Annual Report and Accounts 2024
We’re driving the transformation of the industry to meet the challenges of the future.
We have delivered strong operational and financial performance across the Group.
Group highlights
REVENUE¹
£10,015m
NUMBER OF EMPLOYEES
27,000
UNDERLYING PROFIT BEFORE TAX
£289m
DIRECTORS’ VALUATION INVESTMENTS PORTFOLIO
£1.3bn
¹
£9.4bn
£7.1bn
£1.9bn
UNITED KINGDOM
UNITED STATES
HONG KONG
£18.4bn
GROUP ORDER BOOK
¹ Including share of joint ventures and associates.
Balfour Beatty is well positioned to continue its disciplined performance in the medium term, with strong order book visibility, attractive opportunities in our growth markets of UK energy, transport and defence, and US buildings, and our expert, highly engaged workforce positioning the Group for ongoing success.
Group Chief Executive
Leo Quinn
Group Chief Executive’s review
Our strategy: Build to Last
Launched in 2015, Build to Last is our strategy for continuous improvement. It is the day-to-day guide we use to uphold our purpose and underpins everything we do.
Our strategy, Build to Last, is fundamental to how we’re building a market-leading Balfour Beatty for the next 100 years. It’s our platform for sustainable growth, productivity, inclusive talent – all ensuring the best capability to deliver on our promises and our enduring commitment to Zero Harm.
The Build to Last strategy is measured against our five values – Lean, Expert, Trusted, Safe and Sustainable.
Lean
Trusted
We create value for our customers and drive continuous improvement
We deliver on our promises and we do the right thing
Our strategy: Build to Last
Our KPIs
£943m
NET CASH (£m)
£248m
UNDERLYING PROFIT/(LOSS) FROM CONTINUING OPERATIONS £m
2023: £842m
2023: £228m
2023: 95%
84%
96%
CUSTOMER SATISFACTION AVERAGE (%)
Our KPI
We make safety personal
We act responsibly to protect and enhance our planet and society
Safe
Sustainable
2023: 0.11 LTIR
2023: 146 (tCO
0.09
Our KPI
Our KPI
LOST TIME INJURY RATE (LTIR)
144 tCO e 000s
TOTAL SCOPE 1 & 2 EMISSIONS (tCO
excluding non-recourse borrowings
excluding international joint ventures
Building a
Our business model
At Balfour Beatty, we finance, develop, build, maintain and operate the increasingly complex and critical infrastructure that supports national economies and deliver projects at the heart of local communities.
Sharing the value we create
In striving to achieve its purpose of Building New Futures, Balfour Beatty touches the lives of millions of people around the world. Working with multiple stakeholders across the industry and beyond, the Group continues to innovate and lead the market through driving change, shaping the debate and inspiring a new generation of talent to be the change-makers of tomorrow.
Collaborative and long-term mutually beneficial relationships with our customers are the foundation of our success.
Talented and engaged employees committed to upholding our values enable us to deliver on our Build to Last strategy ensuring we win, and expertly deliver the best and most exciting projects whilst continuing to build a great place to work.
The thousands of supply chain partners we work with across the UK, US and Hong Kong play an instrumental role in our success and in improving and enhancing best practice across our industry.
Our activities can have a lasting impact on the communities in which we operate – we strive to leave a positive legacy.
Governments set the policy and legislative context in which we operate and are also valued customers across all of our chosen geographies.
Our shareholders, as owners of the Company, are a critical stakeholder for the Group.
Stakeholder value
Balfour Beatty prides itself on being a responsible, sustainable organisation that delivers long-term benefits for the business, society and the environment creating positive returns for all of the Group’s stakeholders.
Sustainability highlights
Sustainability
The Group made further strong progress in 2024. We once again delivered managed profitable growth from our earnings-based businesses and healthy cash generation, while also increasing our high-quality order book.
Chief Financial Officer’s review
Our financial performance measures below are considered most relevant to the Group and used to manage the Group’s performance.
