Balfour Beatty is looking to secure more U.S. data center construction projects after reporting strong financial results and a record backlog, according to executives during the company’s latest earnings call.
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The London-based contractor highlighted the rapidly growing demand for digital infrastructure in the United States as a major opportunity for future growth.
“I think this is a really significant opportunity for Balfour Beatty moving into the future,” said Philip Hoare, speaking on his first earnings call since taking the chief executive role.
Hoare noted that the firm has more than two decades of experience delivering the shells and cores of data center facilities, positioning the company well to capture additional projects in the sector.
The company already maintains a strong presence in key data center markets across the United States, particularly in the Pacific Northwest.
“The opportunity to expand from the strong footprint that we have in Washington State and in Oregon, we’ve recently won a new project in Virginia, and there are opportunities emerging across Texas, Georgia, Pennsylvania, all areas where we have real strength as a business,” Hoare said. “This is an example of where we can take those customer relationships, those deep relationships that we’ve built over many years and move that around the U.S., to drive growth.”
Demand for data center construction has surged as cloud computing, artificial intelligence and digital services continue to expand rapidly across the economy.
According to Associated Builders and Contractors, total construction spending in the United States rose slightly in January to a seasonally adjusted annual rate of $1.25 trillion, with data center construction accounting for more than 75% of the monthly increase.
Balfour Beatty also reported strong financial results for the past year.
The contractor generated approximately £10.8 billion ($14.5 billion) in revenue for 2025, representing a 7.5% increase compared with 2024, when the company recorded roughly £10 billion in revenue.
Profit also climbed significantly. The company posted £323 million in pre-tax profit, marking an increase of about 51% compared with £214 million the previous year.
Executives said the gains were driven largely by strong performance in U.K. power transmission projects and continued growth within the firm’s U.S. Buildings division.
Among its major U.S. projects are the expansion of the Broward County Convention Center and hotel development, as well as infrastructure work at The Wharf.
Despite the positive financial results, some operational challenges continue to affect parts of the company’s business.
Phil Harrison said schedule delays and cost overruns on a highway project in Texas have weighed on the firm’s performance in its infrastructure segment. The project is expected to be completed later this year.
Harrison, who plans to step down from his role later in 2026, said the company still expects growth in its U.S. Buildings segment in the coming year.
The company has also faced ongoing legal costs connected to past military housing issues involving its subsidiary Balfour Beatty Communities.
The subsidiary pleaded guilty in 2022 to defrauding the U.S. military in connection with maintenance reporting for privatized military housing.
As part of the settlement, the U.S. Department of Justice required the company to operate under an independent compliance monitor to ensure improved oversight.
Harrison told investors that the monitoring period is expected to continue until June 6, after which the company anticipates improved financial performance.
“Our financial business position is solid, and the strategic investments made in previous years have set the stage for future growth,” Harrison said. “The momentum in earnings is expected to carry on beyond 2026, giving us confidence in continued progress over the medium term.”
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Balfour Beatty also reported a record order book of £22.7 billion for 2025, representing a 23.3% increase compared with £18.4 billion in 2024.
“It’s not just the size and scale of that order book, it’s the great quality work that we see within it and the resilience that that brings to our business,” Hoare said.
The growing backlog reflects broader demand for infrastructure and digital facilities across the construction industry.
Other major contractors such as Turner Construction, Granite Construction and AECOM have also reported strong pipelines in recent earnings reports.
Industry analysts say the continued growth of data centers, energy infrastructure and advanced manufacturing facilities is likely to remain a major driver of construction activity in the coming years, particularly across North America and Europe.
Originally reported by Matthew Thibault, Reporter in Construction Dive.
