{"id":520041,"date":"2025-05-08T11:35:01","date_gmt":"2025-05-08T10:35:01","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=520041"},"modified":"2025-05-08T11:35:01","modified_gmt":"2025-05-08T10:35:01","slug":"positive-momentum-drives-balfour-beatty-cash-forecast-towards-1bn","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/contractors\/balfour-beatty\/positive-momentum-drives-balfour-beatty-cash-forecast-towards-1bn-08-05-2025\/","title":{"rendered":"\u2018Positive momentum\u2019 drives Balfour Beatty cash forecast towards \u00a31bn"},"content":{"rendered":"

Balfour Beatty expects cash to near \u00a31bn at the end of 2025, after reporting wins in key markets this year.<\/span><\/p>\n

The UK\u2019s biggest contractor said in a trading update this morning (8 May) that average net cash in 2025 is expected to reach between \u00a3900m and \u00a31bn, following a \u201cstrong\u201d performance in the year to date.<\/span><\/p>\n

In the first quarter of 2025, the firm tabled an average net cash balance of \u00a31.06bn, compared with an average of \u00a3766m over the course of 2024.<\/span><\/p>\n

In its annual results announcement in March,<\/span> Balfour Beatty<\/span><\/a> projected that its average net cash would reach around \u00a3800m in 2025.<\/span><\/p>\n

Since it published the full-year results, \u201cThe positive momentum in Balfour Beatty\u2019s key markets has continued,\u201d the contractor said in its latest announcement.<\/span><\/p>\n

Trading to date in 2025 \u201chas been in line with expectations\u201d, it added, and the board \u201ccontinues to expect an increase in profit from operations\u201d for the full year. The firm\u2019s operational profit totalled \u00a3248m in 2024.<\/span><\/p>\n

The contractor said its UK rail business had secured around \u00a3450m worth of new work in the first four months of this year, including track renewal with the Central Rail Systems Alliance, civil engineering jobs, and fleet supply and operation works for Network Rail.<\/span><\/p>\n

The trading update also mentioned contract wins at its US civils and buildings businesses.<\/span><\/p>\n

Balfour Beatty expects to complete a \u00a3125m share-buyback programme by the end of 2025. So far, it has bought back about \u00a346m worth of shares.<\/span><\/p>\n

\u201c[Balfour Beatty] remains committed to a selective bidding approach in the continued pursuit of a high-quality and low-risk forward-order book,\u201d it added.<\/span><\/p>\n

In an analyst\u2019s note this morning, investment bank Peel Hunt said it estimates Balfour Beatty will report a full-year pre-tax profit this year of \u00a3267m \u2013 up from \u00a3214m the year before \u2013 with only \u201cmodest upside risk\u201d.<\/span><\/p>\n

Peel Hunt also forecasts pre-tax profit of \u00a3308.4m and \u00a3321.6m in 2026 and 2027 respectively.<\/span><\/p>\n

Balfour Beatty\u2019s underlying revenue<\/span> surpassed \u00a310bn for the first time<\/span><\/a> in the year to 31 December 2024. Leo Quinn \u2013 who<\/span> will leave Balfour Beatty this year after 10 years<\/span><\/a> as its chief executive \u2013 said the results were evidence of \u201cfurther strong progress\u201d.<\/span><\/p>\n

Quinn will be succeeded by AtkinsR\u00e9alis chief operating officer Philip Hoare in September, but will remain at the contractor in an advisory capacity for several months during a transition period.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Balfour Beatty expects cash to near \u00a31bn at the end of 2025, after reporting wins in key markets this year. The UK\u2019s biggest contractor said in a trading update this morning (8 May) that average net cash in 2025 is expected to reach between \u00a3900m and \u00a31bn, following a \u201cstrong\u201d performance in the year to …<\/p>\n","protected":false},"author":90643,"featured_media":440224,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[527,552],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n