Measuring financial performance
2020
2021
2022
2023
8,587
2020
2021
2022
UNDERLYING PROFIT FROM OPERATIONS (PFO) £m
2021
2022
2023
29.7
3.7
UNDERLYING EARNINGS PER SHARE (BASIC) Pence
UNDERLYING REVENUE¹ £m
2020
2021
2022
ORDER BOOK¹ £bn
7,629
7,320
7,185
STATUTORY REVENUE £m
2020
2021
2022
2023
9.0
1.5
DIVIDENDS PER SHARE Pence
STATUTORY PROFIT FOR THE YEAR £m
2020
2021
2022
2023
21.3
4.4
STATUTORY EARNINGS PER SHARE
(BASIC)
Pence
Our approach this year continues to strike a balance between investing in our business and providing returns for shareholders, with the aim of delivering against our Build to Last strategy and promoting the long-term sustainable success of the Group.
Governance
Group Chair introduction
Governance
Promoting the long-term, sustainable success of the Company.
Establishing the Company’s purpose, values and behaviour supports the Board’s active promotion of a positive culture. Consideration of stakeholder interests is a key cornerstone of the Board’s decision-making process.
Processes and procedures are in place to ensure that there is an appropriate balance of Board members who are sufficiently supported and have the necessary skills, experience and independence to discharge their duties as Directors.
The Board is the principal
decision-making body of the Company and each Director has specific responsibilities depending on their individual role. The
day-to-day operation of the Group is formally delegated by the Board to the Group Chief Executive.
Board leadership and Company purpose
Key statutory and regulatory disclosures are made by the Board on an annual basis to ensure compliance with all applicable requirements.
The Board has delegated authority on specific governance matters to its Committees:
Directors’ report
Committee reports
Division of responsibilities
Composition, succession and evaluation
Governance
Maintaining a strong Board
Board of Directors
Q&A with our new Directors
LTIR
Building New Futures
¹ Including share of joint ventures and associates, before non-underlying items.
Financial statements
The Directors have skills and experience relevant to the sector in which the Group operates in order to effectively set the strategic direction and purpose of the Group.
During 2024, we welcomed three exceptional leaders to the Balfour Beatty Board: Robert MacLeod, Gabby Costigan MBE, and Rudy Wynter. These distinguished appointments have enriched the Board with diverse insights and expertise, supporting Balfour Beatty’s ambitious growth trajectory.
2
e 000s)
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This is an interactive version of Balfour Beatty plc’s Annual Report and Accounts 2024. The content herein should be read in conjunction with and with reference to the printed version, which is available to download.
All content copyright 2025
Balfour Beatty plc.
All rights reserved
Designed by Balfour Beatty
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Strategic report
Governance
Financial statements
Investors
Non-executive Director, Group Chair
Charles Allen, Lord Allen of Kensington, CBE
Chief Financial Officer
Philip Harrison
Digital and AI
advancements
How do we...
Our digital-first approach is improving safety, productivity and assurance.
Find out more
M+ Museum, Hong Kong
Capitalising on high-growth markets where the Group has the capabilities and a proven track record to secure new opportunities.
Market review
Well positioned
in growth markets
How do we...
Our highly skilled colleagues and partners set us apart
Expert
2023: 81%
Our KPI
EMPLOYEE ENGAGEMENT INDEX (%)
Group Chair's introduction
Measuring financial performance
Chief Financial Officer's review
Sustainability highlights
Sharing the value we create
Our business model
Icon Awards
Well positioned in growth markets
Digital and AI advancements
Our strategy: Build to Last
Group Chief Executive's review
Group highlights
Home
8,280
We are leading the transformation of our industry to meet the challenges of the future.
Annual Report and Accounts 2023
Balfour Beatty has delivered strong operational and financial performance across the Group.
