Investors will be pleased with Balfour Beatty’s results. They will not be pleased that the person who drove the strong performance will soon step down.
Despite a tricky economic backdrop, the company reported strong revenue growth and a growing order book during the 2024 full-year period. The strong performance resulted in a 9% increase in the dividend.
“Balfour Beatty’s results underline why CEO Leo Quinn will be such a hard act to follow,” said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
“He has masterminded the company’s turnaround from a struggling firm to an industry leader focused on high margin contracts. Investors have clearly been concerned about whether the firm, under new CEO Philip Hoare can maintain momentum.”
This concern may be why Balfour Beatty shares dropped on Wednesday. Results were strong, and the dividend combined with share buybacks are reason enough to like the stock.
“Full year revenue came in at £10 billion, beating broker forecasts of £9.4 billion, and it’s hailed a high-quality order book providing not just robust short-term opportunities but significant medium to long-term potential,” Streeter said.
“Investors are being rewarded by a 9% increase in the full year dividend and a £125 million share buyback programme. The company has also made it clear that Philip Hoare won’t be flying solo just yet, with Quinn set to stay in a strategic advisory role to help him bed in, which will provide some reassurance.”