Balfour Beatty sees profit swell after shunning risk

By Neil Gerrard15 March 2023

Balfour Beatty more than tripled its pre-tax profit in 2022 as it continued to diversify across geographical regions and business sectors.

Two Balfour Beatty workers in branded orange hi-vis workwear and white hard hats stand on a railway track. Image courtesy of Balfour Beatty

The UK-based contractor saw revenue for the year increase to £8.9 billion (US$10.8 billion), an increase of 8% on the year before.

Pre-tax profit rose to £284 million (US$345.2 million), up from £87 million (US$105.8 million) in 2021.

Meanwhile, its UK construction arm returned to a profit, having made a £2 million loss in 2021.

The company’s order book increased to £17.4 billion (US$21.2 billion).

Leo Quinn, Balfour Beatty Group chief executive, said: “The strong results in 2022 are a testament to Balfour Beatty’s transformation into a well-balanced and lower risk group.

“The diversified portfolio, both geographically in the UK, US and Hong Kong, and operationally across construction services, support services and infrastructure investments, plus the strength of our balance sheet and cash management, have provided the resilience for the group to deliver ahead of expectations and grow our order book through the global instability seen in 2022.”

Balfour Beatty’s 2022 financial results
Segment Revenue (£m) Profit from operations (£m) Profit from operations margin (%)
UK Construction 2,763 59 2.1%
US Construction 3,651 58 1.6%
Gammon 1,068 32 3.0%
Construction Services 7,482 149 2.0%
Support Services 989 83 8.4%
Earnings-based businesses 8,471 232 2.7%
Infrastructure Investments 460 81
Corporate activities - (34)
Total 8,931 279

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