Slide 1: 2024 full year results presentation
2024 full year results presentation 12 March 2025 Image: Hinkley Point C, UK
Slide 2: Leo Quinn, Group Chief Executive
Leo Quinn Group Chief Executive Image: Port Ann to Crossaig, UK
Slide 3: Strong Group performance
Strong Group performance Consistent 2024 delivered Outlook for shareholder profitable growth profitable growth returns 7% profit increase from £18.4 billion Increased dividend earnings-based high-quality and fifth annual businesses order book share buyback Increased net cash Further growth in earnin
Slide 4: Ten years of cultural transformation
Ten years of cultural transformation Group employee engagement score (%) Group Lost Time Injury Rate & safety observations (000s) 0.3 Observations 500 85 400 0.2 75 300 84 0.24 65 0.1 200 0.09 60 55 0 100 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 5: Consistent performance
Consistent performance Earnings-based businesses PFO and margin Dividends and share buybacks (£m) PFO (£m) PFO margin 300 2.7% 3% Dividends Share buybacks c. £944m 200 2% shareholder 252 1% returns 100 0% 2021-25 0 -1% 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 150 -100 -2% 150 150 150 -200 -
Slide 6: Phil Harrison, Chief Financial Officer
Phil Harrison Chief Financial Officer Image: Del Mar Heights School, California, US
Slide 7: Headline numbers: Growth from earnings-based businesses
Headline numbers: Growth from earnings-based businesses £m (unless otherwise stated) 2024 2023 Variance Group revenue 10,015 9,595 4% Profit from earnings-based businesses* 252 236 7% Profit from operations* 248 228 9% Profit for the year* 227 205 11% Basic earnings per share* 43.6p 37.3p 17% Divide
Slide 8: Construction Services: UK margin improvement
Construction Services: UK margin improvement £m 2024 2023 Revenue PFO* PFO % Revenue PFO* PFO % > Strong growth in UK Construction UK 3,011 81 2.7% 3,027 69 2.3% profit, with further progress made on path to targeted 3% PFO margin US 3,638 40 1.1% 3,697 51 1.4% > Solid US Buildings performance, with
Slide 9: Support Services: Higher volumes driving PFO growth
Support Services: Higher volumes driving PFO growth £m 2024 2023 Revenue > Profitable recurring revenues Utilities 385 326 underpinned by long-term frameworks Transportation 825 680 > 20% revenue growth driven by: Total 1,210 1,006 ‒ Higher road maintenance volumes, with a first full year Profit fro
Slide 10: Higher order book driven by progress in growth markets
Higher order book driven by progress in growth markets £18.4 billion order book > Small increase in UK Construction order book, with 79% of orders 7.1 target cost or cost plus (2023: 82%) 2023* 2024 6.1 6.2 > Strong progress in US Construction, 5.7 with order book growth in four of five Buildings di
Slide 11: Infrastructure Investments: Disposal target exceeded
Infrastructure Investments: Disposal target exceeded £m 2024 2023 Pre-disposals operating (loss) / profit* (8) 5 > Pre-disposal loss due to: Gain on disposals 43 26 ‒ Write-off of capitalised bidding Investments (loss) / profit* 35 31 costs on UK student accommodation project Subordinated debt inter
Slide 12: Directors' valuation of Investments portfolio
Directors’ valuation of Investments portfolio £28m £81m £12m £(2)m £(43)m £(34)m £1,212m £1,254m 2023 Equity Sales Distributions Unwind of Operational Foreign 2024 invested proceeds received discount performance exchange Directors’ valuation increased 3% 11
Slide 13: Infrastructure Investments: Continued cash returns
Infrastructure Investments: Continued cash returns Investments portfolio performance: 2021 – 2024 (£m) Indicative cash yield prior to disposals: 2021 – 2045 (£m) 150 100 50 2021 - 2024 Actual Forecast 0 2021 2025 2029 2033 2037 2041 2045 Focus areas and current activity > Long-term investment contin
Slide 14: Non-underlying items
Non-underlying items £m 2024 2023 UK Building Safety Act provision (83) - State Highway 161 legal provision (52) - Insurance recovery on a development in London 43 (12) Net release of warranty provisions relating to Rail Germany 21 - Amortisation of acquired intangible assets (4) (5) Pre-tax total (
Slide 15: Increased cash following working capital inflow
