Infrastructure giant Balfour Beatty has announced stronger profits after a boost from its UK construction arm, which it expects to be supported further by new projects.
It came as boss Leo Quinn delivered his final results for the firm. He is stepping down as chief executive after almost 11 years transforming its operations.
On Wednesday, the FTSE 250 company said it is on track to meet its profit forecasts for this year and is targeting “growth” in 2026.
It reported that pre-tax profits grew to £132 million for the first half of the year, up from £112 million a year earlier.
Balfour Beatty said it was supported by “strong” profitability in its UK construction and support services operations.
Mr Quinn said its UK business saw profit margins reach target levels more quickly than expected because of Government efforts to speed up infrastructure projects and planning reform.
He said: “Recent UK Government announcements confirm a deep pipeline of major infrastructure projects which closely align with the group’s unique expert capabilities and will further enhance the quality of the future order book.”
However, the company said it saw weaker profitability from its US construction arm over the half-year because of issues facing interstate highway projects in Texas.
Mr Quinn added: “Our continuing strong cash generation is underpinned by a growing order book with improved margins and lower risk contract forms.
“This provides the board with increasing confidence in significant future cash generation that supports our ongoing dividends and share buybacks.
“This is demonstrated by the momentum in our key growth areas in the first half.”
Shares in Balfour Beatty were 2.8% lower.