UNDERLYING REVENUE¹
UNITED KINGDOM
UNITED STATES
HONG KONG
Group highlights
£9,959m
NUMBER OF EMPLOYEES
26,000
UNDERLYING PROFIT BEFORE TAX
¹ Including share of joint ventures and associates, before non-underlying items.
£261m
£8.9bn
£5.6bn
£2.0bn
DIRECTORS’ VALUATION INVESTMENTS PORTFOLIO
£1.2bn
GROUP ORDER BOOK
The Group’s longer-term outlook remains positive and the growth forecast in 2025 and beyond is driven by the opportunities in the energy, transport and defence sectors in the UK and the Group’s chosen buildings sectors in the US.
Group Chief Executive
Leo Quinn
Group Chief Executive’s review
Launched in 2015, Build to Last is our strategy for continuous improvement. It is the day-to-day guide we use to uphold our purpose, and underpins everything we do.
Our strategy, Build to Last, is fundamental to how we’re building a market-leading Balfour Beatty for the next 100 years. It’s our platform for sustainable growth, productivity, inclusive talent – all ensuring the best capability to deliver on our promises and our enduring commitment to Zero Harm.
The Build to Last strategy is measured against our five values – Lean, Expert, Trusted, Safe and Sustainable.
We create value for our customers and drive continuous improvement
excluding non-recourse borrowings
excluding international joint ventures
2022: £815m
2022: £297m
2022: 80%
We deliver on our promises and we do the right thing
Our strategy: Build to Last
Lean
Trusted
£842m
Our KPIs
NET CASH (£m)
Our highly skilled colleagues and partners set us apart
Expert
Our KPI
EMPLOYEE ENGAGEMENT INDEX (%)
£228m
UNDERLYING PROFIT FROM CONTINUING OPERATIONS (£m)
2022: 95%
81%
Our KPI
95%
CUSTOMER SATISFACTION AVERAGE (%)
We make safety personal
We act responsibly to protect and enhance our planet and society
Safe
Sustainable
2022: 0.15
2022: 147
0.11
LTIR
Our KPI
Our KPI
LOST TIME INJURY RATE
146
TOTAL SCOPE 1 & 2 EMISSIONS
Our strategy: Build to Last
Balfour Beatty is using data, AI and digital technologies to improve safety, productivity and assurance.
Find out more
From shareholders and employees to customers, supply chain partners and the communities we operate in, each stakeholder group holds a vested interest in Balfour Beatty’s activities, performance or success. Their support, feedback and collaboration are vital for driving business growth and profitability but also for fostering trust and sustainability, and building a positive lasting legacy.
Sharing the value we create
Stakeholder value
The Group’s reliability and resilience has again delivered a solid performance, with increased revenue and profit from our earnings-based businesses and strong operating cash flow.
Chief Financial Officer’s review
Chief Financial Officer
Philip Harrison
¹ Including share of joint ventures and associates, before non-underlying items
The following are financial performance measures which are considered most relevant to the Group and used to manage the Group’s performance.
Measuring financial performance
Financial statements
Nomination Committee
Safety and Sustainability Committee
Audit and Risk Committee Remuneration Committee
•
•
•
•
Balfour Beatty is well-positioned for sustained success, and we look forward to the exciting prospects that await us as we move further in to 2024 and beyond.
Governance
Group Chair introduction
Group Chair
Charles Allen, Lord Allen of Kensington, CBE
Governance
Promoting the long-term, sustainable success of the Company.
Establishing the Company’s purpose, values and behaviour supports the Board’s active promotion of a positive culture. Consideration of stakeholder interests is a key cornerstone of the Board’s decision-making process.
Board leadership and Company purpose
Directors’ report
Committee reports
Division of responsibilities
Composition, succession and evaluation
Processes and procedures are in place to ensure that there is an appropriate balance of Board members who are sufficiently supported and have the necessary skills, experience and independence to discharge their duties as Directors.
The Board is the principal decision-making body of the Company and each Director has specific responsibilities depending on their individual role. The day-to-day operation of the Group is formally delegated by the Board to the Group Chief Executive.
