Balfour Beatty 2022 Trading Update


Balfour Beatty has published its trading update to 8 December 2022. 

graph of balfour beatty trading update
by Rory ButlerDecember 8, 2022


  • Order Book: +5% FY2021 £16.1 billion (favourable FE; de-risked portfolio) 
  • Revenue: +5% FY2021 £8.3 billion (favourable FE) 
  • Cash: FY average monthly net £800 million 

For Profit for the Year Balfour reported ‘ahead of market expectations’, due to + Net Int Inc and deferred tax assets significantly reducing 2022 tax charge. 



  • Both SCAPE Civil Engineering frameworks: £3.25 billion and £750 million, over four years with optional two-year extension 


  • Maryland federal building: $700 million 
  • Florida convention centre: $400 million 
  • Texas multi-use development: $300 million 
  • Oregon data centres: $300 million 


Support services  

  • Buckinghamshire Council: £176 million (highways over eight years) 
  • East Sussex County Council: £297 million (highways over seven years) 

Infrastructure investments 

  • £90 million – disposal of five assets   
  • £65 million – profit on disposal 
  • £30 million – in new projects 

Capital allocation framework 

  • +£385 million to shareholders (via share buybacks/dividends since 2021) 
  • includes +£200 million in 2022 (similar cash returns expected in 2023) 

Interest and Tax 

Balfour expects Net Int Inc FY2022 (due to higher Int Rates; same in 2023). 

Further deferred tax assets relating to prior UK tax losses expected to be recognised in Q3/4 2022, resulting in small tax charge. 

In future, effective tax closer to statutory rates; UK cash tax payments below statutory in medium term as losses are utilised. 

“We continue to expect a strong full year operational and financial performance,” said Leo Quinn, Balfour Beatty Group Chief Executive. “Looking to 2023 and beyond, our improved, de-risked and diversified order book gives us confidence that we will continue to make progress in delivering profitable managed growth.” 

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