BAM Construction UK returns to profit | Construction Enquirer News
Summary
BAM Construction UK reports a return to profitability with a 7% increase in turnover, driven by strong performance in its civils and building divisions, generating a combined trading profit of £108m.
Why It Matters
This article highlights BAM Construction UK's financial recovery, reflecting broader trends in the UK construction market. The insights into revenue growth and profitability are crucial for stakeholders, including investors and industry analysts, as they indicate potential future stability and growth in construction activities.
Key Takeaways
- BAM Construction UK achieved a 7% increase in turnover, reaching £979m.
- The civils division generated a profit of £81m on £1.55bn revenue.
- Combined revenue for building and civils arms surpassed £2.5bn, with a trading profit of £108m.
- The order book remains strong at £6bn, indicating future growth potential.
- CEO Ruud Joosten anticipates a strengthening construction market supported by government initiatives.
In a turnaround year for the building business turnover at the construction division edged up 7% to £979m, driving the recovery in adjusted EBITDA after the prior year’s red ink, stemming mainly from the Co-op Live job in Manchester. The UK civils arm again proved the engine room. BAM Nuttall generated £81m profit on £1.55bn revenue, delivering a 5.2% operating margin. Together the building and civils arms broke through the £2.5bn revenue barrier, delivering a combined trading profit of £108m. BAM UK trading Division Turnover 2025 Turnover 2024 EBITDA* 2025 EBITDA* 2024 Construction UK £979m £917m £27m -£24m Civil engineering UK £1,552m £1,432m £81m £90m *Adjusted Civil engineering enjoyed strong performances across rail, energy transition and infrastructure. Recent wins included two substations for SSE Transmission. Bam’s UK building business secured Framwellgate High School, New Dargavel Primary School and the North Devon District Hospital Residence. Across the wider combined United Kingdom and Ireland division, revenue climbed 10% to £3bn, while adjusted EBITDA jumped to £140m from £100m, lifting margin to 4.7%. The order book remained strong at £6bn. The reported 3.7% dip against year-end 2024 was driven by the negative impact of sterling exchange movements, worth €337m at group level. Ruud Joosten, CEO of Royal BAM Group, said he believed the construction market in the United Kingdom would now strengthen, supported by the UK Government’s continued focus on energy secu...
