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London builder Balfour Beatty has not experienced any regime change in Washington, but he is watching the rates from the United States, said CEO Leo Quinn to listeners during the company during the company 2024 full year earnings call On March 12.
“The only area we focus on is actually the rates,” Quinn told the call. “You know, when someone puts the steel 50% from Canada, we have to be careful because we have a great delay and everything goes to the base of the subcontract.”
It threat of rates – Manta costs on Canada, Mexico, China and the European Union and increase even more in certain materials, such as steel and aluminum, have put contractors in a difficult position. Builders are adjusting contracts To protect you from sudden cost jumps and supply materials to advance prices.
Quinn, who is Leaving the post as CEO in SeptemberHe said in response to the issue of a financial analyst that Balfour Beatty would act as “conduct” in the war of beer trade, passing the costs first to subcontractors and then to customers.
“Now our risk does not sit with us, sits on the base of outsourcing and, for reasons of change of The law or certain terms and conditions, returns to the client, “said Quinn.
However, the problems could produce -if a subcontractor is bankrupt, so the responsibility could reverberate the chain. Quinn said that the firm managed the situation carefully and made sure that the subcontractors were united and secured to reduce their own risk.
Philip Harrison, the company’s CFO, added that the bonds or insurance would be the company’s fall plan, if a subcontractor failed.
“Our risk is always foreseen, not the subcontractor,” Harrison said.
The numbers
The contractor reported a 2024 Profit before the tax of 214 million pounds ($ 277 million), 12% less than 12% Since 2023, 244 million poundsAccording to a statement from March 12, which details the company’s financial results.
Harrison pointed out a small number of United States civilian jobs that continued to drag the unit’s profitability. The income of the Global Business of the North -American Construction -American Business reduced 2% by 2024 to 3.6 billion pounds.
“As we move on through these delayed civil projects, we hope that the PFO construction will It improves by 2025, “Harrison said, referring to the benefit of the operations company.
Despite the immersion in the benefits, Balfour Beatty reported £ 18.4 billion in the backlog, which refers to as a “order book”, in the year, up to about 12% compared to 16.5 billion pounds of 2023. Its segment of North -Americans led the load with a growth of 26% decline, by launch. Income increased to £ 10 billion, up to about 4% compared to £ 9.6 billion in 2023.
However, the growth of pending work in the United States could be a double -cut sword, as Quinn noted, due to the impact of future rates.
In the United Kingdom, the company’s performance in the power infrastructure sector echoed the prediction that Quinn made during Balfour Beatty’s Call for half a year in August. The company claims that it has leading market capacities in space and this decline for more energy transmission and distribution work that doubled in 2024, according to the statement. Its general support services services, which includes transmission and power distribution projects, grew by 14% to 3.2 billion pounds.
Balfour Beatty said that in the United States, its organic growth strategy and a more stable economy have resulted in growth, along with greater demand for most geographies and customer sectors, according to the statement.
“We are optimistic around 2024/25,” said Quinn. “We know we have a lot of volume, which allows us to be selective in what we do.”
