Latest news with #LeoQuinn
Yahoo
14 hours ago
- Business
- Yahoo
Balfour Beatty profits rise, but US arm struggles
This story was originally published on Construction Dive. To receive daily news and insights, subscribe to our free daily Construction Dive newsletter. Balfour Beatty has plenty of faith in the infrastructure construction market both in the U.K. and the U.S. as the company remains on track to deliver its full-year expectations, leaders of the London-based builder said during its earnings call on Wednesday. But cost overruns at a highway project in Texas put a blemish on its first half results. On a conference call to discuss those numbers, Leo Quinn, Balfour Beatty's CEO, highlighted the growing amount of work that the company is being contracted to perform, and once again touted the company's selectivity as it continues its yearslong push to de-risk its portfolio. These large infrastructure projects include the flagship HS2 job, a high-speed rail system across the U.K. that Balfour Beatty is working on with Paris-based Vinci. Balfour Beatty is also working on the Sizewell C project, where the builder will deliver the main civil works alongside Laing O'Rourke and Bouygues Travaux Publics, the contractor announced on June 30. The U.K. government declared that it would invest at least 14.2 billion pounds ($19.3 billion) over the next five years. 'I'm very confident with the momentum in the business on the rising tide of infrastructure that we'll be actually delivering significant shareholder returns into the future,' Quinn, who is stepping down in September, said during the call. So much work, so few workers However, too much of a good thing has presented a problem — multiple times, Quinn noted that the demand for infrastructure construction is exceeding the supply of what contractors can provide due to lack of workers. Quinn said that the company's work de-risking its portfolio has helped buttress against the downside risks in new contracts. Specifically with power projects, he said that the company selected urban jobs to avoid having a situation where the company would need to deliver in a rural area. With that downside risk capped, Quinn said, the upside incentives hinge on performance and rely on local supply chains as well as the company's in-house capability. 'Let's face it. At this moment in time, infrastructure is booming, not only for us, but for everybody else. So it is a battle to recruit, retain the best and the brightest,' Quinn said. By the numbers Balfour Beatty reported a pre-tax profit of 132 million pounds ($179 million) in the first six months of the year, up 18% year-over-year from 112 million pounds in the first half of 2024. The company's leaders also lauded the company's order book, or backlog, which rose to 19.5 billion pounds, up year-over-year from 16.6 billion pounds, an approximately 17% increase. The financials come on the back of a strong performance by the company in its U.K. construction segment, which pulled in approximately 1.6 billion pounds in revenue, an approximately 7% increase from the prior year's 1.5 billion pounds, according to the firm. It also generated 56 million pounds in profit from operations, a gain of 65% from the prior year's 34 million. The U.K. segment also hit its 3% margin target a year earlier than the company anticipated it would, according to the news release. Across the pond, however, the firm's U.S. construction segment recorded an 11 million pound loss for the first half, compared to 18 million pounds in profit during the same period in 2024. That loss came on 2.1 billion pounds of revenue, up 24% year over year from 1.7 billion pounds. While the company's U.S. Buildings segment offered a strong performance, cost overruns at a highway project in Texas dragged on its Civils business. Quinn told investors that design issues had led to rework on the project. Phil Harrison, Balfour Beatty's CFO, said that the company was seeking to recover the costs. In prior years, Harrison said, highway projects in the Southeast and Texas were profitable, and he expected that to be the case again going forward. The company also recorded losses in its infrastructure investments and corporate activities segments, according to the news release. Harrison said that a key driver of the losses was an independent compliance monitor, a condition of the builder's military housing fraud guilty plea in 2022. A corporate monitor keeps an eye on how companies comply with agreements and settlements post-court. Balfour Beatty agreed in principle to extend the monitor's oversight to June 2026, which Harrison said was enough time to remediate outstanding work in the first half of the year. Recommended Reading Leo Quinn to step down as Balfour Beatty CEO Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Balfour Beatty receives profit boost from government contracts
