Balfour Beatty is expected to deliver earnings growth in 2024, with a boost in order book driven by a strong performance in UK energy projects, in its latest trading update.
Ahead of its 2024 annual results, revenue is expected to grow two per cent ahead of 2023 with £9.6 billion.
The group attributes this expected revenue increase due to the growth in support services and its joint venture Gammon.
Meanwhile, 2024 pre-tax profit is expected to be ahead of the year prior (FY2023: £205 million) and ahead of market expectations (£209 million).
The group’s orderbook is also expected to grow by more than five per cent in 2024 (FY2023: £16.5 billion), driven by UK energy projects and US buildings.
The Group said market dynamics have allowed the Group to be more selective in the work it undertakes.
It claimed operational delivery at the Group’s current largest UK projects, HS2 contracts for and the new nuclear power station at Hinkley Point C, “continues to progress well”.
In November, Balfour Beatty signed a two year extension to its existing four year term as sole contractor to both of the SCAPE Civil Engineering frameworks, which will now run until November 2028.
Balfour also secured several grid upgrades and expansion in England and Scotland over the last year, including £690 million grid expansion, to supply some of the remotest parts of Scotland.
Leo Quinn, Balfour Beatty Group Chief Executive, said: “In 2024, the Group has once again shown the benefit of the geographical and operational diversity of our portfolio, delivering an encouraging overall performance.
“As a result, we are on track to deliver earnings growth in 2024.”
Balfour is also delivering £160 million to shareholders in 2024 through share buybacks and dividends.
This will take the Group’s shareholder distributions to over £750 million since the launch of its capital allocation framework in 2021.
Quinn continued: “We are pleased to confirm our fifth successive year of share buybacks in 2025, as our large orderbook, unique capabilities and balance sheet, provide a strong platform for continuing future shareholder returns.”
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