Civil Engineering UK increased EBITDA by nearly half to £59m despite revenue easing 1% to £780m, lifting operating margin to 7.6%, up from 5.1% in the same period last year.

BAM said the performance was supported by claim settlements and a high quality order book focused on rail and energy transition projects.

The building business, Construction UK, also continued to improve after a rocky two years in the fall-out from its Manchester Co-op Live project setback, with EBITDA more than doubling to £18m from £7m.

Revenue at the building arm rose 6% to £473m, restoring its operating margin to 3.8% from 1.5% previously.

BAM said the improvement reflected better operational performance across the construction portfolio.

Across the wider UK and Ireland division, revenue rose 4% to €1.73bn (£1.48bn) while adjusted EBITDA jumped 48% to €98m (£84m).

The division’s order book slipped back to €6.1bn from €6.9bn at the end of 2025, although BAM expects several major civil engineering awards during the second half.

Recent UK wins include the Royal School in Wolverhampton, the second phase of the Our Cultural Heart regeneration scheme in Huddersfield and the River Tees Academy in Grangetown.

BAM said demand remained strong across energy, transport, water, healthcare, education and defence, with more than 70% of civil engineering opportunities linked to existing strategic clients.