Increased cash following working capital inflow £71m £15m £99m £208m £(30)m £(66)m £(28)m £(162)m £(6)m £943m £842m Net cash Operating Working Dividends Net Pension Lease Capital Shareholder Other Net cash 2023 cash flows capital from JVAs disposal deficit payments expenditure returns + 2024 cash fl
Slide 16: Consistent multi-year capital allocation framework
Consistent multi-year capital allocation framework Continued Active realisation Strong but efficient Sustainable ordinary Additional cash investment in of the Investments balance sheet dividend (target 40% returns via share organic growth portfolio payout ratio^) buybacks opportunities £28 million i
Slide 17: 2025 outlook
2025 outlook > Continued profit growth from earnings-based businesses in 2025 > Gain on Investments disposals expected in the range of £20 - 30 million > Net finance income of around £25 million > P&L tax charge forecast close to statutory rates (UK: 25%, US: 26%) > Average net cash around £800 mill
Slide 18: Leo Quinn, Group Chief Executive
Leo Quinn Group Chief Executive Image: Cedar Hill Library, Texas, US
Slide 19: Geographically and operationally diversified Group
Geographically and operationally diversified Group £18.4 billion order book £1.3 billion* Investments portfolio £1.1 billion net cash yield 2015-2024 US Construction UK Construction 38% 34% 58% 42% 10% 18% Gammon Support Services * Directors’ valuation Strong momentum with large and high-quality ord
Slide 20: Positive 2025 and 2026 outlook
Positive 2025 and 2026 outlook Improved order book coverage* High quality UK Construction order book 2023 order book 2024 order book Fixed – Cost Plus Two Stage 2025 2025 88% Fixed – 86% 87% 20% 13% 2025 One Stage 76% 70% 71% 2025 2026 8% 59% £6.2bn 58% 2026 55% 2026 48% 49% 46% 2026 37% 39% 35% 34%
Slide 21: Strategic growth markets
Strategic growth markets Growth markets Growth drivers UK Energy Power Transmission > Expansion underway: Revenue to double by 2027 (vs 2023), with opportunity to go further and Distribution Power > Sizewell C and Carbon Capture projects to drive strong growth Generation UK Defence > Market opportun
Slide 22: UK power transmission & distribution
Growth market UK power transmission & distribution Early contractor work on c. £4bn Scotland opportunity Market dynamics Key: > Capacity: increased volumes resulting in Balfour Beatty OHL and underground transmission demand outweighing supply Balfour Beatty substation ‒ National Grid to build over f
Slide 23: Power transmission demand exceeding supply
Growth market Power transmission demand exceeding supply Group opportunity by contract / framework Group opportunity graded by certainty £m £m 1,500 1,500 Further prospects: England Prospects Further prospects: Scotland 1,000 1,000 ASTI substations & cables ASTI Overhead lines Awarded but not contra
Slide 24: UK power generation pipeline
Growth market UK power generation pipeline Indicative shape of UK power generation pipeline to 2030 (£m) 800 800 > Scale of Group’s opportunity becoming Defence Nuclear Civil Pipeline clearer Nuclear > Essential long-term Carbon Capture and Hydrogen upgrade to the UK’s 400 400 Net Zero Teesside ener
Slide 25: UK defence and security infrastructure
Growth market UK defence and security infrastructure Government commitment UK defence proposition to increase defence spend End to end Adjacent to Delivery in Delivery partner capabilities expertise in civil high security in sector for c.20 > National defence spend rising reducing complex nuclear en
Slide 26: UK Transport: Expert capabilities
Growth market UK Transport: Expert capabilities > Construction: M25 Junction 10 ‒ Strong market position with National Highways: Major schemes in progress and Lower Thames Crossing to follow > Maintenance: Road ‒ Growth in 2024 volumes with further Local Authority contracts targeted ‒ Government fun
Slide 27: US Buildings: 24% order book increase in 2024
Growth market US Buildings: 24% order book increase in 2024 £5.4 billion order book: improved coverage for 2025 and 2026 Order book by sector Northwest Mid Atlantic +23% +27% -9% Government +12% Commercial office California +60% +15% Hospitality -26% Residential / mixed +26% Education Texas and Ariz