Infrastructure group Balfour Beatty recorded a jump in profit for the first half of the year after a bumper performance in its UK construction. The London-listed firm posted a £20m rise in pre-tax profit for the first six months of the year to £132m, up from £112m last year. It came as the business' UK construction arm 'achieved its long-standing three per cent margin target earlier than expected'. The division netted a profit from operations margin – which indicates how much profit a business makes from its core activities for every pound of revenue it generates – of 3.6 per cent. The company benefited from a steady stream of work announced by the UK government with major infrastructure projects including new and ongoing contracts for the Sizewell C nuclear power station, Net Zero Teesside Power and work on the HS2 railway project. Support services, which provides outsourced maintenance, upgrade, and management services for national infrastructure, helped power the construction arm's gains with a 35 per cent increase to profit from operations topping £46m. This helped offset a first-half loss in US construction after the civils business, which accounts for a smaller portion of the US division's revenue, was negatively impacted by 'cost overruns and schedule delays on a single joint venture highways project in Texas.' Balfour Beatty is in discussions with the US Department of Justice to extend a plea agreement and monitorship for its military housing business until June 2026. Balfour Beatty backs profit targets Infrastructure investments suffered a bruising in the period with the valuation of the firm's investments portfolio decreasing by eight per cent to £1.2bn. The company cited the 'increased discount rates and sterling strengthening against the US dollar' for the downturn. Still, Balfour Beatty said it expects a gain of between £30m and £40m on disposals in its infrastructure investments. Profit from operations remained 'on track' for full-year targets with the firm expecting an increase after the performance of its UK construction arm. The business said its order book had grown to £19.5bn, from £18.4bn last year, and expects it to top £20bn for the full-year. Leo Quinn, Balfour Beatty's chief executive, said: 'Recent UK Government announcements confirm a deep pipeline of major infrastructure projects which closely align with the Group's unique expert capabilities and will further enhance the quality of the future order book.' Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
The Independent
4 days ago
- Business
- The Independent
Balfour Beatty profits lift as it eyes boost from UK construction projects
Infrastructure giant Balfour Beatty has announced stronger profits after a boost from its UK construction arm, which it expects to be supported further by new projects. It came as boss Leo Quinn delivered his final results for the firm. He is stepping down as chief executive after almost 11 years transforming its operations. On Wednesday, the FTSE 250 company said it is on track to meet its profit forecasts for this year and is targeting 'growth' in 2026. It reported that pre-tax profits grew to £132 million for the first half of the year, up from £112 million a year earlier. Balfour Beatty said it was supported by 'strong' profitability in its UK construction and support services operations. Mr Quinn said its UK business saw profit margins reach target levels more quickly than expected because of Government efforts to speed up infrastructure projects and planning reform. He said: 'Recent UK Government announcements confirm a deep pipeline of major infrastructure projects which closely align with the group's unique expert capabilities and will further enhance the quality of the future order book.' However, the company said it saw weaker profitability from its US construction arm over the half-year because of issues facing interstate highway projects in Texas. Mr Quinn added: 'Our continuing strong cash generation is underpinned by a growing order book with improved margins and lower risk contract forms. 'This provides the board with increasing confidence in significant future cash generation that supports our ongoing dividends and share buybacks. 'This is demonstrated by the momentum in our key growth areas in the first half.' Shares in Balfour Beatty were 2.8% lower.
