Balfour Beatty strikes £575m Texas deal to rebuild interstate freeway

London-listed infrastructure group Balfour Beatty has secured a £575million deal with the Texas Department of Transportation to rebuild part of the Interstate 35 through Austin.

Balfour Beatty will reconstruct a 4km section of the route on the south side of downtown Austin, providing eight general purpose lanes, a major new intersection and multiple upgraded access roads upon completion.

The FTSE 250 firm said a new bridge will also be built across the 416-acre Lady Bird Lake on the Colorado River, replacing the existing bridge which was built in 1956.

Balfour Beatty said the project, which begins early next year with an expected completion date of 2033, will ‘significantly improve connectivity and enhance capacity’ for 200,000 drivers.

At peak construction, Balfour Beatty will directly employ over 150 people.

Balfour Beatty shares were up 0.9 per cent to 440.2p in early trading, having added more than 40 per cent over the last year. 

Balfour Beatty’s US business suffered in the first half, but the group still expects the unit to be a key driver of earnings in the years ahead.

Higher interest rates and materials costs have weighed on the group, which is attempting to rebuild thinned-out margins.

In the UK, the group is hoping falling interest rates and the new Labour Government’s housebuilding drive will lead to a fresh demand boom.

Boss Leo Quinn said: ‘This latest contract award demonstrates our leading civil engineering capabilities and is testament to our 30-year history of delivering projects for the Texas Department of Transportation.

‘Our selective bidding approach ensures that we leverage our strengths to work with long-term customers in the geographies in which we have proven expertise, strong teams and trusted supply chain partners.’