Balfour Beatty’s UK construction business fired on all cylinders last year as booming energy work helped push margins through the 3% barrier and drove a record £22.7bn order book across the group.

The contractor posted a standout performance from its home construction arm, where turnover rose 3% to £3.1bn and operating profit jumped 36% to £110m.

Margin climbed to 3.5% from 2.7%, beating the division’s long-running 3% target a year ahead of plan.

That stronger UK showing helped lift group pre-tax profit by 51% to £323m for 2025, while turnover rose 8% to £10.8bn

Balfour Beatty is targetting three strategic growth markets in the UK – energy transition and security, defence and transport.

The biggest momentum came from major UK energy jobs, with the construction order book swelling 44% to £8.9bn after big additions from Sizewell C and Net Zero Teesside.

Across the group, the total order book surged 23% to £22.7bn, giving Balfour Beatty its biggest ever bank of future work.

Construction Services as a whole also moved forward, with turnover up 6% to £8.71bn and operating profit rising to £171m from £159m.

While UK construction delivered the best margin performances in years, outside the UK, the picture was more mixed.

US Construction grew turnover by around a quarter to £4.5bn but profit fell 38% to £25m after delays and cost overruns on one Texas highways job. Gammon revenue dropped 30% to £1.09bn as major civils jobs near Hong Kong airport wound down, although margin improved.

Support Services provided another powerful lift, with turnover up 18% to £1.43bn and operating profit up 31% to £122m as power transmission and distribution demand accelerated.

Cash generation remained strong, with average net cash jumping to £1.2bn from £766m and year-end net cash climbing to £1.45bn from £943m.

The strong performance saw Balfour Beatty unveiled a £200m share buyback plan for 2026.

Group chief executive Philip Hoare said: “In 2025, the group delivered on expectations with further earnings growth, fuelled by strong operational performance and momentum in chosen growth markets.”

He added that the group’s capabilities, quality of order book and disciplined approach to risk gave it “a powerful foundation for the future”.