Key statutory and regulatory disclosures are made by the Board on an annual basis to ensure compliance with all applicable requirements.
The Board has delegated authority on specific governance matters to its Committees:
Governance
The Directors have skills and experience relevant to the sector in which the Group operates in order to effectively set the strategic direction and purpose of the Group.
Our approach to remuneration continues to deliver a robust link between strategy, reward and performance, supporting Balfour Beatty’s drive to deliver profitable managed growth and sustainable cash generation.
Maintaining a strong Board
Remuneration
Board of Directors
Downloads centre
Download the full report
Governance
Strategic report
Financial statements
Investors
This is an interactive version of Balfour Beatty plc’s 2023 Annual Report and Accounts. The content herein should be read in conjunction with and with reference to the printed version, which is available to download.
All content copyright 2023
Balfour Beatty plc.
All rights reserved
Designed by Balfour Beatty
Disclaimer
Privacy
Terms of use
Accessibility
Legal
Download centre
Governance highlights
Group Chair's introduction
Measuring financial performance
Chief Financial Officer's review
Sustainability highlights
Sharing the value we create
Infrastructure expertise
Our strategy: Build to Last
Group Chief Executive's review
Group highlights
Home
418
STATUTORY NET CASH/ (BORROWINGS) £m
2020
2021
2022
2023
790
NET CASH £m
139
8,931
2024
2023
47.5
37.3
2024
16.5
10.5
2024
7,993
842
2024
435
194
35.3
2024
2023
Performance measures
Statutory measures
It has given me great pleasure to experience first-hand the realities of Balfour Beatty life on the ground and witness its employees living and breathing the Group’s culture and values.
Photo credit: Los Angeles International Airport
Hinkley Point C, Somerset, UK
Delivering the UK’s first nuclear power station in a generation has drawn on a breadth of capabilities from across the UK business. Construction Services is carrying out the tunnelling and maritime works package, plus the mechanical and electrical works through the MEH Alliance. Support Services is delivering the 48km, 400kV overhead line connection project on behalf of National Grid.
Los Angeles International Airport (LAX) Automated People Mover, US
Balfour Beatty and its joint venture partners in LAX Integrated Express Solutions (LINXS) are responsible for the design, build, finance, operation and maintenance of the LAX Automated People Mover project. To construct this 2.25-mile above-ground airport transport system connecting passengers with the airline terminals, LINXS is utilising expert capabilities from its US construction businesses with the financial expertise of Balfour Beatty Investments.
Littlebrook substation, Kent, UK
As part of National Grid’s transformation programme, Balfour Beatty is replacing the high-voltage Littlebrook substation to ensure power supply in the Southeast for years to come. This project combines multiple aspects of the Group’s capabilities, including ground engineering, construction, steel fabrication, M&E, cabling and overhead line connections.
M25, UK
In 2009, Balfour Beatty, with its joint venture partners, was awarded the design, build, finance and operate contract for the M25, and has subsequently upgraded, widened and enhanced sections of the London orbital motorway. The Group continues to operate and maintain the M25 through its stake in Connect Plus Services.
1
Balfour Beatty prides itself on being a responsible, sustainable organisation that delivers long-term benefits for the business, society and the environment creating positive returns for all of the Group’s stakeholders.
Sustainability highlights
Sustainability
2023 Annual Reports and Accounts
CUSTOMERS
EMPLOYEES
SUPPLY CHAIN AND STRATEGIC PARTNERS
COMMUNITIES
GOVERNMENTS
SHAREHOLDERS
View our sustainability strategy and best case studies
9,595
51
197
279
228
29.7
16.4
16.1
17.4
581
790
815
441
30
139
287
46.9
11.5
2%
40%
social value generated in the UK
reduction in UK waste intensity
reduction in absolute carbon emissions across the UK and US
£937m
of UK workforce in earn and learn positions
7.4%
spent with UK local suppliers
£950m+
charitable donations in the UK
£398m+
Find out more about our strategy and read our case studies visit –
reduction in the Group's Scope 1 and 2 CO2 emissions intensity*
(*market-based)
15%
in UK waste intensity
40% reduction
spent with UK SMEs
£1.85bn+
of UK workforce in earn and learn positions
7.3%
(tCO
Talented
Experts
View our sustainability strategy and best case studies
STATUTORY NET CASH/ (BORROWINGS) £m
NET CASH £m
9.0
10.5
35.3
Icon Awards
Look out for this icon in the report to meet some of our experts and learn about the vital work they do to leave a positive, lasting legacy in the communities where we work.