Slide 28: Gammon: Joint venture delivering major infrastructure
Gammon: Joint venture delivering major infrastructure Hong Kong International airport Progress update Orders weighted toward buildings Hong Kong > Government to stimulate economy with Buildings Civils investment: ‒ Developing the Northern Metropolis ‒ Growing the rail network > Progress made in purs
Slide 29: Strong outlook
Strong outlook Further PFO Decade of Consistent growth in infrastructure shareholder 2025 & 2026 growth returns High quality £18.4 billion Group capabilities Multi-year order book providing aligned to capital allocation good visibility growth markets policy Earnings-based Market momentum c. £944 mil
Slide 30: Q&A
Q&A
Slide 31: Appendix
Appendix Image: Cyberport extension, Hong Kong
Slide 32: Disclaimer and important information
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. T
Slide 33: Balfour Beatty investment proposition
Balfour Beatty investment proposition 1 High quality > Diverse portfolio across UK, US & Hong Kong and de-risked > £18.4 billion order book portfolio > Robust governance and disciplined bidding c. £944 million of shareholder returns 2021 – 2025 2 £208m £208m Expert > Track record of complex infrastr
Slide 34: Building New Futures Sustainability Strategy
Building New Futures Sustainability Strategy Protecting and enhancing the environment Leaving a positive social legacy Climate Nature Resource Supply chain Community Employee diversity, change positive efficiency integrity engagement equity and inclusion 13% reduction in Building the UK’s first 99%
Slide 35: Order book by phase
Order book by phase £7.6bn Total FY 2024 £18.4bn £7.2bn Total FY 2023 £16.5bn £6.3bn £5.4bn £4.5bn £3.9bn FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 0-12 months 13-24 months 25+ months UK Construction US Construction Gammon Support Services US Construction Gammon 34
Slide 36: US order book split
US order book split 2020 order book 2023 order book 2024 order book Civils Buildings Civils Buildings Civils Buildings 13% 11% 24% 25% 30% 42% £5.7bn* £5.7bn* 24% £7.1bn 24% 4% Commercial office Government Hospitality Data centres Residential / mixed use Healthcare Education Airport buildings Civil
Slide 37: Underlying profit from operations
Underlying profit from operations £m 2024* 2023* UK Construction 81 69 US Construction 40 51 Gammon 38 36 Construction Services 159 156 Support Services 93 80 Earnings-based businesses 252 236 Infrastructure Investments Pre-disposals operating (loss) / profit (8) 5 Gain on disposals 43 26 Corporate
Slide 38: Group balance sheet
Group balance sheet £m 2024 2023 £m Goodwill and intangible assets 1,122 1,133 Current working capital (1,228) (1,232) Net cash (excluding infrastructure concessions) 943 842 Investments in joint ventures and associates 385 389 PPP financial assets 21 24 Infrastructure concessions – non-recourse net
Slide 39: Cash flow
Cash flow £m 2024 2023 £m 2024 2023 Operating cash flows before working capital Working capital flows 208 258 movements and pension deficit payments Inventories (34) (11) Working capital (outflow)/inflow 99 63 Net contract assets 165 (48) Pension deficit payments≠ (30) (28) Trade and other receivabl
Slide 40: Working capital – Group
Working capital – Group £0m 0 Dec 17 Dec 18 Dec 19 Dec 20 Dec 21 Dec 22 Dec 23 Jun 24 Dec 23 £(200)m (4)% £(400)m £(600)m (10.3)% (10.3)% (8)% (12.9)% (9.9)% £(800)m (12)% (12.1)% (15.6)% (15.3)% (14.9)% £(1,000)m (16)% £(1,200)m £(1,400)m (20)% Period end working capital Period end working capital
Slide 41: Pensions: balance sheet movement
Pensions: balance sheet movement £30m £(97)m Employer Net contributions actuarial losses & other 40
Slide 42: Net finance income
Net finance income £m 2024 2023 Subordinated debt interest receivable 17 Interest on PPP financial assets 2 Interest on non-recourse borrowings (12) Fair value (loss)/gain on investment asset (2) 5 24 Net finance income – pension schemes 4 12 Other interest receivable 42 Other interest payable (7) 3
Slide 43: Borrowing repayment profile
Borrowing repayment profile £80m £40m 64 34 28 20 20 £0m 2027 2029 2031 2032 2036 US Private Placement notes 42