Underlying turnover at the UK’s biggest contractor exceeded \u00a310bn for the first time last year, alongside a double-digit percentage increase in pre-tax profit.<\/p>\n
Balfour Beatty\u2019s departing chief executive, Leo Quinn, hailed the latest full-year results as evidence of \u201cfurther strong progress\u201d.<\/p>\n
However, the group noted an \u00a383m building safety charge in its announcement this morning (12 March) to the London Stock Exchange.<\/p>\n
The growth in underlying revenue for the 12 months ended 31 December 2024 marked a 4.4 per cent year-on-year increase from last year\u2019s \u00a39.6bn, Balfour Beatty<\/a> said.<\/p>\n Statutory revenue \u2013 the metric Construction News <\/em>applies in its CN100 index<\/a> \u2013 rose by 3 per cent from \u00a37.99bn to \u00a38.23bn.<\/p>\n Group pre-tax profit increased by 11 per cent from \u00a3261m in 2023<\/a> to \u00a3289m last year, powered by growth in construction and support services.<\/p>\n The company\u2019s order book expanded by 12 per cent to \u00a318.4bn. Balfour Beatty said this reflected demand in the UK energy, transport, and defence markets, as well as in the US construction market.<\/p>\n Quinn, who is stepping down as chief executive after a decade in charge<\/a>, said: \u201cBalfour Beatty has made further strong progress in 2024. We have delivered managed profitable growth while maintaining healthy cash generation and increasing our high-quality order book.\u201d<\/p>\n Balfour Beatty\u2019s core construction services division delivered underlying revenue (including joint ventures) of \u00a38.2bn, up from \u00a38.08bn the year before. UK construction saw its underlying operational profit rise from \u00a369m to \u00a381m.<\/p>\n However, US construction profitability fell due to cost overruns as \u201ca small number of civils projects have taken longer than initially scheduled\u201d, Balfour Beatty said.<\/p>\n The support services business delivered revenue growth from \u00a31.01bn to \u00a31.21bn, supported by increased demand in power transmission and distribution, as well as road maintenance.<\/p>\n Balfour Beatty confirmed a 9 per cent increase in its full-year dividend to 12.5p per share, up from 11.5p in 2023.<\/p>\n Additionally, the company will continue its share buyback programme, repurchasing \u00a3125m worth of shares in 2025. The total expected shareholder return for the year is approximately \u00a3188m, compared to \u00a3161m in 2024.<\/p>\n \u201cBalfour Beatty is confident of continuing to deliver significant future shareholder returns,\u201d the group said in its Stock Exchange announcement.<\/p>\n Average net cash rose to \u00a3766m compared to \u00a3700m and Balfour Beatty reported a year-end net cash balance of \u00a3943m.<\/p>\n However, short-term repayable bank overdraft debt rose from \u00a3104m to \u00a3185m, while the group\u2019s subsidiaries also held \u00a3600m in project finance-specific loans compared to \u00a3570m the previous year.<\/p>\n Longer-term repayable borrowings totalled \u00a3754m versus \u00a3723m in 2023.<\/p>\n In 2024, the group extended its core revolving credit facility by 12 months to June 2028.<\/p>\n The firm\u2019s bottom line was affected by an \u00a383m building safety charge, after \u201cdevelopments in the legal landscape of the BSA [Building Safety Act] prompted it to reassess its provision in this area.<\/p>\n \u201cThe provision does not include potential recoveries from third parties and the resulting cash outflow is expected over a number of years,\u201d Balfour Beatty said.<\/p>\n \u201cThe group continues to recognise defects on projects not covered by the BSA as part of its underlying performance.\u201d<\/p>\n Balfour Beatty\u2019s order book growth was driven partly by demand in the UK power transmission market. The company secured key contracts in 2024, including a \u00a3363m contract with National Grid<\/a> for the Bramford to Twinstead reinforcement scheme, and a role in the Eastern Green Link 2 project<\/a>.<\/p>\n In the US, Balfour Beatty\u2019s buildings division saw a 26 per cent increase in its order book, with new contracts across aviation, education, and government sectors.<\/p>\n The company also remains well-positioned in UK defence, having been selected as a key construction partner for Rolls-Royce\u2019s Ministry of Defence expansion in Derby<\/a>.<\/p>\n