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Highlights

  • Berenberg reiterates “Buy” with a price target of AUD 13.81 (GBP 660), implying nearly 15% upside.

  • Underlying revenue rose 10% YoY to £5.15 billion (AUD 9.8 billion) in latest half, led by UK Construction, US Construction, and Support Services.

  • Order book increased to £19.5 billion (AUD 37 billion) from £18.4 billion, with a further £20 billion (AUD 38 billion) pipeline of long-term opportunities.

  • Underlying profit from operations was £77 million (AUD 147 million), supported by UK Construction and Support Services, partly offset by US Construction challenges.

  • Interim dividend increased 11% to 4.2 pence per share, with £188 million returned to shareholders in 2025 to date.

Balfour Beatty PLC (LSE:BALF), a leading construction and engineering group, has drawn positive attention from analysts likely on the basis of the recently released half-year results for the period ended 27 June 2025. Notably, Berenberg reaffirmed its “Buy” rating.

Analyst Ratings and Targets

Berenberg, led by analyst Robert Chantry, has maintained its Buy recommendation on Balfour Beatty, setting a target price of AUD 13.81 (GBP 660). The firm’s outlook suggests a significant 14.98% upside potential compared with the current trading level of GBP 574 per share.

Company Performance in Latest Half

Balfour Beatty’s first-half results showed steady progress across its earnings-based businesses. Underlying revenue rose 10% year-on-year to £5.15 billion (AUD 9.8 billion), supported by growth in UK Construction, US Construction, and Support Services. The group reported underlying profit from operations of £77 million (AUD 147 million), in line with the prior year, with contributions from UK Construction and Support Services offsetting losses in the US business.

The order book strengthened to £19.5 billion (AUD 37 billion), compared to £18.4 billion (AUD 35 billion) in FY2024, providing visibility and underpinning expectations of further growth in 2026. Additionally, the group highlighted a £20 billion (AUD 38 billion) pipeline of long-term opportunities, including participation in Sizewell C nuclear development and major power transmission schemes.

From a financial perspective, the balance sheet remains robust with average net cash of £1.1 billion (AUD 2.1 billion). Shareholder returns have also grown, with the interim dividend up 11% to 4.2 pence per share, alongside £188 million in total returns delivered in 2025 so far.