Johnny Kober's questions to Balfour Beatty plc/ADR (BAFBF) leadership • H1 2023
Question
Johnny Kober from Numis asked about the scalability and lead times for the Support Services business, the impact of U.K. highways delays on maintenance contracts, and how the U.S. construction contracting model has performed amid post-COVID inflation.
Answer
CEO Leo Quinn detailed the multi-year process for scaling the Power business, from bidding to construction. He confirmed strong demand for road maintenance and noted that in U.S. construction, inflation risk is typically passed down to subcontractors via fixed-price agreements. CFO Phil Harrison added that while the subcontractor market is tighter, they are monitoring it closely.