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Balfour Beatty
(LSE:BBY)
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Rating:70Outperform
Price Target:
967.00 p
▲(9.89% Upside)
Action:Reiterated
Date:08/06/26
The score is driven primarily by strong recent cash generation and steady revenue growth, supporting overall financial durability. This is tempered by thin and pressured operating margins and a higher leverage profile versus 2022. Technically, the stock shows a clear uptrend with healthy (not overbought) momentum, while valuation and yield are only moderate.
Positive Factors
Cash Generation Strength
Sustained high operating and free cash flows provide durable internal funding for working capital, capex and investment without heavy reliance on new financing. This cash conversion supports resilience across project cycles and gives management flexibility to fund growth or service debt over the next several quarters.
Negative Factors
Thin Operating Margins
Very slim gross and operating margins leave limited buffer versus cost inflation, supply-chain shocks or project overruns. In a project-driven business, thin margins reduce capacity to absorb adverse contract outcomes and make profitable growth sensitive to execution and higher input costs over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation Strength
Sustained high operating and free cash flows provide durable internal funding for working capital, capex and investment without heavy reliance on new financing. This cash conversion supports resilience across project cycles and gives management flexibility to fund growth or service debt over the next several quarters.
Read all positive factors
Balfour Beatty (BBY) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£4.12B
Dividend Yield1.61%
Average Volume (3M)1.09M
Price to Earnings (P/E)16.5
Beta (1Y)1.05
Revenue Growth12.13%
EPS Growth47.64%
CountryUK
Employees26,000
SectorIndustrials
Sector Strength72
IndustryEngineering & Construction
Share Statistics
EPS (TTM)0.53
Shares Outstanding476,058,400
10 Day Avg. Volume695,080
30 Day Avg. Volume1,085,721
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)3.10
Price to Sales (P/S)0.37
P/FCF Ratio5.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,096.67Price Target Upside24.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.51
Revenue Forecast (FY)£11.31B
Balfour Beatty Business Overview & Revenue Model
Company Description
Balfour Beatty plc is an international group specializing in the financing, design, development, construction, and ongoing maintenance of critical infrastructure. The company operates globally, with significant activities in the United Kingdom, th...
How the Company Makes Money
Balfour Beatty generates revenue primarily by contracting to design, build, and manage infrastructure and construction projects for customers, and recognizing revenue as it performs work under those contracts. Its key revenue streams include: (1) ...
Balfour Beatty Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 17, 2027
Earnings Call Sentiment Neutral
The earnings call presented a strong performance in UK Construction and Support Services, with a record order book and increased shareholder returns. However, challenges in the U.S. Civils segment and losses in Infrastructure Investments tempered the overall positive outlook.Positive Updates
Record Order Book
Balfour Beatty achieved a record order book of GBP 19.5 billion, with a strong pipeline totaling GBP 20 billion, indicating significant future growth potential.
Negative Updates
U.S. Civils Losses
U.S. Civils experienced losses due to cost overruns and schedule delays in a joint venture highway project in Texas, impacting overall profitability.
Read all updates
Q2-2025 Updates
Positive
Negative
Record Order Book
Balfour Beatty achieved a record order book of GBP 19.5 billion, with a strong pipeline totaling GBP 20 billion, indicating significant future growth potential.
Read all positive updates
Company Guidance
During the call, Balfour Beatty's Group Chief Executive, Leo Quinn, provided guidance indicating a strong start to the fiscal year, with a record order book of GBP 19.5 billion and a pipeline of GBP 20 billion. He highlighted achieving a 3% margin in U.K. construction and significant growth in support services. The company anticipates a 10% revenue growth to GBP 5.2 billion and a 6% increase in the order book. Despite a 10% decrease in profit to GBP 73 million, the interim dividend increased by 11% to 4.2p per share. Average net cash rose to GBP 1.1 billion, and the business remains on track to meet full-year expectations with a focus on maintaining strong margins and shareholder returns.Balfour Beatty Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
61
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.95B | 9.49B | 8.23B | 7.99B | 7.63B | 7.20B |
| Gross Profit | 500.00M | 453.00M | 417.00M | 412.00M | 421.00M | 335.00M |
| EBITDA | 294.00M | 309.00M | 320.00M | 344.00M | 329.00M | 174.00M |
| Net Income | 259.00M | 263.00M | 178.00M | 197.00M | 288.00M | 140.00M |
Balance Sheet | ||||||
| Total Assets | 6.79B | 6.09B | 5.63B | 5.26B | 5.12B | 4.85B |
| Cash, Cash Equivalents and Short-Term Investments | 2.08B | 1.86B | 1.29B | 1.41B | 1.18B | 1.03B |
| Total Debt | 1.07B | 1.02B | 1.11B | 981.00M | 738.00M | 615.00M |
| Total Liabilities | 5.66B | 4.94B | 4.50B | 4.06B | 3.74B | 3.47B |
| Stockholders Equity | 1.12B | 1.14B | 1.12B | 1.20B | 1.38B | 1.37B |
Cash Flow | ||||||
| Free Cash Flow | 597.00M | 643.00M | 237.00M | 219.00M | 137.00M | 318.00M |
| Operating Cash Flow | 641.00M | 692.00M | 265.00M | 285.00M | 168.00M | 353.00M |
| Investing Cash Flow | 36.00M | 55.00M | 46.00M | 33.00M | 146.00M | 116.00M |
| Financing Cash Flow | -319.00M | -298.00M | -251.00M | -158.00M | -189.00M | -266.00M |
Balfour Beatty Technical Analysis
Neutral
880.00
Price Trends
874.19
Negative
848.35
Positive
787.79
Positive
Market Momentum
-1.32
Positive
46.87
Neutral
45.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BBY, the sentiment is Neutral. The current price of 880 is below the 20-day moving average (MA) of 885.15, above the 50-day MA of 874.19, and above the 200-day MA of 787.79, indicating a neutral trend. The MACD of -1.32 indicates Positive momentum. The RSI at 46.87 is Neutral, neither overbought nor oversold. The STOCH value of 45.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:BBY.
