Slides
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Balfour Beatty 2026 half year results presentation 12 August 2026 Hinkley Point C , UK
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Philip Hoare Group Chief Executive Broward County Convention Center, Florida, US
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2 2026 outlook Full year slightly ahead of prior expectations; £200 million share buyback on track Momentum Substantial order book providing strong visibility; well positioned in growth markets First half results Profitable growth and strong cash performance; conclusion of monitorship Strong first half performance delivering profitable growth 2 2.9% PFO margin from earnings-based businesses £23 billion order book c.£267 million 2026 shareholder returns * HY 2025: 2.2% *
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3 Well positioned in chosen growth markets UK Energy UK TransportUK Defence US Buildings Power Transmission & Distribution Proven civil nuclear construction expertise with active delivery on the UK’s flagship projects – Hinkley Point C and Sizewell C Power Generation Strong track record and existing footprint in complex, high security and nuclear environments Market-leading road, rail and aviation capability, from major construction through to long-term asset maintenance Well positioned in strong growth states and sectors, with portfolio weighted toward institutional, public sector and technology-driven clients UK’s largest power workforce, with end-to-end capabilities including design, multi-disciplinary delivery and steel fabrication
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4 2025 2026 2027 2028 2029 2030 UK power transmission market Power revenue: 2025 Target market: 2025-30 Source: Internal estimates 25% estimated 2025 market share First half momentum Awarded Netherton Hub £325 million civils work scheme for SSEN Order book £2.1 billion Revenue vs H1 2025 24% growth Further pipeline £6-8 billion UK Power Transmission: further wins in growing market Awarded Bramford to Twinstead substation £121 million 400kV substation for National Grid Secured National Grid framework position Electricity Transmission Partnership framework to deliver major overhead line upgrades
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5 UK Defence: differentiated in well-funded growth market Our differentiators UK domiciled Balance sheet strength Extensive capability Complex nuclear experience Security clearance Ringfenced & secure IT Nuclear submarine HMS Vanguard (Source: MOD) Larger market | Improved policy environment | Momentum building MOD real spend 2029/30 vs 2023/24 +27% c.£15 billion addressable market opportunity to 2030 c.£1.5 billion of work currently in delivery Strong track record Defence Investment Plan: commitment for defence spend to reach 3.5% of GDP by 2035 Defence as a UK growth engine: turning national security spending into a direct driver of economic productivity UK capability prioritised: Government priorities increasingly favour UK capability, long-term industrial partnerships and deliverability Speed of delivery: procurement reform supports faster mobilisation of major programmes
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6 US Construction: revenue growth and positive outlook Growing market: $140 billion construction market (2026 – 2029)* Strong track record and multidisciplinary experience: currently delivering a diverse range of projects at seven airports H1 progress: $361 million order to deliver runway package at Raleigh Durham airport in North Carolina * Source: Internal estimates Growing market: $250 billion construction market (2026 – 2029)* Strong track record and longstanding customers: delivered c.80 data centres in Northwest over twenty years H1 progress: $350 million orders across Northwest and Virginia; c.$1 billion further work awarded * Source: FMI 2026 North American engineering and construction industry overview: Q1 2026 Data centresAviation Targeting growing sectors which align to Group expertise Organic growth strategy driven by Buildings expansion o Further revenue growth delivered: up 19% vs HY 2025 o Leveraging existing customer relationships and geographic footprint o Revenue weighted 91% buildings vs 9% civils Balfour Beatty’s US footprint
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Myles Westcott Chief Financial Officer M25 Junction 10, UK
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8 * before non-underlying items ≠ excluding Infrastructure Investments (non-recourse) net borrowings and lease liabilities Headline numbers: strong first half progress £m (unless otherwise stated) HY 2026 HY 2025 Variance Group revenue 5,563 5,150 8% Profit from earnings-based businesses* 153 108 42% Profit from operations* 119 77 55% Profit for the period* 105 73 44% Basic earnings per share* 21.7p 14.4p 51% Dividends per share 4.7p 4.2p 12% HY 2026 FY 2025 Order book £22.9bn £22.7bn 1% Directors’ valuation of Investments portfolio 1,101 1,069 3% Period end net cash≠ 1,708 1,446 18% Average net cash≠ 1,616 1,212 33%
