Balfour Beatty's US Arm Swings to Profit on Data Center, Airport Work

Balfour Beatty's US Arm Swings to Profit on Data Center, Airport Work

Balfour Beatty’s US construction business turned a profit of 22 million pounds ($29.7 million) in the first half of 2026, reversing an 11 million-pound loss a year earlier, Construction Dive reports, citing the company’s H1 earnings call.

Market Impact

US revenue climbed 19% versus the first half of 2025, CEO Philip Hoare said on Tuesday’s call, crediting the turnaround to deeper customer relationships, including a 20-year “national framework” arrangement with Wells Fargo that spans multiple US geographies. The company also expects its troubled Texas highway project, which had suffered design issues and rework, to reach closeout soon, according to CFO Myles Westcott.

Data centers and aviation are the two verticals driving the recovery. Hoare pointed to $350 million in US data center wins plus another $1 billion in awarded-but-not-yet-contracted work through the first half. On aviation, Balfour Beatty won a $361 million mandate at Raleigh-Durham Airport during the half, adding to a track record across seven US airports. Hoare cited a projected $140 billion in US aviation construction spending through 2029, and noted the Federal Aviation Administration recently flagged $870 million in airport infrastructure grants. Associated Builders and Contractors data cited in the report shows the divide this is creating industrywide: the 12% of ABC member contractors with data center work reported 11.4 months of backlog in July, versus 7.5 months for the 88% without it.

Companywide, Balfour Beatty posted 5.6 billion pounds ($7.6 billion) in first-half revenue, up 8% year over year, and grew its order book 17.4% to 22.9 billion pounds. Pre-tax profit slipped 2.3% to 129 million pounds. The firm raised its full-year average net cash guidance by 200 million pounds, to a range of 1.5 billion to 1.7 billion pounds.

What It Means for Subcontractors

• Data center subcontract packages are opening up now: with $1 billion in awarded-but-not-contracted work in Balfour Beatty’s US pipeline, electrical, mechanical, and E&I subs should be positioning for bid packages tied to that backlog.
• The $361 million Raleigh-Durham Airport mandate signals near-term subcontracting opportunity for civil, electrical, and specialty aviation-infrastructure trades in North Carolina.
• Contractors without data center work are falling behind on backlog (7.5 months vs. 11.4 months per ABC’s July figures), so subs should weigh whether to chase entry into that vertical or double down on aviation, where Balfour Beatty projects $140 billion in US spending through 2029.
• The FAA’s $870 million airport infrastructure grant pool is a funding source worth tracking for regional airport subcontract packages beyond Balfour Beatty’s own projects.
• Resolution of the Texas highway project’s design and rework issues, expected to reach closeout soon per CFO Myles Westcott, may free up capacity for Balfour Beatty to bid additional Texas civil work, worth watching for subs in that region.