecast.
Balfour Beatty said it entered the second half "with real momentum", as chief executive Philip Hoare pointed to a strong firsthalf performance, improved profitability and increased cash generation across the group.
Hoare said the results reflected disciplined execution and the "exceptional contribution" of staff in delivering major infrastructure programmes.
Balfour Beatty said it is targeting four strategic growth markets - UK energy transition and security, UK defence, UK transport and US buildings - all backed by firm funding commitments and steady customer demand.
The group said these areas offer attractive near to mediumterm growth prospects, with UK energy a particular focus as it helps deliver new power stations and builds on its leading position in power transmission.
It added that the UK government's Defence Investment Plan confirms funding in areas aligned to its capabilities, while UK transport remains a large and resilient market with mediumterm growth potential. In the US, the company said the buildings market continues to support revenue growth, reflected in higher volumes during the period.
Reporting by Frank Prenesti for Sharecast.com
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