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9 Construction Services: margin improvement £m HY 2026 HY 2025 Revenue PFO* PFO % Revenue PFO* PFO % UK 1,569 54 3.4% 1,563 56 3.6% US 2,475 22 0.9% 2,087 (11) (0.5%) Gammon 495 11 2.2% 547 17 3.1% Total 4,539 87 1.9% 4,197 62 1.5% o UK: delivered 3.4% PFO margin, demonstrating strong progress vs prior year ̶ HY 2025: 2.9% margin when excluding £10 million one-off credit o US: improved performance driven by profitable growth in Buildings and reduced Civils losses o Gammon: lower PFO due to timing of commercial close-outs * before non-underlying items
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10 Support Services: Power momentum driving PFO growth £m HY 2026 HY 2025 Revenue Utilities 366 295 Transportation 361 367 Total 727 662 Profit from operations* 66 46 PFO %* 9.1% 6.9% o Profitable revenues underpinned by long-term frameworks o 10% revenue growth driven by increased Power T&D activity o Profit growth driven by improved margin % in power and transportation and a change in the mix of work delivered o PFO expected to be more evenly weighted between the first and second half than in prior years * before non-underlying items
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11 £23 billion order book maintained o UK Construction: now includes £325 million Netherton Hub contract for SSEN o 85% of UK Construction orders are target cost or cost-plus o US Construction: small decrease largely driven by timing of Civils orders o Gammon: growth driven by Northern Metropolis and buildings orders o Support Services: Warwickshire road maintenance contract included o Significant further pipeline of awarded but not contracted work 8.9 7.8 2.0 4.0 8.9 7.7 2.3 4.0 UK Construction US Construction Gammon Support Services FY 2025 HY 2026 £22.9 billion order book
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12 Infrastructure Investments: monitorship concluded in H1 o Operating loss largely driven by monitor and legal costs in US military housing ̶ Monitorship concluded in June o £3 million gain on disposal of a US student accommodation asset and a US multifamily housing asset £m HY 2026 HY 2025 Pre-disposals operating loss* (12) (12) Gain on disposals 3 2 Investments operating loss* (9) (10) Subordinated debt interest receivable 11 11 Infrastructure concessions’ net interest (6) (7) Investments pre-tax loss* (4) (6) * before non-underlying items
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13 £1.1 billion Infrastructure Investments Directors’ valuation £1,069m £1,101m £15m £(12)m £36m £(2)m£(17)m £12m Unwind of discount FY 2025 Equity invested Distributions received HY 2026Operational performance Sales proceeds Foreign exchange
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14 Further strong cash performance in first half £1,446m £1,708m Net cash FY 2025 Net cash HY 2026 Operating cash flows Dividends from JVAs Capital expenditure Lease payments OtherWorking capital cash flows Pension deficit payments* Share buybacks+ ^ includes £12 million of disposals * includes £1 million of regular funding + includes £1 million of costs Net equity invested^ £151m £259m £(32)m £(41)m £23m £(18)m £(103)m HY 2026 average net cash £1,616 million £(3)m £26m
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1515 2026 outlook Increased guidance for earnings-based businesses, net finance income and average net cash Updated guidance Prior guidance High single-digit PFO growth from earnings-based businesses Infrastructure Investments: – small PFO loss prior to disposals – gain on disposals in the range of £5 - 15 million Net finance income in range of £28 - 32 million P&L tax charge close to statutory rates Average net cash in range of £1.3 - £1.5 billion Low double digit PFO growth from earnings-based businesses – slightly ahead of prior guidance Infrastructure Investments: – small PFO loss prior to disposals – gain on disposals in the range of £5 - 15 million Net finance income in range of £35 - 40 million P&L tax charge close to statutory rates Average net cash in range of £1.5 - £1.7 billion
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Grand Hyatt Miami Beach, Florida, US Philip Hoare Group Chief Executive
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17 Strong and diversified Group In our growth markets £1.1 billion Investments portfolio£23 billion high-quality & diversified order book Growth markets UK Energy UK Defence UK Transport US Buildings Profitable growth framework End-to-end capability Across our geographiesCore geographies by revenue UK US Asia 44% 47% 9% Design & Engineering Programme Management Construction Management Construction Operations & Maintenance Project Finance
