- Balfour Beatty
- 05 December 2025 09:23:37
Source: Sharecast
Berenberg said Balfour Beatty's full-year 2025 trading update on 4 December highlighted that it had continued to perform well and that it was on track to achieve full-year earnings expectations.
The German bank noted that Balfour's order book was expected to grow by roughly 20% in FY25, mainly driven by the its UK construction exposure, which it pointed out has seen over £3.5bn of new power generation orders in the year.
Additionally, Bernberg highlighted that average monthly net cash was now expected to be at the top end of previous guidance of £1.1bn-1.2bn, which gives Balfour "plenty of options".
"Overall, this represents a really strong statement from Balfour and sets the business up well as we head into FY26. We update our numbers for various factors – including now assuming a 2026 buyback – resulting in 2- 5% upgrades across the forecast period," said Berenberg, which reiterated its 'buy' rating on the stock.
Berenberg also pointed out that Balfour shares currently trade on a 14.2x FY26 price-to-earnings ratio and 8.1x EBIT.
Reporting by Iain Gilbert at Sharecast.com