Balfour Beatty Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £598.67M | 15.78 | 14.73% | 1.87% | -6.49% | 22.41% | |
75 Outperform | £2.28B | 32.81 | 15.00% | 1.80% | 2.80% | -11.76% | |
72 Outperform | £594.88M | 16.72 | 30.23% | 3.36% | 0.53% | -8.91% | |
71 Outperform | £1.06B | 18.94 | 11.69% | 3.12% | 2.50% | 40.96% | |
70 Outperform | £4.12B | 16.51 | 22.88% | 1.61% | 12.13% | 47.64% | |
68 Neutral | £2.00B | 10.52 | 24.83% | 3.75% | 10.84% | 24.56% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
GB:BBY
Balfour Beatty
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Balfour Beatty Corporate Events
Regulatory Filings and Compliance
Balfour Beatty Updates Market on Total Voting Rights and Share Capital
Neutral
Aug 3, 2026
Balfour Beatty has confirmed its latest capital structure and voting rights position, stating that as of 31 July 2026 it has 492,848,584 issued ordinary shares of 50p each, of which 15,120,514 are held in treasury and therefore do not carry voting...
Stock BuybackRegulatory Filings and Compliance
Balfour Beatty Advances Share Buyback, Updates Voting Rights
Neutral
Aug 3, 2026
Balfour Beatty has continued executing its previously announced share buyback programme, repurchasing 455,423 ordinary shares of 50 pence each between 27 and 31 July 2026 through Merrill Lynch International. The company will hold these shares in t...
Business Operations and StrategyStock Buyback
Balfour Beatty boosts treasury stock as share buyback reaches 14.7 million shares
Positive
Jul 27, 2026
Balfour Beatty has continued to execute its previously announced share buyback programme, purchasing 452,462 ordinary shares between 20 July and 24 July 2026 through Merrill Lynch International. The shares have been placed into treasury, leaving 4...
Stock BuybackRegulatory Filings and Compliance
Balfour Beatty Advances Share Buyback, Updates Voting Rights
Positive
Jul 20, 2026
Balfour Beatty has continued to execute its previously announced share buyback programme, purchasing 457,778 ordinary shares between 13 and 17 July 2026 through Merrill Lynch International, and holding all repurchased shares in treasury. Following...
Stock BuybackRegulatory Filings and Compliance
Balfour Beatty Tightens Free Float with Ongoing Share Buyback
Positive
Jul 13, 2026
Balfour Beatty has continued executing its previously announced share buyback programme, repurchasing 430,279 ordinary shares between 6 and 10 July 2026 through Merrill Lynch International and holding them in treasury. This latest tranche brings t...
DividendsRegulatory Filings and Compliance
Balfour Beatty chair boosts shareholding via dividend reinvestment
Positive
Jul 8, 2026
Balfour Beatty has disclosed that its chair, Charles Allen, Lord Allen of Kensington, has increased his personal stake in the company by purchasing 1,218 ordinary shares through a dividend reinvestment, bringing his total holding to 111,049 shares...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Balfour Beatty Tightens Share Base with Ongoing Buyback Programme
Positive
Jul 6, 2026
Balfour Beatty, the international infrastructure group, has continued executing its previously announced share buyback programme, repurchasing 442,145 ordinary shares between 29 June and 3 July 2026 through Merrill Lynch International. These share...
Business Operations and StrategyExecutive/Board Changes
Balfour Beatty strengthens board with two US-based non-executive directors
Positive
Jul 6, 2026
Balfour Beatty has appointed Melody Meyer and Sandra (Sandy) Stash as non-executive directors and members of the Remuneration Committee, effective 13 July 2026, strengthening board oversight of major projects, safety and governance. Both bring ext...
Regulatory Filings and Compliance
Balfour Beatty Updates Market on Total Voting Rights and Share Capital
Neutral
Jul 1, 2026
Balfour Beatty has confirmed that as of 30 June 2026 its issued share capital consists of 492,848,584 ordinary shares of 50p each, of which 13,056,829 are held in treasury and carry no dividend or voting rights. This leaves a total of 479,791,755 ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Balfour Beatty Advances Share Buyback, Sets New Voting Rights Total
Positive
Jun 29, 2026
Balfour Beatty has continued to execute its share buyback programme, repurchasing 276,024 ordinary shares between 24 and 26 June 2026 through Merrill Lynch International, and holding them in treasury. This latest transaction leaves 479,966,157 ord...
