Balfour Beatty expects 20% rise in 2025 order book

Core Insights - Balfour Beatty anticipates a 20% increase in its order book for 2025, rising from £18.4bn ($24.54bn) at the end of 2024, primarily driven by the UK Construction sector and new power generation contracts worth over £3.5bn [1] Financial Performance - The company expects revenue for 2025 to exceed 2024 by more than 5%, supported by growth in UK energy and US buildings sectors [2] - Underlying profit from earnings-based businesses is projected to surpass last year's £252m [2] Profitability and Operations - Profit increases are mainly from UK Construction and Support Services, although lower profits from US Construction activities are noted [3] - The group anticipates infrastructure investment disposals to yield gains between £30m and £40m, with ongoing transactions [3] - In the UK, Balfour Beatty aims for a 3% profit from operations (PFO) margin, excluding around £10m in insurance recovery [3] Key Projects and Contracts - Significant infrastructure milestones include the completion of the Bromford tunnel, structural work at Hinkley Point C, and earthworks at the Net Zero Teesside site, with the Sizewell C nuclear installation adding approximately £3bn to the order book [4] - Notable contracts include being selected as Rolls-Royce's sole contractor for fissile construction and a £162m contract for the Dunard Centre in Edinburgh [5] US Market Performance - The US buildings business expects revenue growth close to 25% for 2025, with the order book projected to expand by over 10%, driven by substantial projects including $750m for correctional facilities and $400m for data centres [5] Asian Operations - The order book for Balfour Beatty's Asian operations remains stable, with ongoing projects such as the opening of phase one of Terminal 2 at Hong Kong International Airport and imminent completion of the Central Kowloon Route road tunnel [6] Shareholder Returns - The company plans to complete its 2025 share buyback program soon, having returned £189m to shareholders this year through dividends and repurchases [7]