BALFOUR BEATTY (BBY) – Construction
| Price: 712p +0.4% | P/E: 17.2x |
| Market Cap: £3.5bn | Yield: 1.9% |
International infrastructure group Balfour Beatty posted a positive trading update for the three months to 4 December and confirmed it would meet its 2025 targets of 5% revenue growth and underlying profit ahead of 2024.
UK construction services continue to perform ‘strongly’ thanks to projects like HS2 Area North, Hinckley Point C and the Teesside Net Zero carbon capture zone.
The US is also performing well, with revenue expected to rise as much as 25% this year and the order book growing by 10% to around $10 billion.
The 2025 buyback finishes next week, but the firm unveiled a new programme starting in January 2026 which should continue to support the shares.
Our View
As we’ve said before, infrastructure is where the action is, not housebuilding, and today’s update just reinforces our view.
However, with the shares already up over 50% year-to-date and more than 100% since we called the stock up in 2024, it might take more than in-line results to keep the momentum going, so don’t be surprised if it takes a breather here.
Read the press release here: https://www.balfourbeatty.com/investors/
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