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The building contractor Balfour Beatty, based in London, has not experienced any disorders in the change of regime in Washington, but it listens to a eye on tariffs from the USA, CEO Leo Quinn told the company to the company towards the company towards the company, during the company towards the company 2024 earnings call for the year as a whole on March 12th.
“The only area we focus on are actually the tariffs,” said Quinn when calling. “You know that if someone stole by 50% from Canada, we have to be careful because we have a big deficit, and everything goes into the subcontractor base.”
The threatening threat from tariffs – Ceiling costs on goods from Canada, Mexico, China and the European Union and other increases of certain materials such as steel and aluminum – have brought the contractors into a difficult position. Builders are now adapting contracts To protect against sudden costs and storage materials to be ahead of the prices.
Quinn, who is Resignation in September as CEOIn response to the question of a financial analysis, said that Balfour Beatty would probably act as a “channel” in the brewing war and would initially pass on the costs to subcontractors and then to customers.
“Now our risk is not sitting with us, it is located with the sub -company base and for reasons of changing changes Law or certain conditions flow back to the customer, ”said Quinn.
However, problems could arise if a subcontractor becomes bankrupt, whereupon liability could light up the chain. Quinn said that the company managed the situation carefully and ensured that subcontractors are bound and secured to reduce their own risk.
Philip Harrison, the company's CFO, added that bonds or insurance companies would be the company's fallback plan if a subcontractor should go bankrupt.
“Our risk is always a schedule, not the subcontractor who takes the bust,” said Harrison.
The numbers
The contractor reported A 2024 input tax of £ 214 million (277 million US dollars), 12% back from 2023s £ 244 millionAccording to a press release of March 12, in which the company's financial results are described.
Harrison referred to a small number of delayed US civil jobs that continued to be profitable of this unit. The company's sales from the company's entire US construction business shrank 2% to £ 3.6 billion in 2024.
“When we go through these delayed civil projects, we expect US Construction Pfo to contribute to this Improvement in 2025, ”said Harrison and referred to the company's profit from business.
Despite the winnings of the profit, Balfour Beatty reported £ 18.4 billion in a deficit, which is referred to as the “order book”, compared to the year by around £ 16.5 billion from 2023. Sales rose to £ 10 billion and rose by around 4% compared to the £ 9.6 billion of 2023.
However, due to the effects of future tariffs, the growth of pending work in the USA could be a double -edged sword, as Quinn stated.
In Great Britain, the company's performance in the Power infrastructure sector repeated the prediction that Quinn made during Balfour Beatty's Half -annual entry in August in August. The company claims that it keeps market -leading skills in space, and this gap for electricity transmission and sales work has more than doubled, according to the press release in 2024. The deficit of the overall support services, which includes electricity transmission and sales projects, rose by 14% to £ 3.2 billion.
Balfour Beatty said that in the United States, its organic growth strategy and a more stable economy after the press release have led to increased demand in most geographies and customer transactions in most geographies and customer sectors.
“We are optimistic around 2024/25,” said Quinn. “We know that we have a lot of volume, which enables us to be selective in what we do.”