BAM’s UK construction arm has bounced back into the black after swinging from a £24m loss to a £27m profit in 2025, marking a sharp turnaround for the building business.

Turnover at the construction division edged up 7% to £974m, driving the recovery in adjusted EBITDA after the prior year’s red ink stemming mainly from the Co-op Live job in Manchester.

The UK civils arm again proved the engine room. BAM Nuttall generated £80m profit on £1.55bn revenue, delivering a 5.2% operating margin.

Together the building and civils arms broke through the £2.5bn revenue barrier, delivering a combined trading profit of £107m.

*Adjusted

Civil engineering enjoyed strong performances across rail, energy transition and infrastructure. Recent wins included two substations for SSE Transmission.

Bam’s UK building business secured Framwellgate High School, New Dargavel Primary School and the North Devon District Hospital Residence.

Across the wider combined United Kingdom and Ireland division, revenue climbed 10% to £2.99bn, while adjusted EBITDA jumped to £139m from £99m, lifting margin to 4.7%.

The order book remained strong at £6bn. The reported 3.7% dip against year-end 2024 was driven by the negative impact of sterling exchange movements, worth €337m at group level.

Ruud Joosten, CEO of Royal BAM Group, said he believed the construction market in the United Kingdom was expected to strengthen, supported by the UK Government’s continued focus on energy security.

“The Government’s ten-year infrastructure plan is ambitious, and defence investment is also set to increase. The recently approved UK Planning and Infrastructure Bill has the potential to accelerate approvals for major projects. In London, commercial planning activity is rising, with growing emphasis on retrofit developments.”