Business Operations and Strategy
Balfour Beatty Wins £325m SSEN Contract for UK Grid Hub
Positive
Jun 25, 2026
Balfour Beatty has secured a two‑year, £325 million contract from Scottish and Southern Electricity Networks to deliver the Netherton Hub in Aberdeenshire, Scotland, under SSEN’s Accelerated Strategic Transmission Investment Offsh...
Executive/Board Changes
Balfour Beatty Grants Performance Share Awards to New CFO
Positive
Jun 23, 2026
Balfour Beatty has granted conditional share awards to its Chief Financial Officer, Myles Westcott, under its Performance Share Plan to compensate for remuneration forfeited on leaving his previous employer. The buy-out package comprises awards ov...
Business Operations and StrategyStock Buyback
Balfour Beatty Tightens Free Float with Ongoing Share Buyback
Positive
Jun 22, 2026
Balfour Beatty has continued its ongoing share buyback programme, repurchasing 809,772 ordinary shares between 15 and 19 June 2026 through Deutsche Bank’s London arm, Deutsche Numis. The newly acquired shares will be held in treasury, reduci...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Balfour Beatty Expands 2026 Share Buyback, Updates Voting Rights
Positive
Jun 15, 2026
Balfour Beatty has continued to execute its 2026 share buyback programme, repurchasing 935,317 ordinary shares between 8 and 12 June through Deutsche Numis and holding them in treasury. Following these transactions, the company has 481,051,953 ord...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Balfour Beatty Advances Share Buyback, Updates Voting Rights Count
Positive
Jun 8, 2026
Balfour Beatty, the international infrastructure group, has continued executing its previously announced share buyback programme, purchasing 930,053 ordinary shares between 1 and 5 June 2026 through Deutsche Numis. The repurchased shares will be h...
Business Operations and StrategyRegulatory Filings and Compliance
Balfour Beatty Ends U.S. Compliance Monitorship for Military Housing Unit
Positive
Jun 8, 2026
Balfour Beatty has announced the formal conclusion of the independent compliance monitorship imposed by the U.S. Department of Justice on its U.S. military housing subsidiary, Balfour Beatty Communities. During the monitorship, the business implem...
Regulatory Filings and Compliance
Balfour Beatty Confirms Updated Total Voting Rights and Share Capital
Neutral
Jun 1, 2026
Balfour Beatty has confirmed that as of 31 May 2026 its issued share capital consists of 492,848,584 ordinary shares, of which 9,931,261 are held in treasury and do not carry voting or dividend rights. This leaves a total of 482,917,323 voting rig...
Stock BuybackRegulatory Filings and Compliance
Balfour Beatty Reduces Free-Float with Further Share Buybacks
Positive
Jun 1, 2026
Balfour Beatty has continued to execute its previously announced share buyback programme, repurchasing 725,000 ordinary shares between 26 and 29 May 2026 through Deutsche Numis, and holding them in treasury. Following these transactions, the compa...
Stock BuybackRegulatory Filings and Compliance
Balfour Beatty Tightens Share Capital with Further Buybacks
Positive
May 26, 2026
Balfour Beatty has continued executing its expanded share buyback programme, repurchasing 862,885 ordinary shares between 18 and 22 May 2026 through Deutsche Numis and holding them in treasury. Following these transactions, the company has 483,642...
Business Operations and StrategyStock Buyback
Balfour Beatty Tightens Share Base with Further Buybacks
Positive
May 18, 2026
Balfour Beatty has continued to execute its previously announced share buyback programme, repurchasing 980,000 ordinary shares between 11 and 15 May 2026 through Deutsche Numis for holding in treasury. Following these transactions, the companyR...
Stock BuybackRegulatory Filings and Compliance
Balfour Beatty Tightens Share Base with Ongoing Buyback
Positive
May 11, 2026
Balfour Beatty has continued its ongoing share buyback programme, repurchasing 769,074 ordinary shares between 5 and 8 May 2026 through Deutsche Bank’s Deutsche Numis unit and holding them in treasury. Following these transactions, the compa...
Stock BuybackDividendsShareholder Meetings
Balfour Beatty shareholders back dividend and renew board authorities at AGM
Positive
May 7, 2026
Balfour Beatty said shareholders approved all but one resolution at its 7 May 2026 annual general meeting, with the previously flagged withdrawal of a director re‑election motion the only exception. Investors backed the receipt of 2025 accou...
Business Operations and StrategyStock BuybackFinancial DisclosuresShareholder Meetings
Balfour Beatty Reaffirms 2026 Outlook as Order Wins and Cash Strengthen Position
Positive
May 7, 2026
Balfour Beatty reported a strong start to 2026 ahead of its AGM, reaffirming guidance for high single‑digit profit growth from its earnings‑based businesses and highlighting that its balanced contract mix is helping shield it from macr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.