Look out for the Icon Awards logo to read our winners’ stories throughout the report.
1.
3.
4.
Well positioned
in growth markets
2.
Skye 132kV reinforcement project, Scotland
A9 Dualling Contract, Scotland
RAF Marham, Norfolk
Sacramento International Airport Pedestrian Walkway
In 2024, we celebrated our inaugural Icon Awards at the world-class V&A Museum in London, bringing together almost 400 colleagues from across the UK, US and Hong Kong to celebrate the very best of Balfour Beatty.
Look out for the Icon Awards logo to read our winners’ stories throughout the report.
social value generated in the UK
£991m
10,015
2024
248
2020
43.6
18.4
2024
943
446
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
8,234
178
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
34.2
12.5
Gabby Costigan
Independent Non-executive Director
Robert MacLeod
Independent Non-executive Director
Rudy Wynter
Independent Non-executive Director
Nominees
1,700
Judges
200
Finalists
Nominees
Judges
Ultimate icons
26
World-class venue
1
¹https://worldgbc.org/article/bringing-embodied-carbon-upfront/
Find out more
The 1909 drink – to represent our founding year and the year the V&A Museum re-opened.
The Icon Awards winner’s trophy.
Balfour Beatty’s 2024 Icon Award winners.
The magnificent V&A Museum in the heart of London.
The ceremony was held in the V&A’s impressive Raphael Gallery.
BBC journalist and broadcaster Martine Croxall expertly hosted our first ever Group-wide Icon Awards.
Iconic moments
EXPLORE OUR EVENT PHOTOS:
Leo Quinn, Group Chief Executive, delivering his opening remarks.
Welcome drinks hosted in The Dome under Dale Chihuly’s contemporary central glass sculpture.
Find out more
Watch our wrap-up video from the Icon Awards:
How we work
DIVISIONS
CONSTRUCTION SERVICES
INFRASTRUCTURE INVESTMENTS
Our Construction Services businesses operate across infrastructure and buildings markets in the UK, in the US and in joint venture in Hong Kong.
Our Support Services businesses operate in the UK, designing, upgrading, managing and maintaining critical national infrastructure.
SUPPORT SERVICES
Our Infrastructure Investments business develops and finances both public and private infrastructure projects in the UK and the US.
CAPABILITIES
Constructs buildings which include commercial, defence, education, government, healthcare, leisure, retail and residential assets and provides a range of services including design and/or build, mechanical and electrical engineering, shell and core and/or fit out and interior refurbishment.
Provides construction services for four main infrastructure asset types:
– energy: design and construction of large-scale, complex assets for the energy sector;
– roads: design and construction of motorways in the UK, the US and Hong Kong, including widening and converting existing assets;
– railways: design and management of railway systems, delivering major multi-disciplinary projects, track work, electrification and power supply; and
– airports: construction and refurbishment of major passenger terminals, passenger transit facilities and airport facilities, and airfield infrastructure and civils works.
Construction and build services for other infrastructure assets including flood and coastal defences.
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CUSTOMERS
Public, private and regulated entities
CAPABILITIES
Constructs and maintains electricity networks for power transmission and distribution contracts.
Provides maintenance, asset and network management, and design services in respect of highways, railways and other publicly available assets.
Provides support services to various utility assets.
