Balfour Beatty shares rose more than 10% to a record £9.73 after the infrastructure and construction group reported strong first-half results and upgraded its full-year outlook.

The London-based company said growth was driven by strong demand for US building projects and UK power transmission work.

US construction returned to profit, generating £22m compared with a £11m loss a year earlier, while support services profit increased to £66m from £46m, driven by strong growth in power transmission. UK construction delivered a 3.4% profit margin, while Infrastructure Investments recorded a £9m loss due to monitoring and legal costs that have now ended.

Underlying profit from operations at its earnings-based businesses rose to £153m from £108m a year earlier, while underlying earnings per share increased to 21.7 pence from 14.4 pence.

The FTSE 250 company also raised its full-year net cash guidance by £200m to between £1.5bn and £1.7bn.

Balfour Beatty said its £22.9bn order book, up from £22.7bn at the end of 2025, and strong cash generation provided confidence in further growth, focused on four strategic growth markets: UK energy transition and security, UK defence, UK transport and US buildings.

The company now expects low double-digit percentage growth in profit from operations from its earnings-based businesses and said full-year performance should be “slightly ahead” of previous guidance.

CEO Philip Hoare said: "Balfour Beatty enters the second half with real momentum. Supported by a £23bn order book, attractive growth markets and strong operational momentum, Balfour Beatty is well positioned to deliver these programmes safely, efficiently and at scale."

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