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• Revenue: Increased by 4% to GBP10 billion.

• Profit from Earnings-Based Businesses: Grew by 7% to GBP252 million.

• Group Profit: Increased by 11% to GBP227 million.

• Earnings Per Share: Increased by 17% to 43.6p.

• Order Book: Grew by 12% to GBP18.4 billion.

• Average Net Cash: GBP766 million, with year-end net cash at GBP943 million.

• Final Dividend: 8.7p, total dividend for the year 12.5p, a growth of 9% over the prior year.

• UK Construction PFO Margin: Improved to 2.7%.

• Support Services Revenue Growth: Increased by 20%.

• Support Services PFO Margin: Reduced by 30 basis points to 7.7%.

• Investment Portfolio Valuation: Increased by 3% to GBP1.25 billion.

• Non-Underlying Items Net Charge: GBP49 million after tax.

• Capital Expenditure: Reduced to GBP28 million from GBP66 million in 2023.

• Share Buyback Program: Increased to GBP125 million.

• Warning! GuruFocus has detected 7 Warning Signs with BAFBF.

Release Date: March 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Balfour Beatty PLC (BAFBF) reported a significant increase in profit, with nearly GBP1 billion in cash reserves.

• The company's order book grew by 12% to GBP18.4 billion, providing strong future revenue visibility.

• Employee engagement scores have improved consistently over the past decade, reaching 84%, which is 10 points higher than peer groups.

• The company has achieved a world-class safety record, with significant improvements in safety observations and accountability.

• Balfour Beatty PLC (BAFBF) has returned nearly GBP1 billion to shareholders over the last five years through buybacks and dividends.

Negative Points

• The company faces challenges with the UK Building Safety Act, resulting in a GBP83 million charge.

• A jury verdict against Balfour Beatty PLC (BAFBF) and its JV partners in the US resulted in a GBP52 million provision.

• The US civil projects continue to weigh on profitability, with PFO reduced to GBP40 million.

• Hong Kong revenues are expected to decline as major airport projects conclude.

• The company is facing challenges in securing skilled labor, particularly in mechanical and electrical sectors, which could impact future project execution.

Q & A Highlights

Q: Could you clarify the potential revenue ramp for power generation and construction services? A: Leo Quinn, Group Chief Executive, explained that the revenue from power generation is expected to grow significantly, with a theoretical limit set at GBP800 million to ensure better margins and lower risk. The growth will be split across construction and services, with a focus on selective projects that Balfour Beatty can deliver with low risk.