>
>
>
CUSTOMERS
Public, private and regulated entities
CAPABILITIES
Invests directly in various assets, mainly infrastructure with post-construction management opportunities.
Operates a UK and US portfolio of service concession assets.
Invests in real estate, particularly private military housing, student accommodation and multifamily housing.
Provides real estate management services, including property development and asset management.
>
>
>
CUSTOMERS
Public, private and regulated entities
CAPABILITIES
>
CAPABILITIES
CAPABILITIES
Business model
Our approach to renumeration continues to deliver a robust link between strategy, reward and performance, supporting Balfour Beatty’s drive to deliver profitable managed growth and sustainable cash generation.
Renumeration
Renumeration
Governance
Maintaining a strong board
Renumeration
Download centre
1.
2.
3.
4.
2
2
e 000s)
Capitalising on high-growth markets where the Group has the capabilities and a proven track record to secure new opportunities.
Market review
118
Our differentiators
Balfour Beatty has built an industry-leading brand based on its reputation as a partner that is Lean, Expert, Trusted, Safe and Sustainable – our five Build to Last values.
BUILD TO LAST VALUES
With over 115 years of experience successfully delivering transformational infrastructure projects, Balfour Beatty has cultivated a strong track record of quality and reliability.
WORLD-CLASS RECORD
Balfour Beatty invests in understanding clients’ needs, developing bespoke solutions, and collaborating closely with customers and supply chains through integrated delivery models.
COLLABORATION
Innovation is part of Balfour Beatty’s culture, harnessing the power of digital and cutting-edge technology to drive productivity and redefine the possible.
INNOVATION
Balfour Beatty’s strong balance sheet is a testament to strong governance. It gives customers confidence in the Group’s ability to deliver, and that Balfour Beatty is here for the long term.
FINANCIAL STABILITY
Balfour Beatty’s engineering and project management expertise allows it to deliver complex, one-of-a-kind projects and has made the Group a trusted construction partner for the public and private sector alike.
EXPERT PEOPLE
Balfour Beatty takes its responsibility as a custodian of the planet seriously and seeks to leave a positive legacy in the communities it works in.
SUSTAINABLE FOCUS
1.
1.
2.
2.
Find out more
Find out more
Iconic Moments
BBC journalist and broadcaster Martine Croxall expertly hosted our first ever Group-wide Icon Awards.
BBC journalist and broadcaster Martine Croxall expertly hosted our first ever Group-wide Icon Awards.
The ceremony was held in the V&A’s impressive Raphael Gallery.
The magnificent V&A Museum in the heart of London.
Balfour Beatty’s 2024 Icon Award winners.
BBC journalist and broadcaster Martine Croxall expertly hosted our first ever Group-wide Icon Awards.
The ceremony was held in the V&A’s impressive Raphael Gallery.
BBC journalist and broadcaster Martine Croxall expertly hosted our first ever Group-wide Icon Awards.
At Balfour Beatty, we finance, develop, build, maintain and operate the increasingly complex and critical infrastructure that supports national economies and deliver projects at the heart of local communities.
Our business model
Our Construction Services businesses operate across infrastructure and buildings markets in the UK, in the US and in joint venture in Hong Kong.
CONSTRUCTION SERVICES
SUPPORT SERVICES
Our Support Services businesses operate in the UK, designing, upgrading, managing and maintaining critical national infrastructure.
INFRASTRUCTURE INVESTMENTS
Our Infrastructure Investments business develops and finances both public and private infrastructure projects in the UK and the US.
Balfour Beatty has built an industry-leading brand based on its reputation as a partner that is Lean, Expert, Trusted, Safe and Sustainable – our five Build to Last values.
BUILD TO LAST VALUES
>
9,595
197
279
228
51
29.7
29.7
3.7
16.1
17.4
16.4
790
815
581
46.9
11.5
Chief Financial Officer' review
Measuring financial performance
Group Chair's introduction
Governance
Maintaining a strong board
Renumeration
