Balfour Beatty is seeing stronger momentum in its U.S. construction business, with aviation and data center projects emerging as two of its biggest growth areas.
The London-based contractor reported a return to profitability in its U.S. construction operations during the first half of 2026. The improvement comes after the business faced challenges on several projects in recent years.
Balfour Beatty’s U.S. construction operation recorded £22 million ($29.7 million) in operating profit during the first half of 2026, compared with an £11 million loss during the same period last year.
Revenue also increased 19% year over year.
U.S. Construction Returns to Profit
Balfour Beatty CEO Philip Hoare said the company has benefited from focusing on its established markets and long-term customer relationships.
The company is also working to expand relationships with existing customers across different U.S. markets. One example is Wells Fargo, which has worked with Balfour Beatty for about 20 years.
The relationship has expanded into what Hoare described as a national framework, allowing Balfour Beatty to deliver projects for the financial institution across multiple regions.
The contractor is also moving closer to completing a troubled Texas highway project that experienced design problems and required rework. CFO Myles Westcott said the project is now expected to reach closeout soon.
Data Centers Continue to Drive Demand
Data centers remain a major focus for Balfour Beatty as demand for digital infrastructure continues to grow across the U.S.
The company secured approximately $350 million in data center projects during the first half of 2026. It also reported another $1 billion in awarded work that had not yet been formally contracted.
The strong demand for data center construction is helping offset weakness in other parts of the U.S. construction market.
Industry data also shows the difference between contractors with data center projects and those without them. Contractors working in the sector reported significantly more backlog than companies without data center work.
Balfour Beatty has been increasing its focus on the sector since identifying data centers as a growth opportunity in its 2025 financial outlook.
Aviation Becomes Another Growth Market
Balfour Beatty is also looking beyond data centers, with aviation infrastructure becoming another important part of its U.S. strategy.
The company estimates that the U.S. aviation construction market could generate approximately $140 billion in construction opportunities through 2029.
Balfour Beatty already has experience working at seven U.S. airports. During the first half of 2026, it added another major project after securing a $361 million contract at Raleigh-Durham International Airport.
The contractor plans to continue building its aviation business by using its existing experience and relationships in the sector.
Federal investment is also creating additional opportunities. The Federal Aviation Administration recently announced hundreds of millions of dollars in airport infrastructure grants, supporting projects across the country.
Revenue and Backlog Increase
Balfour Beatty reported approximately £5.6 billion ($7.6 billion) in revenue for the first half of 2026. That was an 8% increase from the £5.2 billion reported during the first half of 2025.
The company’s order book also grew substantially. Backlog reached £22.9 billion, up 17.4% from £19.5 billion a year earlier.
Overall pre-tax profit was slightly lower, however, falling to approximately £129 million from £132 million in the first half of 2025.
Despite the decline in pre-tax profit, Balfour Beatty raised its full-year outlook for average net cash. The company increased its projection by £200 million to a range of £1.5 billion to £1.7 billion.
The results point to stronger momentum for Balfour Beatty’s U.S. operations, particularly in markets tied to long-term infrastructure investment. With data centers and aviation projects adding to its backlog, the company expects those sectors to remain important sources of growth.