Irish Post
08-06-2025
- Business
- Irish Post
Outgoing Balfour Beattie chief Leo Quinn appointed Life President of 5% Club charity
LEO QUINN, the outgoing Chief Executive of global construction company Balfour Beatty, has been appointed Life President of The 5% Club charity. In March, it was announced that Quinn would step down from his role at Balfour Beatty after a successful 10 years in which the company significantly strengthened its balance sheet. His time in charge also saw Balfour Beatty deliver Total Shareholder Returns (TSR) of 261 per cent, more than three times the average TSR of the FTSE250 index. This week, it was announced that Quinn, the son of Irish emigrants, had been made Life President of the national charity he founded in 2013. The 5% Club seeks to drive skills development and combat youth unemployment and was founded on the principle that businesses should aim to have at least 5 per cent of their workforce in earn and learn positions. 'A call to action' "The 5% Club was born from a simple idea: that by investing in people, we build stronger businesses and a stronger society," said Quinn. The announcement of his new role was made during a 5% Club celebratory summer reception hosted in the House of Lords by Lord Allen of Kensington. Speaking at the reception, Quinn added: "I founded The 5% Club in 2013 to address the twin challenges of persistent youth unemployment and a growing national skills gap. "More than a decade later, I'm proud of what our members have achieved — real opportunities, measurable progress, and a lasting shift in employer mindsets. "But the mission isn't finished. Nearly 1m young people in the UK are still not in education, employment or training. "For me, the Life Presidency is not only an honour — it's a call to action. "I'm as committed today as I was a decade ago to building a stronger, more inclusive workforce for the future." Inspiring a generation of leaders The 5% Club now represents over 1,200 member organisations, collectively employing more than 1.95m people, including 88,000 apprentices, 22,000 graduates and 10,000 sponsored students. Quinn's current employers, Balfour Beatty, are one of the founding members of The 5% Club and the company currently has 7.4 per cent of its workforce in 'earn and learn' roles. The new honorary position recognises Quinn's pivotal role in establishing the charity's purpose and impact. It formalises his continued involvement beyond governance, enabling him to contribute to strategic dialogue, act as an ambassador and inspire the next phase of growth. The role also includes a permanent seat on The 5% Club's Business Leadership Council and ambassadorial duties representing the charity across industry, government and policy forums. Ozlem Gunduz Robinson, The 5% Club's Chair of Trustees, said: "Leo Quinn's belief in social mobility and the responsibilities of businesses has inspired an entire generation of leaders. "His appointment as Life President marks not only a personal tribute, but a commitment to carrying his founding ethos into the future." See More: Balfour Beatty, Leo Quinn, The 5% Club
Yahoo
25-04-2025
- Automotive
- Yahoo
Balfour Beatty secures $889m reconstruction contract for I-30 in Texas
Infrastructure group Balfour Beatty has been awarded an $889m (£670m) contract by the Texas Department of Transportation to reconstruct a section of Interstate 30 (I-30) in Dallas, US. The contract involves the reconstruction of a 3.7km stretch on the east side of Dallas County. Upon completion, the project will double the number of general-purpose lanes from six to 12. This is expected to significantly improve traffic flow and connectivity within the city. Additionally, Balfour Beatty is set to construct nine crossings to connect I-30 with major infrastructure projects such as the Southern Gateway, the I-35E Lowest Stemmons, and The Horseshoe. These projects were also completed by Balfour Beatty for the Texas Department of Transportation within the past five years. Preconstruction activities for the I-30 project are set to commence in 2026, with an estimated completion timeline of five years. Balfour Beatty Group chief executive Leo Quinn said: 'This contract award marks a significant milestone in Balfour Beatty's 30-year partnership with the Texas Department of Transportation and our proven track record of successful project delivery.' 'With decades of experience executing complex roadway projects in Dallas and an in-depth understanding of the region's infrastructure, we are uniquely positioned to deliver these essential improvements. This work will not only enhance connectivity and reduce congestion but also foster long-term economic growth and opportunity across the region.' This latest contract follows a previous $746m (£575m) agreement awarded to Balfour Beatty in November 2024 for the reconstruction of a portion of Interstate 35 through Austin, Texas. Last month, Balfour Beatty US initiated construction on the Northern Virginia Science Center in Dulles, Virginia. "Balfour Beatty secures $889m reconstruction contract for I-30 in Texas" was originally created and published by World Construction Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
