Balfour Beatty: Investors cash in as orders swell
Balfour Beatty has hiked its dividend after the construction giant reported a bumper year.
On Wednesday, the London-listed firm recommended a final dividend per share of 12.5p, up nine per cent from last year’s 11.5p. Basic earnings per share also rose from 34.2p to 43.6p.
Balfour Beatty is also in the process of a multi-year share buyback programme and announced its intention to repurchase £125m of shares in 2025.
The net result means shareholders can expect around £188m in returns in 2025, up from £161m in 2024.
Balfour Beatty announced the cash returns as its order book swelled to £18.4bn in 2024 and its annual pre-tax profit jumped from £214m to £289m.
The contractor currently holds major contracts at HS2’s Old Oak Common section and Hinkley Point C, and is also working on a major upgrade between Junction 10 on the M25 and the A3.
On an underlying basis, annual revenue levelled out at £10bn.
“We once again delivered managed profitable growth from our earnings-based businesses and healthy cash generation, while also increasing our high-quality order book,” chief executive Leo Quinn, who is due to step down later this year, said in a statement.
“The Board continues to have confidence in Balfour Beatty’s ongoing ability to deliver sustainable cash generation for significant shareholder returns, as evidenced by our announcement of increased dividends and share buybacks for 2025.
Quinn added: “Balfour Beatty is well positioned to continue its disciplined performance in the medium term, with strong order book visibility, attractive opportunities in our growth markets of UK energy, transport and defence, and US buildings, and our expert, highly engaged workforce positioning the Group for ongoing success.”