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18 Profitable growth framework: long-term value creation Improve margins Shape our portfolio Drive operational excellence Advance our people strategy Invest in what matters Explore adjacencies and innovation Accelerate profitable US growth Accelerate profitable growth in key UK markets Deepen customer relationships Evolve Strengthen the core Energise Accelerate profitable growth Explore Shape what’s next Zero Harm Sustainable Customer focused Employer of choice Profitable growth Long-term value creation
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19 Six months in: building momentum across the Group 19 Energise ExploreEvolve Long-term value creation Accelerate profitable growth Shape what’s nextStrengthen our core Group-wide customer account management programme Accelerated US growth plan focused on expanding core business Innovation investment and productivity pilots Assessing priority UK and US adjacencies to strengthen market position Margin improvement plans progressing UK operations focused around Energy, Transport and Defence market verticals Investment in leadership capability One Balfour Beatty culture
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20 A powerful platform for growth o Strong first half performance with further momentum into second half and beyond o Significant and high-quality order book o Well positioned in growing markets, with increasing demand for the Group’s expertise o Disciplined governance processes o Robust balance sheet and consistent capital allocation framework o Evolve, Energise, Explore: unlocking the next chapter of growth Confidence in creating further long-term value and sustainable shareholder returns
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Appendix Marine Corps Recruit Depot Mess Hall, California, US
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22 Disclaimer and important information This presentation, including information incorporated by reference in it, contains statements that are or may be forward-looking statements which are prospective in nature with respect to Balfour Beatty’s business, financial condition, operations and prospects. These forward-looking statements may be identified by the use of forward-looking terminology or the negative thereof such as “expects” or “does not expect”, “anticipates” or “does not anticipate”, “targets”, “aims”, “continues”, “is subject to”, “assumes”, “budget”, “scheduled”, “estimates”, “risks”, “positioned”, “forecasts” “intends”, “hopes”, “believes” or variations of such words or comparable terminology and phrases or statements that certain actions, events or results “may”, “could”, “should”, “shall”, “would”, “might” or “will” be taken, occur or be achieved. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Forward-looking statements are not based on historical facts, but rather on current predictions, expectations, beliefs, opinions, plans, objectives, goals, intentions and projections about future events, results of operations, prospects, financial condition and discussions of strategy. By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These events and circumstances include changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates, future business combinations or disposals, and any epidemic, pandemic or disease outbreak. If any one or more of these risks or uncertainties materialises or if any one or more of the assumptions prove incorrect, actual results may differ materially from those expected, estimated or projected. Such forward looking statements should therefore be construed in the light of such factors. As a result, you are cautioned not to place any undue reliance on such forward-looking statements. No representation or warranty is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved, and projections are not guarantees of future performance. Forward-looking statements speak only as at the date of this presentation and, other than in accordance with its legal or regulatory obligations, Balfour Beatty expressly disclaims any obligations or undertaking to update, or revise, any forward-looking statements in this presentation. No statement in this presentation is intended as a profit forecast or profit estimate and no statement in this presentation should be interpreted to mean that Balfour Beatty’s earnings per share for the current or future financial years would necessarily match or exceed the historical published earnings per share for Balfour Beatty. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any securities. The making of this presentation does not constitute any advice or recommendation regarding any securities.
