Labour’s net-zero drive helped boost Balfour Beatty’s bottom line last year, new results show.
The group’s order book rose to a record £22.7billion as it unveiled its fifth consecutive year of earnings growth.
The construction and infrastructure group said it was ‘heavily involved’ in projects such as the new nuclear power stations at Hinkley Point C and Sizewell C and the Net Zero Teesside power station with carbon capture.
And it praised the Government’s 10-year infrastructure plan saying it brings ‘improved certainty and clarity for the industry’, as other housebuilders criticise Labour for more bureaucracy.
It said: ‘The essential long-term upgrade to the UK’s energy infrastructure is underway and the volume of work required to meet the UK’s net zero ambitions is vast.’
It noted that it had added two of its long-term power generation targets to its order book during the year, with a combined value of over £3.5billion.
Balfour Beatty’s share price jumped 8.12 per cent or 57.00p to 759.00p on Wednesday morning, having surged 75 per cent in the past year.
Shift: Shares in Balfour Beatty have risen by 75% in the past year
In the year to 31 December 2025, Balfour Beatty’s underlying profit from operations in earnings-based businesses jumped 16 per cent to £293million on revenue up 8 per cent to £10.8billion, driven by its UK power transmission and US buildings businesses.
In the UK, it surpassed its 3 per cent margin target a year ahead of schedule and said there is a ‘significant further pipeline’ for power transmission schemes.
Balfour Beatty also flagged the government’s stance on defence as a driver of growth as an opportunity for new projects, having secured contracts with both the Defence Infrastructure Organisation and at Defence Nuclear Enterprise sites.
In 2024, Rolls-Royce appointed Balfour Beatty to lead the expansion of the defence company’s submarines site in Derby.
Philip Hoare, Balfour Beatty’s chief executive, said: ‘In 2025, the Group delivered on expectations with further earnings growth, fuelled by strong operational performance and momentum in chosen growth markets, where our end-to-end expertise, proven delivery and long-standing customer relationships continue to differentiate Balfour Beatty.’
The group said this year would see a positive outlook for its four growth markets: UK energy transition and security, UK transport, UK defence and US buildings.
Mark Crouch, a market analyst at eToro, said: ‘Balfour Beatty’s full year results suggest a contractor very much in its stride.
‘In a sector where margins can evaporate at the first hint of trouble, the infrastructure and construction giant has managed to turn steady revenue growth of 8 per cent into a 16 per cent jump in underlying operating profit.
Balfour’s bread-and-butter earnings businesses, notably UK power transmission and US buildings, are now firing on all cylinders.
‘There were, inevitably, a few bumps in the road. A troublesome US Civils project and a dip in Infrastructure Investments profit show that construction remains a game where one misstep can be costly.’
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