Balfour Beatty reaches £575m deal in Texas to rebuild interstate highway

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

Balfour Beatty will reconstruct a 2.5-mile section of the route on the south side of downtown Austin, providing eight general-purpose lanes, a major new intersection, and multiple improved 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 that 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 improve capacity” for 200,000 drivers.

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

Balfour Beatty Stock They rose 0.9 per cent to 440.2 pence in early trading, having added more than 40 per cent over the past year.

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

Higher interest rates and material costs have weighed on the group, which is trying to rebuild its shrinking margins.

In the UK, the group hopes that falling interest rates and the new Labor Government’s house building drive will lead to a new boom in demand.

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

“Our selective tendering approach ensures we leverage our strengths to work with long-term clients in geographies where we have proven experience, strong teams and trusted supply chain partners.”