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23 Balfour Beatty investment proposition Attractive future shareholder returns underpinned by sustained growth opportunities and financial strength Over £1.2 billion of shareholder returns 2021 – 2026 Dividends 2021 2022 2023 2024 2025 2026 Share buybacks £179m £208m £208m £161m £189m c.£267m High quality and de-risked portfolio Expert capability Sustained growth drivers Responsible goals Financial strength o Diverse portfolio across UK, US & Asia o £23 billion order book o Robust governance and disciplined bidding o Track record of complex infrastructure delivery o Unique end-to-end capabilities o Industry leading employee engagement o Governments driving growth through infrastructure o Capabilities aligned to growth markets o UK demand outweighing supply o Evolved sustainability strategy launched in 2024 o Net zero carbon emissions targets verified by SBTi o Ambitious community targets o Strong cash generation o £1.1 billion Investments portfolio o Sector leading balance sheet
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24 HY 2025 HY 2026 HY 2025 HY 2026 HY 2025 HY 2026 HY 2025 HY 2026 Order book by phase Total HY 2026 £22.9bn Total HY 2025 £19.5bn £4.5bn US Construction Gammon UK Construction US Construction Gammon Support Services 0-6 months 31+ months7-18 months £6.0bn £6.4bn £5.6bn £7.8bn £5.2bn 19-30 months £3.5bn £3.4bn
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25 US Construction order book by sector $10.2 billion Diversified order book
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26 Underlying profit from operations £m HY 2026* HY 2025* UK Construction 54 56 US Construction 22 (11) Gammon 11 17 Construction Services 87 62 Support Services 66 46 Earnings-based businesses 153 108 Infrastructure Investments Pre-disposals operating loss (12) (12) Gain on disposals 3 2 Corporate activities (25) (21) Total 119 77 * before non-underlying items
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27 £m Group balance sheet £m HY 2026 FY 2025 Goodwill and intangible assets 1,080 1,075 Current working capital (1,906) (1,639) Net cash (excluding infrastructure concessions) 1,708 1,446 Investments in joint ventures and associates 356 363 PPP financial assets 17 18 Infrastructure concessions – non-recourse net debt (487) (411) Net retirement benefit assets / (liabilities) 13 (48) Net deferred tax assets 24 46 Other assets and liabilities 324 302 Net assets 1,129 1,152
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28 Cash flow £m HY 2026 HY 2025 Working capital flows Inventories 18 4 Net contract assets 74 97 Trade and other receivables (274) (169) Trade and other payables 405 416 Provisions 36 (58) Working capital inflow^ 259 290 ^ excluding impact of foreign exchange and disposals * excluding Infrastructure Investments (non -recourse) net borrowings ≠ includes £1 million (2025: £1 million) of regular funding + includes £1 million of costs (2025: £nil) £m HY 2026 HY 2025 Operating cash flows before working capital movements and pension deficit payments 151 161 Working capital inflow^ 259 290 Pension deficit payments≠ (32) (8) Cash from operations 378 443 Dividends from joint ventures & associates 23 28 Capital expenditure (18) (23) Lease payments (inc. interest paid) (41) (37) Share buybacks+ (103) (65) Infrastructure Investments Disposal proceeds 12 2 New investments (15) (20) Other 26 (34) Net cash movement 262 294 Opening net cash* 1,446 943 Closing net cash* 1,708 1,237 Average net cash* 1,616 1,102
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29 Working capital (9.9)% (12.1)% (15.6)% (15.3)% (15.4)% (14.9)% (17.3)% (19.1)% (24)% (20)% (16)% (12)% (8)% (4)% 0 £(2,000)m £(1,750)m £(1,500)m £(1,250)m £(1,000)m £(750)m £(500)m £(250)m £0m Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 Dec 24 Dec 25 Jun 26 Period end working capital Period end working capital as % revenue Including non-underlying items
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30 £54m £133m £89m £231m £223m £69m £2m £(48)m £13m 2018 2019 2020 2021 2022 2023 2024 2025 HY 2026 Pensions: balance sheet movement Net actuarial gains & other Employer contributions £32m £29m
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31 £m HY 2026 HY 2025 Subordinated debt interest receivable 11 Interest on infrastructure concession assets 1 Interest on non-recourse borrowings (7) 5 6 Net finance income – pension schemes - 1 Other interest receivable 29 Other interest payable (4) 25 22 US private placement (5) (5) Interest on lease liabilities (5) (4) Impairment of loans and accrued interest relating to joint ventures and associates - (2) Net finance income 20 18 Net finance income
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32 Borrowing repayment profile 26 60 19 32 19 £0m £40m £80m 2027 2029 2031 2032 2036 US Private Placement notes